JEA sale talks over, ITN process costs estimated at $10 million, interim CEO says

JACKSONVILLE, Fla. — For now, talks of selling Jacksonville Electric Authority are over.

The board of directors today voted unanimously to end the invitation to negotiate (ITN) and release all information.

“A resolution directing the interim managing director and chief executive officer, or her designee, to cancel invitation to negotiate #127-19,” the resolution reads. “The CEO is directed to release all information, including ITN Replies, related to the ITN in accordance with applicable laws.”

JEA announced the emergency meeting on Monday. The announcement came hours after Mayor Lenny Curry publicly called for board members to pull the plug on the ITN.

This is a reversal of the mayor’s push to continue the talks despite a number of controversies, including the firing of JEA’s CEO over a bonus plan that could have cost taxpayers more than $300 million.

RELATED STORY: Jacksonville Mayor, ousted JEA CEO have had more than 50 phone calls

In today’s meeting, interim CEO Melissa Dykes revealed the ITN process came to a total cost of at least $10 million.

“As an early estimate, it looks like it’s over $10 million,” said Dykes.

“So, we spent over $10 million, and we’re here today?” asked board member Dane Grey.

“Correct,” replied Dykes.

Grey went on to call the process “government waste.”

We spoke to attendees of today’s meeting.

“There’s $10 million right there we could have used,” said Tim Wing, a JEA customer. “More linemen, more water, more guys, better equipment.”

Dykes admitted the early cost estimate of the ITN process is a big number but says the work it paid for could still be valuable to JEA.

“From that, we have a very clear picture of exactly every element of the business that could be taken and then translated into plans and crafting a future for the JEA business,” said Dykes.

The board not only decided to end the ITN process but ordered the release of all ITN information.

“In addition, the board directed the JEA leadership team to immediately release the ITN information in accordance with applicable law, and as a result, the process to release this information has begun,” JEA spokesperson Gina Kyle said. “ITN respondents are now being contacted, per ITN requirements, and our goal is to release ITN replies from all 16 respondents by close of business on Friday, Dec. 27. All additional information connected to the ITN process and responses will be released after conducting the required legal review.”

Jacksonville City Council President Scott Wilson says he’s looking forward to seeing the information for himself.

“It allows all those documents to become public. That will take some time. Those documents will provide us with the detail of the work that was done with that $10 million,” said Wilson.

With JEA backing away from negotiations, the 16 bidders have until Monday, Dec. 30, at noon, to submit a protest.

JEA’s purchase code says it has the authority to settle and resolve a company’s protest.

“Prior to the commencement of an action in court concerning a protest, the Chief Procurement Officer or Designee shall have the authority to settle and resolve a Company’s protest concerning a Solicitation or Award of a Contract,” the procurement code reads. “This authority shall be exercised in accordance with the JEA Operational Procedures. Unless otherwise allowed by Florida Statutes, a Company must exhaust all administrative remedies afforded to it by this Code and Operational Procedures before it can commence an action in a court of law.”

As we learn more about the information to be released, we’ll update you on the air, online and on the Action News Jax mobile app.

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