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EXHIBIT 2 <br /> MDG Associates, Inc., is pleased to submit a cost proposal to provide the City of Santa Ana with the <br /> services outlined in the Request for Qualifications for U.S. Department of Housing and Urban <br /> Development (HUD) Grant Management Services. Our proposed pricing structure consists of a <br /> combination of fixed lump sum fees for defined tasks and hourly rates for as-needed or variable <br /> services. This blended approach is intended to provide the City with predictable costs for core <br /> activities while maintaining flexibility to address specialized or unanticipated needs. Details are <br /> provided in Table 1 below. <br /> Table 1: Lump Sum Items <br /> !. 1 .. _ <br /> Program and Financial monitoring of up to five (5) Community Development Block Grant sub- $16,150 <br /> recipients providing fair housing and/or public services. <br /> Financial monitoring of up to three(3) Emergency Solutions Grant sub-recipients. Two sub- $9,450 <br /> recipients provide one activity and one subrecipient provides three activities <br /> Project monitoring of two (2)Community Development Block Grant capital improvement $6,450 <br /> projects. <br /> Financial monitoring of two(2) HOME projects $22,160 <br /> Monitoring-Sub Total: $54,210 <br /> Technical support to enhance project documents and reporting documents for compliance To be billed <br /> with all applicable regulations hourly* <br /> *Due to unknown level of need and subject matter, we are proposing to bill the technical assistance <br /> (TA) on an hourly basis. If requested, MDG can provide a budget for each TA assignment requested <br /> by the City. <br /> Note that MDGs' lump sum prices will increase at a rate of 2.5%annually should the City exercise <br /> its option to extend the contract. The hourly rates for the technical assistance component will also <br /> increase annually as provided in Table 2 below. <br /> 15 <br />