REPORT TO STADIUM AUTHORITY
SUBJECT
Title
Corrective Action to Cure Violation of Section 2.1 of the First Amendment to the Stadium Management Agreement, Stadium Procurement Contracts by Retroactive Approval of an Agreement for NEx Systems for Stadium Floor Improvements and Stadium Manager Disclosure of Contracts Issued Through Delegated Authority from $100,000 to $250,000
Report
BACKGROUND
Section 17.30 Stadium Authority Procurement Policy of the City's Municipal Code ("Code") outlines the policies and procedures with respect to procurement for the Stadium Authority. The Code authorizes the Executive Director, or designee, to purchase professional, nonprofessional and personal services required by the Stadium Authority in contract amounts up to and including two hundred fifty thousand dollars ($250,000) per contract, subject to budgetary approval. Contracts with an amount above this dollar limit must be approved by the Stadium Authority Board ("Board").
Section 2 Delegation of Contracting Authority of the First Amendment to the Stadium Management Agreement, requires that the Stadium Manager provide the Stadium Authority with information, including the contracting party and the contract amount, regarding all Stadium Procurement Contracts entered into with contract amounts greater than $100,000 within thirty (30) days of entering into any such contract.
On July 25, 2016, the Board retained the services of Harvey M. Rose Associates, LLC (Auditor) to perform an audit of Stadium operations to ensure compliance with the 2010 voter approved Measure J (Audit). The Auditor's final report, presented to the Board on August 24, 2017, included recommendation 1.O: The Stadium Authority Board should direct the Executive Director and Stadium Authority Counsel to request an amendment to the Management Agreement that would require formal and/or informal bidding procedures for any transactions with Manco affiliates or for transactions above a designated threshold to ensure tha...
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