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Special Council Meeting June 3, 2014 Page 3 Following a brief discussion about the anonymous letter, Mrs. Clifford verified with Council Member Pickle that he was at the PEDC meeting in which the HWH incentive loan guarantee was discussed and approved. He said he did not have concerns about the loan guarantee, but did have some issues. Council Member Pickle wanted to know the difference between a forensic audit and forensic investigation. Mrs. Clifford said it was semantics and that an audit usually involves a C.P.A. firm while an investigator does not have to be a C.PA. She told the Council the background of the Defenbaugh firm was they were former FBI agents involved in investigating different types of white collar crime. Council Member Pickle inquired if Mrs. Clifford thought there were illegal activities or that things were not disclosed to members of the PEDC during that time. Mrs. Clifford said she did not have an opinion and that she was not conducting an investigation. Citizen Joan Moore said she had called Mayor Frierson and Council Member Pickle to ask if the citizens were going to be allowed to speak and she could not believe that the public were not allowed to give input. Mayor Frierson said there was no public forum at this meeting, but there would be one at the next meeting. Council Member Grossnickle said this investigation was the result of an unsigned letter, which casted dispersions on Harris, Walker, Harper, Rogers Wade, former mayor and now District Will Biard, and Steve Gilbert and apparently Pike Burkhart. He also questioned the invoice, in that it reflected three reports had been submitted, but neither Mrs. Clifford nor the PEDC had received a report. He went on to question why the investigation was ongoing and an invoice paid, but there was no report. He said they should not spend another $20,000 if they were not doing their job. Mrs. Clifford said she had not authorized payment of the second invoice. Council Member Grossnickle said apparently the firm had stayed busy looking at credit card receipts, which had nothing to do with what was alleged in the unsigned letter. He said he did not understand how they went from investigating Rogers Wade's ability to borrow $5,000,000,000 with a $40,000 lot as collateral and how Judge Biard was alleged to have done double duty as working for Harris and Walker while he was mayor and questioned what this had to do with the credit card receipts. Mrs. Clifford said the PEDC Board was instructed to get someone to investigate the operations of PEDC and it was not strictly focused on one deal. Mrs. Clifford said she was not at the meeting to investigate, but to present facts. Council Member Pickle said he would like to see a report that was promised thirty days ago. Council Member Grossnickle said she should demand a report and tell Defenbaugh they are in default of their contract. Council Member Plata also said he would like to see a report, because he hated to spend tax payers' money on something they did not have and recommended that the second invoice not be paid until the report was received. Mayor Fierson asked Vice Chair Stephen Grubbs if the investigation was flowing the way he thought it should with regard to the timeliness or lack of reporting. Mr. Grubbs said the big question was what were they really doing and it was presented to the PEDC as a forensic investigation and not a forensic audit. He said he was a little disappointed in how things turned out because he did not think what had transpired was what was the PEDC charged with as it pertained to the audit. Mr. Grubbs said the most important thing was that they learn the truth,