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STAFF REPORT - RSG PROFESSIONAL SERVICES AGREEMENT.pdf

Corona City Council
July 1, 2026

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STAFF REPORT - RSG PROFESSIONAL SERVICES AGREEMENT.pdf
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July 1, 2026
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Corona City Council
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Text extracted from the city's file for reading and search. Open the original on pub-corona.escribemeetings.com. That file is the official record.

DATE: 07/01/2026
TO: Honorable Mayor and City Council Members
FROM: City Manager’s Office - Housing and Homeless Solutions Division 2026-215

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

RSG PROFESSIONAL SERVICES AGREEMENT
EXECUTIVE SUMMARY:

This staff report asks Council to approve a Professional Services Agreement with RSG, Inc. to support the implementation and management of the Mobilehome Park Rent Stabilization Ordinance Project for Fiscal Year 2026-27.

RECOMMENDED ACTION:

That the City Council:
a. Approve the Professional Services Agreement with RSG, Inc., effective July 1, 2026, to June 30, 2027, in the total maximum amount of $171,355. b. Find that competitive bidding has been satisfied pursuant to Corona Municipal Code 3.08.140(B) No Competitive Market, and authorize the City Manager, or his designee, to enter into a professional service contract with RSG, Inc. to support the City with implementation and management of the Mobilehome Park Rent Stabilization Ordinance Project for Fiscal year 2026-27. c. Authorize the City Manager, or his designee, to execute the Professional Services Agreement with RSG, Inc. for a total contract of $171,355 effective July 1, 2026 to June 30, 2027, including the ability to negotiate and execute non-substantive changes, including budget line-item adjustments, extensions, purchase orders, and amendments up to 20% of the contract amount as authorized by Corona Municipal 3.08.070(G).
d. Authorize the City Manager, or his designee, to issue a Purchase Order to RSG, Inc. in the amount of $171,355, through June 30, 2027. e. Authorize the City Manager, or his designee, to prepare and approve amendments to renew the RSG, Inc. Professional Services Agreement annually in an annual amount not to exceed $194,657, including the ability to negotiate and execute non-substantive changes, including budget line-item adjustments, extensions, purchase orders, and amendments up to 20% of the contract amount as authorized by Corona Municipal 3.08.070(G), to support ongoing management and implementation of the City’s Mobilehome Park Rent Stabilization Ordinance Project.
f. Authorize an appropriation in the amount of $67,850 to the City Manager’s Office Housing & Property Management Division’s operating budget within the General Fund (FD_1110).

BACKGROUND & HISTORY:

On November 2, 2022, the City Council approved a Professional Services Agreement with RSG Inc. (RSG) in the amount of $98,016 to study the legal findings required to enact a mobilehome rent stabilization ordinance. At that time, the City Council determined that there was no competitive market for this service under the Corona Municipal Code (CMC) Section 3.08.140(B) and determined that competitive bidding for this service had been satisfied.

Accordingly, RSG assisted staff in obtaining, documenting, and analyzing market data; conducting public outreach meetings with mobilehome park owners and residents; and providing other support services. RSG’s analysis found that a legitimate government interest exists to enact a mobilehome rent stabilization ordinance.

On October 12, 2023, staff presented the results of the RSG analysis at the City Council Fall Policy Workshop. At that time, the City Council directed staff to proceed with creating a Rent Stabilization Ordinance (RSO) and program, and to accept RSG’s alternative bid for planning, developing, and implementing a rent stabilization program.

On February 21, 2024, the City Council approved a Professional Services Agreement with RSG in the amount of $269,265 to create and enact a mobilehome rent stabilization ordinance and program. In the 2nd Quarter Budget Report on February 4, 2026, the City Council approved a $13,500 amendment, increasing the RSG agreement total to $282,765, providing enough funds for RSO implementation through June 30, 2026.

In August 2024, RSG completed a Phase II Study, which detailed various options for structuring a mobilehome rent stabilization program and best practices for the City Council’s consideration. In September 2024, RSG presented findings from the Phase II Study, and the City Council directed staff to move forward with a mobilehome RSO and explore an in-lieu agreement with park owners. In November 2024, the City Council created an Ad Hoc Committee to further analyze the in-lieu agreement concept and gather community input.

In March and April 2025, the Ad Hoc Committee worked with RSG and staff to convene two park-owner workshops and two homeowner workshops to gather feedback on the inlieu agreement concept. In June 2025, the City Council directed staff to exclude an in-lieu agreement option for the RSO and for the Ad Hoc Committee to finalize its recommendations on key RSO provisions. In July 2025, the Ad Hoc Committee worked with RSG and staff to convene one park owner workshop and one homeowner workshop to collect feedback on key RSO provisions. From August through November 2025, RSG worked with staff to finalize the RSO provisions recommended by the Ad Hoc Committee.

This team collaboration also included working with Willdan Financial Services to conduct an RSO fee study report.

On November 19, 2025, the City Council approved the first reading of Ordinance No. 3422 adding Chapter 5.47 to Title 8 of the Corona Municipal Code establishing Mobilehome Park Rent Stabilization provisions, adopted Resolution No. 2025-110 to establish fees for administration of the Ordinance, and adopted Resolution No. 2025-111 to declare the City Council’s intent not to adopt rent stabilization provisions for anything other than mobilehome parks. On December 3, 2025, the City Council approved the second reading of Ordinance No. 3422, adding Chapter 5.47 to Title 8 of the Corona Municipal Code, establishing Mobilehome Park Rent Stabilization provisions with an effective date of January 2, 2026. On February 4, 2026, and February 18, 2026, the City Council approved the first and second reading of Ordinance No. 3426, making minor clarifying amendments to the Mobilehome Park Rent Stabilization provisions of the Corona Municipal Code (CMC) Chapter 5.47.

ANALYSIS:

The RSO took effect on January 2, 2026. RSG support to City staff has been critical to ensuring a timely program launch and compliance with the RSO elements. The following is an overview of RSG and staff efforts for RSO launch and implementation through June 2026:
 Processed Initial Park Owner Submittals from all 10 mobilehome parks in January and February. These documents included information on each park, each park owner, services included in base rent, and rent rolls with park maps.  Received and processed Notice of Maximum Rent upon Vacancy for the February 2026 to January 2027 period for all 10 parks. All 10 notices are posted on the RSO webpage.
 Notified parks in mid-February of the FY 26-27 maximum allowable CPI Rent Increase of 3.00%; notice is posted on the RSO webpage.  Notified all 10 parks in February and March of the FY 26-27 maximum allowable CPI Rent Increase by space in each park; all 10 notices are posted on the RSO webpage. Processed 4 park owner requests to increase rents within those allowable limits.
 Conducted a homeowner workshop on 3/9/26 to provide an overview of the program and answer questions.
 Collaborated with IT to create an online portal for payment of RSO administrative fees and petition fees, and in April, notified all 10 parks of their RSO administrative fee amount due by 7/1/26. To date, the Finance Department has received payments from six parks.
 Added capital improvement and homeowner petition forms to the RSO webpage so the City could start accepting those as of 5/1/26.
 In response to homeowner/resident feedback, updated the RSO webpage to include a map of all parks subject to the RSO and a summary of maximum rents upon vacancy by park.
 Processed 29 requests for certification of Vacancy Rent Increases; all notices of certification are posted on the RSO webpage.

The RSG consultant/City staff model has supported the successful development and launch of the RSO. To support ongoing management and implementation of the RSO, staff requests approval of the recommended actions.

Basis for Determination of Competitive Bidding
When initially soliciting these services in 2022, staff found it difficult to identify firms specializing in rent stabilization for mobile home parks. Several firms in the region, such as RSG Inc., have experience in housing and economic development services. However, apart from RSG Inc., none of those firms provides this specialized rent stabilization service. Therefore, due to its specific expertise, as stated above, the Council previously determined that competitive bidding has been satisfied under CMC 3.08.140(B) No Competitive Market for this service. Given that the proposed agreement is an extension of the prior services, for which the Council previously determined there is no competitive market, staff recommend that the Council continue to find that competitive bidding has been satisfied pursuant to CMC 3.08.140(B), No Competitive Market.

COMMITTEE ACTION:

The proposed actions are consistent with the City Council Ad Hoc Committee recommendations that framed the development and approval of the City’s Mobilehome Park Rent Stabilization Rent Ordinance.

FINANCIAL IMPACT:

Approval of the recommended actions will result in an appropriation in the amount of $67,850 to the City Manager’s Office Housing & Property Management Division operating budget within the General Fund (FD_1110). To support the RSG Professional Services agreement, $103,505 was included in the adopted Fiscal Year 2026-27 Budget, which was approved by the City Council on June 3, 2026; therefore, the remaining $67,850 is requested to fully fund the RSG agreement of $171,355. Estimated RSO fees should be sufficient to cover the costs of the RSG agreement.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action involves the approval of a Professional Services Agreement with RSG, Inc. for implementation and management of the Mobilehome Park Rent Stabilization Ordinance Project. Approval of this agreement and provision of the related services will not have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: KAREN ROPER, HOUSING & HOMELESS SOLUTIONS MANAGER REVIEWED BY: JACOB ELLIS, CITY MANAGER
ATTACHMENTS:

1. Exhibit 1 – RSG, Inc. Professional Services Agreement

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