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 these costs)
o $102,181 for reimbursement of Computer-Aided Dispatch (CAD) Replacement Capital Expense (CapEx) project costs, which was part of a larger city-wide CIP project
o $94,357 for reimbursement of General and Administrative (G&A) City staff time (e.g.: City Manager’s Office, City Attorney’s Office, and Finance Department)
• Payment of $47,805 to RMI Mechanical Contractor, Inc. for the Miscellaneous General Building CapEx project.
• Payment of $36,907 to Geo M Robinson & Co. for the Fire Sprinkler CapEx project.
Significant expenses in April 2019 include:
• Payment of $19,474,660 to Stadium Funding Trust in the amount which includes the required Term A principal payment of $12,718,000 and six months of interest totaling $6,756,660
• Payment of $1,168,255 to Stadium Manager for stadium operations costs such as staffing, supplies, equipment, insurance, and utilities
• Payments totaling $99,738 to the City of Santa Clara for the following:
o $84,957 for reimbursement of G&A City staff time (e.g.: City Manager’s Office, City Attorney’s Office, and Finance Department)
o $14,781 for reimbursement of City staff time for the CFP (the Stadium Authority has not been reimbursed by BAHC)
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
There is a $49,921,737 fiscal impact to the Stadium Authority.
COORDINATION
This report has been coordinated with the Stadium Authority Counsel’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Approve the list of Bills and Claims for March and April 2019.
Staff
Reviewed by: Angela Kraetsch, Treasurer
Approved by: Deanna J. Santana, Executive Director
ATTACHMENTS
1. 2019-03 SCSA Bills and Claims
2. 2019-04 SCSA Bills and Claims