THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners' 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."
The Port Everglades Master/Vision Plan approved by the Board on June 24, 2014 (Item No. 57) included the extension of the Southport Turning Notch to add new berths; the addition of up to five new low profile Super Post-Panamax container gantry cranes; lift capacity upgrades to the existing seven Samsung Post-Panamax container gantry cranes; and the densification of cargo in the marine container terminals in Southport. These projects, along with continued growth of the shipment of perishable commodities through Port Everglades, will create new power demands. In addition to the new container gantry cranes, the potential marine terminal needs include the installation of up to 1,500 electrical receptacles for the plug-in of refrigerated containers to reduce reliance on diesel generators. In addition, an undetermined number of electrically-powered Rubber Tired Gantries (RTGs) that will provide the ability to stack containers higher and wider within container yards will be added over time by port tenants, thus providing needed densification. The first four RTGs were purchased and installed by a Southport marine terminal operator in 2016.
Based on the projected increase in power demand, Port Everglades staff worked closely with Florida Power & Light Company (FPL) regarding existing electrical power capacity available and options to meet the projected power demands in the future. Studies undertaken by FPL concluded, that a new stand-alone electric utility substation with specially designed transformers would need to be constructed at Port Everglades in order to meet the anticipated additional power demands, and a corresponding power distribution duct bank constructed to distribute power from the substation to a central vault located in the Southport area of Port Everglades. The County would be responsible for the cost of furnishing this power distribution infrastructure.
On June 9, 2015 (Item No. 3), the Board approved advance payments to FPL in the amount of $500,000 for the study and preliminary design of an electric utility substation, and $43,200 to develop a detailed cost estimate and design for the duct bank electrical distribution lines. With those payments, FPL completed a site assessment and detailed design for the substation, to be located south of Eller Drive and adjacent to existing FPL main transmission lines, and the design for the duct bank route from the substation to the new vault near Port Everglades Berth 32. A map detailing the location of the new substation and duct bank power distribution route is attached (see Exhibit 3).
The final documents required to proceed with the construction of the electric utility substation and electrical distribution lines include a Memorandum of Understanding; Easement; Facilities and Access Drive Construction Agreement ("Construction Agreement"); and Underground Duct Bank & Manhole Installation Agreement ("Duct Bank Agreement") (collectively referred to as the "Agreements").
The Construction Agreement provides for the design and construction of a new electric utility substation on County property south of Eller Drive between the existing FPL transmission lines and the Florida East Coast Railway Intermodal Container Transfer Facility Access Road, with County responsible for its share at an estimated cost of $7,800,000. County will receive a credit for the $500,000 previously paid to FPL for the design work. The design includes one specially designed transformer dedicated to service the Port's new container gantry cranes and a second shared transformer that will serve as a backup for the dedicated transformer and other Port Everglades Southport marine terminal electrical needs and potentially other FPL customers in the area. FPL would not guarantee capacity on the second transformer for the County's Port Everglades Department's future power demands. The design also includes infrastructure to support adding a third transformer and distribution feeders at FPL's expense if future power demands warrant it. FPL did not provide the full cost of the electric utility substation despite staff's request for such information. However, FPL had previously provided staff with a cost estimate of $12.1 million for a substation with three transformers.
The Duct Bank Agreement provides for the design, specifications, and related materials needed to construct the duct bank electrical distribution lines along the power distribution route. The total cost of the duct bank design, specifications, and related equipment is $4,315,383, however since the County will receive a credit of $1,409,676 provided by FPL as a Contribution In Aid of Construction as provided for in the FPL tariffs, the net cost to the County is $2,905,707. Actual construction of the duct bank will be completed by the Moss/Kiewit Joint Venture as part of its agreement with Broward County for Managing General Contractor for Port Everglades Southport Turning Notch Expansion and Southport Crane Infrastructure Improvements Project approved by the Board on May 23, 2017 (Item No. 66).
FPL requires payment in advance under both the Construction Agreement and Duct Bank Agreement. The Construction Agreement provides for a true up based on actual labor costs once the project is completed, with the County receiving a refund if the total costs are lower; the County is responsible for providing additional funds if the final costs exceed the advance payment provided to FPL, but additional costs are limited to 20% above the estimate. Under the agreement, FPL is required to notify the County of cost increases, and the County is required to pay the increased costs, not to exceed 20% in the revised cost estimate without recourse against FPL. The Construction Agreement also includes audit provisions that will allow the County to verify the final costs of the project.
The Agreements were prepared by FPL using FPL agreement forms. While these forms were revised during negotiations to contain most of the equivalent standard provisions in County agreements, FPL would not agree to include indemnification nor termination language in the Easement, although FPL did agree to indemnify the County in the Construction Agreement. According to FPL, it would not agree to include indemnification nor termination language as a business practice and on the basis that once the substation is completed and added to the electrical grid to supply power to Port Everglades, the substation cannot be removed without extreme impacts to FPL, Port Everglades, and other FPL customers.
The Agreements have been reviewed and approved as to form by the Office of the County Attorney. Signature pages will be provided prior to Board action on the item. |