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Council/PEDC Meeting September 15, 2014 Page 8 spent money and they got some results, which is more than the previous directors had done. Council Member Grossnickle said he was not defending Mr. Gilbert, but Mr. Gilbert had not been given the chance to speak. Mr. Turner asked where Mr. Gilbert was. Council Member Lancaster said he refused to be interviewed. Council Member Grossnickle said he was already fired and Mr. Turner said he was not fired, but that he quit. Council Member Plata asked Mr. Moore's opinion as to if he thought there were sufficient written procedures for PEDC. Mr. Moore said State Law addresses all of it except maybe travel policy, including per diem expenditures. Council Member Hashmi referenced the Algae project, and said he thought the PEDC gave them about $100,000 and they were supposed to give the money back if the project did not materialize. He said the project did not materialize, and the $100,000 was gone. Council Member Hashmi asked Mrs. Barrentine if PEDC was paid back and Mrs. Barrentine said .... [inaudible as she was speaking from the audience] Council Member Hashmi said a problem occurs when you have rules that require an agreement and it is not done. He asked Mr. Moore, what recourse was available to the Council, EDC, and citizens. He said Mr. Moore said it was not criminal and it was not fraudulent, and then inquired what could be done when tax payer funds were wasted. Mr. Moore stated you always have the remedy of filing a lawsuit. Council Member Hashmi wanted to know what happens when the EDC Director is responsible for getting the agreement executed and does not follow through with it, but gave the company funds. Mr. Moore said this was a political issue and Council Member Hashmi wanted to know why it was a political issue. Mr. Moore said people could lose their jobs for not carrying out their duties. Council Member Hashmi wanted to know what the recourse was if the city manager starts spending monies on road repairs, and actually does not sign the contract but expends the money to the contractor. Mr. Moore said what the Courts have done is prohibit impermissible expenditures. Council Member Hashmi wanted to know how the City or PEDC gets the money back, and if the person responsible is supposed to be punished, or does the law say it is acceptable. He referenced an employee theft where money was pocketed and the employee was arrested. Mr. Moore explained employee theft was different in that the employee personally benefited or gained and the Texas Penal Code had theft statutes that addressed those sorts of theft of public funds. As far at the $400,000, Mr. Moore suggested they change the expenditure policy on what requires Council approval. He stated that written agreements approved by the Board and City Council was a good remedy. Council Member Lancaster said they need to clean up the approval process and make sure there are written agreements. She said she knew of one instance where a company had not met job requirement obligation but the company was given a good sum of money. Mr. Moore said they may have a written agreement that provides a recourse of the penalty under the tax abatement. Council Member Lancaster said they should be enforcing them. Council Member Lancaster said she was shocked when she learned of one company who was to have hired a certain number of employees, but did not hire even one person and still received the incentive money from PEDC. Mr. Moore said City Council would have approved that agreement and Council Member Lancaster said she did not think that Council approved the agreement.