2007-26529 Reso Inc.
RESOLUTION NO. 2007-26529
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT
TO PROMOTE UNDERGROUNDING OF UTILITY FACILITIES
AND RELATED IMPLEMENTATION ACTIVITIES BY AND
AMONG THE FLORIDA CITIES OF BOCA RATON, BONITA
SPRINGS, COCOA BEACH, COCONUT CREEK, COOPER CITY,
LIGHTHOUSE POINT, MELBOURNE, NAPLES, PALMETTO,
PLANTATION, PUNTA GORDA, SATELLITE BEACH,
TAMARAC, WILTON MANORS AND THE FLORIDA TOWNS OF
GOLDEN BEACH, GULF STREAM, HIGHLAND BEACH, JUNO
BEACH, JUPITER, JUPITER INLET COLONY, JUPITER ISLAND,
MANALAPAN, OCEAN RIDGE, PALM BEACH, PALM BEACH
SHORES, SEWALL'S POINT, SOUTH PALM BEACH, SURFSIDE
AND THE FLORIDA VILLAGE OF NORTH PALM BEACH
(COLLECTIVELY, THE MUNICIPAL UNDERGROUND UTILITIES
CONSORTIUM OR MUUC).
WHEREAS, the City of Miami Beach has the authority as a municipal
government to enter into interlocal agreements with other political jurisdictions in
furtherance of municipal interests; and
WHEREAS, the City Commission has identified reliable, safe, and cost-
effective electric distribution infrastructure, and other utility infrastructure, as
critical to the public health, safety, and welfare; and
WHEREAS, it is widely recognized that, overall, underground electric
distribution facilities experienced fewer and less severe outages during the
hurricanes that struck Florida in 2004 and 2005 than did overhead facilities; and
WHEREAS, the City Administration recommends that the City become a
party to the attached Interlocal Agreement, creating and establishing the
"Municipal Underground Utilities Consortium" (MUUC), for participating local
governments in Florida to mutually support the comprehensive evaluation of the
life-cycle costs, cost effectiveness, and efficacy of undergrounding electric utility
facilities, and further to support any activities reasonably necessary to promote
those local governments' interests in issues relating to undergrounding electric
and other utility and utility type facilities; and
WHEREAS, the proposed Interlocal Agreement shall be effective upon
execution by the City and shall terminate on December 31,2008 (unless the City
elects to opt out of the Agreement earlier, as provided under the Agreement);
and
WHEREAS, the Interlocal Agreement limits any participating
governmental entity's cost to $12,000 for anyone undertaking; and
WHEREAS, an entity's participating cost under the Interlocal Agreement
is allocated based on a hybrid formula of population and taxable property value
as of 2005; based on this formula, the City's maximum cost share for anyone
undertaking under the Agreement would be $12,000; and
WHEREAS, the City is not obligated to participate in any undertaking
under the Agreement; if it elects to opt out of an activity, it will have no financial
obligation as to that activity (and the cost for same will be apportioned among the
other governmental entities in the MUUC who elect to participate).
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND
THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
authorizing the City Manager to execute an Interlocal Agreement to promote
undergrounding of utility facilities and related implementation activities by and
among the Florida cities of Boca Raton, Bonita Springs, Cocoa Beach, Coconut
Creek, Cooper City, Lighthouse Point, Melbourne, Naples, Palmetto, Plantation,
Punta Gorda, Satellite Beach, Tamarac, Wilton Manors and the Florida towns of
Golden Beach, Gulf Stream, Highland Beach, Juno Beach, Jupiter, Jupiter Inlet
Colony, Jupiter Island, Manalapan, Ocean Ridge, Palm Beach, Palm Beach
Shores, Sewall's Point, South Palm Beach, Surfsi d the Florida Village of
North Palm Beach (collectively, the Municipal U e und Utilities Consortium
or MUUC).
PASSED and ADOPTED this 16th day, of
,2007.
~~ p~~
City Clerk
Robert Parcher
F :\cmgr\$ALL \BOB\UndergroundMUUCI nterlocalagreereso.doc
APPROVED AS TO
FORM & LANGUAGE
& F ECUTION
5}'{C1
Date
COMMISSION ITEM SUMMARY
to execute an Interlocal Agreement to promote
facilities.
Ke Intended Outcome Su orted:
Ensure well maintained infrastructure.
Issue:
Shall the City Commission authorize the City Manager to execute an Interlocal Agreement to promote
under round in of electric utilit facilities?
Item Summa /Recommendation:
The City has been supporting the efforts of a number of neighborhoods in their desire to relocate above
ground electric utilities underground. While a number of areas within the community have expressed
interest in the conversion of above ground electric utilities, the most active to date in terms of planning,
design and process are Palm and Hibiscus Islands, Sunset Islands 3 and 4 and the Venetian Islands.
As planning and design for the electric conversion projects has proceeded, it has become apparent that
other issues remain to be resolved with FPL before a right-of-way agreement can be developed that is
acceptable for FPL, the neighborhood and to the City. The debate and discussion with FPL relative to
electric conversion projects has shifted with the new right-of-way language issues from a regional level to a
state wide and corporate level for FPL.
To the extent that the City Commission would like to continue support for neighborhood electric conversion
projects, City involvement in a lead role with FPL would be appropriate. In order to advance in this venue it
is believed that the City Attorney's Office and the City Administration will require specific technical
assistance from individuals knowledgeable in both the PSC process and the electric industry.
The subject of obtaining outside expertise was raised at the April 25, 2007 meeting of the
Neighborhoods/Community Affairs Committee. The Committee recommended to the full Commission that
as a first step, the City first join as a participating and voting member in the multi-city consortium which is
referred to as the Municipal Underground Utilities Consortium (MUUC) at the initial investment of
$12,000.00.
It is recommended, consistent with the Neighborhoods/Community Affairs Committee's recommendation,
that the City Commission authorize the City Manager to execute an Interlocal Agreement with the MUUC.
The MUUC will offer a larger group of municipalities with similar interests in support of City positions, as
well as access to immediate technical expertise. Membership in the MUUC may be sufficient in resolving
the issues of concern to the City of Miami Beach and its individually affected neighborhoods, which can
later be su lemented with s ecific outside counsel if necessa
Advisory Board Recommendation:
I N/A
Financial Information:
Source of Amount Account APproved
Funds: 1
I I 2
OBPI Total
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Robert C. Middaugh
m
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MIAMI BEACH
AGENDA ITEM
DATE
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EACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gav
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City Manager \, ~ ~
May 16, 2007 0
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE
AN INTERLOCAL AGREEMENT TO PROMOTE UNDERGROUNDING OF
UTILITY FACILITIES AND RELATED IMPLEMENTATION ACTIVITIES BX
BETWEEN/AND AMONG THE FLORIDA CITIES OF BOCA RATON, BONITA
SPRINGS, COCOA BEACH, COCONUT CREEK, COOPER CITY, LIGHTHOUSE
POINT, MELBOURNE, NAPLES, PALMETTO, PLANTATION, PUNTA GORDA,
SATELLITE BEACH, TAMARAC, WILTON MANORS AND THE FLORIDA
TOWNS OF GOLDEN BEACH, GULF STREAM, HIGHLAND BEACH, JUNO
BEACH, JUPITER, JUPITER INLET COLONY, JUPITER ISLAND, MANALAPAN,
OCEAN RIDGE, PALM BEACH, PALM BEACH SHORES, SEWALL'S POINT,
SOUTH PALM BEACH, SURFSIDE AND THE FLORIDA VILLAGE OF NORTH
PALM BEACH.
ADMINISTRATION RECOMMENDATION
TO:
FROM:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
ANAL YSIS
Adopt the Resolution.
The City has been supporting the efforts of a number of neighborhoods in their desire to
relocate above ground electric utilities underground. While a number of areas within the
community have expressed interest in the conversion of above ground electric utilities, the
most active to date in terms of planning, design and process are Palm and Hibiscus Islands,
Sunset Islands 3 and 4 and the Venetian Islands.
Assistance that has been rendered to the interested neighborhoods to date has largely taken
the form of coordination with neighborhood improvement projects and assisting in
developing right-of-way agreement language to be utilized by the respective neighborhoods.
While the City has offered to assist in financing overhead electric conversion projects
through a special assessment levied on the benefited neighborhood, the projects have not
yet advanced to that point.
One of the most significant points discussed to date with FPL in planning overhead electric
conversion projects has been the willingness of FPL to allow underground facilities to be
placed within existing City right-of-way. Until fairly recently, it was believed that this matter
had been resolved at the FPL regional level and that an agreement had been developed that
FPL would allow to be used at least for Palm and Hibiscus Islands and Sunset Islands 3 and
4. No commitment has been made to date on the willingness of FPL to use the same terms
of a right-of-way agreement for the Venetian Islands.
As planning and design for the electric conversion projects has proceeded, it has become
apparent that other issues remain to be resolved with FPL before a right-of-way agreement
can be developed that is acceptable for FPL, the neighborhood and to the City. The most
recent stumbling block has been a rather stringent indemnity clause that has been requested
by FPL in all of their right-of-way agreements for electric conversion projects. Attached
please find the requested FPL language and a commentary from First Assistant City
Attorney, Raul Aguila relative to the indemnity language which in its current form, the City
Attorney's Office and the City Administration would strongly recommend that the City not
accept.
The debate and discussion with FPL relative to electric conversion projects has shifted with
the new right-of-way language issues from a regional level to a state wide and corporate
level for FPL. Addressing the right-of-way provisions will necessitate interaction with FPL
Corporate representatives and potentially the Public Service Commission (PSC) to the
extent direct negotiations are not successful. It is unlikely that any individual neighborhood
would be able to prevail at the state wide level in direct negotiations with FPL. Further, each
neighborhood would need to perform such negotiations without City intervention and
assistance. To the extent that the City Commission would like to continue support for
neighborhood electric conversion projects, City involvement in a lead role with FPL would be
appropriate. In order to advance in this venue it is believed that the City Attorney's Office
and the City Administration will require specific technical assistance from individuals
knowledgeable in both the PSC process and the electric industry.
The subject of obtaining outside expertise was raised at the April 25, 2007 meeting of the
Neighborhoods/Community Affairs Committee. In this meeting, the Committee members
discussed the possibility of utilizing outside expertise to assist the City in the overhead
electric conversion process and different mechanisms that might be available to the City to
secure that expertise. The Committee discussed directly retaining outside counsel, as well
as the possibility of joining a consortium of municipalities that have organized for the specific
purpose of promoting underground electric utilities within their respective communities.
The Committee recommended to the full Commission that as a first step, the City first join as
a participating and voting member in the multi-city consortium which is referred to as the
Municipal Underground Utilities Consortium (MUUC) at the initial investment of $12,000.00.
Attached is a copy of the MUUC Interlocal Agreement which has already been executed by
thirty member municipalities. Inclusive in the Interlocal Agreement is a formula which
identifies the respective share of the member municipalities and which is capped at a
maximum of $12,000.00. Given the formula used by MUUC, based on population and
taxable value, our proportional share would be significantly higher if the Interlocal did not
provide for a cap.
The initial stated purpose of the MUUC has been to maximize the contribution in aide of
construction that would be provided by FPL for electric conversion projects. To date the
MUUC has been successful in having PSC action undertaken to accomplish a 25%
contribution and it is anticipated that in the near future additional PSC representation will be
undertaken to increase that amount further. Funds from member communities were used to
create an engineering analysis for the contribution cost and to pay for legal counsel to
present and negotiate the item.
In conversations with the MUUC representatives, the consortium is also pursuing a right-of-
way agreement for state wide application as part of their initial activities. As the right-of-way
agreement term resolution is of immediate and specific interest to neighborhoods in the City
of Miami Beach, the Neighborhoods/Community Affairs Committee recommended first
joining the MUUC and as needed, secure outside counsel in order to assist our local
neighborhoods with overhead electric conversion projects.
For any future activities that necessitate funding, each member community may elect to
participate or not. No obligation exists by virtue of the Interlocal Agreement.
Joining the MUUC is consistent with previous City Commission's actions to undertake and
facilitate general citywide interests as opposed to capital improvements that specifically
benefit a particular neighborhood. Also attached for the City Commission review is a
Resolution enacted in 2002, relative to the City's position on overhead electric conversions
and specifically efforts to be undertaken on behalf of Palm and Hibiscus Islands and Sunset
Islands 3 and 4.
CONCLUSION
It is recommended, consistent with the Neighborhoods/Community Affairs Committee's
recommendation, that the City Commission authorize the City Manager within the next 45
days to execute an Interlocal Agreement with the MUUC. The 45 day window will allow the
City to recognize and to address the appropriate time of execution for the agreement to
maximize City interests in light of any other initiatives or actions within this time period. The
MUUC will offer a larger group of municipalities with similar interests in support of City
positions, as well as access to immediate technical expertise. Membership in the MUUC
may be sufficient in resolving the issues of concern to the City of Miami Beach and its
individually affected neighborhoods, which can later be supplemented with specific outside
counsel if necessary.
JMG ~
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