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HomeMy WebLinkAboutCCMPacket2013-03-18CITY COMMISSION MEETING AGENDA FOR MARCH 19, 2013 5:30 P.M. ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE — Cecilia Kaler ADDITIONS/DELETIONS PRESENTATION: Civic Beautification Dogwood Trail — H. BARBOUR I. MINUTES II. MUNICIPAL ORDERS A. Personnel Changes B. Request for Penalty & Interest Waiver for Employee Payroll Tax —J.PERKINS C. Adopt PHA Annual Plan for Section 8 Housing — D. FUGATE D. Adopt PHA Administrative Plan for Section 8 Housing — D. FUGATE E. Adopt Revised Section 8 Housing Utility Allowances — D FUGATE F. Amend Economic Incentives — CITY MGR III. ORDINANCES -ADOPTION A. Greenway Village -Higdon Development — S. ERVIN B. Noble Park Spray Park Bid Approval — M THOMPSON C. Amend Animal — Drawn Carriage for Hire — M. THOMPSON D. Contract for Purchase of Two Fire Trucks — R. MURPHY E. Purchase Street Sweeper — R. MURPHY F. Alley Closure from Caldwell to Norton Streets between South 9' Street and Walter Jetton Blvd — R.MURPHY G. Interlocal Agreement between the City and County to Finance, Lease and Construction a Customer Care Center — CITY MGR VI. CITY MANAGER REPORT V. COMMISSIONER COMMENTS VI. PUBLIC COMMENTS VII. EXECUTIVE SESSION CITY OF PADUCAH March 19, 2013 Upon the recommendation of the City Manager, the Board of Commissioners of the City of Paducah order that the personnel changes on the attached list be approved. Date CITY OF PADUCAH PERSONNEL ACTIONS March 19, 2013 PAYROLL ADJUST MENTS/TRANSFERSIPROMOTIONSITEMPORARYASSIGNMENTS PREVIOUS POSITION CURRENT POSITION NCS/CS FLSA EFFECTIVE DATE AND BASE RATE OF PAY AND BASE RATE OF PAY FIRE SUPPRESSION Johnson, David Fire Fighter Relief Driver NCS Non -Ex March 14, 2013 $13.35/Hr $13.92/Hr Agenda Action Form Paducah City Commission Meeting Date: 03/19/2013 Short Title: Hultman — request to waive payroll tax late payment penalty (Q/E 09/30/2011). ❑Ordinance ❑ Emergency ® Municipal Order ❑ Resolution ❑ Motion Staff Work By: Jonathan Perkins, Angela Copeland Presentation By: Jonathan Perkins Background Information: Written law governs the people of Paducah, not unlike the people of the United States. The purpose of the law is to provide all citizens the same fair and consistent treatment. Further, written law serves to prevent arbitrary behavior by government and allows for equal treatment of all citizens. It should clearly describe what behavior is expected and the consequences for failure to meet those expectations. Paducah Code of Ordinances, Section 106-184 clearly states that payroll taxes are to be remitted to the Finance Director by the last day of the month following the end of the calendar quarter. Simply put, an employer, in this case Hultman, has one month to forward all taxes withheld from their employees' paychecks to the City. The employer may hold the employees' taxes for most of the quarter and draw interest; however, they must pay the City in a timely manner as prescribed by ordinance, or face the consequence of such failure. The Law requires a penalty for failure to follow it. [Note: The last request of this nature was denied by the City Commission in June 2010. The penalty and interest was for Lourdes' failure to remit employee payroll taxes in a timely manner. The USPSpostntark was 2 days past due, similar to this situation. The Lourdes P&J was much greater in amount.] Hultman asks that you overlook and waive their failure to comply with the Law and not suffer them the consequences of their actions. Funds Available: Account Name: NA ZOO Staff Recommendation: ance Staff recommends that the Law be applied consistently to all, including Hultman and that the same penalty be applied. Attachments: o Hultman request letter for penalty waiver, dated January 171 2013 o City of Paducah letter to request penalty for late payment, dated January 7, 2013 o Penalty & interest calculation: $215.79 (5% penalty & 1 % for one month interest) S: Jon Perkins\Word\Business License -Payroll Tax\Agenda Request - Huhnian; Qe 9-30-2011.Doc Agenda Action Form Department Head City Clerk City Manager Page 2 =-3-, .7IC,NS =4<9 N PR MTI 44• rr M&9AVQR*r AD �GCIA TIG3 ffl 3u1w V.$" Yln-r.o3.. 3107• P.d.h, Kr41141aID Phone (270)443-0000• Fax (270) 443-1786 January 17, 2013 Attn: City Commission City of Paducah P 0 Box 2697 Paducah KY 42002 Re: Payroll Account 07657 City Commission: We are in receipt of the attached letter regarding a penalty and interest due from our 2011, 3rd quarter payroll tax return. This is the first notice we have received and the penalty and interest amount was from over 12 months ago. There was no detail breakdown of penalty or interest included in this notice and we had approximately 10 days to remit payment to avoid further interest. We contacted the Finance Department immediately. According to our records, the tax return and check were mailed on October 28", 2011, which allowed ample time for the return to be received. The Finance Department stated the envelope was postmarked by Hultman on October 28'h but had a federal post mark date of November 2nd. I cannot explain this discrepancy in time between the Oct. 28" and Nov 2nd, but we have no control over our mail once it is put into the Federal system. Our current bookkeeper has submitted payroll reports for over 15 years and has never been late on a payment. We would like to request the commission to consider a waiver of this penalty and interest for our company based on our history of tirpely payments. Thank you in advance for your consideration of this matter. I may be contacted at 270-443-0000 or mikew@hultman-inc.com. Sincerely, lF Mike Wyatt President 2600 Wayne Sullivan Drive' P.O. Box 3307' Paducah, Kentucky 420023307 (270) 443-0000' Fax (270) 443.1786 www.hultman-inc.com January 7, 2013 ML Wyatt Operations DBA Hultman P.O. Box 3307 Paducah, KY 42002 Dear Sir or Madam: CITY OF PADUCAH Pad Bh,KY42002-2697 KENTUCKY Faxne(270))443-66533 FINANCE DEPARTMENT 07657 Upon reviewing our files, we have noticed that your 2011 third quarter payroll account is delinquent and requires immediate attention. The total due at this time is penalty and interest in the amount of $215.79.If you need additional information please contact our office. Your total payment of $215.79 must be postmarked by January 21, 2013 to avoid further interest. Please remit your payment to the City of Paducah, Department of Finance with the correct fees. CITY OF PADUCAH PO BOX 2697 PADUCAH KY 42002-2697 Sincerely, 9Gc45Urfa J3wtwt Account Clerk Finance Department City of Paducah Phone:270-444-8595 Fax: 270- 443- 6653 kbrown@ci.paducah.ky.us s- Run Date: 3/14/2013 3:18 PM For Quarter Ending: Due Date: USPS Postmark: 30 -Sep -11 31 -Oct -11 Monday 2 -Nov -11 Wednesday Employee Earnings $179,839.91 Payroll Tax Withheld & Paid $ 3,596.78 Late Penalty - 5% $ 179.83 Interest - 1% $ 35.96 Total P & I Due $ 215.79 S:AJon Perkins\Excel\Busines s LicenseUmltman - qe 9-30-2011 payroll tax penalty & interest -- March 2013 ❑ PA Agenda Action Form Paducah City Commission Meeting Date: 03/19/2013 Short Title: Adopt PHA Annual Plan for Section 8 Housing Ordinance ❑ Emergency ® Municipal Order ❑ Resolution ❑ Motion ❑ Staff Work By: Danny W. Fugate Presentation By: Danny W. Fugate Background Information: The Section 8 Housing Program is required by federal regulations to submit an Annual Plan that describes the mission of the Agency for FY 2013. Staff has prepared the Plan, provided an opportunityfor public review & comment, and submission is required prior to April 15, 2013. The Plan updates the Five Year Plan submitted in 2010 and notates any substantial deviations. Goal: Strong Economy® Quality Services❑ Vital Neighborhoods❑ Restored Downtowns[] Funds Available: Account Name: N/A F7 Account Number: N/A Finance Staff Recommendation: Adopt PHA Annual Plan for the City of Paducah Section 8 Housing Choice Voucher Program Attachments: PHA Annual Plan 2013 Department Head City Clerk City Manager MUNICIPAL ORDER NO. A MUNICIPAL ORDER ADOPTING "CITY OF PADUCAH, KENTUCKY, PUBLIC HOUSING AGENCY ANNUAL PLAN FOR SECTION 8 HOUSING CHOICE VOUCHER PROGRAM FOR FISCAL YEAR 2013" WHEREAS, it is the intent of the City of Paducah to submit an Annual Plan, as required, to the U.S. Department of Housing & Urban Development to provide decent, safe, and sanitary rental housing assistance for eligible families and provide opportunities, promote self- sufficiency and economic independence for Section 8 participants. BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION L That the "City of Paducah, Kentucky, Public Housing Agency Annual Plan for Section 8 Housing Choice Voucher Program for Fiscal Year 2013" is hereby adopted in its entirety. SECTION 2. This Order will be in full force and effect from and after the date of its adoption. Mayor ATTEST: Tammara S. Sanderson, City Clerk Adopted by the Board of Commissioners, March 19, 2013 Recorded by Tammara S. Sanderson, City Clerk, March 19, 2013 \mo\sec8-annual plan 2013 PHA 5 -Year and U.S. Department of Housing and Urban OMB No. 2577-0226 Development Expires 4/30/2011 Annual Plan I Office of Public and Indian Housing 1.0 PHA Information PHA Name: City Of Paducah Section 8 Housing Program PHA Code: KY 137 PHA Type: ❑ Small ❑ High Performing ❑ Standard ® HCV (Section 8) PHA Fiscal Year Beginning: (MM/YYYY): 07/01/2013 2.0 Inventory (based on ACC units at time of FY beginning in 1.0 above) Number of PH units: Number of HCV units: 554 3.0 Submission Type ❑ 5 -Year and Annual Plan ® Annual Plan Only ❑ 5 -Year Plan Only 4.0 PHA Consortia ❑ PHA Consortia: (Check box if submitting ajoint Plan and complete table below.) No. of Units in Each PHA Program(s) Included in the Programs Not in the Program Participating PHAs Code Consortia Consortia PH HCV PHA 1: PHA 2: _ PHA 3: 5.0 5 -Year Plan. Complete items 5.1 and 5.2 only at 5 -Year Plan update. 5.1 Mission. State the PHA's Mission for serving the needs of low-income, very low-income, and extremely low income families in the PHA's jurisdiction for the next five years: 5.2 Coals and Objectives. Identify the PHA's quantifiable goals and objectives that will enable the PHA to serve the needs of low-income and very low-income, and extremely low-income families for the next five years. Include a report on the progress the PHA has made in meeting the goals and objectives described in the previous 5 -Year Plan. 6.0 PEW Plan Update (a) Identify all PHA Plan elements that have been revised by the PHA since its last Annual Plan submission: NONE (b) Identify the specific location(s) where the public may obtain copies of the 5 -Year and Annual PHA Plan. For a complete list of PHA Plan elements, see Section 6.0 of the instructions. Paducah City Hall, Room 203, 300 S. 5`a Street, Paducah KY 42003 7.0 Hope Vl, Mixed Finance Modernization or Development, Demolition and/or Disposition, Conversion of Public Housing, Homeownership Programs, and Project -based Vouchers Include statements related to these programs as applicable. 8.0 Capital Improvements. Please complete Parts 8.1 through 8.3, as applicable. Capital Fund Program Annual Statement/Performance and Evaluation Report. As part of the PHA 5 -Year and Annual Plan, annually 8.1 complete and submit the Capital Fund Program Annual StaternentlPerjormance and Evaluation Report, form HUD -50075.1, for each current and open CFP grant and CFFP financing. Capital Fund Program Five -Year Action Plan. As part of the submission of the Annual Plan, PHAs must complete and submit the Capital Fund 8 2 Program Five -Year Action Plan, form HUD -50075.2, and subsequent annual updates (on a rolling basis, e.g., drop current year, and add latest year for a five year period). Large capital items must be included in the Five -Year Action Plan. 83 Capital Fund Financing Program (CFFP). ❑ Check if the PHA proposes to use any portion of its Capital Fund Program (CFP)/Replacement Housing Factor (RHY) to repay debt incurred to finance capital improvements. Page 1 of 2 form HUD -50075 (4/2008) 9.0 Housing Needs. Based on information provided by the applicable Consolidated Plan, information provided by HUD, and other genemuy avanaorc data, make a reasonable effort to identify the housing needs of the low-income, very low-income, and extremely low-income families who reside in the jurisdiction served by the PHA, including elderly families, families with disabilities, and households of various races and ethnic groups, and other families who are on the public housing and Section 8 tenant -based assistance waiting lists. The identification of housing needs must address issues of affordability, supply, quality, accessibility, size of units, and location. The current waiting list of KY137 consists of (18) elderly, (109) disabled and (539) families totaling 666 applicants. There are (321) African American, (338) White, (5 ) Hispanic and (2) other race applicants on our waiting list. Local data and consolidated plan indicates the need for continued quality, affordable housing opportunities in our area. Families requiring two or more bedrooms continue to be greatest need with a growing population of disabled and elderly households. The goals and objectives of the Commonwealth of KY Consolidated Plan supports the PHA Plan with the strategic goals of (a) to preserve the supply of safe, decent, sanitary and affordable rental housing for low- income families through tenant based rental assistance (b) to promote self-sufficiency for low income families through financial assistance, homeownership counseling and other related educational opportunities (c) to promote housing opportunities for persons with special housing needs by increasing awareness and providing technical assistance to housing and service providers and (d) to encourage and strengthen partnerships among local governments, public agencies, for-profit and nonprofit organizations through enhanced coordination for the effective and efficient use of affordable housing resources. These goals and objectives parallel and support the PHA Plan goals and objectives (a) to improve the quality of assisted housing (b) to increase assisted housing choices and (c) to promote self-sufficiency and asset development of assisted families and (e) to ensure equal housing opportunities. 11.0 1 Required Submission for HUD Field OMee Review. In addition to the PHA Plan template (HUD -50095), PHAs must submit the following documents. Items (a) through (g) may be submitted with signature by mail or electronically with stormed signatures, but electronic submission is encouraged. Items (h) through (i) must be attached electronically with the PHA Plan. Note: Faxed copies of these documents will not be accepted by the Field Office. (a) Form HUD -50077, PHA Certifications of Compliance with the PHA Plans and Related Regulations (which includes all certifications relating to Civil Rights) (b) Form HUD -50070, Certificationfor a Drug -Free Workplace (PHAs receiving CFP grants only) (c) Fort HUD -50071, Certification of Payments to Influence Federal Transactions (PHAs receiving CFP grants only) (d) Form SF -LLL, Disclosure of Lobbying Activities (PHAs receiving CFP grants only) (e) Form SF -LLL -A, Disclosure of Lobbying Activities Continuation Sheet (PHAs receiving CFP grants only) (f) Resident Advisory Board (RAB) comments. Comments received from the RAB must be submitted by the PHA as an attachment to the PHA Plan. PHAs must also include a narrative describing their analysis of the recommendations andthe decisions made on these recommendations. (g) Challenged Elements (h) Form HUD -50075.1, Capital Fury! Program Annual StatemenUPerformance and Evaluation Report (PHAs receiving CFP grants only) (i) Form HUD -50075.2, Capital Fund Program Five -Year Action Plan (PHAs receiving CFP grants only) Page 2 of 2 tort HUD -5U075 (4/20(10) Strategy for Addressing Housing Needs. Provide a brief description of the PHA's strategy for addressing the housing needs of families in the jurisdiction and on the waiting list in the upcoming year. Note: Small, Section 8 only, and High Performing PHAs complete only for Annual Plan submission with the 5 -Year Plan. 9.1 KY137 will engage the following strategies in addressing the housing needs of families in our jurisdiction and on the waiting list: undertake measures to ensure access to affordable housing, maintain lease up rates by marketing to owners, continue admissions policies aimed at working families and continue advocating homeownership opportunities. Additional Information. Describe the following, as well as any additional information HUD has requested. (a) Progress in Meeting Mission and Goals. Provide a brief statement of the PHA's progress in meeting the mission and goals described in the 5 - Year Plan. The goals and objectives of the five year plan are in progress by means of conducting outreach to potential 10.0 landlords, working to increase the percentage of employed persons in assisted housing and undertaking of affirmative actions to ensure equal access to affordable housing. (b) Significant Amendment and Substantial Deviation/Modification. Provide the PHA's definition of "significant amendment" and "substantial deviation/modification" KY137 definition of Significant Amendment and Substantial DeviationfModirication is any changes to rent or admissions policies or organization of the waiting list; additions of new activities not included in the current PHA Plan; and any change with regard to homeownership programs. 11.0 1 Required Submission for HUD Field OMee Review. In addition to the PHA Plan template (HUD -50095), PHAs must submit the following documents. Items (a) through (g) may be submitted with signature by mail or electronically with stormed signatures, but electronic submission is encouraged. Items (h) through (i) must be attached electronically with the PHA Plan. Note: Faxed copies of these documents will not be accepted by the Field Office. (a) Form HUD -50077, PHA Certifications of Compliance with the PHA Plans and Related Regulations (which includes all certifications relating to Civil Rights) (b) Form HUD -50070, Certificationfor a Drug -Free Workplace (PHAs receiving CFP grants only) (c) Fort HUD -50071, Certification of Payments to Influence Federal Transactions (PHAs receiving CFP grants only) (d) Form SF -LLL, Disclosure of Lobbying Activities (PHAs receiving CFP grants only) (e) Form SF -LLL -A, Disclosure of Lobbying Activities Continuation Sheet (PHAs receiving CFP grants only) (f) Resident Advisory Board (RAB) comments. Comments received from the RAB must be submitted by the PHA as an attachment to the PHA Plan. PHAs must also include a narrative describing their analysis of the recommendations andthe decisions made on these recommendations. (g) Challenged Elements (h) Form HUD -50075.1, Capital Fury! Program Annual StatemenUPerformance and Evaluation Report (PHAs receiving CFP grants only) (i) Form HUD -50075.2, Capital Fund Program Five -Year Action Plan (PHAs receiving CFP grants only) Page 2 of 2 tort HUD -5U075 (4/20(10) rNIM Agenda Action Form Paducah City Commission Meeting Date: 03/19/2013 Short Title: Adopt PHA Administrative Plan for Section 8 Housing Ordinance ❑ Emergency ® Municipal Order ❑ Resolution ❑ Motion ❑ Staff Work By: Danny W. Fugate Presentation By: Danny W. Fugate Background Information: The Section 8 Housing Program is required by federal regulations to review and revise the Administrative Plan to refect any changes in federal regulations, policies and/or local initiatives. The local policy changes incorporated in the revised plan includes: • Update Family Self-Suff ciency Waiting List Data. (page 20) • Include Management Assessment Objectives regarding SEMAP (Section Eight Management Assessment Program) (page 60) These revisions are incorporated as a part of the Streamlined Annual Plan and does not result in significant amendment or substantial deviation/modifcation of PHA Five Year or Annual Plan Goal: Strong Economy® Quality Services[] Vital Neighborhoods❑ Restored Downtowns[] Funds Available: Account Name: N/A Account Number: N/A Finance Staff Recommendation: Adopt Revised Administrative Plan for the City of Paducah Section 8 Program effective May 1, 2013 Attachments: Administrative Plan (2013) for City of Paducah Section 8 Housing Program Department Head City Clerk City Manager MUNICIPAL ORDER NO. A MUNICIPAL ORDER ADOPTING THE CITY OF PADUCAH, KENTUCKY, PADUCAH HOUSING AGENCY REVISED ADMINISTRATIVE PLAN FOR SECTION 8 HOUSING WHEREAS, it is the intent of the City of Paducah, Kentucky, to provide decent, safe, and sanitary rental housing for eligible families and provide opportunities, promote self- sufficiency, and economic independence for Section 8 participants and; WHEREAS, the Section 8 Housing Program is required by federal regulations to review and revise the Administrative Plan to reflect changes in federal regulations, policies and/or local initiatives. BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. The City of Paducah hereby adopts the City of Paducah, Kentucky, Paducah Housing Agency Revised Administrative Plan for Section 8 Housing in its entirety. SECTION 2. This Order will be in full force and effect from and after the date of its adoption. Mayor ATTEST: Tammara S. Sanderson, City Clerk Adopted by the Board of Commissioners, March 19, 2012 Recorded by Tammara S. Sanderson, City Clerk, March 19, 2012 mcvsec8-admin plan 2013 2013 City of Paducah Section 8 Housing Administrative Plan CITY OF PADUCAH KENTUCKY ADMINISTRATIVE PLAN HOUSING CHOICE VOUCHER PROGRAM KY -137 Effective Date: May 1, 2013 As Adopted by the City of Paducah Hoard of Commissioners Municipal Order:# 2013 City of Paducah Section 8 Housing Administrative Plan Minimum Rent 18 Monitoring Program Performance 18 Purged Files 18 Family Self -Sufficiency Program 19 Social Security/Supplemental Security Income Verification 22 Absence from Unit 23 Family Information Provided to Owners 23 Disapproval of Owner 23 Citizenship/Eligible Immigration Status 23 Administrative Fee Reserve Expenditures 24 Program Management Plan 24 Fair Housing Policy and Equal Opportunity Housing Plan 24 Continued Assistance After Family Break -Up 25 Special Housing Types 26 Restrictions on Number of Moves by a Participant Family 39 HCV homeownership Program 40 Project Based Voucher Program 48 Violence Against Women and Department of Justice Act 50 Limited English Proficient (LEP) Policy 56 Reduction of Families Due to Reduced Funding 59 Management Assessment Objectives 60 3 2013 City of Paducah Section 8 Housing Administrative Plan 2. Eligibility Determination - The PHA will use a simple pre -application form as suggested by HUD that will enable us to make a preliminary determination of eligibility. Complete applications of eligible families will be arranged by date and time of application. Eligibility Criteria: A. Applicant must be: a. Two or more people related by blood, marriage or operation of law b. A single person who is elderly, disabled, or pregnant 1. Elderly defined as head of household at least 62 years of age 2. Disabled defined as head of household having a physical or mental disability that is of long and indefinite duration, impedes ability to live independently and is of such a nature that the person's ability to live independently could be improved by more suitable housing or as head of household with physical, mental or developmental disability as defined by Section 223 of the Social Security Act, or a developmental disability described as attributable to a mental and/or physical impairment; was manifested before age 22; is likely to continue indefinitely; results in substantial functional limitations in 3 or more of the following areas; capacity for independent living; self-care; receptive and expressive language; learning; mobility; self- direction; and economic self-sufficiency; and require special, interdisciplinary, or generic care, treatment, or other services that are of lifelong or extended duration and are individually planned and coordinated. 4. Single, non -elderly, non -disabled applicant B. Applicant must be of the very low income status as established by HUD reflecting 50% of the median income. a. Annual income (gross income) is compared to income limits published by the Federal Register. 3. Selection of Program Participants - The following selection classification of families will be given priority by time and date of application in the following order on the waiting list in coordination with the income targeting criteria as follows: A. Previously assisted eligible families that have been terminated by PHA due to reduced federal funding. B. Victims of domestic violence with appropriate certification according to the "Violence Against Women and Department of Justice Reauthorization Act of 2005" as referred by the Merryman House Domestic Crisis Center or other domestic violence organization. C. Federally Declared Disaster Families - A family displaced by a federally declared disaster. Those that are Section 8 Voucher holders or Public Housing residents from the disaster area will receive preference over non - 5 2013 City of Paducah Section 8 Housing Administrative Plan b. The felonious use, or possession of a controlled substance. c. Illegal drug use or pattern of illegal drug use that may interfere with the safety or welfare of other tenants. d. Abuse of alcohol or pattern of such abuse that may interfere with the safety or welfare of other tenants. e. Violent criminal activity includes any felonious criminal activity that has as one of its elements, the use, attempted use, or threatened use of physical force against the person or property of another. 1. Felonious is described as criminal activity classified as a felony under Federal, State or Local Laws. f. Any criminal activity that threatens the safety or welfare of other residents. g. Manufacture or producing of methamphetamine (will receive a lifetime ban) h. Family member fleeing to avoid prosecution or custody or confinement after conviction for a felony or high misdemeanor i. Sex offenders subject to a lifetime sex offender registration Considerations in Denials and Termination - a. This Agency will deny or terminate assistance if the preponderance of the evidence indicates that a Family member has engaged in such activity regardless of whether the Family member has been arrested or convicted. b. This Agency will consider all circumstances in each case i.e. seriousness of offense, extent of Family member participation, effects of denial or termination on other Family members, etc. c. This Agency shall give the applicant or participant an opportunity for an informal hearing procedures. d. The PHA will deny assistance to applicants who have been evicted from public housing or terminated from assisted housing within the past 3 years for drug related activities, except for the manufacture or producing of methamphetamine on the premise of the assisted unit which will permanently deny eligibility for assisted housing. Criminal Background Checks - Each applicant will be screened for criminal conviction records by reviewing police, court records, probation and parole records and/or landlord references. These records will be used only for applicant screening and termination purposes and will be destroyed once the purpose of their use is completed. Applicants rejected because of criminal records will be given a copy of the record and opportunity to dispute its accuracy and relevance. 5. Verifying Income and Determining Gross Family Contribution - A. The PHA will verify income and gross family contribution as follows: 2013 City of Paducah Section 8 Housing Administrative Plan i. The Program Administrator may have a tenant who has a unit that is questionable under the Section 8 Program and may want a pre -lease inspection made. The Program Administrator will make an appointment with the tenant and landlord to conduct a pre -lease inspection using the Housing Quality Standards. ii. The Section 8 Program Administrator and Inspector must follow the Housing Quality Standards with special regard to the plumbing and electrical systems. When inspecting a unit the Program Administrator and Inspector will look beyond the obvious new cosmetic remodeling. A unit may look clean and nicely decorated but present subliminal health and safety hazard. 2. Initial Inspections. i. The Program Administrator and Inspector fill in the inspection sheet and contact the tenant and inspection is made following the Housing Quality Standards and local codes to insure the unit is decent, safe and sanitary. ii. While conducting the inspection it is the responsibility of the Program Administrator and Inspector to note the unit's present condition listing any deficiencies that need correction. iii. After the inspection is completed the unit will be: a. Approved. b. Approved contingent upon repairing the identified deficiencies within a specified time. c. Unapproved. 3. Re-exam Inspection. i. Annually the PHA will conduct an inspection of the client's unit to determine that the dwelling continues to meet the approved standards. When a tenant is up for re-examination inspection, the Section 8 Program Administrator will notify the resident and landlord. The procedure for this inspection uses that same guidelines as the initial inspection. 4. Follow-up Inspection. i. Once a unit has been inspected and is approved contingent upon seasonal repairs (e.g. painting exterior of unit in adverse weather conditions), the landlord has a due date in which to complete identified deficiencies. ii. After the due date has expired, the proper follow-up is made. If the repairs have been completed the unit is accepted. If the repairs are in progress an extension of time may be given. If repairs have not been initiated, the owner will be in violation of their Contract with the PHA and will be notified of termination of Contract. The resident will be issued another Voucher to find housing elsewhere within 60 days. E 2013 City of Paducah Section 8 Housing Administrative Plan as PHA or HUD determines to be necessary in the administration of the program including use by the PHA for a regularly scheduled re-examination of family income and composition in accordance with HUD requirements. c. Allow the PHA to inspect the dwelling unit at reasonable times and after reasonable notice. d. Use the dwelling unit solely for residence by the family, and as the family's principal place of residence. e. Not assign the lease or transfer the unit. B. The family shall not: a. Own or have any interest in the dwelling unit (other than in a manufactured home assisted under regulations or a member of a cooperative) b. Commit any fraud in connection with the Section 8 Housing Program. c. Receive assistance under the Section 8 Housing Program while occupying or receiving assistance for occupancy of any unit assisted under any Federal Housing Assistance Program (including any Section 8 Program) 11. Responsibilities of the PHA - A. Publication and dissemination of information concerning the availability and nature of housing assistance for eligible families. B. Public invitation of owners to make dwelling units available for leasing by eligible families and development of working relationships and contracts with landlords and appropriate associations and groups. C. Receipt and review of applications for vouchers, verification of family income, and other factors relating to eligibility and amount of assistance and maintenance of a waiting list. D. Issuance of vouchers. E. Notification of families determined to be ineligible. F. Provision of each voucher holder of basic information on applicable Housing Quality Standards and inspection procedures, search for and selection of housing, owner and tenant responsibilities, and basic rules. G. Determination of the amount of the total tenant payment and tenant rent. H. Determination of the amounts of housing assistance payments. I. Explanation of program procedures to owners, including those who have been approached by voucher holders. J. Review of and action on requests for lease approval, including monitoring to assure that the limitations on use of Section 8 Housing Assistance in subsidize projects are observed. K. Making of housing assistance payments. L. Provision of housing information to assisted families and referral of such families to appropriate social service agencies upon request. M. Re-examination of family income, composition, and extent of exceptional medical or other unusual expenses, and redetermination, appropriate, of the 2013 City of Paducah Section 8 Housing Administrative Plan 15. Unit Size Selection by Family - A. Vouchers may select larger unit than listed on voucher. a. Family subsidy will be based on the applicable payment standard for which the family is eligible. Not to exceed tenant payment greater than 40% of adjusted income. b. Utility allowance is given for the actual unit size selected. B. Vouchers may select smaller unit than listed on voucher. a. Must meet space standards in HQS standards. b. Subsidy would be based on unit size for which the family is eligible. c. Utility allowance is given for the actual unit size selected. 16. Termination of Tenancy - A. The owner shall not terminate the tenancy of the family except for: a. Serious or repeated violation of the terms and conditions of the lease. b. Violation of Federal, State, or local law which imposes obligations on the family in connection with the occupancy and use of the dwelling unit and surrounding premises. c. Other good cause. B. The owner may evict the family from the contract unit only by instituting a court action. a. The owner must notify the PHA in writing of the commencement of procedures for termination of tenancy, at the same time that the owner gives notice to the family under State or local law. The notice to the PHA may be given by furnishing the PHA a copy of the notice to the family. 17. Grievance Procedures - A. Informal review of PHA decision on application for participation in program. a. The PHA shall give an applicant for participation in the PHA's Section 8 Housing Program prompt written notice of a decision denying assistance the applicant (including a decision denying listing on the PHA waiting list, Housing Choice Voucher of Family Participation in the Program). The notice shall contain a brief statement of the reason for the decision.The notice shall also state that the applicant may request an informal review of the decision, and shall describe how to obtain the informal review. b. The PHA shall give the applicant an opportunity for an informal review of the decision, in accordance with the review procedures established by the PHA. The informal review shall be conducted by any person or persons designated by the PHA, other than the person who made or approved the decision under review of a subordinate of such person. The applicant shall be given an opportunity to present written or oral objections to the PHA decision.The PHA shall promptly notify that applicant in writing of the final PHA decision after the informal review, including a brief statement of the reasons for the final decision. 13 2013 City of Paducah Section 8 Housing Administrative Plan 4. To review the PHA's decision not to approve a family's request for an extension of the voucher issued to an assisted family which wants to move to another dwelling unit with continued participation in the PHA's Section 8 Program. c. The PHA shall give the participant prompt written notice of a decision. The notice shall contain a brief statement of the reasons for that decision. The notice shall state that if the participant does not agree with the decision, the participant may request an informal hearing on the decision, and shall also state the time by which the request for an informal hearing must be made by the participant. When the PHA determines the amount of the total tenant payment of the tenant rent, or determines the number of bedrooms entered on the voucher of an assisted family which wants to move to another dwelling unit ,the PHA shall notify the participant that the participant may ask for an explanation of the basis of the PHA determination, and that, if the participant does not agree with the determination, the participant may request an informal hearing on the decision. d. If the PHA has decided to terminate Housing Assistance Payment on behalf of participant under an outstanding contract (and if the PHA is required to give the participant an informal hearing on the decision), the participant shall be afforded the opportunity for such informal hearing before the termination of Housing Assistance Payments. e. In all cases where a hearing is required under paragraph (b), the PHA shall proceed with a hearing in a reasonable expeditious manner upon the request of a participant. f The PHA shall adopt written procedures for conducting an informal hearing for participants in the PHA's Section 8 Program.The PHA hearing procedures shall comply with the following: 1. The hearing may be conducted by any person or persons designated by the PHA, other than the person who made or approved the decision under review or a subordinate of such a person. 2. At its own expense, the participant may be represented by a lawyer or other representative. 3. The person who conducts the hearing may regulate the conduce to the hearing in accordance with the PHA hearing procedures. 4. The PHA and the participant shall be given the opportunity to present evidence, and may question any witnesses. Evidence may be considered without regard to admissibility under the rules of evidence applicable to judicial proceeding. 5. The person who conducts the hearing shall issue a written decision, stating briefly the reasons for the decision. Factual determination relating to the individual circumstances of the participant shall be based on the evidence presented at the 15 2013 City of Paducah Section 8 Housing Administrative Plan 4 Bedroom 10 B. Occupancy Standards Exceptions: Applicants maybe given an exception to the established occupancy standards if determination is justified by the age, sex, health, disability, or relationship of family members or other individual circumstances. An exception will be considered if the applicant requests in writing the reasons and justification of such an exception based on the above factors. The Administrator will make the final determination of occupancy exceptions and document each case accordingly. 20. Annual Re-examinations - All families will be re-examined at least annually to determine if they will continue to receive assistance and to recalculate total tenant payment and assistance payments. The family is required to provide verification of family income, composition, medical expenses (elderly), and unusual expenses. The recalculation of Housing Assistance Payments will be performed following the applicable method of the program. Any increase or decrease in the family's portion of rental payments will be calculated and notice will be sent to the landlord and participant in written form prior to the effective date of change. 21. Utility Allowances - The utility allowance schedule for the Section 8 Program will be reviewed yearly and adjusted accordingly to insure participant affordability. 22. Rent Reasonableness - Housing Choice Voucher Program - Under the voucher program, the PHA will provide guidance to the family in securing a unit that is rent reasonable. We will assist the family, if requested, to negotiate a reasonable rent. We may disapprove a lease under the voucher program if the rent causes the tenant payment to exceed 40% of adjusted income or if the rent is not reasonable. Documentation of such will be presented to the owner of said property for an attempt to renegotiate a reasonable rent. The PHA will determine that the rent to owner is a reasonable rent in comparison to rent for other comparable unassisted units. To assure this the PHA will consider the location, quality, size, unit type, and age of the subject unit and any amenities, housing services, maintenance and utilities to be provided by the owner in accordance with the lease. The PHA will certify and document on a case by case basis that the approved rent does not exceed rents charged for comparable unassisted units. The bottom line is that the PHA will approach each unit and assure that the rent the assisted family pays is fair for the product received. To do this after comparing all available data on our market we will ask ourselves the following question; If you were in the market to lease a unit, would you be willing to spend your own money to lease this unit in this location? If the answer is yes and there is adequate documentation to support the decision, the lease should be approved. If the person performing the rent test cannot support the rent request (including that they believe the unit to be worth the amount requested and their willingness to answer yes to the above question) the lease will not be approved. 17 2013 City of Paducah Section 8 Housing Administrative Plan 28. Purged Files - All participant files purged by this Agency will retain the original application made by the family and will include the previous one year re-examination documentations and leasing contracts. 29. Family Self -Sufficiency Program - The City of Paducah Section 8 Housing has received approval to develop and implement a Family Self -Sufficiency (FSS) Program under the terms of the Annual Contributions Contract for KY 36-V137-008. The objectives of this action plan is to initially outline the policies and procedures for implementation of this FSS Program. The overall goal of The City of Paducah is to enable a maximum of 30 families to become economically and socially independent through the coordination and delivery of existing community services. Mandatory program size will reduce by the number of program graduates although the agency will continue to operate a voluntary program totaling 30 participants. Based on past experience with the Project Self -Sufficiency Program, it is known that there are both societal and individual barriers to break down before a family can leave long term poverty. It is also understood that an effective FSS Program requires a mixture of creativity and flexibility, in addition to accountability, for both the family and service providers. A. Program Objectives The Program's objectives are listed as follows: Improve coordination of both planning and delivery of services to participants of FSS based on the commitment to make families self-sufficient. Implement a case management system to identify needs, planning, and delivery of services to a FSS family based on the family's commitment to become self-sufficient. Document the implementation of services to be used for future planning of a broader-based FSS Program. Establish interagency partnerships to achieve high quality comprehensive service delivery to all members of a family with long-term results. Assess the accountability of the family, the case management, and the agencies and entities providing service and resources. B. Family Objectives The family's objectives will be to achieve the following: Elevate itself from a status of dependency to that of self reliance and growth towards the goal of self-sufficiency. 19 2013 City of Paducah Section 8 Housing Administrative Plan The FSS program will offer the following support services in addition to identified service needs of specific family circumstance: Child Care Transportation Education Employment Personal Welfare Household Skills and Management Counseling (credit, personal, etc.) Other service and resources such as case management The identification of support needs will be established through case management, self evaluation, and need assessment. The process of identifying service providers will be done in coordination with the Program Coordinating Committee (PCC) in order to define and access a broad range of support services. Incentives The FSS Program will offer participating families the opportunity to effectively become economically and socially independent of the welfare system through the coordination and provision of services designed to meet the goal of each individual participant. The Program will also provide for the establishment of an escrow account for any difference of the increase in rent due to earned income in accordance with HUD regulations. G. Assurance of Non -Interference The City of Paducah Section 8 Housing Program hereby assures each family that any admission or right to occupy in accordance to lease provisions will not be effected by a family's participation or non participation in the FSS program. H. Termination The family's Contract of Participation may be terminated for any of the following reasons: When the housing agency determines that the head or participating family member(s) has failed to fulfill the terms of the contract and/or any extension therefore. Withdrawal of the family from the FSS program. Mutual consent of both parties. By such act as it is deemed inconsistent with the purpose of the FSS program. By operation of law. 21 2013 City of Paducah Section 8 Housing Administrative Plan 30. Social Security and Supplemental Security Income Verification -The PHA will require verification of SS and SSI income from each applicable participant and applicant by the provision of documents that indicate benefit amounts. Upon receipt of SS/SSI Benefit History Report from HUD, we will review the applicable tenant income history and notify the tenant of any discrepancy found that would adversely affect the amount of housing assistance provided. The tenant will be given an opportunity to contest the findings through the normal informal hearing process. If after verifying that tenants received excessive housing assistance by not reporting all of their income, the PHA will use various enforcement actions depending on the cost and benefits of the technique selected. Options selected includes, but are not limited to: 1. Immediate Restitution 2. Repayment Agreement 3. Retroactive Rent 4. Garnishment of Wages 5. Prosecution 6. Termination of Assistance The PHA will use a confessed judgment note when immediate restitution or repayment agreement action is instituted. All Tenant Income Discrepancy Reports used as a control for recording resolution of SS/SSI income differences will be maintained for two years and destroyed. 31. Absence from Unit - Any family under the Section 8 program may not be absent from the unit for a period greater than 30 days consecutively unless for a medical situation which may not exceed 180 days. The family is obligated to inform the PHA upon family absence from the unit. Any failure to inform or prolonged unit absence to exceed time limitation will result in termination of rental assistance. The family will be given the right to an informal hearing in all cases of termination because of unit absence. 32. Family Information Provided to Owners - The PHA will provide the following information to owners (upon request) regarding a prospective tenant: A. The family's current address B. The name and address (if known) of the family's present landlord C. Information known about tenancy's history of family members and/or documented drug or violent criminal activity by family members. D. The PHA will provide families a statement of policy on the provision of information to owners. The same type of information will be provided to all owners and families. 33. Disapproval of Owner - The PHA will disapprove owner participation based on (1) owner history of failing to terminate tenancy for drug related or violent criminal activity or other threatening activity (2) owner engaging in drug related or violent criminal activity. 23 2013 City of Paducah Section 8 Housing Administrative Plan 3 The fair housing act, 42 U. S. C. 3610-3619 (implementing regulations at 24 CFR parts 100, et seq.); 3 Title VI of the Civil Rights Act of 1964, 42 U. S. C. 2000d (implementing regulations at 24 CFR partI); 3 The age discrimination act of 1975, 42 U. S. C. 6101-6107 (implementing regulations at 24 CFR, part 146); 3 Executive Order 11063, Equal Opportunity in Housing (1962), as amended, Executive Order 12259, 46 FR1253 (1980), as amended, Executive Order 12892, 59FR 2939 (1994) (implementing regulations at 24 CFR, part 107); 3 Section 504 of the Rehabilitation Act of 1973, 29 U. S. C. 794 (implementing regulations at 24 CFR, part 8; and 3 Title II of the Americans with Disabilities Act, 42 U. S. C.12101, et seq. C. Equal Opportunity Posting Requirements: There shall be maintained in the PHA's office waiting room a bulletin board, which will accommodate the following posted materials: 3 Statement of Policies and Procedures Governing the Section 8 Administrative Plan. 3 Open Occupancy Notice (Applications being Accepted and/or Not Accepted) 3 Income Limits for Admission. 3 Utility Allowances. 3 Informal Review and Hearing Procedure. 3 Fair Housing Poster. 3 "Equal Opportunity in Employment" Poster. 38. Continued Assistance After Family Break -Up The PHA shall determine which family members will continue to receive assistance after a family break-up. The head of household, spouse or any adult member of the household must notify the PHA that there has been a family break-up and continued assistance is being requested. The assisted family member making the request must submit the request in writing to the PHA and request a determination. The request must be made within 10 calendar days of the break-up. The PHA will consider the following factors in making this determination: A. Assisted Unit: Whether the assistance should remain with family members remaining in the original assisted unit. B. Interest of Family Members: The interest of minor children or of ill, elderly or disabled family members. 25 2013 City of Paducah Section 8 Housing Administrative Plan C. Family choice of housing and housing type. The PHA may not set aside program funding for special housing types, or for a specific special housing type. The family chooses whether to rent housing that qualifies as a special housing type under this subpart, or as any specific special housing type, or to rent other eligible housing in accordance with requirements of the program. The PHA may not restrict the family's freedom to choose among available units in accordance with Sec. 982.353. D. Applicability of requirements. Except as modified by this subpart, requirements in the other subparts of this part apply to the special housing types. Provisions in this subpart only apply to a specific special housing type. The housing type is noted in the title of each section. 2. Single Room Occupancy (SRO) A. SRO: General. Sec. 982.602 (1) Who may reside in an SRO? A single person may reside in an SRO housing unit. (2) When may a person rent an SRO housing unit? A single person may rent a unit in SRO housing only if: (a) HUD determines there is significant demand for SRO units in the area; (b) The PHA and the unit of general local government approve providing assistance for SRO housing under the program; and (3) The unit of general local government and the PHA certify to HUD that the property meets applicable local health and safety standards for SRO housing. B. SRO: Lease and HAP contract. Sec. 982.603 For SRO housing, there is a separate lease and HAP contract for each assisted person. C. SRO: Rent and housing assistance payment. Sec. 982.604 (1) Payment standard. The PHA must adopt a payment standard for persons who occupy SRO housing with assistance under the voucher program. The SRO payment standard may not exceed the FMR/exception rent limit for SRO housing. While an assisted person resides in SRO housing, the SRO payment standard must be used to calculate the housing assistance payment. (2) Utility allowance. The utility allowance for an assisted person residing in SRO housing is 75 percent of the zero bedroom utility allowance. 27 2013 City of Paducah Section 8 Housing Administrative Plan height of at least five feet). If there is less closet space, space equal to the amount of the deficiency must be subtracted from the area of the habitable room space when determining the amount of floor space [[Page 23866]] in the SRO unit. The SRO unit must contain at least one hundred ten square feet of remaining floor space after subtracting the amount of the deficiency in minimum closet space. (D) Exterior doors and windows accessible from outside an SRO unit must be lockable. (3) Access. (a) Access doors to an SRO unit must have locks for privacy in proper operating condition. (b) An SRO unit must have immediate access to two or more approved means of exit, appropriately marked, leading to safe and open space at ground level, and any means of exit required by State and local law. (c) The resident must be able to access an SRO unit without passing through any other unit. (4) Sprinkler system. A sprinkler system that protects all major spaces, hard wired smoke detectors, and such other fire and safety improvements as State or local law may require must be installed in each building. The term "major spaces" means hallways, large common areas, and other areas specified in local fire, building, or safety codes. 3. Conpxegate Housing A. Who may reside in congregate housing. Sec. 982.606 (1) An elderly person or a person with disabilities may reside in a congregate housing unit. 2. (a) If approved by the PHA, a family member or live-in aide may reside with the elderly person or person with disabilities. (b) The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities in accordance with 24 CFR part 8. See Sec. 982.316 concerning occupancy by a live-in aide. B. Lease and HAP contract. Sec. 982.607 For congregate housing, there is a separate lease and HAP contract for each assisted family. C. Rent and housing assistance payment; FMR/exception rent limit. Sec. 982.608 29 2013 City of Paducah Section 8 Housing Administrative Plan usable by persons with disabilities in accordance with 24 CFR part 8. See Sec. 982.316 concerning occupancy by a live-in aide. (3) Except for a live-in aide, all residents of a group home, whether assisted or unassisted, must be elderly persons or persons with disabilities. (4) Persons residing in a group home must not require continual medical or nursing care. (5) Persons who are not assisted under the tenant -based program may reside in a group home. (6) No more than 12 persons may reside in a group home. This limit covers all persons who reside in the unit, including assisted and unassisted residents and any live-in aide. B. Lease and HAP contract. Sec. 982.611 For assistance in a group home, there is a separate HAP contract and lease for each assisted person. C. State approval of group home. Sec. 982.612 A group home must be licensed, certified, or otherwise approved in writing by the State (e.g., Department of Human Resources, Mental Health, Retardation, or Social Services) as a group home for elderly persons or persons with disabilities. D. Rent and housing assistance payment. Sec. 982.613 (1) Meaning of pro -rata portion. For a group home, the term "pro -rata portion," means the ratio derived by dividing the number of persons in the assisted household by the total number of residents(assisted and unassisted) residing in the group home. The number of persons in the assisted household equals one assisted person plus any PHA -approved live-in aide. (2) Rent to owner: Reasonable rent limit. (a) The rent to owner for an assisted person may not exceed the pro -rata portion of the reasonable rent for the group home. (b) The reasonable rent for a group home is determined in accordance with Sec. 982.503. In determining reasonable rent for the group home, the PHA must consider whether sanitary facilities, and facilities for food preparation and service, are common facilities or private facilities. (3) Maximum subsidy. (a) Family unit size. (i) Unless there is alive -in aide, the family unit size is zero or one bedroom. 31 2013 City of Paducah Section 8 Housing Administrative Plan (iii) The unit may contain private or common sanitary facilities. However, the facilities must be sufficient in number so that they need not be shared by more than four residents of the group home. (iv) Sanitary facilities in the group home must be readily accessible to and usable by residents, including persons with disabilities. (b) Food preparation and service. (i) The unit must contain a kitchen and a dining area. There must be adequate space to store, prepare, and serve foods in a sanitary manner. (ii) Food preparation and service equipment must be in proper operating condition. The equipment must be adequate for the number of residents in the group home. The unit must contain the following equipment: (A) A stove or range, and oven; (B) A refrigerator; and (C) A kitchen sink with hot and cold running water. The sink must drain into an approvable public or private disposal system. (iii) There must be adequate facilities and services for the sanitary disposal of food waste and refuse, including facilities for temporary storage where necessary. (iv) The unit may contain private or common facilities for food preparation and service. (c) Space and security. (i) The unit must provide adequate space and security for the assisted person. (ii) The unit must contain a living room, kitchen, dining area, bathroom, and other appropriate social, recreational or community space. The unit must contain at least one bedroom of appropriate size for each two persons. (iii) Doors and windows that are accessible from outside the unit must be lockable. (d) Structure and material. (i) The unit must be structurally sound to avoid any threat to the health and safety of the residents, and to protect the residents from the environment. (ii) Ceilings, walls, and floors must not have any serious defects such as severe bulging or leaning, loose surface materials, severe buckling or noticeable movement under walking stress, missing parts or other significant damage. The roof structure must be firm, and the roof must be watertight. The exterior or wall structure and exterior wall surface may not have any 33 2013 City of Paducah Section 8 Housing Administrative Plan C. Rent and housing assistance payment. Sec. 982.617 (1) Meaning of pro -rata portion. For shared housing, the term "pro -rata portion," means the ratio derived by dividing the number of bedrooms in the private space available for occupancy by a family by the total number of bedrooms in the unit. For example, for a family entitled to occupy three bedrooms in a five bedroom unit, the ratio would be 3/5. (2) Rent to owner: Reasonable rent. (a) The rent to owner for the family may not exceed the pro -rata portion of the reasonable rent for the shared housing dwelling unit. (b) The reasonable rent is determined in accordance with Sec. 982.503. (3) Maximum subsidy. (b) Voucher Tenancy: The payment standard is the lower of: (i) The payment standard for the family unit size; or (ii) The pro -rata portion of the payment standard for the shared housing unit size. (c) Live-in aide. If there is a live-in aide, the live-in aide must be counted in determining the family unit size. (3) Utility allowance. The utility allowance for an assisted family residing in shared housing is the pro -rata portion of the utility allowance for the shared housing unit. D. Housing quality standards. Sec. 982.618 (1) Compliance with HQS. The PHA may not give approval to reside in shared housing unless the entire unit, including the portion of the unit available for use by the assisted family under its lease, meets the housing quality standards. (2) Applicable HQS standards. The HQS in Sec. 982.401 apply to assistance in shared housing. However, the HQS standards in this section apply in place of Sec. 982.401(d) (space and security). (3) Facilities available for family. The facilities available for the use of an assisted family in shared housing under the family's lease must include (whether in the family's private space or in the common space) a living room, sanitary facilities in accordance with Sec. 982.401(b), and food preparation and refuse disposal facilities in accordance with Sec. 982.401(c). (4) Space and security: Performance requirements. (a) The entire unit must provide adequate space and security for all its residents (whether assisted or unassisted). (b) Each unit must contain private space for each assisted family, plus common space for shared use by the residents of the unit. Common space must be appropriate for shared use by the residents. (ii) The private space for each assisted family must contain at least one bedroom for each two persons in the family. The 35 2013 City of Paducah Section 8 Housing Administrative Plan (1) Assistance for resident of manufactured home. (a) A family may reside in a manufactured home with assistance under the program. (b) The PHA must permit a family to lease a manufactured home and space with assistance under the program. (c) The PHA may provide assistance for a family that owns the manufactured home and leases only the space. The HA is not required to provide such assistance under the program. (2) Applicability. (a) The HQS in Sec. 982.621 always apply when assistance is provided to a family occupying a manufactured home (under paragraph (a)(2) or (a)(3) of this section). (b) Sections 982.622 to 982.624 only apply when assistance is provided to a manufactured home owner to lease a manufactured home space. (3) Live-in aide. (a) If approved by the PHA, a live-in aide may reside with the family to care for a person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities in accordance with 24 CFR part 8. See Sec. 982.316 concerning occupancy by a live-in aide. (b) If there is a live-in aide, the live-in aide must be counted in determining the family unit size. B. Housing quality standards. Sec. 982.621 A manufactured home must meet all the HQS performance requirements and acceptability criteria in Sec. 982.401. A manufactured home also must meet the following requirements: (1) Performance requirement. A manufactured home must be placed on the site in a stable manner, and must be free from hazards such as sliding or wind damage. (2) Acceptability criteria. A manufactured home must be securely anchored by a tie -down device that distributes and transfers the loads imposed by the unit to appropriate ground anchors to resist wind overturning and sliding. C. Space Rental: Rent to owner. Sec. 982.622 (1) What is included. (a) Rent to owner for rental of a manufactured home space includes payment for maintenance and services that the owner must provide to the tenant under the lease for the space. (b) Rent to owner does not include the costs of utilities and trash collection for the manufactured home. However, the owner may 37 2013 City of Paducah Section 8 Housing Administrative Plan (ii) The monthly gross rent for the manufactured home space minus the minimum rent. The minimum rent is the higher of: (A) 10 percent of monthly income (gross income); or (B) A higher minimum rent as required bylaw. (4) Amortization cost. (a) The amortization cost may include debt service to amortize costs (other than furniture costs) included in the purchase price of the manufactured home. The debt service includes the payment for principal and interest on the loan. The debt service amount must be reduced by 15 percent to exclude debt service to amortize the cost of furniture, unless the PHA determines that furniture was not included in the purchase price. (b) The amount of the amortization cost is the debt service established at time of application to a lender for financing purchase of the manufactured home if monthly payments are still being made. Any increase in debt service due to refinancing after purchase of the home is not included in the amortization cost. (c) Debt service for set-up charges incurred by a family that relocates its home may be included in the monthly amortization payment made by the family. In addition, set-up charges incurred before the family became an assisted family may be included in the amortization cost if monthly payments are still being made to amortize such charges. (5) Annual income. In determining a family's annual income, the value of equity in the manufactured home owned by the assisted family, and in which the family resides, is not counted as a family asset. E. Space Rental: Utility allowance schedule. Sec. 982.624 The PHA must establish utility allowances for manufactured home space rental. For the first twelve months of the initial lease term only, the allowances must include a reasonable amount for utility hook-up charges payable by the family if the family actually incurs the expenses because of a move. Allowances for utility hook-up charges do not apply to a family that leases a manufactured home space in place. Utility allowances for manufactured home space must not cover costs payable by a family to cover the digging of a well or installation of a septic system. 40. Restriction on the Number of Moves by a Participant Family The PHA will restrict the number of voluntary moves by a participant family to twice (2) during any 12 month period. Involuntary moves resulting from natural disasters, owner option to sell or relocate to unit, PHA initiated lease terminations, and all other moves where the participant is not at fault are unrestricted. 39 2013 City of Paducah Section 8 Housing Administrative Plan to a mobile home or manufactured home is not considered as homeownership for purposes of this option.) 5) Participants in the Section 8 Homeownership Option must attend and satisfactorily complete a pre -purchase homeownership counseling program and be deemed to be "mortgage ready" before a homeownership voucher will be issued. Participants are also required to attend and complete post- purchase and ongoing homeownership counseling. At minimum, the counseling will cover the following: • Home maintenance • Budgeting and money management • Credit counseling • Negotiating the purchase price of a home • Financing • Locating the home • De -concentration issues • HQS (housing quality inspection) and independent inspection requirements 6) The head of household and/or co head must be currently employed on a full-time basis (as defined by HUD to average 30 hours per week) and have been continuously employed during the year before commencement of homeownership assistance. Families in which the head of household or co-head is disabled or elderly are exempt from this requirement. Families that include a person with disabilities may request an exemption as a reasonable accommodation. 7) The family's income must be equal to or exceed the HUD minimum income requirement, currently set at 2000 hours times the Federal minimum wage or $14,500 annually. Welfare assistance will not be considered in meeting the income requirement, except for households in which the head or co-head is elderly or disabled and for households that include a disabled person other than head or co-head. 8) Applicants may be enrolled in the Family Self -Sufficiency (FSS) Program but are not required to do so for qualifying in the program. Funds accumulated in the FSS escrow account may be advanced for purchase of the home, home maintenance, credit clean up or other house purchase related expenses subject to the guidelines of the FSS Program. Time Frame to Purchase a Home An applicant will have a maximum of 90 days from the date of issuance of a homeownership voucher to enter into a Purchase Agreement to purchase a home. If an applicant is unable to enter into a Purchase Agreement before the end of the initial 90 -day period, the applicant will be provided an extension of 90 days to enter into a Contract for Sale or utilize the voucher for house rental. 41 2013 City of Paducah Section 8 Housing Administrative Plan Society of Home Inspectors (ASHI) or a regular member of the National Association of Home Inspectors (NAHI) must conduct the independent inspection. In all cases the inspection must cover major building systems and components, including foundation and structure, housing interior and exterior, and the roofing, plumbing, electrical and heating systems. The inspector must provide a copy of the inspection report both to the family and to the PHA. The PHA will conduct a Housing Quality Standards (HQS) inspection and will review the independent professional inspection of the unit's major systems. The PHA retains the right to disqualify the unit for inclusion in the Homeownership Option based on either the HQS inspection or the independent professional inspection report. Financing Mortgage instruments must meet at least one of the following criteria: The household is solely responsible for obtaining financing. All loans must meet FHA, or acceptable terms by Fannie Mae, Freddie Mac, reputable secondary markets, or acceptable mortgage insurance credit underwriting requirements. The PHA will review lender qualifications, loan terms, and other family debt and expenses to determine that the debt is affordable and reserves the right to disapprove the loan if it is unaffordable or the terms are considered predatory. The PHA requires a minimum homeowner down payment of at least 3 percent of the purchase price for participation in its Section 8 Homeownership Option Program, and requires that at least two percent (2%) of the purchase price come from the family's personal resources. The PHA will consider waiving or reducing the minimum down payment requirement in cases where the family is using down payment assistance grants or other assistance programs to purchase the unit. Waivers will be granted on a case-by-case basis at the discretion of the Program Administrator. The PHA prohibits • Seller financing • Co-signers not residing in the household. In the event of an appeal, the Program Administrator will appoint a review panel. Length and Continuation of Assistance Section 8 assistance will only be provided for the period that the family is in occupancy of the home. The maximum term a family may receive homeownership assistance is fifteen years if the initial mortgage incurred to finance purchase of 43 2013 City of Paducah Section 8 Housing Administrative Plan Assistance Payment The PHA may provide upon approval by HUD, one of two types of homeownership assistance paid directly to the lender or designee on behalf of the family. 1) Monthly homeownership assistance payment The family's Section 8 monthly housing assistance payment will be the lower of (1) the Section 8 voucher payment standard minus the Total Tenant Payment or (2) the family's monthly homeowner expenses minus the Total Tenant Payment. Homeownership expenses include principal and interest on mortgage debt, refinancing charges of mortgage debt, mortgage insurance premiums, real estate taxes and public assessments, home insurance, allowance for maintenance expenses, allowance for major repairs and replacements based on allowance recommended by the PHA `s designees, a utility allowance, and principal and interest on mortgage debt incurred to finance costs for major repairs, replacements or improvements for the home (including expense of reasonable accommodation). If a family's income increases to a level that they are no longer eligible to receive a housing assistance payment, eligibility for such payments will continue for 180 calendar days. At the end of a continuous period of 180 days without any assistance payments, eligibility for Section 8 assistance will automatically terminate. Lease -to -Purchase Lease -to -Purchase agreements are considered rental property and subject to the Section 8 tenant -based assistance rules. All regulations of the Homeownership Program will become effective at the time that the family exercises the option to utilize the homeownership voucher. Default If the family defaults on the home mortgage loan, the participant will not be able to utilize the Homeownership Voucher for rental assistance but may reapply to the Section 8 waiting list. 45 2013 City of Paducah Section 8 Housing Administrative Plan that the homeowner is provided adequate assistance to purchase a valued and salable property which in some cases will equate to adjusting the payment standard size above the occupancy standard of the regular voucher program. Non -Routine Maintenance/Replacement Reserve The PHA will encourage a non -routine maintenance and replacement reserve account for each homebuyer receiving home ownership assistance under the Section 8 Homeownership Program. The account shall be maintained by either the Kentucky Housing Corporation or mortgage company/designee for the benefit of the individual homeowner. The reserve accounts will insure that the homebuyer have sufficient funds on hand for major repairs and systems replacement. Each home buyer receiving homeownership assistance with a reserve account option will be required to deposit (minimum) $50.00 monthly to an escrow account to be used to pay for reasonable and non -routine maintenance or repair expenses, or systems replacement; and in the case of a disabled household, the cost of modification of a unit necessary as a reasonable accommodation. Families may access the account with a written request to PS8, which will include the nature of the repair or replacement, bids or estimates, or actual receipts for work that has already been completed. The PHA will make the final determination on approval of account withdrawals and shall submit request to servicing agent for release of funds. Participation in the monthly non -routine maintenance/replacement reserve escrow program is required (unless otherwise not offered by mortgage company or designee) by all participants receiving Section 8 Homeownership assistance from the City of Paducah Section 8 Housing Program after Mayl, 2008. Participation by pre-existing homeowners receiving Section 8 Homeownership assistance will be by voluntary written agreement by existing homeowner and will be subject to all provisions under mandatory requirement. The length of individual participation is based on the length of assistance provided by the PHA. After completion of a ten (10) year term of home ownership assistance and obligation, the family may make a written request for the remaining escrow account balance or request it be applied toward the principle balance of their mortgage. Withdrawal of the funds will be contingent on: 1. Good standing with homeownership program and mortgage obligations. 2. The expense be approved by the PHA. Such expenses are for the replacement of the heating system, air conditioning, water heater, refrigerator, appliances 47 2093 City of Paducah Section 8 Housing Administrative Plan The PHA will make housing choice voucher funding available to non-profit and for-profit entities through a competitive process. A Request for Proposal (RFP) will be published as required, inviting proposals of projects that seek the commitment of project -based vouchers that meet the goals of the PHA selection criteria. Specific project selection will be performed by a PHA designated evaluation panel utilizing a weighted selection scored according to the applicable factors listed in the selection criteria. All projects awarded project based Section 8 subsidy must be developed and operated in a manner consistent with HUD regulations. Project based commitments are subject to the availability of adequate federal funding of the PHA Section 8 Housing Choice Voucher Program. Operation of Project -Based Properties The PBV program shall operate the same as the regular tenant based vouchers with the following exceptions: Project -Based Waiting List The PHA shall use a separate waiting list for admission to the PBV program. All PBV applications will be maintained according to the same selection criteria as the regular program. If an applicant refuses an offer of assistance for PBV, the applicant will be transferred to the regular waiting list as of their original application date. Moves with Continued Assistance Participants that are assisted under the PBV program may move from the assisted project and retain housing choice voucher assistance if the assisted family has occupied the unit under PBV for at least 12 months and has given proper notice to vacate. PBV Program Contract Terms The contract tern shall be negotiated for each project based on the project's needs, not to exceed 10 years. Except for units designated for families that are elderly, disabled or receiving supported services, no more than 25% of the project may have PBV assistance. PBV unit gross rents may not exceed the applicable Fair Market Rent. EZ 2013 City of Paducah Section 8 Housing Administrative Plan The City of Paducah Section 8 Housing Program is committed to these victims, as well as members of their immediate family, and to compliance with the VAWA law and will expand the applicant preference include victims of dating violence, sexual assault and stalking. The PHA will require a certification as to the incident(s). See Exhibit C. The PHA shall keep all information and certification(s) obtained by the PHA about a victim's status confidential. The information will not be entered into any shared database or provided to any related entity. However, the PHA may disclose the information if the victim requests or consents to the disclosure in writing; the information is required for use in termination proceedings related to whether the incident or incidents in question qualify as a serious or repeated violation of the lease or criminal activity directly relating to domestic violence, dating violence or stalking; or is otherwise required by law. The following offenses are grounds for denial or termination of assistance for applicant/participant: a Criminal activity directly relating to domestic violence, dating violence, sexual assault, or stalking, engaged in by a member of a tenant's household or any guest or other person under the tenant's control, shall not be cause for termination of the tenancy or occupancy rights, if the tenant or immediate member of the tenant's family is a victim of that domestic violence, dating violence, sexual assault or stalking; b Notwithstanding subparagraph a above, a PHA or owner under this section may bifurcate a lease under this section, in order to evict, remove, or terminate assistance to any individual who is a tenant or lawful occupant and who engages in criminal acts of physical violence against family members or others, without evicting, removing, terminating assistance to, or otherwise penalizing the victim of such violence who is also a tenant or lawful occupant: c Nothing in subparagraph a may be construed to limit the authority of a PHA or owner, when notified, to honor court orders addressing rights of access to or control of the property, including civil protection orders issued to protect the victim and issued to address the distribution or possession of property among the household members in cases where a family breaks up; d Nothing in subparagraph a limits any otherwise available authority of a PHA to terminate participant assistance for any violation of a lease not premised on the act or acts of violence in question against the tenant or a member of the tenant's household, provided that the PHA does not subject an individual who is or has been a victim of 51 2013 City of Paducah Section 8 Housing Administrative Plan EXHIBIT C CERTIFICATION OF DOMESTIC U.S. Department of Housing OMB Approval No. 2577-0249 VIOLENCE, DATING VIOLENCE, and Urban Development Exp. (05/31/2007) OR STALKING Office of Public and Indian Housing Public reporting burden for this collection of information is estimated to average 1 hour per response. This includes the time for collecting, reviewing, and reporting the data. Information provided is to be used by PHAs and Section 8 owners or managers to request a tenant to certify that the individual is a victim of domestic violence, dating violence or stalking. The information is subject to the confidentiality requirements of the HUD Reform Legislation. This agency may not collect this information, and you are not required to complete this form unless it displays a currently valid OMB control number. Purpose of Form: The Violence Against Women and Justice Department Reauthorization Act of2005 protects qualified tenants and family members of tenants who are victims of domestic violence, dating violence, or stalking from being evicted or terminated from housing assistance based on acts of such violence against them. Use of Form: A family member must complete and submit this certification, or the information thatmay be provided in lieu of the certification, within 14 business days of receiving the written request for this certification by the PHA, owner or manager. The certification or alternate documentation must be returned to the person and address specified in the written request for the certification. If the family member has not provided the requested certification or the information that may be provided in lieu of the certification by the 14th business day or any extension of the date provided by the PHA, manager and owner, none of the protections afforded to victims of domestic violence, dating violence or stalking (collectively "domestic violence") under the Section 8 or public housing programs apply. Note that a family member may provide, in lieu of this certification (or in addition to it): (I ) A Federal, State, tribal, tentorial, or local police or court record; or (2) Documentation signed by an employee, agent or volunteer of a victim service provider, an attorney or a medical professional, from whom the victim has sought assistance in addressing domestic violence, dating violence or stalking, or the effects of abuse, in which the professional attest under penalty of perjury (28 U.S.C. 1746) to the professional's belief that the incident or incidents in question are bona ride incidents of abuse, and the victim of domestic violence, dating violence, or stalking has signed or attested to the documentation. TO BE COMPLETED BY THE VICTIM OF DOMESTIC VIOLENCE: Date Written Request Received By Family Member: Name of the Victim of Domestic Violence: Name(s) of other family members listed on the lease: Name of the abuser: Relationship to Victim: Date the incident of domestic violence occurred: Time: Location of Incident: 53 2013 City of Paducah Section 8 Housing Administrative Plan 44. Limited English Proficient (LEP) Policy It is a policy of the City of Paducah Section 8 Housing Program (PHA) to take reasonable steps to ensure meaningful access to PHA programs and activities by limited English proficient (LEP) persons, taking into account the proportion of LEP persons in the eligible service population, the frequency with which LEP individuals come in contact with the program, the nature and importance of the service provided by the program, and the available resources. In all housing programs it provides, PHA complies with applicable federal and state law, including, without limitation: Title VI of Civil Rights Act of 1964 and the implementing regulations at 24 CFR part 1, "Nondiscrimination in Federally Assisted Programs of the Department of Housing and Urban Development—Effectuation of Title VI of the Civil Rights Act of 1964"; Executive Order 13166. In addition, PHA complies with the related rules, regulations and procedures prescribed under the above-mentioned federal and state law. Definition of LEP Person Persons who do not speak English as their primary language and who have a limited ability to read, write, speak, or understand English can be LEP. Identifying LEP Individuals who Need Language Assistance PHA shall take reasonable steps to identify LEP persons served or encountered using the following methods: • Using the Census Bureau "I speak" cards to invite LEP persons to identify their language needs to staff, • Posting notices in PHA office listing commonly encountered languages and notifying LEP persons of available language assistance; • Requesting applicants and participants to list their primary language and need for interpreter on applications and eligibility statements; Tracking the LEP information electronically; 55 2013 City of Paducah Section 8 Housing Administrative Plan may, at its discretion, choose to provide their own Interpreter in addition to the one used by the family. PHA shall take reasonable steps to ensure competency of the language service provider. When providing oral language assistance, PHA shall use the following general criteria to ensure effective communication with LEP persons: • Demonstrated proficiency in and ability to communicate information accurately in both English and in the other language and identify and employ the appropriate mode of interpreting; • Knowledge in both languages of any specialized terms or concepts peculiar to PHA's program or activity and of any particular vocabulary and phraseology used by the LEP person; • Understanding of and following confidentiality and impartiality rules; • Awareness of "regionalisms" used by the LEP person; • Understanding of and adherence to their role as interpreters without deviating into a role as counselor, legal advisor, or other roles. When interpretation is needed and is reasonable, it shall be provided in a timely manner so as to avoid the effective denial of a benefit or service. Where access to or exercise of a benefit or service is not effectively precluded by a reasonable delay, the language assistance may be reasonably delayed. Written Language Services (Translation) PHA shall take reasonable steps to provide written translations of vital documents that list program rules and instructions for each eligible LEP language group that constitutes 5% or 28 persons, whichever is less, of program applicants/participants. Whether or not a document (or information it solicits) is vital may depend upon the importance of the program, information, encounter, or service involved, and the consequence to the LEP person if the information in question is not provided accurately or in a timely manner. For example, applications for certain recreational activities would not generally be considered vital documents, whereas applications for housing could be considered vital. All documents that require action from an applicant or participant shall include a statement in the languages of eligible groups reading "Important information about your housing! If you need assistance, please contact us immediately." PHA shall take reasonable steps to provide oral interpretation of other documents, if needed. For all documents available in the languages of eligible groups, the English version of the documents shall include a statement on the bottom in the languages of eligible groups reading "This form is available in (language) upon request." 57 2013 City of Paducah Section 8 Housing Administrative Plan Staff will be provided with listing of forms available in languages other than English and with a list of bilingual City staff. Providing Notice to LEP Persons PHA shall provide a notice to LEP persons of the availability of free language assistance that ensures meaningful access to PHA's programs and services. Examples of notification may include: • Posting signs in common areas, offices, and anywhere applications are taken. The signs shall be translated into the most common languages encountered; • Stating in outreach documents that language services are available. These statements shall be translated into the most common languages encountered; • Working with grassroots and faith -based community organizations and other stakeholders to inform LEP persons of PHA's services, including the availability of language assistance services; Monitoring and Updating LEP Plan PHA will monitor the implementation of the LEP plan on an ongoing basis to determine whether new documents, programs, services, and activities need to be made accessible for LEP persons. In addition, PHA will review its LEP plan annually to evaluate the following information: • Proportion of LEP persons in the eligible service population; • Frequency of encounters with LEP language groups; • Nature and importance of activities to LEP persons; • Availability of resources; • Whether existing language assistance meets the needs of LEP persons; • Whether staff knows and understands LEP plan and its implementation. 49. Reduction of Families Due to Reduced Funding In the event of a reduction of federal funding, the PHA will utilize a family reduction plan as follows: 1. Terminate HAP contracts for families that are receiving the least rental assistance not to exceed 5% of total families assisted, if reduction is not adequate; 2. Terminate HAP contracts for families based upon the most recent executed rental agreements to the extent that remedies reduction forecast. a. All terminated families due to reduced funding will be offered preference placement on waiting list to be re -assisted when adequate funding exist. 59 2013 City of Paducah Section 8 Housing Administrative Plan ➢ Pre -Contract HQS Inspections The annual sample of files and records will be drawn in an unbiased manner, that is documented. The minimum sample size to be reviewed for each SEMAP indicator is provided in 24 CFR Part 985, and will relate directly to each factor. ❑ PA Agenda Action Form Paducah City Commission Meeting Date: 03/19/2013 Short Title: Adopt Revised Section 8 Housing Utility Allowances Ordinance ❑ Emergency ® Municipal Order ❑ Resolution ❑ Motion ❑ Staff Work By: Danny W. Fugate Presentation By: Danny W. Fugate Background Information: The Section 8 Housing Program is required to annually review utility rates and adjust tenant supplied utility allowance deductions for participant affordability. Adjustments in the utility allowances (effective May 1, 2013) have been made for the following utilities that have adjusted since February 2012: Natural Gas- 21.7% decrease Sewer- 2.3% increase Propane -.373% decrease Electricity- 3.75% increase (blended rate) Jackson Purchase (0% increase), Paducah Power (7.5% increase) Goal: Strong Economy® Quality Services❑ Vital Neighborhoods[] Restored Downtowns[] Funds Available: Account Name: N/A Account Number: N/A Finance Staff Recommendation: Adopt Revised 2012 Utility Allowances for Section 8 Housing Program Attachments: City of Paducah Section 8 Housing Utility Allowances and supporting documentation from utility providers. Department Head City Clerk City Manager MUNICIPAL ORDER NO. A MUNICIPAL ORDER ADOPTING REVISIONS OF THE UTILITY ALLOWANCES FOR THE SECTION 8 HOUSING PROGRAM AS REQUIRED BY THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS REVISED BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the City of Paducah adopts Revisions of the Utility Allowances for the Section 8 Housing Program reflecting certain changes in utility rates. SECTION 2. These rates will become effective May I, 2013. SECTION 3. This Order shall be in full force and effect from and after the date of its adoption. Mayor ATTEST: Tammara S. Sanderson, City Clerk Adopted by the Board of Commissioners, March 19, 2013 Recorded by Tammara S. Sanderson, City Clerk, March t9, 2013 \mo\sec8util - 2013 Allowances for U.S. Department of Housing OMB Approval No. 2577-0169 and Urban Development (exp. 07/31/2007) Tenant -Furnished Utilities Office of Public and Indian Housing and Other Services See Public Reporting Statement and Instructions on back Locality Paducah/McCracken County Kentucky Unit Type Walk Up/Multi-family single level Date (mm/dd/yyyy) 05/01/2013 Utility or Service Monthly Dollar Allowances _4 0 BR 1 BR 2 BR 3 BR BR 5 8R Heating a. Natural Gas 9 9 13 15 b. Bottle Gas 32 3e 69 83 c. Oil / Electric 23 29 33 39 d. Coal / Other Cooking a. Natural Gas 6 6 6 9 b. Bottle Gas 13 13 18 31 c. Oil / Electric 2 3 5 7 d. Coal / Other Other Electric 10 18 22 2e Air Conditioning 6 7 14 17 Water Heating a. Natural Gas 9 9 12 13 b. Bottle Gas 24 28 29 38 c. Oil/ Electric 10 17 22 27 d. Coal/ Other Water 22 22 22 25 Sewer 12 12 12 12 Trash Collection 17 17 17 17 Range/Microwave 5 5 5 5 Refrigerator 6 6 6 6 Other -- specify Actual Family Allowances To be used by the family to compute allowance. Complete below for the actual unit rented. Utility or Service per month cost Healing $ Cooking Name of Family Other Electric Air Conditioning Address of Unit Water Heating Water Sewer Trash Collection Range/Microwave Refri erator Number of Bedrooms Other Total $ Page 1 of 1 form HUD -52667 (12/97) Previous editions are obsolete ref. Handbook 7420.8 Allowances for U.S. Department of Housing OMB Approval No. 2577-0169 and Urban Development (exp. 07/31/2007) Tenant -Furnished Utilities Office of Public and Indian Housing and Other Services See Public Reporting Statement and Instructions on back Locality Paducah/McCracken County Kentucky Unit Type Single Family/Manufactured Home Date (mm/dd/yyyy) 05/01/2013 Utility or Service Vonth1v Dollar Allowances 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Heating a. Natural Gas 35 18 23 b. Bottle Gas 88 105 117 c. Oil / Electric 50 55 60 d. Coal / Other Cooking a. Natural Gas 5 7 7 b. Bottle Gas 18 31 45 c. Oil / Electric 5 7 7 d. Coal/ Other Other Electric 23 29 33 Air Conditioning 18 23 26 Water Heating a. Natural Gas 9 10 13 b. Bottle Gas 29 38 46 c. Oil/ Electric 23 29 33 d. Coal/ Other Water 22 25 31 Sewer 12 12 12 Trash Collection 17 17 17 Range/Microwave 5 5 5 Refrigerator 6 6 6 Other -- specify Actual Family Allowances To be used by the family to compute allowance. Complete below for the actual unit rented. Utility or Service per month cost Heating $ Cooking Name of Family Other Electric Air Conditioning Address of Unit Water Heating Water Sewer Trash Collection Range/Microwave Refrigerator Numberof Bedrooms Other Total $ Page 1 of 1 form HUD -52657 (12J9/) Previous editions are obsolete ret. Handbook 7420.8 Allowances for U.S. Department of Housing OMB Approval No. 2577-0169 and Urban Development (exp. 07/31/2007) Tenant -Furnished Utilities Office of Public and Indian Housing and Other Services See Public Reporting Statement and Instructions on back Locally Paducah/McCracken County Kentucky Unit Type Duplex/Townhouse/Rowhouse Date (mm/dd/yyyy) 05/01/2013 Utility or Service Monthly Dollar Allowances 013R IBR 2 BR 3 BR 4 SR 58R Heating a. Natural Gas 10 12 15 16 23 b. Bottle Gas 54 63 88 105 117 c. Oil / Electric 31 38 50 55 60 d. Coal / Other Cooking a. Natural Gas 5 5 5 7 7 b. Softie Gas 13 13 18 31 45 c. Oil / Electric 2 3 5 7 7 d. Coal / Other Other Electric 10 19 23 29 33 Air Conditioning 6 10 18 23 26 Water Heating a. Natural Gas 7 7 9 10 13 b. Bottle Gas 24 28 29 38 46 c. Oil/ Electric 10 is 23 29 33 d. Coal/ Other Water 22 22 22 25 31 Sewer 12 12 12 12 12 Trash Collection 17 17 17 17 17 Range/Microwave 5 5 5 5 5 Refrigerator 6 6 6 6 6 Other -- specify Actual Family Allowances To be used by the family to compute allowance. Complete below for the actual unit rented. ervice per month cost $ Name of Family ctric VConditioning ioning Address of Unit atin Trash Collection Range/Microwave Refrigerator Number of Bedrooms Other Total $ form HUD -52667 (12/97) Previous editions are obsolete Page 1 of 1 ret. Handbook 7420.8 THE CITY Of PADUCAH SECTION B - EXIs'rING HOUSING PROGRAM CITY HALL, P.O. BOX 2267 Phone 270444.8628 1.800.247.2510 (Too for hearing impaired only) Fox(270)444-1352 January 30, 2013 ATMOS Engery ATTN: Leonard Matheny 2401 New Hartford Rd. Owensboro, KY 42303 Dear Sir: Danny Wm. Fugate, Program Administrator PADUCAH, KENTUCKY 42002.2267 The City of Paducah Section 8 Housing Program is required by federal regulations under the U.S. Department of Housing & Urban Development, to annually review the cost and allowances for resident supplied utilities. It is our responsibility to maintain these allowances at current anticipated costs to insure affordability for a maximum of 554 rent assisted and homeownership families in Paducah/McCracken Cotmty. Please supply to this Agency, (in percentage form) any cost increase or decrease of your corresponding utility on the below survey, return in the enclosed addressed envelope, fax to (270) 444.1352 or e-mail to dfug;rte+iAci,p idu :nh.ky.ug I greatly appreciate your assistance in our evaluation and request the information be returned by February 15, 2013. If you have any questions, please feel free to contact me at (270) 444-8628 or e-mail at <Ifu!;mc,'Vci.padiic,Il1.k%.IN. Sincerely,/ D y w. Fugate Administrator Padueah/McCracken County, Natural Average residential utility rate per (! e 4� (unit) February 2012 , 1t! 9 Average residential utility rate per C&T (unit) February 2013. wa� IV dye�rry�me /4 % of rate change from 2012-' A 7%, and/or anticipated increase during 2013- _% Completed by RepresentativDate _*L yr 1l1W' 7," le— is "'&� THE CITU OF rADUCAH SECTION 8 - EXISTING HOUSING PROGRAM CITY HALL, P.O. BOX 2267 Phone 270-444-8628 1.800.2474510 (TDD for hearing impaired only) Fax (270) 444-1352 January 30, 2013 Paducah/McCracken County Joint Sewer Agency ATTN: John Hodges 621 Northview Paducah KY 42001 Dear Sir: Danny Wm. Fugate, Program Administrator PADUCAH, KENTUCKY 42002-2267 FE8 0 7 ZU13 Paducah -McCracken Co. Joint 80iYdF ,Ag9ney The City of Paducah Section 8 Housing Program is required by federal regulations under the U.S. Department of Housing & Urban Development, to annually review the cost and allowances for resident supplied utilities. It is our responsibility to maintain these allowances at current anticipated costs to insure affordability for a maximum of 554 rent assisted and homeownership families in Paducah/McCracken County. Please supply to this Agency, (in percentage form) any cost increase or decrease of your corresponding utility on the below survey, return in the enclosed addressed envelope, fax to (270) 444-1352 or e-mail to dfusate cni ci paducah kms . I greatly appreciate your assistance in our evaluation and request the information be returned by February 15, 2013. If you have any questions, please feel free to contact me at (270) 444-8628 or e-mail at dfu-lteCa ci laducah kv tu. Sincerely,� fanny W�_Fugate Administrator County, Kentucky Utility Survey Average residential utility rate per/ ,(unit) February 2012 'F4.2_2— Average F,2YAverage residential utility rate per (unit) February 2013 , 3 % of rate change from 2012- -2.3 %, and/or anticipated increase during 2013- ('.nmmantc- Completed by Representative (� / Date 3 r/� piU.S. Energy Information 1. s Administration Petroleum & Other Liquids Heating Oil and Propane Update Release Date: February 21, 2013 1 Next Release Date: February 27, 2013 Weekly heating all and propane prices are only collected during the heating season, which extends from October through March. U.S. Heating Oil and Propane Prices Residential Heating Oil Residential Pr opane r. .. 4.30 3.10 ----- --.--- -------------------�----.. 3.70 �ga'�"--tr`*vfa�X�}•—__..— 2.50 r{.+...sr�t't►w�rs-�-R—._.._—.._ 3.10 2.50 ------- ---- ----T- Oct Nov Der Jan Feb Mair Apr --x-2011.13 —2012-13 2.50 �-t•-r .M�� r rel' 2.20 - _�--------- �° pI0 Oct Nsv Dec Jan Feb A•1cr Apr ��� --+-2011-12 --+---2012-13 t ✓ �'V' C change from change from Heating Oil 2/18/2013 week ago year ago Propane 2/18/2013 week ago ye Residential 4.153 $ 0.018 't0.109 Residential 2.490 t 0.007 0.373 Wholesale 3.373 4 0.029 -t 0.110 Wholesale 0.982 F 0.014 0.183 Note: Price in dollars per gallon, excluding taxes. Values shown on the graph and corresponding data pages for the previous week may be revised to account for late submissions and corrections. U.S. Distillate and Propane Supply U.S. Distillate Stocks U.S. ptopaue Stocks 1�0 --._--- ------ -----_ ____.-------_. SID loo )lIn-11 Dec•11 Jun -12 Dec.'2 .Jun.13 ,r Range A',ekly change from EO 40 _o - - Jun.11 Dec -11 jun .1; Dec -12 Jun.13 5 -'di Range—Y'Je kly change from http://www.eia.gov/petroleum/heatingoilpropane/ 2/26/2013 THE CITY Of rADUCAH SECTION 8 - EXISTING HOUSING PROGRAM CITY HALL, P.O. BOX 2267 Phone 270-444-8628 1-800-247-2510 (TDD for hearing Impaired only) Fax (270) 444-1352 January 30, 2013 Paducah Power System PO Box 180 Paducah KY 42002-180 Dear Sir: Danny Wm. Fugate, Program Administrator PARCAH, MUCKY 42002.2267 The City of Paducah Section 8 Housing Program is required by federal regulations under the U.S. Department of Housing & Urban Development, to annually review the cost and allowances for resident supplied utilities. It is our responsibility to maintain these allowances at current anticipated costs to insure affordability for a maximum of 554 rent assisted and homeownership families in Paducah/McCracken County. Please supply to this Agency, (in percentage form) any cost increase or decrease of your corresponding utility on the below survey, return in the enclosed addressed envelope, fax to (270) 444-1352 or e-mail to dfugatecr ci Paducah ky us . t � �( I greatly appreciate your assistance in our evaluation and request the information be returned by February 15, 2013. If you have any questions, please feel free to contact me GG . at (270) 444-8628 or e-mail at dfilaate cL,,ci p-,rducah kv us. I q VI Y° L Sincerely, 'Danny 'Danny "ugate Administrator (Residential Electricity) Paducah/McCracken County, Kentucky Utility Survey Average residential utility rate per _�k (unit) February 2012 :,0'715'9 Average residential utility rate per L (unit) February 2013 : 0'77-3,)— % '7'73,% of rate change from 2012- %, and/or anticipated increase during 2013- '% $ Comments: Completed by Representative — Date a Iff CITY OF NNW SECTION 8 - EXISTING HOUSING PROGRAM CITY HALL, P.O. BOX 2267 Phone 270-444-8628 1-800-247-2510 (TDD for hearing Impaired only) Fax (270) 444-1352 January 30, 2013 Jackson Purchase Energy ATTN: Terry Miller PO Box 3188 Paducah KY 42002-3188 IDI-1M3faiwo"No I Danny Wm. Fugate, Program Administrator PADUCAH, KENTUCKY 42002.2267 The City of Paducah Section 8 Housing Program is required by federal regulations under the U.S. Department of Housing & Urban Development, to annually review the cost and allowances for resident supplied utilities. It is our responsibility to maintain these allowances at current anticipated costs to insure affordability for a maximum of 554 rent assisted and homeownership families in Paducah/McCracken County. Please supply to this Agency, (in percentage form) any cost increase or decrease of your corresponding utility on the below survey, return in the enclosed addressed envelope, fax to (270) 444-1352 or e-mail to dfu2aterr�ci.paaducah.ky.Lis . I greatly appreciate your assistance in our evaluation and request the information be returned by February 15, 2013. If you have any questions, please feel free to contact me �Iat (270) 444-8628 or e-mail at dfugate,,Ft,, i.paducah.kv.us. �1 9� Siinc�erely,e Sl�40 -Danny W.I gate ! y 10 Administrator (Residential Electricity) r Paducah/McCracken County, Kentucky Utility Survey o � Average residential utility rate per --t9- (unit) February 2012 -�9- / Average residential utility rate per . (unit) February 2013 % of rate change from 2012- % , and/or anticipated increase during 2013- % Comments: P_4T-�F_- i ) 1 se /,.S , /IL-D£Usz 44� _/o &j- /.s L4I41eNja JN A -r- %hd'/S T, Ike. Completed by RepresentatiX-e %_ Date d—/ -al? Q THE CITY OF rADUCAh SECTION 8 - EXISTING HOUSING PROGRAM CITY HALL, P.O. BOX 2267 Phone 270.444-8628 1-800-247-2510 (TDD for hearing impaired only) Fax (270) 444.1352 January 30, 2013 City of Paducah Engineering/Public Works ATTN: Pam Souder PO Box 2267 Paducah KY 42002-2267 Dear Ms. Souder: Danny Wm. Fugate, Program Administrator PADUCAH, KENTUCKY 420022267 The City of Paducah Section 8 Housing Program is required by federal regulations under the U.S. Department of Housing & Urban Development, to annually review the cost and allowances for resident supplied utilities. It is our responsibility to maintain these allowances at current anticipated costs to insure affordability for a maximum of 554 rent assisted and homeownership families in Paducah/McCracken County. Please supply to this Agency, (in percentage form) any cost increase or decrease of your corresponding utility on the below survey, return in the enclosed addressed envelope, fax to (270) 444-1352 or e-mail to dfugate(a ei.paducah.ky.us . I greatly appreciate your assistance in our evaluation and request the information be returned by February 15, 2013. If you have any questions, please feel free to contact me at (270) 444-8628 or e-mail at dtu vate cUci.paducah.ky.us. ja54- Sincerely, Danny W. Fugate ` Administrator (Residential Solid Waste) NO Paducah/McCracken County, Kentucky Utility Survey Average residential utility rate per (unit) February 2012 Average residential utility rate per (unit) February 2013 % of rate change from 2012- % , and/or anticipated increase during 2013- _% Comments: Completed by Representative (��YM Date _ Agenda Action Form Paducah City Commission Meeting Date: March 19, 2013 Short Title: Amend Economic Incentives Criteria ❑Ordinance ❑ Emergency ® Municipal Order ❑ Resolution ❑ Motion Staff Work By: Jeff Pederson, City Mgr Presentation By: Jeff Pederson, City Mgr Background Information: On November 13, 2012, the City of Paducah passed an ordinance pledging support for the location of TeleTech Services to the community. TeleTech has committed to create and maintain 450 new full-time jobs at a minimum of $9.50 per hour. In order for the TeleTech wage to conform to the City's guidelines for providing economic incentives to companies, it is necessary to amend the criteria to specifically exclude customer call centers from meeting the wage requirement for funding from the Kentucky Industrial Development Authority. To accomplish this, Municipal Order No. 1035 is amended to add the following sentence to II.(2), Criteria for Economic Incentives, "This minimum wage requirement shall not apply to customer care (call) centers or warehousing facilities provided that an acceptable wage or annual payroll commitment is made by the project company by agreement with the City of Paducah or Paducah Economic Development Corporation. Goal: [:]Strong Economy ❑ Quality Services❑ Vital Neighborhoods❑ Restored Downtowns Staff Recommendation: To amend Municipal Order No. 1035 i� Department Head City Clerkity Manager � G; . MUNICIPAL ORDER NO. A MUNICIPAL ORDER AMENDING MUNCIPAL ORDER NO. 1035, ENTITLED, "A MUNICIPAL ORDER ESTABLISHING GUIDELINES FOR PROVIDING ECONOMIC INCENTIVES TO QUALIFIED PROJECTS LOCATING WITHIN THE BOUNDARIES OF THE CITY OF PADUC.AH." BE IT ORDERED BY THE CITY OF P.ADUCAH, KENTUCKY: PURPOSE. The City of Paducah ranks creating new employment opportunities for all citizens and expanding the mx base as a primary govemmenml priority. The City's objective is to enhance the quality of life for its citizens by seeking employers who will establish anew, qualified project within the City or McCracken County. To achieve its objective the City will, on a case by case basis, provide economic incentives as an inducement for qualified economic development. The City finds that such economic incentives fulfill a valid public purpose. The City's policy and criteria for economic incentives are provided in the Municipal Order, which may be amended from time to time. Nothing in this Municipal Order will be construed to imply or promise that the City is under an obligation to any prospective employer. it. CRITERIA FOR ECONOMIC INCENTIVES. A project may be qualified and eligible for approval if the Board of Commissioners finds that the following criteria are substantially met: L The project is a basic industry and brings new income and investment into the City. Types of basic industry include manufacturing, warehousing, industrial or selected service industries. A retail establishment will not be eligible. 2 . The proposed project must create at least 15 pernment, full time jobs, with average wages, projected more than 3 years, unless another date is mutually agreed to, which are not less than the wa es required in McCracken County by the Kentucky Industrial Development Authority (January 2004 $9.70 per hour). 3. The employer will pay not less than 50 percent of the cost of a healthcare insurance plan for all eligible full time employees, d. An investment of at least $350,000 00 projected over 3 years, unless another date is mutually agreed to, in improvements, either to real estate or personal business related property, except for Inventories and supplies. 5. The project must meet all licensing, zoning and environmental laws and regulations. & The project must be consistent with the City's comprehensive plan 7. If requested to do so, the County of McCracken agrees to equal the City's offer. III. TYPES OF INCENTIVES. The City of Paducah recognizes that unique aspects of each project requires flexibility in designing appropriate incentives. Therefore, the offering of an incentive, or combinations thereof, will be customized on a case by case basis. In some instances the input and assistance from other private and public parmers may be needed. The list below is a brief summary of various City, County, and State programs which may be available to qualified projects. • City Grants. Where the City can validate, to its satisfaction, that a valid public purpose is to be served, it may consider granting reasonable cash incentives to a qualified project. The amount and terms of such grants rest solely with the Board of Commissioners. • CUv Real Property. When suitable real property is available, the City may consider proposals to convey or lease the property to a qualified project. The terms of transfer or lease are subject to negotiation in each transaction but, where the City finds a valid public purpose is served, it may consider proposals to acquire or lease the property for consideration below market value. • P ducah Enterprise Zone. The Enterprise Zone is a specify area of the Cit) where both State and Local Governments have created special incentives to encourage new or expanded business activity. Any new or existing business who may be willing to make a commitment in terms of capital investment and/or the creation of jobs with the Zone may qualify for Enterprise Zone benefits. State benefits for qualified businesses include: exemption from Kentucky state sales tax and use tax on the purchase, lease or rental of equipment and machinery; exemption from Kentucky motor vehicle usage tax on vehicles purchases for use in the zone and certain tax credits based on wages paid employees who were formerly unemployed. City benefits for qualified businesses include: reduced 50 percent employee earnings tax; five year abatements on designated personal property; a 50 percent reduction in the as assessed value of real estate used in the zone and a wavier of various permit fees. Waiver of Fees. The City may waive for qualified projects all building permit fees and municipal similar charges. KIDA Program. The Kentucky Industrial Development Act (KIDA) is a program designed to reward manufacturers for job creation and high wages. The company must have a minimum investment of $100,000.00 and create a minimum of 15 new jobs, In addition, in McCracken County, a manufacturer must pay employees $9.70 per hour. With benefits included, this increases to $11.16 per hour. This incentive may be applied against expenditures for land acquisition, site development, utility extensions, architectural and engineering services, building, construction or rehab, purchase of building fixtures (includes installation costs) and manufacturing equipment. Eligible manufacturing equipment cost is limited to SI0,000.00 tax credit for every full-time job created over a two year period. In McCracken County, a company has two options: Option ion l: Credits to the corporate income tax for up to 100 percent of approved costs, for up to 10 years, on land, buildings, site development and building fixtures. Option ion 2: Companies may utilize a cash rebate of 3 percent of the employees' payroll for up to 10 years. KJDA. The Kentucky lobs Development Act (KJDA) applies to new and expanding non -manufacturing and non -retail establishments. In order to qualify, a company must create 15 full-time jobs and over 75 percent of the services are generated through revenue to out-of-state customers. An eligible company can receive up to 50 percent of Startup costs limited to S 10,000.00 per new job and up to 50 percent of the annual rental value of the facility. In addition, the company may receive a cash rebate of up to 5 percent of the employees' payroll. Of the total amount, 80 percent comes from the state and 20 percent from local government. The maximum duration is 10 years. Note: a local government may provide services in lieu of the local job assessment credit. State Training Program. The Bluegrass State Skills Corporation's (BSSC) 50 percent reimbursement will be based on the eligible costs for the type of training requested when an educational institution or consultant is providing the training. The maximum hourly rate includes: instruction, curriculum development and customization, materials, texts, supplies, travel, and equipment rental and administration costs. The average training cost per trainee in any single training activity shall not exceed $2,000.00. Property Tac Exemption. Property owned and financed by a governmental unit through industrial revenue bonds are taxed by the state at $0.015 per 5100.00 of leasehold value with approval from KEDFA. The same KEDFA approval will exempt the leasehold value from local property taxes. Exemption from local property taxes only on the leasehold value does not require KEDFA approval if an industrial revenue bond is utilized. Industrial Revenue Bonds under KRS 103.210 The following criteria shall be considered when evaluating the bond issue under KRS 103.210: A. The number of anticipated new full-time jobs to be created and the number of existing full-time jobs to be retained by the industrial project for which the bonds are to be issued. Full time job shall be defined as a position filled by an employee (excluding contract or part-time employees) that the company projects will work, on an annual basis one thousand seven hundred fifty (1,750) hours; B. The average salary to be paid each full-time job created or maintained and the employee benefits to be offered by the company requesting the issuance of the industrial revenue bonds: C. The amount of the capital investment being made by the company in the industrial project that is being financed by the industrial bonds; D. The unemployment rate in the county of the project; E. The state tax incentive programs and gram/loan programs that the company is seeking or in which it is participating for the particular industrial project; F. The new tax revenues which the company and the tax-exempt governmental unit or statutory authority anticipate will be produced by the industrial project over the life of the bond issue; and G. The approximate amount of the state and local ad valorem taxes which will he lost as a result of the applicant company leasing all or a portion of the industrial project from the tae exempt go%emmental unit or statutory authority. IV. RECAPTURE. 1. If the employer fails to either meet the required levels of employment or investment for the project by the end of the third year, unless another time has been mutually agreed to, then the City shall be fully reimbursed, plus interest calculated by using New York prime rates, for the value of economic incentives provided to the project. 2. If the Bond of Commissioners of the City finds that the failure to attain or maintain the required levels of employment or investment, in spite of the employers good faith best efforts, were the result of unavoidable and unforeseen circumstances, including, but, not limited to an Act of Godor national emergencies, then the Board, at its sole discretion, may: (a) seek a pro rata reimbursement, or(b) waive any reimbursement. V. EFFECTIVE DATE. This Municipal Order shall be effective upon the date of its adoption. MAYOR ATTEST: Tammara S. Brock, City Clerk Ado pled by the Bou, of Comml+slone sJanuary 20, 2004 Recanled by Tmnmara S. Brack. City Clerk, January 20. 2004 onoteconomic incentives 00050170 Agenda Action Form Paducah City Commission Meeting Date: March 19, 2013 Short Title: Amend Economic Incentives Criteria [—]Ordinance ❑ Emergency ® Municipal Order ❑ Resolution ❑ Motion Staff Work By: Jeff Pederson, City Mgr Presentation By: Jeff Pederson, City Mgr Background Information: On November 13, 2012, the City of Paducah passed an ordinance pledging support for the location of TeleTech Services to the community. TeleTech has committed to create and maintain 450 new full-time jobs at a minimum of $9.50 per hour. In order for the TeleTech wage to conform to the City's guidelines for providing economic incentives to companies, it is necessary to amend the criteria to specifically exclude customer call centers from meeting the wage requirement for funding from the Kentucky Industrial Development Authority. To accomplish this, Municipal Order No. 1035 is amended to add the following sentence to IL(2), Criteria for Economic Incentives, "This minimum wage requirement shall not apply to customer care (call) centers or warehousing facilities provided that an acceptable wage or annual payroll commitment is made by the project company by agreement with the City of Paducah or Paducah Economic Development Corporation. Goal: ❑Strong Economy ❑ Quality Services❑ Vital Neighborhoods❑ Restored Downtowns Staff Recommendation: To amend Municipal Order No. 1035 Department Head City Clerk _ ;i= iry Manager L . MUNICIPAL ORDER NO. A MUNICIPAL ORDER AMENDING MUNCIPAL ORDER Nil. 1035, ENTITLED, "A MUNICIPAL ORDER ESTABLISHING GUIDELINES FOR PROVIDING ECON0MIC INCENTIVES TO QUALIFIED PROJECTS LOCATING WITHIN THE BOUNDARIES OF THE CITY OF PADUCAH." BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: PURPOSE. The City of Paducah ranks creating new employment opportunities for all citizens and expanding the tax base as a primary governmental priority. The City's objective is to enhance the quality of life for its citizens by seeking employers who will establish a new, qualified project within the City or McCracken County. To achieve its objective the City will, on a case by case basis, provide economic incentives as an inducement for qualified economic development. The City finds that such economic incentives fulfill a valid public purpose. The City's policy and criteria for economic incentives we provided in the Municipal Order, which may be amended from time to time. Nothing in this Municipal Order w ill be construed to imply or promise that the City is under an obligation to any prospective employer. IL CRITERIA FOR ECONOMIC INCENTIVES. A project may be qualified mid eligible for approval if the Board of Commissioners fmds that the following criteria are substantially met: 1. The project is a basic industry and brings new income and investment into the City. Types of basic industry include manufacturing, warehousing, industrial or selected service industries. A retail establishment will not be eligible. 2 . The proposed project must create at least 15 permanent, full time jobs, with average wages, projected more than 3 yews, unless another date is mutually agreed to, which are not less than the wages required in n.Rrrnrken County by the Kentucky Industrial Development Authority (January 2004 =.$9.70 per hour). 3. The employer will pay not less than 50 percent of the cost of a healthcare insurance plan for all eligible full time employees. 4. An investment of at least $350,000.00 projected over 3 yens, unless another date is mutually agreed to, in improvements, either to real estate or personalfbusiness related property, except for inventories and supplies. 5. The project must meet all licensing, zoning and environmental laws and regulations. 6. The project must be consistent with the City's comprehensive plan. 7. If requested to do so, the County of McCracken agrees to equal the City's offer. III. TYPES OF INCENTIVES. The City of Paducah recognizes that unique aspects of each project requires flexibility in designing appropriate Incentives. Therefore, the offering of an incentive, or combinations thereof, will be customized on a case by case basis. In some instances the input and assistance from other private and public partners may be needed. The list below is a brief summary of various City, County, and State programs which may be available to qualified projects. • City Grants. Where the City can validate, to its satisfaction, that a valid public purpose is to be served, it may consider granting reasonable cash incentives to a qualified project. The amount and terms of such grants rest solely with the Bond of Commissioners. • City Real Property. When suitable real property is available, the City may consider proposals to convey or lease the property to a qualified project. The terms of transfer or lease are subject to negotiation in each transaction but, where the City finds a valid public purpose is served, it may consider proposals to acquire or lease the property for consideration below market value. • Pad cah En[ rprise Zone. The Enterprise Zone is a specific area of die City where both State and Local Governments have created special incentives to encourage new or expanded business activity. Any new or existing business who may be willing to make a commitment in terms of capital investment and/or the creation of jobs with the Zone may qualify for Enterprise Zone benefits State benefits for qualified businesses include: exemption from Kenmcky state sales tax and use tax on the purchase, lease or rental of equipment and machinery; exemption from Kentucky motor vehicle usage tax on vehicles purchases for use in the zone and certain tax credits based on wages paid employees who were formerly unemployed. City benefits for qualified businesses include: reduced 50 percent employee earnings tax; FIN e year abatements on designated personal property; a 50 percent reduction in the tax assessed value of real estate used in the zone and a wavier of various permit fees. Waiver of Fees. The City may waive for qualified projects all building permit fees and municipal similar charges. KIDA Program. The Kentucky Industrial Development Act (KIDA) is a program designed to reward manufacturers for job creation and high wages. The company must have a minimum investment of $100,000.00 and create a minimum of 15 new jobs. In addition, in McCracken County, a manufacturer must pay employees $9.70 per hour. With benefits included, this increases to $1 t-16 per hour. This incentive may be applied against expenditures for Land acquisition, site development, utility extensions, architectural and engineering services, building, construction or rehab, purchase of building fixtures (includes installation costs) and manufacturing equipment. Eligible manufacturing equipment cost is limited to $10,000.00 tax credit for every full-time job created over a two year period. In McCracken County, a company has two options: Option ion l: Credits to the corporate income tax for up to 100 percent of approved costs, for up to 10 years, on land, buildings, site development, and building fixtures. Option 2: Companies may utilize a cash rebate of 3 percent of the employees' payroll for up to 10 years. KJDA. The Kentucky Jobs Development Act (KJDA) applies to new and expanding non -manufacturing d non -retail establishments. In order to qualify, a company must create 15 full-time jobs and over 75 an percent of the services are generated through revenue to out-of-state customers. An eligible company can receive up to 50 percent of startup costs limited to SI0,000.00 per new job and up to 50 percent of the annual rental value of the facility. In addition, the company may receive a cash rebate of up to 5 percent of the employees' payroll. Of the total amount, g0 percent comes from the state and 20 percent from local government. The maximum duration is 10 years. Note: a local government may provide services in lieu of the local job assessment credit. State Training Program. The Bluegrass state Skills Corporation's (BSSC) 50 percent reimbursement will be based on the eligible costs for the type of training requested when an educational institution or consultant is providing the training. The maximum hourly rate includes: instruction, curriculum development and customization, materials, texts, supplies, travel, and equipment rental and administration costs. The average training cost per trainee in any single training activity shall not exceed $2,000.00. Property Tar Exemption Property owned and financed by a govemmental unit through industrial revenue bonds are taxed by the state at $0.015 per 5100.00 of leasehold value with approval from KEDFA. The same KEDFA approval will exempt the leasehold value from local property tares. Exemption from local property taxes only on the leasehold value does notrequire KEDFA approval if an industrial revenue bond is utilized. Industrial Revenue Bonds under KRS 103.210 The following criteria shall be considered when evaluating the bond issue under KRS 103110. A. The number of anticipated new full-time jobs to be created and the number of existing full-time jobs to be retained by the industrial project for which the bonds are to be issued. Full-time job shall be defined as a position filled by an employee (excluding contract or part -tine employees) that the company projects will work, on an annual basis one thousand seven hundred fifty (1,750) hours; B. The average salary to be paid each full-time job created or maintained and die employee benefits to be offered by the company requesting the issuance of the industrial revenue bonds. C. The amount of the capital investment being made by the company, in the industrial project that is being Financed by the industrial bonds; D. The unemployment rate in the county of the project; E. The state tax incentive programs and grant/loan programs that the company is seeking or in which it is participating for the particular industrial project; F. The new in, revenues which the company and the tax-exempt govemmental unit or statutory authority anticipate will be produced by the industrial project over the life of the bond issue; and G. The approximate amount of the state and local ad valorem taxes which will be lost as a result of the applicant company leasing all or a portion of the industrial project from the tax-exempt governmental unit or statutory authority. IV. RECAPTURE. I . If the employer fails to either meet the required levels of employment or investment for the project by the end of the third year unless another time has been mutually agreed to, then the City shall be fully reimbursed, plus interest calculated by using New York prime rates, for the value of economic incentives provided to the project. 2. If the Board of Commissioners of the City finds that the failure to attain or maintain the required levels of employment or investment, in spite of the employers good faith best efforts, were the result of unavoidable and unforeseen circumstances, including, but, not limited to an Act of God or national emergencies, then the Board, at its sole discretion, may: (a) seek a pro rata reimbursement, or(b) waive any reimbursement. V. EFFECTIVE DATE. This Municipal Order shall be effective upon the date of its adoption. YOR ATTEST: Tammara S. Brock, City Clerk Ad at led by Ihe aoad of Cammuemuan January 20, 2004 Retarded by Taminao S. Bmck, City C1edkJanoary20, 2004 dmd<canomic incemi— W0501 70 Agenda Action Form Paducah City Commission Meeting Date March 12, 2013 Short Title: Greenway Village — Higdon Development ❑ Ordinance ® Emergency ❑ Municipal Order ❑ Resolution ❑ Staff Work By: Steve Ervin/Rick Murphy Presentation By: Steve Ervin Background Information: The intent of this plat is to dedicate Right -Of -Way to the City of Paducah for the western portion of Trail Head Drive and the western portion of Trail Loop. This plat is also establishing 18' front -yard setbacks on the north and west side of Trail Loop. The Final subdivision plan was adopted by the Planning Commission on March 4, 2013. The City of Paducah Engineering/Public Works Department has received an $80,000.00 irrevocable letter of credit from Paducah Bank. Goal:® Strong Economy® Quality Services® Vital Neighborhoods❑ Restored Downtowns Funds Available: Account Name: Account Number: Staff Recommendation: Approval of Final Plat and accept public right-of-way Motion: Attachments: Resolution, Final Plat /11 Finance Department Head City Clerk Crty Manager Agenda Action Form Paducah City Commission Meeting Date: March 12, 2013 Short Title: Noble Park Pool Renovations Phase III Spray Pad Contract ®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Arnie Clark & Mark Thompson Presentation By: Mark Thompson Background Information: In 2007 the swimming pool at Noble Park was found to be inoperable due to a series of leaks in the piping including a break in a large 8" feed line. This was the beginning of a series of annual repairs that have required significant funding since. NVith the last budget cycle the Commission authorized staff to develop designs for the renovation pool and concession stand. The contract for the first phase of renovation of the main pool was approved at $795,930. The Phase II contract for $139,607 included the concession stand upgrade. This is final construction phase bid (Phase III) that includes the spray pad area. Public bids were advertised and three local contractors provided proposals. The lowest evaluated bid was from Murtco of Paducah at $188,466. This was in line with pre -construction estimates. The total project estimate to date is $1,172,000. Goal: []Strong Economy ® Quality ServicesE Vital Neighborhoods❑ Restored Downtowns of Funds Available: Account Name&A0095 NP Pool Renovation 3 n) 3 Account Number: 40-8821-536.23-01p1 Finance Staff Recommendation: Approval Attachments: Architect's letter, bid tabulation MHT�— Department Head City Clerk City Manager Agenda Action Form Paducah City Commission March 12, 2013 Short Title: Amend Animal -Drawn Carriage Ordinance, Chapter 122 ® Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Mark Thompson, Lisa Thompson, Rick Murphy Presentation By: Mark Thompson Background Information: In an effort to provide a competitive business atmosphere and to create additional business opportunities at new locations staff is recommending amending the animal -drawn carriage ordinance. Currently, by ordinance, the City is supposed to initiate a bid process every three years to select an exclusive vendor for animal -drawn carriages inside the City limits. We have not been in compliance with this ordinance for some time. The recommended changes to an amoral pennit application will alloN� for more than one vendor and up to seven routes within the City as approved by the Traffic Commission. There may be routes included in downtown, Lower Town and Noble Park as well as special use authorization for weddings and other group outings. Goal: ❑Strong Economy ® Quality Services ® Vital Neighborhoods ® Restored Downtowns Funds Available: Account Name: N/A Finance Account Number: N/A Project Number: N/A Staff Recommendation: Approval Attachment: MHT Department Head City Clerk City Manager Agenda Action Form Paducah City Commission Meeting Date: March 12, 2013 Short Title: Purchase of Two new Triple Combination Pumper Trucks for use by the Paducah Fire Department ®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Angela Weeks, EPW Proj Mgr Randy Crouch, EPW Maintenance Supt. Ronnie Rathman, Fire BC Presentation By: Rick Murphy, P.E., City Engineer -Public Works Director Steve Kyle, Fire Chief Background Information: On February 15, 2013, the Engineering and Public Work's Department received and opened sealed bids for Two new Triple Combination Pumper Trucks for use by the Paducah Fire Department. Two bids were received, with Bluegrass Fire Equipment & Pierce Manufacturing, Inc., submitting the lowest evaluated bid in accordance with the specifications of $431,794 per fire truck and a total bid of $863,588 for both trucks. As an advantage, Bluegrass & Pierce has proposed a Pre -payment Discount savings in the amount of $31,234.00 if the City makes pre -payment of the two pumper trucks upon contract acceptance. This pre -payment would be a tremendous saving for the City. Therefore, with the Pre -payment Discount deducted from the total Bid Price, the revised cost of the two new pumper trucks will be $832,354.00. The estimated time for delivery of the new truck will be 6 months to 7 months after contract execution and order. This total pre -paid amount is under the proposed Fleet Plan Budgeted amount of $860,000. Goal: ❑Strong Economy ®Quality Services ❑Vital Neighborhoods ❑Restored Downtowns Funds Available: Account Name: Fleet Fund 3 7m / 3 Account Number: 071-0210-542-4ett in nce �ooful� Staff Recommendation: To receive and file the bids and accept the lowest evaluated bid in the amount of $863,588 from Bluegrass Fire Equipment Company, Inc., as the Vendor and Pierce Manufacturing, Inc. as the Manufacturer for the purchase of Two Triple Combination Pumper Trucks for use by the Paducah Fire Department; and to allow the pre -payment savings in the amount of $31,234.00, which will bring the revised total contract amount for the purchase of the two pumper trucks to $832,354.00. Agenda Action Form Attachments: Ad, Bid Proposals, Bid Tab, Evaluation Forms, Copy of Proposed Contract Page 2 Agenda Action Form Paducah City Commission Meeting Date: March 12, 2013 Short Title: Purchase of a new TYMCO Street Sweeper for use in EPW-Street Division utilizing the Kentucky State Contract ®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Angela Weeks, EPW Proj Mgr Randy Crouch, EPW Maintenance Supt Presentation By: Rick Murphy, P.E., City Engineer -Public Works Director Randy Crouch, EPW Maintenance Supt Background Information: In accordance with the adopted Fleet Plan Budget, a new street sweeper was authorized to be purchased for use in the EPW-Street Division. The authorized Kentucky State Contract vendor for a TYMCO Street Sweeper Model #600 is Stringfellow, Inc., located in Louisville, KY, who quoted a price of $180,576.00 for this sweeper. This price is below the authorized $225,000 budgeted price. —` The Kentucky Master Agreement number is MA #7581100000319-3. Goal: ❑Strong Economy ®Quality Services []Vital Neighborhoods ❑Restored Downtowns Fonds Available: Account Name: Rolling Stock/Vehicles 3 20/3 Fleet Lease Trust Fun ante Account Number: 071-0210-542-400 � Staff Recommendation: To authorize the purchase of a new TYMCO, Inc. Street Sweeper for use by the EPW-Street Division from Stringfellow, Inc., for a quoted price of $180,576.00. Attachments: Quote and KY Master Agreement Information Agenda Action Form Paducah City Commission Meeting Date: March 12, 2013 Short Title: Closure of a Portion of an Alley from Caldwell Street to Norton Street located between South 9th Street and Walter Jetton Boulevard ®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Angela Weeks, EPW Proj Mgr Presentation By: Rick Murphy, P.E., City Engineer -Public Works Director Background Information: B. A. and Frances Hamilton, Trustees of the Hamilton Living Trust along with James and Linda Green have submitted an application requesting that a portion of a 15' alley located from Caldwell Street to Norton Street and being located in the block between South 9th Street and Walter Jetton Boulevard be closed. All real property owners whose land adjoins any part of the proposed right-of-way to be closed have signed the application. On March 4, 2013, the Planning Commission held a Public Hearing and made a positive recommendation to the City Commission for this closure. All of the utility companies have signed the plat. There are no utility easements being retained within this portion of the proposed alley closure. Goal: []Strong Economy ❑Quality Services ®Vital Neighborhoods ❑Restored Downtowns Funds Available: Account Name: N/A Account Number: Finance Staff Recommendation: To adopt an ordinance authorizing the closing of a portion of a 15' alley located from Caldwell Street to Norton Street and being located in the block between South 9th Street and Walter Jetton Boulevard be closed and authorizing the Mayor to execute the plat and all necessary documents to complete the transfer of property. Attachments: Original Street Closure Application, Proposed Closure Plat, Planning Commission Resolution J' 4Depa ent H d City Clerk City Manager Agenda Action Form Paducah City Commission Meeting Date: March 12, 2013 Short Title: Inter -Local Agreement Between the City of Paducah and McCracken County, to Finance, Construct and Lease Customer Care Center ®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Jeff Pederson and Lisa Emmons Presentation By: Jeff Pederson Background Information: On November 13, 2012, the City of Paducah, by Municipal Ordinance, did pledge support for the location of Teletech Services to the City through a commitment to transfer land and to invest up to $1.35 million to the project to construct a customer contact center in Conunerce Park. McCracken County and Greater Paducah Economic Development Corporation also made a commitment to make a cash payment to the Project. This Agreement establishes a financing Plan whereby the three parties will contribute monies into a Construction Fund from which all costs associated with building construction will be paid. This Agreement further designates the City as the Agent for all three parties for administration of the Project, including planning and design, procurement and contract negotiation subject to agreement by the County. The Agreement outlines procedures for project disbursements under direction of the Project Manager, who has been designated as the City Manager. Finally, the Agreement requires that any monies received by Teletech as rental payments will be deposited into the Fund. The following amounts are required to be deposited into the Construction Fund: City of Paducah: $1.35 million McCracken County: $1.35 million GPEDC: $300,000 Goal: ®Strong Economy ❑ Quality Services❑ Vital Neighborhoods❑ Restored Downtowns Funds Available: Account Name: Account Number: Finance Staff Recommendation: Attachments: 157531 ver3 INTERLOCAL COOPERATION AGREEMENT THIS INTERLOCAL COOPERATION AGREEMENT (the "Agreement') made and entered into as of the day of 2013 by and between the CITY OF PADUCAH, KENTUCKY (the "City") and the COUNTY OF McCRACKEN, KENTUCKY (the "County"). WITNESSETH WHEREAS, the City and the County have determined that it is necessary and desirable to acquire, construct, and install a customer care contract center building and associated parking lot (the "Project Improvements") on a certain tract of land under the control of the City and the County (pursuant to a long-term ground lease) within the Paducah Commerce Park (the "Project"), which Project is to be subleased by the City and the County to TeleTech Services Corporation ("TeleTech"), whom will locate and operate a general and administrative offices for a customer care center with technical support capabilities and will bring approximately 450 new full-time jobs to Paducah, McCracken County; and to finance said Project through (i) the cash payment in the amount of $1,350,000 from the City (the "City's Contribution"), (ii) the cash payment of $1,350,000 from the County (the "County's Contribution"), and (iii) a cash payment in the amount of $300,000.00 from G.P.E.D.C., Inc., ("GPEDC") (the "GPEDC's Contribution") (collectively, the "Contributions"); and WHEREAS, the Project Improvements will be owned by the City and the County; and WHEREAS, pursuant to the provisions of Sections 66.011 et. seq. of the Kentucky Revised Statutes, as amended, (the "GO Act") each of the City and the County have determined that the Project constitutes a public project, for which each of the City and the County would be individually authorized to issue general obligation indebtedness; and WHEREAS, pursuant to Sections 65.210 to 65.300, inclusive, of the Kentucky Revised Statutes, as amended (the "Interlocal Act") the City and the County may join together to accomplish what each may accomplish individually; and WHEREAS, the City and the County have determined that it is in the public interest that the Project be financed under a common plan of finance by the City and the County; and WHEREAS, as a result to the foregoing findings, the City and the County have determined that it is advantageous and in the best interests of the inhabitants of the City and the County that the City and the County proceed to undertake the construction and financing of the Project in the most cost effective manner pursuant to this Agreement and the Interlocal Act; and WHEREAS, the City and the County now wish to establish their respective rights and duties in connection with the acquisition, construction and financing of the Project, all in accordance with the Interlocal Act; NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS BETWEEN THE PARTIES, IT IS AGREED AS FOLLOWS: "CITY" means the City of Paducah, Kentucky acting by and through its City Commission "CITY'S CONTRIBUTION" means the cash payment in the amount of $1,350,000 to be deposited by the City into the Construction Fund. "CODE" means the Internal Revenue Code of 1986 as amended and all Regulations promulgated thereunder. "CONSTRUCTION AGREEMENT" shall mean (i) the construction agreements between the City and the County and contractor or contractors selected by the City and the County with respect to the construction of the Project Improvements and (ii) all agreements related to the design and construction of the Project Improvements. "CONSTRUCTION FUND" means the account established by the City into which the Contributions shall be deposited. "COUNTY" means the County of McCracken, Kentucky acting by and through its Fiscal Court. "COUNTY'S CONTRIBUTION" means the cash payment in the amount of $1,350,000 to be deposited by the County into the Construction Fund. "GO ACT" means KRS 66.011 et. seq. of the Kentucky Revised Statutes, as the same may from time to time be amended. "GPEDC" shall mean the G.P.E.D.C., INC., doing business under the assumed name of the Greater Paducah Economic Development Council, Inc., a Kentucky not -for -profit -corporation. "GPEDC'S CONTRIBUTION" means the cash payment in the amount of $300,000 to be deposited by the GPEDC into the Construction Fund. "LEASE" means the Lease Agreement dated January 1, 2013 between G.P.E.D.C., Inc., a Kentucky not -for -profit -corporation, and TeleTech, which lease was subsequently assigned to the City and the County. "LEASE REVENUES" means the amounts designated as Base Rent in the Lease. "INTERLOCAL ACT" means KRS 65.210 through 65.300. "KRS" means the Kentucky Revised Statutes, as amended. "MOU" shall mean that certain Memorandum of Understanding among the GPEDC and TeleTech relating to the Project, executed by the respective parties thereto on November 1, 2012, as the same may be amended or supplemented from time to time in accordance with its terms. 2 "PROJECT" shall mean, collectively, the Project Improvements and the Project Site. "PROJECT IMPROVEMENTS" shall mean the a customer care contract center building and associated parking lot to be constructed on the Project Site and financed by the City, the County, and GPEDC, and owned by the City and the County. "PROJECT MANAGER" shall mean Jeff Pederson the City Manager. "PROJECT SITE" shall mean the site owned by GPEDC on which the Project Improvements are to be located, as more particularly described in Exhibit A attached hereto. "TELETECH" means TeleTech Services Corporation ("TeleTech"), a Colorado corporation, with a principal mailing address of 9197 S. Peoria St., Englewood, Colorado. 1. GENERAL FINANCING PLAN It is the intention of the parties to this Agreement to set forth their respective rights and duties in connection with financing the Project. The Contributions of the City, the County, and GPEDC shall be utilized to pay the costs of the construction and installation of the Project Improvements, however, the Project Improvements will be owned by the City and the County. The Project will be leased by the City and the County to TeleTech pursuant to the Lease for a term of five (5) years with three (3) five (5) year renewal terms and any rental payments resulting from the Lease, if any, will be deposited to the Construction Fund for the administration, operation, and maintenance of the Project and to insure TeleTech's compliance with the Lease and the MOU. 2. FINANCIAL RIGHTS AND DUTIES OF GPEDC, THE CITY AND THE COUNTY GPEDC, the City, and the County shall timely deposit the Contributions in the Construction Fund to pay the costs of the Project in accordance with the terms of this Agreement, the MOU, and the Lease. 3. THE CITY TO ACT AS AGENT FOR ADMINISTRATION OF THIS AGREEMENT AND CONSTRUCTION OF PROJECT IMPROVEMENTS In connection with the administration of this Agreement and the construction of the Project Improvements, the County designates the City as its agent for all purposes of the Project Improvements, including inter alia, (i) causing the planning and design of the Project Improvements and approval thereof by all applicable regulatory agencies; (ii) causing construction proposals to be secured in respect of the Project Improvements, with due regard to the provisions of Kentucky law; (iii) entering into a Construction Agreement for the Project Improvements; and (iv) for the performance of all other duties customarily incident to the foregoing provisions of subparagraph (i), (ii) and (iii). Actions heretofore taken by the City in such respects are expressly affirmed and ratified by the County. The City covenants and agrees that it shall not enter into any Construction Agreement or incur any costs payable from amounts deposited in the Construction Fund without the prior written approval of the County. The City hereby designates the City Manager as the Project Manager for the construction of the Project Improvements. 4. APPLICATION OF CONTRIBUTIONS FOR CONSTRUCTION OF PROJECT IMPROVEMENTS The Contributions shall be timely deposited in the Construction Fund, and the Construction Fund shall be held and disbursed by the City or its designee, as follows: (a) Moneys credited to the Construction Fund shall be expended upon written request, addressed to the Project Manager, only for payment of the costs of the Project Improvements and costs payable under any construction agreement, subject to the provisions and restrictions of this Section. (b) Amounts in the Construction Fund shall be disbursed and applied only upon written direction of the Project Manager and only for the making of disbursements for construction of the Project Improvements and related costs, pursuant to the terms of the Construction Agreement to be entered into, and any other agreement pursuant to which the Project Improvements, or any part thereof, is to be acquired, constructed, or installed. The Project Manager shall keep and maintain complete and detailed records with respect to the Construction Fund. (c) Each withdrawal of moneys from the Construction Fund shall be undertaken by a requisition executed by the Project Manager containing the following with respect to each payment or disbursement to be made: is to be made; (i) the name of the person or persons to whom the payment or disbursement (ii) the amount to be paid to such person or party; (iii) the applicable contract or agreement in respect of which the payment or disbursement is to be made; (iv) that with respect to such requested payment or disbursement there has not been filed with or served upon the City or the County notice of any lien or attachment upon, or claim affecting the right to receive payment of any of the amounts requisitioned and payable to any of the persons, firms or corporations named in such requisition which has not been released or will not be released simultaneously with such payment; (v) that such requisition contains no item representing payment on account of any retained percentages of the cost of construction of the Project Improvements which the City and the County are at the date of such requisition entitled to retain; and (vi) that in connection with such requisition, the Project Manager has received such proofs, executed by parties to the Construction Agreement or other appropriate agreement, as are properly required by the Project Manager to the effect that each obligation set forth in said requisition has been (a) properly incurred, and (b) is then due and unpaid; and (c) that insofar as such obligation was incurred for work, services, materials, equipment or supplies, such work or services were actually performed, or such materials, equipment or supplies, were actually installed in furtherance of the installation or construction of the Project Improvements or were delivered at the Project Site for such purposes, all in accordance with the Construction Agreement. (d) At such time as all moneys due to be disbursed from the Construction Fund have been so disbursed and paid, and the Project Manager has received a certificate stating that completion of the Project Improvements has occurred, which Certificate shall be accompanied by an opinion of legal counsel stating that there are no uncancelled mechanics', laborers', contractors' or materialmen's liens on file in any public office where the same should be filed in order to be valid liens against any part of the Project Improvements, and that in the opinion of said legal counsel the time within which such liens can be filed has expired, the balance in such Construction Fund, if any, shall be transferred by the Project Manager in accordance with the mutual written instructions of the City and the County and in accordance with the terms of the MOU. ADMINISTRATION AND MANAGEMENT OF THE LEASE In connection with the administration and management of the Lease with TeleTech, the County designates the City as its agent for all purposes. Any rental payments resulting from the Lease, if any, will be deposited to the Construction Fund for the administration, operation, and maintenance of the Project and to insure TeleTech's compliance with the Lease and the MOU. Any balance remaining in the Construction Fund as a result of the rental payments shall be disbursed out annually to the City and the County, in equal shares, less any expenses incurred in the administration and management of the Lease. 6. MISCELLANEOUS This Agreement shall be binding upon the parties hereto and upon their respective permitted successors and transferees. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky. If one or more provisions of this Agreement, or the applicability of any such provisions for any set of circumstances shall be determined to be invalid or ineffective for any reason, such determination shall not affect the validity and enforceability of the remaining provisions of this Agreement or the applicability of the provisions found to be invalid or ineffective for a specific set of circumstances to other circumstances. This Agreement may be amended or any of its terms modified only by a written document authorized, executed and delivered by each of the parties hereto. This Agreement may be executed in one or more counterparts and when each party hereto has executed at least one counterpart, this Agreement shall become binding on all parties and such counterparts shall be deemed to be one and the same document. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date first above written. Attest: City Clerk Attest: Fiscal Court Clerk The foregoing instrument was prepared by: Lisa H. Emmons Denton & Keuler, LLP Post Office Box 929 Paducah, Kentucky 42002-0929 CITY OF PADUCAH, KENTUCKY, Authorized by Action of the City Commission of the City on 2013 Mayor COUNTY OF MCCRACKEN, KENTUCKY, Authorized by Action of the Fiscal Court of the County on , 2013 Judge/Executive 3 HAVE SEEN AND AGREED TO AND ACKNOWLEDGES ITS OBLIGATIONS TO MAKE THE GPEDC CONTRIBUTION TO THE PROJECT. G.P.E.D.C.,INC. Dated: COMMONWEALTH OF KENTUCKY OFFICE OF THE GOVERNOR DEPARTMENT FOR LOCAL GOVERNMENT 1024 CAPITAL CENTER DRIVE, SUITE 340 - FRANKFORT, KENTUCKY 40601-8204 (502)573-2382 INTERLOCAL COOPERATION AGREEMENT TeleTech Customer Care Center between McCracken County, Kentucky and Cite of Paducah, Kentucky Approved _ '2013 as Commissioner, Department of Local Government EXHIBIT A Being Tract 30, of Section VI, in the Paducah Information Age Park Subdivision, as shown on the plat of said subdivision of record in Plat Section "K," page 444, in the McCracken County Court Clerk's office. Being part of the same property conveyed to the G.P.E.D.C., INC., a Kentucky not-for-profit corporation by deeds dated October 11, 1991, of record in Deed Book 760, page 504, dated November 11, 1992, of record in Deed Book 780, page 642, and dated December 31, 1992, of record in Deed Book 782, page 685, in the McCracken County Court Clerk's office.