THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Board's Value of "Ensuring opportunities for all people and businesses in Broward" and the Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
CITGO Petroleum Corporation (“CITGO”) 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 over the past 50 years 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 Port property. The current agreement was approved by the Broward County Board of County Commissioners ("Board") on June 26, 2007 (Item No. 16). The Port generates revenues from dockage and other fees applicable to tank ships and ocean going barges using Port berths as well as from wharfage fees paid by CITGO on all product 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 25, 2017, 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.
On May 19, 2017, CITGO informed Port staff that additional time was required for their internal review and approval of the License Agreement. As the Agreement expires during the Commission's summer recess, staff recommends that the Board approve the Agreement in substantial final form, and delegate authority to the County Administrator to execute the Agreement after approval by CITGO. Any substantial changes from the current form will result in the Agreement being brought back before the Board for their approval. Any non-substantial changes requested by CITGO will be subject to review and approval by the Office of the County Attorney prior to execution by the County Administrator.
The License Agreement has been approved by the Port Everglades Risk Manager and approved as to form by the Office of the County Attorney.
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