Fernley council rejects hire of federal‑funding firm after members question local connections and value

Merchant McIntyre Associates did not win the Fernley City Council’s endorsement on Wednesday after a contentious presentation and a series of skeptical questions from council members. The council voted 3–2 to deny the proposed 90‑day engagement that staff had placed on the agenda for federal grant strategy work.

Mark McIntyre, one of the firm’s principals, told the council the engagement would produce a resource inventory, a comprehensive federal funding strategy and a detailed grants grid, and that Merchant McIntyre would begin drafting targeted grants and earmark requests during the 90‑day term. “If there’s a grant that we know is forecast to be open that the city is interested in pursuing, we’re going to start writing that grant,” he said in response to questions about deliverables.

Council members pressed on measurable outcomes and local contacts. Councilman Torres moved to deny the contract after repeatedly questioning the firm’s local presence and whether the outreach that the firm described was materially different from the city’s existing federal contacts. “I reached out to several of our federal delegates … they’ve never heard of you,” Torres said. Mark McIntyre replied that his firm does not pursue publicity and that its approach is to do detailed preparatory work with program officers and congressional staff: “We try to win the grants before they’re announced,” he said.

Several council members also asked whether the firm would accept contingency or success‑based pay; McIntyre responded that receiving a percentage of federal grant awards would be illegal. Council members urged the city to seek multiple bids and to consider whether the city could expand in‑house capacity or partner with regional entities such as the Western Nevada Development District. “I would rather hear from different firms before getting a $30,000 three‑month proposal,” one councilmember said.

After debate, the motion to deny Merchant McIntyre’s proposed contract was seconded and carried by a 3–2 vote. The council did not approve an alternative contractor at the meeting; members said staff could return with a competitive solicitation if the council wished to revisit federal grant support.

Next steps: Staff will note the council’s direction and, if directed later, prepare a request for proposals or bring additional firms for council review.