Broward County Commission Regular Meeting


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AI-24690 19.       
Meeting Date: 06/06/2017  
Director's Name: Steven Cernak
Department: Port Everglades Division: Business Administration

Information
Requested Action
MOTION TO ADOPT Resolution No. 2017-305 directing the County Administrator to publish a Notice of Public Hearing to be held August 15, 2017 at 10:00 a.m. in the County Commissioners’ Meeting Room (Room 422), Governmental Center, 115 South Andrews Avenue, Fort Lauderdale, Florida, to consider an application to renew the nonexclusive franchise of AFCO Agency USA LLC to provide cargo handler services for a ten-year term at Broward County's Port Everglades.

ACTION:  (T-10:28 AM)  Approved.
 
VOTE: 8-0.  Commissioner LaMarca was not present.
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 a Public Hearing date to be set and notices to be published twice in local newspapers.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.

This action supports the Board of County Commissioners' Value of "Ensuring economic opportunities for all people and businesses in Broward" and Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."

AFCO Agency USA LLC (AFCO), a Florida Limited Liability Company, was organized on May 13, 2015. The company was formed to provide land-based cargo handling services for its affiliate companies: AYCO Farms, Inc. and AFCO Shipping Line, handling and transporting their proprietary perishable cargo from Central America to Port Everglades. The companies share common ownership. On September 27, 2016 (Item 10-PH), the Board of Broward County Commissioners (Board) awarded a new cargo handler franchise to AFCO for a one-year term commencing on September 27, 2016, and ending on September 26, 2017. AFCO has applied for renewal of their cargo handler franchise and stevedore franchise, the latter being the subject of a separate agenda item.

Port staff has reviewed the 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 renewal criteria for 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 renewal of the cargo handler franchise be approved for a ten-year term.

The franchise agreement has been reviewed by the Port Everglades’ Risk Manager and approved as to form by the Office of the County Attorney. Completed application and supporting documents are on file in the Port Everglades Business Administration Office.
Source of Additional Information
Jorge Hernández, Enterprise Director of Administration, Port Everglades Department, 954-468-3501
Ángela Osorno Belleme, Franchise Manager, Business Administration Division, Port Everglades Department, 954-468-0112

Fiscal Impact
Fiscal Impact/Cost Summary:
Applicant has paid the required annual franchise fee of $4,000 and will pay an additional $36,000 for the remainder of the term, for a total of $40,000 for the proposed ten year term.
Attachments
Exhibit 1 - Agreement Summary
Exhibit 2 - Resolution
Exhibit 3 - Notice to Publish
Exhibit 4 - Agreement
Exhibit 5 - Application


    

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