Key Biscayne Master Plan 043944000.18w_Key_Biscayne_MP(forJooMag) | Page 10

VILLAGE OF KEY BISCAYNE UNDERGROUNDING OF UTILITIES — MASTER PLAN
Opinion of Probable Cost
The master planning process included the development of a Conceptual
Opinion of Probable Cost for the undergrounding program. The Village
does not have an existing budget established for this project, therefore,
there was a desire to evaluate and update the potential costs based on
information obtained through the master planning process. A summary of
total project costs, including contingency and inflation, is provided in the
following table.
Village of Key Biscayne
Overall Program Opinion of Probable Cost Summary -
August 2018
Item
No.
Opinion of
Probable
Cost
Description
1 Overhead to Underground Conversion - FPL
$17,900,000
2 Utility Conversion Costs - ATT & Comcast $9,200,000
3 Impacted Street Light Replacement (Village Custom) $1,100,000
4 Restoration $6,000,000
5 Construction Management $3,800,000
6 Engineering/Permitting/Surveying $2,000,000
7 Construction Administration $1,800,000
8 Legal Fees/Easement Acquisition 9 Public Outreach 10 FPL Credit - 25% GAF Waiver
$500,000
$300,000
$(4,400,000)
11 Subtotal Undergrounding Project Costs $38,200,000
12 10% Contingency $3,800,000
13 Inflation $4,800,000
14 Total Undergrounding Project Costs $46,800,000
Project costs should be tracked throughout the life of the program so that
the opinions of cost for subsequent phases can be updated as actual
expenditures are realized. This may increase the accuracy of the budget
forecasting for the balance of the program as cost projections would be
based on realized Village of Key Biscayne project costs rather than similar
representative projects.
As shown in the summary table, the FPL Government Adjustment Factor
(GAF) Waiver credit has been estimated. It is expected the Village will
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enter into an Underground Facilities Conversion Agreement with FPL for
the conversion of Village-wide overhead facilities. In accordance with
the FPL Tariff, this program qualifies for a GAF waiver credit of 25%.
The GAF waiver credit amount has been estimated at 25% of the total
estimated FPL CIAC (contribution-in-aid-of-construction) cost to install
the underground system. Additionally, this past spring the FPL Tariff was
revised to include additional discounts. Effective February 22, 2018, certain
elements of the CIAC calculation can be excluded if the applicant intends
to convert existing non-hardened feeder facilities to underground feeder
facilities. The calculation would exclude the cost to remove the existing
overhead feeder facilities and the net book value of those feeder facilities.
In turn, however, the applicant does not get credit for the estimated
salvage value of the existing overhead facilities to be removed.
Revenue generated, or costs related to potential Village-owned broadband
infrastructure improvements, are not considered in this opinion of cost.
This is because the Village has not yet formally decided whether or
not they will proceed with the installation of a broadband infrastructure
network. The opinion of cost to construct a broadband network and
the projected revenues vary widely across the various options that exist.
While these improvements may be constructed concurrently with the
undergrounding program, any costs related to this effort are not included
in the undergrounding program because this is considered an investment
into improving broadband service to the community and is not a “like-for-
like” replacement of what already exists in an aerial configuration within
the Village.
Expected cost variations may occur throughout the life of the program
based on market conditions, labor and material price fluctuations, and
other factors. Kimley-Horn has no control over the cost of labor, materials,
equipment, or over the Contractor’s methods of determining prices or
over competitive bidding or market conditions. Opinions of probable costs
provided herein are based on the information known to Kimley-Horn at this
time and represent only Kimley-Horn’s judgment as a design professional
familiar with the construction industry. Kimley-Horn cannot and does not
guarantee that proposals, bids, or actual construction costs will not vary
from its opinions of probable costs.