July 4 is a month away and Bradenton Beach is seeing skyrockets.
And the ongoing project to bury utilities in Bradenton Beach has come to a halt.
Commissioners learned from city attorney Ricinda Perry at a June 3 meeting that Florida Power and Light Co.’s cost to complete its portion of the project is 330% over the estimate provided two months ago.
FPL put the cost at $1,187,929 May 17 but, a month earlier, April 16, the estimated cost was $365,984.
The project involves removing overhead power lines and poles along Gulf Drive and installing the utilities underground.
According to Perry, the increase arose from an error in FPL’s calculations for the value of the utility poles.
FPL claims it did not realize the city had previously installed new poles and hardened the lines, Perry said.
The city is funding the project with $2 million from the state. Beyond FPL lines, the project was designed to include other utilities and contractors, including Verizon, Spectrum and Wilco Electrical.
The city cannot terminate the project and it must be completed by June 30, per the state funding agreement.
Perry, who was appointed as project manager, told commissioners that she told FPL that if she doesn’t complete the project, there’s a risk the city would have to repay the state.
Perry told city commissioners that she told FPL, “That will bankrupt my city.”
She said she negotiated with FPL to reduce the cost as of June 3 to $856,836.
Others are willing to reduce their fees, bringing the total amount over budget to $334,073.49, Perry said.
Perry also suggested the city could use concessionaire funds to pay in part for undergrounding. The city has $290,040 in concession funds from excess revenues for leased operations at Manatee Public Beach and Coquina Beach.
However, reallocating the funds would require the city to terminate other projects.
Also, the cities must receive permission from Manatee County and the other cities to use the concession funds, and any proposed projects must benefit all of Anna Maria Island.
The total estimated cost of the undergrounding project is $2,334,073.49. Before FPL’s price increase, the total cost was $1,919,310.49.
FPL said it could not further reduce the amount owed by the city because it is bound by tariffs that must be paid to the public utility commission.
Perry said suing FPL is an option, but she advised against litigation, citing the need to work with FPL on other projects, legal fees and delays for the project.
Commissioner Jake Spooner suggested asking FPL to accept a payment plan.
City commissioners directed Perry to work toward a solution, including a payment plan with FPL, as well as exploring other funding options, such as applying for the concession funds.
BB undergrounding project
The state awarded $2 million to Bradenton Beach to bury utilities along Gulf Drive. Here’s a look at the estimated costs:
April 16 June 3
UCoF: $131,157 $99,568
Spectrum: $104,483.49 $104,483.49
Verizon: $109,054 $109,054
FPL: $365,984 $856,836
Survey: $ 20,000 $7,500
Wilco: $824,712 $824,712
JM: $123,920 $131,920
Restoration: $35,000 $35,000
Street Lighting: $155,000 $140,000
ETC: $50,000 $25,000