HomeMy WebLinkAbout17-031 Adopting a Policy for Administration of Federal Award Grant FundsResolution 17-031
RESOLUTION NO. 17-031
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON, ADOPTING A POLICY FOR ADMINISTRATION OF FEDERAL
GRANT FUNDS
WHEREAS, Title 24 Section 85.36(b)(3) of the United States Code and other applicable
federal law requires recipients of federal grant funds to adopt a "code of conduct" related to the
administration of contracts supported by federal grant funds; and
WHEREAS, the City has from time to time adopted the then -current version of language
required to comply with this requirement both by administrative action and by legislative action
(Resolution 16-042); and
WHEREAS, the uniform guidance for grant recipients has been recently updated, making it
necessary to update our code of conduct language;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Townsend as follows:
Section 1. The City adopts the Policy for Administration of Federal Award Standards in
substantially the same form as in Exhibit A.
Section 2. All prior administrative policies and practices inconsistent with the new Policy,
including those in Resolution 16-042, are superseded.
ADOPTED by the City Council of the City of Port Townsend at a special meeting
thereof, held this 10th day of July, 2017,
Deborah S. �Sliots
Mayor
Attest:
Joanna Sanders, CMC
City Clerk
Approved as to form:
Steven L. Gross
City Attorney
Resolution 17-031 Exhibit A
Page 1 of 4
EXHIBIT A
CITY OF PORT TOWNSEND FEDERAL AWARD STANDARDS
PURPOSE
Establish and maintain internal controls that provide reasonable assurance that Federal awards
are being managed in compliance with all federal regulations and with the terms and conditions
of the award. The City of Port Townsend will follow the Uniform Guidance, the Local Agency
Guidelines (LAG) distributed by The Washington State Department of Transportation
(WSDOT), and the City of Port Townsend's Comprehensive Financial Management Policy
Guidelines.
INTERNAL CONTROLS
The City of Port Townsend will maintain effective internal control over the Federal award
providing reasonable assurance that the City of Port Townsend is managing the Federal
award in compliance with Federal statutes, regulations, and the terms and conditions of the
Federal award.
• Take prompt action when instances of noncompliance are identified
including noncompliance identified in audit findings.
• Take reasonable measures to safeguard protected personally identifiable information
and other information the Federal awarding agency or pass-through entity designates
as sensitive.
ADVANCE PAYMENTS AND REIMBURSEMENTS
Payment methods must minimize the time elapsing between the transfer of funds from the
United States Treasury or the pass-through entity and the disbursement by the City of Port
Townsend whether the payment is made by electronic funds transfer, or issuance or
redemption of checks, warrants, or payment by other means.
• Advanced payments must be limited to the minimum amounts needed and be timed to
be in accordance with the actual, immediate cash requirements of the City of Port
Townsend to carry out the purpose of the approved program or project. Any advanced
payments must be consolidated to cover anticipated cash needs.
• The City of Port Townsend shall minimize the time elapsed between receipt of federal
aid funds and subsequent payment of incurred costs.
ALLOWABLE COSTS
Federal awards will meet the following general criteria to be allowable except where otherwise
authorized by statute:
• Be necessary and reasonable for the performance of the Federal award;
• Conform to any limitations or exclusions set forth in these principles or in the
Federal award as to types or amount of cost items;
• Be consistent with policies and procedures that apply uniformly to both
Federally- financed and other activities of the City of Port Townsend;
• Be accorded consistent treatment;
• Not be included as cost or used to meet cost sharing or matching requirements of
any other Federally -financed program in either the current or a prior period;
• Be adequately documented.
Resolution 17-031 Exhibit A
Page 2 of 4
PROCUREMENT
When procuring property and services under a Federal award, the City of Port Townsend will
follow 2 CFR §200.318 General procurement standards through §200.326 Contract
provisions or City of Port Townsend purchasing procedures whichever is more restrictive.
The following table outlines procurement requirements when using Federal funds.
_____...._......._...................... ____.
Procurement Method
..........................._.................................._
Micro -Purchase - No
required quotes. However,
must consider price as
reasonable, and, to the
extent practical, distribute
equitably among
suppliers.
__wwwwww .ww Goods
$3,000 or less
Must use more restrictive
$3,000 federal threshold
Services
$3,000 or less
Must use more restrictive
$3,000 federal threshold
Small Purchase
$3,000 - $40,000 (Single $3,000 - $40,000 (Single
Procedures
trade); $3,000 - $65,000 trade); $3,000 - $65,000
(Informal) - Obtain/
(Multi trade); $3,000 - (Multi trade); $3,000 -
document quotes
$50,000 (Non -Public $50,000 (Non- Public
from a reasonable number
Works projects) Works projects)
of qualified sources (at
least three).
Must use more restrictive Must use more restrictive
City threshold instead of City threshold instead of
$150,000 Federal threshold $150,000 Federal threshold
SealedCompetitive
$40,000 or more (Single $40,000 or more (Single
Bids (Formal)
trade); $65,000 or more trade); $65,000 or more
(Multi trade); $50,000 or (Multi trade); $50,000 or
more (Non -Public Works more (Non -Public Works
Proj ects) Projects)
Must use more restrictive Must use more restrictive
City threshold instead of City threshold instead of
$150,000 Federal threshold $150,000 Federal threshold
Competitive -proposals
p
t..................................f.....................................
..e use o
U.Se..d w e ..............................................................................................................r..................ate for the
henconditions are not approp
sealed bids.
• Must publicize request for proposals soliciting
from an adequate number of qualified sources
• Maintain written method for conducting technical
evaluations
• Contract must be awarded to the responsive and
responsible firm
.......... ......
whose proposal is most advantageous to the program
.. �m _ . m _.
Non-competitive proposals
Appropriate only when:
• Available only from a single source; or
• Public emergency; and
• Expressly authorized by awarding or pass- through
agency in response to written request from the City
of Port Townsend; or
• After soliciting a number of sources, competition
is deemed inadequate.
Resolution 17-031 Exhibit A
Page 3 of 4
Contracts for more than the simplified acquisition threshold currently set at $150,000 must
address administrative, contractual, or legal remedies in instances where contractors violate
or breach contract terms, and provide for such sanctions and penalties as appropriate.
Contracts and sub -grants of amounts in excess of $150,000 require that the City of Port
Townsend will comply with all applicable standards, orders or regulations issued pursuant to
the Clean Air Act and the Federal Water Pollution Control Act.
The City of Port Townsend will monitor procurements to avoid duplicative purchases, and
exhaust all mandated sources before soliciting new sources. The City will also continue to enter
into inter -entity agreements to realize cost savings for shared goods and services when possible.
The City will verify and document that vendors are not suspended or debarred from doing
business with the Federal government.
SINGLE AUDIT ACT
The City of Port Townsend, as a recipient of Federal funds, shall adhere to the Federal
regulations outlined in 2 CFR §200.501 as well as all applicable Federal and State statutes
and regulations.
CLOSURE
A project agreement end date will be established in accordance with 2 CFR §200.309. Any
costs incurred after the project agreement end date are not eligible for Federal reimbursement.
Resolution 17-031 Exhibit A
Page 4 of 4
CITY OF PORT TOWNSEND CODE OF CONDUCT
PURPOSE
The purpose of the Code of Conduct is to ensure the efficient, fair and professional
administration of federal grant funds in compliance with 2 CFR §200.112, 2 CFR §200.318
and other applicable federal and state standards, regulations, and laws.
APPLICATION
This Code of Conduct applies to all elected officials, employees or agents of the City of Port
Townsend engaged in the award or administration of contracts supported by federal grant
funds.
RE L4REM ANTS
No elected official, employee or agent of the City of Port Townsend shall participate in the
selection, award or administration of a contract supported by federal grant funds if a conflict of
interest, real or apparent, would be involved. Such a conflict would arise when any of the
following has a financial or other interest in the firm selected for award:
• The City employee, elected official, or agent; or
• Any member of their immediate family; or
• Their partner; or
• An organization which employs, or is about to employ any of the above.
The City of Port Townsend's elected officials, employees or agents shall neither solicit nor
accept gratuities, favors, or anything of monetary value from contractors, potential
contractors or subcontractors.
IN91u1D1111DO
To the extent permitted by federal, state or local laws or regulations, violation of these
standards may cause penalties, sanctions or other disciplinary actions (up to and including
employment or contract termination) to be taken against the City of Port Townsend's elected
officials, employees or agents, or the contractors, potential contractors, subcontractors or their
agents. Any potential conflict of interest will be disclosed in writing to the Federal awarding
agency or pass-through entity in accordance with applicable Federal awarding agency policy.