Fernandina Beach mobilizes to take over city marina management after operator exits

By Mike Lednovich/Editor

The City of Fernandina Beach is preparing to take over day-to-day management of the city marina after its private operator notified the city it intends to walk away from the contract, a move that will go before the City Commission for approval March 3.

Deputy City Manager Jeremiah Glisson told the Waterfront Advisory Board Monday that city staff is recommending the marina return to direct city management following notice from Oasis Marinas — now operating as Alliance Marina — that it plans to terminate management agreements at facilities it does not own.

“In short, any marinas that they (Alliance) don’t own, they’re walking away from,” Glisson told the board during its Feb. 23 meeting.

If commissioners approve the transition, Alliance will leave April 1, requiring the city to quickly assume operations while preparing for upcoming waterfront construction projects.

Glisson said city staff recommends bringing operations in-house rather than reassigning the contract or issuing a new request for proposals.

Those three options — reassigning the contract, seeking new bids or city management — were presented for commission consideration, but staff believes current conditions make contracting impractical.

Jeremiah Glisson

“As you’re on the precipice of tearing apart the marina … now it’s not the time to go out for an RFP for management services,” Glisson said, referencing planned demolition and seawall construction tied to waterfront redevelopment.

He added that city staff had reached consensus at a recent commission workshop, although a formal vote has not yet occurred.

“That is going to be the recommendation of city staff — to bring it in-house,” he said.

Glisson said staff is already preparing for a possible transition, including evaluating marina management software, staffing impacts, insurance needs and transferring existing slip agreements.

“A lot of moving parts — everything from insurance to software, hardware,” he said.

The Waterfront Advisory Board voted unanimously Monday to support the city managing the marina itself and asked that its recommendation be forwarded to the commission ahead of the March 3 meeting.

Board member statements echoed staff concerns that ongoing redevelopment work would complicate private management arrangements.

City records show Fernandina Beach has relied on contracted private management for more than a decade.

Westrec Marinas began operating the marina for the city in January 2010 after a competitive selection process, marking the start of long-term outside management. Later contracts shifted operations to Oasis Marinas, which eventually merged into Alliance.

If approved next month, the transition would represent the first time since before 2010 that the city has directly managed marina operations.

Glisson characterized the operator’s decision as sudden.

“A bit of a curveball that Oasis brought to us,” he said.

Under the current agreement, most marina assets — including equipment — revert to city ownership when the operator departs, reducing financial exposure for the city, according to Glisson.

Staff also said key personnel are expected to remain, including marina general manager Chris Ferguson, who has committed to staying on if the city takes over.

The proposed management shift comes as marina operations are outperforming last year’s financial results.

Ferguson told the board year-to-date totals show:

• About $118,000 ahead in total revenue compared to last year

• $31,000 increase in net operating income, about a 12.4% gain

• Growth in transient dockage, annual dockage and fuel revenues

“We’re seeing nice gains in the operations,” Ferguson told the board.

Management fees paid to Alliance would end if the city assumed control.

Staff is also exploring adoption of DOCWA marina software, which Ferguson said could connect Fernandina Harbor Marina to approximately 450,000 registered boaters and thousands of participating marinas nationwide.

City officials said timing of the change aligns with multiple projects already underway or planned at the waterfront, including:

• Dinghy dock rehabilitation beginning in March

• Seawall construction and demolition work

• Mooring field improvements

Glisson said committing to a new outside management contract while those projects disrupt operations would be unrealistic.

“It’s disingenuous to say, ‘Come manage this marina,’ and then tear it apart,” he said.

The City Commission is scheduled to consider the contract termination and staff recommendation at its March 3 meeting.

If approved, operations could transition to direct city management by April 1.