Jeff Burlew | Tallahassee Democrat

When talk of a city-owned broadband internet utility surfaced at the same time an out-of-town fiber-optic firm eyed Tallahassee as a potential new market, lobbyists, public relations people and industry reps streamed into action.

The debate during City Commission meetings last month was contentious enough. But there was intrigue behind the curtain. And by the time the dust settled, the commission reversed course on plans to explore creation of a new utility, something MetroNet, an Indiana-based company still considering coming to town, opposed.

The players included Max Herrle, a local lobbyist who sought MetroNet as a client, Terrie Ard, president of the influential PR firm Moore, Inc., which worked with MetroNet, and Stefanie Bowden, a governmental affairs employee with cable and internet giant Comcast.

The drama that unfolded came after years of high-profile controversy involving lobbyists and consultants at City Hall. Ethics watchdogs say it highlights the kind of murky dealings that undermine confidence in the city's ability to police lobbying within its own halls.

Months before the broadband debate took center stage, a conversation between Herrle and MetroNet set off alarm bells at City Hall, though exactly what happened is now disputed. City officials said they were told Herrle "misrepresented" himself on the call, but both Herrle and the company said nothing "inappropriate" happened.

Meanwhile, the Moore firm began working with MetroNet in hopes the company would set up shop in Tallahassee. Ard took part in meetings with commissioners, MetroNet execs and economic-development staff and emailed talking points to a commissioner. But she said she wasn't paid for the work and doesn't consider herself a lobbyist.

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Comcast's Bowden met with Matlow in the midst of the debate. And while she had registered as a Comcast lobbyist in previous years with the city, she wasn’t registered when she met with Matlow. Records show she registered the following day.

Matlow proposed the city look into launching its own fiber-optic broadband network on Dec. 5, during his second meeting as commissioner. He cited success seen in Chattanooga, Tennessee, where the city offers retail broadband at super-fast speeds and competitive prices while reaping millions in revenue.

JOSH MORGAN/ Staff

He appeared to have a slim majority of the commission behind him. On March 6, Matlow and Commissioners Elaine Bryant and Dianne Williams-Cox voted 3-2 in favor of the request for proposals on a feasibility study. But pressure mounted from the business community, which didn't want to see government competing with the private sector.

Bryant announced March 22 she wanted to reconsider her vote, prompting commissioners on March 27 to rescind the RFP vote and opt instead to have a city-staffed working group study broadband but not a new utility.

The behind-the-scenes consulting blitz came at the same time ethics advocates have been asking for tighter restrictions on lobbyists at City Hall. Ben Wilcox, a member of Citizens for Ethics Reform, said the city needs a strong and enforceable ordinance that allows the public to know who is trying to shape public policy and why.

“We have rules that apply to lobbying,” Wilcox said. “The purpose of the rules is to allow the public to see who is trying to exert influence on public policy. And it seems like people are playing kind of fast and loose with those lobbying rules.”

Tori Schneider/Tallahassee Democrat

Matlow declined to comment for this article. His office initially agreed to an interview but canceled, issuing a statement instead.

“We condemn in the strongest possible terms any attempt to improperly influence the commission and prevent us from enacting public policy in the interest of the community," he said.

City says lobbying call led to complaint

MetroNet, which is based in Evansville, Indiana, and operates in more than 50 markets, has been considering moving into Tallahassee since last summer. Were it to come to town, it would lay down fiber optic lines and offer retail broadband service, competing with Comcast and others.

Months after it began talks with city staff, Herrle, a lobbyist known for representing restaurants and bars, reached out to the company to see if it would be interested in hiring him. But after a phone call between Herrle and MetroNet executives, Wayne Tedder, assistant city manager, said he got a phone call from the company.

Hali Tauxe/Democrat

“I had a representative from MetroNet reach out to me and indicate that he was concerned that if he didn’t hire Max Herrle that it would impact his ability to come to Tallahassee,” Tedder said. “What I indicated to MetroNet was that relationships with commissioners had no impact with their ability to come to Tallahassee.”

Tedder said he explained that a commission vote wasn’t necessary for MetroNet to begin operations and that permit approvals happened at the staff level. He reported the conversation to City Manager Reese Goad, who asked him to tell Matlow.

“I was concerned that the lobbyist was misrepresenting Commissioner Matlow,” Goad said. “And (soon after) Commissioner Matlow thanked me for bringing it to his attention and he confirmed that he followed up with MetroNet to clarify that that was not the case and that the lobbyist had overstated his relationship.”

Herrle denied insinuating any such thing. He said he emailed MetroNet in early December to gauge its interest in hiring a consultant and they agreed to talk. He and the company signed a nondisclosure agreement as part of the interview process, Herrle said. The company ended up not hiring him.

MetroNet denies 'inappropriate' ask

MetroNet declined to discuss the phone calls in detail. The company issued a statement saying it often gets calls from potential vendors as it expands into new markets.

“We have received phone calls from potential vendors in Florida including one call from Max Herrle,” said Keith Leonhardt, vice president of communications and market development, in an email. "We did not hire Mr. Herrle nor do we have plans to do so.”

Courtesy of Max Herrle

The company amended its comments later, after the Democrat contacted Herrle about the phone call and Herrle contacted MetroNet.

“At no time did Mr. Herrle offer or imply to offer any service that would be considered inappropriate," Leonhardt said in the amended statement.

Herrle went on to register as a lobbyist for Magellan Advisors, which produces the very studies on municipal-run broadband that MetroNet didn’t want commissioners to approve. On Feb. 11, Herrle emailed Matlow a link to several broadband feasibility studies written by Magellan.

Matlow and Herrle have connections beyond a $250 contribution the lobbyist gave the commissioner during his campaign last year. In the closing days of the election, Herrle was an apparent force behind a commercial attacking Matlow’s opponent, Lisa Brown.

On Oct. 9, Herrle's political committee, North Florida Leadership Fund PC, got a $12,500 check from the Green Advocacy Project, based in Palo Alto, California. On Oct. 22, Herrle's committee gave $10,500 to another committee, Florida Young Democrats, based in Port St. Lucie. The next day, Florida Young Democrats paid Herrle $10,000. A few days later, the anti-Brown commercial, paid for by Florida Young Democrats, showed up on YouTube.

PR firm sends talking points to Bryant

Moore, the public relations firm whose clients include Ford Motor Company and the Florida Prepaid College Board, started working with MetroNet in November, Ard said. Moore facilitated key meetings with business leaders and city officials on behalf of MetroNet.

“We’re doing this under the lens of business development,” Ard said. “As a business leader here in our community ... I have a passion and an interest in bringing new companies into our community.”

Courtesy of Moore Communications Group

Ard accompanied MetroNet executives during meetings with commissioners and staff from the Office of Economic Vitality. She said the purpose was to introduce company officials to commissioners and educate them that MetroNet was interested in coming to Tallahassee as long as the city didn’t pursue its own broadband utility.

The meetings were held March 25, just two days before the City Commission vote to reconsider the feasibility study. A couple of hours before the meeting, she sent an email to Bryant with “Talking points” in the subject line. She said she sent the information at Bryant’s request, something the commissioner confirmed.

She wrote in the email that MetroNet could bring more than 20 initial jobs to town and invest about $70 million in local fiber. She noted fiber-optic technology was available to fewer than 20 percent of the country and MetroNet’s arrival would be a “game changer” in business recruitment efforts and creating a more connected community.

Pro and con:

Ard, in her email to Bryant, also warned that if the city pursued its own broadband utility, MetroNet would go elsewhere.

“The city of Tallahassee should not invest money in a feasibility study or getting into the business of a municipal broadband utility when we have private industry providing this service already and others interested in moving into the market,” she wrote. “MetroNet will not want to compete in a market where a municipality is trying to do this service.”

Company says it doesn't lobby

Ard said that while Moore is working with MetroNet, it is not under contract with the firm and has not and will not be paid for its work to date. She said Moore is hopeful the company will hire Moore as its “agency of record” if it comes to Tallahassee.

“It’s an understanding that they are looking at Tallahassee for their possible expansion and at that time, they will be looking for a communications partner,” she said. “And this is business development engagement for us. It’s helping to introduce them and be a connector to key business leaders and city officials.”

Ard said no one at Moore lobbies the government.

“We are a communications marketing digital firm,” she said. “We are not a lobbying firm and no one here is a lobbyist nor have they ever been. The bottom line is we do not do lobbying.”

Bryant said she asked Ard to prepare notes from their meeting as part of her effort to gather all information she could. But she said she had already decided she was against a new utility by that point.

“I had already made up my mind,” Bryant said. “That had no influence on me.”

Bryant’s aide, Angela Whitaker, confirmed in a March 25 email to OEV staff that Bryant could meet with Ard and MetroNet. Whitaker also linked to the city’s website on lobbying.

“Please review the city of Tallahassee’s registration of lobbyists process in case it is applicable to this organization,” Whitaker wrote.

Comcast lobbyist wasn't registered

Bowden met with Commissioner Matlow on March 13. In an interview last month, Matlow said Bowden gave a broad overview of Comcast’s efforts in the broadband field.

“She was largely, I guess, trying to get a sense of what we were proposing and I explained to her getting a better understanding of the future of connectivity,” Matlow said in an interview last month. “It was pretty high level. We didn’t get into the specifics or details.”

UWBB

Matlow said Bowden “didn’t directly make a statement on the actual issue.” But he added, “I had concerns that people are lobbying on this who may not be registered.”

Bowden registered with the city as a Comcast lobbyist in 2017 and last year. But she didn’t register this year until March 14, a day after the Matlow meeting.

Mindy Kramer, vice president of public relations for Comcast’s Florida region, said Bowden met with Matlow in part because he is a new commissioner. She added that the only commissioner Bowden met with was Matlow.

“It is part of (Bowden’s) role to introduce herself to local officials, educate them about our business, our programs and our network capabilities,” Kramer said in an email.

Lobbying lines get 'blurry'

City ordinance defines a lobbyist as someone "who is employed and receives payment, or who contracts for economic consideration, for the purpose of lobbying.” It further defines a lobbyist as one "who is principally employed for governmental affairs by another person or governmental entity" to lobby for that person or entity.

The ordinance requires lobbyists to register annually and file quarterly compensation reports. Under the ordinance, the city’s ethics officer is responsible for monitoring lobbyists for compliance.

Back story: Citizens group wants more Ethics Board oversight of city lobbyists

City records show not a single complaint involving a lobbyist has been filed with the Ethics Board since it began meeting in 2015. However, the city has had plenty of trouble with lobbyists and consultants.

The Ethics Commission also found probable cause in January that former Mayor Andrew Gillum accepted illegal gifts during trips to New York City and Costa Rica with Corey. Gillum is contesting the charges, and a final hearing is set for next week.

Tallahassee Democrat

In December, Commissioner Scott Maddox and Paige Carter-Smith were indicted over an alleged bribery ring run through their Governance consulting firm. Carter-Smith and others were hired by Uber and Yellow Cab in 2015 as the city worked on a vehicle-for-hire ordinance, though they didn't register as lobbyists.

Wilcox, one of the ethics advocates, said a fine line separates consulting from lobbying.

“I think it’s very blurry,” he said. “In an ideal world, people who are trying to influence public policy would register to lobby. The public needs to be able to see what are now unseen forces that are shaping public policy."