THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Board of County Commissioners' 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."
Lank Oil Company (Lank) was incorporated in the State of Florida on September 16, 1971, and began doing business in Broward County as a Citgo Consignee. Lank’s primary service offering was the transport of fuel and motor oil to clients in Miami-Dade, Broward and Palm Beach Counties. Over the years, Lank has represented Philips 66, Unocal, BP and Fina, as well as the unbranded products of Marathon, TransMontaigne and Pure. In 2001, Lank added tank wagon fuel delivery to its services, delivering fuel to yachts in the tri-County area. On May 23, 2017 (Item No.51-PH), the Board approved Lank’s vessel bunkering franchise for an initial term of one year, from May 23, 2017, through May 22, 2018. Lank has submitted an application for renewal of the nonexclusive franchise for a five-year term, from May 23, 2018, through May 22, 2023.
Port staff has reviewed the vessel bunkering service franchise application against the enumerated renewal criteria set forth in Chapter 32 of the Broward County Administrative Code. Staff’s due diligence included corresponding with Lank's representative to clarify franchise requirements and reviewing Lank's corporate status, resumes of executive staff and list of managerial personnel, business history/experience, litigation history, insurance, financial documents and creditworthiness, discharge of previous financial obligations to County, compliance with all franchise terms and conditions, required licenses and certificates, U.S. Coast Guard-approved operations and oil spill contingency plans, company programs and policies, list of equipment to be used at Port Everglades, statement of intended activities, and actions to promote and develop business growth at Port Everglades. In addition, Lank's safety and environmental history was reviewed, and findings are included under Section Q of the application. No infractions occurred as a result of operations at Port Everglades. A Notice of Violation was issued by the U.S. Coast Guard on August 26, 2013, for failing to provide an oil spill exercise program containing announced and unannounced exercises, and for failure to maintain exercise records at the facility for the required three years. A penalty of $350 was assessed as a result of the infraction. Lank corrected the deficiencies and the case was closed on April 25, 2014. Staff concluded that Lank acted promptly and responsibly to resolve the deficiencies documented in Section Q of the application.
Based on the information provided in the application and staff’s review, staff has determined that Lank meets the criteria for renewal of a vessel bunkering service franchise. Vessel bunkering service franchises may be granted for any period of time up to five years. Past practice has been for staff to recommend granting the renewal of a vessel bunkering service franchise for a term of five years. Accordingly, staff is recommending that the franchise be renewed for a five-year term. The complete application and supporting documents are on file in the Port Everglades Business Administration Division.
To allow for a more efficient franchise approval process, the Resolution granting a franchise (see Exhibit 1) has been modified to incorporate the franchise terms and conditions previously included in the franchise agreement, thus eliminating the need for a separate franchise agreement. Lank has, through the submission of the signed franchise application, agreed to comply with all franchise conditions set forth in Section 32.24 of the Broward County Administrative Code and in the Resolution. Once the Resolution is approved by the Board, the Port will, pursuant to Section 32.27 of the Broward County Administrative Code, issue a franchise certificate setting forth the terms and conditions of the franchise.