By Robert Haugh
The Stadium Authority found out that the 49ers/ManCo had violated state prevailing wage laws. The team got a “breach of contract” warning from the Stadium Authority on March 28, 2019.
They were supposed to “cure” the problem in 30 days. They didn’t.
So last night, Stadium Authority Attorney Brian Doyle told the Board that he issued a “Notice of Default” on April 24, 2019. Then the Board asked the staff to bring back a resolution taking away the 49ers/ManCo’s procurement authority. That means they won’t be trusted to bid and sign procurement contracts at the stadium. Wow.
The Board also instructed the staff to figure out how to pay for the extra costs and time to deal with procurement and take it out of the 49ers/ManCo management fee. The staff was also directed to report the violations to the state. Double wow.
The vote was 7-0. 49ers supporter Board member Patty Mahan supported the motion and didn’t say anything all night.
Free Taylor Swift tickets, Field Seats
The 49ers continued their stonewalling on the issue of free Taylor Swift tickets and whether or not they owe the City money for field seats they installed last year. There were lots of times Board members said they were frustrated that the team has been withholding info and documents for years.
There were a lot of powerful statements last night. Here are some highlights:
Board chair Mayor Lisa Gillmor: “I think what we have is a bigger issue. And the bigger issue is their (49ers) management ability … We are just finding in terms of getting the details that they do not have the experience to manage the stadium.“ YouTube 1:14:28
Doyle: “This is not some paperwork problem. This is a wholesale failure to perform the duties of the executive director with regard to procurement at the stadium for five consecutive years. It is not the result of some personal idea in my head. It is the result of my first learning about this approximately 30 something days ago when the stadium authority manager (Jim Mercurio) admitted to the executive director that he thought paying prevailing wages meant or complying with prevailing wage law meant not going to Home Depot parking lot and picking people up.” 1:20:28
Doyle: “I’d just like to remind the Board as well as the public that we intend to seek to recover all of our cost with respect to this. Clearly, the contract requires them to pay all of their cost as a result of their breach. I don’t know what argument they would have to not do that. But they are very recalcitrant type people and they tend to not want to hand over money. And they certainly don’t want to ever admit they made a mistake.” YouTube 1:51:02
Mercurio Conflict of Interest
Board member Debi Davis mentioned our story yesterday about Stadium Manager Mercurio have stock in VenueNext, a technology vendor at the stadium. It looks like a conflict of interest.
After our story, Mercurio responded to City Manager Deanna Santana with a confusing response. The City staff and others are going to investigate this.
(Note to Davis: Thanks for the reference. It doesn’t mean you’ll win this week’s Leg Drop Award. But it doesn’t hurt.)