REPORT TO COUNCIL AND STADIUM AUTHORITY BOARD
SUBJECT
Title
Action to Approve Up to Four Hours of Cancellation Pay for City Employees Related to the Cancelled July 22, 2023 Non-NFL Event at Levi’s Stadium
Report
COUNCIL PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
On July 22, 2023, a Soccer Champions Tour match between FC Barcelona and Juventus scheduled to play at Levi’s Stadium at 7:30 p.m. Citing an illness affecting several players, Barcelona cancelled the game in the morning of July 22nd. While the public soccer match was cancelled, a closed practice session was held in its place.
The timing of the announced cancellation allowed City departments to contact most staff prior to their scheduled shift. To accommodate the practice session, a handful of City employees were required to staff the event. These employees were able to post hours and have been paid. However, an unforeseen cancellation has resulted in 161 employees not receiving cancellation pay for hours they were scheduled to work on July 22.
While State law requires private employers to provide employees with four hours of pay for canceled work shifts longer than six hours, the City’s collective bargaining agreements (which do not fall under those provisions of State law) do not expressly provide for cancellation pay. This has created a situation where non-City personnel (concession workers, security staff, and contractors) received cancellation pay, but City staff did not.
Impacted and represented employees were from Units 1, 2, 4, 578, 6, 9B and 10 and included employees in the Police, Fire and Public Works Departments. There were also a significant number of employees that are as needed/unrepresented who were also impacted.
DISCUSSION
Council approval is required to provide cancellation pay to City employees as this pay is neither required by State law or under collective bargaining agreements. Staff is recommending that Council approve cancellation pay that aligns to the number of hours that State law provides for employees of private companies. If Council approves the recommended action, 161 impacted employees will be provided with up to four hours of pay at the rate that would have been paid if the event was not cancelled.
Staff is recommending this action for both alignment with State law and to recognize the unusual circumstance of this event. To date, the Stadium has not had a scheduled event cancel with less than a 24-hour notice (and in this case the cancellation occurred within an eight-hour window of reporting times).
As noted above, a few employees worked their scheduled shifts and were compensated. There were a few employees that worked less than four hours and approval of the recommended action will provide them with additional pay to bring them to a four-hour minimum.
This item addresses the July 22, 2023 event only and does not set future policy. Discussion related to language changes in the collective bargaining agreements will follow at a later date.
The 49ers Management Company (ManCo) has been coordinating with the City Attorney’s Office regarding their ongoing discussions with AEG, the event promoter, regarding financial obligations associated with the cancelled event and available insurance. Recognizing that it may be weeks or months before this matter is resolved, the recommended action allows for a pathway to pay employees and invoice these costs, both to ensure compliance with Measure J and provide equitable compensation.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The estimated total cost for the cancellation pay is $80,000 for employees in the Police, Fire and Public Works Departments. Public safety staffing costs for non-NFL events are budgeted in the City’s Non-Departmental General Fund Budget based on an assumption of events at the Stadium in a typical year. These costs are invoiced by the City to the Stadium Manager and subsequently reimbursed to the City as part of non-NFL event expenses paid for by the Stadium Authority. While a net loss for the cancelled July 22, 2023 event is anticipated and is a matter of ongoing discussions with the event promoter AEG, it will likely be offset by other profitable ticketed events that occurred throughout the year. A reporting of the actual revenue and expenses will be included in future quarterly Stadium Authority Financial Reports.
It should also be noted that based on existing stadium staffing policies and to ensure compliance with Measure J, the compensation will be distributed for actual pay rather than compensatory time.
COORDINATION
This report has been coordinated with Finance Department, Human Resources and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
That City Council approve and authorize the City Manager to provide cancellation pay for up to four hours to City employees at their respective Stadium pay rate at an amount not to exceed $80,000 for the cancelled July 22, 2023 Event at Levi’s Stadium
Staff
Reviewed by: Ruth Mizobe Shikada, City Manager’s Office
Approved by: Jōvan D. Grogan, City Manager/Executive Director