Undergrounding Utility Workshop February 19, 2019

MINUTES UNDERGROTINDING UTILITY WORKSHOP KEY BISCAYNE, FLORIDA TUESDAY, FEBRUARY 19, 2019 COUNCIL CHAMBER 560 CRANDON BOULEVARD 1. CALL TO ORDER/ROLL CALL OF MEMBERS: The workshop was called to order by the Mayor at 6:00 p.m. Present were Councilmembers Luis Lauredo, Edward London, Brett G. Moss, Kathleen Petros, Ignacio Segurola, Vice Mayor Allison McCormick and Mayor Michael W. Davey. Also present were Village Manager Andrea Agha, Village Clerk Jennifer Medina, Village Attorney Stephen Helfman, Village Chief Financial Officer, Chris Wallace, as well as, the Undergrounding Task Force Committee members, sitting as panelists, Michelle Estevez, Michael Bracken, Billy Kimball, Donald Elisburg, Martin F. Cohen, Fernando Vasquez and Servando Parapar. The following panelists were also present: Josh Horning, Kimley Horn and Associates, Inc.; Habib Isaac, Raftelis; Alicia Gonzalez, Media Relations Group; John Lehr, Florida Power & Light; and Thomas Bradford, Former Manager of the Town of Palm Beach 2. PLEDGE OF ALLEGIANCE: The Mayor led the pledge of allegiance. 3. OPENING REMARKS BY UNDERGROUNDING UTILITY TASK FORCE CHAIR & VILLAGE MANAGER: The Mayor addressed the public and the Council regarding the purpose of the workshop. Michelle Estevez, Chairwoman to Undergrounding Utility Task Force Committee, addressed the public regarding an overview of the proposed undergrounding utility project, a summary of the plan and the assessment methodology. At this time, the Manager addressed the public regarding the proposed Undergrounding Utility

February 19, 2019 Master Plan. 4. PUBLIC COMMENTS: The following residents addressed the panelists: John Festa, 695 Harbor Lane; Christina Bracken, 224 West Mashta Drive; Robert Vernon, 475 Ridgewood Road; Gary Gross,2ll Island Drive; Jorge Mendia, 111 Island Drive; Tony Camejo, 15i Crandon Boulevard; Luis de la Cruz,640 Allendale Road; Mayra P. Lindsay, 365 Westwood Drive; Pat Woodson,472 Warren Lane; Nancy Elisburg, 177 Ocean Lane Drive; JoAnn Young, 600 Harbor Drive; Robert Duzoglou, 328 Crandon Boulevard and Alan Fein, 525 Allendale Road. 5. PRESENTATION BY THE VILLAGE MANAGER: VILLAGE.WIDE UNDERGROUNDING OF UTILITIES: The Manager presented the following: o Village's vulnerabilities as it relates to undergrounding utilities; . comparison between the hardening of the lines versus undergrounding utilities; o benefits of undergrounding- aesthetics, reliability and safety; o disadvantages of undergrounding- outages generally take longer to diagnose and construction disruption; o FPL process timeline- proposed undergrounding utility project estimated completion date of2026; o Undergrounding Utility Master Plan Segments: Executive SumffiârY, Project Goals, Existing Utility System Overview, Data Collection, Phasing and Sequencing, Project Delivery Methods, Risk Assessment, Transportation Management Plan, Public Outreach Program, Website for Proposed Undergrounding Utility Project, Overall Program and Projected Project; o policy decision to proceed or not to proceed with the project and considering the funding structure; o opinion of probable cost comparison; o funding options are a General Obligation Bond (GOB), debt, Millage Rate increase and a Special Assessment; o project funding financing scenarios. 6. PANELIST DISCUSSION MODERATED BY THE VILLAGE MANAGER: ThE panelists addressed the public regarding the proposed undergrounding utility project. At this time, Habib Isaac, Raftelis, addressed the public regarding the funding options There was extensive discussion by Council regarding the proposed funding options. At this time, the Mayor thanked the panelists and the Undergrounding Utility Task Force members for their participation and dedication throughout this process. 7. ADJOURNMENT: The meeting was adjourned at 9:09 p.m. 2of2

February 19, 2019 Re sp e ctfully s ubmitte d : e- Clerk IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE WLLAGE COUNCIL II4TH RESPECT TO ANY MATTER CONSIDERED AT A MEETING OR HEARING, THAT PERSON WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SUCH PT]RPOSE, MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EWDENCE UPON WHICH THE APPEAL IS TO BE BASED. 3 of 2

UNDERGROUNDING UTILITY WORKSHOP TUESDAY, FEBRUARY 19, 2019 6:00 PM 1. CALL TO ORDER/ROLL CALL OF MEMBERS 2. PLEDGE OF ALLEGIANCE 3. OPENING REMARKS BY UNDERGROUNDING UTILITY TASK FORCE CHAIR & VILLAGE MANAGER 4. PUBLIC COMMENTS 5. PRESENTATION BY THE VILLAGE MANAGER: VILLAGE-WIDE UNDERGROUNDING OF UTILITIES 6. PANELIST DISCUSSION MODERATED BY THE .........TAB 1 VILLAGE MANAGER • JOSH HORNING, PE, KIMLEY HORN AND ASSOCIATES, INC. • HABIB ISAAC, RAFTELIS • ALICIA GONZALEZ, MEDIA RELATIONS GROUP • JOHN LEHR, PE, FLORIDA POWER AND LIGHT • THOMAS BRADFORD, FORMER MANAGER OF THE TOWN OF PALM BEACH • CHRIS WALLACE, CHIEF FINANCIAL OFFICER, VILLAGE OF KEY BISCAYNE • STEPHEN J. HELFMAN, ESQ., VILLAGE ATTORNEY 7. ADJOURNMENT I. ANY PERSON WISHING TO ADDRESS THE VILLAGE COUNCIL ON AN ITEM ON THIS AGENDA IS ASKED TO REGISTER WITH THE VILLAGE CLERK PRIOR TO THAT ITEM BEING HEARD. PRIOR TO MAKING A STATEMENT, PLEASE STATE YOUR NAME, ADDRESS AND IF ENGAGED IN LOBBYING ACTIVITIES FOR THE RECORD. II. IN ACCORDANCE WITH VILLAGE CODE SECTION 2-161, ADOPTING SECTION 2-11.1(s) OF THE MIAMI-DADE COUNTY CODE, ANY PERSON ENGAGING IN LOBBYING ACTIVITIES, AS DEFINED THEREIN, MUST REGISTER AT THE VILLAGE CLERK’S OFFICE BEFORE ADDRESSING THE COUNCIL ON THE ABOVE MATTERS OR ENGAGING IN LOBBYING ACTIVITIES.

III. IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT OF 1990, ALL PERSONS WHO ARE DISABLED AND WHO NEED SPECIAL ACCOMMODATIONS TO PARTICIPATE IN THIS PROCEEDING BECAUSE OF THAT DISABILITY SHOULD CONTACT THE OFFICE OF THE VILLAGE CLERK, 88 WEST MCINTYRE STREET, KEY BISCAYNE, FLORIDA 33149, TELEPHONE NUMBER (305) 365-5506, NOT LATER THAN TWO BUSINESS DAYS PRIOR TO SUCH PROCEEDINGS. IV. IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE VILLAGE COUNCIL WITH RESPECT TO ANY MATTER CONSIDERED AT A MEETING OR HEARING, THAT PERSON WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SUCH PURPOSE, MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED (F.S.286.0105).

TAB 1

Undergrounding of Utilities Village-Wide VILLAGE OF KEY BISCAYNE MasterPlan www.kbunderground.com

2VILLAGE OF KEY BISCAYNE UNDERGROUNDING OF UTILITIES — MASTER PLAN

i Table of Contents Chapter 1 – Executive Summary................................................................1 Chapter 2 – Introduction and Project Goals .............................................. Chapter 3 – Existing Utility System Overview ............................................ Chapter 4 – Data Collection ...................................................................... Chapter 5 – Design Criteria and Conceptual Design Description .............. Chapter 6 – Phasing and Sequencing ....................................................... Chapter 7 – Project Delivery Methods ....................................................... Chapter 8 – Risk Assessment ................................................................... Chapter 9 – Transportation Management Plan.......................................... Chapter 10 – Public Outreach Program ..................................................... Chapter 11 – Overall Program Opinion of Schedule ................................... Chapter 12 – Overall Program Opinion of Probable Construction Cost......

iiVILLAGE OF KEY BISCAYNE UNDERGROUNDING OF UTILITIES — MASTER PLANKey Biscayne

EXECUTIVE SUMMARY Village Council decided that FPL’s storm hardening would have a negative impact on the Village’s aesthetics. Considering those impacts along with the reliability benefits, Council decided that a conversion of the overhead utilities to an underground location, also known as undergrounding, should be pursued. The conversion from overhead to underground facilities will improve the safety, reliability, and aesthetics of the Village’s electric and communications infrastructure. In 2006 the Florida Public Service Commission (PSC) voted to amend the Florida Administrative Code to require investor owned utilities (IOU) to file comprehensive storm hardening plans. These plans included storm preparedness initiatives including the hardening of existing transmission structures. Storm hardening is the upgrading of electrical facilities, as well as maintenance practices, so they are better able to withstand extreme weather. Storm hardening of overhead utilities includes: ƒ replacement of wood poles with concrete or steel poles ƒ addition of guy wires for pole support ƒ addition of poles to decrease the span between poles Florida Power & Light (FPL) has implemented these measures in many municipalities as these initiatives were rolled out state wide. In the Spring of 2017, Village Council took the first step in the undergrounding process and approved to move forward with a publicly advertised RFQ, which would initiate the process of finding a consultant to prepare a Master Plan to map out the underground conversion to its completion. This master plan will provide a guide for the design and implementation of the undergrounding program. It also provides guidance on how to balance and manage priorities, such as cost, project duration, traffic impacts, and other capital improvement needs for this ambitious project. This master plan summarizes the following activities and recommendations: ™ Data Collection ™ Design Criteria and Conceptual Design Description ™ Phasing and Sequencing Plan ™ Traffic Management Plan ™ Risk Assessment ™ Opinion of Schedule ™ Opinion of Probable Cost ™ Project Delivery Methods ™ Public Outreach Program Data Collection The Village of Key Biscayne is provided with electric service through redundant subaqueous crossings of transmission lines below Biscayne Bay from the mainland to Key Biscayne’s substation. Communication services are routed from the main land over the Rickenbacker Causeway and then underground along Crandon Boulevard to the Village where they are then converted to aerial lines mounted to wood or concrete poles shared with electrical lines. There are approximately 16 pole-miles of overhead infrastructure and 12 miles of underground infrastructure within the Village limits. Much of the overhead utility infrastructure is located in rear yard Chapter 1 1

2VILLAGE OF KEY BISCAYNE UNDERGROUNDING OF UTILITIES — MASTER PLAN easements between street blocks within the single-family residential areas on the west side of Crandon and multi-family areas on the east side of Crandon. Underground infrastructure is often located within the public right-of-way of the Village. Florida Power & Light (FPL), AT&T, and Comcast provided details of their existing infrastructure to plan for their underground conversion. The master plan considers the various aspects that make the Village unique, such as zoning and land use designations, traffic, general topography and soils, types of underground infrastructure that exist, and plans for other future infrastructure improvements. Future infrastructure improvements include projects planned by the Village of Key Biscayne, Miami Dade County Water and Sewer, Miami Dade Traffic, and Hotwire Communications. Each of these considerations play a role in how the overall program will be executed. Design Criteria and Conceptual Design Description Development Through a series of meetings with the Village, FPL, AT&T, Comcast, and other stakeholder utilities, Kimley-Horn assembled general guidelines for design criteria for the undergrounding program. These criteria are intended as guidance for the design of the physical location and placement of conduit and equipment so that consistency in design and construction can be realized over the life of the program. They do not govern the detailed electrical or communications network design that will be performed by FPL, AT&T, and Comcast. Network design by the utility owners will be performed based on their then-current design standards. Utility owners and stakeholders participated in workshops to review design requirements for the proposed underground infrastructure, define significant equipment needs to implement the program, and determine their approximate locations. The Village is currently implementing a street light program to install new light poles and fixtures. The undergrounding project will impact a significant number of street lights within the Village that are currently mounted to FPL- owned utility poles that will ultimately be removed. Street lighting throughout the Village can be replaced with Village owned custom lighting or with FPL owned and maintained light poles and fixtures provided under FPL’s street lighting program, included in their LT-1 Tariff. Phasing and Sequencing Plan Development The master plan provides a recommended phasing and sequencing plan for the implementation of the undergrounding program. This plan provides overall guidance of timing and sequence, but adjustments may be needed in the future to account for changes in technology, various utility and stakeholder requirements, and changes with other work programs within the Village during the implementation of the undergrounding program. Timing and sequencing should be reviewed at the time of design for each phase so any necessary adjustments can be made. The program is proposed to contain four phases. In an effort to accelerate the implementation schedule each phase may contain separate sub- phases or work areas. Each phase is anticipated to have a construction duration of 18 to 24 months. A new phase will begin construction in each year between 2020 and 2024. This allows for adjacent phases to overlap in their duration, which in turn accelerates the implementation schedule.

31.0 E X E C U T I V E S U M M A R Y In general, phase 1 through 3 work will begin at the south end of the Village and progress north while phase 4 will return to the south and underground Mashta Island and finish up the west side of the Village. This plan also provides recommendations related to the timing of major infrastructure projects performed by the Village and outside entities in an effort to minimize community impacts and take advantage of potential cost saving efficiencies. Traffic Management Plan Development A Transportation Management Plan (TMP) was developed to coordinate traffic impacts related to both the undergrounding program and other known significant infrastructure projects to minimize impacts to the residents and businesses. Based on the recommended phasing and the sequencing plan, Kimley-Horn assessed the potential traffic impacts from construction of each phase of the project. The TMP sets forth overall guiding principles (general guidelines) for use by the Village and affected contractors during the implementation of the undergrounding program. The TMP may evolve over time, but its current role is to assist in the development of the design of construction phasing plans, traffic control plans, and project specification documents, and to facilitate discussions between the Village, designers, utility owners, contractors, and other key stakeholders related to traffic impacts. It is a tool to better coordinate construction traffic impacts as specific permits are applied for by the construction community. Graphical TMP maps for each phase of the undergrounding program, along with general traffic control guidelines for the program, were developed and are contained in this master plan. Risk Assessment Risks are involved with any project, and a project of this magnitude is no exception. These risks can impact the project schedule and/or the project budget. By identifying these risks ahead of time, steps can be taken to mitigate them. An assessment of known risks to budget and schedule, both in terms of the design phase and construction phase, was made in order to identify these risks and take steps to mitigate them.

4VILLAGE OF KEY BISCAYNE UNDERGROUNDING OF UTILITIES — MASTER PLAN Opinion of Schedule Based on the Phasing and Sequencing Plan, an opinion of schedule was developed to better understand how each individual phase of the program would interact with each other during the implementation process. Schedule considerations were developed through discussions with the Village, area contractors with expertise in undergrounding, our experience with recent undergrounding projects, and the utility owners. Construction activity durations are based on reasonable production rates from area contractors with undergrounding expertise. Combining these production rates with mass quantities for the project that were developed as a part of the opinion of cost development yielded significant activity durations that were then incorporated into the overall schedule. Utility design timeframes experienced on other projects currently underway were also considered. Appropriate schedule contingencies were also applied to account for normal weather impacts, potential geological challenges (rock), and unforeseen conditions. The program schedule began in February 2018 with the development of this master plan. Subsequent to design of Phase 1, construction activities are expected to begin in the summer of 2020. Construction durations for each phase range from 18 to 24 months depending on the quantity of work to be performed and complexity of each Phase. To accelerate the work, the construction schedule for each phase overlaps the previous adjacent phase construction schedule by six months to one year. The overlap of the construction activities in each phase is subject to conduit installation being complete in the previous phase prior to allowing conduit installation activities to begin in the subsequent phase. This is done primarily to mitigate traffic impacts. There is an opportunity to compress the schedule further by splitting each phase up into two work areas, however, any further compression will be contingent on the utility company design schedules and easement acquisition timeframes. The final six months of the construction activity schedule for each phase is reserved for overhead infrastructure demolition. It is not expected that this will be a continuous construction activity. Experience with similar projects has shown that the coordination required with FPL, AT&T, and Comcast can be time consuming and they need to work sequentially rather than concurrently to remove facilities. Therefore, this activity requires a certain duration of time to be accomplished. Based on our opinion of schedule, all areas of the Village are anticipated to be converted underground by the end of 2025. Final pole removal is anticipated to be completed by the end of the first quarter in 2026. The schedule does contain time contingencies for normal weather impacts, rock conditions, and typical unforeseen conditions. It does not account for significant schedule impacts related to significant weather events that cause the utility owners to focus efforts on storm recovery rather than undergrounding. It also does not consider significant contractor issues related to litigation, bankruptcy, non-performance, and the like because these types of issues are impossible to predict. 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.

51.0 E X E C U T I V E S U M M A R Y 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 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. Project Delivery Method Recommendation The Village’s undergrounding program is a very large and complex infrastructure program that will be implemented in a phased manner over the next four to six years. It may include not just the undergrounding but roadway and stormwater improvements, water main replacement, and landscaping upgrades. In developing recommendations for project delivery methods for each of phases, the risks to schedule, level of service expectations, and cost must be carefully considered. The more improvements you include in the program the higher the risk. If any single- phase falters in any of those three areas of risk, the remaining phases of Village of Key Biscayne Overall Program Opinion of Probable Cost Summary - August 2018 Item No. Description Opinion of Probable Cost 1 Overhead to Underground Conversion - FPL $20,660,000 2 Utility Conversion Costs - ATT & Comcast $12,310,000 3 Impacted Street Light Replacement (Village Custom) $1,020,000 4 Engineering/Permitting/Surveying $2,720,000 5 Construction Administration $2,040,000 6 Legal Fees $850,000 7 Public Outreach $410,000 8 FPL Credit - 25% GAF Waiver $(3,300,000) 9 Subtotal Undergrounding Project Costs $36,800,000 10 10% Contingency $3,680,000 11 Inflation $5,870,000 12 Total Undergrounding Project Costs $46,350,000

6VILLAGE OF KEY BISCAYNE UNDERGROUNDING OF UTILITIES — MASTER PLAN the program will be detrimentally affected. For this reason, the project delivery method must balance those risks while yielding the highest probability of project success. Although the delivery method that ultimately gets chosen may depend largely on how much work the Village would like to accomplish as part of the program, this master plan recommends that the Construction Manager at Risk (CMAR ) method of project delivery be used because it yields the highest probability of success for delivering the various phases of the Village’s Undergrounding Program. Public Outreach Program Recommendations The undergrounding project in the Village of Key Biscayne will incorporate a Public Outreach Program to ensure that the community is informed on the process, the benefits, and costs. The Community Outreach Program is a critical part of the public education and transparency efforts. It will create a link between the engineering team, Village staff, elected leaders, the Undergrounding Task Force (UUTF), utility owners, Village residents, and the media. The program will engage and communicate with the community through presentations, print and electronic media, public meetings, and with a Speakers Bureau. Information and communications to the community should be made through a variety of mediums and be performed in a manner that is most suitable for the intended audience. For broad based messaging and project updates, the following methods should be employed: ƒ Project website ƒ Project Facebook page/Twitter postings ƒ Use of the social app, Nextdoor, to connect neighbors and the community ƒ Newsletters or postcards (electronic and printed direct mailers) ƒ Email blasts ƒ Public meetings (including live Tele-Town Hall meetings) ƒ Media releases ƒ Communications hotline (telephone) For messaging related to communicating how the project and individual phases may impact a particular resident or business owner, the communication should be tailored to the specific situation. These situations include communicating information related to specific design and construction activities that specifically affect the individual resident or business owner. The following methods should be employed to communicate with individuals during the design and construction phases: ƒ Direct email, telephone, and/or direct mailings ƒ Neighborhood meetings ƒ Individual meetings with residents/business owners As a lesson learned on prior projects it is recommended that direct mailings be made to inform residents that the contractor will be placing equipment within the right-of-way adjacent to their homes. This enables the project team to get ahead of and coordinate with property owners who may have preference on where the equipment gets located in front of their homes. This minimizes the impact to construction schedule and budget from equipment relocation. Consistent messaging should occur throughout the duration of the program to keep the community informed about the various stages of the process, the progress that is being made, and the goals and milestones that are being achieved. To that end, a brand logo and tag line has been developed so that residents can immediately identify communications related to this project.

71.0 E X E C U T I V E S U M M A R Y

8VILLAGE OF KEY BISCAYNE UNDERGROUNDING OF UTILITIES — MASTER PLAN

9 INTRODUCTION AND PROJECT GOALS Introduction Over the past decade multiple hurricanes have impacted the South Florida area and caused widespread power and communications systems disruptions. In September of 2017, Hurricane Irma made landfall in the Florida Keys as a Category 4 hurricane. Within the Village of Key Biscayne (Village) there were reports of many property owners either without power or communications service for days as utility crews repaired the damage. Similar to many other municipalities in South Florida, these severe weather events prompted the Village to investigate the feasibility of relocating the existing overhead utility infrastructure (