THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This item supports the Commission's 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."
On June 6, 2017 (Item No. 61), the Board approved the agreement between Broward County and Royal Caribbean Cruises Ltd. (RCL) for Construction Agency Services for renovations to Cruise Terminal 25 at Port Everglades to accommodate the new Celebrity Edge class of cruise ships. On June 12, 2018 (Item No. 86), the Board approved the substantial final form of the First Amendment to that Agreement to address increased costs for the project, and authorized the County Administrator to execute the Amendment when final. The Amendment was executed on July 03, 2018. The construction work on the terminal was completed in October 2018, and the terminal entered service on November 19, 2018.
As part of these renovations, the Port was required to upgrade the Federal Inspection Services (FIS) area used by U.S. Customs and Border Protection (CBP) to process arriving passengers to meet current CBP cruise terminal facility design standards. While the terminal owner has been responsible for the cost of building out the FIS facilities to these standards for many years, the owner is also responsible for reimbursing CBP for the cost of equipping the facility with the information technology (IT) infrastructure required to operate the FIS, fund any additional connectivity costs, as well as to commit to reimburse CBP for IT costs associated with operating the facility and future equipment upgrades. CBP requires local terminal owners to execute a Memorandum of Agreement (MOA) committing to paying these costs before it will proceed with outfitting the facility with new equipment. As is indicated in the MOA (Exhibit 2), the estimated cost to outfit the FIS at Cruise Terminal 25 is not to exceed $442,591.
The MOA also provides that the County is to fund equipment upgrades required by CBP with 180 days notice. As noted in the MOA, CBP expects this to occur every three to five years. The Port will also be responsible for equipment maintenance costs, however, CBP does not anticipate significant maintenance expenses since the equipment will be covered by warranties. While Port staff has concerns with these additional federal requirements, staff level discussions over the past year have not changed CBP's position. CBP has been operating the Terminal 25 FIS since it opened using existing IT equipment loaned from other facilities, and will not proceed with procuring the required permanent new IT equipment for the facility until the MOA is fully executed.
The MOA has been approved as to form by the Office of the County Attorney. CBP has also provided a detailed breakdown of the equipment and other costs to support the cost estimates included in the MOA that Port staff will accept after Board approval of the MOA. Per standard practice, CBP will execute the MOA after Board approval.
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