Broward County Commission Regular Meeting
Director's Name: Glenn Wiltshire (Acting Director)
Department: Port Everglades Division: Director’s Office
Information
Requested Action
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MOTION TO APPROVE perpetual Exclusive Underground Cable Easement between Broward County, as Grantor, and Florida Power and Light (“FPL”), as Grantee, for the installation, operation, and maintenance of underground electric utility facilities within the duct bank to be constructed by Broward County within Port Everglades, together with the nonexclusive right to make other uses of the adjacent lands and surface area.
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Why Action is Necessary
Easement Agreements with a term that exceed one year require approval by the Broward County Board of County Commissioners.
What Action Accomplishes
Grants FPL a perpetual right of exclusive use of a duct bank to be constructed by Broward County (the “County”) for the installation, operation, and maintenance of underground electric utility facilities, together with the nonexclusive right to make other uses of the adjacent lands and surface area for purposes including, but not limited to, ingress and egress and excavation.
Goal Related Icon(s)
☒County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners’ (“Board”) Value of “Building Partnerships and working collaboratively with others to meet shared objectives,” and the Goal of “Ensuring economic opportunities and a sustainable economy, with an emphasis on Broward's lower and middle class.”
On March 15, 2022 (Item No. 14), the Board approved an advance payment to Florida Power and Light (“FPL”) in the amount of $495,000 for an engineering study to develop a preliminary design and detailed cost estimate for necessary electrical distribution infrastructure to supply shore power for the eight cruise terminals at Port Everglades (the “Port”). The study identified the need for a new underground duct bank from FPL’s Port Everglades Clean Energy Center to locations adjacent to the cruise terminals, created a preliminary design, and recommended a constructable route. If the County moves forward with the shore power project, the County will construct the duct bank based on the design provided by FPL, and within the duct bank, FPL will install high voltage electrical distribution cables and fiber optic cables to deliver the needed power and data communications capabilities required for each cruise terminal. The Port will need to provide the additional infrastructure and equipment to connect the terminal to the cruise ship.
Approval of the Exclusive Underground Cable Easement (“Easement”) is the next step in the County’s initiative to provide shore power to the cruise ships calling at Port Everglades. Execution of the Easement is a prerequisite for FPL’s development of a Performance Guarantee Agreement (“PGA”) stating the need for the expansion of FPL’s current electrical system, detailing FPL’s investment, and providing assurance to FPL that it will fully recover its costs less base demand change revenue generated in the years following the commissioning of the shore power system. The eventual execution of the PGA will allow FPL to begin construction on their portion of the shore power project including a new substation, installation of power distribution facilities, and construction of metering vaults. It is anticipated the PGA will be submitted for Board approval within one year following approval of the Easement.
If the County fails to commence construction of the duct bank within one year after the date the last party executes this Easement, which deadline can be extended up to one additional year upon letter agreement by the parties, with the County acting through its Port Director, the County, upon written notice to FPL, shall have the option to terminate this Easement.
Upon the County’s completion of the duct bank, Exhibit A will be deleted in its entirety and replaced with an accurate depiction of the exclusive easement area.
The Easement is undergoing final review by FPL and will be provided as Additional Material prior to the Board meeting.
Source of Additional Information
Neil J. Kutchera, Assistant Port Director, Energy, Port Everglades Department (954) 468-3520
Fiscal Impact
Fiscal Impact/Cost Summary
None.