Item 298/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 7/9/2024
Subject: Award a contract to MNS Engineers, Inc. to provide U.S. Department of Housing and Urban Development (HUD) and State of California Department of Housing and Community Development (HCD) consultation services. (Cost: Not-to-Exceed $80,000) (Action Item)
OBJECTIVE
For the City Council to award a contract to MNS Engineers, Inc. to provide U.S. Department of Housing and Urban Development (HUD) and State of California Department of Housing and Community Development (HCD) consultation services.
BACKGROUND
In June 2022, the City released a Request for Proposals (RFP) seeking organizations with demonstrated skills and experience administering HUD and HCD funding. On August 9, 2022, City Council awarded a contract to Michael Baker International (MBI) to provide consultation services related to the City’s HUD and HCD grants. Over the past two fiscal years, MBI has provided City staff with assistance and guidance on the following projects: Affordable housing compliance monitoring; Revised Density Bonus application; Emergency S olutions Grant compliance monitoring; Environmental review training; HOME -American Rescue Plan Allocation Plan; Annual Action Plans; Consolidated Annual Performance and Evaluation Reports; Davis-Bacon, Section 3, and Build America Buy America Act compliance monitoring; IDIS and HEROS technical assistance; Semi-Annual Labor Standards Enforcement Report; Housing Authority Administrative Plan Amendment; management of park improvement projects through the Community Services Department; and the 2025-2030 Consolidated Plan for the use of HUD funds.
MBI has assigned specific staff, with the requisite experience, to the City of Garden Grove.
City staff has been satisfied with MBI’s high level of customer service and housing expertise.
Item 298/2024
DISCUSSION
City Staff has been made aware that several key MBI staff members, including those assigned to the City, are transitioning to MNS Engineers, Inc. (MNS). This transition includes MBI’s Housing Division Manager and 17 key staff members.
Currently, three (3) key projects managed by MBI for the City will be impacted by staff departures:
1. 2025-2030 Consolidated Plan;
2. Housing Authority Administrative Plan Amendment; and
3. Community Services Department park improvement projects.
These projects are anticipated to be completed in FY 2024 -25, with $76,825.30 collectively remaining in the task orders through May 2024. To avoid delays and ensure that these tasks are completed under the direction of the initial lead , City staff is requesting approval of a contract with MNS, not-to-exceed $80,000. Garden Grove Municipal Code Section 2.50.110 requires contractual services over $25,000 to be selected following open market procedures.
Due to the uniqueness of this transaction, staff is requesting the competitive process be dispensed, as allowed by Mun icipal Code Section 2.50.060 (G), for the City Council to determine the exemption is in the best interest of the City. Awarding the contract to MNS will ensure continuity of services previously provided under the same lead Project Manager who is transitioning to MNS, and allow timely completion of the remaining tasks.
MNS is a multi -service infrastructure consulting firm with over 60 years of experience in planning, civil engineering, construction management, and land surveying services. They have agreed to honor the original cost estimates and schedules provided by MBI for the three (3) remaining projects.
City Staff will be releasing a RFP in July 2024 to procure a larger contract for HUD and HCD consultation services on future projects. The contract with MNS will have a limited scope of work that focuses on the three (3) pending projects. The RFP process i s anticipated to be completed by the end of July 2024, with a recommendation presented to City Council shortly thereafter.
FINANCIAL IMPACT
There is no impact to the General Fund . The remaining funds from the $200,000 not-to- exceed contract with MBI will be applied to the new $80,000 not-to-exceed contract with MNS to complete the three (3) outstanding projects remaining from the MBI scope of work, as outlined in the Agreement and its attached scope of work. The MBI contract was included in the Amended FY 2024-25 Budget that was approved on June 11, 2024, and there will be no further impacts to the General Fund. The contract will be established for a one (1) year period with an option to extend thereafter if the scope of work has not been completed.
Item 298/2024
RECOMMENDATION
It is recommended that the City Council:
• Approve dispensing with bidding requirement in the best interest of the City pursuant to Garden Grove Municipal Code 2.50.060 (G), to allow timely completion of the tasks and allow continuity with the current lead Project Manager who is transitioning to MNS;
• Award a contract for HUD and HCD consultation services to MNS Engineers, Inc., in the not-to-exceed amount of $80,000, for a performance period of one (1) year with an option to extend thereafter if necessary to complete the remaining scope of work outlined in the agreement;
• Authorize the City Manager, or designee(s) to execute the contract referenced above, and make minor modifications as appropriate thereto, on behalf of the City; and
• Authorize the City Manager, or designee(s) to exercise option year terms and sign the option year amendments until the projects are completed.
ATTACHMENT
1. Agreement