Date: October 23, 2025
To: Jovan Grogan
Executive Director
Santa Clara Stadium Authorit
y
From: Procurement Department
Fort
y Niners Stadium Management Company LLC
Sub
ject: Recommendation for Award for Everon, LLC Agreement Amendment
Background:
On March 21, 2023, the SCSA Board approved Stadium Manager’s request to establish a three- year agreement with Everon, LLC (“Everon”) (previously ADT Commercial LLC) to provide fire sprinkler testing, inspection, maintenance, and related services with an option to renew for two one-year periods. The initial term of the agreement was from April 1, 2023 through March 31, 2026, with a not-to-exceed amount of $228,000 over the three-year period.
The recommendation by SCSA staff was to award the three-year agreement with the option to extend for two additional one-year periods, and to authorize the Executive Director to approve exercising the option to extend the agreement for up to two more one-year periods under the same basic terms and conditions, subject to budget appropriations.
This request seeks the SCSA’s approval of Amendment No. 2 to increase the contract amount for the third year by $24,000. This increase is requested for the following reasons: On October 10, 2025, the Stadium Manager executed Amendment No. 1, which authorized Everon to install fire sprinkler heads on an urgent basis, as mandated by the Santa Clara Fire Marshal. The total cost of Amendment No. 1 exceeded the contract not-to-exceed amount by $3,000.00, which is part of the requested $24,000.00 increase.
The remaining $21,000 is requested as an allowance to cover any additional unforeseen but necessary work that may arise during the final seven months of the contract. Regular testing of the fire sprinkler system is essential for the stadium's safe operation. The vendor performs routine inspections according to standards set by the National Fire Protection Association (NFPA), carries out corrective maintenance when issues are identified, and provides on-site response and emergency services as needed. Spending on fire sprinkler repairs has increased and now exceeds the initial projections outlined in the original RFP process. A few unexpected expenses occurred after the 5-year inspection, which was conducted at the end of the second contract year. The requested $21,000 allowance will allow us to address any of these services promptly.
The original contract value is $228,000, and the new contract value will be $252,000 upon approval of Amendment No. 2. This requested increase of $24,000 cost is covered in the FY25/26 SCSA Budget, Engineering Department budget, as a shared expense. Accordingly, there is no need for a budget amendment.
The breakdown of costs is as follows for the three-year period:
• Total not-to-exceed amount for three years accounting for proposed increase in contract amount: $252,000
o Year One – 4/1/23 through 3/31/24 - $66,000
o Year Two – 4/1/24 through 3/31/25 - $92,000
o Year Three – 4/1/25 through 3/31/26 - $94,000
The following have been attached as supporting documentation:
1. Executed agreement with ADT Commercial LLC dated April 1, 2023
2. Executed Amendment No. 1 dated October 10, 2025
3. Proposed amendment with Everon to increase the NTE by $24,000
Recommendation
1. Ratify Amendment No. 1 to the Agreement with Everon, LLC for emergency fire sprinkler heads installation.
2. Approve Amendment No. 2 to the Agreement with Everon, LLC for fire sprinkler testing, inspection, maintenance, and related services at Levi’s Stadium to increase the not-to- exceed contract amount by $24,000.
3. Authorize the Executive Director to execute Amendment No. 2 and future amendments to increase the annual not-to-exceed contract amounts for contract years four and five, if necessary, provided such increases are within approved SCSA budget appropriations.