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."
South Florida Materials Corp. (SFM) owns and operates a petroleum products storage and distribution terminal on private property within the Port Everglades Jurisdictional Area. This terminal, which distributes transportation fuels to the South Florida market, has operated at Port Everglades since 2009. The current agreement that provided a right of way for the installation, maintenance and operation of bulk petroleum pipelines on Port property was approved by the Broward County Board of County Commissioners on February 5, 2008 (Item No. 20) and amended on November 13, 2008 (Item No. 22). 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 SFM on all petroleum products moving through the pipelines as outlined in the Port Everglades Tariff. An additional annual license fee is charged for the use of rights of way on Port property where wharfage charges are not applicable, specifically a jet fuel transfer pipeline connecting the petroleum terminal with the Everglades Pipeline, a separate terminal that distributes jet fuel to Fort Lauderdale-Hollywood International Airport and Miami International Airport. 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 expires on February 4, 2018, and would extend the license 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 License Agreement has been reviewed by the Port Everglades Risk Manager and approved as to form by the Office of the County Attorney. The agreement is being finalized by SFM, and signature pages will be provided prior to the Commission meeting.
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