TITLE
RESOLUTION AUTHORIZING THE CONVEYANCE OF AN EASEMENT TO PIVOTAL UTILITY HOLDINGS, INC., A NEW JERSEY CORPORATION D/B/A/ FLORIDA CITY GAS, FOR $10.00, AND EXECUTION BY THE COUNTY MAYOR OF SUCH NON-EXCLUSIVE UTILITY EASEMENT

BODY
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board, authorizes the conveyance of a Non Exclusive Utility Easement to Pivotal Utility Holdings, Inc., a New Jersey corporation d/b/a Florida City Gas, for $10.00, in substantially the form attached hereto and made a part hereof, and authorizes the County Mayor to execute said Easement on behalf of Miami-Dade County.

HEADER
Date:

To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners

From: Alina T. Hudak
County Manager

Subject: Resolution authorizing the conveyance of an easement to Pivotal Utility Holdings, Inc., a New Jersey Corporation d/b/a Florida City Gas, for the installation, maintenance and repair of a natural gas pipeline through County-owned land known as the 58 Street Landfill located at 8795 N.W. 58 Street, Miami, Florida RECOMMENDATION:

STAFF RECOMMENDATION
It is recommended that the Board approve the attached resolution authorizing the conveyance of an easement to Pivotal Utility Holdings, Inc., a New Jersey corporation d/b/a Florida City Gas, for the installation, maintenance and repair of a natural gas pipeline through County-owned land at the closed 58 Street Landfill. The landfill is located between N.W. 87 and 97 Avenues, and between N.W. 58 and 74 Streets. The item was prepared by the General Services Administration at the request of the Department of Solid Waste Management (DSWM).

OWNER: Department of Solid Waste Management

TAX FOLIO NUMBER: 30-3016-000-0010

SIZE: 78,155 square feet

LOCATION: 8795 N.W. 58 Street, Miami

COMMISSION DISTRICT: 12

COMMISSION DISTRICT IMPACTED: Countywide

ZONING: GU � Interim District. Uses depend on character of neighborhood; otherwise EU-2 - single-family five acre estate district, standards apply. According to the Department of Planning and Zoning, the existing use is a permitted use under the current zoning.

MANAGER'S BACKGROUND
BACKGROUND: On January 3, 2000, by Resolution No. R-22-00, the Board authorized the granting of a six-foot wide, one-mile long gas line easement to City Gas Company of Florida (City Gas), for a total fee of $2,197. The gas line was intended to run through 31,680 square feet (0.73 acres) of County-owned land located at the 58 Street Landfill (Landfill). The easement was needed in order to permit the construction and future maintenance of a planned 2.5 mile underground gas line to service the County-owned Resources Recovery Facility (RRF) located at 6990 N.W. 97 Avenue. The easement would have run through six feet of an existing 230-foot wide FPL easement, and would therefore have been subject to the rights conveyed to FPL under that easement. This existing easement will be released prior to recording the proposed new easement.

The original pipeline was never constructed. Florida City Gas was previously owned by NUI Utilities, Inc. (NUI), and when the original easement was granted through the Landfill, NUI was positioning itself for sale. NUI was concerned with potential environmental liabilities and costs associated with the project and elected not to proceed with the project at that time.

Pivotal Utility Holdings, Inc., a New Jersey corporation d/b/a Florida City Gas, has requested the issuance of a new fifteen-foot wide, one-mile long gas line easement through 78,155 square feet (1.794 acres) of County-owned land located at the Landfill. The proposed easement is needed in order to permit the construction and future maintenance of a planned one-mile underground gas line, to be built from N.W. 87 Avenue to the County-owned Resources Recovery Facility located at 6990 N.W. 97 Avenue. The County will share construction costs of the planned one-mile underground gas line with Florida City Gas.

JUSTIFICATION: The Resources Recovery Facility (RRF) occupies 40 acres of County-owned property located immediately to the west of the 58 Street Landfill. The RRF�s primary function is to process solid waste via incineration to reduce its volume. It is operated under a contract with COVANTA Southeast Florida. As a by-product of processing solid waste, electricity is produced by the RRF which is sold to Progress Energy. The County participates in this revenue stream. The RRF currently uses propane gas for start-up, combustion support and air pollution control (carbon monoxide control). The propane is trucked to the facility where it is stored in a 30,000 gallon above ground tank. The proposed natural gas pipeline will eliminate the storage and use of propane gas. Pipeline delivery of gas is considered to be safer and more reliable than trucking and storing gas since it will both reduce the potential for interruption of the plant in the event of a natural disaster and eliminate the storage tank, a potential safety risk. Increased reliability is also very important since the RRF has to continuously meet stringent air pollution control standards which are met, in part, through the use of gas for combustion control. The estimated cost savings to the County is approximately $431,600 annually as a result of constructing the pipeline and using natural gas in lieu of propane. Florida City Gas will be responsible for obtaining all construction and environmental permits needed to construct the gas line.

FISCAL IMPACT/FUNDING SOURCES: The grant of easement has no fiscal impact to the County. Florida City Gas will be responsible for managing the construction, maintenance and operation of the utility easement.

The cost of propane is shared between the County and Covanta. The County will save an estimated $431,600 annually by using piped natural gas in lieu of propane at the facility. The projected savings are based on the RRF�s historical consumption of propane in FY 08/09, propane at a price of $1.40 per gallon and natural gas estimated at a price of $0.7883 per therm.

MONITOR: Shannon Clark, Real Estate Officer

COMMENTS: The County will pay $328,415 toward the cost of the pipeline project. This amount is funded with DSWM Operating Funds. Index Code SWED0RROPER0.

Florida City Gas will be responsible for managing the construction and will pay for the maintenance and operation of the pipeline.

DELEGATED AUTHORITY: Authorizes the County Mayor to execute this easement in substantially the form attached hereto.






______________________________
Wendi J. Norris, Director
General Services Administration