Broward County Commission Public Hearing


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AI-16290 1.       
Meeting Date: 04/08/2014  
Director's Name: Steven Cernak Submitted By: Port Everglades
Department: Port Everglades Division: Business Administration

Information
Requested Action
MOTION TO ADOPT Resolution No. 2014-233 of the Board of County Commissioners of Broward County, Florida, granting a non-exclusive franchise to Eller-I.T.O. Stevedoring Company L.L.C., to provide steamship agent services at Port Everglades, for a one-year term commencing April 8, 2014 and ending April 7, 2015, providing for non-discrimination/applicable law; providing for severability; providing for an effective date; and authorizing the Mayor and Clerk to execute the franchise.

ACTION: (T-2:25 PM) Approved.

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 issued pursuant to Chapter 32 of the Broward County Administrative Code.
What Action Accomplishes
It allows franchisee to provide steamship agent services at Port Everglades.
Is this Action Goal Related

Previous Action Taken
The request to set public hearing was approved by the Broward County Board of County Commissioners on March 18, 2014 (Item No. 6).
Summary Explanation/ Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.

Eller-I.T.O. Stevedoring Company L.L.C. (Eller-I.T.O.), a Delaware limited liability company, incorporated in the State of Florida on June 18, 1998. The company has submitted an application for a new steamship agent franchise at Port Everglades. Eller-I.T.O. currently holds a stevedore franchise at Port Everglades for a ten-year term beginning September 13, 2012 and ending September 12, 2022, approved by the Board on August 28, 2012 (PH-Item No. 3).

Port staff has reviewed the steamship agent franchise application against the enumerated issuance criteria set forth in Chapter 32 of the Broward County Administrative Code. Staff’s due diligence included corresponding with the applicant’s representative to clarify franchise requirements, and reviewing the applicant’s corporate status, business history/experience, litigation history, insurance, financial documents and creditworthiness, required licenses, company programs and policies, and statement of intended activities. In addition, the applicant’s environmental history was reviewed, and no environmental violations were found.

Citations issued by the Occupational Safety and Health Administration (OSHA) are described in Section Q of the application. Although not related to steamship agent responsibilities, two citations in March and May 2011, involving fatalities at the Port of Miami, were alleged by OSHA to have occurred as a result of employees being exposed to “struck by” hazards during ship stevedoring activity. One of the violations is still pending and is being contested by the applicant. Although Eller-I.T.O. is contesting the citation, the company has taken a number of actions to decrease the risk of future accidents included enhanced training, establishment of committees, and outreach to other organizations to emphasize the need for comprehensive safety improvements. Specific actions included increasing the frequency and extent of safety audit inspections of vessels worked by its employees; conducting meetings with external organizations to emphasize the need for safety improvements; reporting in writing unsafe or hazardous conditions to vessel owners upon discovery; holding town hall meetings with longshore union members; augmenting and updating training including the company’s Lasher Operations Training Manual covering ramp discharge operations; communicating to its employees the fundamentals of the “fatal five standards,” enforcing strict compliance; setting up a disciplinary “safety violation ticket book” system; conducting review of vessel discharge plans, inspections prior to commencing work and providing additional supervisory oversight to increase safety, training and awareness. No additional or subsequent OSHA citations have been issued. Additionally, no incidents have occurred as a result of stevedore operations at Port Everglades. It is staff’s view that the applicant has been responsive and proactive in its comprehensive efforts to improve safety in ship operations.

Staff has determined that the applicant meets the issuance criteria for a new steamship agent franchise. Steamship agent franchises may be issued for any period of time up to five years. Past practice has been for staff to recommend issuance of a steamship agent franchise for an initial term of one year and each subsequent renewal for a term of up to five years. Accordingly, staff is recommending that the steamship agent franchise be approved for an initial one-year term. As shown in Section R of its application, Eller-I.T.O. is a well-established, diverse stevedoring, cargo handling and materials handling organization and has committed to contributing to the growth of Port Everglades.

The franchise agreement has been reviewed by the Risk Management Division and approved as to form by the Office of the County Attorney. Complete application and supporting documents are on file in the Port Everglades Business Administration Office.

Fiscal Impact
Fiscal Impact/Cost Summary:
Applicant has paid the required application fee of $4,000 and the annual fee of $2,250, for a total of $6,250 for the proposed one-year term. In addition, the applicant has provided a letter of credit in the amount of $80,000 as surety for its stevedore franchise and the proposed steamship agent franchise.
Attachments
Exhibit 1 - Agreement Summary
Exhibit 2 - Resolution
Exhibit 3 - Agreement
Exhibit 4 - Application


    

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