98-22891 RESO
RESOLUTION NO. 98-22891
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA; AUTHORIZING THE MAYOR TO
EXECUTE AN UNDERGROUND ELECTRIC TRANSMISSION FACILITIES
AGREEMENT WITH FLORIDA POWER & LIGHT COMPANY FOR THE
CONSTRUCTION OF AN UNDERGROUND ELECTRIC TRANSMISSION
LINE BETWEEN THE 40TH STREET SUBSTATION AND THE VENETIAN
SUBSTATION; AUTHORIZING THE ISSUANCE OF NOT EXCEEDING
$4,000,000 NON-AD VALOREM REVENUE NOTE, SERIES 1998 TO
FINANCE A CONTRIBUTION IN AID OF CONSTRUCTION OF SAID
UNDERGROUND ELECTRIC TRANSMISSION LINE; COVENANTING TO
ANNUALLY BUDGET AND APPROPRIATE FUNDS FROM LEGALLY
AVAILABLE NON-AD VALOREM REVENUES TO REPAY SUCH NOTE;
PRESCRIBING THE FORM, TERMS AND DETAILS OF SUCH NOTE;
AWARDING THE NOTE TO FLORIDA POWER & LIGHT COMPANY, BY
NEGOTIATED SALE; MAKING CERTAIN COVENANTS AND
AGREEMENTS IN CONNECTION THEREWITH; GRANTING AN
EASEMENT FOR THE CONSTRUCTION OF SAID UNDERGROUND
ELECTRIC TRANSMISSION LINE; PROVIDING FOR APPRAISAL OF
THE VALUE OF SAID EASEMENT AND FOR ANY MONEYS RECEIVED
FROM THE GRANT OF SUCH EASEMENT TO BE USED TO OFFSET THE
COST OF THE SAID CONTRIBUTION-IN-AID-OF-CONSTRUCTION; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, Florida Power & Light Company ("FPL"), has proposed to construct an
overhead electric transmission line between 40th Street and the Venetian Substations; and
WHEREAS, the City of Miami Beach, Florida (the "City") finds that it is necessary,
desirable and in the best interests of the citizens and residents of the City that the aforesaid electric
transmission line be constructed underground; and
WHEREAS, FPL will incur costs in the underground installation, which costs would not be
incurred but for the City's request that the electric transmission line be constructed underground; and
WHEREAS, the City has agreed to pay a contribution-in-aid-of-construction (the
"Contribution-In-Aid-Of-Construction") for the additional costs incurred by FPL to construct and
install the electric transmission line underground; and
WHEREAS, the City and FPL have negotiated an Underground Electric Transmission
Facilities Agreement (the "Agreement"), a copy of which is attached hereto as Exhibit "A," to
provide for the construction of the electric transmission line; and
WHEREAS, FPL has offered to lend the City a portion of the funds to pay the Contribution-
In-Aid-Of-Construction; and
WHEREAS, the City and FPL have negotiated the terms of a Non-Ad Valorem Revenue
Note, with respect to such loan, the form of which Note is attached hereto as Exhibit "B"; and
WHEREAS, FPL has represented to the City that (1) FPL has received all information that
it has requested concerning the financial condition of the City, and it deems such information
sufficient for it to make an informed investment decision, and (2) FPL is purchasing the Note for its
own account and has no present intention to resell the Note before the date of maturity of the Note.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
Section 1. Incorporation of Recitals. The matters set out in the foregoing recitals are
true and correct, and they are hereby incorporated as a portion of this Resolution.
Section 2. Authorization of Underground Electric Transmission Facilities
Agreement. The Mayor is hereby authorized and directed to execute the Underground Electric
Transmission Facilities Agreement substantially in the form attached hereto as Exhibit "A," with
such changes, insertions, additions and deletions as may be approved by the Mayor, after
consultation with the Manager, Finance Director and City Attorney, the execution thereof being
conclusive evidence of such approval, and deliver said Agreement to FPL.
Section 3.
Definitions. As used herein, unless the context otherwise requires:
"Act" means, as applicable, the City Charter of Miami Beach, Chapter 166, Florida Statutes,
and other applicable provisions of law.
"Annual Budget" means the annual budget prepared by the City for each Fiscal Year in
accordance with Section 15. below and in accordance with the laws of the State of Florida.
"Business Day" means any day which is not a Saturday, Sunday or legal holiday in Miami-
Dade County, Florida.
"Chief Financial Officer" means the chief financial officer of the City as defined in Section
218.403, Florida Statues.
"City" means the City of Miami Beach, a public body corporate and politic ofthe State of
Florida.
"Clerk" means the Clerk or any Deputy Clerk of the City.
"Code" means the Internal Revenue Code of 1986, as amended, including the applicable
regulations of the Department of the Treasury (including applicable final regulations, temporary
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regulations and proposed regulations), the applicable rulings of the Internal Revenue Service
(including published Revenue Rulings and private letter rulings) and applicable court decision.
"Cost ofthe Project" means with respect to the Project, all items of cost authorized by the
Act, including the costs of issuance of the Note.
"Dated Date" means the date of issuance of the Note.
"Fiscal Year" means the period commencing on October 1 of each year and ending on the
succeeding September 30, or such other consecutive 12-month period as may be hereafter designated
as the fiscal year of the City pursuant to general law.
"Governing Body" means the Mayor and City Commission of the City, or its successor in
function.
"Initial Purchaser" means Florida Power & Light Company.
"Mayor" means the Mayor of the City and such other person as may be duly authorized to
act on his or her behalf.
"Non-Ad Valorem Revenues" means all revenues of the City derived from any source other
than ad valorem taxation on real or personal property, which are legally available to make the
payments required under this Resolution.
"Noteholder" or "Holder" means the registered owner (or its authorized representative) of
the Note.
"Note" means the Non-Ad Valorem Revenue Note, Series 1998, authorized to be issued
hereunder in an aggregate principal amount not to exceed $4,000,000.
"Project" means the additional costs attributable to the underground construction of the
electric transmission line described in the recitals hereto.
"Resolution" means this resolution, as the same may from time to time be amended,
modified or supplemented.
"State" means the State of Florida.
Section 4. Authority for Resolution. This Resolution is adopted pursuant to the
provisions of the Act. The City has ascertained and hereby determined that adoption of this
Resolution is necessary to carry out the powers, purposes and duties expressly provided in the Act,
that each and every matter and thing as to which provision is made herein is necessary in order to
carry out and effectuate the purposes of the City in accordance with the Act and to carry out and
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effectuate the plan and purpose of the Act, and that the powers of the City herein exercised are in
each case exercised in accordance with the provisions of the Act and in furtherance of the purposes
of the City.
Section 5. Resolution to Constitute Contract. In consideration of the purchase and
acceptance of the Note by those who shall hold the same from time to time, the provisions of this
Resolution shall be a part of the contract of the City with the Holder, and shall be deemed to be and
shall constitute a contract between the City and the Holder from time to time of the Note. The
provisions, covenants and agreements herein set forth to be performed by or on behalf of the City
shall be for the equal benefit, protection and security of the Holder of the Note in accordance with
the terms hereof.
Section 6. Authority for Issuance of Note. Subject and pursuant to the provisions
hereof, the Note to be known as "City of Miami Beach, Florida Non-Ad Valorem Revenue Note,
Series 1998" is hereby authorized to be issued in an aggregate principal amount not to exceed Four
Million Dollars ($4,000,000) for the purpose of financing the Project.
Section 7. Description of Obligations. The Note shall be issued in one (1) typewritten
certificate and shall be dated the Dated Date. The Note shall bear interest a rate to be determined
at the date of issuance of the Note by the Chief Financial Officer of the City, but in no event to
exceed four and seventy-five one hundredths percent (4.75%) per annum. Interest on the Note shall
be calculated on the basis ofa 360 day year consisting of twelve thirty day months. Accrued interest
and principal on the Note will be payable on the first days of June and December of each year,
commencing on December 1, 1998. The schedule of payments of the principal of the Note shall be
determined by the Chief Financial Officer prior to the issuance of the Note. Additional details of
the Note shall be as provided in the form of Note attached hereto as Exhibit "B."
The Note hereunder shall be in registered form, contain substantially the same terms and
conditions as set forth in Exhibit "B" hereto, shall be payable in lawful money of the United States
of America, and the principal thereof, interest thereon and any other payments thereunder shall be
payable by check, wire, draft or bank transfer to the Holder at such address as may be provided in
writing by such Holder to the Clerk of the City. So long as the Note shall remain outstanding, the
City shall maintain and keep books for the registration and transfer of the Note. The Clerk is hereby
appointed as registrar for the Note and the Chief Financial Officer is hereby appointed as paying
agent for the Note.
The Note issued under this Resolution shall be and have all the qualities and incidents of
negotiable instruments under the law merchant and the Uniform Commercial Code of the State of
Florida, subject to the provisions for registration oftransfer contained in this Resolution and in the
Note.
The Note may be assigned as to principal and interest by the Initial Purchaser, or any
assignee or successor-in-interest of the Initial Purchaser. Such assignment shall only be effective,
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and the City obligated to pay such assignee, upon written notice of assignment being provided to the
Clerk of the City at 1700 Convention Center Drive, Miami Beach, Florida 33139; provided,
however, the written notice of assignment must be received by the Clerk no later than the close of
business on the fifth Business Day prior to the payment date in order to carry the right to receive the
interest and principal payment due on such payment date. The City may charge the registered
owners of such Note for the registration of every such assignment of such Note sufficient to
reimburse it for any tax, fee or any other governmental charge required to be paid, except for any
such governmental charge imposed by the City, with respect to the registration of such assignment,
and may require that such amounts be paid before any such assignment of the Note shall be effective.
Section 8. Execution of Note. The Note shall be executed in the name of the City by
the Mayor and the seal of the City shall be imprinted, reproduced or lithographed on the Note and
attested to and countersigned by the Clerk. The signatures of either the Mayor or the Clerk (but not
both) on the Note may be by facsimile. If any officer whose signature appears on the Note ceases
to hold office before the delivery of the Note, such signature shall nevertheless be valid and
sufficient for all purposes. In addition, the Note may bear the signature of, or may be signed by,
such persons as at the actual time of execution of such Note shall be the proper officers to sign such
Note although the date of such Note or the date of delivery thereof such persons may not have been
such officers.
Section 9. Note Mutilated, Destroyed, Stolen or Lost. If the Note is mutilated,
destroyed, stolen or lost, the City or its agent may, in its discretion (i) deliver a duplicate replacement
Note, or (ii) pay a Note that has matured or is about to mature. A mutilated note shall be surrendered
to and cancelled by the Clerk or its duly authorized agent. The Holder must furnish the City or its
agent proof of ownership of any destroyed, stolen or lost Note; post satisfactory indemnity; comply
with any reasonable conditions the City or its agent may prescribe; and pay the City's or its agent's
reasonable expenses.
Any such duplicate Note shall constitute an original contractual obligation on the part of the
City whether or not the destroyed, stolen, or lost Note be at any time found by anyone, and such
duplicate Note shall be entitled to equal and proportionate benefits and rights as to lien on, and
source of and security for payment from, the funds pledged to the payment ofthe Note so mutilated,
destroyed, stolen or lost.
Section 10. Award of Note by Negotiated Sale. Because of the nature of the transaction
described herein, the maturity of the Note and the prevailing market conditions, the negotiated sale
of the Note to the Initial Purchaser is hereby approved and authorized. Upon compliance with
Section 218.385, Florida Statutes, by the Initial Purchaser, the Chief Financial Officer is hereby
authorized to award and sell the Note to the Initial Purchaser.
Section 11. Provisions for Redemption. The Note may be prepaid in whole or in part
by the City at any time prior to maturity without premium or penalty, upon the City providing the
Holder at least ten (10) days' advance notice of its intent to prepay. In the event of any partial
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prepayment of the Note, each partial prepayment shall be (a) first applied to accrued interest on the
Note, and then to the principal thereof, (b) in an amount equal to $50,000 or an integral multiple of
$50,000 in excess thereof, and (c) be applied to the installment or installments thereof in the inverse
order of their maturity. Any prepayment shall be evidenced by the customary documentation of the
Holder, and a copy of such documentation shall be provided to the City after each prepayment.
Section 12. Authorization of Project. The City hereby authorizes the acquisition and
construction of the Project. Proceeds received from the sale of the Note are hereby authorized to be
used to pay the costs of the Project.
Section 13. Note Not to Be General Indebtedness of the City. The Note shall not be
or constitute a general obligation or indebtedness of the City within the meaning of the Constitution
of Florida, but shall be payable from and secured solely in the manner described in Section 14.
hereof, in the manner and to the extent herein provided. No Holder of the Note shall ever have the
right to compel the exercise of the ad valorem taxing power of the City or taxation in any form on
any real or personal property to pay such Note or the interest thereon, nor shall any Holder be
entitled to payment of such principal and interest from any other funds of the City. The Holder shall
have no lien upon the Project.
Section 14. Covenant to Budget and Appropriate. The City hereby covenants and
agrees to budget and appropriate in its Annual Budget, by amendment, if necessary, from Non-Ad
Valorem Revenues lawfully available in each Fiscal year, amounts sufficient to pay the principal of
and interest on the Note coming due in such Fiscal year, until paid in full. Such covenant and
agreement on the part of the City to budget and appropriate such amounts of Non-Ad Valorem
Revenues shall be cumulative to the extent not paid, and shall continue until such Non-Ad Valorem
Revenues or other legally available funds in amounts sufficient to make all such required payment
shall have been budgeted, appropriated and actually paid. Notwithstanding the foregoing covenant
of the City, the City does not covenant to maintain any services or program, now provided or
maintained by the City, which generate Non-Ad Valorem Revenues.
Such covenant to budget and appropriate does not create any lien upon or pledge of such
Non-Ad Valorem Revenues, nor does it preclude the City from pledging in the future its Non-Ad
Valorem Revenues, nor does it require the City to levy and collect any particular Non-Ad Valorem
Revenue, nor does it give the Noteholder a prior claim on the Non-Ad Valorem Revenues as opposed
to claims of general creditors of the City. Such covenant to budget and appropriate Non-Ad Valorem
Revenues is subject in all respects to the payment of obligations secured by a pledge of such Non-Ad
Valorem Revenues heretofore or hereinafter entered into (including the payment of debt service on
bonds and other debt instruments). However, the covenant to budget and appropriate in its Annual
Budget for the purposes and in the manner stated herein shall have the effect of making available in
the manner described herein Non-Ad Valorem Revenues and placing on the City a positive duty to
budget and appropriate, by amendment, if necessary, amounts sufficient to meet its obligations
hereunder; subject, however, in all respect to the restriction of Section 166.241(3), Florida Statutes,
which provides, in part, that the governing body of each municipality make appropriations for each
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fiscal year which, in anyone year, shall not exceed the amount to be received from taxation or other
revenue sources; and subject further, to the payment of services and programs which are for essential
public purposes affecting the health, welfare and safety of the inhabitants of the City or which are
legally mandated by applicable law.
Section 15. Operating Budget; Financial Statements. Before the first day of each Fiscal
Year the Governing Body shall prepare, approve and adopt in the manner prescribed by law, a
detailed Annual Budget. Subject to Section 14. hereof, such Annual Budget shall provide for
revenues sufficient to comply with the City's obligations hereunder, including any unsatisfied
obligations from prior Fiscal Years. The City shall annually provide to the Initial Purchaser a copy
of the Annual Budget and the City's audited financial statements prepared in accordance with law,
each within thirty (30) days of its completion.
Section 16. Issuance of Additional Obligations. Nothing contained herein shall be
construed to prevent the City from issuing additional obligations payable from or secured by a
specific source of Non-Ad Valorem Revenues, or by a covenant to budget and appropriate Non-Ad
Valorem Revenues.
Section 17. Modification or Amendment. This Resolution may be modified and
amended by the City from time to time prior to the issuance of the Note hereunder. Thereafter, no
modification or amendment of this Resolution, or of any resolution amendatory hereof or
supplemental hereto, may be made without the consent in writing of the Holder.
Section 18. Tax Covenants. It is the intention of the City that the interest on the Note
issued hereunder be and remain excluded from gross income for federal income tax purposes and
to this end the City hereby represents to and covenants with each Holder of the Note issued
hereunder that it will comply with the requirements applicable to it contained in the Code to the
extent necessary to preserve the exclusion of interest on the Note issued hereunder from gross
income for federal income tax purposes. Specifically without intending to limit in any way the
generality of the foregoing, the City covenants and agrees:
a) to refrain from using proceeds from the Note in a manner that might cause the Note
to be classified as a private activity bond under Section 141(a) of the Code; and
b) to refrain from taking any action that would cause the Note to become an arbitrage
bond under Section 148 of the Code.
The City understands that the foregoing covenants impose continuing obligations of the City
that will exist as long as the requirements of the Code are applicable to the Note.
Section 19. Events of Default. Anyone or more of the following events shall be an
"Event of Default":
~~:~~~:~~:~~~~~~L2.RES 7
(A) The City shall fail to pay the principal of or interest on the Note when due;
(B) The City shall (i) admit in writing its inability to pay its debts generally as they
become due, (ii) file (or have filed against it and not dismissed within ninety (90) days) a petition
in bankruptcy or take advantage of any insolvency act, (iii) make an assignment of the general
benefit of creditors, (iv) consent to the appointment of a receiver for itself of for the whole or any
substantial part of its property, or (v) be adjudicated a bankrupt;
(C) The City shall default in the due and punctual performance of any of its covenants,
conditions, agreements and provision contained herein or in the Note, and such default shall continue
for thirty (30) days after written notice specifying such default and requiring the same to be remedied
shall have been given to the City by the Holder of the Note provided that such default shall not be
an Event of Default if the City within such thirty (30) day period commences and carries out with
due diligence to completion (although not necessarily within such thirty (30) day period) such action
as is necessary to cure the same.
Section 20. Remedies on Default. If an Event of Default shall have occurred and be
continuing, the Holder may proceed to protect and its enforce its rights hereunder by a suit, action
or special proceeding in equity or at law, by mandamus or otherwise, either of the specific
performance of any covenant or agreement contained herein or for enforcement of any proper legal
or equitable remedy as such Holder shall deem most effectual to protect and enforce the rights
aforesaid.
No remedy herein conferred upon or reserved to the Holder is intended to be exclusive of any
other remedy or remedies, and each and every such remedy shall be cumulative, and shall be in
addition to every other remedy given hereunder or now or hereafter existing at law or in equity.
No delay or omission of a Holder to exercise any right or power accruing upon any Event
of Default shall impair any such right or power or shall be construed to be a waiver of any such
Event of Default, or an acquiescence herein; and every power and remedy given by this article may
be exercised from time to time, and as often as may be deemed expeditious by a Holder.
Section 21. General Authority. The officers, attorneys and other agents or employees
of the City are hereby authorized to do all acts and things required of them by this Resolution, or
desirable or consistent with the requirements hereof, for the full punctual and complete performance
of all the terms, covenants and agreements contained herein or in the Note, including the execution
of any document or instruments relating to payment of the Note, and each member, employee,
attorney and officer of the City is hereby authorized and directed to execute and deliver any and all
papers and instrument and to be and cause to be done any and all acts and things necessary or proper
for carrying out the transactions contemplated hereunder.
Section 22. Waiver of Jury Trial. THE HOLDER, BY ACCEPTANCE OF THE NOTE,
AND THE CITY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALL Y WAIVE
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THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS RESOLUTION, THE NOTE OR ANY AGREEMENT CONTEMPLATED TO BE
EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE
OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF
EITHER P ARTY.
Section 23. Severability. If anyone or more of the covenants, agreements or provisions
of this Resolution should be held contrary to any express provision of law or contrary to the policy
of express law, though not expressly prohibited, or against public policy, or shall be for any reasons
whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and
shall be deemed separate from the remaining covenants, agreements or provisions of this Resolution
or of the Note issued hereunder, which remaining covenants, agreements and provisions shall
remain in full force and effect.
Section 24. No Third-Party Beneficiaries. Except as herein otherwise expressly
provided, nothing in this Resolution expressed or implied is intended or shall be construed to confer
upon any person, firm or corporation other than the parties hereto and the owner and holder of the
Note issued under and secured by this Resolution, any right, remedy or claim, legal or equitable,
under or by reasons of this Resolution or any provision hereof, this Resolution and all its provisions
being intended to be and being for the sole and exclusive benefit of the parties hereto and the owner
and holder from time to time of the Note issued hereunder.
Section 25. Controlling Law; Members of City Not Liable. All covenants, stipulations,
obligations and agreements of the City contained in this Resolution shall be deemed to be covenants,
stipulations, obligations and agreements of the City to the full extent authorized by the Act and
provided by the Constitution and laws of the State of Florida. No covenant, stipulation, obligation
or agreement contained herein shall be deemed to be a covenant, stipulation, obligation or agreement
of any present or future member, agent, officer or employee of the City or the Governing Body of
the City in his or her individual capacity, and neither the members or officers of the Governing Body
of the City nor any official executing the Note shall be liable personally on the Note or this
Resolution or shall be subject to any personal liability or accountability by reasons of the issuance
or the execution by the City or such members thereof.
Section 26. Grant of Easement; Appraisal of Value of Easement; Use of Amounts
Received for Easement. The City hereby grants to FPL the easement described in Exhibit "C"
hereto (the "Easement"). The Mayor and City Clerk are hereby authorized and directed to execute
an agreement conveying the Easement, which agreement is to be prepared by or at the direction of
the City Attorney and recorded in the public records of Miami-Dade County, Florida, after it has
been executed as provided herein.
The appraised value of the Easement to be granted to FPL by the City has not been
established as of the date of this Resolution. In order to establish such value, the City and FPL shall
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9
each, at their own expense, obtain an appraisal. The Manager is hereby authorized and directed to
obtain such appraisal and pay the cost thereof. If the two appraisals are within 15% of each other,
the average of the two appraisals shall be used to calculate the amount to be paid to the City for the
easement (hereinafter itA verage Appraised Valuelt). Ifthe two appraisals are not within 15% of each
other, a third appraisal shall be obtained by an independent review appraiser approved by both
parties. The third appraisal shall then be used to establish the Average Appraised Value to be paid
to the City for the Easement. In no case shall the third appraisal exceed the highest appraised value
or be less than the lowest appraised value of the aforementioned two appraisals. The City and FPL
shall each pay one-half of the cost of the third appraisal.
The amount of the City's Contribution-in-Aid-of-Construction shall be reduced by the
amount of the Average Appraised Value, as caculated in accordance herewith.
Section 27. Repeal of Inconsistent Resolutions. All ordinances and other resolutions
or part thereof in conflict herewith are to the extent of such conflict superseded and repealed.
Section 28. Effective Date. This Resolution shall become effective immediately upon
its adoption.
ADOPTED this 9thdayof
September
,1998.
Yfltl'l
Mayor
ATTEST:
~R~
City Clerk
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~~
ity Attorney
~v
u
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http;\\ci.miami-beach.fl.us
COMMISSION MEMORANDUM NO.
52,'3 -q~
TO:
Mayor Neisen O. Kasdin and
Members of the City Co mission
DATE: September 9,1998
FROM:
Sergio Rodriguez
City Manager
,
SUBJECT:
A RESOLU ION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT WITH FLORIDA POWER
& LIGHT, (FPL), TO PLACE UNDERGROUND A PROPOSED 69KV
TRANSMISSION LINE FROM 40TH STREET SUBSTATION TO 20TH
STREET VENETIAN SUBSTATION AND AUTHORIZING AN APPRAISAL
OF THE REAL PROPERTY VALUE OF THE EASEMENT TO BE
CONVEYED TO FPL.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
On April 15, 1998, the City Commission passed Resolution No. 98-22709, requesting Florida Power
and Light, (FPL), to place the proposed 69KV transmission line underground in lieu of overhe~d.
ANALYSIS:
City staff and FPL representatives have held a series of meetings to discuss the underground route
, ,of transmission line, methods of installation, estimated costs of the underground line versus overhead
line. The Public Services Commission (PSC) requires that FPL fund the cost of overhead lines only.
The City has agreed to fund the cost differential of an underground transmission line. The total cost
differential is estimated to be $3,980,000, before offsetting the value of the easement to be paid for
by FPL.
The appraised value for the real property interest in the easement to be conveyed by the City has not
been established as of the effective date of this Agreement. Prior to the execution of the easement,
the City shall obtain an appraisal. FPL shall simultaneously obtain an appraisal of the easement
property at FPL's expense.
AGENDAITEM~
DATE~
If the two appraisals are within 15% of each other, the average of the two appraisals shall be used
to calculate the value to be paid to the City for the easement (hereinafter "Average Appraised
Value"). If the two appraisals are not within 15% of each other, a third appraisal shall be obtained
by an independent review appraiser approved by both parties. The third appraisal, shall at that time
be used to calculate the Average Appraised Value to be paid to the City for the Easement. In no case
shall the third appraisal exceed the highest appraised value or be less than the lowest appraised value.
FPL will reduce the cost differential by the Average Appraised Value of the easement at the time the
easement is executed.
FPL has offered to finance this project over ten years at a currently estimated rate of 4.65%.
However, the final rate will be determined prior to the Commission Meeting on September 9, 1998
and in no case will such rate exceed 4.75% per annum.
CONCLUSION:
The City Commission should approve the Resolution authorizing the installation of the 69 KV
underground transmission line authorize an appraisal of the easement and approve the financing
option.
SR\HM\JGdP\MA\PDW\odp
~
40TH STREET - VENETIAN 69 KV LINE
UNDERGROUND VS. OVERHEAD DIFFERENTIAL COSTS
Underground
Overhead
Differential
Construction Costs
Underground Construction
Contractor Bid
3,539,281
3,539,281
Overhead Construction
FPL Budget Estimate
500,000
(500,000)
Total Construction Costs ...
3,539,281
500,000
3,039,281
Engineering & Construction Support Costs
Engineering, Licensing and Design 300,000 42,500 257,500
Construction Management, Field Supervision
and Inspection 336,000 47,500 288,500
Procurement and Contract Administration , 71,000 10,000 61,000
Total Support Costs
707,000
100,000
607,000
'"I'
Landscaping Restoration Costs
333, n8
333,778
Total Costs
4,580,059
600,000
3,980,059
... Total Construction Costs Do Not Include Contingency For Any Out of Scope Conditions.
8/24/98
Page 1
JWP 352-GVR8092
South Area Transmission
40th St.-VenetiaI69kv Line
Contractor A Contractor B
------ --. ------
._-~. - ---- - -- -----
_.~-- -. -- --- "-_. - -,
Labor $3,149.000.00 $1,416,000.00
-- ------------ --..-- 1-.., .--.---
Material $1,054,433.00 $2.024,500.00
- ____ ___.' __ n___ -- ~- -----
Spa!:.e Parts $105.850.00 $50,161.00
'.
-----.. -- _._-- ..----
LUMP SUM PRICE $4,309.283.00 $3,490,661,00
.- ,-, -' -
--,--. --, .. -- ..-"--- -
Credit if FPL replaces golf course landscaping ----.---
.' ~- I- ------- -----
Labor $16,000.00
-q
Material $16,250.00 $23,000.00
-- ---- ,-
--- ..--
Add~t~onal Cost to resurface entire Royal Palm -- -
Labor $6,500.00 $2,900.00
Material $11,470.00 $4,000.00
.-, - -- ,---
. --. -- ----.
Additional Cost to resurface entire WAO St.
.--.--- -- ._+- -
Labor $6,100.00 $2,400.00
- "- -----* ---..
Material $9,900.00 $3,500.00
....--.- - --
-.-----.. __n_ _
Additional Cost to resurface entire W.34 St. 1----
---- -
Labor $1,700.00 $2.200.00
-' ----
Material $2,800.00 $3,100.00
--- _m"_
A~d~.C?nal Cost to resurface entire West park- .. --.--.--
ing lot ~~r BayShore Golf Course ~--_..
Labor $7,220.00 $17,500.00
. --------------- -- -. ... _... ---
Material $11,780.00 $24,000.00 --"--
-. ..L.._, _.. --- - -,
- _. ._--
-- . ------- .. --------.- ------ _._-- .---- --.- - .-,.- ---
._- - --- .- -
.. ._---- . --- ---
--
r,A. third bid was submitted but did not meet the technical requirements of the bid specifications
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Enaineerina and Construction Succort Costs
These costs are primarily from four sources:
1 Direct payroll and expenses charged to the work order for Engineering, Design,
Licensing, Drafting, Inspection, Construction Management and Procurement activities.
2 Pension & Welfare are expenses such as the company's portion of the medical
plan, thrift plan and pension plan. These expenses are applied to all payroll costs.
3 Taxes and Insurance includes company payments for social security, medicare. state
and federal unemployment taxes and workers compensation. This is applied to all
payroll costs.
<...
4 Applied Engineering is the payroll and expenses of the Engineering departments and
and services centers that can not charge directly. Allocated costs are applied to
capitalized company payroll, material, vehicle and contractor payments.
Prepared by LEKOML T 8/12/98