REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from the Stadium Authority for Action Regarding the Stadium Manager’s Request to Award Purchase Orders to Benjamin Litho Inc. for Guest Services Printed Materials and Johnson Controls, Inc. Fire and Security for Security Cardkeys, Tags, and Supplies
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approved Ordinance No. 2005 amending Chapter 17.30 of the City Code (Stadium Authority Procurement Policy), which rescinded the delegation to the Executive Director to enter into agreements without prior Board approval.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.
As the Stadium Manager, Forty Niners Stadium Management Company, LLC (ManCo) is responsible 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” as required by the Management Agreement between the Stadium Authority and ManCo.
The Stadium Manager is requesting approval for the following:
1. Award a purchase order to Benjamin Litho Inc. in the amount of $12,501 to print various Guest Services cards, guides, and scratchers for the Stadium Manager. The $12,501 request includes the estimate provided by the vendor ($10,898), a 5% contingency amount of $545 to cover increase in the number of pages in the booklets and guides and to accommodate any printing overages, and taxes of $1,058. These costs are classified in the Stadium Authority Fiscal Year (FY) 2022/23 Shared Stadium Manager Expenses as Non-Compensation Expenses for the Guest Services Department. Funds for these expenses are currently under Legal Contingency in the FY 2022/23 Budget.
2. Award a purchase order to Johnson Controls, Inc. Fire and Security (JCI) in the amount of $7,845 for security cardkeys, tags, and supplies. These costs are classified in the Stadium Authority FY 2022/23 Shared Stadium Manager Expenses as Non-Compensation Expenses for the Security Department. Funds for these expenses are currently under Legal Contingency in the FY 2022/23 Budget.
Together, the Stadium Manager’s requests total a not to exceed amount of $20,346 and if approved, the Stadium Authority will be responsible for half of these costs.
DISCUSSION
Staff reviewed the Recommendation for Award memo and supporting documentation (attached to corresponding report #22-840) for consistency against the Santa Clara Procurement Policy and Santa Clara City Code Chapter 2.105.280 (“Informal Bidding”).
Based on this review, staff recommends approval of the Stadium Manager’s requests to award purchase orders to Benjamin Litho Inc. and JCI. The Stadium Authority Board will require full supporting documentation before respectively releasing public funds upon procurement of the printing services and security cardkeys, tags, and supplies. 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 and in compliance with State law and City Code.
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
The Stadium Authority FY 2022/23 Budget contains a Legal Contingency for Shared Expenses such as Security, Stadium Operations, Engineering, Guest Services, and Groundskeeping. As part of its March 15, 2022 approval of the Stadium Authority FY 2022/23 Operating, Debt Service, and Capital Budget, the Stadium Authority 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 documentation for costs. Shared Expenses are split between the Stadium Authority and Forty Niners SC Stadium Company LLC per the Management Agreement.
There are sufficient funds in the FY 2022/23 Stadium Authority Legal Contingency to cover the Stadium Authority’s portion of the Benjamin Litho Inc. and JCI purchase orders ($6,251 and $3,923, respectively). The Office of the Executive Director or Treasurer will approve budget amendments to reallocate funds from Legal Contingency to Shared Stadium Manager Expenses that are described in this report upon the Board’s approval of staff’s recommendations and after the review of adequate documentation for costs.
COORDINATION
This report has been coordinated with the Stadium Authority Counsel and Treasurer’s Offices.
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 award a purchase order to Benjamin Litho Inc. in the amount of $12,501 for Guest Services printed materials; and authorize the Executive Director to approve and process the reimbursement of such costs upon receiving final invoices and supporting documentation from the Stadium Manager; and
2. Approve the Stadium Manager’s request to award a purchase order to JCI in the amount of $7,845 for security cardkeys, tags, and supplies; and authorize the Executive Director to approve and process the reimbursement of such costs upon receiving final invoices and supporting documentation from the Stadium Manager.
Staff
Prepared by: Christine Jung, Assistant to the Executive Director
Approved by: Rajeev Batra, Executive Director