Fernandina Beach City Commission approves 4 library-related resolutions; lease agreement returns to Nassau BOCC with city modification

Submitted by Suanne Z. Thamm

Reporter – News Analyst

Mayor Pelican and Manager Gerrity confer before the meeting begins.
Mayor Pelican and Manager Gerrity confer before the meeting begins.

Following an hour and a half of sometime contentious and repetitive discussion at their regular meeting on November 19, 2013, the Fernandina Beach City Commission (FBCC) approved four resolutions securing funds and cooperation of both the Friends of the Library (FOL) and the Nassau County Board of County Commissioners (BOCC), authorizing a 20-year lease for a library facility in the current Fernandina Beach Branch location, and approving a library construction bid with three bid alternates in the amount of $1,460,377 to Marand Builders, Inc.  The FBCC directed City Manager Joe Gerrity to withhold execution of the building contract until the Nassau BOCC approves the interlocal lease agreement that was modified to meet FBCC concerns regarding maintenance.  Gerrity reported that Marand Builders has agreed to extend the bid award deadline to December 22, which will allow the county time to address the agreements during their first December meeting.

Library supporters begin arriving at FBCC meeting.
Library supporters begin arriving at FBCC meeting.

Many library supporters attended the meeting in support of the proposed resolutions, language of which had been formalized by City Attorney Tammi Bach and County Attorney David Hallman to incorporate the requirements of their respective governing bodies.  While the attorneys may have reached agreement, Commissioner Pat Gass and Mayor Sarah Pelican had significant problems with specific wording in three of the four resolutions.  Despite lengthy explanations from Bach, other commissioners, and audience members, neither Gass nor Pelican appeared comfortable voting for the interlocal agreement with the county (Resolution 2013-165) or the library lease agreement with the county (Resolution 2013-166).  However, when the vote was called, only Gass voted to oppose the resolutions.

Resolution 2013-164:  To enter into an agreement with the Friends of the Library to provide funding beyond the $1.2M city/county contributions

DSCN1413The discussion got off to a rocky start with the FBCC’s consideration of Resolution 2013-164, approving an agreement with the Friends of the Nassau County Library to accept their contribution of $400K toward the renovation and expansion of the Fernandina Beach Branch of the Nassau County Library.  Gass, who indicated that she was “all for it,” went on to express her desire to “tweak” the agreement by removing the descriptor–Fernandina Beach Branch of the Nassau County Library.  She read a lengthy definition of the word “library” and informed commissioners and the public that the city owns a building, not a library.  Other commissioners reminded Gass that FOL was contributing money for a specific purpose:  to renovate and expand a building that houses a library.  Dee Torre, FOL Vice President, indicated that FOL was not raising funds to renovate and expand a city building generically, but for a specific purpose.

DSCN1418Both Commissioner Arlene Filkoff and Attorney Bach advised Gass that there was nothing in the proposed resolution, absent the descriptor, that binds the city to continue using the building for a library.  Boner added that while this back-and-forth discussion could go on forever, he believed that “Fernandina Beach Branch” names the building and he wanted it left in the resolution.  Vice Mayor Charlie Corbett chimed in saying, “If it’s irrelevant, why change it?”

Gass also raised problems with the agreement’s language binding City Manager Gerrity to report regularly to the FOL, claiming that Gerrity would report publicly to the commission and that the FOL could attend those meetings.  She said it “did not sound very nice” to say the City Manager “must” keep the FOL in the loop.  Torre responded that it was important to the FOL Board and their fundraising commitments to do so.  She said she would have a problem if that language were removed.  Gerrity said that both the County and the FOL asked for regular updates and that the language presented no problem.  Filkoff asked Gass why it was a problem to put this commitment in writing.  Gass said that if the City Manager got busy and didn’t make a report, she didn’t want the city to be out of compliance with the contract.  She said to Filkoff, “I understand that you don’t understand this.” Although Gass initially claimed to have other points that she wanted tweaked, she declared, “All right.  I’m done.”

DSCN1395Mayor Pelican expressed her appreciation to the FOL for investing their money in the project but questioned the enforceability of the agreement, citing that both the city and the county have been clear that they will not spend more than $600K each on the project.  Bach said that since the agreement is a contract, it would be enforceable under contract law.

FOL Vice President Dee Torre
FOL Vice President Dee Torre

Commissioners moved into a discussion of possible cost overruns, questioning how costs in excess of the amounts contributed by the city, county and FOL would be paid.  Dee Torre reminded the commissioners that the language of the agreement states that the FOL accepts “the burden of additional Project expenses over $1.4M.”  (Attorney Bach had stressed in introducing this item that this requirement had come from the Friends to the city, not the other way around.) In addition, “the Friends accept the expenses associated with moving/relocating fixtures and furnishings between the existing portion of the library and the newly renovated portion…” The contract language also specifies that any design changes ordered by the City Manager, as Project manager, following the bid award must be agreed to by the FOL, or the city will bear their cost.

Per the agreement, the FOL will deposit $400K in an escrow account within 5 days of the signing of the agreement.  To further reassure commissioners, Torre stated that the FOL has a $200K cushion today and the possibility of a loan down the road, if necessary.

City Manager Joe Gerrity
City Manager Joe Gerrity

City Manager Gerrity asked to address the cost overrun issue.  He said that the proposed design had been “gone over with a fine-toothed comb” by many people, including County Librarian Dawn Bostwick, City Community Development Director Adrienne Burke and himself.  He expressed confidence that design issues had already been addressed adding, “As far as I’m concerned, there will be no change orders.”

When the vote was called, after close to a half-hour of discussion, Commissioner Filkoff moved and Commissioner Boner seconded approval of the motion as presented.  The resolution to accept FOL money passed unanimously.

Resolution 2013-165: An interlocal agreement to commit county funds in the amount of $600K to the library project

Attorney Bach clarifies an item for Mayor Pelican.
Attorney Bach clarifies an item for Mayor Pelican.

The FBCC next tackled the county-signed interlocal agreement between the county and the city.  City Attorney Bach introduced the item indicating that the County had included the 3 bid alternates (technology center, window replacement, sidewalk replacement) in its language.  She said that the county would not escrow the $600K, but agreed to pay 37.5% of each approved invoice up to their total commitment of $600K.  The County also accepted City Manager Joe Gerrity as Project Manager.

DSCN1443Again Commissioner Pat Gass began discussion.  She objected to the county’s inclusion of language (1.6) indicating that their $600K commitment should be considered “rent” for the building and that this contribution would be conditional upon the city’s agreeing to a 20-year lease for the building in a subsequent resolution. She wanted this language replaced with language that would bind the county to the same conditions that exist with the city of Callahan, i.e. that the county would actually pay rent for use of a city building.  “Nassau County has never, ever paid rent to the city… We’ve paid them over $400K over the last 17 years.  They’ve always received [use of the building] for free.  We’ve paid them all these years and now they want to pull this?  It’s time for us to get fair and equal treatment under the law.  We are not supposed to be financing Callahan or Hilliard or Bryceville.  We need to keep our tax dollars home.  This is ridiculous in my opinion.  Are any of you aware of these facts?”  Corbett replied, “Yes.”  Boner said that the conditions between the FB library branch and the others were not comparable.  He reminded Gass that the impetus for the current project was to keep the library activity downtown.

DSCN1440Gass continued badgering Boner for a yes or no answer.  Boner said that he thought the language was reasonable in light of all the efforts over the past 40 years to keep services locally available downtown, whether the courthouse or the library, to promote economic health of the city.  “We don’t want to lose what makes us Fernandina,” he said.   Commissioner Filkoff reinforced this, adding that the county had the option of moving the library operation to another location, but that the FBCC felt it was important to keep it downtown.  She said, “It’s taken 3 years to birth this baby.  It’s the only agreement I’ve seen worked out between the city and the county.”  Filkoff suggested that this was not the time to discuss whether the county should be paying rent for a city building housing county library functions.  Pelican said that she had brought the issue up before and that she felt the issue should be considered.  A frustrated Filkoff said, “When the arguments work for us, it’s ‘our’ library; when they don’t, it’s [the county’s] library.”

DSCN1433Vice Mayor Charlie Corbett, who had patiently listened to the discussion, in response to a question from Gass, said that talks had gone too far to change the basic points now.  “To extend this discussion any further now is not good,” he said.  Gass chuckled and turned to the audience saying, “Taxpayers, I tried.”

Now it was Mayor Pelican’s turn to express her reservations.  She read the portion of the agreement (1.3) laying out the city’s obligation:

“The city of Fernandina Beach commits such funds necessary to complete the Project, including any cost overruns or increases, in Fiscal Year 2013-14 and following years if necessary.  The appropriations shall not be pledged from ad-valorem sources of the City of Fernandina Beach, Florida.”

DSCN1442Pelican feared that such language would commit the city to fund more than $600K.  Attorney Bach and other commissioners tried to explain that this section had to be read in the context of the previously approved resolution that committed the FOL to fund overruns.  But Pelican was not convinced.  A long discussion followed in which various arguments were put forth to try to persuade her that the county would not commit to the agreement absent such wording and that the city was covered by the agreement with the FOL.  The conditions laid out in the agreement were the same ones outlined during a public meeting of the Nassau BOCC held on October 28, 2013, and restated during   their meeting on November 4, 2013. (Click here for details on Nov 4 mtg.)

Only County Commissioner Steve Kelley, brother of city commissioner Pat Gass, voted against the agreement at the November 4 BOCC meeting.  Neither Pelican nor Gass seemed to have had the benefit of listening to the BOCC articulate its reasoning for inserting the specific language into the interlocal agreement.

Local attorney Adam Kaufman explained that the city could articulate its position – that the FOL had agreed to cover cost overruns — in a cover letter without changing the language of the agreement already approved by the county.  He said that inserting a phrase in the agreement currently under discussion could open the entire agreement to renegotiation.  Pelican still appeared unconvinced.

DSCN1350Gass asked Bach if the agreement as proposed was in the best interests of the city.  Bach responded that she could only verify that the agreement constituted a legal and binding contract, but that it went beyond her authority to say that it was in the best interests of the city.  Filkoff rephrased Gass’ question to Bach:  “Does it protect the city’s interests?”  Again Bach said that it was a legal and binding contract, and that the city had recourse against the other party in any such agreement, if terms were not honored.  Boner said, “You have to connect the dots.  This agreement must be read with the previous agreement with the FOL.”  Gass badgered Bach for a yes or no answer as to whether it protected the city’s interests.  Bach misspoke saying “I don’t give legal opinions,” but corrected herself.  “It’s your job to decide if it is in the best interest of the public.”  She added that there were many items that lawyers could bring up that are not spelled out in what is a relatively simple agreement.

After 45 minutes of often repetitious discussion, Filkoff moved and Boner seconded approval of the resolution as written. Before voting to approve, Pelican paused and said things had gone too far to stop but that she still had problems with the language making the city responsible for cost overruns, “as I have said 100 times this evening. But I have to have faith that the FOL will follow through with what they have committed to do, and vote yes.”  When the vote was called, only Gass voted no, stating that it was her belief that it was not in the best interests of the city.

Commissioner Arlene Filkoff
Commissioner Arlene Filkoff

Filkoff added that the agreement would be a “vote of trust” in the city manager, who was designated by both the city and the county as Project Manager.

Resolution 2013-166:  20-year library lease agreement with Nassau County

At 8:15 p.m. the FBCC moved into consideration of the county’s proposed 20-year lease on the building that houses the library.  The $600K county commitment, as per the agreement, stood as forward rent payment for those years.  In the discussions that took place last month during Nassau BOCC meetings, the county acknowledged that with this agreement it would no longer collect the $52K payment for library services from the city, resulting in an annual savings for the city.

DSCN1441Commissioner Boner addressed language on maintenance and repairs. Vice Mayor Charlie Corbett asked to have removed language that gives the city 15 days to make repairs before the county would commence repairs itself and bill the city.  Corbett said, “The rabbit don’t tell the farmer how much lettuce to plant, and the county don’t tell us, their landlord, how to repair our building.  We have already agreed to repair and maintain the building.”  Boner agreed with Corbett and said he would be surprised if the county would have a problem with the change.  Filkoff also agreed, but expressed her concern over the city’s past record in maintenance of the building.

Commissioner Gass said, “I will not be voting for this, and I cannot believe that anyone who was elected under fiscal responsibility would vote for this thing.  This is not a good financial agreement at all… I can’t believe that any of you could vote for it.”

DSCN1248Corbett moved approval with an amended Exhibit A excluding the language he referenced earlier and Boner seconded the motion.

Pelican asked Gass why she believed this was irresponsible.  Gass went on to explain that the county has not been paying rent, as it has in other county library branch locations, and that this would be the only time to address that.  “If we don’t do it now,” Gass said, “it will be over.”

When Interim Clerk Kim Briley called the vote, Filkoff, Boner and Corbett voted yes, Gass voted no, and Pelican voted yes quietly, after a long pause.  The item was approved and will now return to the Nassau BOCC for a vote on the revised agreement.

Resolution 2013-167:  Construction agreement with Marand Builders, Inc. to renovate and expand the existing library building facility in the city

DSCN1444City Attorney Bach advised commissioners that in light of passage of the previous library-related resolutions, this one needed to be amended to include all 3 bid alternates.  The FBCC expressed no issues with that change and within 4 minutes passed the resolution unanimously.  Manager Gerrity indicated that Marand would hold the bid price until December 22, allowing time for the county to approve changes that the city made to the lease agreement.  It was the consensus of the FBCC to withhold execution of the contract until the BOCC approved the change.

Following the vote, Mayor Pelican declared a ten-minute recess.  Library supporters used the break as an opportunity to express their appreciation to those commissioners who remained in the chamber during the break.

Friends of the Library thank Commissioner Filkoff for surrpot.
Friends of the Library thank Commissioner Filkoff for support.

The city meeting may be seen in its entirety on the city’s website, fbfl.us.

Commissioner Boner receives thanks for his support from Sallie McDonald and Marsha Dean Phelts.
Commissioner Boner receives thanks for his support from Sallie McDonald and Marsha Dean Phelts.
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tony crawford
tony crawford (@guest_16212)
10 years ago

Well, I guess some think if you keep throwning road blocks up and trying to revist this issue each time it comes up that it will just go away. It hasn’t to the credit of those who understand the need for this project. Leadership isn’t about saying no and finding fault in issue after issue. Leadership is the skill to move forward and know when to trust and when not to. Leadership takes courage to say yes. I applaud those who, after beating this poor horse to death, had the courage to stand and say that dirty word —- YES

Cheryl Duttweiler
Cheryl Duttweiler(@cbduttcomcast-net)
10 years ago

You are so right, Tony! I am ready to take all the money I donate to various organizations and use it to campaign against those person(s) who have been the greatest hindrance to Fernandina Beach’s progress in the name of fiscal conservativeness since we bought our home in 2002. I hope their attempt at re-elections come around soon. It is truly embarrassing to our City/County and its citizens!

Tom Washburn
Tom Washburn (@guest_16221)
10 years ago

Thank goodness for large mercies. This community wants to go forward with the PUBLIC library in its renovation, bringing it into the 21st Century!