Cherokee Gives More Money To Complete Ball Ground Recycling Audit

An already cash-strapped Cherokee County had to cough up an additional $169,000 to allow a Newnan-based accounting firm to complete its forensic audit of the failed Ball Ground Recycling venture.

The county Board of Commissioners on Tuesday approved modifying its agreement with McClendon & Associates to change the not-to-exceed cap to $269,000 for the firm to complete its work.

The board also approved an additional request for lead accountant Rhonda McClendon to retain Newnan attorney George Rosenzweig to ensure she's on the right track in her investigation.

The attorney requested an amount not to exceed $50,000 for his services, which includes a $25,000 retainer.  

County Attorney Angela Davis said McClendon informed her the additional $169,000 will be more than enough to complete the forensic audit, and is confident will not come back and ask the county for more money.

"It’s a complex and difficult situation because our interest as the county has been to be very distant and removed from this process," she said, adding the county is trusting McClendon's word that this latest increase will be sufficient to perform the rest of the work. 

Davis added Rosenzweig will be used to help guide McClendon in her investigation. 

The county's original contract with the law firm capped the cost at $75,000, and authorized County Manager Jerry Cooper to approve an additional $25,000 if needed. 

The county had already blown through the initial $100,000 on the audit. 

County Commissioner Harry Johnston said he was "troubled" by the more than three fold increase in the cost.

"Yet, we’re sort of between a rock and hard place," he said. 

The forensic audit was approved late last year at the request of a Cherokee County grand jury that launched an investigation into the controversial deal. 

The commission in 2006 created the Resource Recovery Development Authority and backed up to $18 million in bonds, which were used to relocate the former Cherokee Recycling to land along Highway 5 just south of Ball Ground.

The agreement stipulated Ball Ground Recycling operator Jimmy Bobo was to make payments of the bond into an escrow account, but the county learned in late 2011 Bobo hadn't been making the payments.

That forced the county to pick up the tab, which it will still be responsible for if it does not find a new operator for the site.

Ball Ground Recycling in late May filed for Chapter 11 bankruptcy, and the company was subsequently forced to remove itself from the property.

The company was eventually dismissed from bankruptcy court, giving the county the green light to go after the company and Bobo to recover money from the failed deal. 

In other business, the county accepted a buyer's offer to purchase the former Anna Crawford Children's Center home at 824 Santa Fe Trail near Woodstock for $75,000 and the payment of 5 percent real estate commission. 

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