Broward County Commission Regular Meeting


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AI-29095 12.       
Meeting Date: 05/21/2019  
Director's Name: Glenn Wiltshire (Acting Director)
Department: Port Everglades Division: Director's Office

Information
Requested Action
MOTION TO APPROVE ten-year License Agreement between Broward County and High Sierra Terminaling LLC for Bulk Petroleum Product Pipelines at Port Everglades, effective upon execution; and authorize the Mayor and Clerk to execute same.

(Per the Tuesday Morning Memorandum, add to the Motion Statement after...Bulk Petroleum Product Pipelines at Port Everglades..."subject to the review of the Signature Pages by the Office of the County Attorney, and")  

(Per the Tuesday Morning Memorandum, Signature Pages have been received.)


ACTION:  (T-10:33 AM)  Approved.

VOTE:  9-0.
Why Action is Necessary
License Agreements with a term that exceeds one year require approval by the Broward County Board of County Commissioners.
What Action Accomplishes
Approves a new License Agreement that replaces the existing ten-year Bulk Petroleum License Agreement between High Sierra Terminaling LLC and Broward County that expires on June 1, 2019.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
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."

High Sierra Terminaling LLC (“High Sierra”) owns and operates an asphalt storage and distribution terminal within the Port Everglades Jurisdictional Area. The terminal, which is located inland, has operated since 1953 subject to a series of agreements with Port Everglades which provide a right-of-way for the installation, maintenance, and operation of bulk petroleum pipelines. On June 2, 2009 (Item No. 26), the Board approved a ten-year License Agreement between Broward County and High Sierra providing a right-of-way for the operation and maintenance of the High Sierra-owned petroleum pipelines extending from their terminal across County-owned property to the petroleum berths at Port Everglades. The Port generates revenues from dockage and other fees applicable to petroleum tank ships and oceangoing barges using Port berths, as well as from wharfage fees paid by High Sierra on all petroleum products 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 expiring on June 1, 2019, and would extend the relationship 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 pending final execution by High Sierra, and signature pages will be noted in the Monday Night Memo, prior to the Commission meeting.
Source of Additional Information
Glenn A. Wiltshire, Acting Port Director, Port Everglades Department, (954) 468-3504
Neil J. Kutchera, Assistant Port Director, Petroleum, Port Everglades Department, (954) 468-3520

Fiscal Impact
Fiscal Impact/Cost Summary:
Petroleum movements from the berths to the High Sierra terminal are anticipated to generate approximately $592,000 over the ten year term of the agreement.
Attachments
Exhibit 1 - Agreement Summary
Exhibit 2 - High Sierra License Agreement
Exhibit 3 - Map


    

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