City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01936 12/10/2024 Consent Item 17.
Fiscal Year 2025 - Fiscal Year 2027 Supplemental Employment Agreement [Published for 10- day Review on 11/27/2024]
File ID: 2024-01936
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee to execute a Supplemental Employment Agreement for Fiscal Year (FY) 2025 with Sacramento Downtown Arena, LLC in the amount of $2,000,000 and 2) allow City Manager or the City Manager’s designee to execute annual contracts in an amount not to exceed $7,500,000 for FY2025 - FY2027.
Contact: Brent Kaneyuki, Police Captain, Metro Division, (916)808-0700, [email protected] , Police Department
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Agreement- Sacramento Downtown Arena LLC
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.
For FY 2025, SPD has identified that the agreement with Sacramento Downtown Arena, LLC will likely exceed $250,000. SPD is requesting that the City Manager, or the City Manager’s designee, execute annual Supplemental Employment Agreements for Fiscal Year (FY) 2025 through Fiscal Year 2027 with Sacramento Downtown Arena, LLC to receive payment in an amount not to exceed $7,500,000.
File ID: 2024-01936 12/10/2024 Consent Item 17.
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.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on November 27, 2024, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations: None.
Sustainability: None.
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 maintained reimbursement Officer rate of $100 per hour and Sergeant rate of $123 per hour offsets the salary and benefit costs of sworn staff hours billed under the program. Hourly rates will go up on an annual basis and execution of annual contracts will be
File ID: 2024-01936 12/10/2024 Consent Item 17.
processed to memorialize the rate increases.
Local Business Enterprise (LBE): Not applicable
RESOULTION NO.
Adopted by the Sacramento City Council
[DATE]
Fiscal Year 2025 – Fiscal Year 2027 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 $100 per hour and Sergeant rate of $123 per hour.
B. The hourly reimbursement Officer rate of $100 per hour and Sergeant rate of $123 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. Hourly rates are revised annually based on the fiscal year’s average salaries for officers and sergeants.
The Department will monitor supplemental employment revenue budget and actuals and will make any necessary adjustments during the midyear process.
C. The current agreement for Fiscal Year 2025 will be executed for $2,000,000 with Sacramento Downtown Arena, LLC. Fiscal Years 2026 and 2027 will have separate agreements, for a total not to exceed amount of $7,500,000 for all three years.
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 annual Supplemental Employment Agreements for Fiscal Year (FY) 2025 through FY 2027 with Sacramento Downtown Arena, LLC for a total not to exceed amount of $7,500,000.
Section 2. The City Manager, or the City Manager’s designee is authorized to increase the Supplemental Employment Officer rate from $90 per hour to $100 per hour and Supplemental Employment Sergeant rate from $114 per hour to $123 per hour for FY25.
Li:•,/
SACRAMEf'--ITO
Office of the City Clerk
CONTRACT
ROUTING SHEET
Contract Cover/Routing Form: Must Accompany ALL Contracts; however, It Is NOT part of the contract.
General Information (Required)
Original Contract# (supplements onlyt ___ SupplemenVAddendum #: ______ _ Assessor's Parcel Number(s):_-:------------------------ Contract Effective Date: 07/01/2024 Contract Expiration Date (if applicabla):06/30/2025 $ Amount (Not to Exceed): $2,000,000.00 Adjusted$ Amount(+/-): ______ _Other Party: Sacramento Downtown Arena LLC (Golden 1 Center) Project Title: Supplemental Employment
Project#: _____________ _ Bld/RFQ/RFP #: ---'--------
City Council Approval:
QQntract Processing Contacts
if YES, Council File ID#: ___ _
Department: ..:..P..::o.:.:lic.:ce:...... ________ _
Contract Coordinator: A nna Johnson
Project Manager: _N_a_v_ne_e_l ...,.L_al ______ _
Email: [email protected]
Department Review and Routi!lll
Accounting: �� ·g· � ... , ;;;tafsmn
(Signature) (Date)
Supervisor:
(Signature) (Date)
Division Manager: ,r..,/4p�
(Signature) (Date)
Other:
(Signature) (Date)
Special Instruction/Comments (i.e. recording reguested, other agency signatures required, etc.} Recording Requested Other Party Signature Required
GAU File #24-111
-······-·········FOR CLERK & IT DJEf.lARTMF.NTS ONLY - DO NOT WRITE! BF.LOW THIS LINE•·-··-•······-· CC Rov. 12, 19.2018