THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This proposed Amendment No. 2 to the Agreement is effective retroactive to March 1, 2013, and will extend the term of the Agreement for five additional years through February 28, 2018 to allow Delta to continue their GSE maintenance operations at FLL.
On February 26, 2008 (Item No. 3), the Board approved the Agreement between Broward County (County) and Delta for an existing facility on the north side of FLL for GSE maintenance operations, with a termination date of February 28, 2013.
On March 1, 2010, the Director of Aviation, in accordance with Chapter 39.4(e), approved Amendment No. 1 to the Agreement which reduced the security deposit requirement from four to three monthly installments of rent.
Prior to the negotiation of Amendment No. 2, the Broward County Aviation Department (BCAD) relocated the Gate 100 vehicular access point to the Airport Operations Area (AOA). As a result of the Gate 100 relocation, new AOA security fences were constructed which reconfigured Delta's leased premises. Due to the Gate 100 impact, a new boundary survey of Delta's premises was required in order to determine the new legal boundary of the parcel.
Based on the new boundary survey, which was completed in early 2013, 7,077 square feet of land was added to the parcel. Therefore, the Agreement needed to be amended to incorporate the revised premises. BCAD and Delta could not finalize negotiations of Amendment No. 2 until completion of the boundary survey.
In addition to the Gate 100 reconfiguration, the Florida Department of Environmental Protection (FDEP) was finalizing a Declaration of Restrictive Covenants (DoRC) to be recorded against the premises. The DoRC places certain restrictions and obligations on the leased premises. The DoRC was a requirement of FDEP due to environmental conditions occurring prior to Delta's lease of the premises.
The Gate 100 reconfiguration and FDEP requirements for the DoRC process extended negotiations for Amendment No. 2 beyond the February 28, 2013, expiration of the original Agreement. However, Delta continued to pay monthly rental fees since the expiration of the original Agreement. In addition, Delta has paid the retroactive amount due from March 1, 2013 for the 7,077 square feet of land added to the premises, and also for Consumer Price Index (CPI) adjustments due for March 1, 2013 and March 1, 2014. Delta is current on all insurance requirements and security deposit requirements.
In addition to the amended language described above, Section 2 of the Agreement was amended to acknowledge that this is a non-aeronautical agreement. Further, Section 7 and Section 12 of the Agreement were amended to update the insurance requirements pursuant to the standards set forth by the Broward County Risk Management Division.
The amount referenced in this agenda has been rounded to the nearest whole dollar. Delta's payments will be based on the actual amount payable under the Agreement. The Agreement Summary Sheet reflects the actual amount payable. |