REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Informational Report Regarding Notice of Breach of Agreement and Audit of Stadium Manager Delegated Procurement Authority
Report
BACKGROUND
Santa Clara Municipal Code (Code) Chapter 17.30, Stadium Authority Procurement Policy, outlines the procurement policies and procedures for the Santa Clara Stadium Authority (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).
The First Amendment to the Stadium Management Agreement, Section 2. Delegation of Contracting Authority, 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 November 9, 2018, the Executive Director sent a letter (Attachment 1) to the Stadium Manager noting the requirements of Section 2.1 and directing the Stadium Manager to comply, including retroactive compliance for past procurement actions. The letter acknowledged notification, received via two letters on October 30, 2018, from the Stadium Manager regarding the initiation of three projects, but also noted that there had not been any previous notifications. Further, the Executive Director noted that the contract for one project noticed on October 30, 2018 exceeds the contract approval authority outlined in Section 17.30.120 of the City Code ($250,000), and requires SCSA Board action, in advance of executing the contract.
On February 19, 2019, Stadium Authority staff presented to the Board corrective ...
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