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Kevin Watson, Finance Director, City of Louisville <br />September 10, 2013 <br />Page 2 of 2 <br />We have reviewed the Standard Terms and Conditions set forth in Section 3 and are accepting <br />of those terms and conditions. <br />We noted that the RFP at Section 4, Required Submittals: listed the following: <br />• Submit a fee contingent upon the results of the audit. This fee should be expressed as a <br />percentage of the total additional tax and fees collected by the City based on the audit <br />findings. <br />• Submit a fee based on an hourly billable rate and the estimated number of hours <br />estimated for the project. Describe the overall billing process and detail the <br />documentation to be used to support invoices submitted. <br />In complying with this requirement, the Louisville Allixa Audit Team provides a contingent fee <br />alternative, a fixed cost alternative and a combination of a fixed and contingent fee. These are <br />explained in Section 5 of our proposal. We recommend the combination of a fixed fee and <br />contingent fee. <br />If you need any additional information, please phone us at your convenience. Our main <br />objective is to provide consulting services that reflect the highest standard of quality. <br />Sincerely, <br />ALLIXA CONSULTING, INC. <br />Garth T. Ashpaugh <br />President <br />Enclosure <br />16 <br />