Under Kentucky State Law a city must bid out any project that will cost more than 20-thousand dollars. The audit highlighted two cases where they city may have broken this law. The first infraction involved a construction project on StoneCrest Golf Course. According to Mayor Les Stapleton Jarell Contracting was hired to build two awnings at the riding stables, with a project budget of just under 140-thousand dollars. Of those funds over 105-thousand was paid directly to the contractor, and 31-thousand went toward materials. Auditors could find no documentation showing that the city had advertised these projects for bidding. Jarell Contracting was also given a 112-thousand dollar contract for work on the city’s sidewalks. The city broke this project into several smaller ones to avoid to bidding process. According to the Pikeville City Attorney Russell Davis, this could fall into a legal grey area. Since the city did not create a budget for the project as a whole, it is not blatant fraud. But the city’s legal handbook states that they, “must act in good faith and not attempt to split contracts to avoid bidding”. While there have been no charges filed, it has been alleged that former Mayor Jerry Fannin gave the projects to this contractor because of a private relationship. We tried contacting Jarell Contracting to get a statement, but they refused to speak with us. According to Mayor Les Stapleton, the city is actively working toward compliance with the Kentucky statutes.