REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Informational Report on Stadium Authority Contracts for Fiscal Year 2023/24 As Required by Santa Clara City Code Chapter 17.30 (Stadium Authority Procurement Policy)
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
Santa Clara City Code Chapter 17.30 (Stadium Authority Procurement Policy) formalizes the policies and procedures with respect to procurement for the Stadium Authority, with the intent to: 1) Establish efficient, equitable and effective procedures for the procurement activities of the Stadium Authority; 2) Ensure the integrity and equity in the procurement activities of the Stadium Authority and provide safeguards for the impartial application of the procurement policies; and, 3) Enable the Stadium Authority to operate efficiently and competitively; to responsibly maintain equipment, facilities and services; and to complete projects on time and on budget.
The Stadium Authority Procurement Policy applies to all purchases and contracts for supplies, materials, equipment, services, and public works by and on behalf of the Stadium Authority and establishes the Executive Director as the purchasing officer of the Stadium Authority. The City Council adopted Ordinance No. 2058, which became effective on April 20, 2023, providing the Executive Director with delegated signature authority to execute Stadium Authority contracts for supplies, materials, equipment, services, and public works in an amount up to and including $100,000, as allocated to and authorized by the Stadium Authority by adoption of the annual budget. For agreements where there are shared costs, including those for Shared Stadium Expenses (Shared Expenses) which are split 50/50 (or 30/70 for landscaping) between the Stadium Authority and Forty Niners SC Stadium Company, LLC (StadCo) per the Stadium Lease, the $100,000 threshold only applies to the Stadium Authority’s portion of the agreement.
Under the Stadium Authority Procurement Policy, the Executive Director is required to prepare and submit to the Stadium Authority Board, a report at the end of the fiscal year summarizing the total number of contracts let by the Stadium Authority, the number of contracts approved under an exception, the number of contracts approved under best value procedures and the number of contracts approved under formal bidding procedures, and to the extent possible listing information related to application and outreach efforts conducted to implement the Disadvantaged Business Enterprise (DBE) program.
DISCUSSION
The Stadium Authority entered into 16 total contracts to purchase or acquire supplies, materials, equipment, and/or services during Fiscal Year (FY) 2023/24. Three (3) amendments to legal contracts were entered into under the Stadium Authority Counsel’s authority to contract for legal services, which are exempt from competitive bidding per Santa Clara City Code 17.30.110(d). Of the remaining thirteen (13) contracts, the Stadium Authority executed seven (7) contracts approved under best value procedures, five (5) contracts for services, and one (1) contract by utilizing a competitive bid process of another public agency. There is no information to report related to application and outreach efforts conducted to implement the DBE program. The Stadium Authority’s contract activity for FY 2023/24 is summarized in Attachment 1.
Additionally, the Forty Niners Stadium Management Company LLC (Stadium Manager) has the authority to execute contracts only insofar as the Executive Director has such authority. Under Section 2 of the First Amendment to the Stadium Management Agreement between the Stadium Authority, Stadium Manager, and StadCo, the Stadium Manager is provided certain delegated authority to enter into contracts on behalf of the Stadium Authority.
The Stadium Manager entered into seventy-six (76) total contracts to purchase or acquire supplies, materials, equipment, services, and/or public works on behalf of the Stadium Authority during FY 2023/24. One (1) contract was entered into with a public agency, which is exempt from the Stadium Authority Procurement Policy per Santa Clara City Code 17.30.110(a). Of the remaining seventy-five (75) contracts, the Stadium Manager executed thirty-seven (37) contracts approved under best value procedures, two (2) contracts under formal bidding procedures, twenty-three (23) service contracts, five (5) public works contracts per Santa Clara City Charter Section 1310, and eight (8) contracts by utilizing a competitive bid process of another public agency per Santa Clara City Code Section 2.105.270. There is no information to report related to contracts entered into under an exemption or application and outreach efforts conducted to implement the DBE program. The Stadium Manager’s contract activity on behalf of the Stadium Authority for FY 2023/24 is summarized in Attachment 2.
It is staff’s understanding that the Stadium Manager has followed the City of Santa Clara’s procurement and public works requirements for these purchases and services, in addition to the Stadium Authority Procurement Policy. Staff is working with the Stadium Manager’s Director of Procurement to bring forth updates to other sections/provisions within Santa Clara City Code Chapter 17.30 to better align the Stadium Authority Procurement Policy with public procurement best practices similar to those in the City’s purchasing code and address existing gaps within the policy (e.g., consistent competitive process requirements for services, better alignment of public works definitions and requirements with City Charter and State law provisions).
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
There is no cost to prepare this report other than administrative staff time.
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:
Note and file the informational report on Stadium Authority contracts for FY 2023/24.
Staff
Reviewed by: Chuck Baker, Assistant City Manager
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. Stadium Authority Contract Activity for FY 2023/24
2. Stadium Manager Contract Activity on Behalf of Stadium Authority for FY 2023/24