Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Business
Information
Requested Action
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MOTION TO APPROVE Sixth Amendment to the First Amended and Restated Business Technology Service Centers Concession Agreement between Broward County and Fort Lauderdale Business and Currency Services, LLC to, among other things, extend the term of the Agreement by one year; and authorize the Mayor and Clerk to execute.
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Why Action is Necessary
In accordance with Chapter 26.4 of the Broward County Administrative Code, extensions to Concession Agreements require Broward County Board of County Commissioners (“Board”) approval.
What Action Accomplishes
Approves the Sixth Amendment to the First Amended and Restated Business Technology Service Centers Concession Agreement (“Agreement”) between Broward County (“County”) and Fort Lauderdale Business and Currency Services, LLC (“FLBCS”).
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
On February 27, 2018 (Item No. 65), the Board approved the Agreement for the non-exclusive right to operate a Business Technology Service Concession at the Fort Lauderdale-Hollywood International Airport (“FLL”). The Agreement commenced on April 1, 2018, with a termination date of March 31, 2023. The Agreement required a capital expenditure of no less than $200,000.
On September 29, 2020, the County Administrator, authorized by Board action on June 16, 2020 (Item No. 68), approved the First Amendment to the Agreement to waive the monthly Minimum Annual Guarantee (“MAG”) portion of the Privilege Fee payments for the months of April 2020, May 2020, and June 2020, resulting in a total MAG waiver amount of $61,626. MAG relief was provided through the Coronavirus Aid, Relief, and Economic Security Act.
On September 29, 2021, the County Administrator, authorized by Board action on June 1, 2021 (Item No. 70), approved a Second Amendment to the Agreement providing for MAG relief in the amount of $246,507 for the County’s 2021 Fiscal Year. MAG relief was partially funded by the Coronavirus Response and Relief Supplemental Appropriate Act
in the amount of $16,248 and the remaining was funded by other unrestricted FLL funds in the amount of $230,259.
On June 1, 2022, the Director of Aviation, authorized by Board action on January 25, 2022 (Item No. 64), approved the Third Amendment to the Agreement providing rent and MAG relief in the amount of $108,251. MAG relief was provided through the American Rescue Plan Act of 2021.
On March 14, 2023 (Item No. 55), the Board authorized the Fourth Amendment to the Agreement, which extended the Agreement for an additional three years, with an option for a one-year renewal.
On August 21, 2025 (Item No. 4), the Board authorized the Fifth Amendment to the Agreement to adjust the MAG to $130,000 for Contract Year Seven and modify the Assigned Areas.
The Fourth Amendment provided for a three year Extension Period terminating on March 31, 2026, with a one year Option Period that could be exercised if FLBCS completed an additional Minimum Capital Expenditure of $40,000, to be used to remove the old currency exchange kiosk in Terminal 4 and install a new one.
The demand for foreign currency exchange services at FLL has not returned to pre-pandemic levels and has continued to decrease. Additionally, Automated Teller Machine (“ATM”) utilization continues to decrease, reducing the revenue generated from ATM fees, as more passengers opt to use cashless and contactless payment methods. Based on this trend, FLBCS determined that further capital investment in this service would not be a fiscally responsible use of funds. The Broward County Aviation Department (“BCAD”) has reviewed the concession’s activity levels, and combined with the declining international traffic, determined it would be appropriate to remove the additional Minimum Capital Expenditure requirement added by the Fourth Amendment, and extend the term of the Agreement with FLBCS for an additional year. BCAD staff intends to explore other procurement opportunities during this time frame.
The proposed Sixth Amendment extends the current Agreement for the additional one year without FLBCS being required to make the $40,000 additional Minimum Capital Expenditure. The proposed Sixth Amendment has been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Mark E. Gale, A.A.E., CEO/Director of Aviation Department, 954-359-6199
Fiscal Impact
Fiscal Impact/Cost Summary
FLBCS will pay the County the greater of 85% of the annual Privilege Fee or previous Contract Year Seven’s MAG in the amount of $130,000.