Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Business Development
Information
Requested Action
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MOTION TO ADOPT Resolution of the Board of County Commissioners of Broward County, Florida, granting renewal of a nonexclusive, unrestricted Port Everglades cargo handler services franchise to Sun Terminals, Inc., for a new ten-year term; providing for franchise terms and conditions.
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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.
What Action Accomplishes
Allows for the Broward County Board of County Commissioners’ (“Board”) consideration of the Resolution granting renewal of a nonexclusive, unrestricted Port Everglades cargo handler services franchise to Sun Terminals, Inc., for a new ten-year term.
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Previous Action Taken
Request to Set Public Hearing was approved by the Board on May 6, 2025 (Item No. 20).
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.”
Sun Terminals, Inc. (“Sun Terminals”) has held franchises at Port Everglades since June 1994. On May 12, 2015 (Item No. 4), the Board approved a nonexclusive, unrestricted cargo handler services franchise for Sun Terminals commencing on June 2, 2015, through June 1, 2025. Sun Terminals has applied for renewal of the franchise. Sun Terminals has also applied for renewal of its nonexclusive, unrestricted stevedore services franchise, which is the subject of a separate agenda item.
Staff reviewed the cargo handler services franchise renewal application against the enumerated renewal criteria outlined in Chapter 32 of the Administrative Code. Staff's due diligence included, among other things: (a) corresponding with Sun Terminals’ representative to clarify franchise requirements; (b) reviewing Sun Terminals’ 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, list of equipment to be used at Port Everglades, and statement of activities and actions indicating that Sun Terminals has maintained a favorable service performance record in Port Everglades during the term of its prior franchise agreements; and (c) ensuring that Sun Terminals has promoted and developed growth in the business activities, projects, or facilities of Port Everglades. Staff also reviewed Sun Terminals’ environmental history and found no infractions.
During the periodic franchise review of Sun Terminals' safety history, staff found a violation that was contested and subsequently deleted. A fatal accident occurred in Port Everglades on a vessel at Berth 32 on October 10, 2022. On April 19, 2023, the Occupational Safety and Health Administration (“OSHA”) issued a serious citation and fines. Sun Terminals contested the citation on May 12, 2023. On April 15, 2024, the Secretary of Labor and Sun Terminals filed a joint Notification of Settlement with the Occupational Safety and Health Review Commission, acknowledging that they had resolved all contested citation items and that the citation and fines were dismissed. Sun Terminals took corrective actions subsequent to this incident, including: retraining employees on 3-way communications and working under a suspended load.
By submitting the signed franchise application, Sun Terminals 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 renewal application, staff recommends renewing the cargo handler services franchise. Per Section 32.16 of the Administrative Code, the County may grant cargo handler services franchises for up to ten years. Consistent with past practice, staff recommends renewing the franchise for a ten-year term.
The Resolution to Publish Notice of Public Hearing and the signed franchise application documents are attached to the Request to Set Public Hearing Agenda Item (Item No. 20) that the Board approved on May 6, 2025.
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
Sun Terminals has paid the required annual fee of $4,200 and will pay an additional $37,800 in annual franchise fees over the franchise term, for a total of $42,000.