Title
[Contract] Second Amendment of Administrative Services Agreement #2024-0876 with Housing Authority of the City of Sacramento for Property Management Services
End
FileID
File ID: 2026-01387
End
Location
Location: 827 K Street, District 4
End
Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute the attached Second 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.
End
Contact
Contact: Steve Ward, Real Property Agent, (916) 808-1081, stward@cityofsacramento.org; Richard Sanders, Facilities and Real Property Superintendent, (916) 808-7034, rsanders@cityofsacramento.org; James Christensen, Facilities Manager, (916) 808-5863, jechristensen@cityofsacramento.org; Department of Public Works
End
Presenter
Presenter: None
End
Attachments
Attachments:
1-Description/Analysis
2-Second Amendment of Administrative Services Agreement
End
Description/Analysis
IssueDetail
Issue Detail:
The City-owned property located at 827 K Street (the "Property") is a prominent three-story mixed-use building in Sacramento's downtown corridor, encompassing approximately 73,098 gross square feet. The Property includes both retail and office space and is currently occupied by one retail tenant and one office tenant. As a City-owned asset, the Property requires ongoing professional management to oversee tenant relations, lease administration, maintenance coordination, financial reporting, and day-to-day operations.
To ensure continuity in these services and protect the City's investment, staff recommends approving the Second Amendment to the Administrative Services Agreement with the Housing Authority of the City of Sacramento (HACS). The amendment would extend HACS's property management responsibilities through January 31, 2027, allowing HACS to continue providing comprehensive management services while maintaining stable operations, supporting existing tenants, and preserving the long-term value and functionality of this important downtown property.
End
PolicyConsiderations
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.
End
EconomicImpacts
Economic Impacts: None.
End
EnvironmentalConsiderations
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).
End
Sustainability
Sustainability: Not applicable.
End
Commission/Committee Action
Commission/Committee Action: Not applicable.
End
RationaleforRecommendation
Rationale for Recommendation: The Property requires daily property management services in order 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.
End
FinancialConsiderations
Financial Considerations: Estimated annual rent revenue from existing tenants during calendar year 2026 is projected to be $364,000. Expenses for the same period are estimated to be approximately $364,000. Rent revenue is sufficient to cover expenses during the term of the Agreement. No General Fund proceeds are allocated to this project.
End
LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
.End