Wednesday, October 15, 2003

Tennant answers some questions

By CAL BEVERLY
Publisher

Peachtree City Councilman Dan Tennant has made himself the point man in trying to calm the troubled waters of the tennis center scandal. He sought a reversal of the city Development Authority’s vote to resign from its management contract overseeing the tennis center and the Fred Brown Amphitheater.
Tennant entered city politics as the consummate outsider, first challenging Group VI president Jim Pace for a spot on the city council in a write-in campaign. Later, Tennant was elected in a three-way race for another spot on the council.
In his Sept. 30 letter to the city and the development authority, Tennant wrote, “Therefore, I respectfully call upon the DAPC to hold a special called meeting as soon as possible to decide whether or not to rescind their previous announcement to terminate their management contract with Peachtree City to operate the aforementioned venues, and whether or not to accept Mr. Christian’s offer to resign.”
The DAPC subsequently did rescind their resignation vote.
I am fascinated with how Tennant has managed to perform a chameleon-like change from outsider to insider-power-broker, I asked him to respond to a few questions. My questions, and Tennant’s answers, are below.
Question: What is your assessment of Executive Director Virgil Christian’s management skills and financial oversight of the tennis center?
Answer: “I have come to know Virgil Christian reasonably well over the past several years. I consider him a friend, and a man of high moral character. We are both Christian men with young children, we like sports, and our wives are friends. I do not think he is a crook, I do not think he is incompetent, and I don’t believe he would do anything knowingly unethical or illegal. Having said that, I do not believe Virgil’s educational background or work experience includes being an expert in finance, but I do think he is a well-liked and respected manager of the tennis center.
“While it is somewhat difficult to separate Virgil the friend from Virgil the executive director of the DAPC, I will try to be as objective and articulate as possible.
“Virgil Christian was selected by the DAPC to be its executive director following Kristi Rapson’s termination of her employment with the authority. The key element for everyone to understand is that Virgil Christian does not report to the city council, the city manager or anyone else at Peachtree City. He reports to a seven-member board appointed by the Peachtree City Council, and that authority is a separate legal entity. It is not my role or function to monitor Virgil’s management skills or financial oversight. That is the job of the DAPC.
“It is my opinion that any member of council, including the mayor, who interjects himself directly into the internal affairs of any other separate legal entity is doing a disservice to the city and to the said separate legal entity, i.e., authority. The primary role any member of council, including the mayor, should play in this relationship, (other than taking a genuine interest and understanding the authority’s job) is to make appointments and in the case of the DAPC, allocate funds from the hotel-motel tax.
“While I have heard the current mayor claim that there are financial irregularities in the financial data and reporting of the DAPC, I have no direct knowledge of it. I am certainly in favor of abiding by the law, and I believe the DAPC and Mr. Christian share that view.
“It is my opinion that if our current mayor would spend one-tenth the time being as concerned with the $27 million dollar budget he and the rest of council oversees as he has on monitoring the DAPC budget and operations, which he does not oversee, we would not have had an 18 percent tax increase levied on PTC residents, which by the way, I voted against.”
Q.: Are you supporting Christian’s continued management of the center and amphitheater? If so, why and on what basis?
A.: “Again, it is not my role to make the determination of who runs the tennis center or amphitheater. I have already explained that. Having said that, if the DAPC board feels that Virgil is the best candidate to run those venues, then he should be retained. If not, they should find someone else who can do a better job.
“I have not made any request to any DAPC authority member to retain Virgil Christian or hire someone else to fulfill his duties. That is not my job.
“I believe Virgil is a well known and highly respected man in the world of tennis, and because of his networking abilities, if DAPC could figure out some way to employ him in some capacity that fits them and him best, everybody benefits.”
Q.: Do you think the DAPC has done a good job of overseeing the financial operations of the two venues? Can you defend the proposition that the DAPC should continue to manage the two venues? If so, please make your case FOR the DAPC.
A.: “Let’s look at the negative side first. We have about $1.5 million in debt, some of which has not been accounted for, from what I understand. In addition, it appears that money may have been borrowed by the DAPC over the years for some degree of operational purposes. From what I know of the law, that is not what should have been done, and I want the law to be obeyed. I do not believe, however, that deliberate fraudulent behavior ever existed. To my knowledge, all the DAPC members from years gone by were ethical, honorable and decent men, who gave a lot of free yet valuable time to the authority. It appears to be much more likely to me that any improper financial accounting was a matter of ignorance or bad judgment. In any case, I am neither an accountant nor an attorney, and cannot make a firm judgment in the matter without having accurate data and sound professional opinion presented to me.
“On the positive side, we have two world-class facilities in our city that we can all take pride in, that operationally have not cost Peachtree City taxpayers a dime, that bring in literally millions of dollars to our community each year in trade and tourism, and that help to keep our property values among the highest in metro Atlanta. I personally do not play tennis, but I am an occasional patron of the amphitheater.
“As of last night, I saw documents which purport that the two venues combined for a net profit of about $36,000 this past fiscal year, which just ended on Sept. 30. If the numbers are correct, the amphitheater made a profit of about $112,000, and the tennis center had a net loss of about $65,000. I believe economic development activity showed a loss to account for the difference. I don’t have the papers in front of me, so I am going on memory from last night here.
“Given that we have first-class, pristine facilities that we can all be proud of, I do not believe a legitimate argument can be made that gross mismanagement of these facilities exists today, as has been argued by the current mayor. That is not to say that some degree of mismanagement never occurred over the past ten years.
“Finally, I have never argued that the management of these two venues can solely be run by the DAPC. In fact, the whole reason I encouraged the DAPC to reconsider their original decision to turn the venues over to the city was to give us all ample time and opportunity to determine the wisest course of action, and the make the most sensible management arrangement. Evidently, there are several options to be explored, and I am happy and relieved the city is not going to take over the venues on Nov. 1 for the reasons stated in my previous letter about the subject.”
Q.: What is your opinion about Christian’s financial package with the DAPC, including the rent-free pro shop and DAPC employees running it?
A.: “This is America. It’s a land where you can dream and take a chance and be handsomely rewarded or fall on your face. I do not begrudge anybody for making a lot of money, if the money was earned honestly. My understanding is that when Virgil was recruited by the DAPC in the early ’90s to build a tennis center at Planterra Ridge, he was given a base salary of around $30,000 with some added incentives, which evidently included his running a pro shop, commissions on lessons, etc. If the authority members at that time agreed to that deal, based on a vision to build a dream facility, I really don’t have a problem with it. It was part of the package that it took to recruit Virgil. An old adage may apply here: You don’t necessarily get what you deserve in life, you get what you negotiate. Of course, it must be legal.
“While I have no firsthand knowledge of the profitability (or lack thereof) of The Trading Post (or whatever the official name is of the pro shop) Virgil has told me he has lost money on the venture in some years. Although the property is indeed city owned, because it is managed by the authority, I don’t have a problem with Virgil’s potential to make a profit. Let’s face it, The Ashland Grille is a privately-owned venture in the same city-owned building, and while they do pay rent, nobody seems to object to a for-profit business operating on city property.
“It’s up to the management of the restaurant to make a profit. The same is true of Virgil’s pro shop. The rent issue is a matter between Virgil (or whoever the owner is) and the DAPC and what was negotiated.
“As far as DAPC employees “running” the pro shop, that is a fair question. I would not be in favor of having any more employees working at the tennis center check-in center where the pro shop is located than otherwise would be necessary with no pro shop. In other words, if the pro shop requires additional staffing than would otherwise be necessary with no pro shop, I think those expenses should be paid for by the owner of the pro shop. I do not know if the Trading Post pays for staffing. Again, this is a matter between the DAPC and the owner of the pro shop, not a matter for council to mandate.”
Q.: What is your opinion of the “commingling” of public and private funds? How big a problem, in dollar terms and in public perception, do you think “commingling” represents?
A.: “I am not in favor of commingling of private and public funds. I have no idea how the day-to-day finances of the pro shop and DAPC revenues work (which is what I assume you are talking about in asking the question) but I would assume there are separate “tills” and accounting procedures in place to prevent any abuse here. It is my understanding that Virgil Christian is not involved in the deposit or accounting of funds. I am in favor of any procedures that are put in place to eliminate commingling of private and public money. I do not think Virgil Christian is dishonest or would commit fraud, but I agree the public perception of how this is handled could be improved. Again, this is a management decision between the DAPC board and the owner of the pro shop, not a matter for council to micro manage.”
Q.: What is your opinion as to whether there might be city ethics ordinance issues involving Tate Godfrey, his position as an officer of Group VI, Group VI’s status as one of DAPC’s major creditors, and Godfrey’s votes, particularly the most recent votes which directly affect the repayment of the debt owed to Group VI and others? I’m referring specifically to city code sections 62-72, 62-81, 62-83 and 62-89. (Just FYI, looks like there’s also a problem with state law, OCGA 36-62-5 (e)(1)(b) and (f), not to mention years of open meetings and open records problems.)
A. “I am always in favor of all affected parties to adhere to the PTC ethics ordinance. I am also a huge proponent of following open meeting and open records laws.
“The contract to build the tennis center expansion was let when Godfrey still worked at Pathways. It is my understanding that Jim Fulton was asked to come back and help with the negotiations with the architect and builder. It is my understanding that Tate Godfrey has abstained on all votes in matters of Group VI where there could be a conflict of interest.
“As far as the recent vote to retain the management of the venues, I personally do not see how that is a conflict of interest. The debt was incurred by the DAPC, the DAPC is ultimately responsible for the debt, and whether or not the DAPC maintains or relieves itself of the management of the tennis center and amphitheater does not change those facts. It is my opinion that while the DAPC is ultimately responsible for its own debt, the city is morally and ethically bound to do whatever we can to see that the debt is paid since the money was used to enhance city owned facilities. Mr. Brown argues that the city has no obligation whatever. Legally, he is right, I guess. Morally, he is wrong.
“I do not fault Godfrey for voting to retain management of the facilities, since it was at my urging that the DAPC reconsidered its previous vote to hand the management of the venues back to the city.”
Q.: If such legal issues are found to actually exist, what is your opinion about what should be the outcome?
A.: “Again, I am always in favor of adhering to our ethics ordinance. If someone feels there has been a violation of the ethics ordinance, he or she should file a complaint and the process that is already set in place to handle potential violations should be followed.”
Q.: Would you object to the Tommy Turner group contracting with the city council, rather than the DAPC, to operate the two venues? Why or why not?
A.: “Whatever the best long-term solution is to efficiently operate the venues, find a way to resolve the debt problem, and ensure the long-term viability of both venues is what I am for. I would not have a problem with the city contracting out with a private organization such as what Turner seems to be proposing, but numerous legal questions need to be answered such as how it would affect alcohol sales, sponsorships, debt repayment, etc. Again, we are far better off taking the time to find the answers to these and many other questions than to sit by idly and watch the authority unexpectedly walk away and have the city run the facilities with a patchwork plan put in place. Time is a friend to those who want the best long-term solutions put in place.”
Q.: Now two strictly political questions of an active candidate: Do you expect to get significant political campaign help from tennis center members (I’m referring to your recent e-mail to tennis center members)? What is the relationship, if any, between your support of the DAPC in recent months and your reelection campaign?
A.: “As hard as this is for many to believe, I simply want to do the right thing. I do not place my role as a city councilman above my role as a husband or father. I have a full time job that is more demanding since the economy has struggled, and I operate a small home based business. I am active in my church and I am a trustee for a private charitable foundation. And once in a while, I like to have a life and play golf or travel.
“Getting reelected to the PTC council is a matter that is important to me because I want to serve average citizens and families effectively, not because it gives me something to do or makes me feel better about myself. I am a competitive person by nature, so I do want to win, but winning a city council election is not nearly as important to me as being an example to my kids to stand up and do the right thing, no matter who the audience is.
“I find it almost amusing that some, including Mr. Brown, have chosen to label me as the DAPC’s friend and savior (my words, not his). The plain truth is that I know very few people at the tennis center, and members of the DAPC are not my personal and social friends. I am standing up for what I believe is the right thing to do.
“Of course, by taking a stand, you expect the support of those whom you defend, so I don’t apologize for seeking the votes of those who believe in me. The other side of the fence is that I incur the wrath of those who think otherwise. That’s life.”
Q.: How would you characterize your September 2003 support base as contrasted against your support base of four years ago? Are they approximately the same, substantially different, or no change? How have you changed in your political thinking and in your political alliances over the course of four years?
A. “My base is still the same. I represent the needs of average PTC families, and I try to do the right thing by them in every vote I make. One thing I have learned over these past four years, is that it is far better to communicate with everyone than to create factions. I have met thousands of people over these past four years, and my sense of overall understanding of issues and problems has increased dramatically. I am better at understanding there are always two sides of every story, and I think I have been a healing process in finding consensus and reaching compromise whenever possible. The only change in my political thinking has been to be more inclusive in reaching out to others for a different point of view. At the same time, I am very strong-willed and am not afraid to take a stand when I think I am right.”
My thoughts on this exchange will be in next week’s paper.


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