Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Director’s Office
Information
Requested Action
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MOTION TO APPROVE Second Amendment to License Agreement between Broward County and TransMontaigne Terminals L.L.C. (“TTL”) for Bulk Petroleum Product Pipelines at Port Everglades, authorizing reimbursement to TTL in the amount of $174,511 for pipeline-related work performed in support of the County’s Bulkhead Replacement Project, and delegating authority to the Port Director to approve and reimburse TTL for actual, reasonable, and documented costs and expenses, without markup, incurred by TTL for any future work required as a result of County projects at Port Everglades, up to a not-to-exceed cumulative total of $500,000.
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Why Action is Necessary
Unless an express delegation exists, an amendment to a license agreement that has a term that exceeds three years requires approval by the Broward County Board of County Commissioners.
What Action Accomplishes
Amends the existing License Agreement between Broward County and TTL for Bulk Petroleum Product Pipelines at Port Everglades, authorizing reimbursement to TTL in the amount of $174,511 for bunker pipeline-related work performed in support of County’s Bulkhead Replacement Project; and delegating authority to the Port Director to approve and reimburse TTL for actual, reasonable, and documented costs and expenses, without markup, incurred by TTL for any future work required as a result of County projects at Port Everglades, up to a not-to-exceed cumulative total of $500,000.
Goal Related Icon(s)
☒County Commission
☐Go Green
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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.”
TransMontaigne Terminals L.L.C. (“TTL”) and its predecessor companies have operated underground pipelines on Port property over the past 80 years subject to a series of agreements with Port Everglades, which provide licensed areas for the installation, maintenance, and operation of bulk petroleum pipelines.
On August 24, 2021 (Item No. 14), the Board approved a ten-year Bulk Petroleum Product Pipelines License Agreement with TTL for pipelines crossing under Spangler Boulevard in the Northport area of Port Everglades (“Original Agreement”).
On May 7, 2024 (Item No. 14), the Board approved a First Amendment to the Original Agreement, which, among other things: (a) terminated two separate agreements between the Parties (defined as the “Pit Agreement” and “Expiring Agreement”); (b) amended Exhibit A to incorporate the pipelines installed pursuant to the Pit Agreement and Expiring Agreement that are now terminated (pipelines that connect the docks to Licensee’s north terminal and provide for a hydrant system, and pipelines for a pit, which is used by ships for fueling purposes); (c) extended the term; and (d) approved reimbursement of certain expenses associated with the relocation of pipelines because of the Broward County Port Everglades Department’s Slip 1 Expansion Project. The Original Agreement, as amended by the First Amendment, is referred to herein as the “Agreement.”
On November 28, 2023, the County entered into a Contract between Broward County and Moss & Associates, LLC, Managing General Contractor for the Port Bulkhead Replacement Projects, Group 1, for managing general contractor services for the bulkhead replacements at Port Everglades’ Berths 1, 2, and 3, and the Entrance Channel North Bulkhead (“Bulkhead Replacement Project”).
To facilitate County construction under the Bulkhead Replacement Project, the Port Everglades Department requested TTL to perform specialized work on two petroleum pipelines used for ship bunkering located between Cruise Terminals 2 and 4, including draining product, excavation, construction of an underground vault, cutting and reconnecting pipelines, installation of isolation valves, and related testing and inspections. TTL incurred $174,511 in actual costs to complete this work.
The proposed Second Amendment authorizes reimbursement for these costs and establishes a process for approving and reimbursing future pipeline-related work required to protect TTL’s facilities from County projects, up to cumulative total of $500,000.
The Second Amendment has been reviewed by the Port Everglades Risk Manager and approved as to form by the Office of the County Attorney.
Source of Additional Information
Neil J. Kutchera, Assistant Port Director, Energy and Innovation, Port Everglades Department (954) 468-3520
Fiscal Impact
Fiscal Impact/Cost Summary
Approval of the Second Amendment will authorize reimbursement to TTL in the amount of $174,511 for previously completed work, and up to $500,000 in additional cumulative reimbursement authority for future qualified work. Funding is available within the Port Everglades Operating Budget for costs associated with protection and relocation of existing utilities required for County construction activities.