HomeMy Public PortalAboutMarch 21, 2016 - Undergrouding updateCOMMISSIONERS
SCOTT W. MORGAN, Mayor
ROBERT W. GANGER, Vice -Mayor
JOAN k ORTHWEIN
THOMAS M. STANLEY
DONNA S. WHITE
March 20, 2016
Dear Gulf Stream Residents,
TOWN OF GULF STREAM
PALM BEACH COUNTY, FLORIDA
I want to update you on the status of the undergrounding project.
Telephone
(561)276-5116
Fax
(561)737.0188
Town Manager
WILLIAM 11. THRASHER
Town Clerk
RITA L. TAYLOR
In 2010, Gulf Stream hired Willdan Financial Services to evaluate the cost of removing
overhead utility lines for underground installation. By April, 2011, Willdan Financial completed
its study and recommended a budget of $5,497,742.00, which amount has been fully funded for
the project. Willdan noted that construction costs were low due to the economic downturn, and
believed its numbers would hold for the three to four years estimated to finish the
undergrounding improvement.
The Town finished its advance work in mid -2011, which included public meetings, a
straw poll of its residents and required court validation. The project was then divided into two
phases: Phase 1 for the South end of town up to Gulfview Drive; and Phase 2 for Gulfview Dr.
up to the North end of town.
Phase 1 began in August 2011, but FPL, the main utility, created a significant delay in the
actual undergrounding work, as it did not provide the plans needed for contractors to bid the
construction work until January 30, 2013. Once started, however, the Phase 1 work proceeded
well and is nearly complete. Phase 1 will also finish slightly below budget.
In view of the difficulties with FPL on Phase 1, Gulf Stream's engineer filed a complaint
with the Florida Public Service Commission in March 2013, voicing the Town's concern about
increased construction costs should Phase 2 of its project be similarly drawn out. FPL responded
by promising Phase 2 plans and a binding cost estimate within 6 months after receiving Gulf
Stream's utility survey drawings. Instead, FPL took 16 months, not delivering the needed
drawings until late August 2015. By this time, most contractors were already over -booked with
work created during the economic recovery that Florida has experienced over the last several
years. This work includes All Aboard Florida and some very large projects in Collier County,
Jupiter and Hollywood. Gulf Stream's Phase 2 project is comparatively small, and we received
only two bids, both of which were high. Willco Electrical was the low bidder at $2,874,569.00,
which is $954,431.76 over the Phase 2 budget.
100 SEA ROAD, GULF STREAM, FLORIDA 33483
The Town engineer believes options exist to reduce the cost of Phase 2, but due to
Florida's "Cone of Silence" laws, he cannot negotiate with the bidders until the Commission
awards the project, albeit while withholding authority to proceed pending price adjustments.
Therefore, the Town has scheduled a Special Meeting for Tuesday, March 22, 2016, at 3:30 pm
to review the bids and decide whether to make an award.
Let me assure you that the Commission will thoroughly evaluate the Phase 2 costs and
timeline of events, and we will make a decision that reflects the best interests of the residents.
Also, and perhaps most importantly, please know that the Town has funds available to cover the
Phase 2 cost increase so there is no need for a change in taxes or for an assessment.
Thank you for your patience and understanding as we move to complete this
undergrounding project.
Very truly yours,
Scott W. Morgan