City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00968 5/20/2025 Item 18.
Entertainment Fees Amendment [Published 04/18/2025, 04/24/2025, 04/30/2025] File ID: 2025-00968
Location: Citywide
Recommendation: 1) Pass a Motion waiving Chapter 15.B.3 of the City of Sacramento Council Rules of Procedure, requiring proposed budget issues such as fee increases to be reviewed by the Budget and Audit (B&A) Committee prior to being brought before council; and 2) Conduct a public hearing and upon conclusion adopt a Resolution amending the Citywide Fees and Charges Schedule (Fee Schedule).
Contact: Dustin Hollingsworth, Assistant Director, (916) 808-5538, [email protected]; Steven Sakakihara, Administrative Officer, (916) 808-7146, [email protected]; Convention and Cultural Services Department Presenter: Dustin Hollingsworth, Assistant Director, (916) 808-5538, [email protected], Convention and Cultural Services Department Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: In 2003, the Sacramento City Council adopted an ordinance to regulate the operation of entertainment establishments for public health, safety, and welfare. The ordinance was adopted to establish regulations to protect health and public safety for the surrounding business and residential community. The entertainment permit program successfully addressed many problems, however, recent studies indicated that the introduction of an additional entertainment type would enhance the city’s nighttime, social and creative economies.
On March 26, 2024, the City Council directed staff to amend the Sacramento City Code chapter
5.108 related to Entertainment Establishments to create a new entertainment permit type. Staff from the Office of Nighttime Economy (ONE) and Convention and Cultural Services’ Entertainment Services Division (ESD) collaborated with stakeholders to amend the city code and create a new Limited Entertainment Permit (LEP).
File ID: 2025-00968 5/20/2025 Item 18.
On April 1, 2025, the City Council approved an amendment to City Code chapter 5.108. The amendment, amongst other things, allowed for the creation of the LEP and renamed some existing entertainment permits and associated fees to provide greater clarity and to reduce confusion with other existing permit types and fees.
At that time staff had not completed an assessment to determine the appropriate fees for the new LEP but advised Council that they would return in the coming weeks with a Resolution to amend the Fee Schedule. The Resolution includes fees related to Entertainment Permits as well as renaming entertainment fee types to align with the amendments to City Code chapter 5.108.
Policy Considerations: The changes to the Fee Schedule are consistent with Council’s adopted Citywide Fees and Charges Policy and support the City’s budget sustainability and fiscal responsibility goals. The fees are not a tax under Proposition 26, as they fall under Exception 3, A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.
Waiving the requirement to first bring the proposed amendments to the Fee Schedule to the B&A Committee will allow it to take effect with the recent amendments to City Code chapter 5.108, which took effect on May 2, 2025.
Economic Impacts: Not applicable.
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) [CEQA Guidelines Section 15061 (b) (3); 15378 (b) (2)].
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: The adoption of this resolution will establish fees to recover costs associated with the new LEP and will align the City’s fee and charge schedule with City Code chapter
5.108 as approved for amendment on April 1, 2025.
Financial Considerations: The fees set forth in this resolution will help offset the costs associated with the administration of the Entertainment Permitting Program.
Local Business Enterprise (LBE): Not applicable.
Attachment 2: Resolution
RESOLUTION NO. 2025-
Adopted by the Sacramento City Council
A RESOLUTION AMENDING THE CITYWIDE FEES AND CHARGES SCHEDULE TO
ESTABLISH FEES FOR THE ENTERTAINMENT PERMIT PROGRAM
BACKGROUND
A. WHEREAS, the Sacramento City Council has adopted Sacramento City Code
5.108 relating to Entertainment Establishments.
B. WHEREAS, Section 5.108.180 of the Sacramento City Code authorizes the processing of fees related to entertainment permits.
C. WHEREAS, On April 1, 2025, Sacramento City Council approved an amendment to the Sacramento City Code creating a Limited Entertainment Permit type and renaming fees within the ordinance to provide greater clarity.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City of Sacramento Fee and Charge Report, is hereby amended as set forth in Exhibit A, to establish the fees authorized by Section 5.108.180 of the Sacramento City Code.
Section 2. Exhibit A forms part of this resolution.
Table of Contents:
Exhibit A: Entertainment Permit Program Fees
EXHIBIT A
ENTERTAINMENT PERMIT PROGRAM FEES
Current Fee Name: Entertainment Permit Fee – New (2-Year) New Fee Name: General Entertainment Permit Fee – New (2-Year) Current Fee: $2,230.00
Proposed Fee: $2,230.00
Justification for Fee: Recover costs associated with the program administration and inspection costs and imposed for each new General
Entertainment Permit application.
Proposition 26: This charge is not a tax under Proposition 26, as it falls under Exception 3, a regulatory fee. The proposed fee will offset the City’s cost to administer the program.
Current Fee Name: Entertainment Permit Fee – Renewal (2-Year) New Fee Name: General Entertainment Permit Fee – Renewal (2-Year) Current Fee: $1,720.00
Proposed Fee: $1,720.00
Justification for Fee: Recover costs associated with the program administration and inspection costs and imposed for each General
Entertainment Permit renewal application.
Proposition 26: This charge is not a tax under Proposition 26, as it falls under Exception 3, a regulatory fee. The proposed fee will offset the City’s cost to administer the program.
Fee Name: Limited Entertainment Permit Fee – New (2-Year) Current Fee: $0.00
Proposed Fee: $750.00
Justification for Fee: Recover costs associated with the administration and issuance of each new Limited Entertainment Permit
application.
Proposition 26: This charge is not a tax under Proposition 26, as it falls under Exception 3, a regulatory fee. The proposed fee will offset the City’s cost to administer the program.
Fee Name: Limited Entertainment Permit Fee – Renewal (2-Year) Current Fee: $0.00
Proposed Fee: $650.00
Justification for Fee: Recover costs associated with the administration and issuance of each Limited Entertainment Permit renewal
application.
Proposition 26: This charge is not a tax under Proposition 26, as it falls under Exception 3, a regulatory fee. The proposed fee will offset the City’s cost to administer the program.
Current Fee Name: Entertainment Permit Fee - Special
New Fee Name: Temporary Entertainment Permit Fee
Current Fee: $1,820.00
Proposed Fee: $1,820.00
Justification for Fee: Recover costs associated with the program administration and inspection costs and imposed for each Temporary
Entertainment Permit application.
Proposition 26: This charge is not a tax under Proposition 26, as it falls under Exception 3, a regulatory fee. The proposed fee will offset the City’s cost to administer the program.
Current Fee Name: Re-inspection Fee
New Fee Name: Inspection Fee
Current Fee: $180.00
Proposed Fee: $180.00
Justification for Fee: Recover administrative and inspection costs related to inspecting entertainment permit establishments.
Proposition 26: This charge is not a tax under Proposition 26, as it falls under Exception 3, a regulatory fee. The proposed fee will offset the City’s cost to schedule and perform inspections.