HomeMy WebLinkAboutDocumentation_Workshop_Tab 03_5/31/2022Agenda Item #3.
Workshop
STAFF
Meeting:
Staff Contact
MEMO
Workshop - May 31 2022
Jeremy Allen, Village Manager
Department: Manager
Discuss due diligence process associated with converting all overhead lines (OH) and facilities in the
desired subdivision.
As part of the adopted Strategic Plan dating back to the 2021-22, Council has had a desire to look into
undergrounding of utilities within the Village. Recently Mr. Bradford has expressed to Council he would
consider doing due diligence for the Village as he has considerable experience in this field.
Mr. Bradford has provided documentation on the process that should be considered by Council for
further direction.
This document and any attachments may be reproduced upon request in an alternative format by completing
our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768-0443.
BUDGETED AMOUNT: NA AVAILABLE AMOUNT: NA EXPENDITURE AMOUNT: NA
Additional Budgetary Information: Funding Source(s):
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Due Diligence Memo for TCCC 052322 (Merged) copy
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Agenda Item #3.
Memo
To: Village Council
From: Thomas G. Bradford
cc: Jeremy Allen, Village Manager
Date: May 25, 2022
Re: Due Diligence Report for a Tequesta Country Club Community (TCCC)
Underground (UG) Utilities Project
Introduction and Overview
The purpose of this report is to provide the Village Council, staff and TCCC stakeholders with an
overview of the considerations you must undertake in order to initiate and properly complete a due
diligence process associated with converting all overhead lines (OH) and facilities in the TCCC to
UG, and possibly other adjacent subdivisions, all of which pertains to the feasibility of UG for the
area in question. Only the VOT decision -makers and/or the citizens affected can determine the
actual feasibility of such an important public works project. Ultimately, you may want to obtain
an estimated Opinion of Cost for the potential project, but you are not there yet. There are too
many unknowns at this early stage. You have a way to go first before you can even begin to
contemplate a cost estimate for doing such a project. This will become evident as you work through
this due diligence process. It is necessary to have a basic understanding about all the variables and
nuances that can arise in an UG project so that you are armed to respond intelligently to the
enumerable questions that will arise.
It should be stated at the outset that this report is based on the assumption that one will hire a
general contractor to oversee the UG work for you as opposed to having the three utilities do the
work themselves. Why is that? One, there has never been a project I have been involved in where
it costs less to have the three utilities do the work, even though you will be required to use the
equipment required by each utility. Second, you are in control of your contractor, but you are not
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Agenda Item #3.
in control of FPL, AT&T and Xfinity. They will leave the job site if needed elsewhere. These firms
do not often engage with one another and coordination is unwieldy at best when trying to control
the comings and goings at a job site. Hire your own general contractor.
There are a number of Exhibits attached at the end of this report that provide additional
information, including access to some videos on aspects of the UG process, specifically on the use
of horizontal directional boring (HDD) that is a tool that minimizes much of the typical
construction disruption one might expect.
Issues to be addressed within this report include:
o Estimated Timeline
o A general project description
o UG Construction Sequence
o Enumeration of alternative construction delivery methods and some pros and cons of each.
o Options for financing the project's estimated costs, including the impact on the VOT's
budget when comparing the "California" Pay -Go and Cash funding to fund the costs of
underground utility lines, the question of income tax deductibility, and identification of
grant programs to provide funds that may augment VOT funding of the identified costs.
o Policy questions that the Mayor and Village Council are anticipated to face in regard to
any effort to convert aboveground utility lines to underground are also enumerated for the
benefit of VOT decision -makers.
o Associated Costs
o Additional staff assistance, if any
o Provision of a set of Frequently Asked Questions (FAQ), with answers the VOT may
choose to use as may be needed in the future.
Proiect Description
The conversion process for OH utility facilities to underground (UG) service within TCCC will
improve the safety, reliability, and aesthetics of the area's electric and communications
infrastructure. It is important for all stakeholders to fully understand what this conversion process
actually entails. Planning, financing, design, permitting, easement acquisition, and the bidding
process occur on the front end and can take up to 12 or more months depending on the size of the
area to be converted and any local complexities. The totality of the construction work can take up
to 18 months from the very start of construction to final completion of each phase of construction,
if phases are applicable. All totaled, one can reasonably expect a minimum of 24-27 months from
start to finish, including engineer selection, design, permitting, bid documents, contractor selection
and mobilization, but not counting the due diligence process. The time frame can be longer if one
or more areas outside of TCCC are included. However, if phases will be involved a sort of
assembly line process is used so that while the construction of the first phase begins, so does the
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planning, design, permitting, and bidding for the next phase begin so that the process segues from
one phase right into the other.
There are ways to potentially shorten this projected timeline, but those possibilities should only be
reviewed with your chosen project engineer to enable him/her to opine on the costs, feasibility,
and risks associated with any acceleration option. This proposed project timeline is based on
normal circumstances and typical timeframes for the steps within the timeline experienced by me
in my career, whether for UG projects or for others that require the same steps to complete. The
timeline provides no provision of time for the unknown such as force majeure, strikes, supply
chain disruptions, hurricanes, or pandemics, just to name a few.
Project Tasks and Cost Drivers
Tasks/Cost Drivers
Engineering
Construction (CMAR)*
Miscellaneous
Preconstruction Services w/
Design Phase Services
Design Team
Easement Recording Fees
Contractor Open Book
Construction Procurement
Permitting
Services for subcontractors
Easement Acquisition Fees
Easement Sketches and
Bid Phase Assistance
Change Orders
Descriptions
Public Utility Design Costs
Design Phase Meetings
FPL, AT&T, Comcast
Surve in
Construction Phase
Public Utilities Construction
Engineering Services
Costs (FPL, AT&T,
Comcast)
Project Contingency
*(CMAR) Construction Management at Risk
Construction Sequence
The various stages (construction sequence) of the undergrounding construction process are
enumerated below. To be clear, a typical scenario entails replacing rear yard OH lines and facilities
with front yard UG lines and facilities. The FPL UG service standard requires front yard service
for ease of access as may be needed over time. It should be made clear that even though the
requestor of conversion from OH to UG pays for the conversion, once the new UG systems are
approved and accepted by the utility companies, it becomes the responsibility of the utility
companies to operate and maintain the facilities. They take ownership of the new UG system and
will repair and replace it in perpetuity from that day forward. Neither the VOT nor the property
owners have any responsibility to maintain or replace the new facilities.
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Conversion of OH to UG entails first constructing the new UG system, including conduit and
ground -based equipment. The work to convert to UG facilities is not as intrusive as one might
think thanks to major advances in the use of horizontal directional drilling (HDD) equipment
which greatly reduces the amount of disturbance in the construction zone. See this video link to
see HDD in action:
hqs://www.youtube.com/watch?v=sMTQJjgF31g&feature=youtu.be
However, in some instances, digging of a trench is required depending on soil conditions, site
issues, and whether any other work is being done in the construction zone for convenience while
UG is underway, such as, stormwater or water main improvements. Once this new UG system is
installed, tested, and approved by the utility firms, final switch over occurs. At that point in time
the utilities remove their legacy OH systems from the poles. Thereafter, typically it is most often
FPL that systematically removes the poles. Once the new system has been accepted by the utility
firms the ground -based equipment can be screened with landscaping by the VOT or the property
owner. Landscaping and restoration can be included in the construction contract scope of work to
save time and money.
Transformers and Other Equipment:
During installation of the new UG system, transformers will be placed at locations on the ground
atop a 6-inch concrete pad pursuant to the design plans required by FPL, which are based upon
system electrical demand. A small easement may be necessary at various locations for placement
of the transformer, if the unpaved portion of the right-of-way cannot be used for the same. Large
portions of unpaved right-of-way (swales) exists in TCCC. Easements at single-family residences
are typically 10'X 10'. In some cases, they may be allowed to straddle a property line whereby
two 5'X 5' easements adjacent to one another may suffice. Transformers are on average located
on one of every 4 or 5 properties being converted to UG. Location and number are dictated by
demand and system design which is controlled by FPL. AT&T and Comcast/Xfmity have service
pedestals that are located as needed in the same easement. Larger ground -based equipment
includes switch cabinets, capacitor banks, fiber distribution cabinets, and at grade hand holes.
Larger ground -based equipment has to be strategically located since they may require larger
easements if right-of-way is not available. By entering a Right -Of -Way Agreement with FPL
facilities can be placed in the right-of-way, but sometimes this is not feasible and an easement will
be required. See photos of transformers screened with landscaping both in an easement (at my
property) and within unpaved right-of-way in Jupiter Inlet Colony.
Lateral Lines:
Before construction begins, a review is undertaken at each property to determine the current point
of service i.e., the location where the lateral line from each home connects to the utility company
distribution line out by the street or in a rear yard easement, to ensure it is up to code or if there is
any need for the location to be changed. The need for this to be changed would be rare if the VOT
had required all individual service laterals to be converted to UG in the past. This review ensures
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project designers know where the point of service is, or will be, so that if any work associated with
the location of the lateral is required this can be planned for and done in a timely manner in keeping
with the construction schedule. if the current on -site set up is not up to Code or the meter box is
not up to code the homeowner is required to make this upgrade. Any unusual modifications to the
point of service delivery are also a property owner's responsibility. Meters not being up to Code
is rare because FPL converted all meters to remote read meters several years ago and code issues
were usually addressed at that time. A number of street lights, perhaps only on Country Club Drive
may be served by OH laterals and will be converted to UG service.
Horizontal Directional Drilling (HDD):
The first step in the construction process will begin with construction equipment and materials
such as conduit being placed at a "laydown" area to be determined. Each work area will require
new ground mounted transformers in various locations required by FPL. Every location will
require a UG service drop where the new UG lateral to the house interconnects with the new UG
distribution line. If the unpaved portion of the right-of-way cannot be used, the contractor saw cuts
the street pavement to remove it and then digs a small pit. The same is done at the location of the
next point of service north, south, east or west of the first location depending on which direction
the contractor chooses to work. The HDD equipment, about the size of a small sub -compact
automobile, is then brought to the site of the first pit to drill a pathway under the street pavement
and things like driveways from one pit to the next pit or property service drop wherein the conduit
for utility lines will be run. Once the conduit is installed, the conduit is capped and the process
described continues down the street until finished. See the HDD video referenced above.
Connecting the Lines:
Upon completion of the installation of the conduit, the contractor begins the process of running
the lines in the conduit, connecting the lines to the transformers and to each property. Up until this
point in time, your property will have been receiving service from the OH facilities. Once
connected to the new UG network and approved by FPL and the other utilities, the property will
no longer be receiving electric service from the overhead facilities. This switchover takes a couple
of hours to complete at each residence. During this time, the property will have no service so that
the work can be done safely. The date and time of the switchover will be made known to property
owners well in advance so that they can plan accordingly.
Removal of Overhead Lines & Poles:
Once the switchover to the new network is complete and the overhead facilities are no longer in
use, FPL crews are called upon to remove all overhead lines, transformers, other equipment, and
poles. Upon completion, the contractor, or the chosen landscaping subcontractor, begins restoring
landscaping in easements or the right-of-way to screen the transformers in an acceptable manner,
unless the property owner prefers to do it.
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Punch List and Completion:
When the landscaping is completed and the contractor has met all terms and conditions of his
contract with the Town, including correction of any punch list items noted in the final inspection
of the work, the UG conversion will be completed. At this point, if the contractor had to cut the
road to provide new UG service, those roads which were cut will be properly patched or milled
and resurfaced in accordance with any VOT, County, or FDOT requirements, whichever applies.
Repaving at this time is predicated upon all planned public utility upgrades being completed, if
their renewal or replacement is determined to be required at this time or in the very near future.
Other public sector work such as planned paving projects, water lines, drainage lines, streetlights
and sanitary sewer lines can be made part of the scope of work for the UG contract to do for
convenience while doing the UG work. This is common.
Construction Methodology Options
There are some exotic construction delivery methods being developed and in use out there today
which may not even be approved for municipal use per Florida Statutes. I am only going to focus
on the three main ones in use today. I will summarize each and list some major pros and cons of
each.
Design -Bid -Build
This is likely the option you are most familiar with. Its name tells you the three sequences used in
the delivery method. Central to understanding this process is the second step, the bidding process.
On the one hand, competitive bidding has the potential of providing very competitive construction
pricing because you will seek out the lowest cost and most responsible bidder, but that is also the
source of potential problems during construction.
Pros:
o You know the process and you are comfortable with it.
o With typical projects, the design phase is controlled by your engineering team on
your behalf. However, undergrounding is not a "typical project."
Cons:
o It has the potential of turning the contractor into an adversary often due to his need
to generate profits lost in the competitive bidding process in order to secure the job
in the first place.
o The contractor does not have a seat at the table during design. Upfront contractor
input on constructability can avoid many problems and reduce costs in construction.
o Quality issues can arise if fixed pricing is used. Unit pricing incentivizes the
contractor to increase the scope of the work.
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Construction Management at Risk (CMAR)
The construction management team selected by the Owner, in this case the VOT, serves as the
general contractor, selects the subcontractors, using your competitive procurement process, if
desired, with an open book so that you see the costs submitted from the subs, takes on the risks,
and guarantees the maximum price. CMAR is usually hired before design (pre -construction
services) is finished so that CMAR can opine on constructability issues, schedule, and standards
being used all before bidding out the sub work to potentially save money. You may need to modify
your construction procurement options to allow this State approved process to be used, if you have
not done so already. However, I think you used CMAR for the new Recreation Center.
Pros:
o Reduces demand on VOT staff.
o Construction contingency is returned to the owner if cost is less than the guaranteed
price.
o Contractor has a seat at the design table before design is finished improving
constructability and the value engineering process.
o Quality of subs improves since CMAR contractor is financially at risk if they fail
to deliver.
o CMAR providers are chosen on qualifications. Continued provision of quality and
success are paramount to their continued success.
o Probability of conflict between Owner and contractor is greatly reduced.
Cons:
o If job conditions change that were not anticipated during design and price
development, the change order process can be tough.
o Success depends on getting the right CMAR for the job. UG experience is critical.
Design -Build
Design and construction services are provided by the same entity. That results in one stop shopping
for the VOT should problems arise. Many problems may be settled internally. A two-step process
is used. First, the VOT hires a professional to develop a scope of work and a cost estimate for that
scope. Second, the VOT seeks firms to design and construct the project either through a process
similar to CMAR or by fixed price lump sum agreement.
Pros:
o Change orders are most often owner driven.
o Can be a faster delivery process than Design -Bid -Build.
o One stop shopping for VOT when problems arise.
o The designer and contractor are at the table from day one
Cons:
o Not well suited for many aspects of undergrounding.
o Owner has less control.
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o Not well suited to local government approval and/or decision -making processes.
o Reduced checks and balances beneficial to the needs of the Owner.
To conclude this section of the report, I recommend the use of the CMAR process. I have used
both Design -Bid -Build and CMAR in UG projects and found that CMAR virtually eliminates on-
going haggling with a contractor over change orders and provides a higher level of service to the
local government and to the citizens and property owners affected by the work. By including pre -
construction advisory services into the CMAR contract, you create the ability to identify design
and process changes to save time and money and, if needed, construction can begin before design
is 100% completed. With CMAR you get the best of both worlds: price competition in the open
book subcontractor selection process and qualifications -based selection of the general contractor
serving in the CMAR role.
Any order of magnitude cost estimates will likely have to be based on the CMAR process and pre -
construction services by the CMAR will be included in all estimates of opinion of cost. This is
primarily due to the fact that the only location where large scale retrofit UG is occurring in this
region is managed with CMAR and those most current contracted unit costs will likely be
extrapolated to apply to TCCC units, such as linear feet of buried conduit pricing.
Order of Magnitude Cost Estimate (25% FPL Discount)
An Order of Magnitude cost estimate to convert every distribution OH facility to UG service in
TCCC, is not being proposed at this early stage of due diligence. There are too many unknown
variables to progress with a cost estimate at this point.
In order to receive the FPL 25% Government Adjustment Factor (GAF) discount, the VOT must
either convert the entire Village to UG or, alternatively, any given phase of work to be done must
be a minimum of 3 pole miles to receive the discount. Phases can be adjusted to be a minimum of
3 poles miles, as may be needed. if you wish to do less than the entire peninsula or proceed on a
piece -meal basis. Different phases are typically based on what are logical cutoff points to separate
one phase from another. An electrical engineer has the final say as to where to place a line of
demarcation between two phases.
Additional Construction or Project Issues
If you expand the scope of the area to be converted you may need to have an engineering Master
Plan prepared to coordinate all the moving parts. At this point, I think the entire Tequesta Country
Club Peninsula can be done without a Master Plan. However, I do know that the water main on
Tequesta Drive and Country Club Drive are going to be replaced very soon. Also, I recall that
there may be road paving work needed in TCCC. Therefore, either close coordination must take
place or those other public works can be consolidated into the UG contract.
UG projects are typically done in Phases of 3-5 pole miles. I will need to know how many
properties there are in TCCC, including the Country Club Clubhouse, pocket parks, boat ramp
property, empty lots and how many pole miles are in the TCCC. If Country Club Point is added to
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the overall project area or any other areas on the peninsula are added phases of work may be
required.
Due to the dollar value of the project, the Town will likely be required to comply with Florida's
Consultants' Competitive Negotiation Act (CCNA). See F.S. 287.055 and specifically F.S.
287.055(2)(g). The CCNA process takes 3 months to complete and price is not a variable one is
allowed to use in ranking firms submitting proposals, only qualifications and experience. Cost is
negotiated after selection. If you cannot agree to price, you move on to the next highest ranked
firm. At this point, allow me to state the obvious. When selecting your engineering firm, general
contractor, and key subcontractors only select firms that have experience in retrofit UG projects.
You are not operating a training facility or providing an on-the-job training program.
Any effort to place OH lines underground is quite an undertaking. A utility construction project
must be broken down into manageable pieces in order to be successful. A multi - year work plan
may be needed to accomplish the conversion. The other utility companies that must be contacted
include the Loxahatchee River District (LRECD), and the VOT itself for potable water, stormwater
and paving projects.
In the case of FPL, the VOT may be entitled to a credit for the funds that FPL would have invested
to address reliability a few years ago in the TCCC, which to my knowledge, was never done.
Secondary Service (Laterals) Cost Issues
Putting aside for the moment the issues that arise with OH transmission lines such as one sees on
Old Dixie Highway in Tequesta, the OH lines that one usually sees and hears complaints about are
utility distribution lines which are delivering service to major portions of the community. These
lines are called primary service lines and are owned and maintained by the utility company. In
addition to primary service lines, we have the lines that run from primary service lines, or primary
service facilities, to the structures on a parcel of land that require utility service provision. These
electric service drops are owned and maintained by the utility companies and are called secondary
service lines, but commonly referred to as laterals. The cost of providing the connection to the
home from the primary service or distribution line can be included in the cost of the project. In
addition to OH service drops to residences and other buildings we also likely have OH electric
laterals to service older streetlights in the VOT, perhaps on Country Club Drive and in other areas
on the Tequesta Peninsula outside of the interior of TCCC. Conversion to UG laterals for these
streetlights can be included in the cost estimate as well, once identified.
Soils Analysis
Pursuant to the content of a Florida Geological Survey (FGS) Map of Palm Beach County, which
I have studied in the past, the VOT soils likely consist primarily of:
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Qa -Anastasia formation. Variably lithified coquina of shells and sand and unlithified
fossiliferous sand.
Qd -Quartz sands with surface expression of dunes. A geomorphic unit on undifferentiated,
often clean quartz sands. Generally fine to medium grained.
The likelihood of rock beneath the surface, other sub -surface impediments, or rock out cropping
are unlikely to be encountered for construction planning purposes in the VOT. Muck, unstable
organic matter, may exist under roadways. This must be confirmed.
Funding/Financing Issues
Municipal Bonds 101: The Procurement Process and Key Players i
City and state governments issue municipal (or Muni) bonds to finance multimillion -dollar capital
improvement projects, such as buildings, roads, bridges and water treatment plants. The
government entity is borrowing money from investors with the promise of paying it back over time
with interest. Municipal bond investors consist of individuals and institutions. More than half of
the approximately $4 trillion in Muni bonds currently in circulation are held by individual
investors. The main participants in the municipal bond procurement process are:
• The government entity The city or state government issuing the bond.
• Municipal bond investors Individuals or institutions who purchase municipal bonds.
• Municipal advisor An outside expert who helps municipalities manage the risks of accessing
the public capital markets.
• Underwriter A "middleman" between the government entity and investors who actually sells
bonds to investors.
• Bond counsel An attorney who reviews the transaction for compliance both with local law,
to ensure it's an enforceable contract with the government, as well as federal tax law where
appropriate, to make sure the interest on the bonds is federally tax exempt.
• Rating agency An independent company (e.g., Moody's, S&P Global Ratings, Fitch Ratings
and Kroll Bond Rating Agency) that rates municipal bonds based on the likelihood the issuer will
default, or fail to repay the bond.
• Credit enhancer A third parry typically a bond insurance company or a bank that agrees
to make principal and interest payments if the issuer does not.
1 Bond Issuance Guide for Small & Mid -Sized Municipalities, Government Institute Handbook,
2017
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A municipal bond sale requires a two-step procurement process. First, the issuer needs to assemble
the team of professionals who will bring the transaction to market. Then, that team will execute a
second sale process to place the bonds with investors. The underwriter lines up investors for the
bond issue (and occasionally buys bonds itself), earning a fee from the issuer (the "underwriting
spread"). Once the underwriting process is complete, the city or state will receive the funds for the
project and the underwriter will notify the paying agent for the bonds. The government agency
will make principal and interest payments to the paying agent, who distributes payments to
investors.
There are a number of ways for the VOT to raise the funds necessary to undertake the work
described herein. This section of the report will identify the primary mechanisms available to the
VOT to provide the necessary funds to undertake a proposed capital improvement program.
Regardless of the funding options available, three important issues to be considered are the effect
on the annual budget, if any, and resulting impact on VOT taxpayers, if any; the requirement, if
any, for a referendum on the option chosen; and the question of tax deductibility for the cost
incurred.
Short Term Interim Financing
How does a municipality fund the startup of an expensive public works project for which it must
borrow funds to construct? One way is to use cash reserves. VOT has reserves, but I do not know
how much. It is best to keep most of your reserves for a rainy day. The other way is to borrow the
startup funding which is often called a bridge loan, mezzanine financing or, simply put, interim
financing. Either option provides the benefit of knowing your final costs before going to the long-
term financing plan chosen thereby helping to avoid a funding shortfall.
Tax and Revenue Anticipation Notes (TAN & RAN) and a Line of Credit (LOC) are the most
common vehicles for short term financing. TANS and revenue anticipation notes (RANs) are
generally short term, self-liquidating loans or lines of credit to meet the cash flow needs of a
municipality. These notes will be repaid with future tax collections, in the case of TANs, or
revenues from the project that is being financed, in the case of RANs. Typically, these loans or
lines of credit are tied to a specific revenue source and are collateralized by the revenue source.
These obligations are generally re -paid annually. New obligations are granted based on expected
cash flow needs.
These three options, TAN, RAN and LOC, are the most likely way that VOT will need to use to
finance the startup costs of a major undergrounding project. A LOC is the most common municipal
practice locally for interim financing. This is an excellent place to utilize the services of a
municipal financial advisor who can put together a solicitation process for banks to compete to
secure a line of credit for VOT. Your local bank is likely to want to participate as well. In these
volatile times, it is hard to predict what this cost might be, but for a 3-year bank LOC, I think it
would be currently be around 1.5% to 2.5% depending on when you close on such interim
financing. If VOT is AAA rated it could be lower.
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Bonds, General Obligation and Revenue (Long-term Financing)
The first option is to finance the cost of utility improvements over time through the issuance of
either general obligation bonds or revenue bonds. The primary benefits of long-term financing are:
o The payment of principal and interest over many years makes for lower annual debt
service payments making the impact to a local municipal budget more palatable to
taxpayers.
o If one pays cash for such expensive capital projects or uses very short-term financing,
one causes the current generation of municipal taxpayers to pay for the totality of the
cost of infrastructure assets that have a useful life of 30 or more years. Long-term
financing allows multiple generations of taxpayers to pay for the cost of public assets
that benefit them. With long-term financing, current taxpayers only pay their share and
not the costs that can reasonably attributed to future generations of taxpayers.
Underground conversion projects have a useful life in excess of 30 years and engineers
have signed, sealed and testified to this in courts of law in Palm Beach County.
General obligation (GO) bonds require a referendum because the full faith and credit of the
municipality, specifically, the municipal property tax authority is typically utilized to generate the
necessary funds. Debt service for general obligation bonds appears as a separate line item on a
property owner's tax bill and is Schedule A income tax deductible against a property owner' s
federal income tax return, if applicable. However, there is a hybrid of this used by Palm Beach that
keeps the GO debt off the property tax bill, which is the best of both worlds. If you are interested
in learning more about the GO hybrid let me know and I will explain it. The GO option is likely
unavailable to VOT if only a portion of the municipality is being converted to UG.
Revenue bonds, the second of the typical long-term options, do not require a referendum, although
a straw ballot could be conducted by the VOT to determine the taxpayers' willingness to fund the
same. Since the annual debt service would be a part of the VOT's general fund budget, the cost of
the same would be Schedule A tax deductible against a property owner's federal income tax return,
if the property tax rate increased as a result. Revenue bonds tend to have a slightly higher rate of
interest than general obligation bonds causing the annual debt service to be slightly higher than
general obligation bond debt service. Revenue bonds also require the formal designation of the
non -ad valorem revenue sources to be dedicated (collateralized) for the payment of the annual
debt service associated with the revenue bond. In this scenario, the annual debt service payments
required by the VOT to retire the debt will be offset by the equal amount of assessment revenue
being received from the non -ad valorem assessments to each benefitting property. The VOT or
your municipal advisor will be required to analyze or prove whether VOT has sufficient non -ad
valorem revenue capacity to fund a revenue bond of the size necessary to accomplish any proposed
work plan for burying utility lines. The VOT's possible future need for funding other projects with
long-term financing also with revenue bonds should also be taken into account by management
and finance staff when undertaking such an analysis.
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Agenda Item #3.
Debt Service Coverage Ratio (DSCR)
I have not checked it, but in all probability VOT has sufficient non -ad valorem revenues that can
be counted for pledging as collateral to repay debt for this specific UG debt.
Debt Service Reserve
You can be assured that the municipal bond investors, underwriter, and rating agency are all going
to either require or recommend the creation of a debt service reserve to ensure debt payment in the
event of a calamity or economic downturn. The typical scenario entails funding one year's debt
service payment in the debt service reserve. You can either borrow this money or use unassigned
funds within the VOT budget to fund it. If you have very healthy reserves for a for a city of your
size you can use a portion of these reserves to meet the anticipated debt service reserve requirement
and minimize the cost of the project to the applicable property owners. The funds and interest
generated, or portions thereof, are freed up at points in time as stated in the closing documents and
can be used at that point for any lawful municipal purpose, including paying any remaining debt
service for the project.
Non -Ad Valorem Assessments
The third and the most likely option available to the VOT for funding the proposed UG utility
work is to utilize both Chapter 170, Florida Statutes, supplemental and alternative method of
making local municipal improvements (assessments) and F.S.197.3632, the uniform method for
the levy, collection, and enforcement of non -ad valorem assessments, assessments which appear
each year on one's property tax bill. VOT uses this same combination of powers today when it
bills its citizens for the stormwater utility, garbage and recycling collection services on the property
tax bill. Use of non — ad valorem special assessments would side-step the issue of making property
owners who already have underground service from being taxed or assessed to pay for it again.
However, in an assessment program, those who are already underground can be required their fair
share of village -wide costs for village -wide benefits for which they have not yet paid. This option
can be used in conjunction with either GO bonds, Revenue bonds, or Special Assessment Bonds.
Special Assessment bonds have a higher interest rate than either GO bonds or Revenue bonds.
Remember, you still need to borrow the funds to make the improvements. Non -ad valorem
assessments are simply the way you collect funds necessary to pay off the bonded debt.
If the VOT uses assessments, it must create a methodology for calculating the benefit each property
owner would derive by virtue of undertaking the improvements. There are at least two primary
sources in Florida to secure this expertise. You want to use a methodology that has been upheld
by the courts. The assessments must be based on the benefits derived by the property owner.
Undergrounding projects do not lend themselves the use of the more standard process of using the
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Page 34 of 51
Agenda Item #3.
linear front footage of a property to assign costs, which if used, could prove to be unfair to those
property owners residing on corner lots, for example. The state of the art is to use the benefits of
safety, reliability, and aesthetics with formulas that generate equivalent benefit units (EBU) for
every property. The more EBUs assigned to your property, the more one's assessment is. This
methodology has been approved by the Palm Beach County Circuit Courts. Special assessments
are not Schedule A income tax deductible against a property owner's federal income tax return, if
applicable.
Pay as You Go
This option includes both cash funding and the pay-as-you-go option. Cash funding entails the
Village Council allocating the necessary funding on an annual basis to provide the capital
improvement program with the funding necessary to accomplish the annual work plan or to pay
the annual debt service once work is completed. This does not appear to be either financially or
politically acceptable, particularly since you are currently only contemplating a specific area of
the Village, as opposed to the entire Village. The millage rate may need to be raised to an
unacceptable level. No referendum would be required in order to accomplish this generation of
funds. However, since the appropriation would be discretionary the Village Council could conduct
a straw ballot of VOT voters to decide if they wished for the Village Council to proceed with such
funding to accomplish the utility work. Since the funds would be from the general fund, the
resulting taxes to the property owners would be Schedule A tax deductible on a property owner's
federal income tax return, if applicable. No referendum would be required in order to accomplish
this generation of funds. Political courage would be required. Once done, the funding is over and
no money was borrowed. However, you would still have the problem of currently undergrounded
properties paying twice.
The other option is PayGo, which is similar, but takes longer to accomplish. It is popular in
California. Cities there earmark revenue from multiple sources, including a fee on the electric bill.
When enough funds are on hand, the next designated section of the city is undergrounded. In the
past, I reviewed all of your non -ad valorem revenues and compared them to a long list of non -
property tax revenue sources and concluded that, based on your size and what services you provide,
you are already using every revenue source available and setting it at the highest rate allowed or
what you think the market can bear, with the exception of your utility tax rate that can be raised
from the current 9% to the 10% maximum, an increase of 11 %, which may be an inconsequential
amount of money for this PayGo exercise. Therefore, the only untapped source for a PayGo
program that may have no debt involved is to impose an increased ad valorem millage rate for a
set number of years. For example, with or without a straw ballot, you could increase the millage
rate by 1.0 mill per year to be placed into a safe interest -bearing account every year for a number
of years until you have enough on hand to commence construction and complete the job. Of course,
this does not side step the current undergrounded properties having to pay again as previously
inrliratPtl
14
Page 35 of 51
Agenda Item #3.
Special Taxing District(s)
This last option would be to implement a Special Taxing District. This option merits a deeper dive
if you are certain you are only going convert one specific area of VOT for now because the district
created does not have to gpply to the entire Village. There are numerous Special Taxing Districts
that the VOT could implement following the procedures spelled out in Florida Statutes. A listing
of possible Special Taxing District options that may be available to the VOT in this scenario,
whether alone or in combination with other listed Special Taxing District options, are as follows:
o Dependent Special District (F.S. 189.4041).
o Community Development District (F. S. 190.002).
o Local Government Neighborhood Improvement District (F. S. 163.506).
o Property Owners' Association Neighborhood Improvement District (F. S. 163.508).
o Special (Business) Neighborhood Improvement District (F. S. 163.511).
o Community Redevelopment Neighborhood Improvement District (F. S. 163.512).
Some Special Taxing Districts allow the Village Council to create the same by a vote of the Village
Council. Others require the vote of the impacted VOT electorate. Some Special Taxing Districts
allow for general taxing powers with a separate millage rate, usually capped. Some Special Taxing
Districts may only allow for the use of special assessments. Others grant both powers to the
governing authority of the Special Taxing District. All of the tools referenced in this report are
potentially available to you through the use of a Special District.
One important benefit of the Special Taxing District alternative is that it creates a separate line
item that appears on the tax bill of a property owner. This means that the VOT general millage rate
and its current debt service millage rate, if any, would not be affected by the cost of contemplated
utility work if funded through a Special Taxing District. Special Taxing District general millage
rates and debt service millage rates are Schedule A income tax deductible against one's federal
income tax return. Special assessments of Special Taxing Districts are not tax deductible.
Grants
This funding source is more important than ever and the timing could not be better. Grant funding,
if available, could prove useful in reducing the VOT total cost of the effort to place utility lines
underground. Research into possible grant funding sources reveals three primary areas where grant
funding may be obtained which are discussed below.
1) The Infrastructure Investment and Jobs Act was passed by Congress and it does include
funds to specifically upgrade power infrastructure and provide for resilient infrastructure.
Undergrounding checks off both of these boxes. This is a once in a generation window for
making infrastructure upgrades now. A grant writer should jump on this ASAP.
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Page 36 of 51
Agenda Item #3.
2) The Federal Emergency Management Agency (FEMA) operates the Hazard Mitigation
Grant Program (HMGP) as authorized under Section 404 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act. The purpose of the program is to reduce the loss of
life and property due to natural disasters and to enable mitigation measures to be
implemented during the immediate recovery from a disaster. Hazard mitigation planning
is an important aspect of a successful mitigation program. States and communities use the
hazard mitigation planning process to set short- and long-range mitigation goals and
objectives. Hazard mitigation planning is a collaborative process whereby hazards
affecting the community are identified, vulnerability to the hazards is assessed, and
consensus reached on how to minimize or eliminate the effects of these hazards.
On September 27, 2019, FEMA's Hazard Mitigation Grant Program awarded $8.5
million to the Town of Palm Beach to bury overhead power distribution lines with
underground lines in one of its phases of work. At my request, our staff applied for this
grant in 2015/2016. See this link for the FEMA press release on the award:
https://www.townofpalmbeach.com/DocumentCenter/View/11550/DR-4337-FL-NR-
378--FEMA-Awards-Town-of-Palm-Beach-Nearly-85-Million-to-Bury-Overhead-
Power-Lines?bidld=
Patience and perseverance are required as there is fierce competition. All grant project
submittals for HMGP funding are prioritized by a committee of county and municipal
representatives to which the VOT likely has representation. If you are truly interested in
reducing storm hazards to your electric and communications infrastructure via burying the
services, apply for a grant by placing at least one location of UG work on your local Hazard
Mitigation project list. The Countywide Hazard Mitigation Committee adds and ranks
projects on an ongoing basis.
3) Another option for communities to secure funding for utility underground conversion is
through the federal government, under the Transportation Equity Act for the 21 st Century
TEA - 21). Through FDOT, or the Palm Beach Transportation Planning Agency, the VOT
may be able to apply for Transportation Enhancement (TE) funds for utility burial or
relocation under the categories of landscaping, scenic beautification, or scenic /historic
highway programs and welcome centers. Utility relocations are often incorporated as a part
of a larger project to improve local appearance. For example, Vidalia, Georgia and
Augusta, Maine used TE funds to bury utility lines as part of their downtown improvement
projects. This source is not likely for residential areas, but has applicability at intersections
and in commercial areas.
Additional Cost/Funding Issues
Associated costs of the project are obviously engineering design and construction observation
services, permitting, if applicable, construction costs. Do not fail to include the provision of As -
Built drawings for every section of undergrounding work completed. This is paramount and can
16
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Agenda Item #3.
be added to the scope of the engineering contract. Some limited legal costs will be incurred to
prepare a standard easement agreement template to be used where needed and preparation of
several ordinances. You will need someone to prepare an assessment methodology report, which
becomes the basis of the assessment program. Use PFM in Orlando if you can. I think Rob Ori,
the man that prepared your latest water rate analysis works there now. Palm Beach used Jay Glover
also with PFM, Orlando. Mr. Ori is more of a technician and can put together an excellent
methodology report or oversee its production. Mr. Glover is a master in explaining things in
understandable terms and would be the perfect fit for walking you through the financing options
and recommending which is best for you. You will also incur easement acquisition costs, but this
can be included in the engineer's scope of work. There may be other costs that come to mind, but
the most important thing to remember is that 100% of your direct costs, such as stated here and
any others, are legitimate costs that may legally be added to the overall cost of the assessments to
be borne by the benetitting property owners. You will be legally able to recoup these costs if you
adopt a timely Resolution of Reimbursement as stated in this report. "Timely" means adoption
prior to incurring any of the costs. Your Village Attorney knows what a Resolution of
Reimbursement is.
Additional staff assistance may be required. Someone must be the coordinator of the entire project/
program. Whether you have the manpower currently in-house is unknown to me, but you can easily
find project coordinators on a contractual basis, but look for experience in managing UG projects.
This is a very important aspect of a successful UG project. The Project Coordinator conducts
weekly or bi-weekly team meetings, makes regular construction site visits, interfaces with the
public, coordinates all communications, including web -based access for the public, provides
regular reports to the elected officials and ideally conducts onsite "Coffee with the Crew," events,
informal meetings in the field at key intervals to address issues and set forth the game plan for
upcoming work with the property owners that are going to be affected by the work and to respond
to anything that comes up. Again, 100% of this cost, if contracted, can be reimbursed to you if you
adopt a timely Resolution of Reimbursement.
Village Council Policy Issues
The VOT's elected officials will be faced with many policy issues if this utility line conversion
work is pursued. For now, a listing of the known policy questions /decisions that the Village
Council will have to deal with is provided below.
A) Adoption of a prioritized construction schedule. While the consultants that you select
and/or your staff should be prepared to make recommendations in this regard, ultimately it
will fall to the elected officials to determine what the utility line conversion schedule will
be.
B) Financing. Does VOT even have the funds to pay cash for such work? Not likely. If the
project is to be financed, what type of financing shall be utilized? General obligation bonds,
revenue bonds, special assessments, special taxing districts?
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Page 38 of 51
Agenda Item #3.
C) Should the input of the citizens be received via a referendum or straw ballot for such an
undertaking? If the recommended initial utility conversion work proposed to be done by
the VOT is financed by using general obligation bonds the input of the citizens by way of
a referendum is a given for it is required by Florida law.
D) Mandating placement of utility lines underground for all future VOT public works
construction projects if utility lines are in or adjacent to the effected right -of- way?
E) Mandating property owners to place adjacent contiguous above ground utility lines and
laterals underground on structure rebuilds for renovation exceeding 50% of structure value
or upon sale of the property, whichever occurs first, or require an applicant to agree to
granting an easement, if needed by the VOT when the applicant's street in being converted
to UG, if they request a variance or special exception use from the VOT.
F) Easement issues. New construction will have to prepare for the underground utility grid.
Front yard easements will be required. Rear yard easements can be abandoned by the VOT
and property owners will regain full effective use of those lands, so long as there are no
underground utilities in such easements.
G) Are there other more prudent ways to approach VOT undergrounding besides converting
only TCCC?
Frequently Asked Questions (FAQ)
Based upon my experience in public sector undergrounding I have prepared a list of FAQ, with
answers that often come forth from the public, elected officials and staff. This list is attached to
this report as Exhibit B. Consider it to be a draft, subject to modifications, depending on what you
may do in the future. Change the FAQ as circumstances require.
Conclusion
There is little doubt that converting VOT' s overhead utility delivery system to an underground
delivery system can be done. Safety, reliability and aesthetics of utility service will improve. Make
no mistake, such an undertaking will be expensive. Only the Village Council and its citizens can
answer the question, is it feasible. I can only tell you it is doable.
One can anticipate that all parties involved in the work effort will quickly learn the nuances
involved in such utility conversion work in the special environment that constitutes the Village.
As time progresses, work performance should improve with each completed segment. With the
right team, problems should be kept to an absolute minimum as progress is made toward the
completion of the UG program. This is the essence of adaptive management - an active
18
Page 39 of 51
Agenda Item #3.
commitment to improve future projects and phases of work based on the lessons learned in each
past segment or phase.
The most important question can be summarized as follows: Is this conversion process something
the VOT should undertake and, if so, what is a reasonable construction schedule, and how much
conversion work can the VOT afford to undertake at a time? At its most basic level, this question
can be summed up as,
"How much, how fast?"
The role of the Village Council cannot be overemphasized in a work effort of this magnitude. Is it
the desire of the majority of the VOT' s citizens located within the project area that a public works
project like this be undertaken? Knowing the pulse of the community is critical before embarking
on such a journey. Figure out how to gauge the pulse of the community now and throughout any
approved project. Town Hall style meetings ,or a series of such meetings, with the property owners
affected always has worked well in the past. The good offices of the Mayor and Village Council
may be needed to meet with FPL officials to impart to those people the seriousness of the VOT in
its effort to convert utilities from above- ground to underground and, if necessary, to cajole those
and other utility company officials into putting forth their best organizational efforts to facilitate
the desires of the Tequesta. Cooperation from the affected utility companies is critical to the
success of any utility work contemplated. Mutual trust and respect must exist so that the
contemplated utility work is done as effectively and efficiently as possible. For example, FPL
should not fear revealing so called proprietary information to the Village by providing schematics
of their electrical system to your consulting engineers for design purposes only.
FPL can undertake all of the conversion work in Tequesta for their system and charge you for the
work they do. However, this has always proven to be a more expensive option and does not take
care of burying AT&T and Comcast facilities. If Tequesta does all of the work with its chosen
contractor you will control the totality of the job site.
Lastly, depending on the financing method chosen for payment of the costs to be incurred in such
a project, it is recommended that the Village Council adopt a reimbursement resolution at the
earliest possible point in time in the process to enable the VOT to legally recoup the front end "out
of pocket" costs of the project such as studies, reports, programming, and design expenses. The
adoption of a reimbursement resolution will allow VOT costs identified in the resolution to be
financed and reimbursed to the VOT if financing is chosen by the Village Council.
I stand ready to answer any and all questions in regard to this report and any aspect of undertaking
this significant public works endeavor.
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Page 40 of 51
Agenda Item #3.
EXHIBIT A
Thomas Bradford <tgbradford3@gmail.com>
Fwd: LRECD Tequesta Country Club Sewer Conversion Annual Assessments
1 message
Thomas Bradford <tgbradford3@gmail.com> Wed, Apr 6, 2022 at 3:55 PM
To: Molly Young <myoung@tequesta.org>, Kyle Stone <kstone@tequesta.org>, Laurie Brandon <Ibrandon@tequesta.org>,
Frank D'Ambra <FDambra@tequesta.org>, ajohnson@tequesta.org
Cc: Jeremy Allen <jallen@tequesta.org>
Village Council:
At your Workshop meeting on April 4, the subject of a potential conversion of overhead lines to
underground service, aka "Undergrounding," was briefly discussed in regard to the Tequesta Country Club
Community area. In the discussion, I mentioned that a good time to consider undergrounding in the area
would be when the sanitary sewer non -ad valorem assessments imposed by the Loxahatchee River
Environmental Control District are ended. I just checked this on the Property Appraiser website and
Country Club Point is also being assessed for sanitary sewer service. The more, the merrier. Actually, it
helps reduce costs per home the more you can get into the project scope.
In furtherance of this discussion, I contacted the Loxahatchee River Environmental Control District head of
Finance and asked "when will sanitary sewer assessments end in the Tequesta Country Club Community?"
The answer received is in the email below. The property tax bill for November 1, 2022, will be the last
property tax bill to include the assessments. This also means that for the property tax bill to be issued on
November 1, 2023, there will no longer be a sanitary sewer non -ad valorem assessment on the property
tax bills in the Tequesta Country Club Community area. Most are paying about $700 per year for this
assessment.
If one assumes that the property owners in the Tequesta Country Club Community area are desirous of
having undergrounding, now is the time to start the process. Please note that starting the process does
not mean you will end up doing any undergrounding_ You may conclude that it is too expensive and/or too
disruptive, although based on the undergrounding projects I have done in more urban environments, the
Tequesta Country Club Community area would be like a walk in the park relative disruption. As to costs,
there are steps you can take to potentially squeeze more discounts out of FPL, too complicated to detail
here, but one would be instead of them doing the undergrounding work they proposed a few years ago to
address lines with poor reliability in the the Tequesta Country Club Community one would tell them not to
do the work and instead, provide a credit to the undergrounding project equal to the value of the funds
FPL did not have to spend as result of doing the area wide undergrounding project. I have done this before
with success.
Why is now the time to get started with the due diligence? Here is a list of some of the things you must
do to satisfy an adequate due diligence process:
• Understanding the non -ad valorem assessment process, pros and cons;
• What are the other financing options?;
• The hybrid option;
• What are the benefits of undergrounding? - safety, reliability and aesthetics;
• What are equivalent benefit units (EBU)?;
• What does the construction process entail?;
• What is HDD and how does it help make for a less disruptive project?
• Will the Tequesta Country Club Community area be eligible for the FPL 25% municipal discount?;
• How many "pole miles" of overhead lines will be converted to underground service?;
• What will be the total number of properties and what kind of properties will be included within the
project area? Tequesta Country Club ClubHouse seems to be the only aberration;
• What are the options for designing the project and the construction format to be used?;
• What is the preferred option for design and construction?;
Page 41 of 51
Agenda em 43,
• am ave the courts in Palm Beach County approved in advance of work starting, including bond
issue certification if bonds are used?;
• The easement requirements and the easement acquisition process.
• What is the estimated cost for such a project?
• What is the average cost per home or property per year? Can the assessment, if used, be prepaid?;
• What is the least expensive way to do an undergrounding project; have the utilities do it or hire
your own contractor?
• Ask the Mayor of Jupiter Inlet Colony to come and tell you the story of their undergrounding project.
I worked with Dr. Commerford to secure the 25% municipal discount from the Florida Public Service
Commission in contested public hearings in Tallahassee.
• What is the pulse of the community on this subject?
After you have gone through all of this and more, you have to make a decision. If you decide to proceed
with undergrounding you must do the following and more:
• Choose the financing plan by hiring someone like PFM based in Orlando that knows every option and
can tell you with facts what is best and/or the least expensive option for you.
• Hire an engineering firm to design the project with community undergrounding experience. If the
project or portions thereof are over $4M, and it will be, you must follow the process in the
Consultants' Competitive Negotiation Act (CCNA). This takes time. The Kimley-Horn office in West
Palm Beach has tremendous experience in undergrounding and you currently use this firm, but the
CCNA will require you to go through this process anyway.
• You will have to do an RFQ or an RFP for this project to select the contractor. I will recommend you
use the Construction Manager at Risk contracting methodology based on past experience, but other
methodologies may work here because your project will not likely be as complicated, but the
selected engineer needs to have a say in this.
• Once the work begins, I think it will take at least 15 months to finish, but the work is only in front of
an individual home for about a week and if the roads are cut they are patched until repaving of the
entire street is started.
I hope this lets you know that now is the time to get started, not later, particularly if you want to segue
onto the property tax bill sufficiently prior to the issuance of the November 1, 2023, property tax bill. I,
or maybe some of my colleagues can help you get started down the due diligence path. As for me, I will
not charge you for any work during due diligence, but I cannot start this until after April 18.
Thomas G. Bradford
44 Chestnut Trail
Tequesta, FL 33469
Tele: 561.744.7640
Mobile: 561.346.6061
Email: tgbradford3@gmail.com
---------- Forwarded message ---------
From: Sue Bruce <Sue.Bruce@lrecd.org>
Date: Tue, Apr 5, 2022 at 3:36 PM
Subject: LRECD Tequesta Country Club Sewer Conversion Annual Assessments
To: tgbradford3@gmail.com <tgbradford3@gmail.com>
Cc: Kara Fraraccio <kara.fraraccio@lrecd.org>
Mr. Bradford,
Kara asked me to let you know that the 2022 real estate tax bill will be the last year that the above assessments will be on
the taxes. Should you have any questions, please let me know.
Page 42 of 51
Agenda Item #3. ExHIBIT B
FREQUENTLY ASKED QUESTIONS (FAQ), WITH ANSWERS, FOR CURRENT AND
FUTURE USE BY THE VILLAGE OF TEQUESTA
FAQ: Why is undergrounding being proposed now? For a number of reasons. (1)
There is a state mandate that requires FPL to "harden" all critical facilities replacing
current poles with larger and taller concrete poles if residents don't approve
undergrounding those same lines. Some wish to avoid more hardening to minimize
the deleterious impact to the aesthetics of the community. Others wish to improve
not only overall aesthetics, but also the safety and reliability of all electric and
communications facilities because (2) storm events, including hurricanes, are
reported to be more powerful, and (3) grant funding may be available to reduce the
cost.
FAQ: Will street lights be installed with micro cell sites to improve cell phone
coverage in the Town? NO, not at this time. However, this can be done at a later
date, if needed.
FAQ: Will residents recover the easement from their backyard? YES. Once the
utilities are moved to the front of your home, the rear easements can be abandoned
and returned to the property owner (unless there are water, gas or sewer utilities in
the easement). The Village can implement a process with the utilities to release the
rear easements and can do so for free to all that provide an easement for transformers,
as an incentive, where needed.
FAQ: Are the utility lines used for undergrounding waterproof? YES. The
utility lines are coated in a resin like material called Sealex and are completely water
proof. FPL indicates this water proof material coats the lines buried in the conduits
proposed for all undergrounding projects on land as well as for those subaqueous
crossing of major bodies of water like the Intracoastal Waterway.
FAQ: How long will the undergrounding project take? Up to 27 months (for
TCCC) once Village Council grants final approval to proceed. The project must be
designed and the proposed design approved by each utility (AT&T, Comcast and
FPL) being converted to underground service. Any required permits have to be
secured and then the work must be competitively bid. The work is awarded by the
Village and then constructed. In addition, we check with every utility and investigate
every major piece of Village infrastructure within the project area, including the
sanitary sewer service provider in Tequesta to determine if any renewal or
replacement should occur while the underground utility work is underway.
1
Page 43 of 51
Agenda Item #3.
FREQUENTLY ASKED QUESTIONS (FAQ), WITH ANSWERS, FOR CURRENT AND
FUTURE USE BY THE VILLAGE OF TEQUESTA
FAQ: When will the project begin if approved by the voters? Immediately. Once
approved, the first 9 months, to just over 1 year, may be needed for the initial design
phase. Construction would be scheduled to begin about 90 days thereafter.
FAQ: Will the undergrounding project be completed in phases throughout the
Village? NO. At this time only the Tequesta Country Club Community is being
converted to underground service.
FAQ: Who does the work? The work to convert facilities to underground service
can either be done entirely by the three affected utilities, AT&T, Comcast and FPL
or by a combination of Village contractors and the work force of the three affected
utilities. The Village overseeing the work via its engineering team and selected
contractor is the least expensive approach and will likely be utilized. For all
undergrounding jobs in South Florida, each time it was determined that the least
expensive option was a combination of municipal contractors and the work force of
the three affected utilities doing the proprietary work on their systems.
FAQ: How will I be disrupted? It depends on the extent of renewal and
replacement of the existing infrastructure serving your street, but any and all
disruptions will be clearly communicated to residents well in advance.
FAQ: Will directional drilling be used to minimize impacts from
undergrounding? YES. HDD, Horizontal Directional Drilling, and other
technologies will be used in lieu of open trenching to help minimize the impacts
from undergrounding the utilities, wherever possible.
FAQ: Will phone and cable lines for internet and TV be undergrounded with
the electric utilities? YES. In addition to the electrical lines, both the cable and
phone lines will be buried as well. All distribution poles upon which the overhead
lines are currently mounted will be removed.
FAQ: Will fiber optic upgrades be available to improve cable speed? NO. Fiber
optic conduits can be installed in the future for fiber optic upgrades. If a property
owner wants fiber optic cable at this time, they will need to contact their cable or
telephone provider directly.
FAQ: Will other utilities in my rear easement be moved to the front
easement? YES. Underground cable TV, phone and electric will all move to the
2
Page 44 of 51
Agenda Item #3.
FREQUENTLY ASKED QUESTIONS (FAQ), WITH ANSWERS, FOR CURRENT AND
FUTURE USE BY THE VILLAGE OF TEQUESTA
front yard also. If applicable, water, gas and sewer lines will remain in the rear
easement.
FAQ: What is the easement required for the transformers? Approximately 10
feet by 10 feet. By placing same on a property line, each abutting property can
provide a more manageable 5' X 5' easement. Approximately 1 in 4 to 5 homes may
require a transformer to be placed in a landscaped enclosed easement. Location of
transformers and easements is based upon electrical and communications demands,
but can also be placed in unpaved portions of the right-of-way, such as a swale in
many instances.
FAQ: Why must the transformers be placed in the front yard? Concrete pad
mounted transformers are essential for the proper and safe distribution of electricity
to homes and businesses. Current FPL standards require service from the front yard,
unless there is an alley behind the property (see below). All properties with backyard
service will be converted to the front yard, except those with an alley, during the
underground conversion process to comply with FPL's standards. Front yard utility
service provides faster service in the event of outages without the need for ongoing
vegetative maintenance to protect overhead lines.
FAQ: If I have an alley behind my home, can a transformer be placed there
instead of the front of my home. YES, as long as there is sufficient clearance for
FPL. Currently, citizens in other communities who have already undergrounded their
utilities and have alleys have placed their transformers there. Village engineers and
staff will work side by side with residents to ensure the project is completed in a
manner that best suits the needs of property owners. The number of required
easements for transformers will be much less than the 20% to 25% projected due to
the number of alleys, portions of existing easements, and portions of unused right-
of-way that will be available to place transformers and other equipment.
FAQ: Will the project pay for landscaping around transformer boxes that have
to be installed? YES. There are no additional costs to property owners to install
landscaping around the transformers unless the property owner wants rare and
expensive landscaping, in which case they can either have it done themselves or pay
the Town for the extra expense. The initial easement location is determined by FPL
based upon electrical system demand. The project team will work with each affected
homeowner to select the best location.
3
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Agenda Item #3.
FREQUENTLY ASKED QUESTIONS (FAQ, WITH ANSWERS, FOR CURRENT AND
FUTURE USE BY THE VILLAGE OF TEQUESTA
FAQ: Are there alternative options available other than using above ground
transformer boxes? FPL has not adopted an underground transformer option, but
is looking at subsurface equipment options for the future.
FAQ: Will homes with older wiring have to re -wire their homes to be
compatible with undergrounding? The Village is not aware of any need for
internal re -wiring of homes in Tequesta or any town in Florida where
undergrounding has occurred. However, on the rare occasion that a property has a
meter box on the side of the house that does not meet code, that will be an owner
expense. This will be rare because of the recent FPL switchover to meters with
remote read capability. All meter boxes were brought into compliance at that time.
FAQ: When it says my property has overhead lines, what does that mean? This
means that the utility lines that connect to your home's lateral service lines are on
poles. With undergrounding, all of these utility lines would move to the front of the
home and be placed underground.
FAQ: What do subject matter experts say about flooding in South
Florida? With strong storms and hurricanes flooding is always a possibility, but
strong winds and wind damage is guaranteed. If there is flooding, water will recede
quickly but damaged power poles and lines will take much longer to repair or
replace.
FAQ: Will FPL harden electrical facilities if undergrounding does not occur?
Yes. FPL will harden power poles on any remaining unhardened feeder.
FAQ: If the underground project is approved, will all power poles be removed
in Tequesta? NO. If the project is approved, all electrical, cable and phone
distribution lines and poles serving the designated project area properties will be
undergrounded and all related distribution poles will be removed.
FAQ: By undergrounding now, will the town qualify for a 25% discount on the
cost of underground electric utilities? YES. Tequesta will receive a 25 percent
discount on the cost to underground electric utilities based upon the proposed plan
of execution.
FAQ: Did the Town Council unanimously voted to seek voter approval on
underground in question? Answer this if applicable and when you know the
answer, or delete the FAQ.
4
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Agenda Item #3.
EXHIBIT C
Everglades Island Before and After
https://www.youtube.com/watch?v=dnxQ4tV4We4
Example of HDD 1
hqs://www.youtube.com/watch?v=03hP3ZZaWxU&feature=yo be
Example of HDD 2
https://www.youtube.com/watch?v=sMTQJjqF31g&feature=youtu.be
Page 47 of 51
No Text
N
No Text
Agenda Item #3.
upiter Inlet Colony landscaped transformer in unused right-of-way.
a
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.
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