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Authority approves $150,000 payment to Kidwell; declines undocumented expenses and directs remainder to construction fund
Summary
After a lengthy review, the board authorized $150,000 to Kidwell and Company for services tied to the bond measure, declined to pay $50,000 in undocumented expenses, and directed the trustee to deposit any excess into the construction fund; board members said the city may separately resolve other claims.
The Crossville Sports Authority voted to pay Kidwell and Company $150,000 for services related to the bond closing and to withhold payment of additional, undocumented expense claims submitted by the firm. The board also instructed the trustee to deposit any unused portion of the $600,000 referenced in closing documents into the construction fund.
The dispute arose after the authority discovered an attachment in the closing packet that requested additional payments beyond the $150,000 fee specified in the authority’s contract. Counsel and accounting advisers told the board that the contractor’s expense submissions lacked receipts and hourly detail. “There should be some sort of documentation to validate that,” counsel said during the meeting, noting that a review of the submitted materials did not produce standard out‑of‑pocket receipts or billings for the additional amounts.
Attorney and accounting advisors told the board that under tax and accounting norms, time spent reviewing documents without an out‑of‑pocket expense does not generally constitute a reimbursable expense absent contractor billing detail. Board members and counsel repeatedly emphasized that the authority’s decision would not bind the City of Crossville, which could pursue its own contractual claims or payments.
After extended discussion and motions on the record, the authority approved payment of $150,000 for services rendered and authorized the trustee to deposit the balance of disputed funds into the construction account; the board explicitly declined to pay the $50,000 in undocumented “expenses” and dismissed a separate $600,000 payment request that had been included in the closing materials.
Bond counsel said the authority’s decision would require amending the closing memorandum and certain bond‑issue disclosures filed with regulators and on the MSRB (EMMA) to reflect the corrected cost‑of‑issuance figures. Counsel added that the city retained the right to resolve any claims between Kidwell and Company and the City of Crossville under its separate contract.
The motion passed on an affirmative voice vote. Board members asked staff and counsel to prepare amended closing documents and to ensure any future payment requests include invoices or receipts sufficient to substantiate expense claims.
