THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Board of County Commissioners' Value of "Ensuring economic opportunities for Broward’s diverse population and businesses" and Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
On August 21, 2001 (Item No. 8-PH), the Broward County Board of County Commissioners (Board) entered into a Tugboat and Towing Services Franchise Agreement with Tugz International, LLC, to provide tugboat and towing services at Port Everglades for a term commencing August 21, 2001, and ending October 28, 2007. On June 24, 2003 (Item No. 3-PH), the Board approved assignment of the franchise by Tugz International, LLC, to Tugz Company, LLC, for the reminder of the franchise term through October 28, 2007. In 2004, McAllister Towing of Florida, Inc. became a managing member of Tugz Company, LLC, and the company added to its franchise a fictitious name, McAllister Towing of Port Everglades. On September 11, 2007 (Item No. 28-PH), the Board approved the renewal of the franchise for a ten-year term commencing on October 29, 2007, and ending on October 28, 2017. The company is requesting renewal of the franchise for a ten-year term.
Tugz Company, LLC (Tugz), a limited liability company, was formed in the State of Delaware on April 25, 2003, and registered to do business in the State of Florida on May 19, 2003.
Tugz holds a separate land lease for offices at Berth 28 where it currently docks its fleet of tugboats. Under the terms of the proposed franchise agreement, and in recognition of the suitable dock space, Tugz is required to operate and maintain a minimum of two modern harbor tugboats equipped with firefighting apparatus, which will provide efficient and satisfactory tugboat and towing services and firefighting capabilities at Port Everglades.
The company will continue to operate the tugboat and towing service at Port Everglades on a 24-hour per day basis and will pay 5% of its revenues net of its discounts derived from its franchised operations at Port Everglades.
Port staff has reviewed the application pursuant to the Broward County Administrative Code and has determined that the applicant meets the criteria for renewal. Staff’s due diligence included corresponding with the applicant's representative to clarify franchise requirements, and reviewing the applicant's corporate status, business history/experience, litigation history, insurance, financial documents and creditworthiness, required licenses, company programs and policies, and statement of intended activities. In addition, no safety or environmental violations were found in reviewing the company’s record. Tugboat and Towing Franchises may be issued for any period of time up to ten years. Accordingly, staff is recommending that the franchise renewal be approved for a ten-year term.
The franchise agreement has been reviewed by the Port Everglades' Risk Manager and approved as to form by the Office of the County Attorney. The complete application and supporting documents are on file in the Port Everglades Business Administration Office. |