RESPONSE TO COUNCIL QUESTIONS RE: 5/10/22 AGENDA
Agenda Item 4A: Action on 2022 Legislative Advocacy Positions (Deferred from April 19, 2022)
On the Council Agenda Questions (Q&A) from the April 19, 2022 meeting agenda, Vice Mayor Jain requested some edits to the Transportation Issues, Sustainability and Environmental Protection Legislative Advocacy Position (LAPs). We are including the previously provided staff feedback and adding staff recommended edits to Vice Mayor Jain’s proposed changes to CEQA position statement within the Sustainability and Environmental Protection LAP.
Council Comments:
I plan to pull item 4Q (now item 4A) to suggest the following amendments:
Under “Transportation Issues (previously titled Regional Transportation Issues)” Support the principles advocated by Seamless Bay Area to integrate/coordinate multiple transit agency schedules, fare payment, transfers, etc.
Staff Response:
Staff recommends the following edits: “Support efforts to integrate fare payments, schedules, transfers, and technology across multiple transit agencies to enhance regional transit service connectively.” (Note this language has been slightly edited from the proposed new language to accommodate any name changes to the Seamless Bay Area effort)
Under SUSTAINABILITY AND ENVIRONMENTAL PROTECTION
CHANGE:
Support opportunities to further reform the California Environmental Quality Act process to achieve greater efficiency, transparency, and alignment with objective environmental goals, while protecting local land use authority.
TO:
Support opportunities to further reform the California Environmental Quality Act process to match California’s very ambitious and accelerated goals for Greenhouse Gas emissions reductions while protecting local land use authority.
Staff Response:
Staff further reviewed the proposed language and suggests the modified position statement below:
“Support opportunities to further reform the California Environmental Quality Act process to achieve greater efficiency, transparency, and alignment with objective environmental goals including but not limited to California’s accelerated goals for greenhouse gas emissions reductions, while protecting local land use authority.”
ALSO CHANGE:
Monitor energy related legislation including but not limited to that which impacts renewable energy, energy efficiency and conservation, resiliency, smart grid solutions, energy storage, distributed energy and building and transportation electrification.
TO add “demand response”
2 Monitor energy related legislation including but not limited to that which impacts renewable energy, energy efficiency and conservation, resiliency, smart grid solutions, energy storage, demand response, distributed energy and building and transportation electrification.
Staff Response:
Staff will update “Monitor energy related legislation including but not limited to that which impacts renewable energy, energy efficiency and conservation, resiliency, smart grid solutions, energy storage, distributed energy and building and transportation electrification.” position statement to include demand response.
The Q&A document from the April 19, 2022 meeting agenda is linked here for your reference.
Agenda Item 4B: Request from Stadium Manager to Execute Second Amendment to Agreement with Bear Electrical Solutions Inc., for Levi's Naming Rights Existing Signage Lighting and Driver Repair CapEx Project and Agreements with HY Floor and Gameline Painting, Inc. for Club Space Flooring CapEx Project and Bear Insulation, Inc. for Stadium Insulation CapEx Project and Approve Related Budget Amendment
Council Questions:
1. How much does Levi’s pay per year and over the 20 year life of the Naming Rights Agreement?
Staff Response:
Levi’s will pay a total of $154.2 million over 20 years per Naming Rights Agreement. Naming Rights Fee started at $5.7 million for Year 1, and it increases by 3% per year to $10.1 million for Year 20. We are currently under Year 9 of this Agreement, and Naming Rights Fee for Year 9 is $7.3 million.
2. Who gets the money for Naming Rights? Does Stadco or the 49ers organization get any money from these 4 signs?
Staff Response:
The contract is between SCSA and Levi’s. Levi’s is obligated to pay SCSA annually, and we are obligated to pay a commission to Creative Artists Agency (CAA) who brokered the deal. Not pursuant to the Naming Rights Agreement. We do not have any details regarding the terms of the contractual relationship between the team and Levi’s.
3. If not the 49ers, then does the Naming Rights money goes towards paying off the loan or to Stadium Authority to pay Stadium operating expenses?
Staff Response:
Funds are deposited into an account to fund Operating Expense Reserve and Capital Expenditure Reserve which are then used for payment on the Stadium Authority Subordinate Loan with the 49ers.
4. This request (Item 5C) is for a repair not a replacement so who is responsible to pay for the repair per the agreement : Stadium Authority or Levi’s ?
Staff Response:
Repairs are the responsibility of the Stadium Authority. As described under Section 5(f) in the Naming Rights Agreement between the Stadium Authority and Levi Strauss & Co., the Stadium Authority is “responsible for all costs and expenses associated with the initial design, construction, production, delivery or installation of signage and other physical advertising included in the Naming Rights Entitlements and for the cleaning, repairing and maintenance of all such signage; provided, that Naming Rights Sponsor shall be responsible, at its sole cost and 3 expense, for the preparation of all conceptual drawings and designs and any other content for all signage in respect of this Agreement or the Naming Rights Entitlements.
5. There was a $500K repair last year. Can you show me before and after photos of the lit signs?
Staff Response:
Before and after photos are linked here
. Of the $500k budgeted, $250k was budgeted for repairs of the sign. The remaining $250k was an open purchase order for other electrical expenses On January 31, 2022, the Stadium Manager provided the Stadium Authority with an invoice of $248,812 and supporting documentation for reimbursement of the repairs.
Council Questions related to Item 4B:
At the April 19, 2022 Council meeting, a Councilmember posed questions for item 5.C on the Council meeting agenda re: the 2
nd Amendment to the Agreement with Bear Electrical Solutions for the Levi’s Signage pertaining to the contract and funding source; the responses to these questions are below:
• The requested action is to increase the annual contract amount for Bear Electrical Solutions from $250,000 to $670,000 (with a total three year not-to-exceed amount of $1.42 million) • Funding for this contract amendment to address the repair costs is included in the recently approved SCSA FY22/23 CapEx Budget. The name of the project is “Levi’s Naming Rights Existing Signage Lighting and Driver Repair”.
• The contract with Bear Electrical for as-needed services was procured per SCSA policies. • Per existing Board direction, the payment of invoices will not occur until the Stadium Authority receives appropriate documentation from Stadium Manager
Another Councilmember requested a copy of the Levi’s Naming Rights agreement approved at the May 9, 2013 Council meeting and the approved meeting minutes which are linked here .
Agenda Item 5J: Action on Award of Purchase Orders for Citywide As-Needed Heating, Ventilation, and Air Conditioning Repairs, Maintenance, and Replacement Services
Council Question:
I see that this is a contract for up to $134K for HVAC repair, maintenance and replacement.
I’m concerned about replacing fossil fuel furnaces with new fossil fuel furnaces. Can we create a preference for all-electric replacements of fossil fuel appliances with electric heat pumps for City owned facilities unless there is an extenuating reason for not doing it like not enough panel capacity or excessive expense?
I don’t like the idea of installing new fossil fuel appliances that will continue to burn fossil fuels for at least another 10 years, maybe 20.
Staff Response:
When projects are established to install entire new HVAC systems at facilities and require system designs, various options and alternatives may be explored in terms of what technology is used including heat pumps.
During this process staff also works with SVP to identify any potential rebates or other funding sources to help offset project costs. The contract being approved tonight is more for minor repairs, maintenance or replacements that do not require any design. Under this contract maintenance and repairs are made along with the potential of replacing components of a system that have failed. When this type of work is performed staff looks at opportunities to utilize more environmentally friendly and sustainable replacement parts.