REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Note and File this Informational Report on FY2019/20 Net Loss on Non-NFL Events [Board Pillar: Ensure Compliance with Measure J and Manage Levi's Stadium]
Report
BACKGROUND
On June 8, 2020, Stadium Authority staff received an email (Attachment 1) from the Vice President/Controller of the Stadium Manager, Esther Chi, requesting the Stadium Authority submit a Withdrawal Certificate to Bank of America and the Collateral Trustee, responsible for initiating cash disbursements, to fund the FY 2019/20 Net Non-NFL event loss of $2,741,014 by June 12, 2020. The highly summarized Non-NFL Event profit and loss statement (Attachment 2) was included as support for the loss calculation. In addition to the request to fund the loss, Ms. Chi indicated the outstanding public safety invoices totaling $1.1 million due to the City of Santa Clara would only be paid after the Stadium Authority funded the loss. Subsequently, Stadium Manager staff sent Invoice SLS-060820-A (Attachment 3) to the Stadium Authority for the FY 2019/20 Non-NFL Events Net Loss in the amount of $2,741,014.
On June 10, 2020, the Stadium Authority responded with a letter (Attachment 4) to Ms. Chi requesting an explanation for the urgency of the disbursement and notifying the Stadium Manager that four days for review and approval of such a large disbursement is unreasonable. The letter also notified Ms. Chi that the accounting records related to the calculation of the net Non-NFL loss must be reviewed prior disbursement; once the records are reviewed, the Stadium Authority Board must approve the appropriation as the loss was not included in the FY 2019/20 budget. In addition, the Stadium Authority reminded Ms. Chi that Measure J does not allow City funds to cover any costs related to Stadium operations and that prompt payment of outstanding invoices is requested.
On June 15, 2020, the Stadium Authority received correspondence (Attachment 5) from Larry MacNeil o...
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