REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Request to Carryover FY 2021/22 Command Post Window Treatment CapEx Project, Non-Slip Floor Matting CapEx Project, Lift Station CapEx Project, Mechanical and Electrical Closet Lighting CapEx Project, Loading Dock Lighting CapEx Project, and Rust Prevention Mitigation CapEx Project, and Approve Related Budget Amendments
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
On January 31, 2022, the Forty Niners Stadium Management Company, LLC (Stadium Manager) submitted a Capital Expenditure (CapEx) Plan with 5-Year Forecast (Attachment 1) for the Stadium Authority Fiscal Year (FY) 2022/23 CapEx Budget. It identified FY 2021/22 CapEx projects that were projected to complete in FY 2021/22 and provided the projected actual expenditures below. Because these CapEx projects were projected to complete in FY 2021/22, they were not carried over to Stadium Authority FY 2022/23 CapEx Budget that was adopted by the Stadium Authority Board on March 15, 2022.
|
CapEx Project |
Projected Expenses |
|
Command Post Window Treatment CapEx Project |
$9,425 |
|
Non-Slip Floor Matting CapEx Project |
$59,351 |
|
Lift Station CapEx Project |
$206,800 |
|
Mechanical and Electrical Closet Lighting CapEx Project |
$111,958 |
|
Rust Prevention Mitigation CapEx Project |
$18,945 |
|
Loading Dock Lighting CapEx Project (referred to as Gold Lot 4 and 5 Lighting CapEx Project by Stadium Manager) |
$65,059 |
In FY 2021/22, the Stadium Authority approved the following actions related to these CapEx projects:
• Command Post Window Treatment CapEx Project: On October 19, 2021, the Stadium Authority Board approved the Stadium Manager’s request to execute an agreement with MGC DBA Mission Glass Company for window tinting services in the amount of $9,425.
• Non-Slip Floor Matting CapEx Project: On October 19, 2021, the Stadium Authority Board approved the Stadium Manager’s request to execute an agreement with R.E. Cuddie Co. for the removal and disposal of existing resilient athletic flooring from service tunnels, and the furnishing and installation of rubber resilient athletic flooring at Levi's Stadium in an amount not to exceed $53,955; authorized the Executive Director to approve the execution of change orders up to approximately 10% of the contract cost, or $5,396, for a total not to exceed amount of $59,351; and approved a budget amendment in the amount of $6,851 to fund the total agreement and 10% contingency amount exceeding the budgeted amount for the line item in the Stadium Authority FY 2021/22 CapEx Budget.
• Lift Station CapEx Project: On January 11, 2022, the Stadium Authority Board approved the Stadium Manager’s request to execute an agreement with Bartley Pump PM, LLC for the replacement of pumps, floats, and controls at sewage ejector lift stations in Quadrants A, B, C, and D on the 100 level at Levi's Stadium in an amount not to exceed $188,000 and authorized the Executive Director to approve the execution of change orders up to approximately 10% of the contract cost, or $18,800, for a total not to exceed amount of $206,800.
• Mechanical and Electrical Closet Lighting CapEx Project: On January 11, 2022, the Stadium Authority Board approved the Stadium Manager’s request to execute an agreement with Ample Electrical, Inc. for replacement of existing light fixtures in the Levi's Stadium Electrical Rooms and Telecom Rooms with new LED light fixtures in the amount of $101,780 and authorized the Executive Director to approve the execution of change orders up to approximately 10% of the contract cost, or $10,178, for a total not to exceed amount of $111,958.
• Rust Prevention Mitigation CapEx Project: On January 11, 2022, the Stadium Authority Board approved the Stadium Manager’s request to execute an agreement with R. Brothers Painting Inc. to prepare and paint the existing steel structure along the 300 level concourse of Levi's Stadium in the amount of $17,223 and authorized the Executive Director to approve the execution of change orders up to approximately 10% of the contract cost, or $1,722, for a total not to exceed amount of $18,945.
• Loading Dock Lighting CapEx Project: On January 11, 2022, the Stadium Authority Board approved a budget amendment to update the Gold Lot 4 and 5 Lighting CapEx Project title to “Loading Dock Lighting” and corresponding project description to include loading dock area as part of the scope of work and increase the budget for the Loading Dock Lighting CapEx Project to a total of $65,059; approved the Stadium Manager’s request to execute an agreement with Bear Electrical Solutions, Inc. for removal and disposal of existing wall mounted luminaire fixtures, and furnishing and installation of new wall mounted luminaires in the Levi’s Stadium loading dock area in the amount of $59,145; and authorized the Executive Director to approve the execution of change orders up to approximately 10% of the contract cost, or $5,914, for a total not to exceed amount of $65,059.
In addition to these actions, the Board authorized the Executive Director to approve and process the reimbursement of such costs upon receiving final invoices and supporting documentation from the Stadium Manager for all the above-mentioned CapEx projects, and to approve the execution of any and all documents associated with, and necessary for the award, completion, and acceptance of the projects for all but the Command Post Window Treatment CapEx Project.
DISCUSSION
On May 12 and 13, 2022, the Stadium Manager submitted the attached emails (Attachment 2) to request payment to R. Brothers Painting Inc. for the Rust Prevention Mitigation CapEx Project and confirm that the Rust Prevention Mitigation CapEx Project was not completed until April 2022.
Subsequently on May 19, 2022, the Stadium Manager submitted the attached email (Attachment 3) which identified additional FY 2021/22 CapEx projects that were in progress as of March 31, 2022 and completed in FY 2022/23:
• Command Post Window Treatment CapEx Project
• Non-Slip Floor Matting CapEx Project
• Lift Station CapEx Project
• Mechanical and Electrical Closet Lighting CapEx Project
• Loading Dock Lighting CapEx Project
These projects are not included in the Stadium Authority FY 2022/23 CapEx Budget, and budget amendments would be required to complete the Stadium Manager’s requests for reimbursement.
The Stadium Authority will require full supporting documentation including compliance with prevailing wage laws, if applicable, before releasing public funds upon completion of work. 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 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) 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.
FISCAL IMPACT
The Command Post Window Treatment CapEx Project is not part of the Stadium Authority FY 2022/23 CapEx Budget, and the Board will need to approve a $9,425 budget amendment to add the project. These funds will be offset by a decrease in the Stadium Authority Capital Expense Reserve.
The Non-Slip Floor Matting CapEx Project is not part of the Stadium Authority FY 2022/23 CapEx Budget, and the Board will need to approve a $59,351 budget amendment to add the project. These funds will be offset by a decrease in the Stadium Authority Capital Expense Reserve.
The Lift Station CapEx Project is not part of the Stadium Authority FY 2022/23 CapEx Budget, and the Board will need to approve a $206,800 budget amendment to add the project. These funds will be offset by a decrease in the Stadium Authority Capital Expense Reserve.
The Mechanical and Electrical Closet Lighting CapEx Project is not part of the Stadium Authority FY 2022/23 CapEx Budget, and the Board will need to approve a $111,958 budget amendment to add the project. These funds will be offset by a decrease in the Stadium Authority Capital Expense Reserve.
The Rust Prevention Mitigation CapEx Project is not part of the Stadium Authority FY 2022/23 CapEx Budget, and the Board will need to approve a $18,945 budget amendment to add the project. These funds will be offset by a decrease in the Stadium Authority Capital Expense Reserve.
The Loading Dock Lighting CapEx Project is not part of the Stadium Authority FY 2022/23 CapEx Budget, and the Board will need to approve a $65,059 budget amendment to add the project. These funds will be offset by a decrease in the Stadium Authority Capital Expense Reserve.
The table below summarizes the budget amendments as discussed above:
|
CapEx Project |
Adopted Budget |
Increase/ (Decrease) |
Amended Budget |
|
Command Post Window Treatment CapEx Project |
$0 |
$9,425 |
$9,425 |
|
Non-Slip Floor Matting CapEx Project |
$0 |
$59,351 |
$59,351 |
|
Lift Station CapEx Project |
$0 |
$206,800 |
$206,800 |
|
Mechanical and Electrical Closet Lighting CapEx Project |
$0 |
$111,958 |
$111,958 |
|
Rust Prevention Mitigation CapEx Project |
$0 |
$18,945 |
$18,945 |
|
Loading Dock Lighting CapEx Project |
$0 |
$65,059 |
$65,059 |
|
Capital Expense Reserve |
$3,640,294 |
($471,538) |
$3,168,756 |
COORDINATION
This report has been coordinated with the Executive Director’s and Stadium Authority Counsel’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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve a budget amendment to include the Command Post Window Treatment CapEx Project in the Stadium Authority FY 2022/23 CapEx Budget in the amount of $9,425 from the Stadium Authority Capital Expense Reserve;
2. Approve a budget amendment to include the Non-Slip Floor Matting CapEx Project in the Stadium Authority FY 2022/23 CapEx Budget in the amount of $59,351 from the Stadium Authority Capital Expense Reserve;
3. Approve a budget amendment to include the Lift Station CapEx Project in the Stadium Authority FY 2022/23 CapEx Budget in the amount of $206,800 from the Stadium Authority Capital Expense Reserve;
4. Approve a budget amendment to include the Mechanical and Electrical Closet Lighting CapEx Project in the Stadium Authority FY 2022/23 CapEx Budget in the amount of $111,958 from the Stadium Authority Capital Expense Reserve;
5. Approve a budget amendment to include the Rust Prevention Mitigation CapEx Project in the Stadium Authority FY 2022/23 CapEx Budget in the amount of $18,945 from the Stadium Authority Capital Expense Reserve; and
6. Approve a budget amendment to include the Loading Dock Lighting CapEx Project in the Stadium Authority FY 2022/23 CapEx Budget in the amount of $65,059 from the Stadium Authority Capital Expense Reserve.
Staff
Reviewed by: Kenn Lee, Treasurer
Approved by: Rajeev Batra, Executive Director
ATTACHMENTS
1. Stadium Manager’s 2022-23 Capital Expenditure Plan with 5-Year Forecast
2. Stadium Manager’s Emails on 2022/05/12 & 2022/05/13
3. Stadium Manager’s Email on 2022/05/19