Santa Clara has contracted with a well-known vendor for merchandising for non-NFL events at Levi’s Stadium.
At its Tuesday night meeting, the Santa Clara City Council opted to contract with Fanatics. Approval of the contract had seen pushback, most notable from Mayor Lisa Gillmor, when previously presented.
Gillmor’s opposition to the approval stemmed from the city’s lack of bidding the contract, saying the situation was a matter of transparency, emphasizing that it was the council’s “civic duty.”
“We owe it to our public to go out for a competitive bid,” she said.
Exclusive negotiating rights allow Fanatics to sell merchandise in certain areas of Levi’s Stadium. Had the council opted to go with another vendor, Fanatics would be competing with that vendor.
Jihad Beauchman, executive counsel 49ers, said revenues from those sales would go into the team’s pocket. Meanwhile, if Fanatics were awarded the contract, all revenue would flow to the Santa Clara Stadium Authority.
Because of Fanatics “extensive reputation” its “ability to scale” leaves it in a “better placed than anyone” for the merchandising contract, Beauchman said.
Chuck Baker, assistant city manager, said city employees estimate a 118% increase for merchandising over the previous year.
The tiered model based on gross sales would see Fanatics capturing 7% or $5,000, whichever is higher, on up to $4 million in sales and 8% if greater than $4 million.
The new terms would generate between $150,000 and $250,000 more revenue for the stadium authority.
Fanatics has partnerships with 14 of 32 NFL teams.
In a 5-2 vote, the council approved a two-year agreement with the option for two one-year extensions with Fanatics. Gillmore and Vice Mayor Kelly Cox dissented.
Council Allocates Federal Money
The council also approved the allocation of U.S. Department of Housing and Urban Development (HUD) money.
That money is designated for the Community Development Block Grant (CDBG) program and the home program. The former is allocated roughly $1 million, while the latter is allocated roughly $665,000.
Roughly $200,000 will go toward the minor repairs program, which will serve up to 11 homeowners with grants up to $25,000. Additionally, $560,000 in loans will fund more major repairs such as foundation work, reroofing, plumbing, termite damage repair or heating and cooling system replacement for up to six homes.
Much of the remaining money for the program goes toward grants to community organizations such as Meals on Wheels or the Bill Wilson Center.
Council Member Kevin Park said he would like to better understand the program’s costs.
“Sometimes you have to be a little inefficient with your spending to ensure that people with smaller requirements, people that don’t have access to monies get served,” Park said.
The council approved the allocation unanimously.
Council And Police Chief Get Raises
The council also approved recommendations from the salary setting commission. Those recommendations upped salaries for the council and city clerk through 2027 by 10% and the police chief by 2.5%.
The salary increase makes Santa Clara Police Chief Cory Morgan’s salary $353,686 a year.
The law requires the council to approve the commission’s recommendations. The council has no say in setting these salaries.
Consent Calendar Spending
The council approved the following spending in one motion via the consent calendar:
- A $489,280 contract with Tennyson Electric for signal timing on Pruneridge Avenue.
- A $1.13 million contract with Silicon Valley Paving for asphalt and concrete rehabilitation.
- A $8.6 million contract with Radius Earthwork, Inc. for street pavement maintenance.
- A $900,000 purchase order with “vendors” for aluminum tubular substation bus conductors for the northern receiving station.
- A $3 million increase to agreements with Stantec Consulting Services, Inc. and Bellecci & Associates, Inc. for underground electrical distribution system design services, to extend the term through April 30, 2030. Total contract is now $6 million.
- A $250,000 increase to a contract with Teri Black & Co. for recruitment services. Total contract is now $500,000.
The next regularly scheduled meeting is Tuesday, May 20 in the Council Chambers at City Hall, 1500 Warburton Ave. in Santa Clara.
Members of the public can participate in the City Council meetings on Zoom at https://santaclaraca.zoom.us/j/99706759306; Meeting ID: 997-0675-9306 or call 1 (669) 900-6833, via the City’s eComment (available during the meeting) or by email to PublicComment@santaclaraca.gov
Contact David Alexander at d.todd.alexander@gmail.com
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