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A MUNICIPAL ORDER APPROVING AND AUTHORIZING A MEMORANDUM OF
UNDERSTANDING APPOINTING PADUCAH MCCRACKEN COUNTY CONVENTION
CENTER CORPORATION AS AGENT FOR CITY FOR THE UNDERTAKING OF
IMPROVEMENT TO THE JULIAN CARROLL CONVENTION CENTER
WHEREAS, City of Paducah has determined that it is necessary and desirable that
additional improvements be undertaken to the Julian Carroll Convention Center, including related
and appurtenant costs (the "Public Project"); and
WHEREAS, City has financed the Public Project through a General Obligation Lease
Agreement in an aggregate principal amount not to exceed $3,000,000 (the "Financing Lease") dated
January 24, 2017 between City and Community Financial Services Bank pursuant to the provisions
of Section 65.940 through 65.956, inclusive, of the Kentucky Revised States, as amended; and
WHEREAS, it is in the best interest of City to appoint Paducah McCracken County
Convention Center Corporation ("CCC") to act as agent for and on behalf of City in the management
and coordination of the Public Project; and
NOW, THEREFORE, IT IS HEREBY ORDERED as follows:
Section 1. Authorization. The Board of Commissioners of the City of Paducah hereby
approves and the Mayor of the City of Paducah, Kentucky, is hereby authorized and directed to
enter into a Memorandum of Understanding (this "Agreement") between City and CCC
appointing CCC as Agent for and on behalf of City in the management and coordination of the
Public Project in substantially the form attached hereto as Exhibit A and made a part hereof. It is
hereby found and determined that this Agreement is to be entered into in furtherance of proper
public purposes of City and that it is necessary and desirable and in the best interests of City to
enter into this Agreement for the purposes therein specified.
Section 2. Severability. If any section, paragraph or provision of this Order shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this Order.
Section 3. Compliance With Open Meetings. The City Commission hereby finds
and determines that all formal actions relative to the adoption of this Order were taken in an open
meeting of this City Commission, and that all deliberations of this City Commission and of its
committees, if any, which resulted in formal action, were in meetings open to the public, in full
compliance with applicable legal requirements.
Section 4. Conflicts. All ordinances, resolutions, orders or parts thereof in conflict with
the provisions of this Order are, to the extent of such conflict, hereby repealed and the provisions
of this Order shall prevail and be given effect.
Section 5. Effective Date. This Order shall be in full force and effect on and after the
date as approved by the Board of Commissioners of the City of Paducah, Kentucky.
ATTEST:
"n �
City Clerk, Tammara Sanderson
37
Mayor Brandi Harless
Adopted by the Board of Commissioners, April 25, 2017
Recorded by City Clerk, April 25, 2017
\mo\MOU-Convention Center Improvements
W.
203668
EXHIBIT A TO THE MUNICIPAL ORDER
MEMORANDUM OF UNDERSTANDING
THIS MEMORANDUM OF UNDERSTANDING (this "Agreement") made and executed on
this day of April, 2017, by and between the CITY OF PADUCAH, KENTUCKY, a
municipal corporation and political subdivision of the Commonwealth of Kentucky, duly organized and
existing under and by virtue of the laws of the Commonwealth, having a mailing address of Post Office
Box 2267, Paducah, Kentucky 42002-2267, hereinafter referred to as "City," and PADUCAH
MCCRACKEN COUNTY CONVENTION CENTER CORPORATION, a non-profit Kentucky
Corporation, with its principal place of business located at 605 Broadway, Paducah, Kentucky,
hereinafter referred to as "Agent."
WITNESSETH:
WHEREAS, City has determined that it is necessary and desirable that additional
improvements be undertaken to the Julian Carroll Convention Center, including related and
appurtenant costs (the "Public Project"); and
WHEREAS, City has financed the Public Project through a General Obligation Lease
Agreement in an aggregate principal amount not to exceed $3,000,000 (the "Financing Lease") dated
January 24, 2017 between City and Community Financial Services Bank pursuant to the provisions
of Section 65.940 through 65.956, inclusive, of the Kentucky Revised States, as amended; and
WHEREAS, City desires to appoint Agent to act as agent for and on behalf of City in the
management and coordination of the Public Project, to which Agent is agreeable; and
WHEREAS, the parties have come to an agreement regarding these premises, and do now
desire to formalize such agreement in writing.
NOW, THEREFORE, for and in consideration of the foregoing premises, and for other
valuable consideration, the legal adequacy and sufficiency of which is hereby acknowledged by all
parties hereto, the parties do covenant and agree as follows:
1. Creation of Agency City does hereby select, appoint, and empower Agent to act as
its agent and for and on behalf of City to do or perform the following functions in connection with
the Public Project:
a. Manage the Public Project activities;
b. Provide a project manager to oversee the Public Project;
C. Manage third party costs for the completion of the Public Project and prepare
a budget of such costs for the approval of the City Finance Director;
d. Provide necessary facilities and support services for the Public Project;
e. Consult with and advise contractors, designers and other third parties for the
completion of the Public Project, with express authority to negotiate and entered into such
agreements, contracts, and proposals as Agent deems necessary for the completion of the Public
Project in accordance with the Financing Lease;
f. Accept or reject work provided by contractors or third parties;
e. Approve or disapprove any request made by a contractor or third party for
payment in connection with the Public Project;
g. Maintain accurate records including invoices, change orders, construction
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logs, and other pertinent documentation regarding the Public Project;
h. Assure contractor wage and hour compliance;
i. Provide monitoring and auditing compliance; and
Perform any other task necessary during the construction process.
2. Compensation: It is agreed and understood by Agent that there will be no
compensation paid to Agent for services rendered hereunder and Agent shall bear its own costs and
other expenses incurred in connection with this Agreement
3. Term of Agency The term of the agency created hereunder shall commence on
the effective date of this agreement and shall terminate on the completion of the Public Project in
accordance with the Financing Lease. Notwithstanding the foregoing, City shall have the right to
terminate this Agreement by providing fifteen (15) days written notice to Agent.
4. Compliance. All services to be performed herein by Agent shall be in
accordance with all applicable local, state, and federal laws, codes, regulations or ordinances,
including but not limited to the City's Procurement Code.
5. Indemnification: Agent shall indemnify City and save City harmless from any claim,
demand, or cause of action asserted against City for any act or omission which was committed by
Agent in performance of its services under this Agreement, which act or omission was not approved
or otherwise authorized by City, and from any and all losses, costs, and expenses relating thereto,
including reimbursement of City's attorney fees.
6. Disbursements. Net proceeds from the Financing Lease, in the amount of
$1,665,407.52, have been deposited with the City Finance Director into the Acquisition Fund. The
City Finance Director may disburse moneys in the Acquisition Fund for the payment of and
reimbursement for payment of the Public Project costs and any other costs, expenses, fees and
charges properly chargeable to the Public Project. The City Finance Director shall continue to hold
the Acquisition Fund and shall continue to make disbursements from the Acquisition Fund upon the
written request and certification by the Agent. The written request and certification shall include
without limitation the following:
a.
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C.
The amount of the disbursement requested;
A specific description of the improvements that Agent seeks payment;
A certification by Agent as to the costs of the improvements that Agent seeks
payment and evidence that Agent has accepted those improvements;
d. Invoices and other supporting documents or evidence of the costs for which Agent
seeks payment; and
e. Any other supporting documents or items deemed necessary by The City Finance
Director.
7. Miscellaneous Provisions: This Agreement shall be construed under the laws of the
State of Kentucky and any legal action pertaining to or arising out of this Agreement shall be venued
in either the Circuit Court of McCracken County, Kentucky. It is understood and agreed by and
between the parties that all prior statements, promises, understandings, and undertakings are merged
herein by reference, and this agreement constitutes the entire agreement reached by and between the
parties. Agent shall not assign this Agreement without the prior written consent of City. This
agreement shall be binding upon the parties hereto, their permitted successors and assigns. This
Agreement shall not be modified, amended, altered or changed except with the written consent of the
parties
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8. Effective Date: This Agreement shall be effective upon the approval of the City
Commission and execution by a representative of both parties.
IN WITNESS WHEREOF, our signatures on the date first above written.
CITY OF PADUCAH, KENTUCKY MCCRACKEN COUNTY CONVENTION
CENTER CORPORATION
1-2
Mayor Brandi Harless
Date:
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