REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Stadium Authority Bills and Claims for the Month of August 2022
Report
BOARD PILLARS
Enhance Community Engagement and Transparency
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
Disbursements made by the Stadium Authority are based on invoices submitted for payment. Prior to payment, staff reviews all disbursement documents to ensure that they are in compliance with the goods or services provided.
The Bills and Claims listing represents the cash disbursements required of normal and usual operations during the period. Budget control is set by the Stadium Authority Board through the budget adoption process.
DISCUSSION
On March 27, 2019, the Stadium Authority Board directed staff to stop payment of any Stadium Authority invoices for services unless there is substantial documentation of services rendered, which must also be in compliance with State law and City Code. Since March 27, 2019, staff received direction to pay Stadium Authority invoices related to SBL sales and services, insurance, and utilities.
At the March 15, 2022 Stadium Authority Board meeting, the Board delegated authority to the Office of the Executive Director and Treasurer to approve budget amendments that move funds from the Legal Contingency to Shared Expenses after the review of adequate documentations for costs. Subsequent to that direction, Stadium Authority staff met with Stadium Manager on April 12, 2022 to review documentation for shared expenses. Following meetings with the Stadium Manager, payments related to compensation that were reviewed and approved are included in the August monthly payment.
Effective August 31, 2022, the Stadium Authority and Stadium Manager agreed to the timely payment of Shared Stadium Expenses and other budgeted expenses in accordance with the Annual Stadium Authority Budget-except for buffet expenses invoiced pursuant to Section 4.6.1 of the Stadium Lease. The Stadium Authority maintains the right to confirm and dispute submitted charges from the 2021-22 fiscal year and onward during a fiscal-year-end reconciliation/true-up, because of any concerns regarding improper allocation, calculation, lack of support, or failure to comply with the Parties’ contracts or California law, among other reasons. The Stadium Authority may raise such questions with respect to any charge at any time before a fiscal year-end reconciliation/true-up and the Stadium Manager must assess and respond to such questions in good faith.
Expenses paid in August 2022 include:
• Payments totaling $203,546.16 to the City of Santa Clara for the following:
o $175,910.18 for reimbursement of General and Administrative (G&A) City payroll costs (e.g.: Executive Director’s Office (City Manager’s Office), Counsel’s Office (City Attorney’s Office), and Treasurer’s Office (Finance Department))
o $4,274.53 for Special Liability Claims for Q1 ending 6/30/2022
o $23,361.45 for the Senior and Youth Fees collected ($0.35 per ticket) for one National Football League (NFL) game.
• Payment totaling $712.50 to Contractor Compliance and Monitoring, Inc. for July 2022 Labor Compliance Services
• Payment totaling $751,797.37 to Forty Niners Stadium Management Co, LLC for the following:
o $32,497.00 for September 2022 Stadium Manager Expenses - Compensation for Security
o $208,053.00 for September 2022 Stadium Manager Expenses - Compensation for Stadium Ops
o $143,482.00 for September 2022 Stadium Manager Expenses - Compensation for Engineering
o $31,302.00 for September 2022 Stadium Manager Expenses - Compensation for Guest Services
o $7,662.00 for September 2022 Stadium Manager Expenses - Compensation for Grounds
o $174,077.00 for September 2022 Stadium Manager Expenses - SBL Sales & Service
o $81,710.00 for September 2022 Stadium Manager Expenses - Insurance
o $12,794.37 for September 2022 Stadium Manager Expenses - Use of StadCo Tenant Improvements
o $51,886.00 for September 2022 Stadium Manager Expenses - Other G&A
o $8,334.00 for September 2022 Stadium Manager Expenses - Lender Fees
• Payment to Hanson Bridgett LLP for July 2022 Legal Services
• Payment to Jeffer Mangels Butler & Mitchell, LLP for June 2022 Legal Services
• Payments totaling $18,684.16 to Wilson Ihrig for the following:
o $12,284.16 for April - May 2022 Noise Monitoring Services
o $6,400.00 for June - July 2022 Noise Monitoring Services
The Supreme Court of California in Los Angeles County Board of Supervisors v. Superior Court, (2016) 2 Cal.5th 282, held that invoices specifying the amounts billed by a law firm to a client fall within the scope of attorney-client privilege while the matters are active. In accordance with the Supreme Court’s ruling, information that would compromise legal strategy, and would otherwise be privileged, is redacted consistent with the Public Records Act.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
The fiscal impact to the Stadium Authority is itemized above.
COORDINATION
This report has been coordinated with the Stadium Authority Counsel’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Approve the list of Stadium Authority Bills and Claims for August 2022.
Staff
Reviewed by: Kenn Lee, Treasurer
Approved by: Rajeev Batra, Executive Director
ATTACHMENTS
1. August 2022 SCSA Bills and Claims