Lynn,
I do feel a bit bad if Ron wanted the job, but this $##( does happen.
As to the fee, we don't know what it includes. I note the city is doing some work in house on bunkers, etc., that has been designed by John, and if you took the full construction value of that, it would obviously lower the % of construction cost.
We also don't know if they added any out of scope services, such as extensive field visits, not to mention John may price projects to include travel time, actual work, etc. For example, maybe his fee does include some consulting from the Ross society (just a guess, I don't know....although I know a few gca's who would raise their fees because they had to consult with the Ross Society....LOL) In any event, the city obviously figured his specialized experience in Ross courses was worth the fee, so it is fair.
From the Ross renos and other renos I have seen John do, I bet it will turn out great. It is a nice example of pretty preserved Ross architecture.
In the interest of full disclosure, I did look at the project, and declined to turn in a proposal because of the geography issues (they tend to hire closer, although in this case, not an issue) and my lack of Ross restoration chops.