12/5/2023 Item 3
Santa Clara Stadium
Authority
Action on Stadium Manager's Request to Execute
Agreement with Colony Landscape and
Maintenance, Inc. for Sod Removal and Related
Services at Levi's Stadium
Item #3
December 5, 2023
SCSA
SANTA CLARA STADIUM AUTHORITY
1 Background
• Shared Stadium Expenses' Allocations per Stadium Lease • Day to day expenses - Split 50/ 50 between StadCo and SCSA • Groundskeeping expenses - 70% StadCo / 30% SCSA
• SBL Sales and Services - 100% SCSA
• SCSA has a Financial Management System in place that allows staff to review backup information
• Implemented starting in FY 2022/23
• Includes Shared Expenses and Non-NFL Events
• Prior to FY 2022/23 review and limited access
2 2
POST MEETING MATERIAL
1 Item 3
12/5/2023
Prior Review Process
• Non-NFL Events' Reviews
• Financial Package Provided 90 Days After Fiscal Year End • Review Performed by JS Held from FY 2014/15 Through FY 2019/20
• Limited Review by Staff Prior to the Implementation of the Financial Management System (FMS)
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Prior Review Process
• Shared Stadium Expense Reviews
• Annual Onsite Review of Shared Stadium Expenses
• 1 to 2 Days Process with Onsite Sample Selection and Review • Performed 90 Days After Fiscal Year End
• Selected Samples from All Expense Categories
• Agreed-Upon Procedures (AUP) by KPMG to Review Costs and Allocations • 100 Non-Labor Expenditures; 40 Labor Expenditures; and 50 bonus/commission payouts
Monthly Sampling Review by SCSA Staff Starting Fiscal Year 2022/23 4 4
2 12/5/2023 Item 3
Current Review Process
• Monthly Reviews of Shared Stadium Expenses and Non-NFL Events Expenses
• Selected Samples from All Expense Categories
• Real-time Access to Invoices and Transaction Details Loaded in FMS
• Downloadable Expenditure Summary
• KPMG's Agreed Upon Procedure Review of Shared Stadium Expense
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Current Review Process
Sod Analysis for FY2022-23
SCSA Share (30% Service Period Type of Service Provided JE Vendor Invoice Invoice Amount Event
Groundskeeping) / Invoice Date
COLONY LANDSCAPE
861 MAINTENANCE, INC. 339631 $ 109,880.00 $ 32,964.00 8/1/2022 Red Hot Chili Peppers Concert Field Removal/Sod Prep 874 WEST COAST TURF NVO3662: 193,485.60 58,045.68 8/5/2022 Red Hot Chili Peppers Concert Sod Installation 875 WEST COAST TURF INV036625 42,996.80 12,899.04 8/5/2022 Red Hot Chili Peppers Concert Sod Installation 876 WEST COAST TURF INV036851 54,325.60 16,297.68 8/6/2022 Red Hot Chili Peppers Concert Sod Installation 400,688.00 120,206.40
COLONY LANDSCAPE 10/11/22-
1604 MAINTENANCE, INC. 339994 110,900.00 33,270.00 10/12/2022 Elton John Concerts Field Removal/Sod Prep 1524 WEST COAST TURF INV049023 207,988.70 62,396.61 10/12/2022 Elton John Concerts Sod Installation 1525 WEST COAST TURF INVO49668 85,993.60 25,798.08 10/13/2022 Elton John Concerts Sod Installation 404,882.30 121,464.69
COLONY LANDSCAPE
1767 MAINTENANCE, INC 340244 88,440.00 26,532.00 12/14/2022 Late NFL Season Field Removal/Sod Prep INV058845
1943 WEST COAST TURF 215,207.36 64,562.21 12/15/2022 Late NFL Season Sod Installation 303,647.36 91,094.21
Total: 3 1,109,217.66 $ 332,765.30
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3 12/5/2023 Item 3
Summary
• Non-NFL Events Costs
• Some Prior Sod Costs Charged to Non-NFL Events
• Grass Removal and Replacement / Field Paint Costs
• Shared Stadium Expenses
• SCSA Records indicate Sod Costs in Shared Stadium
Expenses starting in Fiscal Year 2022/23 due to FMS
7 Santa Clara Stadium
Authority
Action on Stadium Manager's Request to Execute
Agreement with Colony Landscape and
Maintenance, Inc. for Sod Removal and Related
Services at Levi's Stadium
Item #3
December 5, 2023
SCSA
SANTA CLARA STADIUM AUTHORITY
8 4
December 5, 2023 Item #3-ManCo
Grass Replacement at Levi's® Stadium
December 5, 2023
1 Grass Overview & Management
Levis
Concert Process & Grass Replacement
STADIUM Lease Language & Replacement History
Consent Item
POST MEETING MATERIAL
1 December 5, 2023 Item #7 - ManCo
Grass Overview & Management
LeVI'S
Concert Process & Grass Replacement
STADIUM Lease Language & Replacement History
Consent Item
3 Bermuda Grass
• Levi's® Stadium uses Bermuda grass, which is the standard choice for the majority of NFL stadiums with grass.
• During cooler months, we overseed the Bermuda grass with Rye grass to boost recovery.
• Why Bermuda grass?
• Lateral growth structure increases grass strength and provides optimal footing.
• When grown on a plastic sheet, it creates a root-bound effect that boosts consistency in harvesting the grass, and increases tensile strength. This helps protect the grass from wear and tear, contributing to the longevity and health of the grass
Sod on a plastic roll
Bermuda grass lateral growth
LevIs imgoe sources: infemal Stan Picture; httos notur com wr Upioads/2021/02/5cre4n-Shot-2021-02-10-at-11.00.05-AM-1024x606.png 4 STADIUM
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December 5, 2023 Item #7 - ManCo
Natural Factors Impacting Grass
Health
• Sunlight - Shading from the stadium structure limits the amount of sunlight that reaches the grass each day.
• Time of Year - August through October provides the
best sunlight and temperatures for grass recovery fror
game to game. From November to January, daylight
hours, sun exposure, and temperatures limit recovery
potential.
• Rain - In extreme examples, heavy rain during games
may accelerate wear and tear on the field.
• Regular Use - 82% of football games are played on
13% of the field (the center of the field or "the gut).
Athletes in excess of 320lbs. leveraging themselves
against each other repeatedly in the same area of field creates wear over time.
LovIs/
5 STADIUM
5 Levi's® Stadium Field Specs
• The entire surface within the stadium bowl is around 106,000 sq. ft. • In 2015, we converted the perimeter to artificial turf. The area is about 24,000 sq. ft, and is highly trafficked. The artificial turf has enabled us to use the area for events which drive revenue, and saves money in maintenance costs.
• There is approximately 82,000 sq. ft. of natural grass.
Levis image sources: https://www.49ers.com/s d-at-levi-s-stadium-12885087#a6000336-87dc-4ebf-ab7b-76da276988/6
STADIUM
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December 5, 2023 Item #7 - ManCo
Grass Overview & Management
LeVI'S
Concert Process & Grass Replacement
STADIUM Lease Language & Replacement History
Consent Item
7 Concert Process
Prior to a concert, Levi's® Stadium installs temporary flooring For concerts, grass is often covered for 7-8 days, during which to allow cranes, forklifts, and heavy equipment to operate on time it receives no light and cannot grow. After flooring is the field. This protects the stadium's grass infrastructure removed, the grass is weak, yellow, and decomposing. This usually necessitates replacing the field.
protect ire graion ased drainage systems, but does not
Flooring protecting stadium grass infrastructure Stadium grass after the flooring was removed following the Elton John concert. Grass is destroyed: flooring marks are clearly visible, grass is yellowing, weak and dying.
Levis
STADIUM
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December 5, 2023 Item #7 - ManCo
Decision Process for Replacing Grass
Recovery Time - The concert schedule often overlaps with soccer events and NFL football, making it impossible for the existing grass to fully recover before the next event. In 2023 alone there were 2 instances in which we only had 5 days between hosting a concert and a football game. Our ability to manage these tight turnaround times by resodding enables us to book more events during the summer months.
• Field Testing - We use specialized devices to inform all decisions surrounding the replacement of the field. A shear vane is a tool that measures "shear strength," i.e. how easily the grass divots. Based on historical precedent, we know that when values drop below a certain threshold, the grass needs replacing.
• Section Prioritization - Given the costs and time involved with grass replacement, we endeavor to replace the sections of field that are unusable for further events, and preserve any remaining healthy sections of the field.
Levis/ image sources: https://www.49ers.com/ohotes/42ers-install-grass-/feld.atlevis-stesSum-12885087#a50dd336-87ds-4ebf-ab7b-76da2769B846
STADIUM
Rare Option - Regrowing Grass
• Levi's® Stadium is the only stadium in recent history to regrow an entire field during an NFL season. • For The Weeknd concert in 2022, the field had to be covered to enable one of the largest productions in Levis history.
The field was covered for 8 days, and production used 4 cranes alongside 80 semi truck movements. • Several rare factors combined to allow a complete regrowth of the field - • Extended time period pre-concert to prep the field, including fraze mowing to remove the upper layer of soil, heavy sand topdressing to even the surface and dissipate water, etc. (6 days) • Optimal growing conditions and weather including daily temperatures in the 90s and full sunlight exposure • An abnormally long window of time between the concert and the following event (20 days) • Smart application and strategies for aeration, topdressing of sand, etc. • Even in this perfect scenario, the process took every available day and thus is almost never a viable option because we typically only have 7-14 days between the load-out for a concert and the load-in for the subsequent event. • Regrowing the field rather than installing sod was a savings of approximately $400K.
Levis/ 10
STADIUM
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December 5, 2023 Item #7 - ManCo
Rare Replacement Option -
Regrow Grass, Cont'd
Grass regrowth 8 days after The Weeknd concert
rass after The Weeknd concert, right afte Grass regrowth 18 days after The Weekend ooring was removed concer
Levis
STADIUM 11
11 Traditional Replacement Option -
Sod Installation
Sod Farm - In order to supply the quality and quantity of grass required, Levi's® Stadium contracts with West Coast Turf, an industry leading sod farm based in CA. Our experts visit the farm every 1-2 weeks to ensure sod quality and readiness.
Sod installation in process All of our field grass is grown in California at the West Coast Tur facility
STADIUM 12
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December 5, 2023 Item #7 - ManCo
Experience a Sod Replacement
Levis/
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SCSA Revenues Enabled by Sod
Replacement
• Levi's® Stadium was always built to be a multi-use sports and entertainment venue. Installing sod allows us to book more events, which benefit the SCSA.
• This year alone, two concerts generating millions in revenue for the SCSA were made possible by full field replacements. Both were extremely tight turnarounds ahead of NFL games and necessitated full field replacements. • Karol G's Mañana Será Bonito Tour - We hosted Karol G on August 14th, and then our first preseason game just 5 days later on Ed Sheeran's Mathematics Tour - We hosted Ed Sheeran on September 16th, and then hosted our home opener only 5 days later on Thursday, September 21st against the New York Giants.
LEVTS made sources: hens:/magazine com/reviews/ed-sheeran-20230916/: httos:/himagazine.com/reviews/karol-c-20230814 14 STADIUM
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December 5, 2023 Item #7 - ManCo
Grass Overview & Management
LeVIS Concert Process & Grass Replacement
STADIUM Lease Language & Replacement History
Consent Item
15 Lease Language Regarding Sod
Replacement
• The lease clearly defines sod replacement as a part of "Groundskeeping Services," and dictates how costs are allocated based on the type of event following a replacement. • Stadium Lease, Exhibit A - Relevant Definitions
• "Groundskeeping Services" means all services necessary to maintain the Playing Field in the condition required for the playing of NFL Games, including (a) readying the Playing Field each year for the upcoming NFL Season and regular maintenance of the Playing Field during the NFL Season, including watering, mowing, seeding, fertilizing and resodding; (b) preparing the surface of and marking lines on the Playing Field (including side lines and end zone markings and mid-field and end zone decorations) and installing in proper position and removing field equipment and the like for each NFL Game; (c) leasing or otherwise obtaining special equipment and supplies including field covers, including a removable tarpaulin with related equipment and systems, for use in connection with preparing or maintaining the surface of the Playing Field; (d) preparation, conversion or restoration of the surface of the Playing Field for an NFL Game following any Stadium Event; (e) repairing any damage to or destruction of the surface of the Playing Field; and (f) providing, repairing, maintaining and replacing all lawnmowing equipment, material handling equipment and other similar equipment necessary or advisable for the proper operation or maintenance of the Playing Field.
Levis
16 STADIUM
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December 5, 2023 Item #7 - ManCo
Lease Language Regarding Sod
Replacement, Cont'd
• The Stadium Lease allocates the cost of Groundskeeping Services - 70% to the 49ers and 30% to the Stadium Authority.
• Section 8.3.1 of the Stadium Lease
• Proportionate Shares. For each Lease Year, as part of the Rent payable under this Lease, Tenant will reimburse the Stadium the Stadium Authority shall pay the Stadium Authority Insurance Share (as defined below) applicable to the particular Lease Year, and Tenant shall pay the remaining portion of Stadium Insurance Expenses applicable to such Lease Year; (b) with respect to Groundskeeping Services, Tenant's Proportionate Share shall equal seventy percent (70%) and the Levis 17
STADIUM
17 Sod Replacement Trends
• Every stadium in the NFL that is multi-use
and has grass, resods their fields after Summer/Fall 2023 Field Replacement Schedule concerts as well during later months of the
football season.
CONCACAF Taylor Swift Beyoncé
Gold Cup 7/28 - 7/29 8/30 49ers vs. Giants
• The frequency of resodding is completely 7/2 49ers vs. Broncos 9/21 dependent on the concert schedule. We 8/19
typically re-sod the field 3+ times/year to
Existing field w Field Field
allow us to host the most events possible. stalled Dec 20 Replacement Replacement • Typically there is a concert in late
spring that necessitates a field
replacement before we can host
soccer events. In the late Quakes vs LAFC Barcelona vs. 49ers vs. Chargers Juventus (canc.) Karol G 8/25
summer/early fall, there are often Ed Sheeran
7/22 8/14
several concerts interspersed with 9/16
preseason NFL games.
Levis/ 18
STADIUM
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December 5, 2023 Item #7 - ManCo
Groundskeeping - Outside Services
SCSA Budget vs. Actual
Board Actual SCSA Savings for the
Fiscal Year Approved • Field replacement costs are included in the SCSA's Cost SCSA annual operating budget approved by the Board Budget
2020-21 $265,488 $96,305* $169,183 • The budget category is "Groundskeeping - Outside Services"
2021-22 $168,126 $149,409 $18,717
• This table recaps the budget and actual costs for
2022-23 $357,426 $333,020 $24,406 that budget category. 2023-24 $514,190 $282,176** N/A • Actual costs have come in under budget each year.
Totals $1,305,230 $860,909 $212,306
* Due to COVID in 2020, stadium activity was limited. But through diligent maintenance ManCo kept a single field alive through the entire season. ** FY23/24 is in progress. This reflects actual spending year to date through October.
Levis 19
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19 Groundskeeping - Outside Services
Vendor Detail & Allocation
The majority of this budget category (98% is spent with two vendors: West Coast Turf grows and installs the sod, and Colony Landscaping handles field removal and leveling. Here are the actual costs and the allocations for those two vendors:
Fiscal Year West Cost Lacreating Total Cost SCSA Cost StadCo Cost SCSA % StadCo % 2020-21 1 $210,560 $93,252 $303,812 $91,144 $212,668 30% 70% 2021-22 1.5 $335,214 $134,896 $470,111 $136,557 $333,553 29% 71% 2022-23 $817,294 $396,140 $1,213,434 $332,765 $880,669 27%** 73%** 2023-24 2 $624,881 $304,214 $929,095 $277,464 $651,631 30% 70% Totals 7.5 $1,987,949 $928,502 $2,916,452 $837,930 $2,078,521 N/A NIA * FY 23/24 actual costs are year to date. We expect the full year actual cost to be less than the SCSA Board approved budget. **In 2022, sand leveling work during a field replacement was charged 100% to StadCo.
Levis
20 STADIUM
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December 5, 2023 Item #7 - ManCo
Grass Overview & Management
LevI's Concert Process & Grass Replacement
STADIUM Lease Language & Replacement History
Consent Item
21 Action on Stadium Manager's Request to Execute
Agreement with Colony Landscape and Maintenance, Inc.
• Colony Landscape and Maintenance, Inc. handles field removal and partial field replacement services.
Services they perform include:
• Prepping the field for sod removal (for example, items like irrigation heads must be uninstalled before removal) • Ripping up current grass to a precise depth and releveling of the field • Transporting old sod away from the facility
• NOTE - They do not handle installation or sod growing The contract for SCSA approval would execute an agreement for a three-year period from November 15, 2023 to November 16, 2026 in an amount not to exceed $600,000 annually for the first and second contract year, and $620,000 for the third contract year, for a total not to exceed $1,820,000 over the three year period. It would also authorize the Stadium Manager to exercise the option to extend the agreement with the same basic terms and conditions for two additional one-year periods, subject to budget appropriations. • The Stadium Authority's portion of the contract payment would be up to $180,000 annually for each of the first and second contract years, and up to $186,000 for the third contract year.
The Stadium Authority Board approved the FY23/24 budget, which includes this line item.
LeVIs
STADIUM 22
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December 5, 2023 Item #7 - ManCo
More Info on Colony Landscape & Maintenance, Inc.
• Solicitation Process - Stadium Manager published an RFP for sod replacement vendors in September 2023 using our Procurement portal. The RFP was viewed by 5 prospective respondents, but only one proposal was received - from Colony Landscape & Maintenance, Inc.
• Sod removal for sport fields is a specialized service with a limited number of qualified vendors in this market area, so it is not surprising that there was only one proposal. • Qualifications -
• Colony performs services on several sports fields in the Bay Area including the San Jose Earthquakes, and the San Francisco Giants.
• Colony has performed similar services at Levi's Stadium since 2014. • Context - Colony's price per square foot for this new contract is approximately 6% higher than the pricing for the preceding year, which is reasonable after accounting for inflation.
Levis 23
STADIUM
23 Thank You!
STADIUM
24 12