Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Business
Information
Requested Action
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MOTION TO APPROVE Pipeline License Agreement between Broward County and Everglades Pipe Line Company, L.P., for pipeline facilities at Broward County's Fort Lauderdale-Hollywood International Airport; and authorize Mayor and Clerk to execute same.
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Why Action is Necessary
Chapter 2, Section 2-40 (a) of the Broward County Code of Ordinances, requires that the Broward County Board of County Commissioners (“Board”) authorize commercial activities or occupancy of any portion of the airport unless specifically authorized by the County.
What Action Accomplishes
Allows Everglades Pipe Line Company, L.P. (“Everglades”) to continue to operate and maintain an underground jet fuel pipeline on Broward County ("County") owned property at Broward County's Fort Lauderdale-Hollywood International Airport ("FLL").
Is this Action Goal Related
No
Previous Action Taken
None
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action allows Everglades to continue to operate and maintain an underground jet fuel pipeline on County-owned property at FLL.
On October 9, 2007 (Item No. 2), the Board approved a Pipeline License Agreement between the County and Everglades for a three-year term with two one-year extensions to prepare for the relocation of certain segments of the pipeline off FLL property. The underground pipeline carries jet fuel from Port Everglades to FLL and Miami International Airport. The Agreement contained requirements relating to the construction of a new pipeline off FLL property and deactivation of the existing pipeline infrastructure beneath the commercial terminal buildings and public parking structure at no cost to the County.
On June 28, 2011 (Item No. 3), the Board approved the current Pipeline License Agreement between County and Everglades for a ten year period for those portions of the relocated pipeline that were located on FLL property. The current pipeline license agreement expires on June 30, 2021.
The proposed Pipeline License Agreement (“Agreement”) in this action has a term of ten years. However, if the License Agreement between the County and Everglades dated December 1, 2020, that licenses the portion of the pipeline located at Port Everglades is terminated or expires during the term of the Agreement, either party shall have the right to terminate the Agreement.
The license fee for the first license year is $86,654, plus applicable sales taxes and will be adjusted annually by the greater of 3% or the Consumer Price Index (CPI).
This item has been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Mark E. Gale, A.A.E., CEO/Director of Aviation, (954) 359-6199
Fiscal Impact
Fiscal Impact/Cost Summary
The license fee for the first license year will be $86,654 annually or $7,221 monthly (plus applicable taxes). The license fee will be adjusted annually by 3% or CPI, whichever is greater.