WILLIAM'BILL" EDDINS

STATE ATTORNEY

P.O. Box 12726

Pensacola, FL 32591 Telephone: (850) 595-4200 Website: http://saol.co.escambia.fl.us

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FIRST JUDICIAL CIRCUIT OF FLORIDA

March 7,2013

Ms. Maren Deweese 2435 Semoran Dr. Pensacola, Florida 32503

RE:

City of Pensacola

Dear Ms. Deweese:

You have previously provided this office with a copy of a letter dated November 14,2012, to David Lister. Mr. Lister is a Certified Public Accountant with Saltmarsh, Cleveland and Gund, who is performing a financial audit of the City of Pensacola. In your letter, you make numerous allegations of improper behavior by officials with the City of Pensacola and particularly Mayor Ashton Hayward.
As a result of your letter, this office has conducted a thorough review of these allegations. This review consisted of an examination of numerous documents provided both by you as well as the City of Pensacola. In addition, we have interviewed numerous witnesses. These witnesses include City employees as well as private individuals. Based upon our review, we have determined that there is insufficient evidence to establish that any crime was committed.
In your complaint, you have made a wide range of allegations involving city government. While we have reviewed each of your allegations, the most serious allege that Mayor Hayward received improper benefits as a result of his position and that he improperly steered City contracts to specific individuals or businesses.

Underthe new City Charter, the Mayor is vested with the authorityto exercise the executive powers of the City. Further, he supervises all departments of city government. He is authorized to act in the best interest of the City. In awarding bids for goods or services, contracts are to be awarded to the lowest and best responsible bidder. In making those decisions, City officials consider whether the contract is in the best interest of the City. In reviewing the contracts referred to in your complaint, each appears to have been within the authority of either the Mayor or appropriate City officials to enter into and were determined to be in the best interest of the City. There is no evidence that any individual received any

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inappropriate benefit as a result of these contracts. Of particular concern are your allegations regarding Servislst Bank. You have raised a concern that Mayor Hayward received favorable treatment on a mortgage in return for the City of Pensacola placing City funds in that bank. There is no evidence that this occurred. According to Dick Barker, the investment officer for the City, bids were put out to local public depositories for the investment of City funds. In each instance, Servislst Bank provided the best rate for the type of investment the City was seeking. Barker stated that he never spoke to the Mayor regarding this investment and was unaware of any banking relationship the Mayor had with Servislst Bank.
A concern has also been raised regarding the use of private e-mail accounts and either the Florida Sunshine or Public Records laws. While it is not a violation to use private e-mail accounts, those records must be maintained in accordance with the public records law. This office has previously discouraged the use of private e-mail accounts by governmental agencies. In this situation, it appears that copies of these e-mails were either maintained by the City orwere of such a transitory nature that they did not need to be maintained. We have discouraged the City from continuing to use private e-mail accounts to conduct City business.

We have reviewed each of your allegations and have determined that there is insufficient evidence to establish that any crime has occurred. lf additional information is discovered in the future. we will review it at that time.
Sincerely,

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Gregory A. Marcille Chief Assistant State Attorney

cc:

GAM/klm City Attorney Jinr Messer