REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Bills and Claims for the months of March and April 2019
Report
BACKGROUND
Disbursements made by the Stadium Authority are based on invoices submitted for payment. Prior to payment, staff reviews all disbursement documents to ensure that they are in compliance with the goods or services provided.
The Bills and Claims listing represents the cash disbursements required of normal and usual operations during the period. Budget control is set by the Stadium Authority Board through the budget adoption process.
DISCUSSION
On April 30, the Stadium Authority Board directed staff to stop payment of any Stadium Authority invoices for services unless there is substantial documentation of services rendered, which must also be in compliance with State law and City Code. The March and April invoices were processed for payment prior to that direction. Significant expenses in March 2019 include:
* Two Payments totaling $27,405,622 to Forty Niners SC Stadium Company, LLC (StadCo) for the following:
o $26,511,644 for the StadCo Subordinated Loan (Subloan) which includes interest, the minimum required principal payment, and a principal prepayment due to excess revenues available and required to be paid to the Subloan per the Amended and Restated Stadium Lease Agreement
o $893,978 for the Community Facilities District (CFD) Advance (StadCo loaned the Stadium Authority $35 million which is to be repaid solely by CFD hotel taxes)
* Payment of $1,339,264 to Forty Niners Stadium Management Company, LLC (Stadium Manager) for stadium operations costs such as staffing, supplies, equipment, insurance, and utilities.
* Payments totaling $303,125 to the City of Santa Clara for the following:
o $106,587 for reimbursement of Silicon Valley Power (SVP) staff time and outside agency costs for the College Football Playoff (CFP) National Championship (the Stadium Authority has been reimbursed by the Bay Area Host Committee (BAHC) for the...
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