BRADENTON BEACH – The city’s Gulf Drive utilities undergrounding project is facing an unanticipated potential funding shortfall of about $365,000.
On Thursday, June 3, City Attorney Ricinda Perry discussed the matter with city commission members, some of whom were already aware of the potential financial crisis.
As she did on the previous Bridge Street undergrounding project, Perry is serving as the city liaison for the current Gulf Drive undergrounding project that extends from the south end of the city, near Longboat Pass, to Sixth Street South. The project also includes the utility lines being undergrounded along those connecting side streets. As he did on the Bridge Street project, Mark Porter is again providing consulting services for the Gulf Drive project.
The city’s undergrounding project is being funded by a $2 million state appropriation and the state-imposed deadline to complete the project is June 30.
During the preliminary stages of the Gulf Drive project, the city requested a non-binding cost estimate from Florida Power & Light (FPL) for that company’s portion of the project costs, which include removing the existing power lines and power poles.
According to Perry, FPL’s non-binding cost estimates came in between $360,000 and $390,000, but on May 17 she received a binding cost estimate from FPL for $1,187,029.
“There is no way we have funds to pay that price,” Perry said.
Perry said FPL attributed the higher price to the fact that FPL replaced the old wooden power poles with concrete power poles when hardening those lines approximately six years ago. Perry said FPL did not account for the concrete poles when making its binding cost estimate. She said FPL representatives admitted the mistake but said little could be done to lower the costs established by tariffs implemented by the Florida Public Service Commission. According to FPL representative Ray Dowling, the tariffs establish the fixed rates FPL charges for specific tasks such as removing power lines and power poles.
Perry said the Verizon lines are expected to come down in two weeks, the Comcast lines are expected to come down in four to five weeks and FPL will not remove its power lines and poles until the city pays the amount cited in the binding estimate.
Perry told the commission she requested assistance from State Rep. Will Robinson Jr. and lobbyist Dave Ramba. Perry said Robinson told her there’s no money in the state budget to further assist the city. Perry said Dowling told her there was nothing more FPL could do and the city or the state would simply have to find the additional funds.
Possible solutions
On May 20, Perry received an adjusted estimate from FPL for $907,038 which included a rebate on materials and an additional discount for doing a total of at least three miles of undergrounding now or in the future. As of May 25, Perry was able to reduce the FPL costs to $856,036.
“This is just for their engineering, materials and wrecking lines,” Perry said. “I must complete that $2 million appropriation. If I don’t, the risk is we have to pay it back to the state. That will bankrupt my city.”
Perry said Wilco Electrical is being paid $827,000 for its portion of the project, Spectrum is being paid $100,000, Verizon is being paid $110,000, the underground boring costs are $131,000 and there are additional costs and consulting fees. She said she anticipates receiving additional discounts from the other contractors and companies involved with the project.
Perry said the project calls for the removal of 89 power poles and FPL has given the city the option of not removing 60 of those poles.
“If we cut those out of the project, I will come within the cost estimate they have given to me. The problem I have with that is I’ve used state funds to build those lines. How could I ever pass a budget audit with the state saying I put your money in the ground but I’m not actually going to take out the lines? That’s not a solution. I need to complete the project,” Perry said.
Perry said she’s looking at other options, including the elimination of other projects that were to be funded with excess beach concession funds previously approved by the Manatee County Commission. Perry said the city previously planned to use approximately $294,000 in excess beach concession funds granted by the county to help fund a bike trial, install signage and lighted crosswalks and/or make improvements to the Old Town Tram program.
“If we are allowed to use that funding and cannibalize those projects, I can probably make the shortfall that exists from FPL’s malfeasance. I know we don’t have money in the general reserve and we cannot afford to not complete the project. I need the commission to authorize me to use the concessionaire funds that appear to be available for this type of use,” Perry said, noting that county approval also would be needed.
Perry said City Clerk Terri Sanclemente and City Treasurer Shayne Thompson recently told her there are no additional unallocated funds available in the current fiscal year budget.
Commissioner Jake Spooner asked if the city could take out a bond or arrange a 10-year payment plan with FPL if all else fails.
The commission agreed to let Perry pursue the available options and Chappie said he would schedule an emergency meeting if needed.
