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Stadium Manager's Recommendation Memo

City Council and Authorities Concurrent
March 24, 2026

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Stadium Manager's Recommendation Memo
Meeting
March 24, 2026
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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: March 19, 2026

To: Executive Director
Santa Clara Stadium Authorit
y

From: Procurement Department
Fort
y Niners Stadium Management Company LLC

Subject: Recommendation for Approval - Everon, LLC (Everon) Contract Amendment

Recommendation:

1. Approve and authorize the Stadium Manager to execute an Amendment No. 3 to the Agreement with Everon (Agreement) for fire sprinkler testing, inspection, and maintenance services at Levi’s Stadium to increase the maximum compensation by $94,000 to cover services from April 1, 2026 to March 31, 2027.

2. Authorize the Executive Director to approve future amendments to the Agreement to exercise the final one-year option for the fifth contract year and increase the not-to- exceed amount by $98,700 to cover services from April 1, 2027 to March 31, 2028 and increase the compensation and fee schedule to reflect rate increases not to exceed 5% over the prior year upon providing reasonable justification of rate increases, all subject to the same basic terms and conditions and budget appropriations.

3. Authorize the Executive Director to approve future amendment to the Agreement, under the same basic terms and conditions, for a period not to exceed six months beyond the fifth contract year through September 30, 2028 and increase the not-to-exceed amount by $49,862 to cover up to six months of services and increase the compensation and fee schedule to reflect rate increases not to exceed 5% over the prior year upon providing reasonable justification of rate increases, provided the Stadium Manager is engaged in an active competitive solicitation process and subject to budget appropriations. This extension is intended to support the transition to a recommended contractor and maintain continuity of business.

4. The total not-to-exceed maximum compensation for the Agreement, inclusive of all contract years and the six-month extension period, shall not exceed $494,562.

Background:

On March 21, 2023 the SCSA Board approved Stadium Manager’s request to establish a three- year agreement with Everon with an option to renew for two one-year periods. Everon performs professional fire sprinkler testing, inspection, and maintenance services. 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 life of the contract. The SCSA subsequently amended and approved the agreement on November 18, 2025, to a total not-to-exceed amount of $252,000.

Stadium Manager has a continued need for comprehensive fire sprinkler testing, inspection, and maintenance services to support the day-to-day operations and maintenance of Levi’s Stadium.

Regular testing of the fire sprinkler system is essential for the stadium's safe operation. The vendor performs routine inspections in accordance with the National Fire Protection Association (NFPA) standards, conducts corrective maintenance when issues are identified, and provides on- site response and emergency services as needed.

To ensure the Stadium remains fully operational, Stadium Manager requires flexibility to manage vendor transitions effectively. In the event that a new provider is selected through a competitive solicitation process at the end of the fifth contract year, an extension of up to six months may be required. This transitional period allows for the seamless handover of fire sprinkler testing, inspection, and maintenance services and the mobilization of a new contractor without a lapse in essential services.

Fiscal Impact:

The cost for this service is covered in the proposed FY26/27 SCSA Budget, Engineering Department, as a shared expense. Stadium Authority is responsible for 50% of the Shared Expenses portion of the Agreement cost.

Year 5 and the as-needed 6-month extension each include a maximum 5% increase year over year in the compensation and fee schedule. This percentage is based on the potential rate increases exceeding the prior year fees given the overall lack of market certainty due to current economic and political factors.

The six-month extension period amount of $49,862 is included to provide coverage during an active competitive solicitation process if necessary. This is calculated based on the Optional Year 5 NTE with an additional 5% increase. This brings the total not-to-exceed maximum compensation to $494,562, inclusive of all contract years and the six-month extension period.

Description Combine NTE
Initial Three-Year Term (4/1/23-3/31/26) $252,000
Optional Year 4 (4/1/26-3/31/27) $94,000
Optional Year 5 (4/1/27-3/31/28) $98,700
6-Month As-Needed Extension Period (4/1/28-9/30/28) $49,862 Total Not-to-Exceed Maximum Compensation $494,562

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