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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />APRIL 3, 2018 <br />TITLE: <br />APPROVE AN AGREEMENT WITH MDG <br />ASSOCIATES, INC. TO ASSIST IN THE <br />ADMINISTRATION OF THE COMMUNITY <br />DEVELOPMENT BLOCK GRANT <br />PROGRAM (NON -GENERAL FUND) <br />(STRATEGIC PLAN NO. 4,1) <br />J <br />CITY WANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />-:• <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <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 assist in the administration of the Community Development Block Grant <br />program beginning April 3, 2018 and expiring April 30, 2019, with provisions for two, one-year <br />extensions exercisable by the City Manager and City Attorney, in a total amount not to exceed <br />$100,000 over a three-year period, subject to non -substantive changes approved by the City <br />Manager and 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 United States Department of Housing <br />and 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 blight, 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 />On February 20, 2018, City Council authorized an agreement with MDG Associates, Inc. to <br />provide financial monitoring services of federal grant programs. This separate agreement was <br />authorized due to the increased scrutiny on compliance requirements from the United States <br />Office of Management and Budget and to ensure that mandatory subrecipient monitoring <br />requirements are met. <br />In January 2018, the City's full-time Community Development Analyst position responsible for the <br />daily administration and implementation of the CDBG program became vacant due to an internal <br />25J-1 <br />