Community Development Agency
www.santa-ana.org/ccd
Item # 15
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
August 19, 2025
TOPIC: Agreement with MDG Associates, Inc. to Provide On-Call Comprehensive Financial, Grant Monitoring, Administrative and Technical Support Services for the CDBG, HOME, and ESG Program
AGENDA TITLE
Agreement with MDG Associates, Inc. to Provide On-Call Comprehensive Financial, Grant Monitoring, Administrative and Technical Support Services for the CDBG, HOME, and ESG Programs (General & Non-General Funds) (Specification No. 25-076A)
RECOMMENDED ACTION
Authorize the City Manager to execute an agreement with MDG Associates, Inc. to provide on-call comprehensive financial, grant monitoring, administrative, and technical support services for the Community Development Block Grant, HOME Investment Partnerships Program, and Emergency Solutions Grant Program in an amount not to exceed $300,000 over a three-year period, beginning August 19, 2025 and expiring June 30, 2028, with the option for an extension. (Agreement No. A-2025-XXX) GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The City of Santa Ana is an entitlement jurisdiction and receives annual allocations from the U.S. Department of Housing and Urban Development (HUD) for federal grant programs including the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) Program. The City’s total Fiscal Year (FY) 2025-26 allocation is $5,726,570:
Community Development Block Grant $ 4,190,178
HOME Investment Partnerships Program $ 1,159,062
Emergency Solutions Grant $ 377,330
TOTAL $ 5,726,570
Generally, these federal funds must be used to benefit low and moderate income persons, aid in the prevention or elimination of slums or blight, meet an urgent need, and assist with our nation's public workforce system to help residents including youth and those with significant barriers to employment enter into high-quality jobs and careers. The City uses these HUD funds for a variety of projects and activities, including affordable housing development, residential rehabilitation, mortgage assistance, public and homeless services, and capital improvement projects.
Agreement with MDG Associates, Inc.
August 19, 2025
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In order to meet regulatory requirements for administering the federal programs, the City needs to ensure that qualified program administrators with the skills and knowledge in the field of comprehensive financial, grant monitoring, administrative, and technical support services are available to ensure prompt and competent services to the public.
The purpose of grant monitoring is to ensure that the City’s CDBG, HOME, and ESG funds are only being used for authorized and eligible purposes, in compliance with federal statutes, regulations, and the terms and conditions of the sub-awards. The purpose of financial and technical support services is to ensure compliance with the Uniform Administrative Requirements, cost principles, and audit requirements for federal awards at 2 CFR 200 and various other grant-specific services. The purpose of administrative services is to administer one or more of these federal grant programs, in order to ensure the City does not fall out of compliance and eligibility for the renewal of program funding. As an entitlement jurisdiction, these specialized services are critical for the City’s compliance.
Request for Proposals
On May 7, 2025, staff issued Request for Proposals (RFP # 25-076A) seeking proposals from qualified consultants to provide on-call comprehensive financial, administrative, and technical support services for federally funded programs (Exhibit 1).
Specifically, the selected consultant will assist City Staff in providing comprehensive financial, grant monitoring, administrative, and technical support services for the CDBG, HOME, and ESG Programs as needed. The technical assistance and administrative services will be on-call for any forms of assistance or service related to these grant programs.
The RFP was posted on the City’s online bid management and publication system (PlanetBids) and a Notice Inviting Bids was sent to 250 prospective bidders. Through the PlanetBids online portal, vendors may register to receive notifications on all current and future City projects, as well as download contract documents, receive project updates, and submit bids electronically. All prospective bidders in Santa Ana were notified about the RFP but staff are not aware of any local firms with expertise and experience in this scope of work. Responses to the RFP were accepted from May 7, 2025 to May 29, 2025.
The City received four (4) proposals prior to the RFP deadline. No firms from Santa Ana submitted a proposal. A Proposal Review Committee consisting of three subject matter experts from the Community Development Agency reviewed and ranked each proposal based on the following criteria as stated in the RFP: Background, Qualifications & Experience (25 points), Key Personnel / Proposed Staffing (25 points), Technical Approach / Methodology (25 points), Cost Proposal (20 points), and Organization/Completeness of Response (5 points). Below are the average scores for the proposals:
Agreement with MDG Associates, Inc.
August 19, 2025
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Consultant Company Average Score
MDG Associates, Inc. 97
Nan McKay and Associates 84
Advanced Avant-Garde 83
CohnReznick Advisory LLC 76
Based on this competitive procurement process, staff recommends that the City Council approve an agreement with the highest-ranked consultant, MDG Associates, Inc., to provide comprehensive financial, grant monitoring, administrative, and technical support services for the CDBG, HOME, and ESG Programs in an amount not to exceed $300,000 over a three-year period, beginning August 19, 2025 and expiring June 30, 2028, with the option for an extension (Exhibit 2). While cost competitiveness was considered as part of the evaluation process, MDG Associates, Inc.’s superior qualifications and experience with Santa Ana and comparable jurisdictions made them the highest-ranked firm. Their pricing was found to be reasonable in light of their specialized expertise and the comprehensive nature of the required services.
MDG Associates, Inc.
MDG Associates, Inc. (MDG) was selected based on their exceptional qualifications, depth of experience with HUD-funded programs, and demonstrated understanding of federal compliance requirements under 2 CFR Part 200. Their team includes nationally recognized subject matter experts in grant compliance, program administration, and monitoring, with a proven track record of delivering effective, timely, and collaborative support to local governments throughout California and across the country. Several MDG team members also serve as HUD-authorized trainers and contributors to the HUD “Ask a Question” help desk, providing guidance to entitlement jurisdictions nationwide. This reflects a unique level of regulatory fluency and positions MDG at the forefront of national HUD compliance standards.
MDG has had agreements with the City of Santa Ana for over a decade, including the same monitoring of various subrecipients and providing on-call technical assistance to support the City’s CDBG, HOME, and ESG Programs. Their familiarity with the City’s staff, systems, priorities, and past performance findings positions them to deliver immediate and efficient support. In addition to their strong regulatory expertise, MDG has consistently demonstrated a capacity-building approach that strengthens subrecipient compliance and enhances the City’s overall grant compliance and administration. MDG’s superior qualifications, technical expertise, and experience working directly with Santa Ana distinguishes them as the most capable firm to provide these comprehensive services. Staff recommends continuing this partnership with MDG to ensure high-quality oversight of the City’s federal funds and to help mitigate compliance risks.
FISCAL IMPACT
Funds are available in the General Fund, HOME, and ESG Contract Services- Professional account (nos. 01118810-62300, 13018780-62300, and 13518785-62300).
Subsequent funding will be budgeted in future fiscal years for expenditure as shown in the table below:
Agreement with MDG Associates, Inc.
August 19, 2025
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Fiscal Year Grant
Year
Accounting
Unit-Account # Fund Description Accounting Unit,
Account Description Amount
FY 2025-26 2025 01118810-
62300 General Fund Contract Services-
Professional $ 70,200
FY 2025-26 2025 13018780-
62300 HOME Program Contract Services-
Professional $ 22,160
FY 2025-26 2025 13518785-
62300 ESG Contract Services-
Professional $ 7,640
Total for FY 25-26 $ 100,000
Fiscal Year Grant
Year
Accounting
Unit-Account # Fund Description Accounting Unit,
Account Description Amount
FY 2026-27 2026 13518780-62300 CDBG
Administration
Contract Services-
Professional $ 68,390
FY 2026-27 2026 13018780-62300 HOME Program Contract Services- Professional $ 22,160
FY 2026-27 2026 13518785-62300 ESG Contract Services-
Professional $ 9,450
Total for FY 26-27 $ 100,000
Fiscal Year Grant
Year
Accounting
Unit-Account # Fund Description Accounting Unit,
Account Description Amount
FY 2027-28 2027 13518780-
62300
CDBG
Administration
Contract Services-
Professional $ 68,390
FY 2027-28 2027 13018780-
62300 HOME Program Contract Services-
Professional $ 22,160
FY 2027-28 2027 13518785-
62300 ESG Contract Services-
Professional $ 9,450
Total for FY 27-28 $ 100,000
TOTAL $300,000
EXHIBITS
1. Request for Proposals for HUD Grant Management Services
2. Agreement with MDG Associates, Inc.
Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, City Manager