THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners' (Board) 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."
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. 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 completed its review on January 7, 2019, and is, therefore, submitting the report at this time.
This review covers the activities of 31 franchises (listed alphabetically) during the two-year period from July 1, 2016, through June 30, 2018. A total of 23 companies are represented, as several companies have multiple franchises. The breakdown of franchise categories includes 11 steamship agents, eight stevedores, seven cargo handlers, two vessel bunkering services, one vessel sanitary waste water removal, one vessel oily waste removal, and one marine terminal security service.
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 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. Based on each franchisee’s performance at the Port, and/or in the cases of findings, effective corrective actions, all entities that responded to the 2018 Biennial Franchise Review Questionnaire are being recommended for retention.
Of the 31 franchises reviewed, the following franchisees disclosed issues that required a closer level of review by Port staff:
Ceres Marine Terminals, Inc. (Ceres) has held stevedore and cargo handler franchises at Port Everglades since 2012. No infractions occurred as a result of franchised operations at Port Everglades during the reporting period, however, Ceres was issued three Notices of Violation by OSHA in Georgia on June 22, 2017. During an OHSA inspection, it was found that a pedestrian crosswalk was not properly defined, a worker was found not wearing protective head gear, and fall protection was not installed as required by OSHA regulations. Penalties totaling $21,550 were assessed. Ceres is contesting the violations and the case is awaiting resolution. On September 7, 2017, the U.S. Department of Homeland Security, U.S. Immigration and Customs Enforcement (ICE), issued Ceres a Notice of Intent to Fine, following an audit that found an incomplete Form I-9 for one of the company’s employees in Port Canaveral. A final disposition of the case has not been completed by ICE. Based on Ceres’ responsiveness to the violations and given the pending status of the cases described, staff is satisfied that the franchisee continues to demonstrate its fitness to operate under its franchises at Port Everglades. Staff will continue to monitor developments in the cases described and will report any material findings to the Board.
Sun Terminals, Inc. (Sun Terminals) has held cargo handler and stevedore franchises at Port Everglades since 1994. On February 10, 2016, an employee of Sun Terminals was killed in Port Everglades after having stepped out from the front entrance gatehouse onto the driveway and in the path of an incoming truck. Citations were issued by OSHA during an inspection performed as a result of this accident. Notices of Violation were issued due to an electrical hazard created by the use of an extension cord with damaged outer insulation, for lack of an Emergency Action Plan, for exposure to a struck-by hazard due to employees walking through vehicular traffic without a high visibility vest, and for machinery being used with an abrasive wheel but without a work rest. Sun Terminals corrected all the violations, replaced the defective machinery and developed a new Emergency Action and Safety Plan, which was implemented on September 28, 2016. Additionally, the company re-identified the designated pedestrian walkways, repainted the pedestrian crossings, and ensured that the guardhouse at the employee and visitor parking lot is always staffed. Mitigated penalties were paid to OSHA in the amount of $11,760. The case was closed on September 30, 2016 after a final inspection. On October 10, 2016, a fatality occurred when a Sun Terminals employee driving a golf cart collided with a tractor trailer in the container yard at Port Everglades. Citations were issued by OSHA for lack of posted stop signs at entrances, exits and intersections; for not implementing vehicular routes or traffic rules in the yard; and for not establishing parking areas. Stop signs were installed and traffic and parking areas were defined. Employees were trained in traffic safety and a new dedicated safety manager was hired. Mitigated penalties were paid to OSHA in the amount of $16,429, and the case was closed on May 15, 2017. Based on Sun Terminal’s responsiveness to the violations, the corrective actions taken, and no reported issues since 2016, staff is satisfied that the franchisee has demonstrated its continued fitness to operate under its franchises at Port Everglades. Notwithstanding, given the previous incidents in 2016, Sun Terminals will continue to be subject to increased oversight and the Sun Terminals franchises will be reviewed again next year as part of the biennial franchise review for the period ending June 30, 2019.
U.S. Security Associates (U.S. Security) has operated at Port Everglades under its marine terminal security service franchise since 2016. No infractions occurred as a result of franchised operations at Port Everglades during the reporting period, however, U.S. Security was issued Notices of Violation by OSHA on March 20, 2018 in Ontario, CA, for not providing separate toilet facilities to male and female workers and for not providing a heat illness prevention plan and adequate potable water supply. Penalties in the amount of $8,710 were assessed by OSHA and paid, and all violations were corrected. On July 13, 2017, in San Bernardino, CA, Notices of Violations were issued by OSHA for exposing workers to vehicular traffic hazards and not maintaining Material Safety Data Sheets for chemicals in the workplace and adequate first aid materials and water supply for the employees. Penalties in the amount of $29,600 were assessed by OSHA and paid, and all violations were corrected. On July 12, 2017, in Tanner, AL, a Notice of Violation was issued by OSHA for employees that were exposed to tipping and crushing hazards while operating a utility vehicle. Penalties in the amount of $12,675 were assessed by OSHA and paid, and the violation was corrected. On January 31, 2018, in Conyers, GA, a Notice of Violation was issued by OSHA for exposing employees to vehicular traffic. Penalties in the amount of $19,401 were assessed by OSHA and paid, and the violation was corrected. Based on U.S. Security’s responsiveness to the violations and the corrective actions taken, staff is satisfied that the franchisee has demonstrated its continued fitness to operate under its franchise at Port Everglades.
World Petroleum Corp. (World Petroleum) has operated at Port Everglades under its vessel oily waste removal franchise since 2003 and under its vessel sanitary waste water removal franchise since 2005. No infractions occurred as a result of franchised operations at Port Everglades during the reporting period, however, during an inspection by the Florida Department of Environmental Protection (FDEP) on July 19, 2017, in Plantation, FL, several violations were found for failure to determine if a waste is hazardous, failure to include EPA ID numbers for the generators of used oil on the acceptance and delivery records, failure to update the contact information in the facility’s Contingency Plan, and failure to notify emergency authorities of the facility’s revised Contingency Plan. Penalties totaling $2,760 were assessed by FDEP and paid. The facility returned to full compliance on August 14, 2017. Based on World Petroleum’s responsiveness to the violations and the corrective actions taken, staff is satisfied that the franchisee has demonstrated its continued fitness to operate under its franchise at Port Everglades.
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. |