REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Second Amendment to Agreement with STR Marketplace, LLC for Stadium Builder License Website Marketing
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approved Ordinance No. 2005 amending Chapter 17.30 of the City Code (Stadium Authority Procurement Policy), which rescinded the delegation to the Executive Director to enter into agreements without prior Board approval.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 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.
The Executive Director is requesting approval for the following:
* Authorization to execute the Second Amendment to the Agreement with STR Marketplace, LLC (STR) to extend the term of the agreement by one year from June 1, 2022 to May 31, 2023.
STR has provided a secondary market website to facilitate the transfer of Stadium Builder Licenses (SBLs) since 2014. Under the scope of the existing agreement, STR manages and operates a website where buyers and sellers of SBLs conduct transactions. In exchange for use of the Levi's Stadium trademarks and links on the Stadium Authority website, STR pays the Stadium Authority a base annual Sponsorship Fee of $325,000 and 50% of the balance of Transfer Fees if STR exceeds $650,000 in commissions for the contract year.
DISCUSSION
Pursuant to Purchasing Code section 2.105.160(b)(5)(e), the recommended action does not require competitive bidding because this is a "continued service" where changing vendors would result in service disruptions due to STR's past experience performing these services.
The services provided under the agreement with STR provides SBL Holders with a resale market for SBLs. Users pay commissions to STR with buyers and sellers paying a 10% commission on sales facilitated on the website. ...
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