Submitted by Suanne Z. Thamm
Reporter – News Analyst
November 6, 2020
Effective December 1, 2020. there will be a new company managing the Fernandina Harbor Marina. During their November 4, 2020 Regular Meeting, the Fernandina Beach City Commission (FBCC) unanimously approved a 5-year Marina Management Agreement and Lease for the Dockhouse (retail store) with Oasis Marina, LLC (Resolution 2020-165).
Background
Oasis will replace Westrec Marina Management, which has operated the City marina for the past ten years. The City advertised Request for Proposal (RFP) #2020-02 for Managing and/or Leasing Marina Facilities. Five proposals (Coastal Marina Management, F3 Marina, Mobias Marina Management, Oasis Marinas, and Safe Harbor Marinas) were received on April 30, 2020. Stantec Consulting Services, Inc. was contracted to provide a Financial Review of Marina Management Proposals by evaluating and ranking the proposals, subsequently ranking Oasis Marinas in the best financial interests of the City.
An Evaluation Committee reviewed and ranked the five proposals received and presented its findings to the Marina Advisory Board on August 24, 2020. The Marina Advisory Board, on June 22, 2020, and again on August 24, 2020, reiterated previous support for Westrec Marina Management, recommending that Westrec Marina Management be afforded the opportunity to operate for one full year with a fully functional facility (including fueling operations).
The City Commission approved the Evaluation Committee ranking on September 1, 2020 via amended Resolution 2020-98 finding that Oasis Marina, LLC and F3 Marina were the #1 and #2 ranked marina management companies, respectively, and the Commission directed the City Attorney and City Manager to negotiate a contract with Oasis Marina, LLC for consideration by the City Commission and for the City Manager to provide a 90-day termination notice to Westrec Marina Management, Inc. to terminate the current management contract effective November 30, 2020.
Commission Discussion
Before approving the new management company, Commissioners raised questions that had been brought forward by members of the Marina Advisory Board (MAB) along with their own comments.
City Attorney Tammi Bach explained the negotiation procedures leading to the final contract to the FBCC. She said that she, the City Manager, and Marina Advisory Board (MAB) had been involved in the review of the document. There were no public records requests. During the 5 weeks of negotiations, the City also involved the City’s bond counsel and the Florida Inland Navigation District (FIND) to insure that provisions were in keeping with both loan agreements and grant assurances.
Bach said that many of the MAB questions related to rates that would be charged for marina slips under the new management. She said that range of rates is regulated by FIND using these criteria: slip rentals must be the same for all the FIND member counties—no preferential rates for Nassau County or City residents; dockage rates must be within the range of other area marinas; ten percent or more of the slips must be set aside for transient vessels.
She also said that preventive maintenance was a concern addressed during negotiations, with Jeremiah Glisson, Facilities Manager, representing the City in those talks. Roles of both the City and Oasis were clarified. Structural items will be handled by the City; items like deck boards and fire extinguishers are the responsibility of Oasis. Bach stressed that the money to maintain the marina comes out of the City’s Budget. “We hire a management company to replace full-time City staff; we pay all the costs,” Bach said, noting that the situation with Oasis will be no different in this regard than it was with Westrec.
In addressing questions regarding retail sales from the dock house at the marina, Bach said that was covered under a different agreement. The City will receive a flat 25 percent of gross retail sales. She explained that the City will receive 25 percent or an annual payment of $2,500, whichever is more. She said that subcontractors will not be permitted to work on boats in the marina because of the environmental sensitivity of the area.
In response to a question from Commissioner Mike Lednovich, Bach said all written or unwritten agreements with Westrec will expire when they leave and Oasis takes over management. Oasis will set up its own agreements. If a long term contract is cited in the agreement, such as the agreement with the former Amelia River Cruises, it will continue to be honored.
“They have performance standards, which was not in the Westrec contract,” Bach said, pushing back against Lednovich’s call for more specifics in what maintenance will be done according to what schedule. She said that she did not want to provide a list of actions out of concern that something might be left off the list or surface at a future date. “[Oasis] will be in default, if there is a lapse in maintenance,” she said. “Sometimes vagueness is intended, and this time it was.”
Oasis CEO Dan Cowens and VP for Business Development Brian Arnold attended the meeting and rose to address additional Commissioner questions. Cowens said that normally they provide basic WiFi access free to boaters at their other marinas with options to pay for additional layers of service.
Vice Mayor Len Kreger believed it was important to say more about preventive maintenance. He wanted assurances that the new attenuators would be maintained according to manufacturers’ standards.
Lednovich asked Oasis to define first class professional manner and how they would measure whether they are succeeding in delivering first class service. Cowens said that Oasis uses Five Diamond Hotel service as a standard. He said they use secret shoppers internally to see that they are meeting standards and that every boater is given a survey to complete following their visit to an Oasis property. Oasis is willing to share the surveys with the City.
Mayor John Miller asked Oasis about new businesses wanting to operate out of the marina, such as sight seeing businesses, charter boats, etc. He wondered how Oasis would decide which businesses to accept. Cowens said, “Normally we look at what is the vision of the town and which businesses would reflect that vision. If we had an operator that wanted to come in, and we weren’t sure of the fit, we would bring the question back to [the FBCC].”
Miller said that he would recommend a standard procedure to avoid confusion among potential business operators as to whether they needed City approval or Oasis approval to operate. Cowens said that factors needing to be considered include space needed/availability for the business and whether it would displace businesses that could generate more revenue. “The things we think about,” Cowens said, “are not just about getting another business in the marina but whether it fits the City vision. Does this business support the City’s vision?”
MAB Chair Kevin McCarthy, owner/operator of Amelia River Cruises, was the only member of the public to address the FBCC on the marina contract. He said that Bach had addressed most of the concerns raised by the MAB members. He was also gratified to learn that his contract would be respected and that Oasis is also on board with the possibility of water taxi service between Fernandina and St. Marys. McCarthy said, “I’m pleased with how things went tonight, and I am personally excited to see a new operator come in. We want to see the marina do great things going forward.”
Commissioner Chip Ross moved to approve the agreement with Oasis and Commissioner Phil Chapman seconded his motion. The motion passed unanimously. Mayor Miller said he looked forward to the City’s working with Oasis.
For all the bellyaching on social media about the issues of the city marina and only Kevin McCarthy shows up to comment on the Oasis Management contract! Only 10% of slips required to meet FIND grant?? Hmm, I thought it was much more than that. With the “dynamic price setting” policy championed by Oasis how will that impact the long-term slip holders. Clear and objective performance measures need to be adopted so there is no question as to whether Oasis is living up to their side of the contract.
“sometimes vagueness is intended…”?
Standard contract language reads “including, but not limited to…” followed by a long laundry list of anticipated requirements or situations.
The idea that “sometimes vagueness is intended, and this time it was” makes assessing a contractor’s performance a very difficult future conversation. It is also troublesome when you think about the marina as a city asset that needs to be cared for now and in the future. If you are failing to plan you are planning to fail. Think about the beach walk over mess and all the expenses now being incurred to get that all back on track and then think about marina maintenance again.