HomeMy Public PortalAboutJune 14, 2016 Undergrounding Phase 2 updateSCOTT W. MORGAN, Mayor
ROBERT W. GANGER, Vice-blayor
JOAN I— ORTHWEIN
THOMAS M. STANLEY
DONNA S. WHITE
June 14, 2016
Dear Gulf Stream Residents,
TOWN OF GULF STREAM
PALM BEACH COUNTY, FLORIDA
Telephone
(561)276-5116
Far
(561)137-0188
Town Manager
WILLIAM H. THRASHER
Town Clerk
RITA L. TAYLOR
Since my last update on the Phase 2 undergrounding project, the Town has received a
number of inquiries from Place au Soleil residents questioning why the Commission voted to pay
for the $571,000 overage out of general funds instead of terminating Phase 2 altogether or
proceeding with Phase 2 but re -assessing the Phase 2 residents alone for the extra cost.
I cannot stress enough that the decision to proceed with the Phase 2 undergrounding was
made thoughtfully and with due consideration to the costs involved, especially the cost of not
proceeding. First, the Commission held three meetings where the undergrounding issues were
discussed—March 22, April 13 and May 13. All Gulf Stream residents are invited to attend these
meetings, and those that do are given an opportunity to comment generally about public matters
and also to speak on agenda items being considered by the Commission. The Phase 2
undergrounding was the most important issue at both of these meetings, and comments were
made by residents, by Commissioners and by staff. Specifically, the Commission considered its
options of 1) terminating the Phase 2 project; 2) deferring the Phase 2 project; or 3) proceeding
with the Phase 2 project.
For those of you who did not attend the meetings, the Commission found that terminating
the project was not a viable option. To terminate Phase 2 would require a refund of the impacted
residents' deposits ($549,372.00) and a reimbursement to FPL of their underground electricity
design and installation credit ($410,482.00), as well as losing the previously paid Ph. 2
engineering costs, which on a conservative estimate exceed $100,000.00.
The second option of deferring the project did not make sense either since there is no
benefit to the Town in postponing it. Costs will only increase with time, plus FPL will not
remove the wires and poles from the Phase 1 portion of the project until the entire project's utility
wires (both Ph. 1 & 2) are pulled underground.
In the Commission's opinion, the best option is to finish the entire project. It is less
expensive; it helps beautify the Town; it will help prevent prolonged power loss in the event of a
hurricane; it increases property values; and it is therefore in the best interests of all residents. As
100 SEA ROAD, GULF STREAM, FLORIDA 33483
I have said before, there will not be a tax increase or another special assessment to finish the
project.
Some people have suggested that the Town should re -assess the residents residing in the
Phase 2 area for this additional amount of money. That would not be fair, nor wise, nor
appropriate. It is not fair to the Phase 2 residents since they did not choose to be the second
phase—it just happens to be where they live. They did not cause FPL's delay in engineering the
Phase 2 work— that was a situation outside of Gulf Stream's control, necessitating a complaint
to the utility commission to remedy it. And, they did not cause the changed economic climate
that led to considerably higher electric labor costs— rather, that was a textbook example of
Supply & Demand, involving the electrical labor demands of All Aboard Florida, as well as a
number of other large municipal projects.
Re -assessment is not wise because legally, a new assessment requires another vote by the
Phase 2 residents, who would be unlikely to support increasing their own contribution to the
project. There is also the need for court approval of any re -assessment process with no guarantee
of approval. All of this, of course, will cost the Town more time and money.
Perhaps most importantly, it is appropriate that the Town finish the undergrounding
project and pay the extra amount because undergrounding of electrical, cable and telephone
wires benefits the Town as a whole. It will lead to a safer and more attractive method of
supplying utility services, which in tum augments property values and tax revenues. A Gulf
Stream address benefits all residents regardless of whether they reside in Place au Soleil, the
various condominium complexes, or the town core. Safety, delivery of service, and property
valuation are vital Town interests, and the Commission has a duty to advance and protect those
interests.
Please be assured that our Commissioners are thoughtful, concerned individuals, who
give their time and effort to the Town out of nothing more than a sincere affection for Gulf
Stream and a desire to see it remain as a truly unique and wonderful town. We do not favor one
group over another, or support one neighborhood over another. We represent all of Gulf Stream,
and we try to do what is best for all residents.
Very truly yours,
Scott W. Morgan