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MEMORANDUM
Date:
November 16, 2009
To:
Darryl Richard
Project Manager - Transportation
From:
Teresa Polaski, Deputy Clerk
Minutes & Records Department
Re:
FPL Underground Facilities Conversion Agreement
Enclosed please find three Originals ofthe document as referenced
above, Agenda Item #16B3, as approved by the Board of County
Commissioners on Tuesday, November 10, 2009.
Please forward for additional signatures and return a fully
executed original back the Minutes and Records Department for
the Board's Official Records.
If you should have any questions, please contact me at 252-8411.
Thank you.
Enclosure
1683
1683
Third Revised Sheet No. 9.720
Cancels Second Revised Sheet No.9. 720
FLORIDA POWER & LIGHT COMPANY
UNDERGROUND FACILITIES CONVERSION AGREEMENT (NON-GAF)
This Agreement, is made and entered into this /Olh day of !I/0/lemht/20~ by and between the
_Vanderbilt Beach Beautification Municipal Service Taxing Unit, by and through its goveming body, the Board of
Commissioners for Collier County, Florida (hereafter, "Vanderbilt MSTU"), the Board of Commissioners for Collier County,
Florida (hereafter, "Applicant"), with an address of 3301 Tamiami Trail, East, Naples, Florida and FLORIDA POWER &
LIGHT COMPANY ("FPL"), a Florida corporation with an address of P.O. Box 14000,700 Universe Boulevard, Juno Beach,
FL 33408-0429.
WHEREAS, the Applicant has requested that FPL convert certain overhead electric distribution facilities located within the
following boundaries (the "Conversion"):
_Along the west end of Channel Drive, in Naples, Florida (Vanderbilt Beach MSTUL (collectively, the "Existing Overhead
Facilities") to underground facilities, including transformers, switch cabinets and other appurtenant facilities installed above
ground as set forth in Attachment A hereof (collectively, the "Underground Facilities").
NOW THEREFORE, in consideration of the foregoing premises and the covenants and agreements set forth herein, and other
consideration the sufficiency of which is hereby acknowledged, the parties intending to be legally bound, hereby covenant and
agree as follows:
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Avoided Storm Restoration Cost ("ASRC") Eligibility Criteria. The Applicant represents and warrants that it meets,
and is capable and willing to enforce, the applicable eligibility criteria for the Conversion (select one of the following
ASRC Tiers):
U ASRC Tier 1:
a. In order for the Conversion to incorporate a sufficient amount of overhead facilities to provide electrical
continuity, the Conversion must include a minimum of approximately 3 pole line miles or approximately 200
detached dwelling units within contiguous or closely proximate geographic areas (the "Conversion Area").
The Conversion may be completed in mutually agreed upon phases, with the project size minimums applying
to the aggregate project - provided that any necessary subsequent phase begins within a I year period from
completion of the prior phase and the minimums are met within, at most, 3 phases; and
b. The Applicant must require all customers within the Conversion Area who currently have overhead service
directly from the Existing Overhead Facilities to convert their service entrances to underground within 6
months of completion of the Underground Facilities installation or each phase thereof; and
c. If the Applicant requests that facilities be placed in the ROW, the Applicant must be willing and able to
execute a right of way ("ROW") agreement with FPL or secure a ROW agreement through the appropriate
local govemment(s) with FPL; and
d. For any affected laterals, the complete lateral must be converted, including all stages of any multi-stage lateral;
and
e. There are no state or federal funds available to the Applicant to cover any portion of the cost of the
Conversion.
Special Circumstances. Conversions which do not meet the Tier I project size minimums described in section l.a
are eligible for the ASRC in the following special circumstances:
i. An island or peninsula where 100% ofthe Existing Overhead Facilities are to be converted; or
Ii. When the aggregate size of the frrst 3 phases ofa project would satisfY the minimum size criteria but, for
mutually-agreed engineering or logistical reasons, those phases are non-contiguous; provided that (a) the
next (4th) phase must be adjacent to one or more of the first 3 phases such that the combined contiguous
area meets the minimum size criteria, and (b) this 4th phase begins within I year from completion of the
3rd phase.
(Continued on Sheet No. 9.721)
Issued by: S. E. Romig, Director, Rates and Tariffs
Effective: November 13, 2008
16B3
FLORIDA POWER & LIGHT COMPANY
Original Sheet No. 9.721
(Continued from Sheet No. 9.720)
U ASRC Tier 2. All eligibility criteria remain the same as Tier I with the exception that the Conversion Area must only
include between approximately 1 to 3 pole line miles or a minimum of approximately 85 detached dwelling units within
contiguous or closely proximate geographic areas.
(!) ASRC Tier 3. A Conversion Area that is less than I pole line mile within contiguous or closely proximate geographic
areas. Additionally, Tier I requirements for project completion timing in paragraph l.a., as well as, paragraphs I.b. and
I.d. do not apply.
2. Contribution-in-Aid-of-Construction (CIAC). The Applicant shall pay FPL a CIAC as required by FPL's Electric Tariff and
Section 25-6.115 of the Florida Administrative Code.
i. CIAC (excluding ASRC) $_24,465
ii. ASRC $_ 1,223
iii. CIAC Due $ 23.242 ( FPl , nerform!il all work)
In the event the actual cost of the Conversion (excluding ASRC) exceeds the estimate, the CIAC (excluding ASRC) shall be
adjusted by the lesser of (a) the difference between the actual cost of the Conversion and the estimate, or (b) 10% of the CIAC
(excluding ASRC) identified above. The ASRC shall also be adjusted accordingly and the Applicant shall pay FPL the
resulting difference in the amount of the CIAC Due.
3. Applicant-Installed Facilities. The Applicant may, upon entering into an applicant-installed facilities agreement satisfactory
to FPL, construct and install all or a portion of the Underground Facilities. Such work must meet FPL's construction
standards and FPL will own and maintain the completed facilities. The Applicant agrees to rectify any deficiencies, found by
FPL, prior to the connection of any customers to the Underground Facilities and the removal of the Existing Overhead
Facilities.
4. Compliance with Tariff. The Applicant agrees to comply with and abide by the requirements, terms, and conditions of FPL's
Electric Tariff.
5. Timing of Conversion. Upon compliance by the Applicant with the requirements, teons, and conditions of FPL's Electric Tariff,
this Agreement and any other applicable agreements, FPL will proceed in a timely manner with the Conversion in accordance
with the construction drawings and specifications set forth in Attachment A hereof.
6. Relocation. In the event that the Underground Facilities are part of. or are for the purposes of, relocation, then this Agreement
shall be an addendum to the relocation agreement between FPL and the Applicant. In the event of any conflict between the
relocation agreement and this Agreement or the Electric Tariff, this Agreement and the Electric Tariff shall control.
7. Term. This Agreement shall remain in effect for as long as FPL or any successor or assign owns or operates the Underground
Facilities.
8. ASRC Repayment. If the Applicant does not satisfY the relevant eligibility criteria, the Applicant shall repay the ASRC within
30 days of written notice from FPL of such failure. Additionally, if at any point within 30 years of completion of the
Underground Facilities installation, the Applicant elects to have electric service within the Conversion Area supplied by a
provider other than FPL, the Applicant shall repay FPL a pro-rata share of the ASRC. The pro-rata share (which shall reflect
partial years) shall be determined as follows:
ASRC * [(30 - years since the Underground Facilities completion date) / 30]
Non-govemmental Applicants. whose CIAC includes a Tier I or Tier 2 ASRC, shall provide, at the time of execution of this
Agreement, either a surety bond or irrevocable bank letter of credit (the "Security Instrument") in a form acceptable to FPL
evidencing ability to repay the ASRC. This Security Instrument shall remain in effect until such time as all customers within the
Conversion Area are converted. The Applicant may provide either an amended or replacement Security Instrument in a fonn
acceptable to FPL at any time to reflect the pro-rata adjustments to the ASRC amount. If, upon notice of cancellation or prior to
expiration of the Security Instrument, a replacement Security Instrument in a form acceptable to FPL is not provided by the
Applicant to FPL, FPL will require the third party issuing the Security Instrument to pay the full balance due in accordance with
this Agreement in cash.
(Continued on Sheet No.9. 722)
Issucd by: S. E. Romig, Dircctor, Rates and Tariffs
Effective: Novemher 13, 2008
1683
FLORIDA POWER & LIGHT COMPANY
Original Sheet No.9. 722
(Continued from Sheet No. 9.721)
9. Termination Prior to the Conversion Completion. Failure by the Applicant to comply with any of the requirements,
terms, or conditions of this Agreement or FPL's Electric Tariff shall result in termination of this Agreement. The
Applicant may terminate this Agreement at any time prior to the start of the Conversion and the CIAC paid by the
Applicant will be refunded to the Applicant; provided however, that the refund of the CIAC shall be offset by any costs
incurred by FPL in performing under the Agreement up to the date of termination.
10. Assignment. The Applicant shall not assign this Agreement without the written consent of FPL.
11. Adoption and Recording. This Agreement shall be adopted by the Applicant and maintained in the official records of
the Applicant for the duration of the term of this Agreement. This Agreement also shall be recorded in the Official
Records of the County in which the Underground Facilities are located, in the place and in the manner in which deeds are
typically recorded.
12. Conllict between Terms of Franchise Agreement. In the event of a conflict between the terms of this Agreement and
any permit or franchise agreement entered into by Applicant and FPL, the terms of this Agreement shall control.
IN WITNESS WHEREOF, FPL and the Applicant have executed this Agreement on the date first set forth above.
For and on behalf of the
V ANDERBIL T MSTU Advisor
;)
Name CltAJ?LE5 C, ARTlfaR,
Title Clfltll? III AN
FPL:
Signed
Signed
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.
Name
Title
.--, .,..
j:"'"'j..'eer ...
By and through COLLIER COUNTY, FLORIDA
as the LOCAL VERNMEN2an . in its capacity
as the gover ody of the V AND RBIL T MSTU:
Signed ~ ~
'_liP!:-,
Name nnnn~ ~1~1~
. ~"': I
K.~LERK
.~ \
. '". ~,
. "1' .~. ','"
.t_JoiN~':', '~.,.~ frtW;j ,
...~ VIR'>> .
Title
Chairman
Approved as to Terms and Conditions (if required by Applicant)
Signed
Name
Title
Signed
lciency (if required by Applicant)
Approved a
Name
-U.."L.
Issued by: S. E. Romig, Director, Rates and Tariffs
Effective: November 13, 2008