THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners' (Board) Value of "Ensuring economic opportunities for all people and businesses in Broward" and the Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
Chapter 32, Part II, Section 32.25 of the Broward County Administrative Code (Code) requires the County, through the Port Everglades Department, to conduct franchise evaluations annually on a rotating basis. Port Everglades franchises are reviewed every other year to determine if each franchisee continues to satisfactorily meet the terms and conditions of its franchise agreement. The Code also requires a Final Franchise Evaluation Report to be filed with the Board within 60 days following completion of the report. The Port Everglades Department staff completed its review on November 9, 2017 and is, therefore, submitting the report at this time.
This review covers the activities of 29 franchises (listed alphabetically) during the two-year period from July 1, 2015 through June 30, 2017. A total of 22 companies are represented-as several companies have multiple franchises. The breakdown of franchise categories included: seven steamship agents; seven stevedores; seven cargo handlers; three vessel bunkering services; and five marine terminal security services.
Each franchisee was given written notice of the franchise review and requirement to update the application information via a questionnaire (see Exhibit 1). In addition to the information submitted by franchisees, input was received from Port Everglades Directors, Assistant Directors and the Port’s Franchise Manager. Additional input was received from the Broward County Department of Environmental Protection and Growth Management, the Broward County Risk Management Division, the Florida Department of Environmental Protection (FDEP), the U.S. Coast Guard (USCG), and the U.S. Occupational Safety and Health Administration (OSHA). This input provided the basis for the evaluation’s conclusions. Findings, including civil litigation cases disclosed by franchisees, are detailed in Exhibit 2 for informational purposes. Based on each franchisee’s performance at the Port and/or-in cases of findings-effective corrective actions, all entities that responded to the 2017 Biennial Review Questionnaire are being recommended for retention.
Public Safety International, Inc. d/b/a PSI Security and Investigations (Public Safety), has held a marine terminal security franchise at Port Everglades since 2014. The company has not provided services at the Port since the approval of the franchise on October 28, 2014 (Item 2-PH), and did not return a completed Biennial Review Questionnaire after multiple inquiries by Port staff. Pursuant to Chapter 32.28 of the Broward County Administrative Code, Public Safety has not conducted franchised operations for 24 consecutive months, and its franchise is considered abandoned and has been terminated.
Host Terminals, Inc. (Host), has held cargo handler and stevedore franchises at Port Everglades since 2012. While there were no reported violations involving operations at Port Everglades, on October 24, 2016, at the Host Terminal facility in Philadelphia, PA, the U.S. Department of Transportation, Federal Railroad Administration (FRA), issued a Notice of Probable Violation for two loose belly caps found by the FRA inspector on a train released by the terminal. The plugs were tightened at the site. A penalty of $18,000 was imposed and paid. The company updated the Unit Train Checklist to require belly caps to be tightened using the plugs instead of the caps. Training was conducted for all operators.
ISS Marine Services, Inc. (ISS), has held a steamship agent franchise at Port Everglades since 1991. The company disclosed open litigation related to a billing dispute for services provided to the US Navy in various ports around the world under various contracts for port services, none of which were related to franchised operations in Port Everglades. The parties are negotiating a full and complete settlement which the company expects will result in the dismissal of the case within the next year.
Kirby Inland Marine, LP (Kirby), has held a vessel bunkering franchise at Port Everglades since 2011. As one of the largest fuel barge operators in the country, Kirby operates 950 barges and 240 boats in the U.S. No infractions occurred as a result of franchised operations at Port Everglades. Thirteen violations were issued by the Texas General Land Office (TGLO), one on 6/10/15, in Houston, TX, involving a collision of a barge while in tow that resulted in a spill of 547 barrels of naphtha into the Texas' coastal waters. A settlement was reached requiring payment of $20,000 to The Seaman’s Church Institute and a fine in the amount of $5,814. All other spills in Texas were less than two gallons. During the reporting period, 19 violations were issued by the USCG in the States of: Texas (13), Louisiana (3), Kentucky (1), Washington (1) and Tennessee (1), for spills and reporting deficiencies associated with fuel barge operations in those states. The company disclosed recent litigation within the past two years as required by Item 7 of the questionnaire. Franchisee believes that none of the cases disclosed will have a material effect on the conduct of its franchised business and that it has recorded adequate reserves and insurance or has meritorious defenses of these claims and contingencies. It is Port staff's view that none of these cases affect the ability of Kirby to operate at Port Everglades.
Portus-PEV LLC., has held stevedore and cargo handler franchises at Port Everglades since 2012, when the company acquired 100% of the assets of St. Johns Shipping Co., LLC., and the franchises were transferred to the name of Portus-PEV LLC. Previous to the name change, St. Johns Shipping Co., LLC (formally St. Johns Shipping Company, Inc.), held the stevedore and cargo handler franchises at Port Everglades since 1991. On June 1, 2017, the company received a Notice of Violation from OSHA, in Port Everglades, for failing to report the in-patient hospitalization of an employee within the required 24 hours. An informal settlement agreement was reached on June 13, 2017, and an abated penalty of $4,527 was paid. Supervisors were trained on providing timely notification to OSHA regarding the hospitalization of employees.
Princess Cruise Lines Ltd. (Corp.) (Princess), has held a steamship agent franchise at Port Everglades since 1999. During the biennial review period, this company was also thoroughly reviewed as part of its application for renewal of its steamship agent franchise. The renewal was approved October 27, 2015 (Item 4-PH), for a five-year term commencing November 10, 2015, and ending November 9, 2020. Seven violations were issued by the US Environmental Protection Agency (EPA), during the review period. Three occurred in California, and three in Alaska, resulting in no penalties assessed. One violation was issued on January 15, 2016, for discharge of paint thinner in Port Everglades, FL, during routine hull maintenance. No fine was assessed. Full training was provided to crew members involved in the maintenance tasks. Additional containment requirements were added to the procedures. The State of Alaska Department of Law, issued the company five violations during the reporting period. Four, for self-reported waste water violations, resulting in fines paid of $38,640. One violation was issued by the State of Alaska Department of Law, for releases of visible emissions during the 2009-2014 cruise seasons. Fines totaled $110,125. On March 11, 2016, Princess pled guilty to charges of misconduct aboard the CARIBBEAN PRINCESS consisting of seven criminal counts. This included one count of conspiracy to discharge and dispose oily bilge water in the navigable waters of the United States, two counts of failure to maintain an accurate Oil Record Book and falsifying the Oil Record Book, and four counts for obstruction of agency proceedings. Princess reported that none of the violations occurred at Port Everglades. Princess entered into a Plea Agreement with the United States Government, pursuant to which the company was assessed and paid a $40 million fine. Princess was sentenced on April 19, 2017, and was placed on a five-year probation commencing on April 20, 2017, thus concluding the criminal case. Princess has taken various steps to prevent a recurrence of the violations, including but not limited to operating under a rigorous environmental compliance plan that includes oversight by a Third Party Auditor and a Court Appointed Monitor. It is Port staff's view that Princess has taken action to address the violations and put in place procedures to reduce the potential for future violations.
Wilhelmsen Ships Service, Inc. (Wilhelmsen), has held a steamship agency at Port Everglades since 2004. On 04/05/17, the United States Department of Transportation issued a Probable Notice of Violation for two violations of the Hazardous Materials Transportation Law in Harahan, AL. Two DOT specification cylinder were marked as recertified, although they did not meet the requirement for recertification during testing. A penalty of $8,475 was paid. The cylinders were retrieved and condemned.
Port Everglades’ staff has concluded that each of the responding franchises provides an economic benefit to Broward County and facilitates waterborne commerce at Port Everglades. Each of the responding franchisees has provided all insurance certificates and maintained financial security for specified amounts, and is active and registered to do business in the State of Florida. Each franchisee has paid required fees and is within acceptable financial condition with ongoing financial obligations to the Port.
Completed questionnaires and all supporting documents are on file in the Port Everglades Business Administration Office.
|