2009-27065 ResoRESOLUTION NO. 2009-27065
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ENDORSING, AS REQUIRED PURSUANT TO
SECTION 18-2 OF THE MIAMI-DADE COUNTY CODE, THE CREATION BY
MIAMI-DADE COUNTY OF SPECIAL TAXING DISTRICTS FOR PALM ISLAND
AND HIBISCUS ISLAND, RESPECTIVELY, FOR THE UNDERGROUNDING OF
OVERHEAD UTILITIES, SUBJECT TO AND CONTINGENT UPON COMPLIANCE
WITH AND SATISFACTION OF THE REQUIREMENTS FOR THE CREATION OF
SPECIAL TAXING DISTRICTS, ASSET FORTH IN CHAPTER 18 OF THE MIAMI-
DADE COUNTY CODE.
WHEREAS, the Palm-Hibiscus-Star Islands Association has approached Miami-Dade
County about the establishment of Special Taxing Districts for Palm Island and Hibiscus Island,
respectively, to fund the undergrounding of overhead utilities, such districts to be established in
accordance with Chapter 18 of the Miami-Dade County Code; and
WHEREAS, the nature of the improvements generally includes removing FPL electric, AT&T
telephone, and Atlantic Broadband cable TV utility lines from overhead poles and placing them in
underground conduits; and
WHEREAS, the improvements require removing landscape encroachments and existing
poles, digging trenches, installing conduits, backfilling trenches, replacing curb and sod, patching
roadways, installing transformers mounted on concrete pads, protecting the transformers, and
installing acorn lights to replace pole mounted lights; and
WHEREAS, this work will improve the public rights-of-way on the portion of Palm Island west
of Fountain Street and the public rights-of-way on Hibiscus Island; and
WHEREAS, the City will pay a portion of the lighting costs, totaling $25,000 on Palm Island
and $70,000 on Hibiscus Island (since this work was an improvement detailed in the Star, Palm, and
Hibiscus Island Neighborhood Improvements Basis of Design Report and funded in the Star, Palm,
and Hibiscus Island Neighborhood Improvements Project Capital Plan); and
WHEREAS, the proposed Special Taxing Districts will pay the remaining costs; and
WHEREAS, the boundaries of the special taxing districts are, on Palm Island, west of
Fountain Street, and on the entirety of Hibiscus Island; and
WHEREAS, the estimated combined hard and soft costs of the improvements total
$1,819,375 for Palm Island, and $2,483,527 for Hibiscus Island; and
WHEREAS, as one of the conditions for the establishment of the proposed Special Taxing
Districts, Section 18-2 of the Miami-Dade County Code requires that where (as in this case) the
proposed area of the County special taxing district is within a municipality, then the approval of the
governing body of that municipality must be obtained.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby endorse, as
required pursuant to Section 18-2 of the Miami-Dade County Code, the creation by Miami-Dade
County of Special Taxing Districts for Palm Island and Hibiscus Island, respectively, for the
undergrounding of overhead utilities, subject to and contingent upon compliance with and
satisfaction of the requirements for the creation of special taxing districts, asset forth in Chapter 18
of the Miami-Dade County Code.
PASSED AND ADOPTED this 13th day of MAY , 2009.
ATTEST:
P
ROBERT ~ PARCHER, CITY CLERK
A I HERRE BO ER, MAYOR
T:\AGENDA\2009\May 13\Consent\Palm and Hibiscus Special Taxing Districts Reso.doc
APPROVED AS TO
FORM & LANGUAGE
tf~ FOR E~f5CUT10N
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, endorsing the creation
by Miami-Dade of a Special Taxing District for Palm Island and a Special Taxing District for Hibiscus Island
for the undergrounding of overhead utilities subject to and contingent upon compliance with and
satisfaction of the requirements for the creation of Special Taxing Districts, as set forth in Chapter 18 of
the Miami-Dade County Code.
intended outcome
~ To ensure a quality, well constructed Capital project. ~
Supporting Data (Surveys, Environmental Scan, etc.):
Infrastructure improvements are a key driver of residents overall quality of life. 81 % of residents rated
the appearance & maintenance of City's public buildings as excellent or good; 84% of residents rated
Capital Improvement Projects as excellent or good; Capital Improvement Projects are a key driver of
Cit services for tax dollars aid and contributes to residents overall Qualit of Life.
Issue:
Shall the Mayor and the City Commission approve the Resolution?
Item 5u
The City has been working with the Palm-Hibiscus-Star Islands Association (HOA) for the past several
years to implement the undergrounding of all the overhead utilities. Financing of the project has been an
issue, so the Palm and Hibiscus HOA in looking for financing alternatives has recently approached Miami-
DadeCounty about the establishment of Special Taxing Districts to underground overhead utilities on Palm
and Hibiscus Islands. These overhead utilities are electric (FPL), telephone (AT&T), and cable TV (Atlantic
Broadband).
Per Chapter 18 of the County Code, the County requires that any special taxing district within all or part of
a municipality have the approval of the governing body of that municipality. The HOA is requesting that the
City provide this endorsement through this resolution.
This process will be in lieu of the creation by the City of Special Assessment Districts.
Upon the successful creation of the Special Taxing Districts, the Cityand Countywould need to execute an
Interlocal Agreement outlining the City and County responsibilities such as: the County to pay the City for
upfront fees to be paid to the different utilities and to manage the construction of the project.
Adviso Board Recommendation:
Not applicable.
Financial Information:
Source of Amount Account
Funds: ~
2
3
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
~ Aurelio Carmenates, CIP Office ,Ext. 6343
Sign-Offs:
Department Dire Assista it anager City Manager
FHB TH JMG
T:IAGENDA~2009\IfAay 13\Consent\Palm and Hibiscus Special TaScing Districts Summary.doc / I ~~
m MIAMIBEACH
AGENDA ITEM G'`J
DATE s /.3''Q 9
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachN.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: May 13, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ENDORSING THE CREATION BY MIAMI-DADS COUNTY OF A
SPECIAL TAXING DISTRICT FOR PALM ISLAND AND A SPECIAL TAXING DISTRICT
FOR HIBISCUS ISLAND FOR THE UNDERGROUNDING OF OVERHEAD UTILITIES
SUBJECT TO AND CONTINGENT UPON COMPLIANCE WITH AND SATISFACTION
OF THE REQUIREMENTS FOR THE CREATION OF SPECIAL TAXING DISTRICTS, AS
SET FORTH IN CHAPTER 18 OF THE MIAMI-DADE COUNTY CODE.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
Not applicable.
ANALYSIS
The Palm-Hibiscus-Star Islands Association (HOA) has approached Miami-Dade County about the
creation of Special Taxing Districts to fund the undergrounding of overhead utilities on Palm and
Hibiscus Islands. These overhead utilities are electric (FPL), telephone (AT&T), and cable TV
(Atlantic Broadband).
Per Chapter 18 of the County Code, the County requires that any special taxing district within all or
part of a municipality have the approval of the governing body of that municipality. The HOA is
requesting that the City provide this endorsement through this resolution (see attached letter).
This process will be in lieu of the creation by the City of Special Assessment Districts.
Upon the successful creation of the Special Taxing Districts, the City and County would need to
execute an Interiocal Agreement for the County to pay the City for upfront fees of the utilities and to
manage the construction of the project.
Legal Process
In addition to the City resolution (which is the only action required of the City pursuant to the
County's requirements for the creation of Special Taxing Districts under Chapter 18 of the County
Code,) the County requires a petition requesting a special taxing district signed by the County Mayor
or by 50% of the property owners within the proposed district. The petition must be certified by the
County Clerk. The County Manager then conducts a cost and feasibility study and files a report with
the County Clerk for placement on a Board of County Commissioners (BCC) meeting agenda, as a
public hearing. At the public hearing, the BCC listens to any objections to the creation of the district.
Upon closing the public hearing, the BCC may then establish an ordinance establishing the district,
either with or without modification (granting the petition).
Commission Memorandum
Palm and Hibiscus Islands Special Taxing Districts
May 13, 2009
Page 2 of 4
Costs
It is anticipated that the City will still manage the construction of these improvements with County
financing. For this reason, an interlocal agreement will be required.
The total cost includes the estimates from the utility companies along with the fees for the City's
JOC contractor and an FPL-certified private contractor along with project management, financial
consultant, and the HOA reimbursable expenses and the second binding estimate from FPL.
Further, the cost associated with the vote by the property owners is not included.
In December 2008, the HOA advised the City that the binding estimates from the utilities were much
higher than anticipated. Responding to a request from the HOA, the City negotiated with FPL to
move the trenching and conduit work from FPL to an FPL-certified private contractor and to test and
inspect the work privately. FPL must still install the wiring and transformers. This reduced the FPL
cost by $1,506,147, from $2,583,997 to $1,077,850 as detailed in the second binding estimate
provided by FPL on April 20, 2009. The City had to negotiate costs for the FPL-certified contractor
and with a firm providing testing and inspection services. It also had to add a contingency to cover
unforeseen conditions. These costs total $891,878. The total estimated savings is $614,269, a 24%
savings.
In order to take advantage of this lower cost, the City would need to waive the competitive bid
process and award the project to the FPL-certified private contractor, Hypower Inc. It should be
noted that two other firms certified by FPL were contacted in order to obtain prices for the work and
were not responsive. The City is attempting to negotiate a similar arrangement with AT&T and
Atlantic Broadband.
The detailed cost breakdown is as follows:
Palm Island Hibiscus Island Both Islands
City JOC Contractor $198,135 $158,607 $356,741
City Management Fee $25,285 $31,275 $56,560
City JOC Fees $2,972 $2,379 $5,351
City Contingency $41,253 $44,771 $86,024
FPL-certified private Contractor $281,115 $421,672 $702,787
Inspection and Testing Services $47,525 $71,287 $118,812
Contingency Fee for Contractor's Proposal 28,112 42,167 70,279
Financial Consultant $9,863 $9,863 $19,726
Pedestrian Lighting $214,400 $289,100 $503,500
City Survey to FPL 12,500 12,500 25,000
FPL LaborNehicle Estimate $136,973 $243,507 $380,480
FPL Materials Estimates $91,965 $163,494 $255,459
FPL Engineering, Supervision, & Support $147,340 $261,938 $409,278
FPL Net Book Value $11,748 $20,885 $32,633
AT~T Cost Estimate $372,570 $283,327 $655,897
ABB Cost Estimate $177,619 $396,755 $574,375
HOA Administration Fees $20,000 $30,000 $49,000
Estimated Total Cost $1,819,375 $2,483,527 $4,302,902
The following descriptions more fully describe the above costs.
City
The City received a proposal from a JOC contractor for protective bollards, new raised curbs and fill
for the transformer pads on Palm Island, removing landscaping encroachments and restoring sod
where needed, replacing damaged curb by utility trenching, using roadway cold patch over FPL
trenched areas, and striping within the project limits.
Commission Memorandum
Palm and Hibiscus Islands Special Taxing Districts
May 13, 2009
Page 3 of 4
The City has management fees to cover staff costs for coordination and construction management
related to the JOC contractor, private contractor, and CEI Firm.
The JOC fees are for the Gordian Group, which manages the City JOC program.
A contingency is added to cover unforeseen conditions during construction.
The City received a proposal from a private contractor certified by FPL for trenching, conduit
installation, and backfilling per the scope of work and drawings provided by FPL.
The City received a third proposal from a firm qualified to conduct Construction Engineering and
Inspection Services to supervise the work submitted by the private contractor.
The City hired Burton & Associates to develop the methodology for determining the assessments
and to calculate the assessments.
The City also has an estimate for the streetlights that need to be installed on the Islands once the
existing poles are removed. The City is providing a $95,000 credit from the GO Bond money, that
was slated for lighting on these islands, to offset these costs.
Finally, FPL requires a survey from the City. The cost of this work is estimated at $25,000.
FPL
FPL submitted the binding cost estimate, known as the Contribution in Aid of Construction (CIAC)
and drawings for the underground installation of the existing aerial electrical system. The binding
estimate amount, without any applicable Engineering Fees and Government Adjustment Factors
(GAF) totaled $2,583,997 with the cost of Palm Island at $930,831 and Hibiscus Island at
$1,653,166. This estimate was for the total customer contribution as specified in Tariff 12.2.3. The
scope of work submitted by FPL included the installation of a complete underground electrical
backbone system utilizing rapid trench construction, providing backfill compaction with no temporary
or permanent patching of the roadway and Maintenance of Traffic in accordance with City's
Standard Design requirements. This binding cost estimate was valid for 180 days, expiring on April
25, 2009. However, as requested by the HOA, FPL agreed to eliminate the trenching, installation of
conduits and junction boxes and backfilling from their IaborNehicle item in the amount of
$1,506,147. FPL provided on April 20, 2009 a second binding estimate that reduced the total
amount from $2,583,997 to $1,077,850. If all residences convert to the underground system, the
binding estimate would be reduced by the 25%CIAC waiver to $808,388.
ATT
ATT submitted a scope of work that includes the installation of a complete underground
communication backbone system utilizing trench construction, providing backfill compaction and
restoration of the roadway.
The HOA is now requesting the removal of the trenching, conduits, junction boxes, and backfilling in
order to obtain quotes from private contractors to reduce the cost of the project.
ABB
ABB submitted a scope of work that includes the installation of a complete underground cable
backbone system utilizing trench construction, backfill compaction, and restoration of the roadway.
The HOA is now requesting the removal of trenching, conduits, junction boxes, and backfilling in
order to obtain quotes from private contractors to reduce the cost of the project.
Commission Memorandum
Palm and Hibiscus Islands Special Taxing Districts
May 13, 2009
Page 4 of 4
HOA
The HOA indicated that it had expenses related to its effort to underground these utilities.
CONCLUSION
The Administration recommends approval of the resolution endorsing the creation by Miami-Dade
County of Special Taxing Districts on Palm and Hibiscus Islands forthe undergrounding of overhead
utilities.
Attachment
J MG\TH\F H B\J CC\RW S\AC
T:WGENDA\2009\May 13\Consent\Palm and Hibiscus Special Taxing Districts Memo.doc
May 6, 2009
Jorge Gonzalez
City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
RE: PHS Islands Undergrounding Project
Mr. Manager;
As you know, we have been working on the undergrounding of utilities on Palm and
Hibiscus Islands since 1994. You and your staff have been very helpful to us in working
toward that end. In an effort to obtain funding for the project we have visited with the
Special Taxing Districts Division of the Public Works Department of Miami-Dade
County,
Today we met with several members of your staff and Donald Tock, Chief of the Special
Taxing Districts Division to discuss several issues in advance of next week's meeting of
the City Commission. We have elected to request the creation of a Special Taxing
District as defined under the Miami-Dade County Code for the creation of such Districts.
We would respectfully request that the City Commission adopt a resolution endorsing
the creation of a Special Taxing District by Miami-Dade County as required by County
Code on behalf of the residents of Palm and Hibiscus Islands. Thank you in advance
for your assistance.
We appreciate the continued full support of your Office, City Staff and the City
Commission on this project. Please do not hesitate to contact me, our Undergrounding
Committee or our Executive Director Tim Rose, should anything be required of us in the
meantime. You can reach Tim at 305-299-2617 or by a-mail at
tim.rose(d,,,,phsislands.org.
President
cc: PHS Bo rd of Directors
PHS Un ergrounding Committee
152 Palm Avenue • Miami Beach, FL 33139