City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01183 10/14/2025
Agreement: Sacramento History Alliance Agreement [Two-Thirds Vote Required] [Published for 10-Day Review 10/02/2025]
File ID: 2025-01183
Location: Old Sacramento Historic District, District 4
Recommendation: Pass a Motion, by a two-thirds vote: 1) finding that special circumstances make the use of the bid procedure inappropriate and it is in the best interest of the City to lease without bidding pursuant to City Code section 3.68.110(F); and 2) authorizing the Interim City Manager or designee to execute an agreement with the Sacramento History Alliance for an amount not to exceed $539,250 for an initial three year term through June 30, 2028, with four three-year extension options for a total agreement amount not to exceed $2,783,250, for the operation and management of the Sacramento History Museum and the Old Sacramento Visitors Center.
Contact: Megan Van Voorhis, Director, 916-808-5979, [email protected], Convention and Cultural Services
Presenter: None
Attachments:
1-Description/Analysis
2-Sacramento History Alliance Agreement
Description/Analysis
Issue Detail: In 2012, the City and the Historic Old Sacramento Foundation (‘HOSF”) executed City Agreement No. 2012-0997 (“Agreement”) for a five-year term with an optional five-year extension to operate, manage, and maintain the Sacramento History Museum, to promote preservation of the Old Sacramento Historic District, and to provide various history programs in Old Sacramento. The Sacramento History Museum is located on City-owned property at 101 I Street in the Old Sacramento Historic District.
The Agreement was first amended in 2014 to expand the services provided by HOSF. In 2017, at HOSF’s request, a second amendment was executed to extend the term of the Agreement through June 30, 2018, while the City and HOSF negotiated a new agreement. In 2017 HOSF amended their articles of incorporation to become the Sacramento History Alliance, Inc., (“SHA”). In 2018, the City
File ID: 2025-01183 10/14/2025
and SHA determined it would be prudent to execute a Third Amendment to extend the term of City Agreement No. 2012-0997 through June 30, 2022, for the remaining 4 years of the second 5-year term and assign all rights and obligations of the Agreement to SHA. In 2022, the City and SHA determined it would be prudent to execute a Fourth Amendment to extend the term of City Agreement No. 2012-0997 through June 30, 2023. In 2023, the City and SHA determined it would be prudent to execute a Fifth Amendment to extend the term of City Agreement No. 2012-0997 through June 30, 2024.
In 2024, the City and SHA determined it would be prudent to execute a Sixth Amendment to extend the term of City Agreement No. 2012-0997 through June 30, 2025 while they negotiated the terms of a new agreement. In addition to extending the agreement by one year, this amendment added a new section, Section 34, in which the City and SHA agreed to collaboratively engage in a strategic planning process within the term of this Agreement. The purpose of the process was to develop a new strategic operating framework for the SHA that takes into consideration the strengths, capabilities, and assets of the Sacramento History Alliance and the Center for Sacramento History (City Archives). In 2025, the City and SHA executed a Seventh Amendment to extend the term of City Agreement No. 2012-0997 through September 30, 2025, with a corresponding pro-rated distribution of funds for Fiscal Year 2025/26 of $12,500, while final terms were negotiated for a new agreement.
In 2021 the City and SHA executed Agreement 2021-0245 and to expire on June 30, 2026, for the operation and management of the Old Sacramento Visitors Center for a total agreement amount not to exceed $187,000 over the five year term. This Agreement was amended in 2025 to expire by September 30, 2025 with a corresponding pro-rated distribution of funds for Fiscal Year 2026 of $9,250, while the terms of Agreement 2021-0245 are included in this proposed new agreement.
The proposed new agreement is for a three-year term through June 30, 2028, with the option of four additional three-year terms upon the written consent of the City and SHA. This proposed agreement continues SHA’s responsibilities to operate and manage the Sacramento History Museum, as well as absorbing the terms of Agreement 2021-0245 between the City and SHA for the operation and management of the Old Sacramento Visitors Center.
The strategic planning process embarked upon by the City and SHA in 2024-2025 is incorporated in the proposed agreement through the following:
· A framework for joint collaboration between the City, the Center for Sacramento History, and SHA to include the phased pursuit of the development of a co-located facility capable of supporting expanded programming, exhibitions, archival functions, and heritage tourism - with the stated objective of elevating history as a part of the destination experience in the State Capital.
· Collaboration on funding strategies and advocacy for this development, and defined roles and responsibilities for each entity.
File ID: 2025-01183 10/14/2025
· Collaboration on enhancing the Sacramento History Museum’s interpretive focus to emphasize district-based stories and themes, incorporating diverse community perspectives that connect to the district’s development.
· The Center for Sacramento History and SHA will adopt a shared exhibition calendar for the Sacramento History Museum and engage in exhibition and supporting program planning activities for the purposes of emphasizing district-based stories and themes, incorporating diverse community perspectives that connect to the district’s development. · The Center for Sacramento History and SHA will collaboratively develop policies and procedures that clearly define roles, expectations, and processes for the production of exhibitions and programs and the use of artifacts in line with the Center for Sacramento History’s Collections Management Policy as adopted by City Council.
Policy Considerations: The proposed amendment supports the City’s 2040 General Plan Goal YPRO-4.1 to provide a diversity of arts, culture, and learning opportunities, facilities and programs for people of all ages to improve knowledge of Sacramento’s history, enhance quality of life, and enrich community culture, and policies that encourage partnerships with organizations to support cultural educational activities and programming, children’s programming, and reinvestment in City facilities.
The proposed amendment also supports Goal 2.2.3 of the Creative Edge: Arts, Culture & Creative Economy Plan, which calls for investing in the Center to increase its capacity for educational and community programming, drawing on the City’s archives and Sacramento’s community of historians.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Sectio 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 October 2, 2025, in compliance with the City Code.
Economic Impacts: According to the U.S. Cultural & Heritage Traveler Report, 78 percent of U.S. leisure travelers participate in cultural or heritage activities while traveling. These travelers spend more than the average tourist, averaging $1,480 per trip, compared to $915 for non-heritage travelers (adjusted for inflation). They’re more likely to stay longer, visit multiple sites in a trip, and return to destinations that offer layered, authentic experiences.
Environmental Considerations: The report concerns administrative activities that will not have a significant effect on the environment and is exempt from the Environmental Quality Act (CEQA) review [CEQA Guidelines Sections 15061(b)(3); 15378(b)(2)].
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
File ID: 2025-01183 10/14/2025
Rationale for Recommendation: The City and SHA have negotiated a new agreement for the operation and management of the Sacramento History Museum, Old Sacramento Visitors Center, and strategic planning for a future co-located facility aimed at elevating history in the seat of government in the 4th largest economy in the world. This agreement lays the foundation for addressing flood and fire risks, inadequate preservation environment, limited storage space, limited public space, and accessibility issues at the Center for Sacramento History. It also addresses space limitations of the Sacramento History Museum site.
City Code section 3.68.110(F) provides City Council may determine that, in the best interest of the City, special circumstances make the use of the bid procedure inappropriate for the leasing of City- owned property. Staff recommends that it is in the best interests of the City to approve the proposed agreement for three years through June 30, 2028 with the option of four additional 3-year terms due to the long-standing and successful operation of the Sacramento History Museum by SHA.
Financial Considerations: As a City-owned facility, the City has provided financial support to SHA for the operations of the Sacramento History Museum and Old Sacramento Visitors Center. Through City Agreement No. 2012-0997, the City provided $50,000 annually to SHA for support of activities with the Center for Sacramento History (City Archives) and with the option to provide additional funding annually in an amount not-to-exceed $100,000 for additional services as agreed upon with written approval by the City. In 2025, the City and SHA executed a Seventh Amendment to extend the term of City Agreement No. 2012-0997 through September 30, 2025, with a corresponding pro- rated distribution of funds for Fiscal Year 2026 of $12,500, while final terms were negotiated for a new agreement.
Through City Agreement No. 2021-0245 the City provided $37,000 annually to SHA for the management and operation of the Old Sacramento Visitors Center for a total of $187,000 over the five-year term. This Agreement was amended in 2025 to expire by September 30, 2025 with a corresponding pro-rated distribution of funds for Fiscal Year 2026 of $9,250, while the terms of Agreement 2021-0245 are included in this proposed new agreement.
Funding for the remainder of Fiscal Year (FY) 2025/26 in the proposed agreement is $165,250 as adopted in the Fiscal Year (FY) 2025/26 Convention and Cultural Services Budget for these purposes. For the remaining two years of the initial three-year term, the annual funding amount is $187,000. Funding over the initial three-year term is $539,250 and if all term extensions are exercised over the 15-year period, the total not to exceed value of the Agreement will be $2,783,250.
Like City Agreement No. 2012-0997, this new agreement also provides that SHA may receive financial support, if available, as determined through the City’s annual budget process. Funding in the amount of $143,528 is available in the FY2025/26 Proposed Convention and Cultural Services Department Budget. In addition, SHA will receive $108,000 through a separate annual agreement
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executed with Sacramento County and the City. These funds are deposited in the Sacramento History Museum Budget (17001921) to be distributed by the City.
Sufficient funding is available in the proposed FY2025/26 Convention and Cultural Services Department Operating Budget to execute this new agreement with SHA. Funding in future fiscal years is subject to availability of funding in the adopted budgets for the applicable fiscal years.
Local Business Enterprise (LBE): Not applicable.