City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01695 2/6/2024 Consent Item 15.
Supplemental Employment Agreement with Sacramento Downtown Arena, LLC for Fiscal Year 2024
File ID: 2023-01695
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) 2024 with Sacramento Downtown Arena, LLC in an amount not to exceed $2 Million and 2) increase the reimbursable Supplemental Employment Officer rate from $86 per hour to $90 per hour and 3) increase the Supplemental Employment Sergeant rate from $110 per hour to $114 per hour.
Contact: Brent Kaneyuki, Police Captain, (916) 808-0700, [email protected] , Police Department
Presenter: None.
Attachments:
1-Description/Analysis
2-Resolution
3-Supplemental Employment Agreement
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, non-profits, entertainment, other City of Sacramento departments, etc.). Historically, signature authority for Supplemental Employment agreements has been delegated by the Chief of Police to the Sergeant, Lieutenant, and Captain of 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 2024, SPD has identified that the agreement with Sacramento Downtown Arena, LLC will
File ID: 2023-01695 2/6/2024 Consent Item 15.
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) 2024 with Sacramento Downtown Arena, LLC to receive payment in an amount not to exceed $2 Million.
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 that is equal to or greater than $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 below 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 SPD’s actual cost of administering the program. No hourly rate waivers are provided, and SPD’s costs are allocated equally to the entities who contract with the City for police services.
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 fulfills a security requirement established by the National Basketball Association. SPD considers this program and the execution of the agreement to be in the best interest of the City because: 1) it operates 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) it provides the City with an hourly reimbursement for Police Officer and Police Sergeant time while working these events.
Financial Considerations: The proposed reimbursement rate for a Police Officer is $90 per hour while the proposed reimbursement rate for a Police Sergeant is $114 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
File ID: 2023-01695 2/6/2024 Consent Item 15.
adjustments during the midyear process.
Local Business Enterprise (LBE): Not applicable.
RESOULTION NO.
Adopted by the Sacramento City Council
[DATE]
Fiscal Year 2024 Supplemental Employment Agreement
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, non-profits, entertainment, other City of Sacramento departments, etc.).
SPD considers the program to be in the best interests of the City because it operates in such a way that patrol resources are not adversely impacted while providing contracted law enforcement services; local businesses and other entities are able to hold safe, fun events for their patrons; and it is cost neutral with an hourly reimbursement Officer rate of $90 per hour and Sergeant rate of $114 per hour.
B. The hourly reimbursement Officer rate of $90 per hour and Sergeant rate of $114 per hour offsets the salary and benefits costs of sworn staff hours billed under the program and offsets some of the Department’s administrative overhead costs. The Department will monitor 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) 2024 with Sacramento Downtown Arena, LLC in the amount not to exceed $2 Million.
Section 2. The City Manager, or the City Manager’s designee is authorized to increase the Supplemental Employment Officer rate from $86 per hour to $90 per hour and Supplemental Employment Sergeant rate from $110 per hour to $114 per hour.