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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />APRIL 5, 2016 <br />TITLE: <br />AGREEMENT WITH MDG ASSOCIATES, INC. <br />FOR FEDERAL GRANT FINANCIAL <br />MONITORING SERVICES <br />(STRATEGIC PLAN NO. 4, 1) <br />CITY MANAGEFV <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 16' Reading <br />❑ Ordinance on 2ntl Reading <br />El Implementing Resolution <br />© Set Public Hearing Form„. <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute an agreement with MDG <br />Associates, Inc. to provide federal grant financial monitoring services and technical assistance <br />during the period of April 5, 2016 through June 30, 2016, in the amount not to exceed $25,000, <br />subject to non - substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On August 20, 2015 the City entered into agreement N- 2015 -134 with MDG Associates, Inc., in <br />the amount of $6,000 to provide technical support for the preparation of the Consolidated Annual <br />Performance Evaluation Report, which expired on December 31, 2015. Adding new services in <br />the amount of $25,000 in FY 2015 -2016 will exceed the City Manager's signing authority of <br />$25,000 and requires City Council approval. <br />The City of Santa Ana (City) is an entitlement grantee and receives an annual allocation of <br />program funds from the U.S. Department of Housing and Urban Development (HUD) and the <br />Department of Labor. All allocations have specific funding requirements and compliance with <br />these regulations are essential to the continued success of each program. <br />On December 26, 2013, the U.S. Office of Management and Budget (OMB) issued updated <br />Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal <br />Awards. These Uniform Grant Guidelines took effect in December 2014 for new awards. The <br />new guidance affected entities receiving and administering federal awards as well as auditors <br />responsible for auditing federal awards programs. The City intends to comply with the federal <br />grant management requirements as stronger program outcomes evolve and strict internal <br />controls are mandated. <br />25C -1 <br />