Broward County Commission Regular Meeting
Director's Name: Jonathan Daniels
Department: Port Everglades Division: Director's Office
Information
Requested Action
title
MOTION TO APPROVE waiver of the Minimum Guaranteed Payment shortfall totaling $1,698,667 for Crowley Liner Services, Inc. for container shipmoves at Port Everglades for the period from April 2020 through April 2021 to account for COVID-19 pandemic-related impacts.
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Why Action is Necessary
Action by the Broward County Board of County Commissioners is required to waive minimum guaranteed payment shortfalls in marine terminal lease and operating agreements.
What Action Accomplishes
Waives the shortfall in minimum guaranteed payments resulting from the impacts of COVID-19 on Crowley's Latin America container services.
Is this Action Goal Related
Yes
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 "Ensuring economic opportunities for Broward's diverse population and businesses" and the Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
Crowley Liner Services, Inc. ("Crowley"), has operated at Port Everglades since 1990. Crowley's most recent Marine Terminal Lease and Operating Agreement ("Agreement") was approved by the Board on June 14, 2016 (Item No. PH-5), for an initial term of ten years with two five-year options, with a retroactive commencement date of May 1, 2016. On November 2, 2017, the Port Everglades Chief Executive/Port Director executed the First Amendment to the Agreement, reducing the size of Crowley's leasehold to 78 acres and modifying the shipmove rates and Minimum Annual Guaranteed Shipmoves based upon the amount of acreage surrendered. On February 26, 2019 (Item No. 32), the Board approved the Second Amendment...
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