A.G. Gancarski
Justice was delayed for an important member of Jacksonville’s city government. But on Monday, it was finally delivered, as one of the most honorable people in City Hall was cleared of what were ultimately spurious charges.
Last year, a report from the Jacksonville City Council auditor’s office implied Kerri Stewart, the chief of staff for Mayor Lenny Curry, had acted improperly years ago in a previous role with the city.
Stewart was head of the Neighborhoods department under the John Peyton administration, when a city contract was facilitated for consulting services from a company (Infinity Global Solutions) that she went on to work for.
Local media raised a ruckus about it at the time. One local outlet called it a “dubious” deal, predicated on a “no-bid contract” and the city had nothing to show for its million-dollar deal.
Meanwhile, at least one Republican council member wondered privately if there was substance to the wrongdoing, even going so far as to muse about Stewart potentially needing to resign her position.
However, after due process, the city’s ethics director concluded Stewart had done nothing wrong.
In an email to Florida Politics, Ethics Director Carla Miller summed up the current state of the case.
“This recommendation was reviewed by the Ethics Commission last night; the case was dismissed,” Miller wrote, adding that parallel cases were dismissed against two other parties: Wight Gregor and Mayor Lenny Curry.
Miller added other insights, noting “Stewart followed the procurement process that was in effect at the time.”
As well, those who wondered about the lack of clarity in the Council Auditor’s report might find this discussion of process interesting.
“I have been told that the Council Auditor’s report did not involve taking any statements from any of the interested parties,” Miller noted.
“That is typically how they do it, though — paper audits. Whereas, the IG’s office takes sworn statements.”
Miller offered a longer statement, in which she summed up the scope of the initial complaint.
“The audit issues revolved around the city’s purchase of consulting services (through a purchase order and contract) from Agency Approval & Development (now known as Infinity Global Solutions and hereinafter referred to as IGS) and the involvement of 2 City employees, Wight Gregor and Kerri Stewart in that purchase order/contract. The time period of the IGS purchase order/contract ran from March, 2007 through September 30, 2012. The total purchase order/contract with IGS went from a purchase order in March, 2007 for $85,000 to a contract with amendments that grew to $953,000. The contract ended on September 30, 2012 and the final payment was made to IGS on October 23, 2012, roughly 4 years ago,” Miller wrote.
The charge: “that Kerri Stewart and Wight Gregor had substantial involvement in the purchase order/contract with IGS and subsequently went to work with IGS (Kerri Stewart as Senior Vice President and Wight Gregor had IGS as a client) after they left City employment (Kerri Stewart on 9/3/2011 and Wight Gregor on 10/11/2011). To be clear, all funds expended were approved through the City’s procurement process.”
If this had been valid, Stewart and Gregor would have been on the hook for a panoply of charges, including misuse of position, soliciting future employment or compensation, and post-employment restrictions.
However, Miller wrote, it was not valid.
For starters, there was no evidence Stewart or Gregor were involved in the purchase order. Even if they had been, Miller writes, the two-year statute of limitations had elapsed. And even if it hadn’t elapsed, Miller notes the initial purchase order in 2007 preceded the ethics code of 2008.
“This is an old matter,” Miller notes, “happening between 2007 and 2012. The Commission does not have jurisdiction in these cases because of the statute of limitations. Therefore, the recommendation of the Ethics Director is that these cases should be dismissed.”
Miller also advises that the Office of Inspector General is more appropriate for reviews such as this.
Stewart’s attorney, former Jacksonville City Council President Jack Webb, notes the procurement process was followed to the letter of the law, and that the document authorizing the contract with IGS was signed by a deputy chief administrative officer to Mayor Peyton. Moreover, three other city officials signed off on contract extensions.
Thus, “the question of whether Ms. Stewart’s independence or judgement was compromised is implausible at best,” Webb wrote in his formal statement addressing the ethics inquiry.
As well, Webb notes that upon leaving city employment, she sought legal advice from the office of general counsel. Stewart adhered to the guidelines put forth in the letter, Webb wrote, avoiding any conflicts of interest such as representing IGS in a “conflict” with the city, or taking a role in the project in question.
Webb also rejected the contention that funds were somehow illegally diverted from the capital project accounts in question for consulting from IGS. Webb also added that the district councilman, Reggie Brown, had “full knowledge and total involvement” in the use of the funds, including monthly updates.
The “displaced ethical scrutiny” of this audit, as Webb put it, came later.
We talked to Stewart Tuesday afternoon, who appreciated the “vindication” of how this matter was resolved after a “horrendous six months.”
“I knew all along that I had done nothing wrong,” Stewart said, “so I wasn’t worried.”
For Stewart, who continued to work through the entire process, including through high-profile and high-intensity tasks as helping to finalize the current budget and helping the city to move forward toward the pension reform referendum, this period was a test.
However, she said, “I know better than to let other people’s political agendas distract from the mayor’s agenda.”
