SANTA CLARA — In the latest salvo in the acrimonious relationship between the San Francisco 49ers and Santa Clara, the city says it will revoke the football team’s authority to issue contracts involving Levi’s Stadium’s operations and is threatening to cut the team’s management fee as a result.

Santa Clara’s actions stem from a dispute that arose when the team spent more than $600,000 to refinish the stadium’s floor without first obtaining city approval. The city also says the team failed to follow state prevailing wage law and may have paid workers less than required.

“I think what we have is a bigger issue. And the bigger issue is their management ability,” Mayor Lisa Gillmor said in a statement. “We are just finding in terms of getting the details that they do not have the experience to manage the stadium.”

Levi’s Stadium is owned and overseen by the Stadium Authority, a separate entity of the city, but the 49ers have a contract to manage the stadium’s day-to-day operation and events on the city’s behalf, such as concerts and non-NFL sports games.

The two parties have feuded over a number of issues since the stadium’s opening in 2014, including rent increases, a curfew for weeknight concerts and stadium revenue. The 49ers have two current lawsuits against the Stadium Authority, and the city recently accused the team of providing inconsistent and incomplete budget information. The team says its has provided financial documents to the city regularly, which are audited by an outside firm.

Asked whether Santa Clara may look for a new stadium manager, Gillmor said “not at this point,” noting the city is focused on the immediate issue of making sure the team is complying with state wage laws.

“It’s our interest that the stadium be run professionally for the taxpayers of our community and we don’t feel that’s happening right now,” Gillmor said in a phone call.

A spokesman for the 49ers, Rahul Chandhok, said the city’s action amounts to more political posturing.

“It is challenging to understand Mayor Gillmor’s finger-pointing when the documents used to procure services at the stadium were created and approved by her staff,” Chandhok said. “While the mayor’s political strategy is transparent, it remains disappointing and tired. This is not her first threat, and I imagine not her last.

Last year, stadium manager Jim Mercurio hired a contractor to polish the stadium floors, which ended up costing $643,568, running afoul of rules requiring the city to be notified of any expenditures that could exceed $100,000 and to approve any contracts of more than $250,000, according to the city. The city found out about the contract late last year when stadium management sent it invoices for the floor work.

Chandhok declined to answer questions about why the stadium manager overspent on the floor polishing contract.

The city halted the work — which still hasn’t been completed — and the team says it will eat the cost of the floor work done so far, rather than bill the city.

In letters to the 49ers, the city also raised concerns that workers for the floor polishing job weren’t paid according to state prevailing wage law. The law mandates that workers on certain contracted public works projects be paid a certain rate based on what most workers are paid for such jobs.

It’s unclear what kind of wage violations occurred, and a city spokeswoman said the city does not know how much those workers were paid. City attorney Brian Doyle also said it’s unclear whether the stadium has underpaid other workers in the past.

The city has since requested an audit of all contracts and spending by the stadium manager, which is being reviewed by a third party hired by the 49ers.

“The flooring contract brought to our attention the fact that they had no idea what they’re doing. So we realized, oh my god, there’s probably five years of work where they had no idea what they needed to do,” Doyle said.

Chandhok said the team has hired a third party to “review all past work to verify contractors’ compliance with prevailing wage requirements and correct any issues.”

The city has said the team’s solution — paying for the floor polishing and offering workers back pay — would just be a work-around to avoid state wage laws, not a real solution.

At a meeting of the city’s Stadium Authority on Tuesday, the board voted unanimously to begin the process of revoking the team’s ability to issue contracts, meaning future contract bids will be handled and reviewed by the city.

The board also asked the city attorney to look into whether it can cut the team’s $400,000 annual management fee as a result of having reduced responsibilities.

Asked whether the team is considering further legal action if the management fee is cut, Chandhok said, “cooperative business partners should be able to solve those issues together.”

Contact Thy Vo at 408-200-1055 or tvo@bayareanewsgroup.com.