To stave off
a last-minute problem with a plan for Peachtree City to pay off debt owed
on Falcon Field, the Peachtree City Airport Authority called an emergency
meeting for late Tuesday night to ratify a special agreement with Peachtree
City.
But the Peachtree
City Council held no special meeting to discuss the contract before it
was signed Wednesday morning just after 6 a.m. by Mayor Steve Brown. Instead
council members were briefed on the issue via telephone and in person,
Brown said.
Attorneys for
Kilpatrick and Stockton, who represented the city for the bond issue to
raise the funds to pay off the authority's debt, told city officials Brown
could sign the document since council had already approved the bond resolution
and a bond ordinance at its last regular meeting, said City Manager Jim
Basinger.
The legal opinion
from Earl Taylor and Ken Pollock of the Kilpatrick and Stockton law firm
said that "council, in effect, had approved what was in that contract,"
Basinger explained.
Airport Manager
Jim Savage notified local newspapers Tuesday afternoon about the airport
authority's called meeting for 9 p.m. later that night as required by
Georgia law. And though it was determined council didn't need to meet
about the issue, Brown said he wanted to make sure the council members
were all on the same page about the contract.
Brown said
each council member was okay with having the mayor sign the contract,
noting that Annie McMenamin preferred to have all of the City Council
members sign the agreement.
"But there
just wasn't time for that," Brown said.
The new agreement
was necessary because without it, the status of the city's bond sale was
in jeopardy due to the questions about the validity of the current contract,
explained Authority Chairwoman Catherine Nelmes.
The rush was
due to the fact that the bond issue was being closed on Wednesday morning,
so the agreement had to be enacted before then, Brown said.
In his conversations
with councilmen Murray Weed, Steve Rapson and Dan Tennant, Brown said
he never polled them in seeking their approval for him to sign the new
contract.
The contract
Brown signed Wednesday morning included one paragraph added by the airport
authority the night before. Brown said he was unable to run that information
"And that
was unfortunate," the mayor said.
The paragraph
added to the contract at the authority's request states that the document
doesn't alter or affect the previous contract between the city and the
authority, which was signed by Mayor Bob Lenox last June. It's that Lenox-signed
contract that has been called into question by Brown and several other
council members who allege Lenox was acting without council's consent
when he signed it July 31 because of an added paragraph that was not in
the draft given to council for consideration.
Lenox and City
Attorney Rick Lindsey contend the changes were e-mailed to all council
members before the meeting. City Clerk Jane Miller has confirmed that
the change was included in copies provided to each council member at the
June 7 meeting when council unanimously voted to authorize Lenox to sign
the contract.
The additional
paragraph does not hurt the position of Brown and council members Steve
Rapson and Dan Tennant that the contract signed by Lenox is invalid, Brown
said.
The original
draft of the new agreement which was authored by the attorneys representing
the city on the bond issue, wasn't received at City Hall until after 5
p.m. Tuesday, Brown said.
"We had
such huge time constraints," Brown said.
The authority
approved the agreement at its 9 p.m. meeting Tuesday with the added paragraph.
That agreement
has been called into question by Brown and several council members who
claim Lenox signed an agreement with a change that should have been brought
to the council's attention after council voted to give him authorization
to sign the contract.
That agreement
spells out how much the authority will receive annually from the city's
hotel motel tax revenues in return for operating Falcon Field.
The hurried
approval of the new agreement
The city has
issued a total of $1.62 million in bonds to pay off the authority's current
debt of $1.51 million. That concept was ratified by voters who approved
a referendum on the matter in the November general election.
"I didn't
want to do anything to jeopardize them (the airport authority) not getting
the money," Brown said. "... The document is fairly innocuous.
There's really nothing to it."
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