THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
On September 24, 2013 (Item No. 12-PH), the Broward County Board of County Commissioners granted a non-exclusive franchise to Chiquita Fresh North America, L.L.C. (Chiquita), to provide cargo handler services at Port Everglades, for a one-year term commencing September 24, 2013 and ending September 23, 2014. The franchise was restricted for the first year to cargo handler services for proprietary cargo owned by Chiquita Fresh North America, L.L.C. and for cargo handled on vessels owned or chartered by Chiquita Fresh North America, L.L.C. The company has applied for renewal of its franchise.
Chiquita Fresh North America, L.L.C. (Chiquita), a Delaware corporation, has been active in the importing of fresh fruit and vegetables at Port Everglades for ten years. The company, which has held a marine terminal lease and operating agreement since August 26, 2003 (Item No. 1-PH), recently exercised its first option to extend its lease for an additional five years, commencing October 1, 2013. Chiquita’s volumes have grown during its initial term, increasing from 264,000 short tons its first year to 437,000 short tons last fiscal year, accounting for 7.2% of the Port’s containerized cargo throughput.
Port staff has reviewed the cargo handler 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 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.
Staff has determined that the applicant meets the criteria for renewal of a cargo handler franchise. Cargo handler franchises may be issued for any period of time up to ten years. Past practice has been for staff to recommend issuance of a cargo handler franchise for an initial term of one year and each subsequent renewal for a term of up to ten years. Accordingly, staff is recommending that the cargo handler franchise be renewed for a ten-year term, without the previously imposed restriction.
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. |