Council approves $150,000 transfer to cover downtown security contract through June

The Quality of Life Committee approved a budget adjustment request to transfer $150,000 from the general fund into the lodging-tax fund to cover an existing downtown contract-security purchase order through June 30.

Staff said the downtown security contract has been carried primarily on lodging tax revenues but that a shortfall required a one-time general fund supplement to cover contracted guard and mobile patrol costs through the end of the fiscal month. "The extra $150,000 is needed to support the existing purchase order with for the contract security through June 30th," a staff representative said when presenting the BAR.

Council members debated the efficacy and costs of private contract security versus expanding police staffing. Interim Police Chief Valdez said the contract has provided a visible presence for downtown businesses and guests and noted the department will expand bike-unit staffing to increase patrol visibility. "We will see more of a visible presence of our bike team downtown," Valdez said, noting plans to double bike-team staffing and assign officers to downtown and other business districts.

Other council members said contract security has been a temporary "band-aid" used while departments handled staffing shortages and questioned whether the city should reallocate resources to police bike patrols or budgeted officers instead of continuing a private-security contract. Staff and the interim chief said a short-term budget action was required to avoid service interruption in June, and tourism department staff reported no available lodging-tax reserve to cover the gap.

The committee approved the $150,000 BAR on a roll-call vote (Counselor Fagali: yes; Counselor Barrett: yes; Counselor Cassett: yes; Chair Castro: yes). Councilors asked staff to return with comparative crime and deployment data so the city can plan whether to replace contract security with reallocated police positions and community policing strategies for fiscal 2027.

The item was moved, seconded and approved during the meeting.

Votes at a glance:
- Motion: Transfer $150,000 from General Fund to Lodging Tax Fund for FY2026 downtown security contract (purchase order through June 30). Outcome: approved. Recorded yes votes: Fagali, Barrett, Cassett, Chair Castro.