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HomeMy WebLinkAboutCCMPacket2013-05-28NOTICE OF RESCHEDULED REGULAR MEETING FOR THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY TO: The regularly scheduled meeting time and location of the Board of Commissioners of the City of Paducah for May28, 2013, is being changed from 5:30 p.m. to begin at 10:00 a.m. and will be held at the Paducah Commerce Center located at 300 South 3`d Street. The AGENDA is attached. c k'k �J� 14 Mayor CERTIFICATE OF SERVICE Executed by electronic mail or facsimile of a copy to on May 24, 2013. at 5:15 P.M. J—wwnq4,uq, -� 5� City Clerk CALLED CITY COMMISSION MEETING AGENDA FOR MAY 28, 2013 10:00 A.M. COMNIERCE CENTER CONFERENCE ROOM 300 SOUTH 3RD STREET ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE ADDITIONSMELETIONS I. MOTION A. R & F Called Meeting Notice II. MUNICIPAL ORDERS A. Personnel Changes B. Request to Transfer Funds to Columbia Club for Consulting Services for Columbia Theatre — L. THOMPSON IIL ORDINANCES — ADOPTION A. Hazardous Mitigation Program Award -Contract Change — S. ERVIN B. Acquisition of Permanent Right of Way and a Permanent Public Utility Easement located at 5315 Stanley Cemetery Road for the Olivet Church Road Improvement Project — R. MURPHY C. Purchase of Litter Containers for use in Noble Park Utilizing the Kentucky State Contract — R. MURPHY D. Authorize Payment to AES Environmental, LLC for Household Hazardous Waste Collected During 2013 Clean -Up Day — R. MURPHY E. Authorize Change Order #1 for the Preservation and Renovation of the Market House and River Discovery Center — R. MURPHY F. Contract with Paducah Convention & Visitors' Bureau $25,000 — CITY MANAGER IV. ORDINANCES — INTRODUCTION A. Accept Audit Proposal — J• PERKINS B. 2013/2014 CDBG: Center Point Recovery Center — S. ERVIN V. BUDGET WORKSHOP VI. CITY MANAGER REPORT VII. COMMISSIONER COMMENTS VIII. PUBLIC COMMENTS IX. EXECUTIVE SESSION CITY OF PADUCAH May 28, 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 Signature CITY OF PADUCAH PERSONNEL ACTIONS May 28, 2013 NEW HIRES - PART-TIME (PITIITEMPORARYISEASONAL PARKS SERVICES Jackson, Kylie S. Wyatt, Seth L. NCS/CS FLSA EFFECTIVE DATE NCS POSITION RATE PARKS SERVICES Non -Ex May 23, 2013 Abernathy, Jordan K. Lifeguard $8.00/Hr Reese, McKenzie T. Lifeguard $8.00/Hr Shannon, Mack Lifeguard $8.00/Hr Starnes, Devon C. Lifeguard $8.00/Hr Hines, Margaret B. Lifeguard $8.00/Hr PARKS SERVICES Jackson, Kylie S. Wyatt, Seth L. NCS/CS FLSA EFFECTIVE DATE NCS Non -Ex May 23, 2013 NCS Non -Ex May 23, 2013 NCS Non -Ex May 23, 2013 NCS Non -Ex May 23, 2013 NCS Non -Ex May 23, 2013 PAYROLL ADJUSTMENTSITRANSFERSIPROMOTIONSITEMPORARYASSIGNMENTS PREVIOUS POSITION CURRENT POSITION NCS/CS FLSA EFFECTIVE DATE AND BASE RATE OF PAY After School Program Leader $8.00/Hr After School Program Leader $8.00/Hr AND BASE RATE OF PAY Pool Attendant $8.00/Hr Lifeguard $8.00/Hr NCS Non -Ex May 20, 2013 NCS Non -Ex May 20, 2013 EFFECTIVE DATE June 5, 2013 June14,2013 TERMINATIONS - FULL-TIME (FIT) POSITION REASON POLICE Rigdon, Michael A. Patrolman Resignation PRA Gibson, Susan Executive Assistant I Resignation NCS Non -Ex May 20, 2013 NCS Non -Ex May 20, 2013 EFFECTIVE DATE June 5, 2013 June14,2013 Agenda Action Form Paducah City Commission Meeting Date: May 28, 2013 Short Title: Consulting Services for Columbia Theatre: Concept Study ❑Ordinance ❑ Emergency ® Municipal Order ❑ Resolution ❑ Motion Staff Work By: Lisa Thompson Presentation By: Lisa Thompson Background Information: In December 2012, Lisa Thompson, Director, PRA and Landee Bryant, PRA Board Member briefed the Mayor and Commission on the concept of creating "An Avenue of the Arts" and next steps for saving the Columbia Theatre as well as the shared vision for its rehabilitation. Discussion took place regarding the prospect for the City providing funding for a "next step" that would likely involve some form of consultation regarding building condition and prospective use. Developing a master plan including investigation, programming and planning is essential to a strategy for long-term renovation and reuse of the facility., The "next step" that has been identified is a concept study that includes building condition/capacity followed by a planning process leading to concept drawings and cost estimates. This study will assist the community in addressing the question of feasibility of an eventual restoration/reuse of the building. Goal: ®Strong Economy ❑ Quality Services® Vital Neighborhoods® Restored Downtowns Funds Available: Account Name: Account Number: Staff Recommendation: Finance PRA and its Board of Advisors recommend the City engage Westlake, Reed and Leskosky to complete a Concept Study for the Columbia and allocate 530,000 for the fee and up to $3,000 for reimbursable expenses. Agenda Action Form Attachments: Fee Proposal for a Concept Study for the Columbia Theatre, March 1, 2013 Bio, Paul Siemborski, AIA, Principal, Westlake, Reed and Leskosky Department Head City Clerk City Manager Page 2 MUNICIPAL ORDER NO. A MUNICIPAL ORDER AUTHORIZING AND DIRECTING THE FINANCE DIRECTOR TO TRANSFER $33,000 FROM THE INVESTMENT FUND ECONOMIC DEVELOPMENT RESERVE ACCOUNT TO THE COLUMBIA CLUB FOR CONSULTING SERVICES FOR A CONCEPT STUDY FOR THE COLUMBIA THEATRE BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. The Finance Director is hereby authorized and directed to transfer 533,000, from the Investment Fund Economic Development Reserve account to the Columbia Club for consulting services a Concept Study for the Columbia Theatre. SECTION 2, 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 May 28, 2013 Recorded by Tammara S. Brock, City Clerk, May 28, 2013 \mo\BT-Columbia Theatre Concept Study Paul Siemborski, AIA Principal Paul Siemborski has extensive experience in all the major sectors of our practice including: Cultural and Performing Arts, Educational Facilities, Workplace Environments, Restoration/Adaptive Reuse, and Healthcare. Paul has been involved in all phases of design from predesign through construction administration. He has traveled extensively though Europe and the United States. He has tremendous experience working in the public sector for not-for- profit organizations as well as public private partnerships. He has successfully led a team of design professionals and consultants from project inception to project completion on both large scale multi -phased projects and small scale restorations. He also oversees developing new initiatives for the firm. He is involved in initial planning and concept design, providing the proper framework for planning and implementation. In the initial design stage, Paul works closely with the project leadership and key stakeholders to determine a project: goals, budget, design intent, phasing and implementation, and relevant long term impact on the facility. He is versed in organizing and leading consultants strategic to the project goals including: economic analysts, business operations, marketing and branding, funding, and traditional building trade consultants. Paul's recent work includes master plan consulting for various private high schools, colleges, and performing arts clients. Paul currently serves on the Board of the League of Historic American Theatres and is co-chair of the Fundraising Committee. He has presented several sessions at LHAT national conferences, including "Strategies for Reopening Dark Venues" and "Renovation 101" in 2012 in San Diego and "How to Finance a $7 Million Theatre Renovation Project with $125,000" in 2011 in New York. Paul has also been a presenter at Heritage Ohio and was a participant in the 2011 Arizona Town Hall, "Capitalizing on Arizona's Arts and Culture." Education The University of Texas at Arlington, Masters in Architecture The Ohio State University, Bachelor of Science in Architecture Westlake Reed Leskosky Proposal to: Paducah Renaissance Alliance For Professional Design Services Related to: Fee Proposal for a Concept Study for the Columbia Theatre March 1, 2013 Project Number 20124.11 ©Westlake Reed Leskosky Westlake Reed Leskosky Principals Paul Westlake Jr. FAA Ronald A. Reed FAA Vince Leskosky AIA Philip LiBassi AIA Jason AdolflAIA Roger Chang PE Thomas Gallagher AIA Monica Green AIA V. Mitchell Lyles PE Rebecca Olson AW Paul Siemborski AIA Jonathan Kurtz AIA March 1. 2013 Via email. Ithompson@paducahalliance.com Lisa M. Thompson Paducah Renaissance Alliance 605 Broadway Paducah, KY 42001 RE: Fee Proposal for a Concept Study for the Columbia Theatre (Commission #20124.11) Dear Lisa: Thank you for taking the time to meet with me last week to show me the Columbia Theatre. Please extend my appreciation to all who were involved in the day's events. I was truly taken with the Columbia — not only for its sheer interior volume, but also because of the "Flamboyant Renovation" over the original Adamesque design. You have organized a great group of people and from what I have experienced during my time there, your team has the makings to bring the renovation / restoration of the Columbia Theatre to fruition. During our discussion as well as in a previous email, I outlined what I felt are the four (4) primary tasks we can provide for a Concept Study for the Columbia. Our study would include these (4) tasks described as follows: 1. Investigation Based on existing information and existing conditions, we will prepare existing conditions drawings of the theatre. This will include floor plans, roof plan, building cross section and other drawings relevant for this Concept Study. We will start with the AutoCAD drawing that Randy Davis prepared. We will engage Randy in the process based on his knowledge of the current conditions and history of the theatre. We will also work with you or a designated individual(s) to identify environmental conditions including hazardous materials, condition and capacity of the utilities servicing the theatre, condition of the building envelope, and any site constraints (easements, setbacks). Quantifying and estimating hazardous materials is by others. We will involve our in-house engineering and theatre specialists in this phase of the work to further identify the condition, capacity and constraints relative to existing conditions as they inform future work (e.g. condition and capacity of the existing wood grid iron). Our work product will include relevant existing conditions drawings as well as written narratives describing the condition and capacity of all disciplines including: architecture; mechanical, electrical and plumbing systems; structural; and theatre / AV / acoustic related systems. 2. Programming We will conduct an onsite (2) day workshop involving designated potential users and stake holders. The purpose of this workshop is to determine the intended uses for the theatre. Based on the findings of this workshop we will create a qualitative and quantitative written program knowing that the project size is likely limited to the existing theatre. The written program will likely indicate multiple uses for a single space. We New York 1140 Broadway Suite 501 New York, New York 10001 F 212.659.0050 T 212.564.8705 vnzw.WRLdesign.com Phoenix One East Camelback Road Suite 690 Phoenix, Arizona 85012 F 602.212.1020 T 602.212.0451 Washington 1634 Eye Street NW Suite 900 Washington, DC 20006 F 202.296.6116 T 202.296.4344 Cleveland 1422 Euclid Avenue Suite 300 Cleveland, Ohio 44115 F 216.522.1357 T 216.522.1350 Los Angeles 2140 Hyperion Avenue Los Angeles, CA 90027 F 323.664.3566 T 213.804.4531 Westlake Reed Leskosky will also create meeting minutes reflecting the information collected from each potential user. The written program will serve as the basis of our planning effort. The qualitative part of this written program will indicate unique needs and attributes for each space. 3. Planning Based on the approved program, WRL will create planning concepts. Reflecting the various program requirements, our process is inclusive. Based on the programming work sessions as well as our expertise we will create some initial planning concepts. We will forward these to you for your review, distribution and input. Once you have had a chance to review these concepts, we propose meeting with you and the designated stakeholders on site where we will present the work. We will work with you to make adjustments to the work with the goal being to settle on a concept. Our work will take into account the requirements for all of the engineered systems as well as theatrical systems. Our work product will include relevant diagrammatic floor plans, sections and elevations, and be of presentation quality. 4. Estimating Based on the approved Planning and Concept Design we will retain the services of a professional cost estimator versed in historic theatres. The services of the cost estimating consultant are included in our fee. The estimate will be inclusive of all disciplines including architecture, engineering, and theatre technical/ AV / acoustical equipment. The work will be escalated to an established likely midpoint of construction. The estimate will include contingencies and select soft costs. Our fee for the services outlined above would be a lump sum of $30,000. Reimbursable expenses are in addition to this fee and are estimated at 10% of the fee. We anticipate the concept study taking approximately (3) months. All work will be reviewed by you throughout the process. Our final work product will include both hard copy and electronic format. The Concept Study report will include: executive summary, system narratives by discipline, existing condition drawings, proposed concept design, estimate, and our recommendations. If this proposal is acceptable we will prepare a standard abbreviated AIA Form of Agreement between the Owner and Architect for your review and authorization. This letter will be included as an exhibit. If you have any questions regarding this proposal, please feel free to contact Elicia Gibbon at ekoib(§ wrldesign.com or I can be reached at psiemCa)wrldesign com. On behalf of Westlake Reed Leskosky, thank you for your interest in our firm. We look forward to having the opportunity to work with you and your team on the renovation of the Columbia Theatre. Sincerely, Paul Siemborski, AIA Principal cc: Elicia Gibbon, AIA Page 2 of 2 Agenda Action Form Paducah City Commission Meeting Date: May 14, 2013 Short Title: Purchase of Litter Containers for use in Noble Park utilizing the Kentucky State Contract ®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Angela Weeks, EPW Proi Mgr Presentation By: Rick Murphy, P.E., City Engineer -Public Works Director Background Information: The EPW-Solid Waste Division is in need of 80 new 60 -gallon litter containers for public use in Noble Park. The authorized Kentucky State Contract vendor for this type of litter container is Toter, Inc., located in Statesville, NC. Toter has quoted a unit price of $297.00 for each container, with a total price of $25,663.82, which includes freight. The Kentucky Master Agreement number is MA 758-1100000312-3 Goal: ❑Strong Economy ® Quality Services❑ Vital Neighborhoods[] Restored Downtowns Funds Available: Account Name: Solid Waste F7(5tj°11� Account Number: 050-2209-531.42-19 1 Finance Staff Recommendation: To adopt an Ordinance authorizing the purchase of 80 new 60 -gallon litter containers for the EPW-Solid Waste Division in the amount of $25,662.82 from Toter, Inc., utilizing the KY State Contract Attachments: Toter Quote and KY State Contract Depart e H d City Clerk City Manager Agenda Action Form Paducah City Commission Meeting Date: May 14, 2013 Short Title: Hazardous Mitigation Program Award -Contract Change ® Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Cheryl Meadows Presentation By: Steve Ervin Background Information: On July 26, 2011 through Municipal Order #1621, the Commission approved the submission of a Hazardous Mitigation Application for the Fire Station 1 Emergency Power Project in the amount of $100,160; $75,120 in federal funds, $12,019 in state monies, and $13,020 in local match. Local match of $13,020 will be provided through the Commission Contingency Fund. On August 14, 2012 through Municipal Order #1681 a budget transfer in the amount of $13,020 from the Commission Contingency Fund to the Fire Dept. Budget was approved. On October 16, 2012, Ordinance#2012-10-7983 the commission accepted an award in the amount of $75,120, to purchase and install one (1)125k --w fixed diesel powered generator with automatic transfer switch at Fire Station #l. On April 25, 2013, Office of Kentucky Emergency Management notified the Planning Department of changes to the first contract presented. The new changes on the contract do not affect the city's award amount nor performance and completion, however the contract does require the Mayor's signature. It is for this reason, we are requesting the Commission's approval by way of Ordinance. If the Commission desires to accept the change in the contract from FEMA it must authorize and direct the Mayor and/or Mayor's designee to execute all required and necessary grant award documents. Goal: ❑ Strong Economy ® Quality Services ❑ Vital Neighborhoods ❑ Restored Downtowns Funds Available: Account Name: HMGP — Generator Account Number: 040-1802-522.23-07 Finance Staff Recc Attachme: Project Number: FI0026 File Number: 6.239 Agenda Action Form Paducah City Commission Meeting Date: May 14, 2013 Short Title: Autborize Payment to AES Environmental, LLC for Household Hazardous Waste Collected during 2013 Clean -Up Day ®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Chris Yarber, EPW Operations Manager Angela Weeks, EPW Project Manager Presentation By: Rick Murphy, P.E., City Engineer -Public Works Director Background Information: On April 18, 2013, the City of Paducah co-sponsored along with the county a free Clean -Up Day to assist all property owners with disposal of various waste. Household hazardous waste was one item collected on this day. In accordance with Kentucky requirements, a Kentucky certified hazardous waste service is required to dispose of all hazardous waste. AES Environmental LLC, with an office in Calvert City, KY, is the only certified hazardous collector who is a vendor with the Commonwealth of Kentucky within this area. Therefore, the service of AES Environmental LLC was requested to collect and dispose of household hazardous waste during the free Clean -Up Day. This year, the collection of household hazardous waste totaled $21,156.60. Last year's collection totaled $30,101.50. The partial funding of the free Clean -Up Day is provided by a grant from the Kentucky Division of Waste Management in the amount of $27,000. Goal: ❑Strong Economy ®Quality Services ®Vital Neighborhoods []Restored Downtowns Funds Available: Account Name: Haz Waste Project Number: MR00564 Finance Account Number: 050-2209-531-2004 Staff Recommendation: To adopt an Ordinance authorizing the payment of $21,156.60 to AES Environmental LLC, for collection and disposal of household hazardous waste collected during the free Clean -Up Day on April 18, 2013. Attachments: Invoice �62 t H d City Clerk City Manager Agenda Action Form Paducah City Commission Meeting Date: May 14, 2013 Short Title: Acquisition of Permanent Right of Way and a Permanent Public Utility Easement located at 5315 Stanley Cemetery Road for the Olivet Church Road Improvement Project ®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Angela Weeks, EPW Proj Mgr Presentation By: Rick Murphy, P.E., City Engineer-Pablic Works Director Background Information: During the years of 2007 and 2008, my office conducted negotiations in good faith with Gary Spear, at 5315 Stanley Cemetery Road, in order to acquire right of way and a permanent public utility easement along Olivet Church Road for the Olivet Church Road Improvement Project. However, both parties were unable to reach an agreement within reason regarding the total acquisition amount. In August of 2009, Judge Van Newberry requested to have an opportunity to meet with Mr. Spear and negotiated an excessive acquisition value for the property that was acceptable to Gary Spear. Based on the agreed acquisition value, Gary Spear agreed to convey the necessary Right of Way along Olivet Church Road consisting of 11,853.71 Square Feet (0.2721 Acres) and a Permanent Public Utility Easement consisting of 9,045.11 Square Feet (0.2076 Acres) to the City of Paducah for the total monetary consideration of $57,500.00. Subsequently, Gary Spear married Joy Morgan, of which she now -joins her husband on this deed of conveyance. Goal: ®Strong Economy ®Quality Services ®Vital Neighborhoods ❑Restored Downtowns Funds Available: Account Name: Olivet Ch Rd Imp Proj NJi,( 1i M c3 Account Number: 040-3315-532-2307 Finance Project Number: ST0027 Staff Recommendation: To adopt an Ordinance authorizing the Mayor to execute a Deed of Conveyance and all related documents on behalf of the City of Paducah with Gary and Joy Spear located at 5315 Stanley Cemetery Road for acquisition of Right -of -Way and a Permanent Public Utility Easement along Olivet Church Road in consideration of $57,500.00 for the Olivet Church Road Improvement Project. Agenda Action Form Attachments: Deed of Conveyance Departent e City Clerk City Manager Page 2 Agenda Action Form Paducah City Commission Meeting Date: May 14, 2013 Short Title: To Authorize Change Order 91 for the Preservation and Renovation of the Market House and River Discovery Center ❑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: On December 18, 2012, Ordinance 92012-12-8003 was adopted authorizing the Mayor to execute a contract with Ray Black & Son, Inc., in the amount of $215,927.00 for the Preservation and Renovation of the Market House and River Discovery Center. Subsequently, work has progressed with two minor items requiring a change order to the contract as follows: 1. Replacement of Gable ends on the Market House $2,123.00 2. Additional Glass replacement on the Market House $1,625.00 TOTAL ADDITIONS $3,748.00 Therefore, with the new additional amount of $3,748.00, the new contract amount will be $219,675.00. Additionally, an additional 30 days of work is requested; which will make the new date of completion of all Work June 1, 2013. Goal: [—]Strong Economy ❑Quality Services []Vital Neighborhoods ®Restored Downtowns Funds Available: Account Name: Rental Property Repairs- I 1 S I I o I l3 Upkeep Finance Account Number: 063-0211-542-3305 Staff Recommendation: To adopt an Ordinance authorizing Change Order #1 in the amount of $3,748.00 for the Preservation and Renovation of the Market House and River Discovery Center Contract with Ray Black & Son, Inc..; which will increase the contract amount to $219,675.00, and increasing the time for completion by 30 days; which will extend the new date of completion of all Work to June 1, 2013. Attachments: Original Ordinance, Change Order #1, Notice to Proceed '��Departnt He City Clerk City Manager Agenda Action Form Paducah City Commission Meeting Date: May 14, 2013 Short Title: Contract with Paducah Convention & Visitors Bureau - $25,000 (conduit for AQS) Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Presentation By: Background Information: Claudia Meeks, Jonathan Perkins Jeff Pederson, City Manager As part of the Investment Fund Decision Items for FY2013 (current year), the Commission approved appropriation to fund the American Quilters Society for the 2013 Quilt Show in the amount of $25,000. These funds are being paid through the Convention & Visitors Bureau to provide match for a State Tourism Grant. When the City provides funds to any organization, we prepare a simple Contract for Services agreement that describes the public services the organization will provide as a result of receiving the City funds. In order to expedite and simplify the process, the Paducah -McCracken County Convention Visitor Bureau (CVB) has agreed to act as a conduit through which local agency funds may flow. Therefore, the City will need to execute a contract with the CVB to handle the $25,000 payment. History - In July 2007, the City verbally coimnitted to a cash incentive of $25,000 for the spring 2008 American Quilter Society (AQS) Show. Other local agencies also committed finids to the AQS show. The funds were to be used to market and promote events and venues related to the 2008 show. On March 18, 2008 the City Commission authorized a municipal order conunitting $25,000 in Commission contingency funds to the 2008 AQS show. This process was repeated in 2009, 2010 2011, and again in 2012. This payment request/contract is for 2013. Goal: ❑Strong Economy ® Quality Services❑ Vital Neighborhoods[] Restored Downtowns Funds Available: This expenditure was appropriated in the FY2013 Budget. Account Name: Services -Other Account Number: 004-0401-536-8072 Staff Recommendation: NFi'n=ance Authorize the Mayor to execute all necessary documents to execute an agreement (and a one-time written Contract for Services) with the Paducah Convention & Visitors Bureau in the amount of 525,000 on behalf of the AQS to be used for marketing and promoting events and venues related to the 2013 AQS Show. Agenda Action Form Attachments: Ordinance Contract Department Head City Clerk t y anager Page 2 Agenda Action Form Paducah City Commission Meeting Date: May 21, 2013 Short Title: Financial Statement Auditor for City of Paducah for fiscal years 2013 through 2016. ®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Audra Herndon Presentation By: Jonathan Perkins Background Information: Kentucky Revised Statute 91A-040 requires an annual audit of each fund of the City by an auditor of public accounts or a certified public accountant. The City is also subject to the Federal Single Audit Act for audit reporting requirements. The independent certified public accounting firm of Williams. Williams & Lentz, LLP has conducted this audit for the past 4 years. Staff prepared request for proposals (RPP) for the CAFR (comprehensive annual financial report). The RFP required that auditing firm's proposals cover the fiscal years 2013 through 2016 with a `not to exceed clause' for cost. Proposals were accepted through April 26, 2013. Kemper CPA Group, LLP submitted a proposal for all four years that, in total, will not exceed $204,000. Williams, Williams & Lentz, LLP submitted a proposal for all four years that, in total, will not exceed $221,000. Goal: []Strong Economy ® Quality Services[] Vital Neighborhoods[] Restored Downtowns Funds Available: Account Name: Various Audit Accounts Account Number: [7i;Z] Staff Recommendation: Authorize the Mayor to sign all necessary documents to accept the proposal of Kemper CPA Group, LLP for the preparation of the City's financial audits (and related CAFR — comprehensive annual financial reports, forms, schedules, etc.) for the fiscal years ending June 30, 2013, 2014, 2015, and 2016. Total audit fee not to exceed $204,000. Attachments: • Williams, Williams & Lentz, LLP proposal • Kemper CPA Group, LLP proposal a-tment Head City Clerk City Manager ORDINANCE NO. 2013 -6 - AN ORDINANCE ACCEPTING THE PROPOSAL OF KEMPER CPA GROUP, LLP FOR THE PREPARATION OF THE CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORTS FOR FISCAL YEARS ENDING JUNE 30, 2013, 2014, 2015 AND 2016, AND AUTHORIZING THE MAYOR TO EXECUTE ALL DOCUMENTS RELATING TO SAME BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY: SECTION I. That the City of Paducah accepts the proposal of Kemper CPA Group, LLP for the preparation of the City's Comprehensive Annual Financial Reports for Fiscal Years ending June 30, 2013, 2014, 2015 and 2016 for a total sum not to exceed $204,000.00, and authorizing the Mayor to execute all documents relating to same. SECTION 2. This expenditure shall be charged to various audit accounts. SECTION 3. This ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter 424. Mayor ATTEST: Tammara S. Sanderson, City Clerk Introduced by the Board of Commissioners, May 28, 2013 Adopted by the Board of Commissioners, June 11, 2013 Recorded by Tammara S. Sanderson, City Clerk, June 11, 2013 Published by The Paducah Sun, \ord\finance\audit FY2013-FY2016 CITY OF PADUCAH PROPOSAL FOR AUDIT AND PROFESSIONAL SERVICES FOR FISCAL YEARS ENDED JUNE 30, 2013 — 2016 Prepared By: Kemper CPA Group LLP EIN:37-0818432 333 Broadway, Suite 1001 Paducah, Kentucky 42001 Phone: (270) 443-4400 Fax: (270) 443-0963 E-mail: dhampton@kcpag.com Contact Person: David S. Hampton, CPA Partner April 19, 2013 TABLE OF CONTENTS Page TransmittalLetter................................................................................................................. 1 FirmBackground................................................................................................................... 2 Staffing, Recent Continuing Education and Related Matters ................................................ 3-7 Experience— CAFRs............................................................................................................. 8 OverallWork Plan and Timing............................................................................................. 9 Specific Work Plan and Audit Approach.............................................................................. 10-13 Fee Proposal and Related Comments.................................................................................... 14-16 Appendix A - Copy of Most Recent Peer Review Letter ...................................................... 17 KEMPER ,44 " � CPA GROUPLLP Certified Public Accountants and Consultants Ms, Audra Herndon, CPA Controller City of Paducah Paducah, Kentucky On behalf of Kemper CPA Group LLP, I am pleased to present our proposal for audit and professional services for the City of Paducah. We have grown from a small local office established in 1958 to a top 100 public accounting firm in the nation. With 25 offices in Kentucky, Illinois, Indiana and California, we are large enough to provide the level of service expected of national firms. Unlike most firms our size, we "grew up" in communities like Paducah, Kentucky. However, our size has allowed our professionals to specialize in various areas including governmental accounting and auditing. This specialization is normally available only from large, impersonal firms usually located hours away. In choosing Kemper CPA Group, you will get the best of both: specialization in a wide range of services and personal attention to your needs. Our professionals combine competence, judgment, maturity and creativity — all prerequisites for quality professional services. We believe this proposal meets the requirements of your request for proposal, but if you have any questions, please let us know. As you review the qualifications of all the firms, you will find Kemper CPA Group well qualified to provide the professional service required by the City of Paducah. Very truly yours, — 02,A . "J-�-_/ CPA David S. Hampton, CPA, Partner Kemper CPA Group, LLP 333 Broadway r Suite 101 c Paducah, KY 42001 Phum: (270)443-4400 Gats: V0)443-0963 kcmpercpa.nnn FIRM BACKGROUND Morris Kemper from Mt. Carmel, Illinois founded Kemper CPA Group in 1958. Through a series of mergers and expansions, the firm has expanded throughout Southern Illinois, Indiana, Kentucky and California to meet the needs of our clients. Larger metropolitan offices include Indianapolis and Evansville, Indiana and Stockton, California. Presently, Kemper CPA Group LLP has 25 offices in Kentucky, Illinois, Indiana and California. We have 50 partners and over 250 professional staff, By most measures of size, we rank in the top 100 accounting firms in the nation. Overall management of the firm is delegated to an executive committee of five partners with the managing partner reporting to this group. Each individual office reports to a regional director, which reports to the managing partner. All regions and offices have access to the resources of our quality control department, which provides technical expertise in all areas of accounting, auditing, financial statement presentation, disclosure, professional standards, and GASB/FASB implementation issues and management advisory services. However, each office operates on a decentralized basis with each having full authority and responsibility for all services to clients. Each office can access the full resources ofthe firm to meet the needs of any client in any industry. This means we can utilize other partners, specialists, consultants, technology professionals and other key staff from numerous offices to provide the level of service expected. We assign a partner to each engagement to maintain our commitment to professional excellence. 2 STAFFING, RECENT CONTINUING EDUCATION AND RELATED MATTERS We presently plan to staff this engagement with the following professionals primarily from our Paducah office with independent partner review and consulting from our Quality Control Department in Robinson, Illinois. David Hampton, CPA, Partner Barry Hatcher, CPA, CFE, Partner Sandy Givens, CPA, Manager Jill Chambers, CPA, Manager Tara Blazina, CPA, Senior Staff Accountant Jay Hite, CPA, Senior Staff Accountant Ron Halter, CPA, Partner (Quality Control Department, independent partner review) Degreed staff accountants Brief biographical sketches of these individuals follow: David Hampton, CPA, is a Murray State University graduate and partner with fifteen (15) years public accounting experience in numerous governmental and non-profit audits and has previously been the manager in charge of the City of Paducah engagement. In addition, David serves on the firm's internal inspection committee to ensure firm engagements continue to meet firm and professional standard requirements. David has been responsible for a substantial part of managing audit field work on several of our local governmental audit clients. David has recent (within the last five years) experience with numerous audits of both governmental and non-profit organizations, including the following: City of Paducah (CAFR/Yellow Book/Single Audit) City of Calvert City (Yellow Book/Single Audit) City of Calvert City Water & Sewer System (Yellow Book) McCracken County Board of Education (Yellow Book/Single Audit) Ballard County Board of Education (Yellow Book/Single Audit) West McCracken County Water District (Yellow Book) Relevant Recent Continuing Education: Annual Accounting and Audit Update (2009-2012) 16 hours annually Annual Governmental and Non -Profit Update (2009-2012) 16 hours annually OMB Circulars and related Single Audit issues, (2009-2012) 8-16 hours annually Barry Hatcher, CPA, CFE, a Campbellsville University graduate, is the partner responsible for audit quality control in Kemper's Paducah office. Barry has thirty (30) year's public accounting experience and was a partner in the Paducah firm, Allen & Company PSC, for thirteen (13) year's before the August 2000 merger of that firm with Kemper CPA Group. Barry has recent (within the last five years) i1 experience in numerous single audits of both governmental and non-profit organizations, including public utilities, colleges, school boards, cities, transit authorities, and HUD agencies, including the following: McCracken County Board of Education (Yellow Book/Single Audit) Purchase District Health Department (Yellow Book/Single Audit) McCracken County Health Taxing District (Yellow Book) Paducah -McCracken County Joint Sewer Agency (Yellow Book/Single Audit) City of Metropolis, IL (Yellow Book/Single Audit) Paducah McCracken County Riverport Authority (Yellow Book) In addition, Barry received his Certified Fraud Examiner (CFE) certification from the Association of Certified Fraud Examiners in 2005 and has served as either a fact or expert witness in litigation involving alleged fraudulent activities. CFE certification requires an annual minimum of 20 hours of relative continuing education. Relevant Recent Continuing Education: Annual Accounting and Audit Update (2009-2012) 16 hours annually Annual Governmental and Non -Profit Update (2009-2012) 16 hours annually OMB Circulars and related Single Audit issues, (2012) 8 hours Forensic Accounting and Auditing, 20 hours annually Sandy Givens, CPA, is a Murray State University graduate and manager with ten (10) years public accounting experience in numerous governmental and non-profit audits. Sandy came to us with over seven (7) years experience with the Kentucky Department of Revenue. Sandy was a lead auditor with the state, responsible for auditing both sales tax and income tax for entities operating in the Commonwealth of Kentucky. Sandy has recent (within the last five years) experience with numerous audits of both governmental and non-profit organizations, including the following: Purchase District Health Department (Yellow Book/Single Audit) City of Metropolis, IL (Yellow Book/Single Audit) City of Calvert City (Yellow Book/Single Audit) City of Calvert City Water & Sewer System (Yellow Book) Paducah McCracken County Riverport Authority (Yellow Book) Relevant Recent Continuing Education: Annual Accounting and Audit Update (2009-2012) 16 hours annually Annual Governmental and Non -Profit Update (2009-2012) 16 hours annually Managing Audit Engagements (2012) 24 [tours Jill Chambers, CPA, a graduate of Murray State University and manager with seventeen (17) years of public accounting experience with numerous audits of both governmental and non-profit organizations. 4 Jill has served in a partner capacity for five (5) years in a local Paducah firm, Howard and Chambers, CPAs before joining Kemper CPA Group in 2013. Jill has maintained her required continuing education requirements while recently employed by a national financial institution. Tara Blazina, CPA, is a senior staff accountant who graduated from Murray State University in 2010 and has three (3) years public accounting experience in governmental and non-profit audits. Tara has recent experience with governmental organizations, including the following: City of Calvert City (Yellow Book/Single Audit) City of Calvert City Water & Sewer System (Yellow Book) City of Metropolis, IL (Yellow Book/Single Audit) Paducah -McCracken County Joint Sewer Agency (Yellow Book/Single Audit) Relevant Recent Continuing Education: Annual Accounting and Audit Update (2010-2012) 16 hours annually Annual Governmental and Non -Profit Update (2010-2012) 16 hours annually OMB Circulars and related Single Audit issues, (2010-2012) 8-16 hours annually Jay Hite, CPA, is a senior staff accountant who graduated from Murray State University in 2010 and has three (3) years public accounting experience in governmental and non-profit audits. Jay has recent experience with numerous audits of both governmental and non-profit organizations, including the following: Purchase District Health Department (Yellow Book/Single Audit) McCracken County Board of Education (Yellow Book/Single Audit) Ballard County Board of Education (Yellow Book/Single Audit) West McCracken County Water District (Yellow Book) Relevant Recent Continuing Education: Annual Accounting and Audit Update (2010-2012) 16 hours annually Annual Governmental and Non -Profit Update (2010-2012) 16 hours annually OMB Circulars and related Single Audit issues, (2010-2012) 8-16 hours annually Ron Halter, CPA, Kemper CPA Group's firm director of quality control is a partner with twenty-seven (27) years experience in quality control assurance including independent quality control review of the firm's hospital, school district, college, university, governmental, non-profit and single audits. Ron is also available to assist with complex reporting issues and new governmental standards as they become applicable to the City of Paducah. Workpapers and reports for all single audits and initial year GAO audits are reviewed by Ron's department before issuance. In addition, we have other qualified professional staff in our Paducah office, as well as, other Kemper offices available to assist with the proposed audit engagement. Other Partners and staff with related experience: While we expect the above professionals to substantially complete the audit, other firm partners and staff may be consulted on technical matters or requested to assist in completing the audit, if necessary. Within approximately one hour drive from Paducah, there are three other Kemper offices with over twenty professionals available to assist in the timely completion of your audit if such a need were to arise. Staffing Summary We have qualified staff readily available to give you the quality service you desire in the timely manner you expect. The partners, manager and staff assigned to your engagement have completed continuing education meeting Yellow Book and Single Audit requirements. Partners and professional staff are required to keep current regarding changes in professional standards including GASB issues. All professional audit staff are required to attend annual firm sponsored continuing education classes for accounting and auditing updates. In addition, all professionals working on governmental audits are required to attend the firm sponsored annual continuing education for governmental accounting and auditing update. Kemper CPA Group contracts with the accounting profession's leading educational and quality control sources, to present these seminars to Kemper professionals. Kemper's quality control director publishes a quarterly newsletter highlighting current developments in accounting and auditing including GASB issues, trends and changes affecting local school districts and public institutions of higher education. This newsletter focuses on changes in professional standards, implementation issues for new pronouncements, interpretations, and ethics. All accounting and audit professionals are required to utilize these tools in performance of governmental, non-profit and other audits. External Peer Review Please see Appendix A for the Firm's most recent external peer review letter. Please note the Firm successfully completed another external peer review during 2010. This review also confirmed the compliance of our firm with GAO continuing education requirements. All continuing education attendance records are available for review, upon request. %I Other resources available within Kemper CPA Group include: Technology Consufting — Kemper Technology Consultants are Certified Netware Engineers, Microsoft Certified Systems Engineers, A+ and Network + Certified Technicians, Thin Client Technicians, I -Net + Consultants, and Certified E -Mail Technicians. Hunan Resource Cotnsttfting — Kemper CPA Group provides human resource consulting including accounting department personnel needs assessment, screening and interviewing prospective employees. In addition, we have also provided outsourced accounting assistance to various clients. Employee Benefit Administration and Consulting — Kemper CPA Group administers over one hundred pension and profit sharing plans. We also provide audit services for employee benefit plans as well as benefit plan consulting for cafeteria plans, defined benefit plans, 401(K) plans, 403(B) and Section 457 plans. Tax Matters - Our professionals have the expertise to assist in various tax matters if such a need were to arise. This would include fringe benefit tax issues, payroll taxes, employee benefit plan tax issues, etc. Frated Detection, Prevention, and Anti -Fraud Poliev Development — Kemper CPA Group professionals include certified fraud examiners who are specially trained in these areas. Other — All non -audit services are subject to an independence review by out, quality cmrtrol department before performance of such services. EXPERIENCE — CAFR The Paducah office of Kemper CPA Group previously served as independent auditors for the City of Paducah for several years and was responsible for generating the first successful CAFR report resulting in the issuance of the City's first GFAO Certificate of Achievement. During that time, we were instrumental in providing all historical information to comply with the reporting requirements for the CAFR. We subsequently prepared several successful CAFR reports for the City. The Southern Illinois and Kentucky offices of Kemper CPA Group have performed audit and assurance services for over one hundred (100) clients within the last two years. Therefore, we have the experience available within Kemper CPA Group to plan and perform your audit and to ensure proper repotting in your complex areas. Please be advised there are numerous other governmental and non-profit audit clients in Kemper's other regional offices and locations. The size and complexity of these engagements vary. 9 OVERALL WORK PLAN AND TIMING Our philosophy has always been to plan the work and then work the plan. We would initially meet with management of the entity shortly after acceptance of our proposal. At that meeting we would determine an initial list of schedules and information for your staff to provide for completion of the audit. At that time we would also establish cut-off procedures so we could begin the confirmation process and perform other time sensitive audit procedures relative to June 30" balances. We would plan to take a risk assessment approach to auditing the financial statements utilizing a combination of compliance and substantive tests of controls. To maximize efficiency we generally try to coordinate the auditing of selected asset and liability accounts with related revenue and expense accounts (i.e, payroll liabilities and wages/payroll tax expense). Our tests of controls will include a combination of inquiries and tests of supporting documents. Our procedures will also include tests of compliance with laws, regulations and guidelines as required in governmental audits in addition to independent confirmation of various accounts, balances and transactions. One relatively new area which will receive audit effort is SAS 117-125, the new clarity audit standards. Regarding these standards, we have a professional responsibility to gather information and gain an understanding of your entity and its environment, including your internal controls. Under these standards, procedures will include not only detail tests of transactions and controls but also analytical procedures, inspection, observation and inquiries of both management and non -management employees. We would like to begin our tests of controls and system documentation no later than July 81" and regular audit field wok as soon as the records are ready, and no later than August 24'h. Barring unforeseen circumstances beyond our control, we presently expect to issue a draft of our report approximately 60 days after commencement of regular field work, with the final report issued no later than November 15th. In addition, we normally have brief conferences with management during the course of our audit engagement to keep them informed of the status. At the conclusion of our audit we will have an exit conference to discuss in detail the results of the audit. We will also issue a formal management letter of recommendations as part of our audit and will include discussion of these matters in our exit conference. 10 SPECIFIC WORK PLAN AND AUDIT APPROACH The specifics of our work plan and audit approach are summarized as follows: (t) Setting Audit Objectives Our firm's standard audit program software and related quality control features include computerized audit programs for each audit area. These programs specifically identify the audit objectives for each area (i.e. completeness, validity, existence, whether balances and transactions are properly recorded, compliance with laws and regulations, compliance with grant terms, etc). The applicable audit objective is therefore referenced in each audit program step to document all steps are completed and applicable objectives tested. (2) Auditing Planning and Analytical Procedures Our firm's standard audit program software and firm quality control standards require completion of audit planning procedures. We are required to meet both with the client and as an audit team prior to commencement of the audit to document proper planning. Those meetings include discussion of potential fraud risks and potential for management override of controls. Based on the results of those meetings, audit programs are designed to efficiently and adequately document planning and completion of the audit. Analytical procedures include comparisons to prior year amounts, comparisons of current year budget to actual, comparison to similar entities, ratio analysis and management inquiries. These steps are performed at the beginning of the audit and then at the end to document the effect of changes due to audit adjustments and whether our initial audit programs in the planning phase have changed during the audit or in the review phase. In addition, our audit software allows its access, at your office, to our audit workpapers for prior periods making such analysis both efficient and effective. (3) Establishing Materiality Levels Our firm's standard audit software is utilized to establish materiality levels. This is generally based on percentage of total assets or total revenues. Materiality levels are often established at the reporting area level, if applicable, under generally accepted governmental auditing standards. Planning materiality, tolerable misstatement and individually significant dollar amounts are established and documented in the planning phase of the audit. These items are then subsequently computed again in the review phase of the audit with any significant differences resolved to out- satisfaction. ursatisfaction. (4) Documenting Internal Control and Assessing Control Risk In accordance with risk based auditing standards, we will obtain a sufficient understanding of internal control to plan the audit, assess control risk and perform tests of controls. We will utilitize standard checklists, inquiries of management, observation and walk-throughs to document this process. (5) Developing the Audit Plan and Audit Program As noted above, we utilize our firm's standard audit software which has specific audit plans and programs for Single Audit and other governmental audits. These programs include access to specific compliance requirements of federal programs. Our procedures provide adequate and efficient audit coverage when these audit plans and programs are adhered to as evidence by our track record with Single Audit and Yellow Book audits. However, we do have the flexibility in our software and audit programs to develop other audit procedures and program steps provided we properly document the reasons for the non-standard audit program, the audit objectives, and the results. (6) Sampling Technique If sampling is utilized in our substantive tests of account balances we will use probability proportional to size sampling. In this method the sample size is based upon the materiality of the account balance tested as well as our assessment of inherent risk, control risk and other procedures risk. This methodology allows us to statistically achieve maximum coverage of the value of the account tested. Tests of controls will utilize the statistical theory of attribute sampling. In this method the sample size for tests of controls is based on the assessed level of control risk and the planned number of deviations. Firm quality control standards require our sampling techniques be properly documented and where applicable, resulting client errors be projected to the population. (7) Testing Compliance with Laws and Regulations The extent of our testing in this area is governed by OMB A-133 and governmental auditing standards. We initially identify applicable significant and/or specific laws and regulations (i.e. by reference to CFDA numbers, client reporting areas, and client grant lists which we confirm with the State or other revenue sources). Then, tests are designed to enable us to satisfy ourselves as to compliance with applicable laws and regulations. These tests include, but are not limited to: 12 FEE PROPOSAL AND REtLATED COMMENTS Fees for conducting the audit of the City of Paducah's financial statements and preparation of the CAFR will be as follows: Ended Fee Amount June 30, 2013 $49,500 June 30, 2014 $50,490 June 30, 2015 $51,490 June 30, 2016 $52,520 Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. This fee proposal is based on inquiries of Audra Herndon, approximately 20+ years prior experience as your independent auditors, and assumes the following: I) Your records will be well organized, properly maintained, and fully accessible to us within the time frame proposed and you will furnish us with complete and accurate reconciliations of all significant balance sheet accounts on or before August 20. 2) You will type confirmation requests. 3) You will provide us with other reconciliations and schedules we may request in completing the audit within 5 business days of our initial request for such reconciliations. 4) You will provide us with your complete and accurate schedule of federal awards and expenditures (SEFA) on or before August 20. Our fee proposal includes a provision for the price of printing the CAFRs, the electronic media report, copy charges and out of pocket expenses. Our fee proposal also is prepared based on current professional standards in effect as of the date of this proposal with the understanding that future professional standards "significantly" affecting the required scope of our services are beyond our control and if such items did arise during subsequent fiscal periods we would work with you to reach a mutually agreeable solution for those subsequent periods. The fee proposal does not include additional services outside the scope of the audit engagement (i.e. bookkeeping, general ledger accounts reconciliation(s), material prior period adjustments of net position, etc.). You may request that we perform additional services not addressed in this proposal. If this occurs, we will communicate with you regarding the scope of the additional services and the estimated fees. There is always a relationship between quality of service, expertise of those providing the service, needs of the auditee, and fees. We believe our proposal represents an example of this correlation and desire. We are sensitive to your desire for timely, high-quality services provided at a reasonable cost. We strive to keep our fees at a reasonable level consistent with the level of professional expertise and experience required to perform your audit and assist in your CAFR preparation. Our proposed fees are based on the 15 estimated amount of time expended by each professional at billing rates established on the basis of experience and our accepted level of discounted fees for similar engagements. We believe quality of service, rather than fees alone should be the determining factor when making your selection, however, if fees become an issue in your selection of an accounting firm, we Would be pleased to further discuss them with you. 16 APPENDIX A 17 Certified Public Accountants & Business Advisors WSikich, 998 Corporate Boulevard • Aurora, IL 60502 SYSTEM REVIEW REPORT' To the Partners of Kemper CPA Group LLP and the Peer Review Committee of the Illinois CPA Society Members of American Institute of Certified Public Accountants We have reviewed the system of quality control for the accounting and auditing practice of Kemper CPA Group LLP (the firm) in effect for the year ended April 30, 2010. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.org/prsummary. As required by the standards, engagements selected for review included engagements performed under the Government Auditing Standards and audits of employee benefit plans. In our opinion, the system of quality control for the accounting and auditing practice of Kemper CPA Group LLP in effect for the year ended April 30, 2010, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies), or fail. Kemper CPA Group LLP has received a peer review rating of pass. Sikich LLP September 9, 2010 KEMPERR \ CPA GROUPILI Cr r UI icd 1'u blit Act ou maws and Consultants May 2, 2013 Audra J. Herndon Controller, City of Paducah 300 S. 5n' Street Paducah, KY 42003 The following is the addendum to our proposal for audit services applicable to page ) 5 of the proposal. These are the only changes to our original proposal: I) Your records will be well organized, properly maintained, and fully accessible to us within the time bane proposed and you will furnish us with complete and accurate reconciliations of all significant balance sheet accounts on or before the last week of August. 2) You twill lypc confirmation requests. i) You will provide us with other reconciliations and schedules we may request in completing the audit within a reasonable amount of time front of our initial request for such reconciliations. 1) You will provide us with a drall schedule of federal awards and expenditures (SGPA) on or before the last week of August. Our fee proposal includes a provision for the price of printing the CAMS, the electronic media report, copy charges and out of pocket expenses. Our Ice proposal also is prepared based on professional standards currently in effect or presently known as of the date of this proposal to be effective during future years with the understanding that future processional standards "significantly" affecting the required scope of our services are beyond our control and if such items did arise during subsequent fiscal periods we would work with you to reach a mutually agreeable solution farthose subsequent periods. The fee proposal does not include additional services outside the scope of the audit engagement proposal. You may request that we perform additional services not addressed in this proposal. If this occurs, we will communicate with you regarding the scope of the additional services, the estimated fees and we will not perform such services nor request compensation for such services without your prior written approval, ---J, �. 7, David S. Hampton, Partner Kemper CPA Group. LLP 1';'i Broadway . Sunup 1001 . Paducah, KY 12001 N. 1270144!1-4400 1 a\. (270)443-0(163 Lrmin irl,.i , gun Proposal To Provide Professional Services For CITY OF PADUCAH, KENTUCKY April 2013 WILLIAMS, WILLIAMS & LENTz, LLP CERTIFIED PUBLIC ACCOUNTANTS 601 JEFFERSON PADUCAH, KENTUCKY 42001 J. DAVID BAILEY, III C. SUZETTECRONCH ROGER G. HARRIS MICHAEL F. KARNES ROBERT H, ROBERTSON MARK A. THOMAS G. LEON WILLIAMS, 19262004 H. WILLIAM LENTZ J. RICHARD WALKER JERRY G. SEVERNS To the Mayor and Members of the City Council City of Paducah, Kentucky 300 South Fifth Street Paducah, Kentucky 42003 April 16, 2013 MAILINGADDRESS POST OFFICE BOX 2500 PADUCAH, KV 420022500 TELEPHONE 270M 3643 FAX 210 640.0652 WEBSITE ,wk'.. Williams, Williams & Lentz, LLP is pleased to submit this proposal to serve the City of Paducah, Kentucky as its independent accountants. Based on your proposal request and our knowledge of the services required, we have developed a proposal outlining the services we would provide the City and the fees for those services. In addition, we have provided general information concerning the accounting practice of Williams, Williams & Lentz, LLP. Williams, Williams & Lentz, LLP's experience with governmental entities and various nonprofit organizations enables us to serve as an important resource not only in technical accounting and audit issues, but in areas of increasing operational and internal control efficiencies. We hope to have the opportunity to serve the City of Paducah, Kentucky for the next four years. We appreciate our current relationship with the City of Paducah and hope to continue as your independent accountants. We are conuuitted to providing you with the highest level of professional services. If you have any questions about this proposal or would like to discuss our specific audit procedures, please feel free to contact us at your convenience. Sincerely, x X/° Certified Public Accountants -I- ACCOUNTING PRACTICE OF WILLIAMS, WILLIAMS & LENTZ, LLP Williams, Williams & Lentz, LLP is a full service accounting firm serving Western and Central Kentucky, Southern Illinois, and the surrounding areas. Williams, Williams & Lentz, LLP is Paducah's oldest and largest accounting firm providing quality services in all areas of accounting, auditing, and taxation since 1953. The firm has grown from three accountants to thirty associates, including six partners. All partners are members of the American Institute of Certified Public Accountants (AICPA) and the Kentucky Society of Certified Public Accountants. The firm is licensed in Kentucky and Illinois. Williams, Williams & Lentz, LLP has a strong governmental and nonprofit practice currently serving city and county governments, nonprofit organizations, hospitals, school boards, and others. In addition to individual and corporate accounting services, Williams, Williams & Lentz, LLP provides inheritance, trust, and estate tax return preparation as well as estate planning. Our clients range in size from individuals needing tax return preparation services to large multi -state corporations requiring audit and consulting services. A partial listing of present audit clients is presented as Exhibit 1. The Finn was established and maintains its commitment to providing quality professional services with an emphasis on what is best for each client's business or personal needs. We are dedicated to providing total client service. We are a firm of dedicated business advisors — our services go well beyond the audit attest function, and we possess the necessary skills to develop innovative solutions to our clients' problems. Williams, Williams & Lentz, LLP maintains a system of quality control that complies with professional standards that are described in the Statements on Quality Control Standards issued by the American Institute of Certified Public Accountants. We are subject to peer review every three years in accordance with established professional standards. A copy of our 2011 peer review report is attached as Attachment 1. As you can see from the report, Williams, Williams & Lentz, LLP received an unqualified opinion. The next peer review is scheduled for December of 2014. SCOPE OF SERVICES The City desires an annual audit of its financial statements, and thus, our proposal encompasses the following services: The annual audit of the financial statements in accordance with auditing standards generally accepted in the United States of America and standards for financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Completion and issuance of the Comprehensive Annual Financial Report, including 40 printed copies and one electronic copy. Issuance of a letter to the Mayor and City Council detailing any reportable conditions or material weaknesses in the system of internal controls. Our letter will also address our observations of significant management considerations we feel should be brought to your attention. Completion and electronic submission of the Financial Assessment required by the U.S. Department of Housing and Urban Development (HUD) Real Estate Assessment Center (REAC). Completion and electronic submission of the Data Collection Form as required by the Federal Audit Clearinghouse. Our approach to this engagement will involve planning, performance of appropriate audit tests, and issuance of our accountants' report and letter to the Mayor and Council. This phased approach is designed to maximize our understanding of your operations and to minimize the time required to conduct the audit. In each of these phases and from the end of one audit to the beginning of the succeeding audit, continuous communication is an important aspect of providing timely and efficient service. To encourage a continuous communication process, we do not bill for routine inquiries and phone calls. -2- Williams, Williams & Lentz, LLP is committed to devoting the time and energy necessary to ensure quality service and a professional audit. CLIENT SERVICE TEAM We have identified a team of experienced professionals to serve the City of Paducah. We believe this client service team working with City personnel is the key to a successful engagement. Our firm strives to assign the same key staff members to an engagement each year in order to provide a more efficient and in-depth audit. Excluding circumstances beyond our control, we commit to having the same team on your engagement throughout the term of this proposal request. Robert R. Robertson will act as the audit partner, coordinating all audit and accounting services. Ben Teer and Kim Beanland will act as the audit managers and are responsible for the fieldwork and supervision of staff accountants. The staff accountants for the audit will be determined based on our future assessment of the personnel best for the job. All staff on the job will have governmental auditing experience and meet the Government Accountability Office (GAO) continuing education requirements. In addition, we have several partners and managers that are available to provide consultation regarding governmental and nonprofit audit and accounting support should the occasion arise during our audit. R6sumds of Mr. Robertson, Mr. Teer, and Ms. Beanland are attached as Exhibits 2, 3, and 4. An organization chart of the proposed client service team is attached as Exhibit 5. ACCOUNTING FEES Our fees are based on the time expended on an engagement and the qualifications of the personnel assigned to perform the required services. Our fee quotation represents what we believe to be the normal fee for an annual audit and is not contingent or otherwise dependent on any opinion, statement, or finding. We are sure that you can appreciate the difficulty in estimating audit fees for a four year period. Changes in the City's personnel, operations or regulations could significantly impact the requirements for completing your audit. In addition, recent changes in corporate and governmental oversight have resulted in unprecedented changes to reporting and auditing standards. It is fully expected that increased scrutiny and general reporting concerns will continue to cause changes in the financial reporting requirements. Therefore, our fee estimates are based solely on current reporting requirements with no adjustment for changes that might occur in the next four years. However, we continue our commitment to the City of Paducah to provide first class quality service at a reasonable fee. If unforeseen changes are dictated by the accounting profession, we must, as a service to the City, incorporate those changes. Such changes have historically required auditors to perforin more in depth procedures and, thus, incur more time on an engagement. Our commitment to you is that we will discuss the details of any unforeseen changes and the impact on our fee estimate. Subject to the uncertainties mentioned above and based on prior experience of our firm with the City of Paducah, we commit that our fee for the audit of the City of Paducah, Kentucky for the years ended June 30, 2013, 2014, 2015, and 2016 will be $54,500, $55,000, $55,500, and $56,000, respectively. Assuming that the accounting records are closed and available to us by August 23 and there are no unforeseen difficulties, we will complete our fieldwork by the end of September. If all information needed from the City and all component unit audit reports are received by the end of September, we will present a preliminary copy of the audit report to the Finance Officer by October 28 for preparation of the Management's Discussion and Analysis. We will then complete our work and present the Comprehensive Annual Financial Report to the City within two weeks of receiving this document. -3- OTHER INFORMATION All staff and partners involved in governmental audits are required to meet the GAO continuing education requirements. Compliance with the requirements is monitored annually. These requirements include eighty hours of continuing professional education related to auditing every two years with at least twenty-four of these hours being qualified governmental courses. We certify that GAO continuing education requirements have been met by our firm. Details will be provided upon request. Williams, Williams & Lentz, LLP remains informed of Governmental Accounting Standards Board (GASB) requirements through continuing education courses and subscriptions to governmental, auditing, and accounting publications and reporting services. As in prior years, we will continue to advise you of these requirements. -4- Exhibit 1 PARTIAL LISTING OF PRESENT AUDPl' CLIENTS Governmental and Nonprofit Audits: Paducah Water Tillman Burnett, Controller 270-444-5551 Paducah Board of Education Dr. Randy Green, Superintendent 270-444-5600 Purchase Area Development District Andy Bennett, Finance Officer 270-247-7171 Museum of the American Quilters Society Meredith Schroeder, Co -Founder and Board Member 270-442-8856 Paducah Power Dave Carroll, Director of Finance 270-575-5700 Other For Profit Audits: Paducah Bank Shares, Inc. Joe Framptom, CEO 270-575-5700 Smith Contracting Company, LLC Rex Smith, President 270-362-8661 Paxton Media Group, Inc. David Paxton, President 270-575-8600 We have considerable experience in audits of governmental, nonprofit and other entities. We will be happy to supply additional references upon request. -5- Exhibit 2 PARTNER RESUME ROBERT R. ROBERTSON Certified Public Accountant 1972 — Present Williams. Williams & Lentz. LLP, Paducah, Kentucky. Partner with auditing experience which includes concentrations in auditing of governmental units, non-profit entities, utilities and construction companies. Taxation experience includes individuals, corporations, and partnerships. 1967-1972 Employed as college level teacher of Accounting and related subjects at Kentucky Wesleyan College, Owensboro, Kentucky. Education Lipscomb University, Nashville, Tennessee Bachelor of Science, 1966 Murray State University, Murray, Kentucky Masters in Business Administration, 1967 Affiliations American Institute of Certified Public Accountants Kentucky Society of Certified Public Accountants Illinois Certified Public Accountant -6- Exhibit 3 MANAGER RESUME BEN TEER Certified Public Accountant June 2002 — Williams, Williams & Lentz, LLP, Paducah, Kentucky Present Manager Manager with experience primarily in the areas of auditing, accounting, and taxation. Auditing experience includes concentrations in audits of governmental units, nonprofit entities and small businesses. Education University of Notre Dame, Notre Dame, Indiana Master of Science in Accountancy, 2002 Lindsey Wilson College, Columbia, Kentucky Bachelor of Arts in Accounting, 2001 Affiliations American Institute of Certified Public Accountants Kentucky Society of Certified Public Accountants 7- Exhibit 4 MANAGER R$SUME KIM BEANLAND Certified Public Accountant June 2001 — Williams, Williams & Lentz, LLP, Paducah, Kentucky Present Manager Senior auditor on financial institution audits. Manager on governmental and Single Audit entities including larger cities, counties, and school systems. Other audit responsibilities include not-for-profit organizations and HUD audits. Income tax experience includes individuals, corporations, and partnerships. Education Murray State University, Murray, Kentucky Bachelor of Science in Business Administration, 2000 Affiliations American Institute of Certified Public Accountants Kentucky Society of Certified Public Accountants Exhibit 5 CLIENT SERVICE TEAM ORGANIZATION CHART -9- Attachment 1 HrtttOLD-13ANWART, LTD. Certified Public Accountanu Riverfront Office Center 2400 N. Main Street Ea;t Peoria, IL 6161 1.1795 Tel 309.694.4751 Faz 309.694,4702 System Review Report January 6, 2012 To the Partners of Williams, Williams & Lentz, LLP and the Peer Review Committee of the Kentucky Society of CPAs We have reviewed the system of quality control for the accounting and auditing practice of Williams, Williams & Lentz, LLP (the firm) in effect for the year ended June 30, 2011. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.org/Resea rch/Standards/PeerRevi ew/DownloadableDocuments/l'RSummary.pd f. As required by the standards, engagements selected for review included engagements performed under Government lluditing :Standards and an audit of an employee benefit plan. In our opinion, the system of quality control for the accounting and auditing practice of Williams, Wi Ilianns & Lentz, LLP in effect for the year ended June 30, 2011, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deffcie7cy(ies) or./ail. Williams, Williams & Lentz, LLP has received a peer review rating of pass. im Agenda Action Form Paducah City Commission Meeting Date: May 2 8,20 13 Short Title: 2013/14 CDBG : Center Point Recovery Center ®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Audra Herndon, Cheryl Meadows Presentation By: Steve Ervin Background Information: In 2006, under Ordinance 2006-4-7107, the City of Paducah accepted a Community Development Block Grant (CDBG) Award from the Kentucky Department for Local Government on behalf subrecipient, Four Rivers Behavioral Health's Center Point Recovery Center, of which the grant agreement expired June 2012. On March 26, the Commission through Municipal Order 1715 authorized the execution of a 2013/14 application. The Kentucky Department of Local Government has accepted the application and awarded the City of Paducah the amount of $250,000 for public services on behalf of the Four Rivers Behavioral Health's Center Point Recovery Center. The City of Paducah will receive $12,500 for grant administration, monitoring and maintaining records with the amount of $237,500 to be spent on salaries at Center Point Recovery Center. There is no local match. if the Commission desires to accept the award offered by Department for Local Government it must authorize and direct the Mayor or Mayor's designee to sign a legally binding agreement with Four River Behavioral Health, LLC. and all other required grant award documents. Goal: ❑Strong Economy ® Quality Services❑ Vital Neighborhoods[] Restored Downtowns Funds Available: Account Name: Account Number: Finance Project Number: Staff Recommendation: Approval Attachments: Department Head City Clerk Ik Ail anager ORDINANCE NO, 2013 -6 - AN ORDINANCE OF THE CITY OF PADUCAH APPROVING AN AGREEMENT WITH THE KENTUCKY DEPARTMENT FOR LOCAL GOVERNMENT TO OBTAIN A COMMUNITY DEVELOPMENT BLOCK GRANT AWARD ON BEHALFOFTHE FOUR RIVERS BEHAVIORAL HEALTH CENTER POINT RECOVERY CENTER, AND AUTHORIZING THE MAYOR TO EXECUTE ALL DOCUMENTS RELATING TO SAME WHEREAS, the City of Paducah adopted Municipal Order No. 1715 on March 26, 2013 authorizing the application for a Community Development Block Grant from the Governor's Office for Local Development for the Four Rivers Behavioral Health Recovery Center Project (Center Point); and WHEREAS, the Kentucky Department for Local Government has offered a grant award in the amount of $250,000; and WHEREAS, the City will receive 512,500 for grand administration, monitoring and maintaining records witht eh of $237,500 to be spent on salaries at Center Point Recover Center; and WHEREAS, it is now necessary to proceed for approval by the Board of Commissioners for the City to accept the grant award and to execute the legally binding agreement with Four Rivers Behavioral Health. BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION L That the City of Paducah approves an Agreement with the Kentucky Department for Local Government to obtain a Community Development Block Grant Award on behalf of Four Rivers Behavioral Health Center Point Recovery Center in the amount of $250,000 with the City receiving 512,500 of said grant for administration. No local match is required. SECTION 2. That the Mayor is hereby authorized to execute all document necessary to accept the grant award with the Kentucky Department for Local Government and authorized to execute the legally binding agreement with Four Rivers Behavioral Health for the Center Point Recovery Center as approved in Section I above. SECTION 3. This ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter 424. Mayor ATTEST: Tammara S. Sanderson, City Clerk Introduced by the Board of Commissioners, May 28, 2013 Adopted by the Board of Commissioners, June 11, 2013 Recorded by Tammara S. Sanderson, City Clerk, June 11, 2013 Published by The Paducah Sun, — \ord\plan\gram\FRBH Recovery Center 2013 Legally Binding Agreement This agreement entered into this 11`h day of June, 2013, by and between the City of Paducah, hereinafter referred to as the Recipient, and Four River Behavioral Health, LLC., hereinafter referred to as the Participating Party. This agreement is being executed in two original contracts, each of which is deemed an original. WHEREAS, the Recipient has entered into a Grant Agreement with the Commonwealth of Kentucky, Department of Local Government, and WHEREAS, the payment of funds to the Recipient under the terms of the Grant Agreement is contingent upon the Participating Party contracting to undertake certain responsibilities , and WHEREAS, the funds made available under the terms of the Grant Agreement will directly benefit the Participating Party, In accordance with the term of this agreement, for and in consideration of the sum of $250,000, that $237,000 will be paid to the Participating Party and Recipient shall retain $12,500 for grant administration services, and in further consideration of the mutual promises and covenants hereinafter contained , IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: The Recipient and Participating Party do hereby agree to carry out and perform all of the activities required of it under the terms and conditions of the Grant Agreement, which agreement is incorporated herein by reference as if copied in full. The Recipient agrees as follows: a) Coordinate the Request for Payment to ensure consistency with the State Account procedures establish for the KCDBG program. Administration and draw -down of grant funds and their expenditures on eligible activities. b) Ensure the acceptable financial management system as it pertains to finances of the KCDBG program. An acceptable systems includes, but is not limited to, cash receipts, and disbursement journal and accompanying ledgers, the cash control register, and should conform to generally accepted principals of municipal accounting. c) Establish project files. These must demonstrate compliance with all applicable Federal, State and local regulations. Monitor project files throughout the program to ensure they are complete and that all necessary documentation is being retained in the Participating Party's files. d) Prepare periodic reports as it may the state of Kentucky requests pertaining to the work or services undertaken pursuant to this Contract, the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by this Contact. To perform project activities as enumerated in Exhibit B of the Grant Agreement and as enumerated below: a) The Recipient shall provide the Participating Party with CDBG Funds for Center Point Recovery Center for operational costs, which are limited to salaries. b) The Recipient shall ensure that the participating Party implements the social recovery program model as outlined in the Recovery Kentucky Guidelines and application. c) The Recipient shall ensure that the Participating Party meets the National Objective of 51 percent low and moderate —income (LM I) benefit during the CDBG funding period. d) The Recipient shall ensure that the Participating Party meets all reporting requirements regarding client income data and expenditure of CDBG funds. The Participating Party agrees as follows: a) Participating Party shall provide alcohol and drug recovery services in a social model setting. These programs and services include housing, detox, life skills, and other educational classes. b) Participating Party shall assure and grant access to employment records by the Recipient and the Commonwealth of for the sole purpose of confirming compliance with job requirements set forth in Exhibit A and CDBG benefit requirements. c) Participating Party shall assure that the recapture of CDBG funds will be deposited in a Revolving Fund Account (RF). Recaptured funds will be used for activities set forth in the application dated April 10, 2013. The Participating Party shall assure compliance with proper accounting and reporting requirements related thereto. The Participating Party shall obtain project approval from the Recipient for the expenditure of funds as specified in the RF document. d) To maintain for a period of five years following project closeout all financial records and documents relative to disbursement of any CDBG or otherfunds identified in and required by the Grant Agreement. Such records include, but are not limited to, ledgers, bank statements, contracts, invoices and reports. e) To grant access to inspect , copy, audit and examine at all reasonable a times employment and financial records to any duly authorized representative of the Commonwealth, HUD, Inspector General and General Accounting Office of the United States, for a period of up to five years following completion of the close out. f) To comply with all State and Federal laws and regulation pertinent to the project The Participating Party further agrees to the following terms and conditions: a) That no transfer of grant funds by the Recipient to the Participating Party shall be or be deemed an assignment of grant funds, and that the Participating Party shall neither succeed to any rights, benefits, or advantages of the Recipient under the terms of the hereinabove described Grant Agreement nor attain any rights, privileges, authorities or interest in or under the said agreement. b) That the Participating Party acknowledges nothing contained in the said agreement, nor is any contract between the parties hereto, nor any act of the Commonwealth, the Recipient or any other party shall deemed or construed to create any relationship or third -party beneficiary, principal and agent, limited or general partnership, or joint venture, or any association or relationship involving the Commonwealth. c) That the Recipient shall not be liable to the Participating Party or any party except the Commonwealth, for the completion of , or the failure to complete, any activities which are a part of the project herein contemplated, except those specified in Exhibit B, of the said Grant Agreement. d) None of the Participating Party's agents, members, officers , subcontracts, or proceeds thereof, for work to be performed in connection with the project herein contemplated at any time during or after such person's tenure with the Participating Party. e) The obligations of the parties are totally contingent upon the obtaining of a Release of Funds from the Department of Local Government and no project activities other than environmentally exempt activities may occur until the release is achieved. f) Recipient, Participating Party agree and accept that all applicable previsions of the Grant Agreement are incorporated into and made a part of this Legally Binding Agreement. Legally Binding Agreement This Agreement being formally adopted this day of Recipient: Mayor Recipient Attorney State of Kentucky County of McCracken Subscribed , sworn to and acknowledged before me by by and through resolution, on this day of Title My Commission Expires: Notary Public Participating Party: Presi ent/CEO State of Kentucky County of McCracken Subscribed, sworn to and acknowledged before me bT C -C-0 by and through resolution , on this a3' ( day of 2013, Title My Commission expires: at aouv CQ G mwa) Notary Public 4to 46 401 OFFICE OF THE GOVERNOR DEPARTMENT FOR LOCAL GOVERNMENT Steven L. Beshear Governor The Honorable Gayle Kaler Mayor, City of Paducah 300 South 5`h Street P.O. Box 2267 Paducah, Kentucky 42002 1024 Capital Center Drive, Suite 340 Frankfort, Kentucky 40601 Phone(502)573-2382 Fax(502)573-2939 Toll Free (800) 346-5606 www.dlg.ky.gov May 13, 2013 RE: Four Rivers Recovery Center (Recovery Kentucky) 13-005 Dear Mayor Kaler: Tony Wilder Commissioner On behalf of Governor Steven L. Beshear and the staff of the Department for Local Government (DLG), I am pleased to congratulate you on your selection as a recipient of Community Development Block Grant (CDBG) funds. Preliminary approval has been given to your CDBG project referenced above in the amount of $250,000. This approval is based on your acceptance of the conditions outlined below. The Recipient agrees to perform activities as stated in the CDBG application and as summarized below: 1. The Recipient shall provide the Participating Party with CDBG funds for The ( limited to salaries. ) operational costs, which is �+ 'Fou P, RtvERS Rec-OQ ( &_t r--Erz( p%otjLON") se 5/2.1/13 2. The Recipient shall ensure that the Participating Party implements the social recovery program model as outlined in the Recovery Kentucky Guidelines and application. 3. The Recipient shall ensure that the Participating Party meets the National Objective of 51 percent low and moderate -income (LMI) benefit during the CDBG funding period. ,Ke�atch� UNBRIDLED SPIR/T An Equal Opportunity Employer M/F/D The Honorable Gayle Kaler May 13, 2013 Page Two 4. The Recipient shall ensure that the Participating Party meets all reporting requirements regarding client income data and expenditure of CDBG funds and performance measures. 5. The Recipient shall provide necessary administration of the project to assure compliance with all applicable state, federal and local statutes, as set forth in the KCDBG Statement of Assurances signed by Mayor Gayle Kaler on April 9, 2013 and submitted on or about that date as part of the project application. Before a grant agreement between your community and the Commonwealth can be drafted, you must provide our office with written acceptance of the conditions listed above. Please indicate your acceptance of these conditions by signing below. Please return this signed document to our office by June 15, 2013. Following receipt of your signature a grant agreement will be prepared. The Kentucky Community Development Block Grant Handbook will give you a step-by- step guide on how to obtain release of funds, meet environmental requirements, meet all federal and state CDBG requirements and successfully complete your project. Your project administrator has a copy of the handbook and one is also available to you at your request. Please return this documentation to: Lynn Travis Littrell, Executive Director, Office of Federal Grants, Department for Local Government, 1024 Capital Center Drive, Suite 340, Frankfort, Kentucky 40601. We look forward to working with you and assisting your community with this grant. Please contact Mark Williams at 502/573-2382, ext. 259, if you have questions concerning this preliminary approval letter. c: Cheryl Meadows C The Honorable Gayle Kaler May 13, 2013 Page Three By affixing my signature below, I, the authorized representative of the applicant, do hereby agree to the conditions set forth above. Date J ��