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 DIRECT County Administrator to return without evaluation an Unsolicited Public Private Partnership Proposal from Hypower, LLC to Design, Build, and Finance Shore Power Infrastructure Development for Port Everglades.
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Why Action is Necessary
Responses to unsolicited proposals require action by the Broward County Board of County Commissioners (“Board”).
What Action Accomplishes
Provides for discussion and Board direction regarding the County Administrator’s recommendation to return without evaluation an unsolicited Public Private Partnership Proposal from Hypower, LLC.
Goal Related Icon(s)
☐County Commission
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Previous Action Taken
None
Summary Explanation/Background
THE COUNTY ADMINISTRATOR RECOMMENDS APPROVAL.
On December 8, 2023, the County received an Unsolicited Public Private Partnership Proposal from Hypower, LLC (“Hypower”) and Moffatt & Nichol (“M&N”) to Design, Build, and Finance Shore Power Infrastructure Development for Port Everglades. The original proposal was received from Hypower and M&N on December 8, 2023, along with the $25,000 application fee required by Section 38.40 of the Broward County Administrative Code. On January 4, 2024, Hypower was advised that a Cone of Silence was imposed as provided for in Section 1-266 of the Broward County Code of Ordinances, retroactive to the date of receipt of the original proposal. Additional information covering Financial and Functional Feasibility was received from Hypower on January 22, 2024. By memo dated February 13, 2024, the County Administrator advised the Board that County staff would examine the information presented, perform a preliminary financial analysis, and make a recommendation on how to proceed pursuant to Florida Statutes Section 255.065 within 45 days.
Subsequent to receipt of the unsolicited proposal and during the initial staff review, the U.S. Environmental Protection Agency (“USEPA”) announced on February 28, 2024, the availability of up to $3.0 billion in grant funding under the Clean Ports Program: Zero-Emission Technology Deployment Competition. This grant, funded through appropriations from the Inflation Reduction Act, is available to fund zero-emission port equipment and infrastructure, as well as climate and air quality planning at U.S. ports. Based on an initial review of the grant criteria and requirements, County staff believe that the Port Everglades initiative to provide shore power at each of the port’s eight cruise terminals to allow cruise ships capable of using shore power to plug into the power grid and shut off their auxiliary diesel engines while in port is eligible for grant funding. Thus, the County intends to apply for a grant of up to $150 million for the Port Everglades’ Shore Power Project. If awarded, the USEPA Grant would provide funding for up to 90% of the costs of the infrastructure required to connect from the Florida Power & Light (“FPL”) power source that would be installed adjacent to each cruise terminal to the side of a ship. Grant applications are due to EPA by May 28, 2024, and EPA expects to make grant award announcements before the end of the year. A significant award under this grant would greatly affect the financing as set forth in the unsolicited proposal.
The County has separately been working with FPL since the Board approved an advance payment of $495,000 to FPL on March 15, 2022 (Item No. 14), for an engineering study to develop a preliminary design and detailed cost estimate for a new electrical substation and duct bank distribution facilities at Port Everglades to install additional power distribution capacity to provide shore power to cruise berths. FPL continues to work on that design, as well as on a separate Performance Guarantee Agreement between the County and FPL that would offset a portion of the cost of the electrical transmission infrastructure between the power plant and cruise berths based on actual use over the first four years of the system being commissioned. Port Everglades staff anticipates that the required agreements with FPL will be ready for Board approval later this year.
Port Everglades staff is also continuing the discussions with Princess Cruises, the Royal Caribbean Group, and Disney Cruise Line to formalize their commitment to use shore power when berthed in Port Everglades. The results of those discussions may also affect the phasing of implementation of shore power at Port Everglades.
Staff believes that it is premature to evaluate the Hypower and M&N proposal until the grant process is completed and the agreements with FPL concerning the power distribution are in place. During that period, staff will develop additional design criteria for the shore power system that would be used as the basis for a competitive solicitation. Based on the pending grant application, discussions with FPL, and discussions with the cruise lines, any of which could greatly impact the approach to the shore power project, the County Administrator’s recommendation is that the Hypower and M&N unsolicited proposal be returned without evaluation and the $25,000 application fee returned.
Source of Additional Information
Glenn A. Wiltshire, Acting Director, Port Everglades Department, 954-468-3504
Fiscal Impact
Fiscal Impact/Cost Summary
None. The $25,000 application fee submitted by Hypower and M&N as part of their Unsolicited Proposal will be returned.