Frequent flyers out of Marquette Sawyer Regional Airport may never notice what’s going on behind the scenes as they depart and return from their respective destinations. And that’s usually the way travelers like it. Just get me there and get me back… that’s all I ask.
And the Marquette County Board of Commissioners, who have the final say on airport operations, would probably be happy if that’s all there was to it, but alas… that’s seldom all there is to it.
Apparently, on or about October 27th of last year, the county informed Kubick Aviation Services, the firm employed as Fixed Base Operator (FBO) at Marquette Sawyer, they were terminating their contract and relieving them of their duties, as of May 1st.
In explaining the decision, Board Chairperson Joe Derocha cited the desired endgame. “We want to make Sawyer self-sustainable.” Nothing wrong with that. However, according to board commissioner Karl Numinen, the decision to end the agreement also came about, in part, due to dissatisfaction with the services being delivered by Kubick. One of the issues, as I understand it, is the failure of Kubick to have a qualified mechanic on site. It’s unclear as to how that’s spelled out in the agreement.
Former Airport Manager and current County Administrator Duane Duray acknowledged a level of satisfaction with Kubick’s work. “They have provided really good service over the course of the time they’ve been here.” But then he added, “Yes, there are some issues that arose that we’ve tried to navigate through.”
Opting Out
Though the contract with the firm was initiated just a couple years ago, and was for a five-year term, it includes the stipulation that either party can opt out for whatever reason they want, provided they give at least six month’s notice. And that’s what the county has done.
So who, you might wonder, is going to be handling airport operations, like… inspection and maintenance of fuel storage facilities, fuel delivery, fueling services, aviation line services, aircraft maintenance and repair services, collection of aircraft landing fees, pilot/crew services and escort services through secured areas?
Well, as of now, the plan is to let the airport itself handle those responsibilities. You know… keep it in house. In other words, take the job away from the private sector and let airport personnel assume the duties. You may applaud that decision and hope it comes with financial savings, or… you may think there’s no way a government operation will be able to deliver the same level of service provided by a private contractor.
Not So Fast
And that’s where the story takes an interesting turn. One man who questions the ability of the county to replace a seasoned FBO company like Kubick is Mark Hangen. Hangen knows his way around an airport, being an aircraft owner and pilot who has vast experience with plenty of airports, including Marquette Sawyer.
Hangen has filed a lawsuit against the county asking for a more thorough examination of the implications associated with such a change in operations. According to Hangen, he is “trying to stop a train wreck before it happens.” I guess using the common train wreck phrase is more palatable than calling it a plane wreck.
The lawsuit contends that “The County terminated the FBO Agreement with Kubick and the County’s Commissioners decided to take over the FBO services without performing any meaningful due diligence.” The suit also accuses the board of acting in an “arbitrary and capricious manner when it terminated the FBO Agreement…”
Conflicting Numbers
Anyway, aside from Numinen’s explanation of the reason for the termination, Hangen’s suit questions the county’s contention of financial advantages, which, he says, are based on inaccurate estimations of fuel costs and revenues. The county, according to Numinen, stands by their calculations.
Hangen also says “there are no checks and balances at the Commission level on this matter. Joe Derocha is the County Commission Chairman; he is also the Airport Finance Committee Chairman and the Airport Advisory Committee Chairman. Concentrating this amount of power in the hands of one individual is poor governance.”
The motivation behind the lawsuit, Hangen says, has nothing to do with any personal financial gain. In fact, he’s ponied up close to $25,000 of his own money to get the lawsuit to this point. It should be noted Hangen has the resources to pursue his concerns. The word going around is he sold his stake in the Easy Ice business he co-founded for something in the nine-figure range.
Is There a Plan B?
If Hangen’s suit prevails, the county will have to put a pause on their plans, and maybe go all the way back to the gate and start over. Repairing their relationship with Kubick would be a possibility, otherwise they’ll only have a couple months to figure out who’s going to pump the gas.
At the November 25th Special Meeting regarding this issue several other local aviators, with a lot of flight time between them, also voiced their support to retain Kubick, while questioning why you’d give up a “no risk contract generating revenue.”
Although they had to make their case during public comment, rather than as an informational presentation to the board, several Kubick representatives advocated for their continued tenure as the Fixed Base Operator, citing, among other things, the history of a good partnership with the airport. They also indicated that the five-year term was put in place because that’s how long it would take to recoup their investment.
The lawsuit is requesting a better process with more extensive due diligence before making such a consequential decision. And while there are concerns about how the move to county control would impact service, Hangen also cites the possibility of liability issues… no small consideration in the airport industry.
County Control
If the county survives the litigation, as attorney Karl Numinen expects they will, watch for job openings at Marquette Sawyer. Fixed Base Operations aren’t something you just add to your current employee’s job descriptions.
In justifying their decision, a couple board members pointed out they were acting on the advice of the Airport Advisory Committee, which unanimously voted to recommend the move to a county owned-and-operated FBO.
Even with the advisory board’s recommendation in hand, the process ended up being a little clunky, with commissioners concerned about the lack of information. However, with their vote to approve the termination, it appears the commissioners are operating within their rights.
A Consequential Decision
It’s a difficult case, with legitimate rationale on both sides. And since I left my law degree in my other jacket, I’ll step back and let the courts decide the fate of Hangen’s lawsuit. It should go before a judge sometime in the next couple of weeks.
The Marquette County Board of Commissioners certainly has its hands full these days, with airport operational concerns, I.C.E. enforcement issues, and a whistleblower case which may or may not go anywhere. I’ll try to stay informed and let you know of any new developments.
In the meantime, go ahead and fly, fly away.