City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00896 4/29/2025 Item 21.
Agreement: First Amendment of Administrative Services Agreement #2024-0876 with Housing Authority of the City of Sacramento for Property Management Services File ID: 2025-00896
Location: 827 K Street, District 4
Recommendation: Pass a Motion: 1) authorizing the Interim City Manager or designee to execute the attached First Amendment of Administrative Services Agreement with the Housing Authority of the City of Sacramento for property management services at the City-owned real property located at 827 K Street.
Contact: Steve Ward, Real Property Agent, (916) 808-1081, [email protected]; Richard Sanders, Facilities and Real Property Superintendent, (916) 808-7034, [email protected]; James Christensen, Facilities Manager, (916) 808-5863, [email protected]; Department of Public Works Presenter: None
Attachments:
1-Description/Analysis
2-First Amendment of Administrative Services Agreement
Additional Description/Analysis
Issue Detail: The City owned property located at 827 K Street (the “Property”) is a three-story building containing approximately 73,098 gross square feet located in the downtown corridor. The building consists of both retail and office space, with one retail tenant and one office tenant currently.
To ensure consistent professional management of the Property, staff is recommending that the City enter into a First Amendment of Administrative Services Agreement with the Housing Authority of the City of Sacramento (HACS) whereby HACS will continue to manage all aspects of the Property through January 31, 2026.
Policy Considerations: The recommendation in this report is in accordance with City Code section
3.04.020, which requires City Council approval of real property agreements involving expenditures of $250,000 or more.
File ID: 2025-00896 4/29/2025 Item 21.
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): It has been determined that the proposed activity of entering into an agreement with the Housing Authority to provide property management services is not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(2 and 4). The activity described in this report is continuing administrative or activity and government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The proposed activity is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The Property requires daily property management services to ensure that the terms of the lease agreements with the existing tenants are followed and the building is properly maintained. HACS has experience in managing multi-tenant properties and will also utilize the services of an on-call property management firm to manage all aspects and operations of the Property. HACS will be responsible for all services necessary to properly manage the Property, including:
· Collection of rents.
· Manage leases and tenant relations.
· Management, coordination, and payment of the Property’s current service providers and vendors.
· Primary contact for all emergency calls.
· Regular maintenance, including testing of building systems. · Budgeting and reporting.
· Record keeping.
Financial Considerations: Estimated annual rent revenue from existing tenants during calendar year 2025 is projected to be $354,000. Expenses for the same period are estimated to be approximately $343,000. Rent revenue is sufficient to cover expenses during the term of the Agreement. No General Fund proceeds are allocated to this project.
Local Business Enterprise (LBE): Not applicable.
FIRST AMENDMENT OF ADMINISTRATIVE SERVICES AGREEMENT THIS FIRST AMENDMENT OF ADMINISTRATIVE SERVICES AGREEMENT (“First Amendment”) is made as of _________________, 2025, by and between the CITY OF SACRAMENTO, a municipal corporation (“CITY”), and HOUSING AUTHORITY OF THE CITY OF SACRAMENTO, a body corporate and politic (“HACS”), which are also referred to herein collectively as “Parties” or singularly as “Party”, who agree as follows: Background A. Pursuant to City Agreement 2024-0876 (the “Agreement”), HACS provides to City the property management services at 827 K Street, Sacramento, California as described in Exhibit A to the Agreement through a retained Property Manager. B. The Initial Term of the Agreement expired on January 31, 2025. Pursuant to Section 2 of Exhibit A, the Parties desire to extend the term of the Agreement through January 31, 2026, unless terminated sooner by either Party.Based on the foregoing background, CITY and HACS agree as follows: 1.Term. The Parties mutually agree to extend the term of the Agreement through January 31, 2026, unless terminated sooner by either Party. 2.Budget and Payment. The Parties approve the revised budget to provide services, as more particularly described in Exhibit B (the “Approved Budget”). 3.Entire Agreement. This First Amendment contains the entire agreement between CITY and HACS with respect to the matters set forth in this First Amendment and supersedes all prior understandings or agreements between CITY and HACS with respect to these matters. Except as specifically amended or modified herein, each and every term, covenant and condition of the Agreement and First Amendment remains in full force and effect.4.Authority.The persons signing this First Amendment represent and warrant that they are fully authorized to sign this First Amendment on behalf of their entity and to bind their entity to the performance of its obligations hereunder.[SIGNATURE PAGE FOLLOWS]
Executed as of the day and year first above stated.CITY OF SACRAMENTO HOUSING AUTHORITY OF THE CITY OF A Municipal CorporationSACRAMENTOA Body Corporate and PoliticBy: ___________________________ By: Name: Ryan Moore Name: La Shelle DozierTitle: Assistant City ManagerFor: Leyne Milstein, Interim City Manager Title: Executive DirectorAPPROVED AS TO FORM: APPROVED AS TO FORMBy: ____________________________ By:Deputy City Attorney General CounselATTEST:By: ____________________________Assistant City Clerk
Exhibit BAnnualized Budget (Updated for Calendar Year 2025) CATEGORY ANNUAL TOTAL NOTESExpensesUtilities$103,000Maintenance & Operations$138,000Property Management$42,000HACS Administration$36,000NTE for actual hours billed at $93.75/hr.Contingency$24,000Total $343,000RevenueRent Revenue$354,000This assumes lease term extensions