HomeMy WebLinkAboutReso 2007-1054
RESOLUTION NO. 2007-i.O..S..~
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
SUNNY ISLES BEACH, FLORIDA, APPROVING AN
INTERLOCAL AGREEMENT BETWEEN THE MUNICIPAL
UNDERGROUNDING UTILITIES CONSORTIUM (MUUC), AND
THE CITY OF SUNNY ISLES BEACH, IN THE AMOUNT OF
FIVE THOUSAND THREE HUNDRED THIRTY-EIGHT
DOLLARS ($5,338.00), ATTACHED HERETO AS EXHIBIT "A";
AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT; AUTHORIZING THE CITY MANAGER TO DO
ALL THINGS NECESSARY TO EFFECTUATE THE TERMS OF
THIS AGREEMENT; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Section 163.01, Florida Statutes, authorizes local governing bodies to enter
into agreements for the mutual benefit of governmental units; and
WHEREAS, the Municipal Underground Utilities Consortium (MUUC) consists of over
fifty (50) cities in Florida with over thirty (30) being dues paying members; and
WHEREAS, the purpose of the MUUC is to gather and share information on all things
pertaining to underground utilities; and
WHEREAS, the City of Sunny Isles Beach is contemplating converting existing
overhead facilities within its geographic boundaries to underground service; and
WHEREAS, the parties to this agreement desire to have a sound basis for evaluating all
relevant costs and benefits, on a complete, life-cycle cost basis, of conveliing existing overhead
electric distribution facilities, and other utility facilities to underground service facilities; and
WHEREAS, local governments wish to enter into this Interlocal Agreement for the
purpose of jointly funding the study of underground utility service, and to provide a vehicle for
the purpose of participating in relevant proceedings before the Florida Public Service
Commission, the Florida Legislature, or any other relevant agency or branch of government; and
WHEREAS, there is a great deal of activity on undergrounding and hardening of
facilities at the Public Service Commission which MUUC participants actiyely and formally
patiicipate in which the current focus of MUUC has been to initiate a study of the FPL tariff that
proposed a 25% credit for local government underground conversion projects; and
WHEREAS, the City Commission desires to join the Municipal Undergrounding Utilities
Consortium in the amount of Five Thousand Three Hundred Thirty-Eight Dollars ($5,338.00) for
the City's Participation in said Consortium to cost share that study; and
WHEREAS, the City Commission finds that entering into this Interlocal Agreement with
the Municipal Undergrounding Utilities Consortium is in the best interest of the City.
R2007-lnterlocCll Agml With MUUC.Ooc
Page 1 on
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section I. Approval of Agreement. The Interlocal Agreement with the Municipal
Undergrounding Utilities Consortium, in the amount of Five Thousand Three Hundred Thirty-
Eight Dollars ($5,338.00) for the City's Participation in said Consortium, attached hereto as
Exhibit "A", be and the same, is hereby approved.
Section 2. Authorization of Mayor. The Mayor is hereby authorized to execute said
Interlocal Agreement.
Section 3. Authorization of the City Manager. The City Manager is hereby authorized to do
all things necessary to effectuate the terms of this Agreement.
Section 4.
Effective Date. This Resolution will become effective upon adoption.
PASSED AND ADOPTED this 15'" day of February 2007.
ATTEST:
~~A:~
Jane A. Hines, CMC, City Clerk
Moved by: V; '-.( '((\~b >(' 1H ~
Seconded by: Co~ :IC')L'i:.<;;Ii'l-S
Vote: '5~b
Mayor Edelcup
Vice Mayor Thaler
Commissioner Brezin
Commissioner Goodman
Commissioner Iglesias
~Yes)
(dYes)
---0Y es)
tlY es)
(Yes)
_(No)
_(No)
_(No)
_(No)
_(No)
R2007- Inter local Agmt With MUUC.Doc
Page 2 of2
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TO:
FROM:
DATE:
RE:
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-3 II 3 Fax
(305) 947-2150 Building Department
(305) 947-5 107 Fax
City Commission
Norman S. Edelcup, Mayor
Lewis J. Thaler, Vice Mayor
Roslyn Brezin, Commissioner
Gerry Goodman, Commissioner
Danny Iglesias, Commissioner
A. John Szerlag, City Manager
Hans Ottinot, City A Itorney
Jane A. Hines, City Clerk
MEMORANDUM
Doug Haag, Assistant City Manager/Finance
Priscilla Walker, CMC, Deputy City Cler~----VuJ ~
February 21, 2007
Approval of Interlocal Agreement with Municipal Undergrounding Consortium
At its regular meeting of February 15, 2007, the City Commission adopted Resolution No.
2007-1054, which approved an InterIocal Agreement with Municipal Undergrounding
Consortium. Attached are a copy of the approving resolution and the two (2) original
agreements to assist you in processing this item. The two (2) original agreements have been
executed by the appropriate Sunny Isles Beach parties, but some of the dates for the agreement
have been left blank as we didn't know the correct dates to input.
Upon execution bv all parties. please forward an original. executed agreement to the Office
of the City Clerk for the record.
Thank you.
:pw
Attachment
cc: Shaun S. Gelvez, Contracts Coordinator (w/o attachments)
Municipal Undergroung Utilities Consortium Trans Reso Memo
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33 I 60
(305) 947-0606 City Hall
(305) 949-3113 Fax
(305) 947-2150 Building Department
(305) 947-5 I 07 Fax
City Commission
Norman S. Edekup, Mayor
Lewis J. Thaler, Vice Mayor
Roslyn Brezin, Commissioner
Gerry Goodman, Commissioner
Danny Iglesias, Commissioner
A. John Szerlag, City Manager
Hans Ottinot, City A t10rney
Jane A. Hines, City Clerk
MEMORANDUM
TO: The Honorable City Commission
VIA:
From:
DATE:
RE:
A. John SzerIag, City Manager
DVi1~
Douglas Haag, Assistant City Manager/Finance Division
February 15,2007
Municipal Undergrounding Utilities Consortium (MUUC) Participation
RECOMMENDATION:
Approve the Interlocal Agreement with MUUC and payment in the amount of $5,338 for the
city's participation. Funds are available in the Capital Improvement Project budget, 20-600-
5618.
BACKGROUND:
The MUUe consists of over 50 cities in Florida, with over 30 being dues paying members. The
purpose of the MUUC is to gather and share information on all things pertaining to underground
utilities. The benefit of being involved is that a community will know the latest information, pro
and con, on converting overhead utilities to underground and can ask questions of all
participants. The MUUC conducts conference calls with all participants every two weeks. Most
cities in Florida have underground on their agenda in some form or fashion and in many
instances staff assigned the underground effort is in the dark on the subject of underground.
There is a great deal of activity on the subject of undergrounding and hardening of facilities at
the Public Service Commission which MUUC participants actively and formally participate in.
The current focus of MUUC has been to initiate a study of the FPL tariff that proposed a 25%
credit for local governme,nt underground conversion projects. The Interlocal Agreement
presented here is to cost share that study.
The MUUC commissioned this study to ascertain the true cost of overhead vs. underground
using life-cycle costing. This is important because not all true costs of overhead have been
documented - resulting in a skewed lower cost of overhead relative to underground. Under the
current FPL tariff, the contribution in aid of construction (CIAC) requires one to subtract the cost
of new overhead from the cost of new underground for the area one is converting. Thus, the
higher the cost of overhead, which will increase with the adoption of hardened facility
Date
10I
"2 - ( S-Ol
Agenda Item
requirements, the lower one pays to convert to underground. Conversely, the lower the true cost
of underground versus the cost of overhead the less one has to pay to convert to underground.
The MUUC will use the results of the study to argue a greater credit relative to the tariff recently
filed by FPL to give a 25% credit to any local government conversion. The implementation of
this credit was held in abeyance by the PSC pending further analysis and study. At a minimum,
the MUUC will use the results of the study to support FPL in their tariff to provide the 25%
credit. FPL provided no documented rationale for the 25% credit in the tariff filing.
Being a participant in the MUUC does not require that the city pay a share of the study, future
studies, if any, or the cost of PSC hearings representation. However, if in the near future no one
joins the MUUC and helps pay for the studies or hearings before the PSC, there will be no
studies and the FPL credit could be at risk.
Potentially, the 25% credit is an enormous benefit. In Palm Beach, which is 4 square miles with
207,000 linear feet of utility grid the 25% credit results in a savings of over $12 million. In the
City of Sunny Isles Beach, with 7.2 miles of road and 76,032 linear feet of potential
undergrounding, this would result in a savings of $3.5 million. However, this savings can only
be realized if the credit is approved. So, as you can see, the $5,338 we are requesting to help
fund the study is inconsequential compared to the savings if the credit is approved. The study
was completed on November 6th and will be considered by the PSC on February 13, 2007.
MUUC is currently working on raising funds from participants to fund representation before the
PSC on the credit issue. Each of the participating cities is being asked to send a representative to
the February 13th meeting. At this juncture, the PSC staff appears to be split on the issue so a
strong show of support is imperative.
It is often helpful if officials know the magnitude of what it costs to go underground. Per
estimates provided by the Town of Palm Beach, FPL charges $186.68 per foot to convert to
underground, plus a 10% contingency per the applicable tariff. Updated cost estimates from
reputable engineering firms have subsequently increased this cost. The proposed credit tariff
changes that to $140.01 per foot, plus 10% contingency resulting in $2.574 million savings in the
first year's work alone for Town of Palm Beach. The credit and a study to support it or to
enhance it is serious money at stake.
Upcoming items that MUUC will be working on are:
· Updates on activities on underground before the PSC
· Developing a primer on underground conversion
· Updates from the engineering consultant on his work to date
· Preparing form letters to use for mailings
The status of the "litigation" is that MUUC and FPL have tentatively agreed on a 25% credit for
local government underground projects for storm restoration costs and is negotiating a stipulated
settlement for the way in which the other 25% identified in the MUUC Study will be dealt with.
The MUUC Power Services underground Credit Study can be accessed at:
http://palmbeach.govoffice.com/index.asp?Type=B BASIC&SEC={2153E484-E818-4DD2-
Al DO-CCBO 13A03898}
Funds are available in the Capital Improvement Project budget, 20-600-5618.
Please feel free to contact me at any time should you have any questions.
Thank you.
cc. John SzerIag, City Manager
Jean Watson, Finance Director
Hans Ottinot, City Attorney
Jorge Vera, Assistant City Manager/Service Division