Broward County Commission Regular Meeting
Director's Name: Glenn Wiltshire (Acting Director)
Department: Port Everglades Division: Business Development
Information
Requested Action
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MOTION TO ADOPT Resolution directing the County Administrator to publish Notice of Public Hearing to be held on April 16, 2024, at 10:00 a.m. in Room 422 of Governmental Center East, to consider the assignment of a nonexclusive, unrestricted vessel oily waste removal services franchise from Raider Environmental Services of Florida, Inc., to Heritage-Crystal Clean, LLC at Port Everglades for the remainder of the five-year franchise term which expires on October 26, 2026.
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Why Action is Necessary
Pursuant to Section 32.22 of the Broward County Administrative Code (“Administrative Code”) and the applicable provisions of Chapter 94-429, Laws of Florida, Broward County (the “County”) must hold a public hearing prior to granting, renewing, placing on probation, suspending, or revoking a franchise, and pursuant to Section 32.26 of the Administrative Code, a franchise shall not be assigned without the written consent of the County.
What Action Accomplishes
Enables the setting of a public hearing during which the Broward County Board of County Commissioners’ may consider adopting the proposed Resolution granting the assignment of a nonexclusive, unrestricted Port Everglades vessel oily waste removal services franchise to Heritage-Crystal Clean, LLC, for the remainder of the five-year term.
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Previous Action Taken
None
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action 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 economic opportunities and a sustainable economy, with an emphasis on Broward’s lower and middle class.”
On September 21, 2021 (Item No. 45), the Board granted the renewal of a nonexclusive, unrestricted vessel oily waste removal services franchise to Raider Environmental Services of Florida, Inc. ("Raider"), for a five-year term from October 27, 2021, through October 26, 2026. On February 25, 2022, staff acknowledged receipt of the notification of the purchase of 100% stock of Raider by Heritage-Crystal Clean, LLC (“Heritage”), thereby making Raider a wholly owned subsidiary of Heritage. On September 27, 2023, Port staff received a request from Heritage to transfer all of Raider’s vessel oily waste removal service operations to Heritage and requesting the franchise assignment. Subsequent to that request, Heritage applied for a nonexclusive, unrestricted franchise to provide vessel oily waste removal service at Port Everglades for the remainder of the five-year term. Heritage is an Indiana limited liability company registered to conduct business in the State of Florida since October 14, 2002.
Staff reviewed the vessel oily waste removal services franchise application against the enumerated criteria outlined in Chapter 32 of the Administrative Code. Staff's due diligence included, among other things: (a) corresponding with Heritage’s representative to clarify franchise requirements; (b) reviewing Heritage’s corporate status, resumes of executive staff, list of managerial personnel, business history/experience, litigation history, insurance certificate(s), financial documents and creditworthiness, discharge of previous financial obligations to the County, compliance with all franchise terms and conditions and established rules and regulations of the County, required licenses and certificates, company programs and policies, and list of equipment to be used at Port Everglades; and (c) the ability to promote and develop growth in the business activities, projects, or facilities of Port Everglades.
Heritage disclosed 18 violations in Section Q of the application. Notices of violations were issued from the different state environmental agencies in the states where they occurred, dating from 2018 to 2023, and Heritage was assessed a total of $49,640 in penalties. Only one of the violations took place in Florida on November 19, 2018, in Pompano Beach/Fort Lauderdale, for a Spill Prevention Control and Countermeasure (SPCC) manifest and inspection violation, that resulted in a penalty of $3,840, which Heritage paid. Staff also reviewed Heritage's safety history and found that the Occupational Safety and Health Administration (OSHA) opened three cases, two in Michigan for Hazardous Waste Treatment and Disposal and one in Georgia, for Hazardous Waste Collection; all three cases were closed.
By submitting the signed franchise application, Heritage has agreed to comply with all franchise conditions outlined in Section 32.24 of the Administrative Code.
Based on the review of information provided in the franchise application, staff recommends consenting to the assignment of the vessel oily waste removal services franchise. Per Section 32.26 of the Administrative Code, the County may consent to assign the vessel oily waste removal services franchise. Consistent with past practice, staff recommends assigning the franchise to Heritage for the remainder of the five-year term.
Source of Additional Information
Jorge Hernández, Director, Business Development Division, Port Everglades Department, (954) 468-3501
Paula Serpa, Franchise and Business Permit Manager, Business Development Division, Port Everglades Department, (954) 468-0185
Fiscal Impact
Fiscal Impact/Cost Summary
Heritage has paid the required assignment fee of $4,200 and will pay an additional $4,720 in annual franchise fees over the remainder of the franchise term, for a total of $8,920.