REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Agreement with SCC Electric Inc. for the Radio Booth Cabling - Phase I CapEx Project at Levi’s Stadium and Related Budget Amendment
Report
BACKGROUND
Pursuant to Section 2.9 of the Stadium Management Agreement between the Santa Clara Stadium Authority (Stadium Authority), Forty Niners SC Stadium Company LLC (StadCo), and Forty Niners Stadium Management Company LLC (Stadium Manager), the Stadium Manager is responsible for maintaining Levi’s Stadium (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 Authority Fiscal Year (FY) 2025/26 Capital Expense (CapEx) Budget includes a $549,893 for a Radio Booth Cabling - Phase I line item. The project will install fiber optic cabling to increase the low voltage cabling backbone. This installation will accommodate the expanding requests received for booth usage during stadium events and will help the stadium keep up with emerging trends. The project will install fiber optic cabling between multiple booths located on the 800 level suite tower location and the loading dock.
The Stadium Manager has incurred approximately $20,475.06 in costs related to permits, design and engineering services, and advertising of the public works project. At the time of writing this report, the Stadium Manager did not have a final amount for the permits, design, and engineering costs but confirmed that the amount should sufficiently cover the described costs. The Stadium Manager has existing agreements for architectural and engineering services which were approved by the Stadium Authority Board on November 9, 2021.
The Stadium Manager is requesting Stadium Authority Board approval of the following actions related to the Radio Booth Cabling - Phase I CapEx Project:
1. Approve approval and award of a one-time contract to SCC Electric Inc., in the amount of $485,000 for the Radio Booth Cabling - Phase I at Levi’s Stadium;
2. Authorize the Stadium Manager to execute change orders with SCC Electric Inc. and incur other project related expenditures including, for design, engineering, advertising, permits, and inspections, of up to $48,500, for a total not to exceed amount of $533,500;
3. Approve an augmentation of the Stadium Authority capital expenditure budget for this project of $4,082.06, which will increase the total budget amount for this Project from $549,893 to $553,975.06; and
4. Authorize Stadium Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project.
The Stadium Manager has provided a Recommendation Memo that summarizes the new request (Attachment 1).
DISCUSSION
Stadium Authority staff reviewed the Stadium Manager’s Recommendation for Award memo, supporting documentation, and draft agreement (Attachment 2) for consistency against the City’s public works bidding practices (City Charter Section 1310). The Stadium Manager’s original Request for Bids (RFB) received one response, which was determined over budget. The Stadium Manager cancelled the bid and reissued the RFB, which received five responses. After issuing the new RFB and selecting the lowest bidder, the Stadium Manager issued a Notice of Intended Award. The selected bidder withdrew their bid, resulting in their disqualification, as well as a payment of bid security in the amount of $24,980 which will be forwarded to the Stadium Authority. The Stadium Manager is recommending award to the next lowest responsive and responsible bidder, SCC Electric Inc.
Based on the provided documentation and information, staff recommends approval of the Stadium Manager’s request.
The Stadium Authority Counsel’s Office has reviewed the requested agreement for comparison to the Stadium Authority’s customary language. Nothing in the proposed agreement changes the Stadium Authority’s rights under the Management Agreement and specifically with respect to any dispute that may arise from the Stadium Manager’s obligations under the Management Agreement.
The Stadium Authority reserves all rights to confirm and dispute charges by and payments to the Stadium Manager during a fiscal year-end reconciliation/true-up, including but not limited to changes based on improper allocation, calculation, lack of support, or failure to comply with the Parties’ contracts or California law. The Stadium Authority may raise related questions before the fiscal year-end reconciliation/true-up, which the Stadium Manager agrees to assess and respond to in good faith.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities” as the activity consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities mechanical equipment or topographical features involving negligible or no expansion of use beyond that existing at the time of the lead agencies determination.
FISCAL IMPACT
The FY 2025/26 CapEx Budget contains a $549,893 line item for the Radio Booth Cabling - Phase I CapEx Project. Approval of the Stadium Manager’s request will require a budget amendment to increase the line item by $4,083 to a total budget amount of $553,976. The new budget total will cover the agreement ($485,000), potential change orders and potential and incurred project costs related to design and engineering services, permits, inspections, and advertising of the public works project ($68,975.06 total, inclusive of the estimated $20,475.06 in incurred costs). The Stadium Authority is responsible for all CapEx Project costs.
The table below summarizes the budget amendment as discussed above:
CapEx Budget
|
Description |
Current |
Increase/ Decrease |
Revised |
|
Equipment Expense |
$3,856,765 |
$4,083 |
$3,860,848 |
|
Ending Fund Balance - Capital Expenditure Reserve |
$1,357,684 |
($4,083) |
$1,353,601 |
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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation:
1. Approve a budget amendment for the Radio Booth Cabling - Phase I line item in the Stadium Authority FY 2025/26 CapEx Budget to increase the budget by $4,083 from the Capital Budget Ending Fund Balance, for a total budget amount of $553,976;
2. Approve the Stadium Manager’s request for approval of the Agreement with SCC Electric Inc., in the amount of $485,000 for the Radio Booth Cabling - Phase I CapEx Project at Levi’s Stadium;
3. Authorize the Stadium Manager to execute change orders with SCC Electric Inc. and incur other project related expenditures including design, engineering, advertising, permits, and inspections, of up to $48,500 for a total not to exceed amount of $533,500; and
4. Authorize Stadium Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project.
Staff
Prepared by: Christine Jung, Deputy City Manager
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. Agreement with SCC Electric Inc.
2. Stadium Manager’s Recommendation Memo