LTC 116-2017 Repayment of Community Development Block Grant (CDBG) fundsM A SACH
OFFICE OF THE CITY MANAGER
NO. LTC #
116-2017
LETTER TO COMMISSION
TO: Mayor Philip Levine and Members o the City C. mission
FROM: Jimmy L. Morales, City Manager
DATE: February 28, 2017
SUBJECT: Repayment of Community Devel ment Block Grant (CDBG) funds
This Letter to Commission is to advise of the actions taken by the City to ensure federal compliance
with its funding of the construction of the Boys and Girls Club at Flamingo Park.
Shortly upon my arrival as City Manager, we embarked on a review of all City projects expending
federal funds. At that time, it was noted that City staff had failed to ensure compliance with the Davis
Bacon Wage Act for the Boys and Girls Club construction project. Despite efforts by current City
staff and the Boy and Girls Club personnel, we were unable to resolve some of the compliance
issues that occurred prior to 2013. In order to resolve the pending issues with the US Department of
Housing and Urban Development (HUD) and The Department of Labor, the City will be making
restitution in the amount of $15,978 for failing to ensure that certified payrolls and employee
interviews were completed for the project. Contingency funds will be used to pay HUD the
outstanding monies noted herein.
This is one of the last remaining items associated with the failures of the previous administration to
ensure the compliant use of federal funds awarded to the City. Please note that the City has
undertaken a variety of measures to ensure that all City-funded projects comply with federal rules
including the Davis Bacon Wage Act.
If you have any questions please see me or Maria Ruiz, Director of Housing and Community
Services.