A. MOTION TO AUTHORIZE Director of Aviation to enter into an Amendment extending the term of the Airport Advertising Concession Agreement between Broward County and In-Ter-Space, Services Inc. d/b/a Clear Channel Interspace Airports on a month-to-month basis, not to exceed three months, commencing on January 1, 2018.
ACTION: (T-10:27 AM) Approved.
VOTE: 8-0. Commissioner Ryan was not present during the vote.
B. MOTION TO AUTHORIZE Director of Aviation to enter into an Amendment extending the term of the Business Technology Service Centers Concession Agreement between Broward County and Fort Lauderdale Business and Currency Services, LLC, on a month-to-month basis, not to exceed three months, commencing on January 1, 2018.
ACTION: (T-10:27 AM) Approved.
VOTE: 8-0. Commissioner Ryan was not present during the vote.
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THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTIONS.
Motion A
The Office of Economic and Small Business Development ("OESBD") established a 15% ACDBE participation goal at the time of award for the Agreement. Upon approval of the Third Amendment, OESBD adjusted the committed Airport Concession Disadvantaged Business Enterprise ("ACDBE") participation to 8.5%. To date, Clear Channel has paid $1,144,617 to its sub-contractors, or a 7.46% ACDBE participation over the life of the agreement.
This action is to authorize the Director of Aviation to enter into an amendment to the Airport Advertising Concession Agreement between Broward County ("County") and In-Ter-Space, Services Inc. d/b/a Clear Channel Interspace Airports ("Agreement") extending the term of the Agreement on a month-to-month basis, not to exceed three months, commencing on January 1, 2018, allowing the continuation of advertising services in the terminals at FLL during negotiations with the selected Respondent of RLI No. 20160425-0-AV-01 Advertising and Display Concession.
On December 11, 2007, (Item No. 2), the Board approved the Agreement with a termination date of December 31, 2013.
On May 5, 2009 (Item No. 16), the Board approved a First Amendment to the Agreement revising the Minimum Annual Guarantee ("MAG"), increasing the security deposit and amending the requirement for Letters of Credit to be issued by banks within the state of Florida.
On October 22, 2013 (Item No. 45) the Board approved a Request for Letters of Interest ("RLI") for an Advertising and Display Concession at FLL. Only one firm submitted a proposal in response to the RLI. The solicitation was extended for an additional four weeks and no additional proposals were received. Because the Agreement was set to expire on December 31, 2013, the Board also approved the Director of Aviation's authority to execute an amendment to the Agreement extending it on a month to month basis not exceeding 12 months.
On December 12, 2013, the Director of Aviation approved a Second Amendment to the Agreement extending the term on a month-to-month basis allowing the opportunity to go through the RLI selection process to select a new vendor.
Because there was only one respondent to the RLI, when the Selection Negotiation Committee ("SNC") met on May 14, 2014, the SNC approved a motion to reject the proposal and request that the Board approve a motion rejecting the single proposal. On June 3, 2014 (Item No. 5) the Board approved the motion to reject the single proposal received under the RLI.
On December 9, 2014 (Item No. 2), the Board approved a Third Amendment to the Agreement extending the term for an additional two years. Clear Channel agreed to invest $200,000 to update existing advertising locations.
On December 6, 2016 (Item No. 2), the Board approved a Fourth Amendment to the Agreement extending the term on a month-to-month basis, not to exceed 12 months.
On April 25, 2017 (Item No. 3) the Board approved an RLI for a new Advertising and Display Concession at FLL. Only one firm submitted a proposal in response to the RLI on the established due date of September 22, 2017.
On November 7, 2017 (Item No. 63) the Board approved the final ranking of RLI No. 20160425-0-AV-01 Advertising and Display Concession and authorized staff to proceed with negotiations. This action authorizes the Director of Aviation to extend the existing Agreement and will provide additional time to conclude the negotiations and present a new Agreement to the Board for its consideration.
Motion B
OESBD initially established the business technology service centers concession as a Disadvantaged Business Enterprise Opportunity Project. FLBCS's initial commitment on this Agreement was 55% Disadvantaged Business Enterprise ("DBE") participation. FLBCS's participation ceased being counted under the DBE program after the County implemented its ACDBE program under Part 23 of Title 49 of the Code of Federal Regulations. Since that time, participation with regard to this Agreement has been counted under the ACDBE Program.
On June 19, 2007 (Item No. 2), the Board approved the Agreement providing for the non-exclusive right to operate a business technology service concession at FLL. The Agreement commenced on July 1, 2007, with a termination date of December 31, 2013.
On March 12, 2012, the Director of Aviation approved the First Amendment to the Agreement providing for the addition of new assigned space in Terminal 3.
On December 10, 2013 (Item No. 2), the Board approved a Second Amendment to the Agreement providing for the extension of the term of the Agreement on a month-to-month basis not to exceed 12 months.
On June 16, 2014, the Director of Aviation approved a Third Amendment to the Agreement providing for the addition of new assigned space in Terminal 3.
On December 9, 2014 (Item No. 3), the Board approved a Fourth Amendment to the Agreement providing for the extension of the term of the Agreement for two years.
On December 6, 2016, (Item No. 2), the Board approved a Fifth Amendment to the Agreement providing for the extension of the term of the Agreement on a month-to-month basis, not to exceed 12 months, and terminating on December 31, 2017.
This proposed Motion will authorize the Director of Aviation to enter into an amendment extending the term of the Agreement on a month-to-month basis for a period not to exceed three months. The extension will give BCAD the opportunity to determine the feasibility of extending the Agreement and negotiating new privilege fees and capital expenditure amounts with FLBCS or give BCAD the opportunity to finalize a new solicitation document, if BCAD determines that an extension to the Agreement is not feasible. The extension will also allow the continuation of essential services to the traveling public at FLL until a new agreement is in place.
Some of the considerations BCAD is evaluating in determining the feasibility of an extension to the Agreement include the fact that FLL is still undergoing an extensive Terminal Modernization Program that has significantly impacted the Business Technology and Service Centers Concession Program. As a result, FLBCS is continuously being asked to relocate equipment and assigned space to temporary locations, including vacating assigned spaces to accommodate the ongoing construction in the terminals. In addition, negotiating an extension to the concession agreement will allow FLBCS to continue operations in existing locations that are being disrupted by construction, while also allowing them to invest into new locations that have become available as part of the Terminal Modernization project.
Since entering into the Agreement, FLL has experienced a change in its passenger demographics. FLL has seen an increase in both its international and business passengers. This extension gives BCAD the opportunity to analyze, address, and better serve the needs of its changing passenger demographics. Extending the Agreement will also give BCAD the ability to negotiate new privilege fees and capital expenditure for these services to come in line with the rest of the industry and improve the facilities and services offered to passengers.
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