Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Director’s Office
Information
Requested Action
title
MOTION TO APPROVE Amendment No. 1 to Agreement No. RFA75, Port Everglades Slip 1 Expansion Performance Based Milestone Funding Agreement between Broward County and the Florida Department of Environmental Protection, in substantially the form attached as Exhibit 1, to renew the Agreement for five additional years and revise performance-based milestones; to authorize the County Administrator to approve and execute the final funding agreement and any subsequent change order(s), supplemental(s), amendment(s), or certifications requested by FDEP in connection with the funding agreement, provided there is no material increase in risk or cost to County, subject to review and approval for legal sufficiency by the County Attorney’s Office; and to authorize the County Administrator to take the necessary administrative and budgetary actions to implement and administer the funding agreement.
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Why Action is Necessary
Broward County Board of County Commissioners’ approval is required for the execution of Amendment No. 1 to RFA75, Port Everglades Slip 1 Expansion Performance Based Milestone Funding Agreement.
What Action Accomplishes
Approves the substantial form of a five-year renewal of Agreement No. 1 RFA75 which provides up to $27,500,000 in state funding for site rehabilitation of petroleum contaminated areas at Port Everglades as part of the Port Everglades Slip 1 Expansion Project and revises dates of the performance-based milestones.
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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 accessible, seamlessly integrated investments in renewable energy, sustainable practices, manufacturing, resilient infrastructure, and environmental protection.”
On May 10, 2022 (Item No. 2), the Board approved Agreement No. RFA75, Port Everglades Slip 1 Expansion Performance Based Milestone Funding Agreement (“RFA75”) between Broward County and the Florida Department of Environmental Protection (“FDEP”). RFA75 provides for FDEP to fund up to $27,500,000 for source removal of the historical petroleum contamination located within the Slip 1 expansion project footprint (“Eligible Discharge Area”). The $27,500,000 includes contingent funding of $2,500,000, which will be authorized by FDEP for transport and disposal of petroleum-impacted soil exceeding 189,000 tons, if needed. Payments will be made by FDEP to the County in accordance with the completion of project milestones enumerated in Section 13 of RFA75. The cost schedule and scope of work is defined in the Remedial Action Plan Volumes I and II approved by FDEP on October 1, 2020.
The FDEP encumbered the funds, including contingent funding, for this Agreement in its entirety upon execution of RFA75. If the site remediation and rehabilitation costs for the Eligible Discharge Area exceeds $27,500,000, the County will be responsible for paying all additional costs.
Subsequent to the execution of RFA75, the anticipated beginning of construction for the Slip 1 Expansion Project has been delayed until early 2028. These delays are primarily attributable to:
- Infrastructure Removal: The removal and disposal of petroleum infrastructure serving Slip 1 is being conducted by third-party entities and remains ongoing.
- Fuel Offloading Planning: The Port has faced challenges in planning for petroleum offloading during the non-availability of petroleum offloading Berths 9 and 10, which lie within the Slip 1 remediation footprint.
- Petroleum Piping Relocation and Additional Offloading Infrastructure: The project requires privately-owned petroleum pipelines within the Eligible Discharge Area to be relocated by the terminal operators and the construction by private industry of an additional petroleum offloading area at Berth 12.
While RFA75 does not expire until June 2, 2027, it contains ten performance-based milestones, the first of which is to be completed by October 6, 2025. As the milestone dates are no longer practical given the project schedule, the parties desire to renew the agreement for a period of five years beginning June 2, 2027, and terminating June 2, 2032, and to revise the milestone dates, allowing for increased project flexibility within the current project schedule. As there are no adverse consequences for early completion of the milestones, the new milestone dates were established during the period from September 9, 2030, through March 29, 2032.
Since the Amendment is still under final review within FDEP, approval of the Amendment in substantially the form as attached in Exhibit 1 and delegation of execution authority to the County Administrator subject to review and approval for legal sufficiency by the Office of the County Attorney allows for expedited processing once the final form is received from FDEP. Agreements with FDEP are executed by the County prior to execution by FDEP.
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
The Slip 1 Expansion Project is included in the Port Everglades Capital Budget approved by the Board. The County will continue to receive up to $25,000,000 from FDEP, payable in defined amounts, upon completion of each Project milestone. A contingency of up to $2,500,000 is provided for the transport and disposal of additional petroleum-impacted soil in excess of the project amount.