HomeMy Public PortalAboutJanuary 19, 2011Undergrounding Utilities: Gulf Stream
January 19, 2011
Brief History of Undergrounding:
For many years, residents of Gulf Stream have asked the Town to explore burial of overhead
utility lines. As early as 1999, the Town obtained anon -binding estimate of $8 MM to bury
cables and remove poles exclusively on AIA right -of way. This project was intended to protect
the Austrialian Pine tree canopy, and to forestall DOT plans to widen AIA for bicycle paths.
While the AIA project was rejected as too costly, a number of Gulf Stream residents initiated
expensive private projects to bury overhead utilities in their own neighborhoods.
Reexamination of Undergrounding has continued in response to 2005 hurricane outages, new
technology, and changes in the regulatory climate. To defray construction costs, the Town has
applied for grants from the South Florida Water Management District, FEMA, Palm Beach
County, and even the Federal "Stimulus Package". hi 2007, Gulf Stream joined with 27 Florida
municipalities to petition the Florida Public Service Commission for a "Government Adjustment
Factor" discount (similar to a grant) for town -wide undergrounding projects. The discount was
approved, potentially saving Gulf Stream close to $1 MM on the proposed project.
The current Undergrounding Project was reintroduced to the Commission in mid 2010, based
upon a town -wide net estimate of $5 MM verses the $8 MM AIA estimate in 1999. The
Commission allocated necessary funds to bring this item to a binding "straw ballot" vote of all
affected Gulf Stream property owners.
A "YES" maiority vote will require the Town to obtain outside financing for the Project:
After the construction costs have been determined and a bid process by a "Request For Proposal"
is completed, the Commission will determine the financing tool to be used. At this time it
appears it will be a simple loan for 10-20 years using the government tax free option.
To estimate your yearly assessment amount on a 10 year financing plan: divide your assessment
amount appearing on the ballot by 1000, and then multiply that number by $120.
For example: A Total Assessment amount of $10,000: $10,000 divided by $1,000 = 10.
10 multiplied by $120 = $1,200. The yearly assessment is approximately $1,200/year.
To estimate your yearly assessment amount on a 20 year financing plan: divide your assessment
amount appearing on the ballot by 1000 and then multiply that number by $75.
For example: A Total Assessment amount of $10,000: $10,000 divided by $1,000 = 10.
10 multiplied by $75 = $750. The yearly assessment is approximately $750.
A property owner will also have the option of paying the assessment in one lump sum payment
and eliminate the interest.
The next public information meeting:
The next public information meeting will held at the Gulf Stream School's Chapel on February
3, 2011 at 5:30. Please plan to attend.
Sincerely,
William F. Koch, Jr
Mayor