DATE: February 18, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Housing and Neighborhood Services Department
TITLE: PROFESSIONAL SERVICES AGREEMENT WITH RSG, INC. FOR MANUFACTURED HOME FAIR PRACTICES COMMISSION FINANCIAL ANALYSIS
RECOMMENDATION
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Staff recommends that the City Council: 1) Approve a Professional Services Agreement (PSA) with RSG, INC., in the amount of $380,000 to provide professional Financial Advisor services to assist the City in the implementation of the Oceanside Manufactured Home Fair Practices Act; 2) Appropriate $320,000 from Mobile Home Rent Control Fund- Unassigned fund balance; and 3) Authorize the City Manager or his designee to execute the agreement upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
The City of Oceanside adopted the Manufactured Home Fair Practices Act on September 12, 1984 by City Council Ordinance No. 82-27, codified as Chapter16B of the Oceanside City Code (“OCC”), also commonly referred to as mobilehome rent stabilization or Chapter 16B. The stated purpose of the Ordinance is to protect residents of manufactured home parks from unreasonable rental increases while at the same time preserving for the park owner a “just and reasonable return” on the park owner’s investment. The Administrative Procedural Guidelines and forms for the administration and enforcement of Chapter16B were adopted in 1992 and recently updated by City Council Resolution 25-R0063-1 on February 19, 2025. The Administrative Guidelines provide a uniform procedure for implementation and enforcement.
Chapter 16B established a process by which to allow maximum annual permissive rental increase to be applied towards eligible mobilehome spaces in the City. Should a park owner require rent adjustments beyond the annual permissive rental increase in order to ensure a just and reasonable return, park owners may file an application with the City of such rent increase based upon Net Operating Income (NOI) or Special Adjustments (also known as Fair Return). Such applications shall be reviewed by City staff and a public hearing scheduled before the Manufactured Home Fair Practices Commission (the “Commission”). That hearing shall be held in accordance with OCC Section 16B.10 and Section V of the Administrative Guidelines for NOI Adjustments and Section VII for Special Adjustments.
On October 20, 2025, staff published a Request for Proposals for professional financial advisory services for review and recommendations of those applications received for a NOI or Special Adjustment to rents within manufactured home communities. The deadline for submission was November 24, 2025 and only one response was received from RSG, Inc (Consultant).
Consultant has significant experience in advising and administering rent stabilization programs and policies, including engagements with the cities of Escondido, Palmdale, and Santa Ana, and currently providing services to Berkeley, Corona, Inglewood, Pico Rivera, Pomona, and San Jose in California, and Takoma Park in Maryland. Consultant also provides ongoing staffing services for the City of Carson, acting as the Interim Housing Program Manager for the City’s mobilehome rent control program. The Consultant has assisted the cities of El Monte, Escondido and more recently Oceanside in 2023 related to a NOI increase for Laguna Vista, in administering the Cities’ mobilehome rent control program by conducting the detailed analysis required to process NOI and fair return rent increase applications submitted by a mobilehome park owner.
As detailed in the attached PSA and the scope of work, Consultant will assist the City by reviewing applications brought forward to the City. Consultant will prepare a report of recommendations of such rent adjustments to be presented to the Commission at an anticipated cost of $44,100 per application, with $3,400 in contingency for additional services. The total cost of the PSA assumes the possibility of two applications per year, for a total contract term of two years, with two one-year extensions at the discretion of the City. Therefore, total cost of the PSA over a four-year period is a maximum of $380,000. Any remaining funds not utilized under the PSA will be returned to fund balance.
FISCAL IMPACT
The PSA with RSG, Inc in the total amount of $380,000, will be charged to the Mobile Home Rent Control CDC account 930477400288.5326. Staff is requesting an appropriation of $320,000 from reserves to cover the contract cost.
|
Description |
Account No. |
Request to appropriate |
Available Funds |
|
Funding Source: |
|
Mobile Home Rent Control Fund- Restricted fund balance |
288.3010 |
$ 320,000 |
$ 2,300,000 |
|
Appropriate To: |
|
Maintenance & Operations - Studies & Reports |
930477400288.5326 |
$ 320,000 |
$60,000 |
COMMISSION OR COMMITTEE REPORT
Not Applicable.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form
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Prepared by: Jesus Adame
Reviewed by: Leilani Hines, Housing and Neighborhood Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Agreement