Broward County Commission Regular Meeting


Print

Return to the Search Page Return to the Agenda
AI-29128 12.       
Meeting Date: 06/04/2019  
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 MPLX Terminals 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, Signature Pages have been received.)

ACTION:  (T-11:16 AM)  Approved.

VOTE:  8-0.  Commissioner Sharief was not present.
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 MPLX Terminals LLC and Broward County that expires on June 8, 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."

MPLX Terminals LLC ("MPLX") owns and operates two petroleum storage and distribution terminals within the Port Everglades Jurisdictional Area. This License Agreement pertains to the underground pipelines from the MPLX terminal located on Eisenhower Boulevard. The terminal has operated for the past sixty years subject to a series of agreements with Port Everglades that provide a right-of-way for the installation, maintenance, and operation of bulk petroleum pipelines. 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 MPLX 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.

On June 9, 2009 (Item No. 20), the Board approved a ten-year License Agreement between Broward County and Marathon Petroleum Company LLC ("Marathon") providing a right-of-way for the operation and maintenance of the Marathon-owned petroleum pipelines extending from their terminal across County-owned property to the petroleum berths at Port Everglades. On April 12, 2016 (Item No. 5), the Board approved Consent to and Assignment and Transfer of Interest in the License Agreement from Marathon Petroleum Company LP (formerly known as Marathon Petroleum Company LLC) to MPLX Terminals LLC.  

Approval of the new, non-exclusive License Agreement would replace the License Agreement expiring on June 8, 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 MPLX, and receipt of 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 to the MPLX terminal are anticipated to generate approximately $27.5 million in revenue over the ten year term of the agreement.
Attachments
Exhibit 1 - Agreement Summary
Exhibit 2 - MPLX License Agreement
Exhibit 3 - Map


    

Level double AA conformance,
                W3C WAI Web Content Accessibility Guidelines 2.0

AgendaQuick ©2005 - 2024 Destiny Software Inc. All Rights Reserved.