Santa Clara Stadium Authority Gives 49ers One Week to Turn Over Documents; City Council Touches Several Issues

Staff Report

With over one hour of public comment from several 49ers Stadium Management Company  (ManCo) employees as well as several Santa Clara residents, the Santa Clara Stadium Authority voted unanimously to give the 49ers’ ManCo one week to provide documents requested by Stadium Authority auditors.

Heated discussion came from several donning red and gold, with many speaking about fear of losing their jobs – something never threatened by the City or Stadium Authority.

The crux of the matter is that the Stadium Authority has been requesting financial documents related to stadium event management for 2-1/2 years, documents that are a legal requirement in compliance with Measure J.

According to the staff report, Fred Brousseau, Principal, Harvey M. Rose Associates, LLC, the auditor of stadium finances, reports in a Nov. 10 email to City staff that some requested documents have been received, while others are outstanding. According to that email, outstanding requests include: Dates, sign-in sheets and agendas for all event production meetings with City staff from April 2014 to present;  ManCo parking agreements (covering non-NFL events); Financial records.

Additionally, Brousseau has asked ManCo to confirm the following records: Non-NFL event revenue (i.e., individual revenue and expenditure components), utilities expenses, use of StadCo TI fee, stadium manager expenses, SBL Sales and Service, Non-NFL event expenses (i.e., individual revenue and expenditure components), Operation and Maintenance Plan.

Several speakers representing the 49ers and ManCo claimed that prior to the meeting, these documents had already been made available. City staff conferred that there were recent records released, but could not determine what records may still be outstanding as of the time of the meeting.

One 14-year-old spoke at the meeting, “I don’t know much about the adult World, but I do have one question – why is the World of big money so secretive?”

“There has to be a better way … we have to come together … I’m sick and tired of all the spewing … I’m so tired of it … I want to support my mayor and Council, but also the 49ers, a fine philanthropic organization,” stated Caserta, a staunch 49ers supporter. “We have to do better,” he added, mentioning children he teaches who have benefited from partnerships with the 49ers through programs such as GAINS and STEM.  “I don’t believe this motion will bring us together .. I’m sick and tired of picking sides. Tino [Silva], Lisa [Gillmor], Debi [Davis], all love Santa Clara. We all love Santa Clara … This motion will only lead to more salt in the wound.”

Caserta moved to amend a motion made by Council member Debi Davis (to authorize issuing a 30-day breach of contract letter) to allow ManCo an extra week to bring forth the requested documents. While Caserta mentioned two weeks time, Vice Mayor Teresa O’Neill suggested further amending the motion to allow just one week, opposed to two, which the Council/Stadium Authority voted 6-0 (Council member Jerry Marsalli not present) to bring the item back to the Nov. 22 meeting.

If ManCo does not provide the requested documents by then, the Stadium Authority will automatically send a 30-day notice to the Stadium Manager regarding breach of contract.

“I respect all of you employees here tonight … there is not enough detail in the documents I have seen. The Notice is our way of being serious, we need the full cooperation of ManCo to get these documents,” stated O’Neill. O’Neill noted her prior career in contract negotiations, that she understands details are needed. She also stressed that no one is implying job losses – that the Stadium Authority needs more details moving forward to ensure the best for the City.

Council member Kathy Watanabe, a fervent supporter of Measure J, reiterated the request for documents isn’t politically motivated, but that the request for documents is only being done to follow the law set in place by Measure J. “It’s 10-o’clock and this is what it’s come down to? We’ve been asking for these documents for over two years.”

Gillmor, allowing all speakers a courtesy beyond their two-minute time limit, with the exception of one late presenter (who received a loud lashing from the rest of the audience) concluded the discussion stating, “Had your management provided the documents, we wouldn’t be here tonight … We don’t want to take your jobs, your food on your table or your livelihood, we just want some documents that we’ve been asking for some time.”

 Moonlite Lanes Apartment Project Bumped From Agenda

The Moonlite Lanes Apartment project (2780El Camino Real), which was expected to have a large amount of residents attending the meeting to speak on, was removed from the Agenda mere hours prior to the meeting and will be brought back in January.  The developer asked to postpone the item.

Recognition of Outgoing Cultural Commissioner Kathleen Ryan

Cultural Commissioner Kathleen Ryan was recognized for her three years of service to the City’s Cultural Commission.

Presentation of Funds to Local Charities from 2016 Art & Wine Festival Proceeds

Several charities were distributed $65,000 total in proceeds from the 2016 Art & Wine festival.  The eight charities selected to receive funds from the 36th Annual Santa Clara Art & Wine Festival: Santa Clara Parks & Recreation ($13,000); Santa Clara Police Activities League ($13,000); Santa Clara Schools Foundation ($13,000); Santa Clara Senior Center—Health & Wellness/Care Management Program ($10,000); Rotary Club of Santa Clara ($6,000); Santa Clara High School Grad Night Committee ($4,000); Wilcox High School Grad Night Committee ($4,000); and Wade Brummal Youth Sports Grant Program ($2,000).

Silicon Valley Power Rate Increase

Silicon Valley Power (SVP) will bring forth a detailed presentation regarding  Jan. 1, 2017 three percent increase in costs to all classes of consumers at the Dec. 6, 2016 Council meeting, explaining the reasons for the rate increase.

Proposed Expansion of City’s Smoking Ordinance

Patricia A. Lopez requested in writing a request that the City expand the City’s smoking ordinance.

Other Items:

* Up to $155,000 was approved to MAK Associates Inc. dba Playgrounds Unlimited to provide additional equipment at the aging Steve Carli Park, built in 1952. Funds came partially from developer fees. According to staff report, the Steve Carli Park playground has surpassed its useful life.

* Up to $75,000 (City staff recommended up to $150,000) was approved for legal representation regarding Stadium Authority operations to Goldfarb & Lipman LLP.

* Two Stadium Authority matters – hiring a Stadium Oversight Manager and approval of an appointment of a three member Ad Hoc Sub Committee to provide input on the selection process for that position, were tabled to next week’s meeting due to the matter regarding the Stadium audit and documents being moved to next week.

Planning Commission/Council Joint Dinner Meeting

Prior to the Council/Stadium Authority meeting, there was the first Planning Commission/City Council joint dinner meeting. The meeting(s) were established, “in an effort to increase communication between City Council and City Boards, Committees and Commissions.”

At the meeting, the Planning Commission provided the Council with an update on  current activities and potential future project.

Next Meetings:

Wednesday, Nov. 16 – Marketing Committee – 4 to 6 p.m. – Central Park Library, Margie Edinger Community room, 2635 Homestead Road.

Wednesday, Nov. 16 – Architectural Committee – 7 p.m., City Hall Council Chambers, 2500 Warburton Avenue.

Friday, Nov. 18 – Oversight Board for the Successor Agency, 10 a.m., City Council Chambers

Monday, Nov. 21 – Ad Hoc Stadium Audit  Committee, 5:30 p.m., City Hall Council Chambers

Tuesday, Nov. 22 – Council and Authorities Concurrent meeting, 5:30 p.m., City Hall Council Chambers

Monday, Nov. 28 – Ad Hoc Stadium Audit  Committee, 5:30 p.m., City Hall Council Chambers

Thursday, Dec. 1 – Historical and Landmarks Commission, 7 p.m., City Hall Council Chambers