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said the two items are still important and can be considered part of the quarterly reporting process. He added that no conditions have been dropped, waived, or altered, as a result of the MOU.

Representative Larry Clark welcomed the Committee members and the staff to Louisville, and then asked Mr. Hintze what recourse or appeals process citizens will have if they believe the MOU has been violated. Mr. Hintze responded that the MOU for this project is actually more detailed than most of the other local projects funded in the 1998 Session. If any of the conditions set out in the MOU are not adhered to, either party has recourse through negotiations or legal action.

In response to a question from Representative Wayne, Mr. DeLong said the RAA is looking at a minimum of seven years and a maximum of ten years to move all 1,600 families out of the area affected by the airport expansion.

Representative Wayne commended the RAA and Mr. DeLong for delaying construction of the skywalks that connect the parking garage to the terminal. He said this decision to delay expenditures relating to the skywalks until the property of the remaining 1,600 families has been purchased is a very positive gesture.

Representative Wayne made a motion to approve the $20 million MOU for the RAA. The motion was seconded by Representative Graham and passed by voice vote.

Chairman Damron then referred to the budgeted local projects, and said legislators want funds appropriated for those projects to be disbursed to communities as soon as possible, but at the same time they want to make sure the money is being spent properly. Mr. Hintze said that is the reason for using a formal legal instrument like an MOU prior to disbursing the funds. He added that the Finance Cabinet is preparing MOUs for approximately 400 local projects included in the 1998-2000 Executive Budget.

Chairman Damron asked if the MOUs contain a follow-up mechanism to make sure the surplus funds are being spent as authorized. Mr. Hintze said the project funds are routed through a city or county government, and the MOUs make the local governments legally responsible for assuring local grant projects are performed, conducted, procured, and delivered as intended. Local governments are required to follow their procurement code, and are subject to an audit. He noted that while the Finance Cabinet does not have the resources to audit each project, the MOU stipulates than an audit, either by an independent auditor or the Auditor of Public Accounts, shall be required.

Mr. Hintze explained that there are four major cabinets (Tourism Development Cabinet, Economic Development Cabinet, Finance Cabinet, and the General Government/Cabinet Department for Local Government) in charge of these various local


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