2022-R-27 - CDBG Quality Assurance and Control Polilcy RESOLUTION NO.2022-R-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
EDGEWATER, FLORIDA ADOPTING POLICIES AND
PROCEDURES RELATING TO THE CITY'S QUALITY
ASSURANCE AND QUALITY CONTROL FOR USE IN
ADMINISTERING COMMUNITY DEVELOPMENT BLOCK
GRANTS; PROVIDING DEFINITIONS; DEFINING AN
ACTION PLAN; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Edgewater desires to establish policies and
procedures regarding quality control and quality assurance under the City's Community
Development Block Grants(CDBG),and
WHEREAS,the City Council of the City of Edgewater recognizes the need to adopt policies
and procedures for quality assurance and quality control under the Community Development Block
Grant to ensure compliance and adherence to requirements and standards set for by the United State
Department of Housing and Urban Development (HUD), the Florida Department of Economic
Opportunity(DEO), Federal Regulations, State Statutes,and State Administrative Rules: -'
NOW, THEREFORE, BE IT RESOLVED by the City Council-of the dty-of
Edgewater Florida:
Section 1. The City Council adopts, a Quality Assurance and Quality Control Policieg and
Procedures for use in administering Community Development Block Grants,a copy of which
is attached and incorporated herein as Exhibit"A"
Section 2. All conflicting purchasing policies are superseded by this policy.
Section 3.All resolutions or part of resolutions in conflict herewith are hereby repealed.
Section 4.This resolution shall take effect upon adoption.
2022-R-27 1
After Motion to approve by CttLnP a— LIL� with Second by
the vote on this Resolution was as follows:
AYE NAY
Mayor Mike Thomas
Councilwoman Christine Power X
Councilwoman Gigi Bennington k
Councilwoman Debbie Dolbow ,x'
Councilman Jonah Powers
PASSED AND DULY ADOPTED this day of at-'? 12022.
CITY COUNCIL OF THE
CITY OF EDGEWATER,
ti F RIDA
GO�ytdTv ��p `
? Mike Thomas
Mayor
rATTEST 0 r'
G -
Bonnie Zlotnik, MC
City Clerk
For the use and reliance only by the City of Edgewater,
Florida Approved as to form and legality by:
Aaron R.Wolfe,Esquire
City Attorney
Doran,Sims,Wolfe&Yoon
Approved by the City,C ;{n�cil of a City of Edgewater at a
meeting held on this day of 2022,
under Agenda Item No 8ry'\
r�
2022-R-27 2
EXHIBIT "A"
CDBG-DR QUALITY ASSURANCE AND QUALITY CONTROL POLICY
�1
2022-R-27 3
CDBG
Quality Assurance/Quality Control (QA/QC)
Procedures
E-D GEWATER
Resolution No. 2022-R-27
Table of Contents
Purpose............................................................................................................................................ 1
Self Evaluation, Capacity and Monitoring Plan ............................................................................. 1
Eligible Activities and Meeting a National Objective.................................................................... 1
Duplicationof Benefits................................................................................................................... 2
Procurements .................................................................................................................................. 2
EnvironmentalReview ................................................................................................................... 3
Acquisition and Displacement/Relocation...................................................................................... 3
Financial Managements Systems and Financial Management....................................................... 4
Monitoring...................................................................................................................................... 5
Project Progress and Amendments................................................................................................. 6
ConstructionElements.................................................................................................................... 6
Civil Rights Compliance........................
Reporting ........................................................................................................................................ 8
Citizen's Complaints....................................................................................................................... 8
RecordsRetention and Access........................................................................................................ 9
PublicRecords Requests................................................................................................................. 9
Summary......................................................................................................................................... 9
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Purpose
The purpose of these Quality Assurance/Quality Control (QA/QC) procedures is to assure
the City's CDBG program quality, ensure the program meets performance measures, and to
ensure compliance with rules, regulations, statutes, laws, best practices and requirements
identified by the federal government, the State of Florida and those incorporated in the
City's contractual agreement with the Florida Department of Economic Opportunity (DEO).
This document is the general approach for compliance of the City of Edgewater's CDBG
program, establishing monitoring practices and oversight of all program areas including:
• Self-Evaluation
• Eligible Activities and National Objective
• Duplication of Benefits
• Procurements
• Environmental Review
• Acquisition
• Financial Systems and Financial Management
• Monitoring
• Project Progress and Amendments
• Construction Related (Labor Standards Compliance/Engineer or Housing
Specialist
Inspection Services/Certification of Completion or Certificate of Completion or Occupancy
[housing])
• Civil Rights (Fair Housing, EEO, MWBE,Section 504,and Section 3)
• Reporting
• Complaints
• Records Retention
• Public Records Requests
Self Evaluation, Capacity and Monitoring Plan
The City will, upon receipt of notification of award OR receipt of an executed CDBG
agreement, evaluate its capacity, staffing, grant management history, financial systems and
fiscal history (i.e. any previous financial monitoring findings or concerns from previous
grants and/or audit findings or compliance issues) and coupled with DEO's Risk
Assessment will put into place strategic adjustments that supplement the City's existing
capacity. These adjustments may include such actions as purchasing updated accounting
software, hiring additional staff or hiring consultants. In addition,to these adjustments,the
City will adhere to and participate in monitoring in accordance with DEO's monitoring plan.
Eligible Activities and Meeting a National Objective
The City of Edgewater will take the appropriate steps to ensure that only eligible activities
are addressed with CDBG funds and that projects paid for with these grant funds meet a
National Objective. Activities approved through the project's application and contracting
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with DEO are assumed to meet the tests for being eligible activities and for meeting a
National Objective. Any changes in the activities, beneficiaries and scope of work will
require reviews by City staff and DEO to determine the eligibility of activities and whether
or not a project continues to meet a National Object. Projects that provide direct benefit to
residents, such as housing rehabilitation will require the beneficiaries to provide
substantial documentation of household income to ensure they are low-to-moderate
income, or in the case of work on a multi-unit housing project documentation confirming
that at least 51% of the units are occupied by person from low-to-moderate income and/or
will be or remain available and affordable to persons from low-to-moderate income
households.
Duplication of Benefits
The City, will take ongoing measures to ensure that there is no Duplication of Benefits
(DOB) utilizing the CDBG funds. For Disaster Recovery projects the City will adhere to the
requirements of the Stafford Act to avoid DOB. A DOB occurs when a person, household,
business, government, or other entity receives financial assistance from multiple sources
for the same purpose, and the total assistance received for that purpose is more than the
total need for assistance. Within the CDBG program, all grantees are bound by Section 312
of the Stafford Act, as amended by the DRRA, and the OMB Cost Principles within 2 C.F.R. §
200 that requires all costs to be "necessary and reasonable for the performance of the
Federal award."
The City will ensure that no DOB occurs by:
1. Assessing Need: Determine the amount of need (total cost) to accomplish a project.
2. Determining Available Assistance: Determine the amount of assistance that has or
will be provided from all sources to pay for the cost of the project.
3. Calculating Unmet Need: Determine the amount of assistance already provided
compared to the need to determine the maximum CDBG award (unmet need)
4. Documenting the analysis: Document calculation and maintain adequate
documentation justifying determination of maximum award.
Additionally, the City will adhere to the Disaster Recovery Subrogation Agreement,
enclosed in the CDBG agreement, and cooperate with DEO in its prescribed monitoring for
and recovery of dollars that are deemed a DOB.
Procurements
The City will follow 2 CFR 200.317-326 and the City's adopted and DEO approved
Procurement Policy for all procurements funded by CDBG. Additionally, the City will
adhere to the requirements of Section 287.055 Florida Statutes when conducting
procurements for professional services such as grant administration engineering. The City
will advertise its procurements for CDBG funded work and services in a regional
Metropolitan Statistical Area newspaper of general circulation. Construction procurements
will additionally adhere to Sections 255.05 (bonding), 255.0525 and DEO requirements �•-•�
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(advertising times). Requests for Proposals, at a minimum, must be advertised at least
twelve (12) days prior to the deadline for receipt of proposals.
The City will make every effort to ensure that no conflicts of interest occur in the
procurements process. City Elected officials and staff will be required to divulge any
potential conflicts of interest and will be required to remove themselves from the process
and abstain from participation in any procurements where an actual or a perceived conflict
of interest exists.
In the event of any bid protest, the City will follow the procedure as outlined in Section
127.57(3) Florida Statutes and will notify its DEO contract manager immediately of any
protests it receives. The City will communicate any other procurement challenges or
problems to its DEO contract manager immediately.
The City will ensure that it has an E-Verify Memorandum of Understanding (MOU) and will
include a requirement in all contracts with contractors, subcontractors, consultants and
subrecipients, funded with CDB funds, to utilize the U.S. Department of Homeland
Security's E-verify system (E-Verify) to verify employment eligibility of all new employees
hired during the term of the CDBG agreement. Additionally, the City will utilize E-Verify for
any new employees it hires during the Grant Period.
The City will include the Section 3 Clause in all contracts with contractors, subcontractors,
consultants and subrecipients that are$100,000 or more.
Environmental Review
Prior to the expenditure any CDBG funded project, other than the allowable expenditures
for administration, the City will complete a HUD required Environmental Review that
meets the requirements of 24 CFR Part 58. While additional environmental reviews,
studies or reports (such as a Phase I and Phase II Environmental Study typically conducted
by an engineer) may be required, and may also be needed for the HUD Environmental
Review, the City understands that these reviews, studies and reports are not a substitute
for the HUD required Environmental Review. The City understands that any expenditure of
or commitment to expend CDBG funds (other than the allowable $5,000 for initial
administration) prior to its receipt of DEO's Authority to Use Grants Funds will not be
eligible for payment or reimbursement with CDBG-DR funds. Commitments to expend
funds, include but are not limited to the actual expenditure of funds, construction bidding
and/or award,and agreements to acquire property.
Acquisition and Displacement/Relocation
The City will adhere to 49 CFR Part 24, the Uniform Relocation Assistance and Real
Property Acquisition for Federal and Federally Assisted Programs when purchasing
property for a CDBG, regardless of the source of the funding. Additionally, the City will
make every effort to avoid CDBG funded projects that displace people or businesses. In
instances where the CDBG funded project will displace persons or businesses, the City will
ensure that those displaced are accommodated as directed and required in the regulations.
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Financial Managements Systems and Financial Management
The City will manage all financial aspects of the CDBG program by ensuring that its
financial systems and staff are structured in a manner that ensures optimal accountability
and adheres to federal and state accounting requirements. All CDBG awards will be
included in the City's budget. A staffing system will be structured that ensures, to the
extent possible,segregation of duties in the financial processes.
In instances where non-CDBG funding will be used with CDBG funding, the funding sources
and uses will be clearly represented as separate funding streams and expenses in the City's
accounting systems. The City's accounting system or subset of the same will be structured
in a manner that reports budget to actual expenditures, detailed check/expenditure
registers,and cash balance reporting and expenditures by request for funds.
The City will ensure that there is no comingling of funds by placing CDBG funds in a
separate bank account or by demonstrating that its accounting system has sufficient
capacity and internal controls to separately track the receipts and expenditures of the
CDBG grant. For CDBG projects that are funded through an advance process, the City will
ensure that these CDBG funds will be maintained in a separate non-interest-bearing
account.
The City will report any program income generated from CDBG projects in the Quarterly
Status Report. The City will return any program income generated after the closeout of the
CDBG agreement to DEO. The City also understands that any program income generated
prior to closeout must be returned to DEO unless the program income can be used for
additional units of CDBG activities that are specified in a modification to the agreement
executed prior to the closeout. It is also understood that program income included in the
project by modification to the agreement must be used in accordance with 2 C.F.R. part
200,24 C.F.R.part 570.504 and the terms of the CDBG agreement.
The City will submit requests for funds through the DEO Subrecipient Enterprise Resource
Application (SERA) system. To ensure the timely expenditure of CDBG funds the City will
submit requests for funds on a regular basis and in accordance with the CDBG agreement's
Scope of Work, Project Detail Budget and Activity Work Plans. These requests for funds
will include a signed invoice from the City as well as all contractor invoices, cancelled
checks and other documentation required by DEO that supports the expenditures reflected
in the City's invoice.
The City will maintain detailed and organized financial records and will be prepared to
provide the same for DEQ monitorings and annual audits. For years that the City expends
$750,000 or more in federal funds, it will submit a Single Act or Program Specific Audit to
DEO and the Florida Auditor General no later than June 30. For years that the City expends
less than $750,000 in federal funds, it will submit a DEO Audit Certification Memo to DEO
no later than June 30. Additionally, the City will submit an Audit Compliance Certification
(an attachment to the CDBG agreement) no later than sixty (60) calendar days following
the end of its fiscal year. The City will respond in a timely manner to any potential DEO
financial monitoring findings or concerns and to any potential audit findings or issues.
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Monitoring
The City,on an ongoing basis,will self-monitor to ensure:
1. adherence to the requirements of the CDBG agreement, as well as state and
federal requirements,
2. adequate efforts are made, and actions taken to Affirmatively Further Fair
Housing, that additional efforts are made toward Affirmative Action, enhancing
opportunities for minority and women business enterprises (MWBE) in
procurements, ensuring program access for handicap persons (Section 504), as
well as staffing and beneficiaries, and proactive approaches to providing
opportunities to low to moderate income persons (Section 3).
3. the project's timely progress as it relates to the agreement's Milestones/Activity
Work Plans/Timeline,
4. the project's timely expenditure rate,
5. the maintenance and accuracy of project related accounting,
6. that project work is certified complete by a Housing Rehab Specialist and
Building Official for housing projects and by an engineer for infrastructure and
public facilities projects,
7. timely submission of required reporting,
8. complete,correct and organized retention of records,
9. the avoidance of conflicts of interest in procurements and beneficiaries,
10.the timely and appropriate response to complaints,and
11.the timely response to public records requests.
The City will prioritize preparation for, participation in and responses to DEO monitoring
visits and desk monitorings. The City will prepare for these monitorings by:
1. completing, when available, DEO monitoring checklists to organize appropriate
files and copies of backup,
2. utilizing DEO monitoring checklists and/or DEO Initial Document Request List
from the DEO monitoring notification letter to organize appropriate files,
documents,policies,financials record, etc.,
3. providing DEO advanced copies of requested files, documents, policies, financial
records, etc.,for desk and remote monitorings,
4. having appropriate City staff including program and fiscal staff as well as
consultants (if applicable) available for the monitorings, whether they are desk,
remote or in person monitorings,
S. making sure a local elected official or City Manager is available for the entrance
and exit interviews,and
6. making appropriate City staff available for interim telephone conference calls,
which are not actual monitorings,but serve to provide DEO project updates.
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The City will respond to DEO monitoring questions, findings and concerns by:
1. providing DEO any requested additional documentation or information in a
timely manner,
2. taking appropriate action(s) to correct any monitoring findings and/or concerns,
and
3. providing DEO with a timely written response to any monitoring findings and/or
concerns.
The City will additionally review ongoing DEO and HUD correspondence and notices as
well as annual audit reports and will take necessary prescribed actions to correct or
improve any items requiring corrections or improvements, and will in a timely manner
respond in writing to DEQ regarding these actions,when required.
The City is committed to requesting technical assistance from DEO, as needed, to ensure
project quality,compliance and progress.
Project Progress and Amendments
The City understands that the timely completion of the CDBG project and timely
expenditure of funds must be a priority as it is vital to provide the grant funded repairs,
improvements, infrastructure, public facilities, housing and/or services to its residents.
Additionally, the City is aware of the mandates on HUD and DEO to expend the grant funds
in a timely manner, and that failure to do so can potentially jeopardize additional future
funding opportunities.
The City is committed to working within the parameters and requirements of the program
to ensure timely completion of the CDBG project. In the event that unforeseen and
unavoidable delays are imminent, the City will communicate in a reasonable timeframe
with the appropriate DEO staff and if necessary, will initiate a request for any necessary
contract amendments to align actual timeframes with project work plans, timelines and to
adjust expiration dates if necessary.
Construction Elements
The City will conduct the bidding process, taking actions to promote minority and women
business enterprises and Section 3 participation and advertising for the required time
frames. As required, the City will conduct a pre-bid conference/meeting, will provide bid
documents at a reasonable cost, will receive sealed bids with proper bonding and required
documents, will open the bids publicly, will create or obtain a bid tabulation and award
recommendation from staff or the project engineer, will have the governing body vote to
award the contract to the contractor pending receipt of any additional information
including proof of active registration in the SAM.gov system, required bonds and proof
documenting that the contractor is not on the Excluded Parties list.
Follow receipt of these documents, the City will request contractor clearance from DEO and
once received,will execute a contract with the contractor.
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Following execution of the construction contract, the City will conduct a pre-construction
meeting with the contractor and discuss requirements for Section 3, MWBE, Davis Bacon
(prevailing wage requirements) including submission of weekly certified payroll reports,
Contract Work Hours and Safety Standards Act (CWHSSA) requiring time and a half pay for
hours worked over 40 hours per week, and Copeland Act-Anti-Kickback assuring
contractors do not induce an employee to give up part of their compensation they are
entitle to. This meeting will also serve to outline schedules for work, payments and other
discussions deemed necessary with the contractor.
The City will then issue a Notice to Proceed to the contractor allowing the contractor to
begin construction.
The contractor will be required to provide weekly signed certified payrolls to ensure
compliance with Labor Standards (Davis-Bacon, Copeland Act, and CWHSSA). The City's
staff or consultant will review the certified payrolls for compliance prior to any payments
to the contractor. Also, prior to payments being made to the contractor, the City's engineer
will conduct an onsite review of the work .accomplished to date, compare the
accomplishments to the work reported in the contractor's invoice and will sign off on any
pay requests certifying that the work reported by the contractor has been completed.
Prior to the final payment being made to the contractor, the City's engineer must inspect
the work site(s) and provide a Certification of Completion, and the City or its consultant
�q will confirm that all required documentation and reports from the contractor have been
received and are complete and in good order.
Civil Rights Compliance
The City will adhere to contract requirements, federal regulations and state laws and rules
in meeting Civil Rights requirements. To this end, the City will follow the Civil Rights
Compliance attachment to the CDBG agreement, adopting required policies, ordinances and
resolutions, designating various coordinators, advertising the coordinators' contact
information, conducting various required activities, and establishing various complaint
procedures and tracking logs.
The City will ensure compliance in regards to:
1. Affirmatively Furthering Fair Housing,
2. Equal Employment Opportunity (EEO),
3. Section 504 and the Americans with Disabilities Act,and
4. Section 3
Additionally, the City will maintain a list of minority and women business enterprises and
will take measures to ensure that when requesting bids, Minority and Women Business
Enterprises (MWBE) on this list are contacted and that contractors awarded CDBG funded
contracts are required to take measures to hire MWBE subcontractors and make efforts to
hire Section 3 residents for available work.
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Reporting
The City will provide the required reports as established in the Reports attachment to the
CDBG agreement. The City understands that is all reports are not submitted to DEO in an
acceptable manner, payments from DEO may be withheld until the reports are properly
completed and submitted. The following reports will be submitted to DEO through the
SERA system (or other DEQ specified means) by the required outlined dates:
1. Monthly Progress Reports will be submitted no later than 10 days following the
end of the month.
2. Quarterly Progress Reports or Quarterly Status Reports will be submitted no
later than the 10th of April,July, October and January.
3. Contract and Subcontract Activity forms, HUD 2516, reporting MWBE
participation as well as Section 3 participation, will be submitted no later than
April 15 and October 15.
4. Single or Program Specific Audit will be submitted no later than June 30, if the
City expends$750,000 or more in total federal funds from all sources. If the City
expends less than $750,000 in total federal funds, a DEO Audit Certification
Memo will be submitted no later than June 30. Submissions will be made to
Audi t@dea.myflorida.com, or as specified by the DEO staff and to the Florida
Auditor General through their website at https://flaauditor.gov,. Hard copies of
the audits may be submitted to DEO and the Audit General via the addresses
outlined in the CDBG agreement. r'"1
5. Audit Compliance Certification, attesting whether or not an audit submission
will be required, will be annually submitted no later than 60 days following the
end of the City's fiscal year.
6. An Administrative Closeout Report and supporting documentation will be
submitted no later than 60 days following the expiration of the CDBG agreement.
7. Section 3 Report, HUD 60002,will be annually submitted no later than July 30.
8. Any additional updates or reports as requested by DEO will be provided in a
timely manner.
Citizen's Complaints
The City will take prompt actions to address any complaints it receives and will make every
effort to resolve these complaints in a timely manner.
All complaints received, including verbal (phone calls, in person) and written, will be
documented in appropriate log sheets for general citizen's complaints, Fair Housing
complaints, EEO complaints and Section 504/ADA complaints. The City will notify its DEO
grant manager immediately upon receipt of any of CDBG grant related complaints and will
make efforts to address, assist, resolve and/or make referrals on complaints received,
whether verbal or written. The actions, results and conclusions of these complaints will be
recorded in the appropriate log sheets.
For a complaint to be formally processed,reviewed and responded to by the City in writing, r''�
the complaint must:
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P� 1. Be submitted in writing,
2. Include the complainant's full name,
3. Include the Complainant's Contact information and preferred method of
notification for communications regarding complaint (telephone; physical,
postal, and Email addresses), Nature of the complaint (CDBG or Other, please
specify), and
4. Include a summary of the complaint and desired remedy requested.
Additionally, the complainant should include previously contacted individuals concerning
the complaint and any supporting evidence.
The City will respond in writing to written complaints that meet the above criteria within
fifteen (15) days and may take additional measures to address and close the complaint.The
City's written response is not a guarantee of resolution to the complaint. CDBG grant
related complaints that are not resolved and closed within 30 days will be referred to the
City's DEO contract manager.
Records Retention and Access
The City will retain all grant related and grant agreement specified records and audits for a
period of five (5) years following the final audit after the grant closeout, or for six (6) state
fiscal years after all reporting requirements have been satisfied and final payments have
�1 been received; whichever period is longest. The City will provide access to these records
and audits to DEO, Florida's CFO, and the Auditor General upon request for a period of six
(6) years following the final audit, unless extended by DEO. The City understands that this
period for records retention and access will be extended if any litigation, claim,negotiation,
audit or other action involving the records has been started prior to the expiration of the
controlling periods. The City additionally understands that such extensions will be in place
until the completion of any associated actions and resolution of all associated issues have
been determined.
Public Records Requests
The City will directly respond to each CDBG agreement related public records request and
will notify DEO of such requests by email to PRRequest@deo.myflorida.com within one
business day following the date of the records request. Additionally, the City,upon request
from DEO's custodian of public records, will provide DEO records or allow inspection of
these records within a reasonable time. The City understands that it may be reimbursed for
the costs of preparing and providing these records as long as the costs do not exceed the
allowable costs outlined in Chapter 119, Florida Statutes. Furthermore, the City
understands that DEO may terminate the CDBG agreement if the City fails to provide
and/or allow access to public records.
Summary
Utilizing these procedures,the City will make it a priority to implement its CDBG programs
/0114\ in a manner that adheres to federal, state and local requirements, will ensure CDBG
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projects employ a quality and fiscally responsible process that provides a successful project
result in a timely manner.
n
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