REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from the Stadium Authority Regarding the Stadium Manager's Request to Execute Amendment No.1 to Concessions Operating Agreement with Levy Premium Foodservice Limited Partnership
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approved Ordinance No. 2005 amending Chapter 17.30 of the City Code (Stadium Authority Procurement Policy), which rescinded the delegation to the Executive Director to enter into agreements without prior Board approval.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 the Stadium Manager's authority to enter into contracts was through delegated authority from the Executive Director, as a result of Ordinance No. 2005, the Stadium Manager is now 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 existing Concessions Operating Agreement, Levy Premium Foodservice Limited Partnership (Levy) has rights to provide food, beverage, and catering services at Levi's Stadium. The Stadium Manager is requesting authority to amend the agreement to extend the term by one year and modify several financial investment fee and fund amortization schedules so they align with the new term.
The existing agreement has a 12-year term and is effective until April 15, 2030. If Amendment No. 1 is approved, the Concessions Operations Agreement with Levy will be effective through April 15, 2031.
DISCUSSION
Below is Stadium Authority staff's analysis of the proposed amendments:
1. Amending Section 3.3 to extend the term of the agreement by one year, until April 15, 2031.
Staff Analysis: The amendment is required by Section 3.3 in the Concessions Operations Agreement which states, "If fewer than eig...
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