Panama City approves $98,163 payment to City Marina Partners; commission adds contracting safeguards

The Panama City Commission on June 9 approved payment of $98,163 to City Marina Partners for consulting work under an earlier interim public‑private partnership agreement and immediately adopted new contracting safeguards intended to reduce future surprises involving hourly billing.

Staff explained the interim agreement tied reimbursement for reasonably incurred engineering and permitting costs to the termination of a longer-term lease negotiation. Staff recommended payment after reviewing supporting narratives and some hourly invoices provided by CMP and its subcontractors, concluding the consultants were qualified and the fees reasonable relative to the work and other downtown marina expenditures.

Commissioners questioned the partnership structure, the absence of advanced hourly-rate disclosure, and whether a clearer scope and monthly billing would have flagged costs sooner. The motion to approve the $98,163 payment passed on a roll call vote of 4-1 (Commissioner Street recorded the lone no vote during the roll call).

Following the payment vote, the commission moved to impose new contracting requirements for future engagements: disclose hourly rates in advance when contracts will include hourly billing; provide monthly billing statements for hourly arrangements; and, in situations where an hourly rate is not specified, include a not-to-exceed cap. City legal counsel told the commission that adding those provisions would have affected how the invoice would have been billed and could change how partnerships are structured going forward.

Mayor Branch and a majority of commissioners said adopting the new policy will help avoid prolonged surprises and give staff clearer rules for oversight of partnerships and consulting arrangements. The commission passed the contracting policy motion, also by a 4-1 vote.

Next steps: the invoice will be paid from marina reserves as approved by the accompanying budget resolution; the new contracting requirements will be applied to future procurement and partnership documents for the city.