REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Authorization to Seek Reimbursement of City Public Safety and Traffic Control Purchases from the Forty Niners Stadium Management Company and Forty Niners SC Stadium Company [Board Pillar: Ensure Compliance with Measure J and Manage Levi’s Stadium]
Report
BACKGROUND
Measure J was passed by the voters of the City of Santa Clara on June 8, 2010 and authorized the City to move forward with the development of a stadium suitable for professional football and other events. Measure J provides that the City and its Redevelopment Agency will not be liable for the obligations of the Stadium Authority. Additionally, prior to the passage of Measure J, the City Council approved a Stadium Term Sheet between the City, Redevelopment Agency of the City of Santa Clara, and Forty Niners Stadium, LLC that memorialized the terms that were negotiated between the parties. The Stadium Term Sheet includes an Attachment C Principal Terms of Public Safety Agreement that requires public safety and traffic control costs incurred by the City be reimbursed by the Stadium Authority. Attachment C is also included in the most current Public Safety Plan used by the City’s Police and Fire Departments, Stadium Manager, and Forty Niners Stadium Management Company (StadCo). The applicable Attachment C section reads as follows:
3. Reimbursement of City Costs. The Stadium Authority will reimburse the City for the actual and reasonable costs of police, traffic control, fire, emergency services and similar services attributable to Stadium events incurred by the City in implementing the approved Public Safety Plan, including the fair share of reasonable capital expenditures required for public safety for the Stadium as described below ("Public Safety Costs"). The Public Safety Costs to be reimbursed by the Stadium Authority each year will be agreed upon by the Stadium Authority, the City and 49ers Stadium Company or will otherwise be resolved by Expedited ADR, as described in Section 8 below. Capital expenditures required for public safety for the first year of operation of the Stadium, including the cost of equipment that is reasonably necessary for dedicated use at the Stadium only, will be included in the Development Budget. During operation of the Stadium, Public Safety Costs will be allocated as follows: (i) Public Safety Costs in connection with NFL Events will be included in Reimbursable Expenses subject to Paragraph 4 below, (ii) Public Safety Costs in connection with Non-NFL Events will also be included in Reimbursable Expenses, and, for purposes of calculating Net Income from Non-NFL Events, will also be included in Non-NFL Event Expenses, and (iii) Public Safety Costs in connection with Civic Events will be included in Civic Event Expenses.
Additionally, Section 8.1 in the Lease Agreement between the City of Santa Clara and Santa Clara Stadium Authority (Lessee) states, “As shall be more particularly provided in the Public Safety Plan and in the Stadium Lease, and as additional consideration for City to enter into this Lease, Lessee shall reimburse City, or require StadCo to reimburse City, for each Lease Year, the amount by which (a) Public Safety Costs for such Lease Year, exceed (b) fees (to the extent attributable to NFL Games) received by City for such Lease Year from the holders of Off-Site Parking Permits.”
As such, all public safety costs including, but not limited to, personnel expenses, traffic control, neighborhood protection, services and supplies, and equipment costs adopted annually as part of the City of Santa Clara’s operating budget and provided by the City to the Stadium Manager, StadCo, or the Stadium Authority are fully reimbursed. The purpose of this report is to seek authorization of and seek reimbursement for qualifying City incurred expenditures.
DISCUSSION
The following categories of supplies, equipment, and services are procured by the City to provide public safety and traffic control services at Levi’s Stadium which are then reimbursed by the Stadium Manager or StadCo for the portion related to Non-NFL events and NFL events, respectively. The purchases are made pursuant to applicable sections under Chapter 2.105 (“Finance Department”) of Santa Clara City Code.
• Vehicle supplies, equipment and services such as, but not limited to, gas, mule or golf cart parts and equipment, repairs, etc.
• Office and operational supplies, equipment, and services such as, but not limited to, event day stationery and supplies, and postage.
• Safety and medical supplies and equipment such as, but not limited to, Fire, Rescue, EMS and HAZMAT equipment and supplies, annual safety technology licenses, and safety equipment storage and maintenance costs.
• Costs associated with recruiting and hiring (e.g. background investigator, psychological exam, polygraph, etc.), as well as uniforms and training to properly equip new personnel for their assignment.
• Food, water and related items as needed for personnel at events and unexpected needs due to assignment extensions.
• Traffic signage and traffic control supplies, equipment and services such as, but not limited to, signage fabrication and mounting supplies, traffic wands and replacement batteries, safety vests and stop/slow LED paddles.
• Travel and training such as, but not limited to, K9 training, active shooter training, HazMat training, and other specialized rescue training.
Attachment 1 details purchases that fall under these categories that were made by the City between November 8, 2019 and June 4, 2020. These purchases total $25,429 and require Board authorization to seek reimbursement by either the Stadium Manager or StadCo.
For full transparency and disclosure, there are additional categories of supplies, materials, equipment, and services that are made and obtained by City departments and reimbursed by the Stadium Manager or StadCo. However, because these procurements either have existing City agreements, Purchase Orders in place or Council approval for cooperative agreements they do not require Board authorization but have been included for transparency. They are as follows:
• Agreements, memorandum of understanding, and/or mutual aid requests with various public agencies for law enforcement services.
• Informational Technology support staff assistance services through an executed agreement with Unisys Corporation that was approved by City Council.
• Printer equipment and services through an executed agreement with RICOH that was approved by City Council.
• Cell phones and cellular services through cooperative agreements with T-Mobile and Verizon Wireless. On December 8, 2015, City Council approved the usage of any of four named cellular providers (AT&T, Verizon Wireless, Sprint, and T-Mobile) who had cooperative agreements under NASPO/WSCA.
• Standardized IT hardware and desktop equipment through a NASPO/WSCA cooperative agreement for Dell.
• Geographic Information Systems-based software through an executed agreement with Arini Geographics, LLC that was approved by City Council.
• Radio services through a Silicon Valley Regional Interoperability Authority (SVRIA) agreement with Motorola Solutions that was result of a competitive Request for Proposal process for the Silicon Valley Regional Communications System in 2012. SVRIA was formed in 2010 to enhance interoperability in Santa Clara County and Santa Clara's participation in the SVRIA joint powers agreement was approved by Council in February 2010.
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)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
Attachment 1 summarizes the total amount spent by the City between November 8, 2019 and June 4, 2020 under the categories explained above that is reimbursable by the Stadium Manager and StadCo. These expenses are included in the adopted City of Santa Clara FY 2019/20 budget, as part of their respective departments’ budgets, and directly reimbursed to the City by the Stadium Manager or StadCo.
COORDINATION
This report has been coordinated with the Treasurer, Stadium Authority Counsel, and the City’s IT, Finance, Fire, Police and Public Works Departments.
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>.
ALTERNATIVES
1. Authorize the City Manager to purchase and/or award Purchase Orders for City public safety and traffic control supplies, equipment and services that are reimbursable by the Stadium Manager or StadCo, pursuant to applicable sections under Chapter 2.105 (“Finance Department”) of the Santa Clara City Code.
2. Retroactively approve the expenses incurred by the City for public safety and traffic control supplies, equipment and services that are reimbursable by the Stadium Manager or StadCo.
3. Do not authorize the City Manager to purchase and/or award Purchase Orders for City public safety and traffic control supplies, equipment and services that are reimbursable by the Stadium Manager or StadCo, pursuant to applicable sections under Chapter 2.105 (“Finance Department”) of the Santa Clara City Code.
4. Do not retroactively approve the expenses incurred by the City for public safety and traffic control supplies, equipment and services that are reimbursable by the Stadium Manager or StadCo.
RECOMMENDATION
Recommendation
Alternatives 1 and 2:
1. Authorize the City Manager to purchase and/or award Purchase Orders for City public safety and traffic control supplies, equipment and services that are reimbursable by the Stadium Manager or StadCo, pursuant to applicable sections under Chapter 2.105 (“Finance Department”) of the Santa Clara City Code; and
2. Retroactively approve the expenses incurred by the City for public safety and traffic control supplies, equipment and services that are reimbursable by the Stadium Manager or StadCo.
Staff
Prepared by: Christine Jung, Assistant to the City Manager (Executive Director)
Approved by: Deanna J. Santana, Executive Director
ATTACHMENTS
1. Public Safety and Traffic Control Expenses Incurred by City of Santa Clara between November 8, 2019 and June 4, 2020 to be reimbursed by Stadium Manager or StadCo