HomeMy Public PortalAbout2006 Letter from FPL.tif0
FPL
January 6, 2006 Via e-mail
Ms. Jaqueline Menendez
Village Manager
Village of Key Biscayne
88 West McIntyre Street
Key Biscayne, FL 33149
Re: Non -Binding Cost Estimate
Overhead to Underground Electrical Distribution Facilities Conversion
Dear Ms. Menendez:
In response to your letter dated July 28, 2005, the non -binding cost estimate to convert the
overhead electric distribution facilities to an underground system on Key Biscayne is
$11,200,000. This estimate is not an offer from FPL to perform the requested conversion and
should not be construed or used as such for detailed planning purposes. It is provided strictly to
assist your preliminary decision -making.
This non -binding estimate is an "order of magnitude" estimate, and is based on previous FPL
experience. However, due to the complex nature and variables associated with this type of work,
the estimate may not accurately represent the actual cost your community would be obligated to
pay FPL to convert its facilities. A detailed and "binding" estimate will be provided, should you
decide based on this "ballpark" estimate, and will commence should you elect to pay the non-
refundable engineering deposit as set forth in Florida Administrative Code 25-6.115. The deposit
is required due to the complexity and time required to estimate such a conversion, and would be
applied towards the estimated amount (known also as the CIAC amount) owed to FPL for the
conversion, should you decide to proceed with the work contained in the estimate, and contract
for that work within 180 days of the date the estimate is provided.
FPL estimates include only estimated charges to be paid by the applicant to FPL. Costs
associated with restoration of property affected by the conversion; acquisition and recording of
easements; "clearing" of trench routes; trenching, backfilling, and conduit installation of
individual service laterals; and rearrangement of customer service entrances have been excluded.
These elements of the conversion will be the responsibility of the applicant. Rearrangement of
customer electric service entrances may, in addition, impose additional customer expense if local
inspecting authorities require customer wiring to be brought to current codes. The applicant is
also responsible for arrangements that must be made to accommodate other utilities/pole licensees
affected by the conversion.
an FPL Group company
Ms. Jacqueline R. Menendez
January 6, 2006
Page 2
Regarding easements, an underground electric distribution system cannot just simply replace an
overhead system. Typically, overhead systems exist as part of a county or municipal right-of-
way, and when necessary, as part of a specific easement. In contrast, an underground distribution
system requires more space than is typically provided by road rights -of -way and easements for
overhead facilities. In underground systems, major components formerly attached to poles must
now occupy "at grade" appurtenances, e.g., ground level pad mounted transformers and switch
cabinets. Facilities of an underground distribution system will not be placed in road right-of-way,
with the exception of cables required for crossings. Additional easements will, in all likelihood,
be required. Describing, securing, and recording easements, with opinions of title, is the
responsibility of the applicant.
FPL strongly suggests that all easements required for the conversion are secured prior to
requesting the detailed cost estimate. Obtaining easements is typically the most difficult aspect of
the conversion process. The time required to describe and secure the easements may exceed the
180 day binding estimate timeframe.
If you decide to request a detailed "binding" estimate, an engineering deposit in the amount of
$102,000 would be required before commencing with the detailed design and estimating process.
The request for the estimate must be in writing, and must describe in detail the facilities to be
converted. Binding estimates are valid for 180 days, and would be subject to change in the event
of a work scope change. Should actual FPL costs exceed the binding estimate amount, the
applicant may be responsible for those additional costs up to a maximum of 10% of the binding
estimate amount. Payment of the CIAC, easements (with opinion of title and recorded),
agreements from other utilities/pole licensees, and execution of a Conversion Agreement would
be required before commencement of construction.
We would appreciate your review of the above details and we are available to meet with you to
answer any questions or concerns you may have. Please call me at (305) 552-3914 or Aletha
Player at (305) 552-4124 to schedule a follow-up meeting.
Sincerely,
Lou Perez
Major Customer Manager
Cc: Ms. Aletha Player
FPL External Affairs
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