That the City Council approve and authorize the City Manager to enter into an agreement with MDG Associates Inc., to provide professional services related to the Residential Rehabilitation Program, including but not limited to initial inspections, development of bids and specification documents, construction bid estimates, and other technical assistance issues for the City of La Habra Residential Rehabilitation program for a five-year term (Fiscal year 2020-2025).

On February 15, 2020, the City of La Habra entered into an agreement with MDG Associates, Inc., (MDG) to assist with its Residential Rehabilitation Program.  Pursuant to that agreement, MDG conducts initial inspections to help develop bid and specification documents for each residential project, provides bid estimates, reviews applications and project files to ensure compliance with Housing and Urban Development (HUD) department regulations, and assists staff to process and complete contracts for each residential project.  To date, MDG has helped on the completion of six residential rehabilitation projects and helped staff to identify another six applicants who are eligible to participate in the program.
 
Staff is in the process of completing the required five-year Consolidated Plan with HUD, covering the period July 1, 2020, through June 30, 2025.  If approved by Council, MDG Associates will continue to serve as a consultant to the City over the next five years, providing bid and specification documents, bid estimates, and working with contractors to keep projects on budget and completed on schedule.
 
During the past year staff has worked with three different consultants on various CDBG related administrative projects.  The consultants and their respective fee structures are as follows:

• Priscila Davila & Associates                                               $75 hourly
• B-Adair Consulting and Administrative Services                $75 hourly
• MDG Associates (MDG)                                                     $97.50 hourly
   
  B-Adair Consulting and Administrative Services and Priscila Davila & Associates currently do not provide the specific Residential Rehabilitation services that City is seeking.  Furthermore, City staff lack the expertise necessary to perform these types of services "in-house", therefore, are seeking to continue the City's use of MDG's services for the implementation and management of the City's Residential Rehabilitation Program in a manner consistent with HUD requirements. 
   

There will be no impact to the General Fund as a result of this agreement.  Each year staff budgets a portion of CDBG funds to fund Residential Rehabilitation Administration costs, and includes these costs in the Annual Action Plan submitted to and approved by City Council.  These funds are used to pay for consultant fees, along with costs associated with testing for lead based paint and asbestos removal and remediation if necessary.  The annual not-to-exceed amount allocated to this agreement is $25,000 per year, for a maximum not-to-exceed amount of $125,000 for the five-year term of the agreement.
 

LU 2.5 Places Supporting the Quality of Life
H 2.8 Rehabilitation and Home Improvement Program