Key Biscayne Master Plan 043944000.18w_Key_Biscayne_MP(forJooMag) | Page 86

VILLAGE OF KEY BISCAYNE UNDERGROUNDING OF UTILITIES — MASTER PLAN
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The addition of any previously unbudgeted costs for replacements
or improvements necessitated by the undergrounding program. For
example, the replacement of existing street lighting that is currently
installed on overhead utility poles.
Utility owners will also encounter some of the same budget risks,
and to the extent increased labor and material costs can be passed
along to the Village, it is expected they will do so.
Budget Risk Mitigation
Design and Preconstruction Phase
During the preconstruction phase, one of the larger budget risks is tied to
the easement acquisition process. Property owners unwilling to dedicate
an easement for necessary equipment on their property may necessitate
the Village commence with eminent domain proceedings to complete the
project. This process can be expensive and time consuming. To mitigate
this risk, adequate time should be allowed within the project schedule to
discuss and alleviate concerns with impacted property owners. Another
mitigation measure is to exercise flexibility in the size, shape, and location
of easements obtained for equipment to aid the negotiation process.
Where possible, equipment should be located in the right-of-way to avoid
the need to procure an easement altogether. Where the equipment must
be placed within private property due to design and space constraints,
it is helpful that the person(s) discussing proposed easement locations
with property owners understand the flexibility available to the design
team for relocating equipment to facilitate quick negotiations during the
preconstruction phase.
During the design phase the construction documents should undergo a
value engineering process to identify potential reductions to construction
costs. The Kimley-Horn design team includes team members with
experience in the power and communications distribution industry who
can review not only the supplementary conduit plans being produced by
Kimley-Horn, but also the network designs produced by FPL, AT&T, and
Comcast. The intent of these reviews is to provide assurances the network
designs do not contain unnecessary upgrades, are efficient, and are a “like
for like” overhead to underground conversion design.
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Construction Phase
Project schedule delays generally correlate with budget impacts, therefore
quickly resolving any delays and closely managing schedule are a good
mitigating measure for budget control on the project.
There are several ways to mitigate increases in material costs that may be
experienced during the project. Schedule control is important, since
material prices can fluctuate over time but generally will increase due to
inflation. This project offers a unique opportunity for the Village to direct
purchase materials in large quantities to achieve both volume pricing and
tax advantages. For example, conduit and HDPE piping can be purchased
directly by the Village using their tax-exempt status to save the sales tax.
The contractor can receive bids for these materials from suppliers with
purchase orders being issued directly by the Village. This allows the
contractor to remain responsible for the coordination and delivery of these
materials, therefore reducing the risk of the Village becoming responsible
for maintaining an adequate flow of materials to the contractor.
As previously discussed, market conditions can influence project costs
both positively and negatively. While the Village cannot control market
conditions, action can be taken to encourage competition among potential
bidders for each of the bid packages, providing incremental benefits to the
project cost. One approach is to hold an industry forum with members of