Storm clouds over Fernandina Beach Airport

Submitted by Suanne Z. Thamm
Reporter – News Analyst
September 30, 2015 10:52 p.m.

Fernandina Beach Airport
Fernandina Beach Airport

The Fernandina Beach City Commission (FBCC) appears to be at odds with McGill Aviation Corporation yet again. This time, it’s over the award of a contract to second fixed base operator (FBO) at the city’s general aviation airport. During a Special Meeting on September 29, 2015, what looked to be a routine matter of business turned out to be anything but. Instead of voting on a one-page resolution (2015-139) approving negotiated lease terms with Eight Flags Aviation, LLC for a fixed base operation at the Fernandina Beach Municipal Airport, the Fernandina Beach City Commissioners (FBCC) dropped back and punted.

On the advice of City Attorney Tammi Bach, the FBCC opted instead to schedule a hearing at 5:00 p.m. on October 13, 2015 to allow McGill Aviation Corporation to address its concerns over the bid award to Eight Flags Aviation, LLC. Only Commissioner Tim Poynter dissented on the proposed course of action.

The FBCC’s decision to allow McGill to present its concerns at this late date appeared to surprise and upset several audience members, as well as some commissioners. What the public did not know, however, was that John G. McGill, Chairman of McGill Aviation Corporation, had communicated to commissioners via a lengthy email on September 25, 2015 a request for reconsideration of the RFP award to Eight Flags, LLC.   McGill claimed, among other things, that new information that he received since September 18-24, raised questions of bidding irregularities and conflicts of interest.

Brian Echard, Managing Member of 8 Flags Aviation, LLC, expressed his frustrations with the McGill charges to commissioners in a letter dated September 29, 2015. Echard characterized the McGill letter as “the impassioned rants of an admitted sore loser.”

DSCN5552Bach raised several concerns over the propriety of the McGill charges, but suggested to the FBCC that in an abundance of caution, the FBCC accede to McGill’s request to present his case to the commission. Bach said that while a case could be made that time has passed and conditions have not been met for a bid appeal, she believed that allowing McGill to present his case would not hurt the city. Should McGill then decide to take the matter to court, the city’s record of attempts to address McGill’s concerns would stand the city in good stead.

Although frustrated by what appeared to be more delaying tactics to move forward with the RFP award, Echard said he understood the attorney’s position.

Not everyone agreed, however.

Mayor Ed Boner asked Bach what information exactly did McGill claim that he had just received from the city. Bach replied that while she has not yet read them all, McGill had received a thousand pages from the city as part of a public records request. “I don’t know exactly,” she said, “and frankly I think there are details lacking in the request for reconsideration. But I at least want to look at the record.”

Mayor Ed Boner to City Attorney: "Is treating this request as though it has merit in the best interest of the city?"
Mayor Ed Boner to City Attorney: “Is treating this request as though it has merit the safest path for the city?”

Boner asked, “So is treating this request as though it has merit the safest path for the city?”

Bach replied, “That’s my opinion.”

Boner asked if granting McGill’s request would hurt Brian Echard and 8 Flags Aviation in any way. Bach replied, “It delays the process. [Echard’s] already signed the lease. … But we have another step. It isn’t as if we had a property that 8 Flags was ready to occupy. We are still going to be working on construction and financing agreements. … I think we have the time.”

Commissioner Tim Poynter asked Bach if the McGill letter constituted a bid protest, emphasizing that the time for a bid protest has passed. Bach said that McGill had used the term “reconsideration,” not protest. While time for reconsideration for an FBCC action has long passed, according to city commission procedures, she said she wasn’t sure how McGill intended the meaning of the term in his letter.

Sean McGill: "I can't speak for my father."
Sean McGill: “I can’t speak for my father.”

Sean McGill, at the invitation of the FBCC, addressed the commissioners. Sean McGill, who is an officer of McGill Aviation Corporation, said, “I can’t speak for my father. He’s out of town. I actually saw the email probably after you guys did. … I believe … and I feel like I’m walking a tightrope here, because I don’t want to speak for Dad, but he had said that the reconsideration was based on language within the bid document. I don’t know whether Dad has ever seen ‘the official bid protest rules’ that you forwarded to him… I do know that Dad did a public information request a few weeks ago and just got information that might have some bearing.”

Bach told commissioners that she was viewing the request as an administrative appeals process. She said that she could argue moving forward to approve the contract with 8 Flags Aviation, but that she felt the safer route for the city was to allow McGill to make his appeal to the FBCC.

Commissioner Pat Gass asked Bach how the delay of a few weeks would hold up the switchover to 8 Flags in two years.

Commissioner Tim Poynter: "Just to make it clear, the city is not asking anyone to leave the airport."
Commissioner Tim Poynter: “Just to make it clear, the city is not asking anyone to leave the airport.”

Poynter said in response, “Just to make it clear, [the city] is not asking anyone to leave [the airport]. We are just bringing in another [FBO], so it’s not whether anyone leaves or not. Two [FBOs] can stay. It has been determined that if we take federal funds, and we have room for them, they get to be here. So no one is asking anyone to leave. McGills can certainly stay, and when their lease is up, they will get to renegotiate their lease at fair market value, and 8 Flags will also be able to be here. And if a third FBO decided they wanted to come, we would have to afford them the opportunity. So it’s not one versus the other.”

Vice Mayor Johnny Miller did not seem concerned about the delay in light of the city attorney’s advice. He added, “I’ve also heard that there isn’t room here for two FBOs. I don’t know if that is true or not.”

Miller expressed concerns from the community that there is not enough business for 2 FBOs at the airport.
Miller expressed concerns from the community that there is not enough business for 2 FBOs at the airport.

City Manager/Acting Airport Manager Joe Gerrity jumped in. “Let me clarify: there is physical room. Whether the business plan is feasible to support …”

Miller continued talking over Gerrity expressing his concern that there is only enough business for one FBO.

Gerrity continued, “The FAA has told us that anyone who has the financial capability …”

Miller continued talking despite attempts by both Gerrity and Poynter to say that it is not the city’s job to determine whether a business will succeed. Miller said that there may only be enough financial business room for one operation to succeed.

Brian Echard: "As I read the ordnance, the time for a bid protest has passed."
Brian Echard: “As I read the ordnance, the time for a bid protest has passed.”

Brian Echard asked to speak. He reminded commissioners that 8 Flags had already competed in the bid process and won on a 3-1 vote. “As I read the ordinance, the time for a bid protest has passed. Mr. McGill could have requested the information two months ago prior to the FBCC’s authorizing me to go forward [to negotiate a contract]. In good faith, my attorney, Tammi and Joe have negotiated this contract, and it was on the agenda today for you to take action. This 11th hour action by McGill to allege a lot of stuff in his letter, which I can tell you now is absolutely not true … You have every right to reconsider moving forward with this resolution, but to protest a bid that has already been awarded is going to open a whole can of worms, not just for me but for every other RFP you guys have issued.”

Echard said that following McGill’s logic, any unsuccessful bidder could claim to have discovered new information at some stage to throw bid awards into question. “The bid has been closed,” he said. “You guys have awarded it. We have negotiated it. What are you guys going to learn in the next 45 days that’s going to change your minds?”

Commissioner Robin Lentz said that Echard gave voice to her concerns. “What’s to stop anyone from coming back at any time to protest a bid award?”

Bach continued to stress that she was urging delay only in the interest of protecting the city.

Poynter said, “I just want to make certain that this is not a reconsideration of the bid. We followed the procedures. We have rules in place. We have time frames, which have expired. It’s up to this commission if they want to reconsider awarding the contract, but the bid has been awarded.”

Judith Lane: "This airport has been toxic since we moved here."
Judith Lane: “This airport has been toxic since we moved here.”

Mayor Boner recognized Judith Lane for public comment. Lane said, referring to discussions held during the development of the airport master plan, “This does not surprise me at all because of what we saw –which you guys did not see to that depth that we did — about the placement of the second FBO. This airport has been toxic since we moved here. And it seems like regardless, you are going to continue the toxicity.” She added that she was not employed by 8 Flags and had no connection with Brian Echard. “But I’m asking you,” she said, “to stop being bullied and take up the resolution as you have it before you tonight, because this is going to continue to go on. … There’s going to be something after [the hearing], and this is going to go on and on. We just came out of a nasty fight that tore the city apart, and you’re gearing up for another, one way or the other. So I’m going to ask you to ignore [the McGill letter] and go forward, or else you’re never going to get anyone to decide to come into this airport.”

Commissioner Lentz commends City Manager Gerrity for his work on the RFP.
Commissioner Lentz commends City Manager Gerrity for his work on the RFP.

Lentz asked if there was a way to expedite the appeal process. She commended Echard for his patience with the city over the past two years. After some discussion the city attorney agreed with the acquiescence of the city manager, that the first step of the appeal involving an opinion from the city manager, could be eliminated, allowing McGill to seek a ruling from the FBCC, which would have been the second step.

Lentz singled out City Manager Joe Gerrity for praise in his handling of the process for bringing in another FBO. She said, “He made sure the process was fair, it took three times to get the RFP right. We tease you about dragging your feet, but I think you did this on purpose to ensure a fair process.”

Gerrity replied, “We just wanted to make sure the process was fair, and that it was an even playing field for everyone, and I think we did that. Of course we as staff get frustrated, too, because it’s stop, start … stop, start. It’s difficult.”

Commissioner Pat Gass had process concerns. “One lawsuit with McGills,” she said, “that’s enough for one city in a lifetime. Would granting this appeal in this manner create legal problems for the future?” Bach said it would not.

Lentz moved to delay consideration of Resolution 2015-139 and to schedule a hearing to listen to Mr. McGill’s concerns, stressing that the hearing is not a bid protest.  Before the motion was seconded, Boner recognized another member of the public.

Len Kreger advises the FBCC to proceed with contract approval with 8 Flags Aviation.
Len Kreger advises the FBCC to proceed with contract approval with 8 Flags Aviation.

Len Kreger addressed the FBCC, echoing some concerns raised earlier. “I think you guys are making a mistake. This item is on the agenda for action today. You award an RFP in the interest of the city. I agree with Judith Lane that this is going to go on forever. What’s going to happen is that this is going to be an interesting tactic that everybody comes up with ‘new information’ on everything. This is not a bid; it’s an RFP, and I think you should award it. It doesn’t make any sense to delay it in my mind.”

Commissioner Pat Gass seconded Lentz’ motion after Kreger’s comments. With no further commission discussion, the Clerk called the vote, and the motion passed 4-1 with Poynter opposed.

The final item of business was to set the hearing for October 13 at 5:00 p.m. in City Commission Chambers.

Background

At its August 4, 2015 Regular Meeting, the FBCC awarded RFP #15-101.2 to Eight Flags Aviation, LLC. The RFP process began earlier this year. On May 20, 2015, the City of Fernandina Beach issued Request for Proposal (RFP) #15-101.2 soliciting proposals from firms for Fixed Base Operation (FBO) and Lease of Land at the Fernandina Beach Municipal Airport. The request for sealed responses was advertised in accordance with city purchasing policies and procedures, and on June 19, 2015, two proposals were received. An evaluation committee comprised of four independent aviation professionals reviewed and rated the submittals according to predefined criteria as published in the RFP.

The evaluation committee convened to view presentations and ask questions of the bidders on July 8, 2015. Afterwards, they deliberated and recommended Eight Flags Aviation LLC over second bidder McGill Aviation by a vote of 3-1.

The RFP was issued a total of three times, having been cancelled twice because of concerns raised by McGill.

In his letter to city commissioners dated September 25, 2015, John McGill outlined a series of concerns over 7 pages. These concerns included charges of arbitrary bid evaluations, insider ethical violations, breaches of the city contract with McGill Aviation and other allegations. McGill also unleashed his unhappiness with Commissioner Tim Poynter dating back to comments that Poynter made during attempts to settle the lawsuit that the McGills filed against the city.

Brian Echard’s 2-page response to McGill’s allegations, in a letter to commissioners dated September 29, 2015, concluded with these words: “The simple truth is that 8 Flags Aviation presented a proposal that was superior to McGill Aviation’s. Mr. McGill’s latest communications follow a well-established pattern of threatening behavior to ensure an outcome that is favorable to his person. His attempt to force the City to reconsider the RFP award and overturn City Resolution 2015-139 is not only groundless, but an insult to everyone who participated and worked so diligently on this RFP.”

Copies of the RFP, bid documents, presentations, letters, etc. are available via Public Records Request to Fernandina Beach City Clerk Caroline Best, [email protected].

Suanne Thamm 4Editor’s Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne’s many contributions to the Fernandina Observer.

 

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Joe Anderson
Joe Anderson (@guest_44574)
8 years ago

We do not want the city involved in another costly lawsuit. I would hope that any city attorney or outside law firm or city commissioner who advised the city to
continue fighting McGill for years in that past futile fight would not be listened to this time around. Their bad advice in the past cost taxpayers millions. City funds should be spent on services, not to settle huge judgements.