REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Bills and Claims for the months of May through August 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 May invoice was processed for payment prior to that direction. Since April 30, staff received direction to pay Stadium Authority invoices related to SBL sales and services, insurance, and utilities.
Significant expenses in May 2019 include:
• Payment of $375,744 to Forty Niners SC Stadium Company, LLC (StadCo) for the StadCo Subordinated Loan (Subloan) which includes interest 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.
• Payment of $1,302,000 to Forty Niners Stadium Management Company, LLC (Stadium Manager) for stadium operations costs such as staffing, supplies, equipment, insurance, and utilities.
• Payments totaling $131,734 to the City of Santa Clara for the following:
o $37,994 for reimbursement of City staff time 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 $9,601 for the payment of special liability claims related to Levi’s Stadium
o $84,139 for reimbursement of General and Administrative (G&A) City staff time (e.g.: City Manager’s Office, City Attorney’s Office, and Finance Department)
Significant expenses in June 2019 include:
• Payment of $950,270 to Forty Niners SC Stadium Company, LLC (StadCo) for the Community Facilities District (CFD) Advance (StadCo loaned the Stadium Authority $35 million which is used to be repaid solely by CFD hotel taxes)
• Payments totaling $123,070 to the City of Santa Clara for the following:
o $41,618 for reimbursement of G&A City staff time (e.g.: City Manager’s Office, City Attorney’s Office, and Finance Department)
o $81,452 for reimbursement of City staff time for the CFP (the Stadium Authority has not been reimbursed by BAHC)
Significant expenses in July 2019 include:
• Payment of $581,000 to Forty Niners Stadium Management Company, LLC (Stadium Manager) for stadium operations costs for SBL sales and services, insurance, and utilities.
• Payments totaling $83,398 to the City of Santa Clara for reimbursement of G&A City staff time (e.g.: City Manager’s Office, City Attorney’s Office, and Finance Department)
Significant expenses in August 2019 include:
• Payment of $2,605,000 to Forty Niners Stadium Management Company, LLC (Stadium Manager) for stadium operations costs for SBL sales and services, insurance, and utilities for July and August invoices.
• Payments totaling $385,968 to the City of Santa Clara for the following:
o $30,968 for reimbursement of G&A City staff time (e.g.: City Manager’s Office, City Attorney’s Office, and Finance Department)
o $355,000 for fiscal year 2019-20 stadium ground rent.
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 $6,676,120 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 May through August 2019.
Staff
Reviewed by: Kenn Lee, Treasurer
Approved by: Deanna J. Santana, Executive Director
ATTACHMENTS
1. May 2019 SCSA Bills and Claims
2. June 2019 SCSA Bills and Claims
3. July 2019 SCSA Bills and Claims
4. August 2019 SCSA Bills and Claims