LTC 240-2023 COST TO UNDERGROUND EXISTING FLORIDA POWER & LIGHT OVERHEAD TRANSMISSION FACILITIES AT CITY PARKING LOT (P-92)M IA M I BEACH
OFFICE OF THE CITY MANAGER
LTC #
LETTER TO COM MISSION
TO :
FROM:
D A T E:
Honorable Mayor Dan Gelb~bers of the City Commission
A lin a T. H u d a k , City Manag(JA ~ )
May 24, 2023 '
SU B JECT : C O S T T O U NDERGROUND EXISTING FLORIDA POWER & LIGHT OVERHEAD
TRA NSMISSION FACILITIES AT CITY PARKING LOT (P-92)
The purpose of this L TC is to provide an update to the Mayor and City Commission on the cost to underground
existing Florida Power & Light (FPL) overhead transmission facilities currently located along the north, west and
south sides of the City surface parking lot, P-92, located between 72nd and 73rd Streets and between Collins and
Harding Avenues.
At the September 14, 2022 Commission Meeting, it was discussed that the seven (7) existing concrete transmission
poles installed by FPL at the City's surface parking lot (P-92) were not aesthetically pleasing and the Commission
asked if the transmission lines could be undergrounded. The Administration advised that an underground option
was considered several years ago but was not feasible at the time due to the related costs. The Commission
requested an "order of magnitude estimate" for the option to undergrounding the overhead transmission lines. As
a result, the Administration requested and has obtained an "order of magnitude estimate" from FPL (Attachment A)
for removal of the existing seven (7) concrete poles and the undergrounding of the overhead transmission facilities.
FPL provided an "order of magnitude cost" between $10.5 million and $14.7 million. Due to the complex nature of
the type of work, FPL advised that it is difficult to determine if undergrounding the existing transmission lines would
be possible without performing a preliminary feasibility study, which requires a deposit of approximately $300,000.
Additionally, FPL stated that undergrounding the transmission lines would require two (2) "end poles," with risers,
insulators and switches at each transition point (Attachment B). The inclusion of these additional risers, insulators
and switches appear to make the poles even more obtrusive than the existing poles. Additionally, FPL cannot yet
confirm if they would be able to re-use two of the existing poles as the described "end poles," or if they would need
to be replaced with new poles. In effect, two (2) poles would remain on site in order to transition between
underground and overhead services.
In the interest of thoroughness, and given the estimated cost and resulting end poles, the Administration also
requested an order of magnitude estimate to underground the transmission lines from sub-station to sub-station,
similar to FPL's currently ongoing project to install underground transmission lines between the Sunset Harbour
sub-station and the Terminal Island sub-station. By undergrounding the entire transmission line, between sub-
stations, the large end poles with associated pole mounted equipment would not be required. FPL provided an
order of magnitude cost estimate (Attachment C) to underground the entire length of the transmission line network
ranges between $30 million and $45 million, not including the relocation of distribution lines, the relocation of other
utilities which currently utilize the poles, or obtaining and recording any necessary easements.
In summary, the order of magnitude cost to underground across the site between 72nd and 73rd Streets, is between
$10.5 million and $14.7 million, and the order of magnitude cost to underground from sub-station to sub-station is
between $30 million and $45 million.
ATTACHMENTS:
Attachment A-- FPL Order of Magnitude Estimate
240-2023
A ttachm ent B - "End Poles"
A tt a c h m ent C - FPL O rder of M agnitude Estim ate
A TH /E C /D M
ATTACHMENT A
» w
F-PL.
15430 ENDEAVOR DR., JUPITER, FL 33478
October 25, 2022
Mr. David Martinez, P.E.
Director of Capital Improvement Projects
City of Miami Beach, CIP
1701 Meridian Ave CMB Office 3" Floor
Miami Beach, FL
Re: Estimated Cost for Proposed Burial of Existing Overhead Transmission Lines within
City of Miami Beach (Miami Beach Parking Lot - 299 724 St, Miami Beach FL 33141)
Dear Mr. Martinez:
We have evaluated your request to relocate our existing transmission facilities referred to above. The
non-binding "ballpark" estimate to place these existing Overhead Transmission facilities underground,
as described above, is $10.5 to $14.7 Million dollars.
This non-binding estimate is an "order of magnitude" estimate and is based on previous FPL
experience. However, due to the complex nature and variables associated with this type of work, the
estimate may not accurately represent the actual cost the City would be obligated to pay FPL to place
these facilities underground.
This estimate does not include the cost to relocate any distribution facilities attached to transmission
poles or not, describing, securing, and recording of easements, clearing of trench routes, and cost the
City may incur from other utilities/pole licensees affected by the relocation. Additionally, this cost is
independent of the associated burial of the distribution electrical lines.
This estimate is not an offer from FPL to perform the requested work and should not be construed or
used as such for detailed planning purposes. It is provided strictly to assist you in preliminary
decision-making. This "ballpark" estimate is based on trenched construction duct bank, in some cases;
it will require two underground circuits to match the available ampacity of one single overhead circuit.
In order to determine if this endeavor is possible, FPL proposes to conduct a preliminary study to
determine its feasibility. FPL estimates a study of this magnitude would cost in excess of $300,000. If
the City determines that it would like to proceed with the feasibility study a deposit would be required
to initiate the procurement process. The City would be responsible for the total cost of the study,
notwithstanding the results of the feasibility study.
To fully account for all expenses which are part and parcel of the full cost of relocation and thereby
ensure that other FPL customers do not pay for the cost associated with your relocation (and likewise
you theirs), FPL requires the City agrees to certain terms and conditions. The following identifies
some, but is not limited to, the terms and conditions required of the City before a relocation agreement
is executed. The City must:
an FPL Group company
ATTACHMENT A
@
F-PL.
15430 ENDEAVOR DR, JUPITER, FL 33478
a) enter into agreements that will accomm odate the relocation of other pole licensees (e.g.
Telephone, CATV);
b) describe, secure, and record all easements ( along with opinion of title that they are valid), at
no cost to FPL, necessary to accommodate the un derground transmission system and respective
term ination stations;
c) protect FPL from an y claim or suit regarding restoration or property affected by the
relocation;
d) agree to clear easements of all obstructions that might conflict with constru ction of the
un dergroun d system.
It is important to note that the requesting party would only be responsible for the final (actual) cost for
FPL to construct the project. The cost estimate includes contingency which may or may not be
required. The estimate provided addresses the total cost of the project an d includes a num ber of
project cost components. These include labor, material, engineering, an d project management costs,
along with FPL's General and Administrative cost (G&A). The final cost to the City will be based
upon the actual cost of the project with credits such as requesting parties contractor participation (see
below) an d salvage based on current regulatory practice.
Easements/Property Rights
An un derground transmission system is constructed differently than an overhead system. Typically,
overhead systems exist as part of a county or m uni cipal right-of-way, and when necessary, as part of a
specific easement. In contrast, an undergroun d system requires more space than can ty pically be
accomm odated within easements for overhead facilities along road rights-of-way. In this project,
interm ediate splice locations (manh oles) will be required. Facilities for an un derground transmission
system wi ll typically be placed on private property with the exception of crossing road rights-of-way.
Wh ere constructed on private property, an approximately 30 foot perm an ent easem ent (plus and
additional temporary constru ction easement along the route and at cable pulling locations) for the
un derground facilities is required. For requests to relocate electrical tran smission facilities, requesting
parties are responsible for providing appropriate property rights. Describing, secur ing, an d recording
easem ents or other property rights, with opinions of title, will be required as part of this process and
are not included in the cost estim ates.
If we have to place our proposed facilities un derground in public right of way, FPL will require from
the owner an exclusive tran smission permit (easement) to be located in the public right of way an d the
City agrees to pay to have the tran smission line relocated if necessary at a futur e date.
City Participation
W hile it is not appropriate for the City to oversee the civil or electrical portion of the project, there are
several areas where FPL m ay be agreeable to allow the City to participate in contributing resour ces
that are listed below in addition to the property rights mentioned above if agreeab le to FPL's
Contractor:
an FPL G roup company
ATTACHMENT A
»
t@
F-PL
15430 ENDEAVOR DR, JUPITER, FL 33478
• Provide a secure staging site for the contractor to store materials and equipment in close proximity to
the project.
• Provide project security to ensure materials are not stolen.
• Provide for Maintenance of Traffic (MOT) flagman services.
• Surveying services.
• Coordination to resolve utility conflicts.
• Provide a site to deposit excavated materials for disposal by the City.
• Restoration following all construction activities.
• Consider allowing use of open cut trench for road crossings with City restoration of the roadway.
• Provide a liaison to address customer inquiries and concerns.
Next Steps
If the City decides to continue discussing the placement of the transmission lines underground, please
let us know. We would be happy to meet further with you to discuss the technical factors that will
need to be considered, the potential construction impacts to your community during construction and
the agreements and timing for moving to the next stage.
Should you have any questions or need any additional information of a technical nature, please do not
hesitate in contacting me at (561) 904-3634.
Sincerely,
£
Engineering Lead - Transmission Engineering
an FPL Group company
ATTACHMENT B
- - - --- --- - ----- r ---
Sampl e End Poles with related undergrounding equipmen t
ATTACHMENT C
March, 27, 2023
Mr. David Martinez, P.E.
Director of Capital Improvement Projects
City of Miami Beach, CIP
1701 Meridian Ave CMB CIP Office 3rd Floor
Miami Beach, FL
RE: Estimated Cost for proposed Burial of Existing Overhead Transmission Line within City of
Miami Beach: INDIAN CREEK-NORMANDY BEACH 69kV 17B6 to 19B11
Dear Mr. Martinez,
We evaluated your request to relocate our existing transmission facilities referred above. The non-
binding "ballpark" estimate to place these existing Overhead Transmission facilities to underground,
as described above, is $30 to 45 million dollars.
This non-binding estimate is an "order of magnitude" estimate and is based on previous FPL
experience. However, dur to the complex nature and variables associated with this type of work, the
estimate may not accurately represent the actual cost the City would be obligated to pay FPL to place
these facilities underground.
This estimate does not include the cost to relocate any distribution facilities attached to transmission
poles or not, describing, securing, and recording of easements, clearing of trench routes and cost the
City may incur from other utilities/pole licensees affected by the relocation. Additionally, this cost is
independent of the associated burial of the distribution electrical lines.
This estimate is not an offer from FPL to perform the requested work and should not be construed or
used as such for detailed planning purposes. It is provided strictly to assist you in preliminary decision-
making. This "ballpark" estimate is based on a combination of HOD and trenched construction duct
bank, in some cases; it will require two underground circuits to match the available ampacity of one
single overhead circuit.
In order to determine if this endeavor is possible, FPL proposes to conduct a preliminary study to
determine its feasibility. FPL estimates a study of this magnitude would cost in excess of $300,000. If
the City determines that it would like to proceed with the feasibility study a deposit would be required
to initiate the procurement process. The City would be responsible for the total cost of the study,
notwithstanding the results of the feasibility study.
To fully account for all expenses which are part and parcel of the full cost of relocation and thereby
ensure that other FPL customers do not pay for the cost associated with your relocation (and likewise
you theirs), FPL requires the City agrees to certain terms and conditions. The following identifies some,
Florida Power & Light Company
700 Universe Boulevard, TS4/JW, Juno Beach, FL 33408
ATTACHM ENT C
but is not limited to, the terms and conditions required of the City before a relocation agreement is
executed. The City must:
a) Enter into agreements that will accommodate the relocation of other pole licensees (e.g. Telephone,
CATV);
b) Describe, secure, and record all easements ( along with opinion of title that they are valid), at no cost
to FPL, necessary to accommodate the underground transmission system and respective
termination stations;
c) Protect FPL from any claim or suit regarding restoration or property affected by the relocation;
d) Agree to clear easements of all obstructions that might conflict with construction of the underground
system.
It is important to note that the requesting party would only be responsible for the final (actual) cost for
FPL to construct the project. The cost estimate includes contingency which may or may not be
required. The estimate provided addresses the total cost of the project and includes a number of project
cost components. These include labor, material, engineering, and project management costs, along with
FPL's General and Administrative cost (G&A). The final cost to the City will be based upon the actual
cost of the project with credits such as requesting parties contractor participation (see below) and
salvage based on current regulatory practice.
Easements/Property Rights
An underground transmission system is constructed differently than an overhead system. Typically,
overhead systems exist as part of a county or municipal right-of-way, and when necessary, as part of a
specific easement. In contrast, an underground system requires more space than can typically be
accommodated within easements for overhead facilities along road rights-of-way. In this project,
intermediate splice locations (manholes) will be required. Facilities for an underground transmission
system will typically be placed on private property with the exception of crossing road rights-of-way.
Where constructed on private property, an approximately 30 foot permanent easement (plus and
additional temporary construction easement along the route and at cable pulling locations) for the
underground facilities is required. For requests to relocate electrical transmission facilities, requesting
parties are responsible for providing appropriate property rights. Describing, securing, and recording
easements or other property rights, with opinions of title, will be required as part of this process and are
not included in the cost estimates.
If we have to place our proposed facilities underground in public right of way, FPL will require from
the owner an exclusive transmission permit (easement) to be located in the public right of way and the
City agrees to pay to have the transmission line relocated if necessary at a future date.
City Participation
While it is not appropriate for the City to oversee the civil or electrical portion of the project, there are
several areas where FPL may be agreeable to allow the City to participate in contributing resources that
are listed below in addition to the property rights mentioned above if agreeable to FPL's Contractor:
ATTACHMENT C
• Provide a secure staging site for the contractor to store materials and equipment in close
proximity to the project.
• Provide project security to ensure materials are not stolen.
• Provide for Maintenance of Traffic (MOT) flagman services.
• Surveying services.
• Coordination to resolve utility conflicts.
• Provide a site to deposit excavated materials for disposal by the City.
• Restoration following all construction activities.
• Consider allowing use of open cut trench for road crossings with City restoration of the
roadway.
• Provide a liaison to address customer inquiries and concerns.
Next Steps
If the City decides to continue discussing the placement of the transmission lines underground, please
let us know. We would be happy to meet further with you to discuss the technical factors that will need
to be considered, the potential construction impacts to your community during construction and the
agreements and timing for moving to the next stage.
Should you have any questions or need any additional information of a technical nature, please do
not hesitate in contacting me at (561) 904-3662.
Sincerely,
7=>
Roberto V Cruz, P.E.
Transmission Engineering Manager
Office: 561.904.3662
Florida Power & Light Company
700 Universe Boulevard, TS4/JW, Juno Beach, FL 33408