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."
South Florida Petroleum Services LLC (SFPS) operates petroleum offloading facilities on County property at three Port Everglades ship berths under a non-exclusive Petroleum Transfer Facilities License Agreement approved by the Board on October 28, 2014 (Item No. 18). The SFPS-owned facilities, consisting of offloading arms, manifolds, valves, and piping, were installed and have been in continuous operation since the 1980s subject to a series of agreements with the Port Everglades Authority and Broward County as successor. SFPS is a common dockside petroleum transfer service provider to the major petroleum terminal operators at the Port, offloading approximately 95% of all petroleum products coming through the Port. The existing License Agreement expires on November 30, 2024.
Port Everglades is in the design and engineering phase of the redevelopment of Port Everglades Slip 1 in the Northport area of Port Everglades (see Exhibit 4) based on a deliberately phased agreement between Broward County and HDR Engineering, Inc., approved by the Board on February 7, 2017 (Item No. 10). This redevelopment will allow the Port to accommodate larger petroleum vessels by increasing the width of the slip through the excavation of land on the south side of the slip. A prerequisite of this redevelopment is the relocation of the existing petroleum offloading facilities on the south side of Slip 1 at Berth 9 to allow the slip to be widened by 150 feet. Those facilities are owned and operated by SFPS under the terms of the subject License Agreement, and will be relocated by SFPS at their expense. The relocation will require changes to the premises as defined in the existing License Agreement. To provide the necessary flexibility for construction of the new petroleum transfer infrastructure, the First Amendment would provide the Port Everglades Chief Executive/Port Director with the authority to approve modifications to the premises as defined in the License Agreement and the related fees charged for the use of Port Everglades land. This First Amendment also extends the expiration date of the License Agreement from November 30, 2024, to November 30, 2028. This four year extension will assist SFPS in recovering the capital costs SFPS will incur for relocating their facilities. Modification of the premises will allow SFPS to continue to operate their petroleum transfer facilities at Port Everglades Berths 7, 9, and 13 while constructing the new offloading facilities required to allow the Port to proceed with the redevelopment of Slip 1.
This First Amendment has been reviewed by the Port Everglades Risk Manager and approved as to form by the Office of the County Attorney. The agreement is pending final execution by SFPS, and signature pages will be provided prior to the Commission meeting.
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