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Commission questions 5% commission in expiring grant-writer contract; consultant offers to clarify
Summary
Commissioners reviewed an expired contract with their grant-writing consultant, raised concerns about a 5% commission on project funds and staff workload, and asked staff to clarify whether commissions would apply to loans or only grants; the consultant offered to amend language and return with a draft.
Port St. Joe commissioners spent substantial time at their March 4 special meeting discussing an expiring contract with the city’s grant-writing consultant (referred to in the meeting as Two Gun Consulting). Commissioners said the contract, which included a $4,000 monthly retainer and a 5% commission on project funds, expired in January and requires clarification before the commission considers renewal.
Commissioners and staff raised three main concerns: that city staff were performing much of the application work the consultant was expected to handle; that the contract’s commission clause did not clearly differentiate between loans and grants; and that a 5% commission on large awards could create significant budget obligations the city must plan for.
Sean Preston, identified in the meeting as the consultant, answered commissioners’ questions and said he did not believe the 5% commission was intended to apply to loan proceeds. Preston told the commission he would provide language to remove any ambiguity (for example, by explicitly limiting the commission to grant funds) and offered to email a supplemental agreement for the commission to sign in the short term if that would provide reassurance.
Preston also summarized the grant pipeline he has worked on for the city: a USDA package he described as around $25 million (up to 50% grant, 50% loan), a disaster grant described as up to $5 million of grant-only funds, and earlier rural infrastructure work (he cited a prior $3.8 million application that was bumped when the city received a larger award from the same funding pot). Commissioners asked staff to confirm whether each grant agreement would allow administrative or grant-writing fees to be paid from award proceeds; Anita, the city grant coordinator referenced in the meeting, was asked to confirm allowable admin through email.
Next steps: Commissioners directed staff to obtain written clarification from the grant coordinator on whether specific grants allow recovery of administrative fees, to draft contract language excluding loans from the commission base, and to bring a revised contract for consideration at a future meeting. Preston agreed to send a supplemental note and to return to present as needed.
Why this matters: The commission is weighing how to balance bringing in large outside grant awards with protecting the city’s operating budget from significant commission payouts and ensuring staff capacity to manage application and reporting work.
The meeting also featured citizen comments restating concerns about the retainer, the 5% commission and whether that commission would still apply given the contract’s timeline. Commissioners confirmed the city has been paying monthly retainers while the contractual terms were discussed and said they will pursue a clearer written agreement before approving a new contract.
