Broward County Commission Regular Meeting


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AI-27918 40.       
Meeting Date: 12/04/2018  
Director's Name: Steven Cernak
Department: Port Everglades Division: Business Administration

Information
Requested Action
MOTION TO ADOPT Resolution No. 2018-549 of the Board of County Commissioners of Broward County, Florida, granting renewal of a nonexclusive franchise to Tropic Oil Company for a five-year term to provide vessel bunkering services at Port Everglades, from January 1, 2019, through December 31, 2023; providing for franchise terms and conditions; and providing for severability and an effective date.

ACTION:  (T-11:11 AM)  Approved.  (Refer to minutes for full discussion.)

VOTE:  9-0.
Why Action is Necessary
Public hearing is required pursuant to Chapter 94-429, Laws of Florida, and Section 32.22a of the Broward County Administrative Code. Franchises are granted pursuant to Chapter 32 of the Broward County Administrative Code.
What Action Accomplishes
It allows franchisee to provide vessel bunkering services at Port Everglades.
Is this Action Goal Related
Previous Action Taken
Request to set Public Hearing was approved by the Broward County Board of County Commissioners on November 13, 2018 (Item No. 28).
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.

This action supports the Broward County Board of County Commissioners' Value of "Ensuring economic opportunities for Broward's diverse population and businesses" and the Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."

On December 2, 1993 (Item No. 11-PH), Tropic Oil Company (Tropic Oil) was granted a nonexclusive franchise by the Port Everglades Authority, predecessor in interest to the Broward County Board of County Commissioners (Board), to provide vessel bunkering services at Port Everglades for a term of five years, from January 1, 1994, through December 31, 1998. Renewal of the franchise was approved by the Board on November 10, 1998 (Item No. 13-PH), for a five-year term, from January 1, 1999, through December 31, 2003. The most recent renewal of the franchise was approved by the Board on November 12, 2013 (Item No. 5-PH), for a five-year term, from January 1, 2013, through December 31, 2018. Tropic Oil has applied for renewal of the franchise.

Staff has reviewed the vessel bunkering services franchise renewal application against the enumerated renewal criteria set forth in Chapter 32 of the Broward County Administrative Code. Staff's due diligence included corresponding with Tropic Oil's representative to clarify franchise requirements and reviewing of Tropic Oil's corporate status, resumes of executive staff and list of managerial personnel, business history/experience, litigation history, insurance, financial documents and creditworthiness, discharge of previous financial obligations to County, compliance with all franchise terms and conditions, required licenses and certificates, U.S. Coast Guard-approved operations plan, approved oil spill contingency plan, company programs and policies, list of equipment to be used at Port Everglades, statement of intended activities, and actions to promote and develop business growth at Port Everglades. Tropic Oil's safety and environmental history was also reviewed, and infractions are documented in Section Q of the application. No infractions occurred as a result of operations at Port Everglades. During an inspection of Tropic Oil's facility in Medley, Florida, by the Florida Department of Environmental Protection on November 10, 2015, seven intact mercury-containing lamps were observed discarded with non-regulated solid waste in violation of applicable regulations. Tropic Oil personnel removed the lamps from the trash bin and placed them in properly labeled containers awaiting proper disposal. Since the issue was resolved at the time of the inspection, a Notice of Violation was not issued. Staff believes that Tropic Oil acted promptly and responsibly to resolve the deficiency documented in Section Q of the application. No false or misleading information was submitted as part of the franchise renewal application.

Tropic Oil has, through the submission of the signed franchise renewal application, agreed to comply with all franchise conditions set forth in Section 32.24 of the Broward County Administrative Code. Based on the review of information provided in the application, staff has determined that Tropic Oil meets the criteria for renewal of a vessel bunkering services franchise. Vessel bunkering services franchises may be granted for any period of time up to five years. Past practice has been for staff to recommend granting the renewal of a vessel bunkering services franchise for a term of five years. Accordingly, staff is recommending that the franchise be renewed for a five-year term. The complete application and supporting documents are on file in the Port Everglades Business Administration Division.
Source of Additional Information
Jorge Hernández, Enterprise Director of Administration, (954) 468-3501
Ángela Osorno Belleme, Franchise Manager, Business Administration Division, (954) 468-0112

Fiscal Impact
Fiscal Impact/Cost Summary:
Tropic Oil Company, has paid the required annual fee of $2,250, and will pay an additional $9,000 in annual franchise fees over the term of the franchise, for a total of $11,250.
Attachments
Exhibit 1 - Resolution
Exhibit 2 - Application


    

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