Town of Gulf Stream Undergrounding Update February 8
Town of Gulf Stream Undergrounding Update February 8, 2013 Brannon & Gillespie, LLC 12798 W. Forest Hill Blvd. Wellington, Florida 33414 Presented by Danny Brannon 1
Undergrounding Brannon & Gillespie, LLC 12798 W. Forest Hill Blvd. Wellington, Florida 33414 FPL has issued an Underground Facilities Conversion Agreement for Phase One which extends from Golfview Drive to the southern Town Limits of Gulf Stream. The previous FPL Agreement called for a contribution in the amount of $1, 228, 010 for all work by FPL. The conversion to Vista switches and the elimination of one switch generated an added cost of $3, 435. Presented by Danny Brannon Date: 2 -8 -2013 2
Undergrounding Construction By the Town The Town will execute an Agreement that will provide for the Town to install the FPL underground facilities provided our RFP generates reasonable proposals. FPL final design drawings were received Wednesday, Feb. 6 th, and our plans for Comcast conduits, AT&T conduits, and Lighting are being synchronized with their plan. The Town will move forward with issuing a Request For Proposal for the Construction work by the end of this month. The Town will have the option to use FPL or use our own contractor secured via the RFP. A Landscaping Services RFP for Continuing Services will be issued by the Town upon completing of review by staff and the Town’s attorney. Some Pending Questions 1. Has the FPL route generated the requirements for any additional easements. 2. Clear Zone requirements may impact our route plan and/or require easements along S. R. A 1 A. Brannon & Gillespie, LLC 12798 W. Forest Hill Blvd. Wellington, Florida 33414 Presented by Danny Brannon Date: 2 -8 -2013 3
FPSC Complaint The Complaint was file as follows. The Town of Gulf Stream, Florida, is concerned as to the responsiveness of the Florida Power & Light Distribution Engineering Department, and is concerned that requests for “Binding Cost Estimates” are not receiving a reasonable priority relative to work scheduling. The Town of Gulf Stream has ongoing communications with the Florida Power & Light Project Manager and is aware generally of the status of our requests as they move through Florida Power & Light’s process. There are specific time frames for accepting the agreement after the delivery of the Binding Cost Estimate, but there are no Florida Power & Light Company commitments relative to the time frame for the delivery of the Binding Cost Estimates to the applicant. The purpose of this “Complaint” is to seek a commitment from Florida Power & Light Company for a reasonable delivery time. Florida Power & Light Company has taken some excellent actions to improve the reliability of their distribution system. After the Hurricanes of 2004 and 2005, Florida Power & Light Company issued a Storm Secure initiative to improve the ability of the electric distribution system to withstand the impacts of tropical storms. Five specific measures were included with four of the measures targeted to improving the reliability of overhead pole lines. The fifth measure was to promote the undergrounding of Florida Power & Light Company distribution facilities. New provisions were made for agreements to allow the underground facilities to be installed within street right-of-ways. Tariff filings entitled “UNDERGROUND FACILITIES CONVERSION AGREEMENT” were submitted and approved to provide for the undergrounding of existing overhead line facilities. Provisions were made for Florida Power & light Company to collect engineering deposits and produce “Binding Cost Estimates” when applicants submitted requests for such services. Many communities have found undergrounding to be very beneficial in improving the reliability of the distribution system. Many applicant communities have sought to take advantage of the economic downturn to acquire contract construction services at reduced costs. Having seen the benefits of undergrounding in other communities and seeking to take advantage of the lower contractor costs, the Town of Gulf Stream held Town Hall informational meetings and the residents voted to undertake an undergrounding project. Financing was arranged and funds were placed in a project bank account. With these things in place, The Town requested Florida Power & Light Company to provide a Binding Cost Estimate. (Continued on the Next page) Brannon & Gillespie, LLC 12798 W. Forest Hill Blvd. Wellington, Florida 33414 Presented by Danny Brannon Date: 2 -8 -2013 4
FPSC Complaint (Continued from the Previous Page) The Town of Gulf Stream submitted a request to Florida Power & Light Company on February 6, 2012, requesting a Binding Cost Estimate and included the requested $19, 526 engineering deposit. We finally received the requested Binding Cost Estimate on Jan. 30, 2013. The delivery was almost a year after the request was made and the interest on the borrowed funds was ongoing. As the economy has somewhat improved and is forecast to continue to improve, the Town feels they have missed the best period of the low contractor prices, and expects to experience increases in construction costs due to the delay in delivering this Estimate. At this point, the Town has the requested Binding Cost Estimate and will move forward with this phase of the work. However, this phase is only half of the overall project and a request for another Binding Cost Estimate will be forthcoming in the near future. The Town cannot wait another year for delivery of the next Binding Cost Estimate. As previously stated, the purpose of this “Complaint” is to improve the process by seeking a commitment from Florida Power & Light Company for a reasonable delivery time. Danny Brannon, Project Manager c/o Town of Gulf Stream 100 Sea Road Gulf Stream, FL 33483 FPSC TRACKING NUMBER 33230 Brannon & Gillespie, LLC 12798 W. Forest Hill Blvd. Wellington, Florida 33414 Presented by Danny Brannon Date: 2 -8 -2013 5
Street Lighting LEASE-PURCHASE OPTION -Generally there will be three components of a Lease-Purchase Installation. Facilities would typically be purchased for $1 at the end of the term. I have contacted a local provider, US Energy Affiliates, who is gathering additional data. 1. The Leasing Company will secure funding for the lighting system Installation. The Town will construct the system and draw from the funds. It is currently expected that the interest rate would be around 4 percent. The typical term is currently 84 months, however a longer term may be negotiable. Assuming $3000 installed per light, 85 lights total, the installation cost would be approximately $255, 000. Over 120 months, payments would be approximately $32 per light per month. 2. Florida Power & Light Company would invoice the Town directly for the energy usage at approximately $7 per month. LED would be less. This cost will be the same for all options. 3. The Town would hire a maintenance contractor who would charge approximately $200 per year, or $17 per month per light to patrol and replace lamps and ballast as needed. LED and high fixture density would be less. Brannon & Gillespie, LLC 12798 W. Forest Hill Blvd. Wellington, Florida 33414 Presented by Danny Brannon Date: 2 -8 -2013 6
Landscaping An RFP was advertised for a Landscaping Vendor who would provide services under a continuing services contract to remove and restore landscaping as needed in support of the undergrounding project. We had two responses as follows: Landscapes of Distinction, Inc. Lake Worth, Florida And West Construction, Inc. Lake Worth, Florida We are in the process of evaluating and developing ratings. Brannon & Gillespie, LLC 12798 W. Forest Hill Blvd. Wellington, Florida 33414 Presented by Danny Brannon Date: 2 -8 -2013 7
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