Santa Clara reviews draft League Event Agreement for Super Bowl 60; no action taken

City officials on Tuesday reviewed a draft League Event Agreement that would make the city of Santa Clara the lead local agency responsible for security and related services for Super Bowl 60 at Levi’s Stadium, but took no formal action.

The draft agreement, negotiated with the Bay Area Host Committee and 49ers-related entities, would require the host committee to reimburse the city for ‘‘qualified event expenses,’’ provide a 50% advance payment of then-estimated event costs (currently projected at about $6.3 million) by Dec. 25, 2025, and make STADCO (the stadium tenant) contractually responsible to cover any reimbursement shortfall if the host committee fails to pay.

Why it matters: City managers said the agreement updates the city’s approach from the Super Bowl 50 experience by building a structured invoicing and dispute-resolution process and by requiring advance funds and a private backstop. Council members repeatedly pressed staff for clearer guarantees that city general-fund expenditures for planning, training and deployment will be fully reimbursed and for details on how convention-center rent credits work.

Key terms and city safeguards - Lead public-safety role: The draft explicitly names the city as the lead law-enforcement agency for stadium security during Super Bowl activities and related events inside the stadium security perimeter. City Manager Jovan Grogan told the council the arrangement “ensures reimbursement of the city's event cost” and is consistent with the city's negotiating principles and Measure J, which limits general-fund exposure.

- Reimbursement, advance payment, backstop: The host committee would pay an advance on ‘‘actual event expenses’’ equal to 50% of the most recently updated estimate (the staff estimate presented was $6,302,912, which implies an advance roughly in the $2.5 million range). If the host committee fails to pay its obligations, the draft makes STADCO contractually responsible for any shortfall. City Attorney Glenn Guggins described the provision as a ‘‘direct obligation’’ from STADCO rather than a separate guarantee.

- Billing and disputes: Staff said invoices for planning, training and event charges will be submitted monthly. The draft contains a multistep dispute-resolution path: undisputed amounts are payable promptly; disputed amounts may be escrowed; very large disputes would trigger expedited resolution and, ultimately, binding arbitration.

- Convention center: The draft sets a facility-rent charge of $650,000 for use of the convention center, but allows a set of credits tied to on-site spending (food/beverage, audio-visual, IT). A security deposit of $320,000 would reduce the city's risk if the convention center is canceled; the host committee may recover the deposit only if negotiated spending thresholds are met (staff described a $900,000 threshold for combined food/bev/AV/IT to achieve full rent-crediting). City staff said this structure is a market approach in the convention industry where ‘‘rent is the loss leader’’ and food-and-beverage revenue drives net revenue.

Council concerns and staff responses Several council members pressed staff on the size and timing of city cash outlays, insurance, whether a letter of credit or escrow should be required, and how quickly the city could recover funds if the host committee stalled payments. Vice Mayor Kelly Cox asked for more information about the host committee’s fundraising position and about the mechanics under which advance payments would be held and accessed. City Manager Grogan and City Attorney Guggins said the advance payment is a cash transfer to the city that would be held for event expenses rather than an off‑balance credit.

Other items discussed included a special-event-zone ordinance (staff will return with a proposed draft for council consideration), equipment acquisition rules (preference for leasing and borrowing; purchases only after approval and with cost allocation rules), and provisions for youth-park use and restoration if city fields are used as part of event activities. Jihad Beechman, representing the stadium tenant side during Q&A, described STADCO’s pledged stadium revenues as the basis for its ability to backstop payments.

What’s next No action was taken Tuesday. Staff told council the draft will be brought back for potential adoption at a future meeting (staff indicated the first possible meeting for action would be Sept. 16). City staff also said they will continue negotiating insurance and specialty coverage requirements and will assemble more detail on timing and cash‑management processes for the advance payments.

Context Levi’s Stadium hosted Super Bowl 50 in 2016. City officials said lessons from that event and the more recent FIFA World Cup negotiations shaped this draft, including a stronger invoicing process, an upfront advance, and a contractual STADCO backstop.