Sacramento City Council
January 25, 2022

Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org

File ID: 2022-00050 January 25, 2022 Consent Item 07

Title: Fiscal Year 2022 Supplemental Employment Agreements

Location: Citywide

Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee, to: 1) execute a Supplemental Employment Agreement for Fiscal Year (FY) 2022 with Sacramento Downtown Arena, LLC to receive payment in an amount not to exceed $2 million and Raley’s to receive payment in an amount not to exceed $2 Million and 2) increase the reimbursable Supplemental Employment Officer rate from $81 per hour to $86 per hour and 3) increase the Supplemental Employment Sergeant rate from $108 per hour to $110 per hour.

Contact: Norm Leong, Police Captain, Metro Division, (916) 808-0701, [email protected]
, Police Department

Presenter: None

Attachments:
1-Description/Analysis
2-Resolution
3-Agreement – Sacramento Downtown Arena
4-Agreement – Raley’s

File ID: 2022-00050 Consent Item 07
January 25, 2022
powered by Legistar™
City of Sacramento

Description/Analysis

Issue Detail: The Sacramento Police Department (SPD) manages a Supplemental Employment program to provide contracted law enforcement services to a variety of entities (retail, restaurants, associations, entertainment, etc.). Historically, signature authority for Supplemental Employment agreements has been delegated by the Chief of Police to the Sergeant, Lieutenant, and Captain of the SPD’s Special Events Unit as most of the entities have obtained these services on an intermittent, temporary, or seasonal basis with costs averaging less than $100,000 per entity. Traditionally, such services are provided to entities and events that generate calls for law enforcement services, regardless of reimbursement. In other words, the supplemental employment program allows the City to be reimbursed for police services that the City would likely need to expand regardless.

For FY 2022, the SPD has determined the agreements with Sacramento Downtown Arena, LLC and Raley’s will likely exceed $250,000. SPD is requesting that the City Manager, or the City Manager’s designee, execute a Supplemental Employment Agreement for Fiscal Year (FY) 2022 with Sacramento Downtown Arena, LLC to receive payment in an amount not to exceed $2 Million and with Raley’s to receive payment in an amount not to exceed $2 million.

The increase in the total anticipated reimbursement to the City is due to a higher volume of requests for law enforcement services, which in turn, seems to be connected to the increased rates of crime across the City.

Policy Considerations: The recommendations contained in this report are consistent with Sacramento City Code 3.04.020 which requires City Council approval to enter into an agreement(s) worth at least $250,000.

Proposition 26 was passed by the voters on November 2, 2010, amending Article XIII C of the State constitution. According to the ballot measure, the intent of the measure is to ensure the effectiveness of Propositions 13 and 218 by providing a definition of a “tax” for state and local purposes “so that neither the Legislature nor local governments can circumvent these restrictions on increasing taxes by simply defining new or expanded taxes as ‘fees’.” Thus, under Proposition 26, a tax has been defined broadly to include any levy, charge or exaction of any kind imposed by a local government, except for seven specified categories of charges.

Moreover, the City bears the burden of proving that a fee or charge is not a tax. The hourly rates discussed above do not constitute a “tax” under section 1, subdivision (e2), in Article XIII C of the California Constitution because they are simply designed to recuperate the reasonable cost of providing police services to entities that contract with the City. The hourly rates do not recover more than 100% of the SPD’s actual cost of administering the program.

No hourly rate waivers are provided, and the SPD’s costs are allocated equally to the entities who contract with the City for police services.

File ID: 2022-00050 Consent Item 07
January 25, 2022
powered by Legistar™
City of Sacramento

Economic Impacts: None

Environmental Considerations: Not applicable

Sustainability: Not applicable

Commission/Committee Action: Not applicable

Rationale for Recommendation: The agreement with Sacramento Downtown Arena LLC fulfils a security requirement established by the National Basketball Association. Raley’s sought supplemental employment services with the City to enhance public safety in and around its facilities. The SPD considers the execution of these agreements to be in the best interest of the City because: 1) they operate in such a way that patrol resources are not impacted; 2) local businesses and other entities are able to hold safe, fun events for their patrons; and 3) they provide the City with an hourly reimbursement for Police Officer and Police Sergeant time.

Financial Considerations: The proposed reimbursement rate for a Police Officer is $86 per hour while the proposed reimbursement rate for a Police Sergeant is $110 per hour. The proposed rates offset the salary and benefits costs of sworn staff hours billed under the program. The SPD monitors Supplemental Employment program revenue budget and actuals and will make any necessary adjustments during the midyear process.

Local Business Enterprise (LBE): Not applicable

RESOULTION NO.

Adopted by the Sacramento City Council

[DATE]

Fiscal Year 2022 Supplemental Employment Agreements with Downtown Arena, LLC and Raley’s

BACKGROUND

A. The Sacramento Police Department (SPD) manages a supplemental employment program to provide law enforcement services to a variety of entities (retail, restaurants, associations, entertainment, etc.). The SPD considers the execution of agreements under this program to be in the best interests of the City of Sacramento (City) because the agreements operate in such a way that patrol resources are not impacted; local businesses and other entities are able to hold safe, fun events for their patrons; and the agreements provide the City with hourly reimbursement for Officer and Sergeant time.

B. Sacramento Downtown Arena, LLC and Raley’s have requested law enforcement services for the Fiscal Year 2022. Each contract will result in payments to the City not to exceed $2 million, per contract.

C. The hourly reimbursement Officer rate of $86 per hour and Sergeant rate of $110 per hour offsets the salary and benefits costs of sworn staff hours billed under the program and offsets some of the SPD’s administrative overhead costs. The SPD monitors supplemental employment revenue budget and actuals and will make any necessary adjustments during the midyear process.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. The City Manager, or the City Manager’s designee, is authorized to execute a Supplemental Employment Agreement for Fiscal Year (FY) 2022 with Sacramento Downtown Arena, LLC to receive payment in an amount not to exceed $2 Million and with Raley’s to receive payment in an amount not to exceed $2 million.

Section 2. The City Manager, or the City Manager’s designee is authorized to increase the reimbursable Supplemental Employment Officer rate from $81 per hour to $86 per hour.

Section 3. The City Manager, or the City Manager’s designed is authorized to increase the reimbursable Supplemental Employment Sergeant rate from $108 per hour to $110 per hour.

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