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HomeMy WebLinkAboutReso 2008-1210 RESOLUTION NO. 2008- 17„ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING AN AGREEMENT WITH FLORIDA POWER AND LIGHT (FPL) FOR PHASE II OF THE UNDERGROUNDING OF THE ELECTRICAL LINES PROJECT ON 17fD STREET BETWEEN NORTH BAY ROAD AND COLLINS AVENUE, IN THE AMOUNT OF ONE HUNDRED FIFTY-SIX THOUSAND FOUR HUNDRED SIXTY DOLLARS (S156,460.00), ATTACHED HERETO AS EXHIBIT "A"; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EFFECTUATE THE TERMS OF THE AGREEMENT; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sunny Isles Beach wishes to convert the entire distribution overhead electrical lines to undereround in the City; and WHEREAS, the City of Sunny Isles Beach has negotiated with Florida Power and Light for Phase II of the Undergrounding of Electrical Lines Project on 172nd between North Bay Road and Collins Avenue; and WHEREAS, Florida Power and Light has submitted a proposal for Phase II of the Undergrounding of Electrical Lines Project, in the amount of One Hundred Fifty-Six Thousand Four Hundred Sixty Dollars ($156,460.00), attached hereto as Exhibit "A". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Approval of Agreement. The Agreement with Florida Power and Light (FPL). for Phase II of the undergrounding project on 172nd Street between North Bay Road and Collins Avenue, in the amount of One Hundred Fifty-Six Thousand Four Hundred Sixty Dollars ($156,460.00), 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 Agreement. Section 3. Authorization of City Manager. The City Manager is hereby authorized to do all things necessary to effectuate this Resolution. Section 4. Effective Date. This Resolution will become effective upon adoption. PASSED AND ADOPTED this 17th day of January 2008. / ydayeer, orman S. Edelcup, Mayor 82008-FPL Agmt Undergrounding Phase II Page I of 2 ATTEST: . \\j(_( . Jane A. Hines, CMC, City Clerk r- r_ APPROVED AS TO FORM AND LEGAL . FICI NCY 1 r LI H. -s I�n��ty Attorney Moved by: ( ny r.,w gt nran ODYn14-0 Seconded by:"I Ce Mp t,�er H 1414.42 Vote: 5- b Moil Mayor Edelcup (Yes) (No) Vice Mayor Thaler (Yes) (No) Commissioner Brezin 1/(Yes) (No) Commissioner Goodman ✓(Yes) (No) Commissioner Scholl //(Yes) (No) 82008-FPL Agmt Undergrounding Phase II Page 2 of 2 Florida Power 8 Light Company, 700 Universe Blv.,Juno Beach, FL 33408-8248 FPL December 7, 2007 Mr. Jorge Vera Assistant City Manager City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, FL 33160 Re: City of Sunny Isles Beach—Overhead to Underground Conversion Project Phase 2 - N.E. 172 St. from North Bay Road to Collins Avenue WR # 2842318 Dear Mr. Vera: FPL welcomes the opportunity to assist you in determining if underground service is right for your area. As per your request, we have completed a binding cost estimate for the N.E. 172 Street — Phase 2 project. The binding estimate amount, known as the Contribution In Aid of Construction (CIAC), required for converting the area to underground is S179,140.00. This amount is based on the enclosed design. In addition, the cost estimate includes a more than 5120.000.00 adjustment credit for both FPL's new Government Adjustment Factor (G.A.F.) waiver and as required in the CIAC formula. tariff Section 12.1, credit for an equivalent overhead system designed at the current hardened (i.e. extreme wind) standard. Further the cost assumes the following: • Rapid trench construction (e.g. no temporary or permanent patching of the roadway, or replacement of traffic loops) • All work will be performed during the daylight hours • Maintenance of Traffic (MOT) — Standard MOT - $47,874.00 allocation. Because MOT requirements are not in FPL's control, any MOT costs exceeding that presented above. FPL would require the City to reimburse FPL for any additional MOT costs beyond the standard charges that FPL reasonably and necessarily incurs to respond to directions from the City or any other body having authority over the traffic and/or public safety on roads within the City. This binding cost estimate is valid for 180 days and a response must be received within that timeframe. Should you agree to move forward with the project, please sign and return the enclosed documents. Once we receive the acceptance package (e.g. partially executed documents), we will commence the construction process (i.e. initiate bid requests and material purchasing). Any deposits that you have already paid will be applied towards the CIAC and you must pay the remaining difference of $156,460.00 before we begin construction. However, if you choose to cancel your request or not respond in time, your engineering deposit will not be returned and the estimate will be withdrawn. an FPL Group company Page 2 This estimate only includes the charges to be paid to FPL. There are additional costs which are the customer's responsibility and should also be considered. These potential costs include: • Site restoration (sod, landscaping, pavement, sidewalks, etc). • Rearrangement of customer electric service entrances (requires electrician) from overhead to underground. Also, additional customer expense if local inspecting authorities require customer wiring to be brought up to current codes. • Trenching/backfilling for service laterals. • Removal and burial of other utilities (e.g. telecom, CATV, etc.). • Any project scope changes that modify the enclosed drawings. • Acquiring, describing, securing and recording of easements for underground facilities. We look forward to working with you as this project progresses. If you have any questions, please contact me at 561-694-4029. Sincerely. " // fhn C. Lehr, Jr. oject Specialist- Dist ution FPL Attachments an FPL Group company Overhead to Underground Conversion - Customer Cost Sheet Project:City of Suny Isles Beach -Phase 2 Date Estimate Provided to Customer: Dec. 7, 2007 Underground Cost New UG Installation(+) 5270,283 Cost for FPL to install new underground facilities Equivalent OH Installation(-) (560,556) Cost to install an overhead system at current hardening standards Existing Overhead Cost OH Removal Cost&Make ready(+ $27,532 Cost for FPL to remove existing overhead facilities Existing OH Value(+) $1,594 Net Book Value of existing OH facilities to be removed Salvage Value(-) SO Credit for re-usable items Subtotal* $238,853 Total customer contribution as specified in Tariff 12.2.3 GAF ($59,713) CIAC' $179,140 Engineering Deposit(-) (522,680) Engineering deposit previously collected Customer work performed SO Customer labor for the conduit&concrete products installation Net Due FPL' $156,460 Total customer contribution owed • Cost Breakdowns for Customer Contributions Direct Engineering, Total LaborNehicle Material Supervision,and Support New UG Facilities(+) 5270,283 5122,297 $99,466 $48,520 Credit for equivalent OH(-) ($60,556) ($29,336) ($22,606) ($8,614) OH Removal Cost (+) $27,532 $25,432 SO $2,100 Total $237,259 $118,393 $76,860 $42,006 Net Book Value(+) $1,594 Salvage Value(-) SO _ Subtotal' $238,853 GAF ($59,713) CIAC' $179,140 Engineering Deposit(-) ($22,680) Engineering deposit previously collected Customer work performed SO Customer labor for the conduit&concrete products installation Net Due FPL' $156,460 Major Material Breakdown Quantity Item 5,316 Primary UG Cable(feet) Install 3 UG Switch Cabinet(each) 2 UG Transformer(each) 1 Splice box for UG feeder(each) 3,861 OH Primary Conductor(feet) Remove 12 Poles(each) 4 OH Transformer(each) 0 Primary UG Cable(feet) '- Estimate includes$47,874 for Maintenance of Traffic Fifth Revised Sheet No.9.725 FLORIDA POWER& LIGHT COMPANY Cancels Fourth Revised Sheet No.9.725 UNDERGROUND FACILITIES CONVERSION AGREEMENT— GOVERNMENTAL ADJUSTMENT FACTOR WAIVER This Agreement, which is al6aigbie to customers that sign the Agreement on or before October 30, 2008, is made and- entered into this I 3- day of Beeembf r. 200by and between CITY OF SUNNY ISLES BEACH ("Local Government Applicant"), a Florida municipal corporation or county with an address of 18070 Collins Avenue, Sunny Isles Beach, Florida 33160 and FLORIDA POWER & LIGHT COMPANY ("FPL"), a Florida corporation with an address of P.O. Box 14000, 700 Universe Boulevard, Juno Beach, FL 33408-0429. WHEREAS, the Local Government Applicant has requested that FPL convert certain overhead electric distribution facilities located within the following boundaries(the"Conversion"):Along N.E. 172 Street Between North Bav Road and Collins Avenue (see attached drawings, WR 4 2842318) (collectively, the "Existing Overhead Facilities") to underground facilities, including transformers, switch cabinets and other appurtenant facilities installed above ground as set forth in Attachment A hereof (collectively,the"Underground Facilities"). NOW THEREFORE, in consideration of the foregoing premises and the covenants and agreements set forth herein, and other consideration the sufficiency of which is hereby acknowledged, the parties intending to be legally bound, hereby covenant and agree as follows: 1. Governmental Adjustment Factor Waiver ("GAF Waiver") Eligibility Criteria. The Local Government Applicant represents and warrants that it meets the following eligibility criteria for the Conversion: a. In order for the Conversion to incorporate a sufficient amount of overhead facilities to provide electrical continuity, the Conversion must include a minimum of approximately 3 pole line miles or approximately 200 detached dwelling units within contiguous or closely proximate geographic areas(the"Conversion Area"). The Conversion may be completed in mutually agreed upon phases, with the project size minimums applying to the aggregate project — provided that any necessary subsequent phase begins within a 1 year period from completion of the prior phase and the minimums are met within,at most,3 phases;and b. The Local Government Applicant must require all customers within the Conversion Area who currently have overhead service directly from the Existing Overhead Facilities to convert their service entrances to underground within 6 months of completion of the Underground Facilities installation or each phase thereof; and c. The Local Government Applicant must be willing and able to execute a right of way("ROW")agreement with FPL if the Local Government Applicant requests that facilities be placed in the ROW;and d. For any affected laterals, the complete lateral must be convened, including all stages of any multi-stage lateral; and e. There are no state or federal funds available to the Local Government Applicant to cover any portion of the cost of the Conversion. Special Circumstances. Conversions which do not meet the project size minimums described in section l.a are eligible for the GAF Waiver in the following special circumstances: i. 100%of the Existing Overhead Facilities within the Local Government Applicant's corporate limits are to be converted,but are less than the pole line mileage or dwelling unit minimums;or ii. A single lateral that serves at least one Critical Infrastructure Facility as determined by the appropriate local agency with the mutual agreement of FPL;or iii. An island or peninsula where 100%of the Existing Overhead Facilities are to be converted;or (Continued on Sheet No. 9.726) i Issued by: S. E. Romig, Director,Rates and Tariffs Effective: May 4,2007 Fifth Revised Sheet No.9.726 FLORIDA POWER& LIGHT COMPANY Cancels Fourth Revised Sheet No. 9.726 (Continued from Sheet No.9.725) iv. When the aggregate size of the first 3 phases of a project would satisfy the minimum size criteria but, for mutually-agreed engineering or logistical reasons, those phases are non-contiguous; provided that (a) the next (4th)phase must be adjacent to one or more of the first 3 phases such that the combined contiguous area meets the minimum size criteria, and (b) this 4t° phase begins within I year from completion of the 3`"phase. 2. Contribution-in-Aid-of-Construction (CIAC). The Local Government Applicant shall pay FPL a CIAC as required by FPL's Electric Tariff and Section 25-6.115 of the Florida Administrative Code with the Otherwise Applicable CIAC amount reduced by the GAF Waiver. i. Otherwise Applicable CRC S_238,853 ii. GAF Waiver S 59,713 iii. CRC Due S 179.140 In the event the actual cost of the Conversion exceeds the estimate, the Otherwise Applicable CIAC shall be adjusted by the lesser of(a)the difference between the actual cost of the Conversion and the estimate, or(b) 10% of the Otherwise Applicable CRC identified above. The GAF Waiver shall also be adjusted accordingly and the Local Government Applicant shall pay FPL the resulting difference in the amount of the CIAC Due. 3. Applicant-Installed Facilities. The Local Government Applicant may, upon entering into an applicant- installed facilities agreement satisfactory to FPL, construct and install all or a portion of the Underground Facilities. Such work must meet FPL's construction standards and FPL will own and maintain the completed facilities. The Local Government Applicant agrees to rectify any deficiencies, found by FPL, prior to the connection of any customers to the Underground Facilities and the removal of the Existing Overhead Facilities. 4. Compliance with Tariff. The Local Government Applicant agrees to comply with and abide by the requirements, terms, and conditions of FPL's Electric Tariff. 5. Timing of Conversion. Upon compliance by the Local Government Applicant with the requirements, terms, and conditions of FPL's Electric Tariff, this Aereement and any other applicable agreements, FPL will proceed in a timely manner with the Conversion in accordance with the construction drawings and specifications set forth in Attachment A hereof 6. Relocation. In the event that the Underground Facilities are part of,or are for the purposes of,relocation,then this Agreement shall be an addendum to the relocation agreement between FPL and the Local Government Applicant. In the event of any conflict between the relocation agreement and this Agreement or the Electric Tariff, this Agreement and the Electric Tariff shall control. 7. Term. This Agreement shall remain in effect for as long as FPL or any successor or assign owns or operates the Underaround Facilities. 8. GAF Waiver Repayment. If the Local Government Applicant does not satisfy the relevant eligibility criteria,the Local Government Applicant shall repay the GAF Waiver within 30 days of written notice from FPL of such failure. Additionally, if at any point within 30 years of completion of the Underground Facilities installation, the Local Government Applicant elects to have electric service within the Conversion Area supplied by a provider other than FPL, the Local Government Applicant shall repay FPL a pro-rata share of the GAF Waiver. The pro- rata share(which shall reflect partial years)shall be determined as follows: GAF Waiver' [(30—years since the Underground Facilities completion date)/30] (Continued on Sheet No. 9.727) i Issued by: S. E. Romig, Director, Rates and Tariffs Effective: April 4,2006 FLORIDA POWER& LIGHT COMPANY Original Sheet No.9.727 (Continued from Sheet No. 9.726) 9. Termination Prior to the Conversion Completion. Failure by the Local Government Applicant to comply with any of the requirements, terms, or conditions of this Agreement or FPL's Electric Tariff shall result in termination of this Agreement. The Local Government Applicant may terminate this Agreement at any time prior to the start of the Conversion and the CIAC paid by the Local Government Applicant will be refunded to the Local Government Applicant;provided however,that the refund of the CIAC shall be offset by any costs incurred by FPL in performing under the Agreement up to the date of termination. 10. Assignment. The Local Government Applicant shall not assign this Agreement without the written consent of FPL. 11. Adoption and Recording. This Agreement shall be adopted by the Local Government Applicant and maintained in the official records of the Local Government Applicant for the duration of the term of this Agreement. This Agreement also shall be recorded in the Official Records of the County in which the Underground Facilities are located, in the place and in the manner in which deeds are typically recorded. 12. Conflict between Terms of Franchise Agreement. In the event of a conflict between the terms of this Agreement and any permit or franchise agreement entered into by Local Government Applicant and FPL, the terms of this Agreement shall control. IN WITNESS WHEREOF, FPL and the Local Government Applicant have executed this Agreement on the date first set forth above. CITY OF SUNNY ISLES BEACH FPL z. Signe. .4/ 4/_.__ .. Signed S. QGerf ,., Name kyyt.R S. J. 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