Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Director’s Office
Information
Requested Action
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A. MOTION TO APPROVE Grant Agreement No. 693JF72540011 between Broward County (“County”) and the U.S. Department of Transportation Maritime Administration (“MARAD"), with MARAD agreeing to grant up to $53,357,402 under the Fiscal Year 2024 Port Infrastructure Development Program (“PIDP”) for the Port Everglades Regional POWER (Port Operations With Efficiency and Reliability) Project, and County agreeing to secure a commitment of at least $24,992,001 (32%) in non-federal funds from two subrecipients; to authorize the County Administrator to execute any subsequent change order(s), supplemental(s), amendment(s), and certifications requested by MARAD relating to the grant agreement, provided there is no material increase in risk or cost to County, subject to review for legal sufficiency by the Office of the County Attorney; to authorize the Port Everglades Chief Executive Officer and Port Director to take ministerial actions to satisfy regular and routine reporting requirements of the Grant, including the execution and submission of reports and forms that do not present a material increase in risk or cost, subject to review for legal sufficiency by the Office of the County Attorney; and to authorize the County Administrator to take the necessary administrative and budgetary actions to implement and administer the grant agreement.
B. MOTION TO APPROVE Three Party Escrow Agreement between Broward County, Port Everglades Terminal, LLC (Subrecipient), and an Escrow Agent, in substantially the form attached as Exhibit 2, providing for Subrecipient’s deposit of 10% of the amount attributable to non-construction costs for each reimbursement request under the Grant into an escrow account to be held as security to ensure compliance by Subrecipient with all grant and subgrant requirements; and authorize the County Administrator to execute same and any required amendments or other documents necessary to effectuate the Escrow Agreement, provided the document at issue does not impose any additional material legal or financial risk on the County, and subject to review and approval as to legal sufficiency by the Office of the County Attorney.
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Why Action is Necessary
Pursuant to Section 20.31(b)(3) of the Broward County Administrative Code, grant agreements to be executed by Broward County must be submitted to the Board of County Commissioners for approval.
What Action Accomplishes
Approves the grant agreement to enable the County to accept this grant funding from MARAD once the grant is executed by MARAD, delegates authority to the County Administrator and Port Everglades Chief Executive Officer and Port Director to perform numerous grant administration functions, and approves the substantial form of a three party escrow agreement as a vehicle for a subrecipient to provide surety.
Goal Related Icon(s)
☒County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioner’s (“Board”) Value of “Building partnerships and working collaboratively with others to meet shared objectives,” and the Goals of ”Ensuring economic opportunities and a sustainable economy, with an emphasis on Broward's lower and middle class,” and ”Ensuring accessible, seamlessly integrated investments in renewable energy, sustainable practices, manufacturing, resilient infrastructure, and environmental protection.”
On May 7, 2024 (Item No. 15), the Board approved the substantial form of two Memoranda of Understanding (“MOUs”): one with Crowley Liner Services, Inc. (“Crowley”) and one with Mediterranean Shipping Company S.A. (“MSC”), and authorized the Port Everglades Chief Executive Officer and Port Director to execute the MOUs. Each MOU set forth the general framework for a joint application for a Fiscal Year 2024 Port Infrastructure Development Program (“PIDP”) grant, with the County acting as the lead applicant and Crowley and MSC acting as subrecipients.
Pursuant to the MOUs, the subrecipients and County will be executing Subgrant Award Agreements in substantially the form approved by the Board on October 25, 2022 (Item No. 17), with execution by the County Administrator under the authority delegated by the Board at that meeting.
On May 10, 2024, Broward County submitted the Fiscal Year 2024 PIDP grant application, and on May 24, 2024, the Port Everglades Chief Executive Officer and Port Director executed the two MOUs.
On December 9, 2024, Broward County was notified of a grant award totaling up to $53,357,402 of Federal funds to Port Everglades, requiring a non-Federal match of at least $24,992,001 (32%).
From December 17, 2024, to October 15, 2025, Broward County and the subrecipients completed due diligence for a NEPA Categorical Exclusion, National Historic Preservation Act Section 106 review, and Engineering Risk Register submissions. There were some time delays resulting from a change in Administration leadership, requiring a pivot in equipment types and resiliency efforts.
On May 6, 2025 (Item No. 42), the Board approved a new Marine Terminal Lease and Operating Agreement with Everglades Company Terminal, Inc. (“ECT”), a subsidiary of MSC, and ECT requested that the grant subrecipient be changed from MSC to the ECT terminal operator, Port Everglades Terminal, LLC (“PET”).
On October 15, 2025, Broward County submitted a scope modification to MARAD on behalf of both subrecipients intended to align with Administration’s priorities and policies that would also capture opportunities to purchase alternative cargo handling equipment (“CHE”) similar in function to the CHE included in the original grant application that will streamline the efficiency and capacity in operational strategies. On January 16, 2026, MARAD approved the scope modification.
This grant will be used by the subrecipients for the Port Everglades Regional POWER (Port Operations With Efficiency and Reliability) Project, which includes both permanent improvements to the facilities and the purchase of new CHE to reduce air emissions. The non-federal funding match for the grant agreement will come from the subrecipients. However, since the County is the grant recipient, the subrecipients will be required to provide a surety for 10% of the non-construction costs of the grant to ensure grant compliance and protect the County if there are any requests from MARAD for grant funds to be returned. PET has indicated the intent to meet the surety requirements through a Three-Party Escrow Agreement, and Crowley intends to use a Performance Bond.
The proposed grant agreement requires acceptance of MARAD’s General Terms and Conditions, which have been reviewed and approved as to form by the Office of the County Attorney. These General Terms and Conditions impose various obligations, including reporting requirements, as a condition of funding. MARAD will execute the grant agreement after approval by the County.
Source of Additional Information
David Anderton, AICP, PPM, Assistant Director, Port Everglades Department (954) 468-0144
Fiscal Impact
Fiscal Impact/Cost Summary
There is no cost to the County. This grant is funded by MARAD under the Fiscal Year 2024 PIDP and will offset up to $53,357,402 of the cost to subrecipients. The 32% of matching funds ($24,992,001) will come from the subrecipients. Port Everglades will receive payments from the grant subrecipients over the term of the subgrant award agreements totaling $425,000 to defray the County costs for grant administration.