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Item C34 C.34 J �� BOARD OF COUNTY COMMISSIONERS County of Monroe ire �f �r�l � � Mayor Heather Carruthers,District 3 IleOI1da Keys Mayor Pro Tem Michelle Coldiron,District 2 Craig Cates,District I David Rice,District 4 Sylvia J.Murphy,District 5 County Commission Meeting July 15, 2020 Agenda Item Number: C.34 Agenda Item Summary #7096 BULK ITEM: Yes DEPARTMENT: Airports TIME APPROXIMATE: STAFF CONTACT: Richard Strickland (305) 809-5200 No AGENDA ITEM WORDING: Approval of Renewal and Second Amendment to the Customs Service Agreement between Monroe County and the Marathon Jet Center renewing agreement for three (3) years and adding language to the agreement that the Airport will be responsible for absorbing the cost difference increase from the flat rate salary to the new full cost recovery rate for the CBP Officer assigned to the Florida Keys Marathon International Airport. ITEM BACKGROUND: To remain compliant with regulations, Customs recently changed from a flat rate salary to a full cost recovery rate for the CBP officer assigned to the Airport. The Airport will absorb the increased costs of approximately $70,000.00/year. PREVIOUS RELEVANT BOCC ACTION: The County entered into a Customs Service Agreement with the Marathon Jet Center(FBO) at the Florida Keys Marathon International Airport on April 16, 2014. The Agreement set forth the operational and financial responsibilities of the County and the Marathon Jet Center. The Agreement also required that the Marathon Jet Center reimburse the County for operational costs. On March 23, 2016, the First Amendment was approved to clarify that operational costs would not transition from the County to the provider until the Customs Service facility became operational. CONTRACT/AGREEMENT CHANGES: Renews agreement for three years and clarifies that the Airport will absorb increased cost difference in Officer's salary from flat rate to new full cost recovery rate. STAFF RECOMMENDATION: Approval DOCUMENTATION: MJC - Customs Service Agr- 2nd Amendment FINANCIAL IMPACT: Packet Pg. 1309 G.34 Effective Date: Expiration Date: Total Dollar Value of Contract: $70,000 Total Cost to County: -0- Current Year Portion: Budgeted: Yes Source of Funds: Airport Operating Fund 403 CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: No If yes, amount: Grant: County Match: Insurance Required: No Additional Details: REVIEWED BY: Beth Leto Completed 06/30/2020 12:03 PM Richard Strickland Completed 06/30/2020 12:09 PM Pedro Mercado Completed 06/30/2020 12:18 PM Purchasing Completed 06/30/2020 1:21 PM Budget and Finance Completed 06/30/2020 2:05 PM Maria Slavik Completed 06/30/2020 2:16 PM Kathy Peters Completed 07/01/2020 11:02 AM Board of County Commissioners Pending 07/15/2020 9:00 AM Packet Pg. 1310 C.34.a RENEWAL AND SECOND AMENDMENT TO CUSTOMS SERVICE AGREEMENT FLORIDA KEYS MARATHON AIRPORT MARATHON JET CENTER, INC. THIS RENEWAL AND SECOND AMENDMENT is made and entered into this day of , 2020 by and between Monroe County, a political subdivision of the State of Florida, whose address is 1100 Simonton Street, Key West, FL 33040, hereafter"County", and Marathon Jet Center, Inc., a Florida corporation, whose address is 8800 Overseas Highway, Marathon, FL 33050, hereafter "Provider". m WITNESSETH : WHEREAS,the County owns property known as the Florida Keys Marathon Airport, located in Marathon, Monroe County, Florida, hereinafter referred to as "Airport"; and ca CL WHEREAS, on the 16th day of April 2014 the County and Marathon Jet Center entered into an Agreement (hereafter Original Agreement) setting forth each parry's responsibilities for the provision of Customs service at the Airport, as amended on March 23, 2016; and w WHEREAS, it was the intent of the parties that the established user fee would cover Customs .E Services operating expense; and �t WHEREAS, to remain compliant with regulations, Customs and Border Protection (CBP) recently changed from a flat rate salary to a Full Cost Recovery rate for the CBP Officer assigned to the Airport; and WHEREAS,the County and the Provider wish to renew the agreement for the remaining one u (1) additional period of three (3) years, with no increase in user fees, with the Airport absorbing the W cost difference between the flat rate salary and the new full cost recovery rate for the Customs Officer 0 assigned to the Airport; now therefore, c, IN CONSIDERATION of the mutual covenants, promises and premises herein contained, the parties hereto agree to amend the Original Agreement as follows: a� Section 1. Subparagraphs 41, 4.g. and 4.h. of the Original Agreement are amended to read as follows: 4. PROVIDER RESPONSIBILITIES f. Maintain user fees at a rate sufficient to cover of the Customs Service operating expenses; however, Airport will absorb the cost difference between the original flat rate salary for the CBP Officer assigned to the Airport and the new full-cost recovery rate. 1 Packet Pg. 1311 C.34.a g. Every 3 months upon receipt of invoice from the County, Provider will reimburse the county for all operating and maintenance expenses incurred related to Customs service that occurred in that time period; however, the Airport will not invoice the difference between the original flat-rate salary for the CBP Officer assigned to the Airport and the new full-cost recovery rate which will be funded by the Airport. Operating expenses shall de defined as those services required and items used in the day to day operations of the Customs Service office and shall include,but not be limited to, office supplies, lavatory supplies, postage and postal supplies, phone service, janitorial service, etc. Maintenance expenses shall be those expenses incurred to maintain any of the infrastructure or any of the equipment constructed, erected or installed in the Customs Service leasehold and shall include, but not be limited to, the costs of computer maintenance and/or upgrade, HVAC maintenance, fixtures and fixed improvements maintenance, etc. ca CL h. At the end of the County's fiscal year,the Provider will reimburse the County in whole for any outstanding expenses that occurred over the preceding 12 month period and were not previously billed; except for the difference between the flat rate salary and the full cost recovery rate for the CBP Officer that will be funded by the Airport. w Section 2. Article 6 of the Original Agreement is amended to read as follows: 6. TERM OF AGREEMENT This agreement is renewed for one (1) additional three (3) year period beginning -� April 20 2020 and ending on April 19 2023. c� Section 3. All other provisions of the April 16, 2014 original Customs Service Agreement as amended and not inconsistent herewith, shall remain in full force and effect. Q IN WITNESS WHEREOF, County and Provider have executed this Agreement on the day and date first written above. 0 (SEAL) BOARD OF COUNTY COMMISSIONERS ATTEST: KEVIN MADOK, CLERK OF MONROE COUNTY, FLORIDA By By Deputy Clerk Mayor/Chairperson WITNESSES: PROVIDER: Marathon Jet Center, Inc. Title: ROE COUNTY ATTOn EY z A , f1OVE FOB MJ. _ - AS I i4 Packet Pg. 1312 Date 6/29/20