12.9 Cost Reduction Opportunities
The opinion of probable construction cost was prepared based
on the understood goals and objectives of the program which
include conversion of all overhead utilities to an underground
location within the Town municipal limits. At the request of the
UUTF, this master planning effort explored several cost reduction
opportunities that could be considered by the Town. However,
these opportunities may require the goals and objectives of the
program be altered, variances from the Town Code of Ordinance
requirements be issued, utility owner design standards changed,
or offsetting revenue and/or grant funding be applied to the
program. A summary of such options is presented below:
12.9.1 Alternative Program Goals and Objectives
The opinion of probable construction cost could be reduced if the
amount of overhead utilities to be converted to an underground
location was reduced. This could be accomplished in a variety of
ways.
y y Phase areas could be selected to not be converted
underground
y y Feeder Infrastructure along the major arterial roads could
be converted underground with the radial infrastructure
largely remaining in their current aerial locations
TOWN-WIDE UNDERGROUNDING OF UTILITIES PROGRAM
MASTER PLAN DOCUMENT
y y Feeder Infrastructure could be hardened in accordance
with FPL’s hardening plan with only the radial
infrastructure being converted to an underground location
y y Various combinations of the above three concepts
While the above concepts could significantly reduce program
costs, they do not accomplish the original vision of the Town to
convert all overhead utilities to an underground location. There
are also other ramifications that need to be considered when
reducing the scope of the program:
y y Depending on the level of scope reduction, the GAF
Waiver may no longer apply unless FPL Tariff minimums
are met. For example, in the instance where only feeder
infrastructure along main arterial roads were to be
converted underground, if the affected laterals were not
converted in their entirety, the GAF Waiver would no
longer apply according to the FPL Tariff.
y y The aesthetics, reliability, and safety benefits of a partially
converted system would be less than the benefits of a
totally converted system. This may also complicate the
assessment methodology.
12.9.2 Town Code of Ordinance Requirements
The opinion of probable construction cost could be reduced if the
Town’s Code of Ordinances did not include a requirement that the
above ground equipment to be installed with the undergrounding
program be screened from view from the public right of way.
This equipment screening requirement adds over $500,000 to the
program budget but cannot be eliminated without a variance from
the Code.
12.9.3 Utility Owner Design Standards
The opinion of probable construction cost could be reduced if
FPL, AT&T, and Comcast altered their design standards for the
project. AT&T and Comcast have already offered conduit standard
revisions exclusively for this program which has reduced the
opinion of program cost. There may be other changes that could
be made by the utility owners to further reduce costs. However,
requests for further design standard changes must be approached
cautiously. Only FPL, AT&T, and Comcast can make decisions
regarding how their systems are to be designed and installed.
Their system standards have been developed over many years of
operational experience and efficiency improvements. There are
also elements of their design standards that enhance the system
reliability and removal or alternation of those elements could create
a system that is less reliable, prone to operational problems, and
difficult to maintain. The Town can continue to explore these
opportunities with the utility owners with the understanding
that opportunities may be limited and the utility owners may be
unwilling to modify their standards any further.
12.9.4 Offsetting Revenues, Credits, and/or
Grant Funding
The opinion of probable construction cost could be offset by a
variety offsetting revenues, credits, or grant funding opportunities.
This would ultimately result in a lower net cost realized by the
Town for the program. These opportunities include the following:
y y Additional credits or financial contribution from
the utility owners. There is a benefit that each utility
owner realizes in avoided storm recovery efforts after an
underground conversion is complete. Currently, only FPL
offers a credit (GAF Waiver) for this benefit. The Town
should continue to explore ways the utility owners can
participate in offsetting the cost of the program based on
the benefits they will receive. This can take on the form of
enhanced credits, no cost system betterments, etc.
y y Broadband Infrastructure Revenue. The Town could
decide to use the program as an opportunity to assist in the
installation of another communications service provider to
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