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10/27/2014 MINUTESPARIS ECONOMIC DEVELOPMENT CORPORATION Special Called Meeting Monday, October 27, 2014 MINUTES Board Members Staff Present: John Brockman, Vice Chair Present: Shannon Barrentine Rebecca Clifford, Secretary /Treasurer Interim Executive Director Don Wilson Chassidi Taylor David Turner Admin. Assistant Ex- Officio Members Guest(s) Present: None Present: Ray Banks Don Taylor Legal Matthew Boyd, Counsel: None KXII Reporter Connie Beard, The Paris News City Council Liaison: Edwin Pickle John Brockman, Vice Chair, called the meeting to order at 3:00 p.m. and welcomed those present. Confirmed a quorum was present. Discuss and possibly take action on response from Defenbaugh & Associates pertaining to demand letter for reports and documentation per the contract. John Brockman told those present that they were provided with a chronological report of the exchange of correspondence between Stephen Grubbs, Mr. Defenbaugh, Mr. Defenbaugh's attorney and Jeff Moore, PEDC's attorney First correspondence was September 8, 2014 at that point in time Defenbaugh declined to attend the joint meeting with the Paris City Council. On September 23, 2014 Stephen Grubbs made his first request for copies of the required written reports, monthly reports that were required through the investigation, as well as, scheduled a meeting in Mr. Defenbaugh's office where Mr. Grubbs and another Board member could have access to the documents and so forth. PEDC Board Meeting Minutes October 27, 2014 Page 2 of 4 Don Wilson stated that there were two prior phone conversations: one where Mr. Defenbaugh said he would attend and the next where he said he wouldn't attend. Shannon Barrentine stated that on September 9, 2014 the Board actually requested the written reports. John Brockman stated that Stephen Grubbs received no response to the September 23, 2014 email. On October 1, 2014 there was a follow -up email from Stephen Grubbs asking for the same documents. On the same day, the PEDC received a letter from Defenbaugh's attorney to Jeff Moore, which basically said they weren't going to provide requested the information and made demand of the $6,882.50 that the PEDC owed Defenbaugh. October 2, 2014 and on October 16, 2014 they responded to us. Don Wilson stated that between the second and the response to the second Stephen Grubbs asked if they would reconsider and they did in fact, verbally, say they would and on October 16, 2014. John Brockman stated that on the first they basically said they weren't going to submit and it was submitted to a law enforcement agency. He also stated that it should be unethical and a violation to the relationship of law enforcement should provide the report. John Brockman stated that this brings us to the next point that we asked for the documents and they refused. They made demand of their payment and what that boils down to, are we ready to make demand of them for the documents we haven't received? That would mainly be the reports that the FBI have or what was turned over the FBI and any other law enforcement agency that they submitted the written reports to during that period. We've asked for the reports on several occasions and they refuse to give them to us. Jeff Moore has composed a letter that he is ready to submit to Defenbaugh. John Brockman stated the PEC has asked for the documents, and the city council has requested them on many occasions. It's my understanding this subject is on the agenda tonight at the city council meeting to possibly further pursue the investigation. This information would be valuable to have. Shannon Barrentine referenced the October 16, 2014 correspondence, the third paragraph down from Burt Barr, Defenbaugh's Attorney states we are also aware that there is material possessed by Paris Economic Development Corporation which was not produced to my client which was relevant to the investigation and you might wish to review those documents as well. Shannon Barrentine stated that's the "elephant in the room ". They are referring to the R3BI records. I do not have them, and never have had them. So, just for the record, I inquired with the person that was in charge of them, Mrs. Sydney Young, R3BI Board Chair, and she sent an email stating the reason why she wasn't going to produce the records was because they don't have anything to do with the PEDC in her legal opinion. For the record, as far as I know, Defenbaugh has everything pertaining to the investigation that I had in my possession. John Brockman stated that we gave him everything in our possession. Shannon Barrentine stated that the innuendo is that I'm hiding something and I'm not. David Turner stated that he can assure you he (Jeff Moore) is charging the PEDC $1,500 dollars to produce the letter. It seems to me that we are spending a lot of money on Jeff Moore if the PEDC Board Meeting Minutes October 27, 2014 Page 3 of 4 city wants to pay let them pay. We should pay Defenbaugh what we owe him ($6,882.50) I would object to filing a lawsuit for the documents. The PEDC needs to have "clean hands." If we haven't paid Mr. Defenbaugh he is going to say is I'm not giving you the documents because you haven't paid me. So we need to pay Mr. Defenbaugh so that him not giving us the documents is the only issue. John Brockman stated we already told him we would give him the money if he gave us the documents. David Turner stated that he understands that, he would be against filing a lawsuit against Mr. Defenbaugh if the PEDC is going to file a lawsuit. Don Wilson stated that Mr. Defenbaugh has a contract with us (PEDC). David Turner stated that you are going to raise the lawsuit and make Jeff Moore a lot of money if you don't pay Mr. Defenbaugh. John Brockman stated that what if we send Mr. Defenbaugh the check along with the letter from Jeff Moore? David Turner stated that was fine with him. John Brockman stated that they said that a month ago at the council meeting. Don Wilson stated that Mrs. Lancaster has asked over and over for the documents repeatedly. David Turner stated let the city do it. This is not something we need to do. John Brockman asked, Edwin Pickle if the City Council was looking to further the investigation? David Turner stated if the city wants to file a lawsuit then let them. John Brockman stated that the contract is with PEDC. David Turner stated that we work for them and they can enforce it in our name. Don Wilson stated he disagrees with that. I think you are talking about Jeff Moore being involved. The PEDC is trying to do this correctly with Mr. Defenbaugh. The city won't let us use the city attorney. If we take this through I want an attorney. David Turner stated he does too, let the city do it. Don Wilson stated that we are trying to hire one right now but this is on the table. David Turner stated that so what's going to happen if we aren't able to do anything in the next 30 days? It's still going to be there. He added that Stephanie Harris, Assistant City Attorney, is a very competent lawyer. We're not spending our money. This is going to cause more distress in the community. John Brockman stated that the PEDC Board tried to drop this at the joint meeting with the city council a month ago. The PEDC Board to send it to the council and not pursue it and you David Turner voted against that. David Turner stated that I want it over with, I'd rather spend the money on bringing jobs here. If the city wants to do it fine, let them do it. Let's get out of it. Rebecca Clifford stated that she voted no, too. She didn't think it was PEDC's right to tell the council what to do with it. The city makes their own decisions. We are under the control of the council. Don Wilson stated that Rebecca Clifford changed since she signed that contract. Rebecca Clifford responded no he was talking about the vote a month ago whether to do away with it or keep the investigation going. The city is capable of making their own decisions. PEDC Board Meeting Minutes October 27, 2014 Page 4 of 4 Rebecca Clifford stated that she did sign the contract but I did it under the instruction of the Board which we agreed to sign it to do the investigation. I didn't do it all on my own, my vote is just one vote. Don Wilson stated that you signed the contract. David Turner stated that everybody voted to sign that contract. I voted to sign it, she voted to sign it, so did Vicki Ballard and Mr. Grubbs. I'm sick of hearing about who signed the contract, that doesn't have anything to do with anything other than you going after Mrs. Clifford. I'm sick of it. Don Wilson stated that David Turner can get sick all he wants she signed the contract against the advice of the city attorney. David Turner stated that he didn't care. She, Rebecca Clifford, did what the Board told her to do. You weren't here so quit complaining about it. Don Wilson stated I'm not going to quit complaining. David Turner stated don't complain, you want to complain, complain to me, because I'm the one that authorized it. Don Wilson stated that there is no indemnification clause in the contract. David Turner stated so what? John Brockman said lets have some order, let's get back on track. We have the one issue to discuss here and that's whether we want to pursue with the Defenbaugh letter from Jeff Moore and, do we have any action to take any motions with regard to that? Don Wilson made a motion to send out the letter without payment; seconded by John Brockman. Motion died due to tie vote of 2 - 2. Don Wilson and John Brockman voted for the motion and David Turner and Rebecca Clifford voting against the motion. David Turner made a motion to adjourn 3:21 p.m.; seconded by Don Wilson. Motion Carried 4 -0. Respectfully submitted, Chassidi Taylor Administrative Assistant Paris EDC