REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on an Amendment No. 3 to the Agreement with Everon LLC for Fire Sprinkler Testing, Inspection, and Maintenance Services to Extend the Term by One Year, Increase the Total Agreement Amount, Update the Compensation and Fee Schedule, and Delegate Authority to the Executive Director for Future Amendments
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.."
In 2023, the Stadium Manager completed a Request For Proposals (RFP) process for fire sprinkler testing, inspection, maintenance, and related services, which received three proposals. The Stadium Manager recommended an award to the highest-ranked proposer offering the best value, ADT Commercial LLC.
On March 21, 2023, the Stadium Authority Board approved the Stadium Manager's request to establish a three-year agreement with ADT Commercial LLC to provide fire sprinkler testing, inspection, maintenance, and related services with an option to renew for two one-year periods (Agreement) (Attachment 1). The initial term of the agreement was from April 1, 2023 through March 31, 2026, with a not-to-exceed amount of $228,000 over the three-year period. The Stadium Authority Board also authorized the Executive Director to approve the Stadium Manager's exercise of the option to extend the agreement with the same basic terms and conditions for two additional one-year periods, subject to budget appropriations.
After executing the three-year agreement, ADT Commercial was acquired by GTCR, a private equity firm, and rebranded to Everon, LLC....
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