THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action will allow FLBCS the non-exclusive right to operate the Business Technology Service Center Concession at FLL.
The Office of Economic and Small Business Development ("OESBD") initially established the Business Service Center Concession as a Disadvantaged Business Enterprise ("DBE") opportunity project. FLBCS's initial commitment on this Agreement was 55% DBE participation. FLBCS's participation ceased being counted under the DBE program after Broward County implemented its Airport Concession Disadvantaged Business Enterprise ("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. To date, FLBCS has attained 55% ACDBE participation (Exhibit 3). In a memo dated February 10, 2017 OESBD established a 10% ACDBE participation goal for the Business Service Centers Concession. FLBCS has committed to continuing its 55% ACDBE participation for the proposed First Amended and Restated Business Technology Service Centers Concession Agreement Between Broward County, Florida and Fort Lauderdale Business and Currency Services, LLC ("Amended and Restated Agreement").
On June 19, 2007 (Item No. 2), the Board approved an Agreement between Broward County, Florida and FLBCS ("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. The five year Agreement required a capital expenditure of no less than $125,000.
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. On December 12, 2017 (Item No. 4) the Board authorized the Director of Aviation to execute a Sixth Amendment extending the Agreement on a month-to-month basis not to exceed 3 months.
FLL is still undergoing its Terminal Modernization Project ("Project") in which all four terminals are being renovated and expanded. Due to the Project, FLBCS is continuously being asked to relocate equipment and operate out of temporary locations. Additionally, FLBCS is currently operating out of locations that are scheduled for demolition and will need to be relocated to the new permanent locations, which will not be ready for 2 to 3 years.
At this time, soliciting for a new operator would require an investment in existing facilities to maintain service to the traveling public, as well as an investment into new facilities when spaces are ready, making the opportunity less attractive to potential bidders. This proposed Amended and Restated Agreement will allow FLBCS to continue serving the traveling public uninterrupted while upgrading existing equipment and adding new facilities to FLL.
The proposed Amended and Restated Agreement provides for the continuation of a non-exclusive business technology service centers concession at FLL. The term of the Amended and Restated Agreement will commence on April 1, 2018 and will terminate five years from such date. FLBCS will provide baggage and garment storage, luggage sales, luggage wrapping, shipping services, fax machines and photocopies, foreign currency exchange, and automated bank teller machines ("ATMs"). FLBCS will pay to the County, a Privilege Fee, equal to the greater of a Minimum Annual Guarantee ("MAG") in the amount of $175,000 or a percentage fee of gross revenues based upon the following;
Baggage and Garment Storage - 10%
Luggage Sales - 10%
Luggage Wrapping - 10%
Shipping Services - 10%
Fax Machines & Photocopies - 10%
Foreign Currency Exchange - 0.5% of total volume of United States money exchanged
ATMs - 30% of processing fee
The MAG is adjusted annually to an amount equal the greater of 85% of the prior year’s annual Privilege Fee due to County, or the previous contract year annual MAG amount.
FLBCS will be required to make a Capital Expenditure of not less than $200,000 for capital improvements within one calendar year of the effective date of the Amended and Restated Agreement. FLBCS has provided the County with the required insurance certificates that were approved by the Broward County Aviation Department Risk Manager.
In accordance with U.S. Department of Transportation federal regulations governing the ACDBE Program, the Broward County Aviation Department has requested approval from the Federal Aviation Administration ("FAA") for the Amended and Restated Agreement. Approval from the FAA is anticipated before Board approval of this action.
The Amended and Restated Agreement has been reviewed and approved as to form by the Office of the County Attorney and the Risk Management Division. Upon receipt of signature pages for the Amended and Restated Agreement (Exhibit 2), it will be noted in the Monday Night Memorandum.
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