THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL OF THE MOTIONS.
The item supports the Commission's Vision and Goals for "Unlimited Economic Opportunities," to increase the economic strength and impact of Port Everglades, the Broward County Convention Center and the Fort Lauderdale-Hollywood International Airport in a sustainable manner balancing economy, environment, and the community.
On March 20, 2012 (PH-Item No. 21), the Board approved the Port Everglades Intermodal Container Transfer Facility (ICTF) Lease and Operating Agreement between Broward County and the Florida East Coast Railway, L.L.C. (FEC) to construct an ICTF in the Southport area of Port Everglades. To facilitate the movement of international cargo into and out of the ICTF to port marine cargo terminals, the FEC is constructing the infrastructure for radiation portal monitors (RPMs) at the cargo entrance to the ICTF at the south end of the facility. The cost for this infrastructure is being shared by the FEC and Broward County as provided for in the First Amendment to Port Everglades Intermodal Container Transfer Facility (ICTF) Lease and Operating Agreement Between Broward County and the Florida East Coast Railway. L.L.C. (FEC) approved by the Board on January 14, 2014 (PH-Item No. 1). In addition to constructing the RPM facilities, the Port is also responsible for funding the IT infrastructure necessary to outfit the facility. As is indicated in the MOA (Exhibit 3), the estimated costs to outfit the RPM facility at the ICTF is not to exceed $78,814, along with a recurring annual expense of an estimated $8,400 to provide the data network connectivity to the terminal. The MOA also provides that the local sponsor must agree to fund CBP equipment upgrades required by CBP with 180 days notice. As noted in the MOA, CBP expects this to occur every 3 to 5 years. While the Port will also be responsible for equipment maintenance costs, CBP does not anticipate significant maintenance expenses since the equipment will be covered by warranties.
On February 4, 2014 (Item No. 21), the Board approved the agreement between Broward County and Moss & Associates, LLC for the renovations of Cruise Terminal 4. As part of these renovations, the Port is required to upgrade the Federal Inspection Services (FIS) area used by US 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, due to a recent CBP policy change, the owner is also responsible for reimbursing CBP for the cost of equipping the facility with the information technology infrastructure required to operate the FIS, as well as to commit to reimburse CBP for future IT costs associated with operating the facility. CBP requires local terminal owners to execute a Memorandum of Agreement committing to paying these costs before they will proceed with outfitting the facility. As is indicated in the MOA (Exhibit 4), the estimated costs to outfit the FIS at Cruise Terminal 4 shall not exceed $369,151, along with a recurring annual expense of an estimated $24,122 to provide the data network connectivity to the terminal. The MOA also provides that the terminal owner must agree to fund CBP equipment upgrades required by CBP with 180 days notice. As noted in the MOA, CBP expects this to occur every 3 to 5 years. While the Port will also be responsible for equipment maintenance costs, CBP does not anticipate significant maintenance expenses since the equipment will be covered by warranties.
The MOAs have been reviewed by the Risk Management Division and 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 MOAs that Port staff will accept after Board approval of the MOAs. Per standard practice, CBP will execute the MOAs after Board approval.
While Port staff has concerns with these additional Federal requirements, staff level discussions over the past year have not changed CBP's position: they will not proceed with procuring the required IT equipment for the facilities until the MOAs are executed. The Broward County Federal Legislative Program approved by the Board on February 25, 2014 (Item No. 8), included an appropriations request for $1.5 million to reimburse the County for the construction and IT costs incurred for the radiation portal monitors. |