REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from the Stadium Authority Regarding Stadium Manager’s Request for Approval to Incur Charges for the February 7-9, 2022 Pollstar Live Conference and Award Purchase Orders to Benjamin Litho Inc for Stadium Builders Licenses Invoices and Incident Cards
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
On October 8, 2019, the Stadium Authority Board (Board) approved Ordinance No. 2005 amending Chapter 17.30 of the City Code (Stadium Authority Procurement Policy), which rescinded the delegation to the Executive Director to enter into agreements without prior Board approval. As result of Ordinance No. 2005, the Stadium Manager is also required to request Board approval before entering into agreements on behalf of the Stadium Authority. As of the effective date of the Ordinance (November 8, 2019), all Stadium Authority agreements for services, supplies, materials, and equipment require the approval of the Stadium Authority Board.
Through the Stadium Management Agreement, the Forty Niners Stadium Management Company (Stadium Manager) manages and operates Levi’s Stadium on behalf of the Stadium Authority for Non-National Football League (Non-NFL) Events, like concerts, sporting events, and non-ticketed events. On behalf of the Stadium Authority, the Stadium Manager is responsible for the marketing and booking of Non-NFL events and for maintaining “the Stadium in the Required Condition and operate the Stadium as a quality NFL and multi-purpose public sports, public assembly, exhibit and entertainment facility”.
The Stadium Manager is requesting approval for the following:
1. Authorization to incur charges up to $6,000 to cover registration fees ($1,700), travel expenses ($3,300) and client entertainment ($1,000) for two Stadium Manager employees to attend the February 7-9, 2022 Pollstar Live Conference in Los Angeles, CA;
2. Authorization to award a purchase order to Benjamin Litho Inc in the amount of $8,199 plus applicable sales tax to print and mail out 2022 Stadium Builder License (SBL) invoices; and
3. Authorization to award a purchase order to Benjamin Litho Inc in the amount of $1,299 to print incident cards for the Stadium Manager.
Together, the Stadium Manager’s requests total a not to exceed amount of $15,498 plus applicable taxes and if approved, will be respectively charged to the Stadium Authority FY 2021/22 Budget, Non-NFL Events budget (Public Events), Attending Events / Conferences / Client/Prospect Meetings; SBL Sales and Service; and Stadium Operations line items.
DISCUSSION
Staff reviewed the requests (attached to corresponding report #21-1738) and asked the Stadium Manager to confirm that all travel and expense costs related to the Pollstar Live Conference request would follow their Business Expense Reimbursement Policy, which sets forth the travel and expense costs that are reimbursable to Stadium Manager employees. The Stadium Manager has confirmed all travel and expense costs related to the Pollstar Live Conference will follow the Business Expense Reimbursement Policy.
As part of a previous request to incur charges for marketing-related conferences and meetings, the Stadium Manager explained that alcohol consumption is a part of the business marketing that they utilize to pursue Non-NFL events. While the use of public funds for alcohol consumption is generally not permitted by public agencies, the legislative body of the public agency can authorize this business expense. Therefore, there is an appropriate Board recommendation transmitted in this report to authorize the use of public funds to cover alcohol consumption as detailed in the documents submitted by the Stadium Manager. Further, the Stadium Authority should be covered for the risk or liability arising from auto accidents or other such losses occurring at any of these marketing events (including liability arising from consumption of alcohol) pursuant to the Indemnification Clause in Article 12 of the Management Agreement.
As the Stadium Manager’s request pertains to marketing activities, staff also reviewed it against the Draft 2021 Marketing Plan. While the Draft 2021 Marketing Plan was not mutually agreed upon, it is the only document that the Stadium Authority has that outlines the Stadium Manager’s planned marketing efforts. The requested marketing activity aligns to one of the key initiatives (“Utilize Marketing Budget to Regenerate Active Event Pipeline”) the Stadium Manager identified in their Draft 2021 Marketing Plan. The Stadium Manager planned to prepare for the return to in-person events to build out new packages, create a strategic communications plan and reintroduce Levi’s Stadium to local and national clients through a marketing campaign. It had planned to achieve this by utilizing a marketing budget to communicate its message through digital advertising, client/prospecting events, sales events/trade shows, and swag/gifts. The marketing activity which the Stadium Manager is requesting to incur charges for falls under the sales events/trade shows category.
Staff did not have any questions regarding the Stadium Manager’s requests to award purchase orders to Benjamin Litho Inc for printing and mailing services related to the 2022 SBL invoices and incident cards.
Based on this review, staff recommends approval of the Stadium Manager’s request to incur charges for registration fees, travel expenses, and client entertainment for two Stadium Manager employees to attend the described conference. Staff also recommends approval of the Stadium Manager’s requests to award purchase orders to Benjamin Litho Inc for printing and mailing services for the 2022 SBL invoices and printing services for incident cards.
The Stadium Authority Board will require full supporting documentation before respectively releasing public funds upon procurement of the printing and mailing services, and Pollstar Live Conference registration fees, travel expenses, and client entertainment. This requirement is consistent with the Stadium Authority Board’s March 27, 2019 direction to staff to stop payment of any additional invoices for services unless there is substantial documentation of services rendered which must also be in compliance with State law and City Code.
ENVIRONMENTAL REVIEW
The actions being considered do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment or 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 Stadium Authority FY 2021/22 Non-NFL Events budget contains $15,000 for Non-NFL Events budget (Public Events), Attending Events/Conferences/Client/Prospect Meetings. There are sufficient funds to cover the Stadium Manager’s request to incur charges up to $6,000 for the Pollstar Live Conference.
The Stadium Authority FY 2021/22 Budget contains $3.4 million for SBL Sales and Service. There are sufficient funds to cover the Stadium Manager’s request to incur up to $8,199 plus applicable taxes for printing and mailing services for the 2022 SBL invoices.
Additionally, the Stadium Authority FY 2021/22 Budget contains a Legal Contingency for Shared Expenses such as Security, Stadium Operations, Engineering, Guest Services, and Grounds. As part of its March 23, 2021 approval of the FY 2021/22 Budget, the Stadium Authority Board delegated budget amendment authority to the Executive Director for Shared Expenses from the Legal Contingency. There are sufficient funds in the FY 2021/22 Stadium Authority Legal Contingency, Stadium Operations line item to cover the amount of $1,299 for the requested incident card printing services. The Executive Director will approve a budget amendment to reallocate $1,299 from the Legal Contingency to the Shared Expenses, Stadium Operations line item upon the Board’s approval of staff’s recommendations.
COORDINATION
This report has been coordinated with the Treasurer’s Office and the Chief Assistant City Attorney.
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.
RECOMMENDATION
Recommendation
1. Approve the Stadium Manager’s request to incur charges up to $6,000 in registration fees ($1,700), travel expenses ($3,300) and client entertainment ($1,000), including the purchase of alcohol with public funds, for two Stadium Manager employees to attend the February 7-9, 2022 Pollstar Live Conference in Los Angeles, CA;
2. Approve the Stadium Manager’s request to award a purchase order to Benjamin Litho Inc in the amount of $8,199 plus applicable sales tax for printing and mailing 2022 SBL invoices; and
3. Approve the Stadium Manager’s request to award a purchase order to Benjamin Litho Inc in the amount of $1,299 for printing incident cards for the Stadium Manager.
Staff
Reviewed by: Christine Jung, Assistant to the Executive Director
Approved by: Deanna J. Santana, Executive Director