Onsite Monitoring ReportRECEIVED
!��' FEB 10 2014
Rick Scott `�" Jesse Panuccio
GOVERNOR EXECUTIVE DIRECTOR
FLORIDA DEPARTMENTo
ECONOMIC OPPORTUNITY
January 31, 2014
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CERTIFIED MAIL RETURN RECEIPT REQUESTED va 1 S jz%
The Honorable Sylvia Murphy, Mayor V1nence1D89t.
Monroe County
9400 Overseas Highway, Suite #210
Marathon, Florida 33050
Re: Florida Community Development Block Grant (CDBG) Program
Disaster Recovery Initiative Contract No.: 10DB-K4-11-54-02-K 24
Monroe County On -Site Monitoring Report — March 27-28, 2013
Dear Mayor Murphy:
During the week of March 27-28, 2013, Adriane Burgess, a representative of the Department of
Economic Opportunity (DEO), met with representatives of your community to monitor the CDBG
Disaster Recovery grant identified above. This letter, which contains no "findings" and no "concerns," is
a summary of that visit. Technical Assistance was provided by DEO via request from the Recipient
(Monroe County) for various topics including procedures for submitting a contract modification request
and Request for Funds (RFF), construction phase and other grant -related items. Monitoring is based on
an examination of documentation that supports the grant recipient's compliance with the CDBG
program rules, state statutes, and federal regulations. DEO monitored the following areas for
compliance.
• Financial Management Transaction Testing
• Housing Rehabilitation
• Labor Standards
• Procurement
• Program Administration
The following is a summary of the areas examined and the results of the monitoring.
Financial Management Transaction Testing
DEO reviewed various financial statements through the Recipient's financial management system to
ensure it maintained proper documentation (invoices, payment vouchers, detailed journal entries and
ledger postings). A sample of request for funds was traced through the financial management system to
verify the basis upon which the request was made. At this time, the Recipient has submitted a total of
Florida Department of Economic Opportunity I Caldwell Building 1 107 E. Madison Street I Tallahassee, FL 32399
866.FLA.2345 1850.245.7105 1850.921.3223 Fax
www.florida4obs.org I www.twitter.com/FLDEO I www.facebook.com/FLDEO
An equal opportunity employer/program. Auxiliary aids and services are available upon request to individuals with disabilities. All voice
telephone numbers on this document may be reached by persons using TTY/TDD equipment via the Florida Relay Service at 711.
The Honorable Sylvia Murphy, Mayor
January 31, 2014
Page 2 of 4
eight (8) payment requests for reimbursement. The Recipient plans to submit RFF number nine (9) via
eCDBG to DEO for review. For this visit, Requests for Funds (RFF) numbers six (6), seven (7) and eight (8)
were reviewed for this grant. Additionally, DEO traced the following transactions through the
Recipient's financial system:
1. Check/Invoice #106864
MCF Construction, Inc.
$
2,140.00
2. Check/Invoice #106889
3`d Generation Construction, Inc.
$
3,770.00
3. Check/Invoice #574407
MCF Construction, Inc.
$
11,240.00
4. Check/Invoice #575292
Meridian Comm. Serv. Group, Inc. (GSG)
$
7,500.00
5. Check/Invoice #582053
Mailloux & Sons, Inc.
$
74,556.00
6. Check/Invoice #584633
Royal Crest Construction, Inc.
$
82,335.08
There are no findings or concerns.
Housing Rehabilitation
The Recipient proposed to repair/rehab a total of 130 single-family housing units within the Recipient's
jurisdiction. At the time of monitoring, a total of nineteen (19) are under construction and forty-six (46)
housing units are complete.
DEO reviewed a sample of two (2) of the replacement housing files for compliance with program
requirements, including consistency with the Recipient's adopted Housing Assistance Plan (HAP). Each
file was examined to determine whether the Recipient was reviewing status of work completion prior to
each partial payment to the contractor, and that each unit was being properly inspected during
construction and at construction end to issue a certificate of occupancy or other similar document.
There are no findings or concerns.
Labor Standards
The Davis -Bacon Act and other related acts require federal grant recipients to monitor construction
contractors and subcontractors to ensure that they comply with specific labor standard requirements.
The series of reviews for Mailloux and Sons, Inc. along with Affordable Asphalt, for the American with
Disabilities Act (ADA) Public Facilities Site Improvements -Segments I and II projects, consisted of
monitoring payrolls and project files to determine whether the Recipient is documenting the following:
I . The proper wage decision is included in each contract.
2. Any needed wage conformance requests are processed.
3. Payrolls are being obtained and reviewed.
4. Employee interviews are being conducted.
5. Any problems that arise are resolved in a timely manner.
There are no findings or concerns.
The Honorable Sylvia Murphy, Mayor
January 31, 2014
Page 3 of 4
Procurement
CDBG-funded grants, including grant modifications, must comply with applicable federal procurement
regulations and state laws. The principal federal procurement regulation is contained in 24 CFR 85.36.
Procurement of certain professional services is also subject to Section 287.055, Florida Statutes, (also
known as the Consultants Competitive Negotiation Act, or CCNA). A review of procurement of
construction contracts for Mailloux and Sons, Inc. was conducted. No breach of statutory, regulatory, or
contractual provisions were noted under this area during the visit.
There are no findings or concerns.
Program Administration
This review focuses on whether the Recipient has a project management system that complies with
program requirements. DEO reviewed the filing system and record retention procedures for compliance
with 24 CFR Section 570.490 (b), (c), and (d). Project progress was compared to the Work Activity Plan
to determine on -time performance and expenditures. If non-CDBG funds were pledged in the
application, DEO reviewed the amount expended to date. If program income was generated, its
disposition was examined. Finally, if the Recipient received a citizen complaint, the file was reviewed to
ensure that the Recipient followed its Citizen Participation Plan while resolving the complaint. The
Florida Human Relations Commission (FHRC) maintains all beneficiary data information/updates and is
available to assist communities in resolving complaints that are reported.
There are no findings or concerns.
Additional Comments
Overall, the Recipient has made significant progression on its current projects for this grant. At this
time, the Recipient had recently submitted a contract modification request that included a time
extension and revisions to the activity work plans. This request was reviewed and approved by DEC.
The Recipient has continued to show progression by submitting regular drawdown requests which has
reduced its remaining balance.
After this visit, DEO was requested by the Recipient to conduct a Technical Assistance (TA) visit during
the month of September 2013. During this TA visit, DEO met with the County Attorney along with
representatives from the Engineering Department working in conjunction with the Monroe County
Housing Authority to discuss the status of phases I and II of the American with Disabilities Act (ADA)
Compliance (Public Facility Site Improvements) project. As mentioned earlier, this project proposed
repairing numerous work sites along the first set of mile markers located throughout the County. During
this meeting, DEO was informed that the negotiations between the County and the former contractor,
Mailloux and Sons, Inc. were recently concluded and an agreement was made. This agreement enabled
the County to move forward with these phases of the project. The Engineering Department provided
The Honorable Sylvia Murphy, Mayor
January 31, 2014
Page 4 of 4
additional details as to what the new plans/timeline would be for completing phases I and II. A detailed
tour was conducted of these project sites and additional updates and revisions to the plans and specs
were provided.
All of the relevant documentation regarding the agreement and Mailloux and Sons, Inc. was provided to
DEO and will be kept with the grant record files onsite as requested. The County has paid Mailloux and
Sons, Inc. for the work that was inspected and completed. All of the individuals impacted by the Davis -
Bacon issues have been identified and paid for their services. All other relevant documentation and files
for the individuals will be maintained onsite for review as requested.
Please be aware that this report does not relieve your jurisdiction of its obligation to continue to
administer the grant according to federal and state laws, program rules, and sound management
practices. There are no future monitoring visits scheduled for this grant.
DEO appreciates the helpful and cooperative attitude of those who provided assistance during the visit.
If you have questions regarding this monitoring report or need additional assistance or information,
please call Adriane Burgess, Government Operations Consultant II, at (850) 717-8444 or contact him via
email at adriane.burgess@deo.myflorida.com.
Sincerely,
Monique H.'Kabitzke
DRI Planning Manager
MHK/ab
cc: Mr. John O'Brien, Project Manager, Monroe County Housing Authority
Mr. Mark A. Nixon, Project Management Consultant, Government Services Group, Inc. -
Community Services Division (formerly Meridian Community Services Group, Inc.)