Craven Thompson & Assoc. - Laserfiche WebLink

Home Browse Search

CITY OF SUNNY ISLES BEACH – CONSULTING ENGINEERING SERVICES FOR GOLDEN SHORES UTILITY UNDERGROUNDING AND ROADWAY IMPROVEMENTS (CCNA) - RFQ NO. 18-08-01 SECTION D - PROJECT APPROACH AND UNDERSTANDING Each property will require an individual service to be run from the new transformers located within the right-of-way to the existing point of service. Depending upon the location of the existing point of service, running the new service could involve additional restoration costs on private properties. The City’s level of responsibility for level of restoration needs to be considered in defining the project scope. FPL TARIFF PROGRAM The FPL Tariff Program outlines how undergrounding projects are paid for. The two key components are the Contribution-In-Aid-of-Construction (CIAC) and the Government Adjustment Factor (GAF). The CIAC is the amount the applicant (in this case the CRA) pays FPL for undergrounding, the GAF is the credit given when the applicant is a recognized Government Agency. The CIAC calculation is somewhat complicated. Additionally, the numbers used in the calculation are populated entirely by FPL. The calculation first looks at the difference between the cost of a new underground system compared to a new overhead system (reflects upgrade provided to FPL from overhead to underground). The value of the existing system and the cost to remove is added (reimbursement to FPL for the existing improvements). The salvage value from removal of the existing system is deducted (salvage puts money back in FPL’s pocket) and the operating costs over a 30-year period calculated at net present value is added. From these numbers, a subtotal is derived. Depending upon the project pole-miles, a percentage of the subtotal gets deducted to account for the projected savings in storm restoration costs provided by undergrounding over a 30-year period (because this is a Tier 3 project, the deduction is only 5%). Because of the way these values are derived, it is possible that the CIAC is higher than the estimated cost of the underground improvements. The GAF waiver is more straight-forward. The waiver is a total of two parts: 25% of the calculated CIAC, and 75% of the value calculated for storm restoration costs. The GAF waiver will be more than 25% but likely less than 30%. This discount applies only to FPL services. If the applicant installs the facilities, then GAF will be calculated from the adjusted CIAC. FPL provides the GAF to encourage undergrounding programs to be done under public entities. FPL can’t drop the overheads until all services have been re-fed from undergrounds. Service reconnections typically involve private entities. With the agreement , FPL puts the obligation for conversion on City/CRA. If all services not converted in timely manner, creating a situation of where FPL is operating a duplicity of services, FPL fines the City. Note that the tariff applies only to FPL. Other utilities will require agreements, design fees, and payment for reconnecting services as well. D | Page 5