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HomeMy WebLinkAbout25B - AGMT FINANCIAL MONITORREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 20, 2018 TITLE: APPROVE AN AGREEMENT WITH MDG ASSOCIATES, INC. FOR FINANCIAL MONITORING SERVICES (STRATEGIC PLAN NO. 4,1) r CITY I ANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 181 Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an agreement with MDG Associates, Inc to provide financial monitoring services beginning February 21, 2018 and expiring June 30, 2018, with provisions for two, one-year extensions exercisable by the City Manager and City Attorney, in an annual amount not to exceed $30,000 annually, for a total amount not to exceed $90,000 over a three-year period, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The City of Santa Ana is an entitlement grantee and receives an annual allocation of program funds from the U.S. Department of Housing and Urban Development (HUD) and the Department of Labor. All allocations have specific funding requirements and compliance with all of the federal regulations and requirements is essential for the continued success of each program. On December 26, 2013, the U.S. Office of Management and Budget (OMB) issued Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. These Uniform Grant Guidelines took effect in December, 2014 for new awards. The new guidance affected entities receiving and administering federal awards as well as auditors responsible for auditing federal awards programs. Due to increased scrutiny on OMB compliance requirements, the City would like to contract with an organization whose expertise in financial monitoring will ensure that mandatory subrecipient monitoring requirements are met. As federal grant management and administration continues to evolve toward stronger program outcomes and mandates strict internal controls, the City makes every effort to meet each requirement. For this reason, staff solicited proposals from consultants with expertise in financial 2513-1 - Agreement with MDG Associates, Inc. February 20, 2018 Page 2 monitoring to assist' with the monitoring of Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), Housing Opportunities for Persons With Aids (HOPWA), and Workforce Innovation and Opportunity Act (WIOA) sub -recipients for the current fiscal year. For the CDBG program, the consultant may also be asked to provide capital improvement project monitoring. The City received a total of three proposals. The proposals were reviewed by a committee of staff. MDG Associates, Inc. was selected by the committee to best meet the needs of the City at the most reasonable hourly rates. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #4 - City Financial Stability, Objective #1 (Maintain a stable, efficient and transparent financial). FISCAL IMPACT Funds are available in the Community Development Agency's grant programs for FY 2017-18, and will be budgeted in future fiscal years as follows: nt No. FY 2017-18 FY 2018-19 FY 201 Total Amount CDBG 13518780-62300 $18,660 $18,660 $20,280 $57,600 ESG 13518785-62300 $ 4,860 $ 4,860 $ 4,860 $14,580 HOPWA 40518761-62300 $ 1,620 $ 1,620 $ 0 $ 3,240 WIOA 12318748-62300 $ 4,860 $ 4,860 $ 4,860 $14,580 Robert Zur Schm de Interim Executive Director Community Development Agency Exhibit: 1. Agreement 30,000 $30,000 APPROVED AS TO FUNDS AND ACCOUNTS: i A.j 4 ' - Francisco Gutierrez Executive Director Finance and Management Services Agency 25B-2 EXHIBIT 1 CONSULTANT AGREEMENT INCORPORATING COMMUNITY DEVELOPMENT BLOCK GRANT REQUIREMENTS THIS AGREEMENT, made and entered into this day of , 2018, by and between MDG Associates; 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 City desires to retain a consultant having special skill and knowledge in the field of grant monitoring services and technical consulting services for federal grant programs. Accordingly, the City issued a Request for Proposals for HUD Financial Monitoring Services attached hereto as Exhibit A and incorporated herein. B. The City, as an entitlement recipient and grantee of the United States Department of Housing and Urban Development ("HUD") Community Development Block Grant ("CDBG") Program, desires to enter this Agreement with the Consultant for the expenditure of CDBG funds in accordance with Title 24, Part 570 of Code of Federal Regulations 24 CFR 570.000, et seg. ("CDBG Regs"). C. Consultant represents that Consultant is not listed as debarred, is able and willing to provide such services to the City, and will comply with the CDBG Regs. D. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: I.. SCOPE OF SERVICES Pursuant to this Agreement, MDG Associates, Inc. will provide select monitoring and technical support services for the City of Santa Ana's Community Development Block Grant, Emergency Solutions Grant, Workforce Innovation and Opportunity Act, and HOPWA Programs as set forth in Exhibit B attached hereto and incorporated herein. 2. COMPENSATION a. The total surn to be expended under this Agreement shall not exceed Thirty Thousand Dollars ($30,000) per fiscal year during the Term of this Agreement, for a potential total of Ninety Thousand Dollars ($90,000) over the possible three fiscal year Term. 25B-3 EXHIBIT 1 b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. c. Worker's Compensation Insurance, In accordance with the provisions of Section 3300 of the Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Consultant is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per clairn. e. The following requirements apply to the insurance to be provided by Consultant pursuant to this section: (i) Consultant shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved in form by the City Attorney. (iii) Certificates and policies shall state that the policies shall not be cancelled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City, £ If Consultant fails or refuses to produce or maintain the insurance required by this section or fails or refuses to famish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials expended prior to notification of termination, Consultant waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City, 6. INDEMNIFICATION Consultant agrees to and shall indemnify and hold harmless the City, its officers, agents, employees, consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including health, and claims for property damage, which may arise from the direct or indirect operations of the Consultant or its contractors, subcontractors, agents, employees, or other persons acting on their behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to 25B-4 EXHIBIT 1 subcontractors, bookkeepers and accountants, employees and participants in regard to said program. City and the United States Government and/or their representatives shall also schedule on-site monitoring at their discretion. Monitoring activities may also include, but are not limited to, questioning employees and participants in said program and entering any premises or any site in which any of the services or activities funded hereunder are conducted or in which any of the records of Consultant are kept. Nothing herein shall be construed to require access to any privileged or confidential information as set forth in federal or state law. I. Location of Records/Required Length of Record Keeping. All accounting records, reports, and evidence pertaining to all costs, expenses and the funds received by Consultant and all documents related to this Agreement shall be maintained and kept available at Consultant's office or place of business for the duration of the Agreement and thereafter for five (5) years after completion of an audit in conformity with the CDBG Regs. Records which relate to (a) complaints, claims, administrative proceedings or litigation arising out of the performance of this Agreement, or (b) costs and expenses of this Agreement to which City or any other governmental agency takes exception, shall be retained beyond the four (4) years until complete resolution or disposition of such appeals, litigation claims, or exceptions. In the event Consultant does not make the above -referenced documents available within the City of Santa Ana, California, Consultant agrees to pay all necessary and reasonable expenses incurred by City in conducting any audit at the location where said records and books of account are maintained. J. Confidentiality. Without prejudice to any other provisions of this Agreement, Consultant shall, where applicable, maintain the confidential nature of information provided to it concerning participants in accordance with the requirements of federal and state law. However, Consultant shall submit to City and or HUD or its representatives, all records requested, including audit, examinations, monitoring and verifications of reports submitted by Consultant, costs incurred and services rendered hereunder. K. Lobbying. Consultant certifies that it will comply with federal law (31 U.S.C. 1352) and regulations found at 24 CFR Part 87, which provide that no appropriated fiords may be expended by the recipient of a federal contract, grant, loan or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, Member of Congress, or an officer or employee of a Member of Congress in connection with awarding of any federal contract, the malting of any federal grant or loan, entering into any cooperative agreement and the extension, renewal, amendment or modification of any federal contract, grant, loan or cooperative agreement. If any Rinds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit a "Disclosure Form to Report Lobbying," in accordance with its instructions. L. Financial Interest. Consultant agrees that except for the use of fiords to pay salaries and other related administrative or personnel costs, no persons who exercise or have exercised any function with respect to activities assisted under the terms of this Agreement, or who are in a 25B-5 EXHIBIT 1 Notice shall be sent by Consultant to City regarding any changes or modifications to its board of directors and list of officers. P. Prohibition of Nepotism. Consultant agrees not to hire or permit the hiring of any person to fill a position funded through this Agreement if a member of that person's immediate family is employed in an administrative capacity by Consultant. For the purposes of this section, the tern "immediate family" means spouse, child, mother, father, brother, sister, brother-in-law, sister-in-law, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, stepparent and stepchild. The tern "administrative capacity" means having selection, hiring, supervisor or management responsibilities. 8. ASSIGNABILITY None of the duties of, or work to be performed by, Consultant under this Agreement shall be subcontracted or assigned to any agency, consultant, or person without the prior written consent of City. Consultant must submit all subcontracts and other agreements that relate to this Agreement to City. No subcontract or assignment shall terminate or alter the legal obligations of Consultant pursuant to this Agreement. 9. TERMINATION A. This Agreement may be terminated on thirty (30) days' written notice by either party. In the event of such termination, Consultant shall only be entitled to reimbursement for approved expenses incurred to the effective date of termination. B. This Agreement may be suspended or terminated by City upon five (5) days' written notice for violation by Consultant of Federal Laws governing the use of Community Development Block Grant Funds. hr the event of such suspension or termination, Consultant shall only be entitled to reimbursement for approved expenses incurred up to the effective date of suspension or termination. C. Pursuant to 24 CFR 85.43, in the event Consultant defaults by failing to fulfill all or any of its obligations hereunder, City may declare a default and termination of this Agreement by written notice to Consultant, which default and termination shall be effective on a date stated, in the notice which is to be not less than ten (10) days after certified mailing or personal service of such notice, unless such default is cured before the effective date of termination stated in such notice. If terminated for cause, City shall be relieved of further liability or responsibility under this Agreement, or as a result of the termination thereof, including the payment of money, except for payment for approved expenses incurred for services satisfactorily and timely performed prior to the mailing or service of the notice of termination, and except for reimbursement of (1) any payments made for services not subsequently performed in a timely and satisfactory mariner, and (2) costs incurred by City in obtaining substitute performance. D. The grant of funds under this Agreement may be terminated for convenience in accordance with 24 CPR 85.44. r EXHIBIT 1 To Consultant: MDC+ Associates, Inc, 10722 Arrow Route, Suite 822 Rancho Cucamonga, California 91730 Phone: (909) 476.9696 Facsimile: (909) 476-6086 13. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify Agency fidly, including reasonable costs and attorney's fees, for any injuries or damages to Agency in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. c. No delay or omission by either party hereto to exercise any right or power accruing upon any noncompliance or default by the other party with respect to any of the terms of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either of the parties hereto of any of the covenants, conditions, or agreements to be performed by the other shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant, condition or agreement herein contained. 25B-7 EXHIBIT 1 EXIMIT A REQUEST FOR PROPOSALS ii EXHIBIT 1 EXHIBIT B PROPOSAL 12 25B-9 EXHIBIT 1 If you have any questions regarding this matter, please do not hesitate to call me at your convenience, Respectfully 5u mlti udy E. u z President Enclosure. Proposal 10722 Aam Route a Sulte 822 a Rancho Cucamonga w Callforola 91790 (909) 476-9696 a MX(909)476-6086 25B-10 BUDGET PROPOSAL MDG proposes to provide monitoring and technical support services for the City of Santa Ana's CDBG, ESG, HOPWA and Workforce Innovatlon and Opportunity Act Programs on a time and material basis based on the Rate Schedule provided under Sectlon VI, The estimated hours to complete the following services are as follows; • Financial monitoring of up to five (5) Community Development Block Grant sub.recipients providing fair housing and/or public services, Estimated hours for completion: 90 Hours (18 Hrs, per Subreclpient) 18 hrs, x $90 © $1,620 per subrecipient; $1,620 x 5 Subrecipients =Total $8,loo • Program monitoring for up to five (5) Community Development Block Grant sub -recipients providing fair housing and/or public services. Estimated hours for completion: 40 Hours (8 Hrs, per Subrecipient) Estimated hours for completion: 40 Hours (8 Hrs, per Subreclpient) 8 hrs. x $90 . $720 per subrecipient; $ 720 x 5 Subrecipients = Total $3,600* (*hours budgeted are based on conducting the financial and programmatic monitoring concurrently and of the same agencies) • Financial monitoring of up to three (3) Emergency Solutions Grant sub -recipients providing street outreach, shelter, homeless prevention and/or rapid rehousing, Estimated hours for completion; 60 Hours (18 Hrs. per Subrecipient) 'I8 hrs, x $90 = $1,620 per subreciplent; $1,620 x 3 5ubrecipients m Total $4,860 • Financial monitoring of upfto three (3) Workforce Innovation and Opportunity Act Sub - recipients providing youth services, Estimated hours for completion: 60 Hours (20 Hrs, per Subrecipient) 18 hrs, x $90 = $1,620 per subrocipient; $1,620 x 3 Subreciplents -Total $4,860 • Project monitoring of one (1) Community Development Block Grant capital improvement project and technical support to enhance project documents and reporting documents for compliance with all applicable regulations. Estimated hours for completion: 20 Hours (20 Hrs. per project) 18 hrs, x $90 = $1,620 per project; $1,620 x 1 project = Total $1,620 • Financial monitoring of one (1) HOPWA project. Estimated hours for completion: 20 Hours (20 Hrs. per project) 18 hrs. x $90 = $1,620 per project; $1,620 x 1 project = Total $1,620 NOTE: Depending on the condition of the Subreclpient Agency files, it is possible that the monitoring of these programs can take substantially less time than the amount indicated, 10111 25B-11 25B-12