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Stadium Manager’s Recommendation to Amend Agreement Memo

City Council and Authorities Concurrent
June 24, 2025

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Stadium Manager’s Recommendation to Amend Agreement Memo
Meeting
June 24, 2025
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City Council and Authorities Concurrent
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Text extracted from the city's file for reading and search. Open the original on santaclara.legistar1.com. That file is the official record.

Date:

May 19, 2025
To: Jovan Grogan
Executive Director
Santa Clara Stadium Authority
From: Francine Melendez Hughes
Executive Vice President and General Manager
Forty Niners Stadium Management Company LLC
Subject: Recommendation to Amend Agreement with Bear Electrical Solutions, LLC. for On-Call Electrical Maintenance and Repair Services at Levi’s Stadium for year 5

Recommendation
Recommend approval for Stadium Manager to execute the fourth amendment to the Agreement with Bear Electrical Solutions, Inc., now operating as Bear Electrical Solutions, LLC, for on-call electrical maintenance and repair services at Levi’s Stadium to extend the Term of the Agreement for a fifth year from May 5, 2025, to May 4, 2026. The total compensation paid to Bear Electrical Solutions, LLC, for the contract year shall not exceed $250,000. Total compensation for the five- year Term shall not exceed $2,020,000.

Forty Niners Stadium Management Company LLC (Stadium Manager) provides management services for the Stadium on a continual, year-round basis, including overseeing the day-to-day operations and maintenance of the Stadium. The Stadium is a 1.8 million square foot facility completed in 2014. It utilizes complex electrical components matching the size and age of the facility. Stadium Manager determined that having a list of qualified, experienced bench of contractors to provide electrical and repair services at the Stadium on an on-call, “as needed,” basis was necessary to provide the required management services. Therefore, it was determined that it would be in Stadium Manager’s best interest to solicit proposals from contractors capable of handling a wide range of electrical repairs and establish term contracts.

Pursuant to a formal solicitation process, on April 20, 2021, Stadium Manager recommended and received approval from the Santa Clara Stadium Authority (SCSA) Board to establish agreements with Bear Electrical Solutions, Inc., now operating as Bear Electrical Solutions, LLC, and Cupertino Electric, LLC, for on-call electrical maintenance and repair services at Levi’s Stadium for a three-year period with an option to extend the agreements for two additional one-year periods.

The amount of each agreement was not to exceed $250,000 per contract year without prior approval from the SCSA. Total compensation was not to exceed $750,000 under each agreement.

Stadium Manager executed an Agreement with Bear Electrical Solutions, LLC for a three-year period beginning May 5, 2021 and ending May 4, 2024 with an option to extend the term for two additional one year periods, and executed an Agreement with Cupertino Electric, Inc. for a three- Docusign Envelope ID: 3CE3CD16-4FD7-4558-B34D-CA5A25D05DC8

year period beginning May 1, 2021 through April 30, 2024 with an option to extend the term for two additional one year periods.

During the term of the Agreement, Stadium Manager recommended and received approval from the SCSA Board to issue amendments to augment the compensation to Bear Electrical Solutions, LLC, to complete two SCSA Capital Expenditure projects. The total not to exceed amount of the Agreement with Bear Electrical Solutions, Inc. was increased from $750,000 to $1,420,000 for the three-year period. Similarly, the Agreement with Cupertino Electric, Inc. was amended to increase the maximum compensation from $750,000 to $1,264,000 to complete a SCSA Capital Expenditure project pursuant to approval from the SCSA Board.

Stadium Manager recommended and received approval from the SCSA Board to extend the Agreement with Bear Electrical Solutions, LLC, for a fourth year beginning May 5, 2024 with a not to exceed compensation amount of Three Hundred and Fifty Thousand dollars ($350,000) for the contract year. Bear Electrical Solutions, LLC, requested a rate increase of approximately 3.0 percent which is in line with CPI increase for this region. Because Bear Electrical Solutions, LLC was to be the sole provider of on-call electrical services, Stadium Manager requested an increase in total compensation for the year to compensate for the reduction in service providers. Taking into consideration the maximum compensation of $350,000 for year four of the Agreement, the aggregate compensation paid to Bear Solutions, LLC, at the conclusion of year four of the Agreement was $1,770,000.

Stadium Manager has a continued need for on-call electrical maintenance and repair services. To provide a consistent and safe operating environment for Non-NFL and NFL events, these services include repairing power connections for equipment, replacing circuit breakers, troubleshooting electrical malfunctions, and testing and repairing various electrical systems. This vendor also provides similar services on the low voltage systems at the stadium, such as device controls and communications.

Bear Electrical Solutions, LLC remains the sole on-call provider for electrical maintenance and repair services. Therefore, Stadium Manager recommends and seeks SCSA approval to execute an Amendment to extend the Agreement with Bear Electrical Solutions, LLC for on-call electrical maintenance and repair services for a fifth year beginning on May 5, 2025 and ending on May 4, 2026, with a not to exceed compensation amount of Two Hundred and Fifty Thousand Dollar ($250,000.) Bear Electrical Solutions, LLC requested an hourly rate hike of approximately 3% which is in line with the CPI for the region. Taking into consideration the addition of $250,000 compensation for year five of the Agreement, the total compensation paid to Bear Electrical Solutions, Inc. would be $2,020,000.

Stadium Manager intends to issue a formal solicitation prior to the expiration of this contract to seek and maintain a bench of qualified firms to support our needs for on-call electrical services.

Docusign Envelope ID: 3CE3CD16-4FD7-4558-B34D-CA5A25D05DC8

Fiscal Impact
The cost for this service is included in the FY25/26 SCSA Budget, Engineering Department budget, as a shared expense.

The following have been attached as supporting documentation:

1. SCSA Board Agenda for April 20, 2021
(Recommendation for Award Memo from Stadium Manager)

2. Executed agreement with Bear Electrical Solutions, LLC

3. Proposed amendment with Bear Electrical Solutions, LLC to execute year five of the agreement with an NTE $250,000

Submitted By: _____________________________ Date: _____________ Francine Melendez Hughes, Executive Vice President and General Manager

Docusign Envelope ID: 3CE3CD16-4FD7-4558-B34D-CA5A25D05DC8 5/19/2025

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