REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from the Stadium Authority Regarding the Stadium Manager’s Request to Execute an Agreement with Silicon Valley Business Journal for Non-NFL Catered Events Advertising
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
On September 17, 2019, the Stadium Authority Board (Board) approved the introduction of Ordinance No. 2005, which rescinded the Executive Director’s delegated purchasing authority and requires all contracts or agreements to acquire supplies, materials, equipment and services to require Board approval by amending Chapter 17.30 of the Santa Clara City Code. On October 8, 2019, the Board adopted Ordinance No. 2005, which became effective on November 8, 2019. As a result of the Board’s revocation of the Executive Director’s authority to procure good and services on behalf of the Stadium Authority as of November 8, 2019, the Stadium Manager must now seek approval from the Board and demonstrate that the Stadium Manager has properly and legally procured goods and services before contracts may be executed.
The Stadium Manager is required to develop an annual Marketing Plan to outline the Stadium Manager’s plans to develop, implement, and monitor marketing, booking, advertising and promotion of Non-NFL Events for Levi’s Stadium. The Marketing Plan needs to be mutually agreed upon by the Stadium Manager and the Stadium Authority.
On March 5, 2020, the Stadium Manager’s draft 2020 Non-NFL Events Marketing Plan (Marketing Plan) (Attachment 1) was discussed during a Study Session. The draft 2020 Marketing Plan was reviewed against data results, alignment to Management Agreement provisions, and other key information. The Board ended up not taking any action on the draft 2020 Marketing Plan on March 24, 2020 when it was brought forth with the Stadium Authority FY 2020/21 Budget and Stadium Operation and Maintenance Plan for approval.
Those discussions took place around the time the State and County COVID-19 Shelter In Place Orders became effective. As result, Levi’s Stadium has not held any Non-NFL Events since March 2020. However, the Stadium Manager has communicated to Stadium Authority staff that their sales team has continued to market Levi’s Stadium and book events for 2021 during this time.
Silicon Valley Business Journal (SVBJ) serves the region's financial and technology community with its newspaper, website and events. SVBJ receives 476,519 monthly unique visitors and has 10,157 paid circulations and 19,772 afternoon edition newsletter subscribers. According to the Stadium Manager, SVBJ’s Dedicated Email Marketing Program serves 36,000 business decision makers who opt in to receive bi-weekly e-blasts and there is a 18% unique open rate for these emails and a 1-5% click through run rate depending on the content.
DISCUSSION
The agreement with SVBJ is for two separate e-blast campaigns that will focus on Non-NFL catered events and take place within a 12-month period beginning January 8, 2021. Each e-blast campaign is priced at $5,400 and the agreement is for a not-to-exceed amount of $10,800. Stadium Authority staff determined that the supporting documents for this scope of work are complete and in order.
The Stadium Authority has reviewed this request and found that the advertising services aligns with one of the three key initiatives (“Increase New Business Leads & Bookings”) the Stadium Manager identified in their draft 2020 Marketing Plan to grow the business and drive revenue. As outlined in pages 10-11, the Stadium Manager planned to focus on bringing back past clients and “continuing to cultivate and capture new business” through launching a quarterly newsletter, continuing to provide content through social media, and running strategic email campaigns.
ENVIRONMENTAL REVIEW
The actions being considered do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment or 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
The Stadium Manager has identified this advertising service with SVBJ as a Non-NFL Event Expense. Under Section 4.7.3 (“Stadium Authority Event Revenue and Expenses”) of the Stadium Lease between the Stadium Authority and Forty Niners SC Stadium Company, the Stadium Authority is responsible for all Stadium Authority Event Expenses.
COORDINATION
This report has been coordinated with the City’s Purchasing Manager and the Stadium Authority Counsel and Treasurer’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.
ALTERNATIVES
1. Approve the Stadium Manager’s request for authority to execute an agreement with SVBJ in an amount not to exceed $10,800 for two e-blasts campaigns focused on Non-NFL Events bookings;
2. Do not approve the Stadium Manager’s request for authority to execute an agreement with SVBJ in an amount not to exceed $10,800 for two e-blasts campaigns focused on Non-NFL Events bookings; or
3. Any other direction from the Board.
RECOMMENDATION
Recommendation
Alternative 1: Approve the Stadium Manager’s request for authority to execute an agreement with SVBJ in an amount not to exceed $10,800 for two e-blasts campaigns focused on Non-NFL Events bookings.
Staff
Prepared by: Christine Jung, Assistant to the City Manager (Executive Director)
Reviewed by: Deanna J. Santana, Executive Director
ATTACHMENTS
1. Draft 2020 Non-NFL Events Marketing Plan