Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Director’s Office
Information
Requested Action
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MOTION TO APPROVE Memorandum of Understanding (“MOU”) between Broward County and Florida International Terminal, LLC (“FIT”) for the U.S. Department of Transportation (“USDOT”) grant application through the Port Infrastructure Development Program (“PIDP”), for which Broward County is the lead applicant, in substantially the proposed form; and authorize the Port Everglades Chief Executive/Port Director to execute the final MOU, subject to nonmaterial modifications and subject to review as to legal sufficiency by the Office of the County Attorney.
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Why Action is Necessary
Board approval is required for the substantial form of the MOU and delegation of execution authority to the Port Everglades Chief Executive/Port Director.
What Action Accomplishes
Approves the substantial form of the MOU as required by the Notice of Funding Opportunity (“NOFO”) for the 2025 USDOT PIDP Federal Grant application and delegates execution authority for the MOU to the Port Everglades Chief Executive/Port Director.
Goal Related Icon(s)
☒County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This item supports the Broward County Board of County Commissioners’ (“Board”) Value of “Building partnerships and working collaboratively with others to meet shared objectives” and the Goal of “Ensuring accessible, seamlessly integrated investments in renewable energy, sustainable practices, manufacturing, resilient infrastructure, and environmental protection.”
Broward County (“the County”) holds a Marine Terminal Lease and Operating Agreement (“MTLOA”) with Florida International Terminal, LLC (“FIT”) for a marine container terminal within the Southport area of Port Everglades. FIT has an interest in making improvements to their marine terminal within the framework of the MTLOA, with a focus on safety, efficiency, and reliability through resilient infrastructure.
The Infrastructure Investment and Jobs Act, Pub. L. 117-58, authorized and appropriated $450 million to be awarded by the United States Department of Transportation (“USDOT”), Maritime Administration (“MARAD”) through a competitive grant program for projects for coastal seaports for Fiscal Year 2025. MARAD issued a Notice of Funding Opportunity (“NOFO”) for the Port Infrastructure Development Program Grant (“PIDP Grant”) on December 20, 2024, with applications due April 30, 2025. The PIDP Grant allows for an eligible applicant, such as the County, to apply jointly as the lead applicant with a private entity or group of private entities. The County has agreed with FIT to jointly apply for PIDP Grant funding for the purchase of low or zero emission equipment, with a focus on reducing carbon emissions, greater energy efficiency, and incorporation of electrification and zero emissions vehicle infrastructure, while also creating good-paying jobs. As required in Section D.3.a of the NOFO, the grant application must include a description of the roles and responsibilities of each applicant. Inclusion of the MOU with FIT in the PIDP Grant application package will meet that requirement.
The MOU provide that the entire non-federal cost share of the project (minimum 20% of project costs), including any County costs for financial administration of the grant, will be borne by FIT. While the grant application is still being finalized, the estimated grant request will be for $9 million in federal funding. The MOU further clarifies additional roles and responsibilities of the parties, including procurement, maintenance, and ownership of improvements and equipment. Additionally, the MOU requires that FIT execute a Subgrant Award Agreement with the County upon award of the grant. The form for the Subgrant Award Agreement and associated Subgrant Award Terms and Conditions is attached as an exhibit to the MOU and is based on the forms approved by the Board on October 25, 2022 (Item No. 17). Per that item, the County Administrator is authorized to approve non-substantive changes to these forms and execute these agreements subsequent to grant award.
Due to the possibility of upcoming changes to the NOFO, staff is still working with counsel from FIT and the Office of the County Attorney to finalize the MOU. Approval of the substantial form of the MOU by the Board will allow the MOU to be completed and executed by all parties prior to submission of the PIDP Grant application to MARAD on April 30, 2025.
On May 7, 2024 (Item No. 15), the Board approved similar MOUs between Broward County as the lead applicant and Crowley Liner Services, Inc (“Crowley”) and Mediterranean Shipping Company, S.A. (“MSC”) as the joint applicants for the 2024 PIDP grant. USDOT announced a grant award in November 2024 of $53,357,402 for that project, and staff continues to work with MARAD, Crowley, and MSC to meet all requirements before completion of the grant agreement.
Source of Additional Information
J. David Anderton II, PPM, AICP, Assistant Director of Port Everglades, 954-468-0144, danderton@broward.org
Fiscal Impact
Fiscal Impact/Cost Summary
None