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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MARCH 4, 2014 <br />TITLE: <br />AMENDMENT TO AGREEMENT WITH MDG <br />ASSOCIATES, INC. FOR CONSULTING <br />SERVICES <br />CITY MANAG <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />_--:• <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on I" Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and the Clerk of the Council to execute a second amendment to the <br />agreement with MDG Associates, Inc. to add an additional $25,000 for a total aggregate amount <br />not to exceed $50,000, subject to non - substantive changes approved by the City Manager and <br />City Attorney. <br />DISCUSSION <br />The City of Santa Ana is an entitlement grantee and receives an annual allocation of Community <br />Development Block Grant (CDBG) program funds from the U.S. Department of Housing and <br />Urban Development (HUD). The funds must be used to benefit low and moderate income <br />persons, aid in the prevention or elimination of slums or blights, or meet an urgent need. <br />Compliance with all CDBG regulations and requirements is essential to the continued success of <br />the CDBG program. <br />In October 2013, the full -time position responsible for the daily administration and implementation <br />of the CDBG program became vacant and the Community Development Agency was left without <br />the primary staff to administer the program. Staff solicited proposals from consultants with <br />expertise in HUD programs to assist with the administration of CDBG until a replacement was <br />found. Interviews were conducted and MDG Associates, Inc. was selected to best meet the <br />needs at the most reasonable hourly rates. <br />The City entered into an initial $25,000 agreement under the City Manager's authority (as <br />reported on the Quarterly Report of Contracts for the period of October 1, 2013 to December 31, <br />2013). A first amendment was executed to extend the term through June 30, 2014. <br />Due to delays in filling the vacancy, there is a need to continue with the technical consulting <br />services provided by MDG Associates as existing staff do not currently have the expertise to <br />25D -1 <br />