Broward County Commission Regular Meeting


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AI-25347 3.       
Meeting Date: 10/17/2017  
Director's Name: Steven Cernak
Department: Port Everglades Division: Director's Office

Information
Requested Action
MOTION TO RETROACTIVELY APPROVE ten-year License Agreement between Broward County and Targa Downstream LLC for Bulk Petroleum Product Pipelines at Port Everglades, to commence on October 9, 2017; and authorize the Mayor and Clerk to execute same.

ACTION:  (T-10:49 AM)  Approved.
 
VOTE: 9-0.
Why Action is Necessary
Pursuant to Section 16.2.j of the Administrative Code of Broward County, long term License Agreements require approval by the Broward County Board of County Commissioners.
What Action Accomplishes
The new License Agreement will replace the existing ten-year Bulk Petroleum License Agreement between Targa Downstream LP and Broward County that expired on October 8, 2017.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.

This action supports the Board's Value of "Ensuring opportunities for all people and businesses in Broward" and Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."

Targa Downstream LLC (Targa) owns and operates a petroleum products storage and distribution terminal on private property within the Port Everglades Jurisdictional Area. The terminal facility is the largest bulk distribution point for liquefied petroleum gas (LPG) in South Florida, and has been in continuous operation since 1954 subject to a series of agreements with the Port Everglades Authority followed by Broward County that provided a right of way for the installation, maintenance and operation of bulk petroleum pipelines on Port property. The current agreement was approved by the Broward County Board of County Commissioners on October 9, 2007 (Item No. 18) with Targa Midstream Services Limited Partnership, and assigned to Targa Downstream LP on November 10, 2009 (Item No. 2). Targa Downstream LP was converted to a Limited Liability Company (Targa Downstream LLC) on July 28, 2011. The Port generates revenues from dockage and other fees applicable to tank ships and oceangoing barges using Port berths, as well as from wharfage fees paid by Targa on all product moving through the pipelines as outlined in the Port Everglades Tariff. Similar arrangements are in place with the other petroleum terminal operators located within the Port.

Approval of the new, non-exclusive License Agreement would replace the agreement that expired on October 8, 2017, and would extend the relationship under the new Targa Downstream LLC name for another ten years, consistent with license agreements with other petroleum terminal operators to provide rights of way for pipelines between the berths and the petroleum distribution terminals. The Agreement is retroactive to October 9, 2017 due to delays associated with Hurricanes Harvey and Irma in finalizing the Agreement.

The License Agreement has been reviewed by the Port Everglades Risk Manager and approved as to form by the Office of the County Attorney.
Source of Additional Information
Glenn A. Wiltshire, Deputy Port Director, Port Everglades Department, (954) 468-3504
Neil Kutchera, Assistant Port Director, Petroleum, Port Everglades Department, (954) 468-3520

Fiscal Impact
Fiscal Impact/Cost Summary:
Petroleum movements through the Targa terminal are anticipated to generate approximately $635,000 in revenue over the ten year term of the agreement.
Attachments
Exhibit 1 - Targa Agreement Summary
Exhibit 2 - Pipeline License Agreement


    

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