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Regular Council Meeting March 10, 2014 Page 4 A Motion to ask PEDC to conduct a forensic audit of the PEDC accounts by a source outside of Lamar County was made by Mayor Hashmi. Council Member Wright seconded the motion. Mayor Hashmi opened the item for discussion. Council Member Frierson said this item went through PEDC, an attorney and that Mr. Wright attended the meetings. He said Mr. Wright did not raise a flag at that point. He also said PEDC had been auditing itself. Council Member Frierson said this particular company was a job creator and he did not know if an audit would be valid. Council Member Wright stated that he was a non -voter for the purpose of PEDC meetings and that at that time he served as a liaison, along with Council Member Edwin Pickle. Council Member Frierson inquired if Council Member Wright had the responsibility to report to the City Council and Council Member Wright replied that the entire Council received minutes from the PEDC. Council Member Drake said she was not fond of anonymous letters; however, there are times that people worry about retaliation so they write these types of letters. Council Member Drake said as public servants, they have a duty to look at these types of issues, because the people put their trust in the City Council. She also said when a new PEDC director is hired, that the person would want to know that business had been conducted above board. Council Member Drake emphasized that she was not accusing anyone of anything, but that the Council had received information from three different sources about some questionable activities at the PEDC. She also said although this occurred four years ago, that information had been brought to the attention of the current City Council. Council Member Drake said she wanted to get this matter cleared up, so that the City and PEDC could move forward. Council Member Grossnickle said the information was incomplete and that he had been told there was more to guarantee the loan than just that one property. He suggested that PEDC asked questions of the participants to find out if there was more security for collateral prior to hiring an auditor. He said that HWH had done a lot for the community by way of creation of jobs. Council Member Lancaster said she did not like anonymous letters, but they had received the information and she would like for PEDC to obtain complete information. Council Member Jenkins said he was uncomfortable with this issue and needed additional time to consider it. Council Member Frierson said he had taken a quick glance at the Lamar County Appraisal District and that the total value of the company's property was in excess of three million dollars. He also said this company had been good for Paris, had created jobs and had expanded the business. Mayor Hashmi said he understood, but that the City Council had received this letter and some attached documentation, which is why he placed the item on the agenda and why he made the motion. Council Member Wright said he was not accusing anyone of anything, but the Council was made aware that there was some questionable activity that had occurred at PEDC and that no one could deny that. Based on all the information received, Council Member Wright said it would not hurt for a review of PEDC. Council Member Wright also said the people that were innocent certainly needed to have their name cleared. Being no further discussion, Mayor Hashmi asked for a vote. Motion carried, 4 ayes — 3 nays, with Council Members Jenkins, Grossnickle and Frierson casting the dissenting votes.