HomeMy WebLinkAboutItem 25 - First Amendment to Agreement with RSG, Inc. Community Development Agency
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Item # 25
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 6, 2022
TOPIC: First Amendment to Agreement with RSG, Inc.
AGENDA TITLE:
Approve a First Amendment to the Agreement with RSG, Inc. for the Administration,
Management and Implementation of the Rent Stabilization and Just Cause Eviction
Ordinances on an As–Needed Basis in an Amount not to exceed $500,000
RECOMMENDED ACTION
1. Authorize the City Manager to execute a First Amendment to the Agreement with
RSG, Inc., for the administration, management and implementation of the Rent
Stabilization and Just Cause Eviction Ordinances, for a one-year term beginning on
September 6, 2022, in a total amount not to exceed $500,000, subject to non-
substantive changes approved by the City Manager and City Attorney.
2. Authorize the City Manager to reallocate up to $500,000 from the Revive Santa Ana
Spending Plan to pay for the administration, management and implementation of the
Rent Stabilization and Just Cause Eviction Ordinances that will be provided by RSG,
Inc.
DISCUSSION
On September 21, 2021, the City Council authorized the City Manager to reallocate up to
$300,000 from the Revive Santa Ana Spending Plan to create an Eviction Defense Fund
by entering into an Agreement with a consultant for the administration, management and
implementation of the Rent Stabilization and Just Cause Eviction Ordinances. At this
same meeting, the City Council also adopted a Resolution (No. 2021-054) that directed
staff to “conduct further study of the additional regulatory framework and infrastructure
necessary to implement residential rent stabilization, just cause eviction, and other
protections for Santa Ana residents facing housing instability. These measures are to
include the creation and operation of a Rent Board or similar body, a rental registry, and
the related costs thereof.”
On October 19, 2021, the City Council adopted the Rent Stabilization Ordinance (“RSO”)
(Ord. No. NS-3009) and the Just Cause Eviction Ordinance (“JCEO”) (Ord. No. NS-3010).
First Amendment to Agreement with RSG, Inc.
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These two ordinances became effective November 19, 2021. The City’s RSO limits rent
increases to a maximum of 3%, or 80% of Consumer Price Index, whichever is less, per
year for certain residential rental units and mobilehome spaces in the City. The City’s
JCEO provides “just cause” eviction protections for most tenants that continuously and
lawfully occupy a residential real property or mobilehome space for at least 30 days. The
JCEO also defines what causes are allowable for a landlord to seek eviction of a tenant.
Following the City Council actions on September 21, 2021 and October 19, 2021, staff
executed an Agreement with RSG, Inc. (“RSG”) on October 28, 2021 for a one-year term
in a total amount not to exceed $300,000 to administer the City’s Rent Stabilization and
Just Cause Eviction Ordinances, to further study the additional regulatory framework and
infrastructure, and to provide general consulting services. As part of the initial and general
implementation of the City’s Ordinances, RSG has been providing the following services:
•Creation and dissemination of informational materials.
•Development and coordination of webinars for landlords and tenants.
•Creation of landlord to tenant required notices in multiple languages.
•Responding to general public information inquiries.
•Coordination of on-site meetings with residents regarding RSO and JCEO
questions.
•Referrals for tenant legal matters and interpretation questions to community legal
aid organizations, as needed.
•Creation of the Fair Return Petition application and review process.
•Review of Fair Return Petitions.
•Outreach and education including periodically mailed communication, workshops,
and website updates.
•Creation and continued revisions to the Frequently Asked Questions document
available on the City’s website.
•Development of training materials for new City staff.
•Resident referrals to other City departments for assistance with emergency
housing needs.
As of July 2022, RSG has assisted over 2,500 tenants and landlords since the two
Ordinances were adopted. Flyers, frequently asked questions, and press releases have
been circulated to the community. The City also regularly updates a website devoted to
the ordinances, which includes related documents and announcements (www.santa-
ana.org/renterprotections). During the contract period, staff and RSG fielded calls from
the public and provided information and education to renters and landlords on the City’s
RSO and JCEO. A breakdown of the number of inquiries is as follows:
Month # of Inquiries
October 2021 34
November 2021 231
December 2021 215
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RSG also worked with the City to announce the amount of allowable rent increase to be
effective as of September 1, 2022. Staff and RSG informed the public of programmatic
updates via Nixle, social media, newsletters, and email distribution lists. A breakdown of
the means of outreach is a follows:
The City, in collaboration with RSG, have also conducted the following community
workshops to provide a general overview of the Ordinances:
The City Requires that when changing the terms of a tenancy, an owner must submit
proof of service to the City as evidence that the owner has complied with noticing
requirements. RSG has assisted with the documentation of the following notices:
January 2022 215
February 2022 203
March 2022 332
April 2022 161
May 2022 174
June 2022 111
July 2022 94
Total 1,770
Platform Individuals Reached
Nixle 12,576
Facebook 7,816
Instagram 4,551
Twitter 337
Nextdoor 916
Total 26,196
Date # of Attendees
November 17, 2021 34
December 8, 2021 55
December 22, 2021 44
January 11, 2022 38
January 25, 2022 19
February 23, 2022 17
April 29, 2022 66
July 20, 2022 26
August 11, 2022 63
August 25, 2022 50
Total 412
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In order to conduct the further study as directed by the Resolution adopted on September
21, 2021, RSG also completed the following tasks:
1. Developed a comprehensive list of California jurisdictions with RSOs and/or
JCEOs;
2. Researched and analyzed existing RSO and JCEO programs and best practices
in selected jurisdictions; and
3. Provided recommendations for the City’s long-term implementation of the
ordinances.
Following this research and study, a Long-Term Implementation Plan for the City’s Rent
Stabilization and Just Cause Eviction Ordinances is being recommended to the City
Council in a separate Staff Report and action. Either way, if City Council adopts or does
not adopt the Long-Term Implementation Plan in the separate Staff Report and action,
staff will still require the consultation services of RSG for the administration, management
and implementation of the City’s Rent Stabilization and Just Cause Eviction Ordinances.
Therefore, staff recommends that the City Council approve a First Amendment to the
Agreement with RSG for a one-year term beginning on September 6, 2022 in a total
amount not to exceed $500,000 (Exhibit 1). To pay for this Agreement, staff is also
recommending that the City Council reallocate $500,000 in the Revive Santa Ana
Spending Plan to pay for the services that will be provided through this Agreement with
RSG. The funds will be reallocated from the Resident Direct Assistance Program for this
Agreement.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Reallocation of up to $500,000 in Revive Santa Ana Spending Plan to enter into a First
Amendment to the Agreement with RSG, Inc. for the administration, management and
implementation of Rent Stabilization and Just Cause Eviction Ordinances. Funds will be
available in Accounting Unit 18118013-62300. There is $2.9M available to be carried
forward from FY 21-22.
Month # of Notices
February 2022 8
March 2022 13
April 2022 13
May 2022 117
June 2022 91
July 2022 51
Total 293
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EXHIBIT(S)
1. First Amendment to Agreement with RSG, Inc.
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
FIRST AMENDMENT TO CONSULTANT AGREEMENT
CITY OF SANTA ANA
THIS FIRST AMENDMENT to Consultant Agreement is entered into on September 6, 2022,
by and between RSG, INC., a California corporation (“Consultant”), and the City of Santa Ana, a
charter city and municipal corporation organized and existing under the Constitution and laws of
the State of California (“City”).
RECITALS
A.The parties entered into the Consultant Agreement (A-2021-192-01) on October 28, 2021,
by which Consultant agreed to administer the City’s rent stabilization and just cause
eviction ordinances, to further study additional regulatory framework and infrastructure,
and to provide general consulting services (“Agreement”).
B.The parties now wish to amend the Agreement to extend the term of the Agreement, append
to the Scope of Services, and increase the compensation to be expended under the
Agreement to cover costs during the extended term.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions of the Agreement, except as hereinafter modified, the parties agree to the
following:
1.Section 1, Scope of Services, shall be amended to replace the Proposal attached to the
Agreement as Exhibit A with the Proposal and Scope of Services attached herewith as
Exhibit A-1.
2.Section 2(a), Compensation, shall be amended to increase the compensation for services
provided under this Agreement by $500,000.00. The total amount to be expended during
the term of this Agreement, including any extension period, shall not exceed $800,000.00.
The Fee Estimate provided in the Proposal attached to the Agreement as Exhibit A shall be
replaced with the Fee Estimate in the Proposal and Scope of Services attached herewith as
Exhibit A-1.
3.Section 3, Term, shall be amended to extend the Term of the Agreement for one (1) year
from the Effective Date of this First Amendment, through September 6, 2023.
4.Except as modified by this First Amendment, all terms and conditions of the Agreement
shall remain in full force and effect.
{signatures on following page}
EXHIBIT 1
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the
Agreement on the date and year first written above.
ATTEST CITY OF SANTA ANA
_______________________________ ______________________________
KRISTINE RIDGE
Clerk of the Council City Manager
APPROVED AS TO FORM RSG, INC.
SONIA R. CARVALHO
City Attorney
By:___________________________ _______________________________
Ryan O. Hodge Tara E. Matthews
Assistant City Attorney Tax ID# 95-3435849
RECOMMENDED FOR APPROVAL
________________________________
STEVEN A. MENDOZA
Executive Director
Community Development Agency
EXHIBIT 1
EXHIBIT A-1
PROPOSAL AND SCOPE OF SERVICES
EXHIBIT 1
Via Email
August 22, 2022
Judson Brown, Housing Division Manager
City of Santa Ana
Community Development Agency
20 Civic Center Plaza (M-26)
Santa Ana, CA 92701
PROPOSAL – ADMINISTER THE CITY’S RENT STABILIZATION AND JUST CAUSE EVICTION ORDINANCES AND
PROVIDE TRAINING, STAFF SUPPORT, AND GENERAL CONSULTING SERVICES
RSG, Inc. welcomes the opportunity to provide the City of Santa Ana (“City”) with services related to the City’s
Rent Stabilization and Just Cause Eviction Ordinances (“RSO” and "JCEO", respectively). It is our understanding
that the City is seeking a consultant to provide administrative services for the City’s two adopted ordinances
NS-3009 (RSO) and NS-3010 (JCEO). We also understand that it is the intent of the City to further refine the
RSO and JCEO administrative process over the next nine to twelve months. The following details the scope of
services RSG will provide, the project team, and the fee schedule.
SCOPE OF SERVICES
RSG will perform the following Scope of Services:
RSO and JCEO Administration
RSG is available to assist the City in the continued implementation of the City’s RSO program and JCEO, and
to respond to public inquiries as needed.
• Content Creation – RSG can prepare ongoing RSO program and JCEO information for property
owners and tenants, including:
• press releases,
• website content creation, including a list of Frequently Asked Questions (FAQs),
• maximum allowable rent increase,
• letters to rental property owners, and
• fliers and handouts.
• Staff Support and Training – RSG will continue to provide administrative support services to City
staff and is available to prepare training materials and support as needed for use by City staff for
program implementation. Additionally, and as needed by City staff, RSG can provide temporary
staffing to answer questions of property owners and residents, both in person for walk -ins and
appointments at City Hall or the Housing Authority (or another location best suited for the clientele),
and via the dedicated phone line and email address. Depending on the availability of City staff and
the volume of inquiries, the number of days and hours of in -person staffing will be adjusted
accordingly.
• CPI Rent Increase Calculations – RSG will prepare and distribute allowable rent increase amounts to
affected property owners pursuant to the procedures detailed in the RSO. CPI calculations determine
the allowable percentage a property owner/landlord is allowed to increase a tenant’s rent by. The
EXHIBIT 1
RSO states that this shall be the lesser of 3% per annum or 80% of the change in CPI.
• Workshops/Webinars - RSG can continue to conduct tenant, landlord, and community organization
workshops. These workshops will be in-person and online in the form of a webinar. They will be
recorded and made available on the City website for future reference. The workshops can be tailored
to specific groups such as non-profits and tenants’ organizations that may assist renters with the RSO
and JCEO, and property owners and property managers. RSG will work with the City to provide
translation for these workshop/webinars in Spanish and Vietnamese.
• Written Notices to Tenants and Landlords/Owners - RSG can work with the City Attorney to prepare
and update required notices as identified in the ordinances as well as any ordinance amendment
documents requiring notices to tenants and/or landlords as noted in RSO Section 8 -1998 and JCEO
Section 8-1994.
• Tenant Complaints under RSO and JCEO – RSG will provide information to tenants regarding the
provisions of the RSO and JCEO but will not be expected to assist the tenant any further regarding
complaints or enforcement. Rather, tenants will be directed to contact an attorney that can file a
civil suit if warranted. RSG will also assist with expanding the compliance activities following adoption
of the Long-Term Implementation Plan and amendments to the RSO and JCEO.
• Preparing Fair Return Petition Analysis - RSG will review the Fair Return Petition Application and
evaluate an applicant's request to increase rents above the amount automatically allowed under the
RSO, in order to receive a fair and reasonable return. Per the RSO Section 8-1998.3, the Fair Return
Petition Application analysis will be provided to the City Manager for final review and approval.
RSO and JCEO Advisory and Implementation Services
RSG understands that the City would like to continue to evaluate potential improvements to the RSO and
JCEO. RSG is available to conduct necessary research as directed, including but not limited to best practices
and procedures of rent stabilization and just cause eviction ordinances in other communities. RSG is also
available to implement any policies, procedures, or any potential modifications to the existing RSO and JCEO
as directed by City Council. RSG can attend and participate in City Council and Staff meetings, as requested.
We are also available to conduct community outreach as needed.
RSG will be available to provide analysis, expert testimony, or other support to the City regarding any legal
challenges to the RSO and JCEO.
RSG will assist the City with all of the recommendations and follow-up actions to implement the Long-Term
Implementation Plan for the RSO and JCEO.
RSG is available to assist with the regulatory framework and infrastructure necessary to implement
residential rent stabilization, just cause eviction, and other protections for Santa Ana residents facing
housing instability, including the potential of an Eviction Prevention Program.
PROJECT TEAM
Tara Matthews will serve as the Managing Principal providing oversight for all aspects for the engagement
and will be the primary consultant. She will be assisted by Cindy Blot, Senior Associate, who will serve as the
project manager and Rebecca Riddle, Analyst. Other RSG staff may be assigned as needed. Resumes of staff
are available at www.webrsg.com or can be provided upon request.
EXHIBIT 1
REFERENCES
Mobilehome Park Fair Return Rent Adjustment Petition Administrative Services – City of El Monte
Contact: Alma Martinez, City Manager
City of El Monte
11227 Valley Boulevard, Suite 200
El Monte, CA 91731
626.580.2001 / amartinez@elmonteca.gov
RSG assists the City of El Monte with administration of the City’s Mobilehome Park Rent Stabilization Program
by providing services as it pertains to the El Rovia Trailer Village, LLC Rent Increase Petition Review and MNOI
Analysis. The scope of services includes the following:
• Petition Review – RSG reviews the Petition to ensure that it is complete and adheres with the
Program guidelines and that all claimed expenses are eligible Program operating expenses.
Additionally, RSG verifies park revenues. Petition Review also includes preparing correspondence to
the Park Owner informing them if their Petition has been accepted or rejected. Should a petition be
rejected, RSG will detail the reason for the rejection to inform the Park Owner of any deficiencies.
• Maintenance of Net Operating Income (“MNOI”) Analysis - RSG calculates the MNOI and the
proposed MNOI Entitlement pursuant to Section 8.70.080 of the Municipal Code.
• Public Hearing – RSG attends public hearings as needed to answer an y questions that the public or
Hearing Officers may have on our portion of the analysis.
• Settlement Agreement Analysis – RSG evaluates the rent differences between the terms proposed
in the Settlement Agreement versus the MNOI Analysis as needed.
Mobilehome Park Rent Control Program Administration – City of Carson
Contact: Saied Naaseh, Director of Community Development
701 E. Carson Street
Carson, CA 90745
310.952.1770 / SNaaseh@carsonca.gov
Since 2017, RSG principal Tara Matthews has served as the City of Carson’s Interim Housing Program Manager.
In this role, she administers the City’s mobilehome park rent control program. The scope of services includes
the following:
• Rent Increase Application Review and Processing – RSG reviews all applications submitted by park
owners seeking either a capital improvement or a fair return rent increase. RSG ensures that each
application is complete and adheres to the Program guidelines. This review includes closely
evaluating each of the expenses submitted by the park owner to ensure that each reported expense
is reasonable, accurate, and sufficiently documented. RSG’s work includes frequent communication
with park owners and residents, as well as collaboration with the City’s legal counsel.
• Resident Noticing - Once an application is deemed complete, RSG prepares required noticing for the
park residents and is available to answer any questions that the park residents may have. RSG is
available for on-site visits as needed to allow park residents an opportunity to review the application
and ask in-person questions.
• Park Inspections – The processing of each application requires an inspection of the mobilehome park
which entails visually inspecting the condition of the park (Fair Return) or verifying the completion
and quality of improvements to the park (Capital Improvement). The findings of the inspection are
included in the staff report present to the Mobilehome Rental Review Board (“Board”). One of the
City’s contract inspectors accompanies RSG at these inspections to provide expertise on the park
conditions and improvements.
EXHIBIT 1
• Public Hearing – RSG prepares the public hearing notices mailed to park residents. RSG also prepares
the staff reports presented to the Board for consideration at the public hearings. Each staff report
includes all material facts related to the application and outlines various rent increase options for
the Board to consider. RSG attends all public hearings to present information to the Board and
answer any questions posed by the Board.
• Staff Training – RSG created a manual and templates for staff to administer the annual CPI
calculations.
• Point of Contact – RSG responds to general inquiries from park owners, park residents, and the
general public regarding the City’s mobilehome park rent control program.
FEE ESTIMATE
Our services for this engagement would be charged on a time-and-materials basis. RSG proposes
the below hourly rate schedule for these services.
Principal / Director $ 275
Senior Associate $ 200
Associate $ 185
Senior Analyst $ 150
Analyst $ 135
Research Assistant $ 125
Technician $ 80
Clerical $ 60
Reimbursable Expenses Cost plus 10%
RSG does not charge clients for travel or mileage (except direct costs related to field work/surveys), parking,
standard telephone/fax expenses, general postage, or incidental copies. However, we do charge for
messenger services, overnight shipping/express mail costs, and teleconferencing services. We also charge for
copies of reports, documents, notices, and support material in excess of five (5) copies. These costs are
charged back at the actual expense plus a 10% surcharge.
RSG issues monthly invoices payable upon receipt, unless otherwise agreed upon in advance.
Invoices identify tasks completed to date, hours expended and the hourly rate.
We appreciate the opportunity to provide these services to the City and should you have any questions,
please contact Tara Matthews at 714.316.2111 or tmatthews@webrsg.com.
Thank you,
Tara E. Matthews
RSG, INC.
EXHIBIT 1