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Joint City Council /PEDC Meeting September 15, 2014 Page 2 specifically the value of the loans, security or appraised tax value, or both, of a certain transaction involving the PEDC and HWH. He also said the letter indicates there appeared to be a conflict of interest for then Mayor Will Baird to have participated in the negotiation of the incentive agreement with HWH. Mr. Grubbs said on April 2, 2014 the PEDC elected to use Defenbaugh and Associates to complete the forensic investigation, the estimated cost to be $50,000, a ninety day agreement was signed and it began on April 3, 2014, and continued through July 3, 2014. Under the agreement, Mr. Defenbaugh was to provide weekly oral status reports and a monthly written report to the PEDC and that never occurred. He said PEDC board chair Rebecca Clifford denied having received any reports from Mr. Defenbaugh at the PEDC board meeting on May 6 and again denied having received any written reports at the June 3, 2014, joint meeting of the City Council and the PEDC. Mr. Grubbs said that he received a preliminary report from Mr. Defenbaugh on July 25, 2014, and on August 5, 2014 the PEDC board met in executive session to discuss personnel issues that were noted in the Defenbaugh report. Mr. Grubbs also said that Mr. Defenbaugh was in attendance and it was then that they were told that the report that they had received was in fact not his final report. On August 11 `f` the final report was delivered to the PEDC office by Mr. Defenbaugh and on August 15, the final report made available to the public. Mr. Grubbs said he asked PEDC attorney Jeff Moore to walk them through the more relevant aspects of the report as it pertained to Texas Law. He informed City Council that Jeff Moore was a partner with Brown and Hoffineister, who had a practice emphasizing local governmental law, economic development, zoning and land use. He also said Mr. Moore possessed 20 years of municipal law experience, was a frequent speaker around the State of Texas on Municipal topics such as Economic Development for Texas cities, including Type A and Type B sales tax, chapter 380 agreements, tax abatement agreements, tax incentive financing, the Texas Open Meetings Act and the Texas Public Information Act. Mr. Grubbs stated Mr. Moore had spent four years with the Texas Attorney General's office as the head of the Municipal Affairs Section and currently assists the Texas Economic Development Council, the Texas Attorney General's Office and the State Comptroller office with Type A and Type B sales tax training, and conducts training seminars required by the Texas Legislature. Jeff Moore gave a presentation to the City Council and the PEDC Board, which covered Type A Sales Tax Issues, State oversight, permissible Type A projects, promotional expenditures, job training, sales tax proceeds for promotional purposes, business recruitment and development, gifting proceeds, approval of PEDC expenditures, and State conflicts of interest statute. Mr. Moore noted the report had a lot of discussion about the lack of policies and procedures, and then pointed out that State Law had already addressed all of that. Mr. Moore stressed the sales tax was a local issue. He said voters vote it in and voters can vote it out, and it was not for the Comptroller's office to investigate, and it was not for the Attorney General's office to investigate. Mr. Moore said the district attorney's office is to investigate if there is some criminal wrongdoing, and that they could ask the prosecutors assistant division within the Attorney General's office for help. He noted that in the report there was some quest for the Attorney Generals' office or the Comptroller's Office to review, and then stated if the EDC hired a third party to do business recruitment and they did not have a written contract for that business recruitment effort, that the Attorney General's Office could go after the EDC for failure to have a contract. Mr. Moore said that was a civil penalty and the fine could be