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09/15/2014
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CITY CLERK
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Joint City Council /PEDC Meeting <br />September 15, 2014 <br />Page 8 <br />time and he actually received awards. He referenced Mr. Gilbert receiving national attention for <br />being one of the most successful EDC's and said whether they squandered money or not, they <br />spent money and they got some results, which is more than the previous directors had done. <br />Council Member Grossnickle said he was not defending Mr. Gilbert, but Mr. Gilbert had not <br />been given the chance to speak. Mr. Turner asked where Mr. Gilbert was. Council Member <br />Lancaster said he refused to be interviewed. Council Member Grossnickle said he was already <br />fired and Mr. Turner said he was not fired, but that he quit. <br />Council Member Plata asked Mr. Moore's opinion as to if he thought there were <br />sufficient written procedures for PEDC. Mr. Moore said State Law addresses all of it except <br />maybe travel policy, including per diem expenditures. <br />Council Member Hashmi referenced the Algae project, and said he thought the PEDC <br />gave them about $100,000 and they were supposed to give the money back if the project did not <br />materialize. He said the project did not materialize, and the $100,000 was gone. Council <br />Member Hashmi asked Mrs. Barrentine if PEDC was paid back and Mrs. Barrentine said .... <br />[inaudible as she was speaking from the audience] Council Member Hashmi said a problem <br />occurs when you have rules that require an agreement and it is not done. He asked Mr. Moore, <br />what recourse was available to the Council, EDC, and citizens. He said Mr. Moore said it was <br />not criminal and it was not fraudulent, and then inquired what could be done when tax payer <br />funds were wasted. Mr. Moore stated you always have the remedy of filing a lawsuit. Council <br />Member Hashmi wanted to know what happens when the EDC Director is responsible for getting <br />the agreement executed and does not follow through with it, but gave the company funds. Mr. <br />Moore said this was a political issue and Council Member Hashmi wanted to know why it was a <br />political issue. Mr. Moore said people could lose their jobs for not carrying out their duties. <br />Council Member Hashmi wanted to know what the recourse was if the city manager starts <br />spending monies on road repairs, and actually does not sign the contract but expends the money <br />to the contractor. Mr. Moore said what the Courts have done is prohibit impermissible <br />expenditures. Council Member Hashmi wanted to know how the City or PEDC gets the money <br />back, and if the person responsible is supposed to be punished, or does the law say it is <br />acceptable. He referenced an employee theft where money was pocketed and the employee was <br />arrested. Mr. Moore explained employee theft was different in that the employee personally <br />benefited or gained and the Texas Penal Code had theft statutes that addressed those sorts of theft <br />of public funds. As far at the $400,000, Mr. Moore suggested they change the expenditure <br />policy on what requires Council approval. He stated that written agreements approved by the <br />Board and City Council was a good remedy. Council Member Lancaster said they need to clean <br />up the approval process and make sure there are written agreements. She said she knew of one <br />instance where a company had not met job requirement obligation but the company was given a <br />good sum of money. Mr. Moore said they may have a written agreement that provides a <br />recourse of the penalty under the tax abatement. Council Member Lancaster said they should be <br />enforcing them. Council Member Lancaster said she was shocked when she learned of one <br />company, who was to have hired a certain number of employees, but did not hire even one <br />person and still received the incentive money from PEDC. Mr. Moore said City Council would <br />have approved that agreement and Council Member Lancaster said she did not think that Council <br />approved the agreement. <br />
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