In 2006, the Town of Palm Beach commissioned a study titled “Conversion of Aerial to Underground Utilities Analysis” by “R.W. Beck, Inc.”. This study aimed to “perform a high-level review of the current cost estimates the Town is utilizing in its analysis (Project)”. At the time, the estimated cost for the undergrounding effort was “roughly $60.3 million”. The current estimate for this undertaking is estimated at $90 million by the Town.

This study did not trigger a Town-wide conversion process. In the following few years up to the present times, each neighborhood decided to perform undergrounding projects on an “as requested” basis. While the pace of this effort has varied from year to year, it has yielded a handful of completed projects, and a couple more are currently in progress. Worth Avenue’s reconstruction also received the benefit of this approach. These smaller isolated projects have typically started with the efforts of a single motivated resident (The Champion). The Champion would then attempt to garner the support of his/her surrounding neighbors, and through coordination with Town staff, a logical project boundary would be determined. From that point, if two-thirds of the residents within that boundary voted to go forward, the Town would proceed with the planning/design and construction process. The design and construction cost would then be assessed to all the residents of that particular street based on a model designed by “Willdan Financial Services” in October 2009 titled “Town of Palm Beach Utility Undergrounding Assessment Methodology.” That model determined a group of weighted factors that could be applied to each property within the Town. While these projects have been successful, they have been on such a small scale that they have little effect on the overall appearance and utility reliability of the Town. A more comprehensive approach was needed.

In recent years, the town's residents have been increasing their motivation to expand the undergrounding program to cover larger areas. This movement culminated in the October 14, 2014, Town Council meeting, where FPL presented the need to improve or “harden” large portions of the Town’s existing overhead utilities. That hardening effort, triggered by FPL’s recognition of their facilities’ conditions, would include replacing many existing wood power poles with larger and taller concrete power poles. Within the context of previous and ongoing conversations between the residents, Council members, staff, and consultant(s) regarding a more “regionalized rather than local” approach to undergrounding the Town, the hardening proposal by FPL became an added impetus to view the large scale undergrounding as an alternative whose time had perhaps come.

After in-depth deliberations, the Town Council unanimously decided to pursue Town-wide undergrounding. A ballot question regarding the financing of the Town-wide project was approved in March 2016, and the master planning and design work are underway.

The work to convert to underground facilities is not as intrusive as one might think, thanks to major advances in the use of horizontal directional drilling (HDD) equipment, which greatly reduces the amount of disturbance in the construction zone.

Transformers

• Transformers will be placed on the ground atop a concrete pad at locations depending on electrical demand and their current overhead location. A small easement may be necessary at each location to place the transformer if the unpaved portion of the right-of-way cannot be used for the same.

Lateral Lines

• Before construction begins, a review is undertaken at each property to determine the current point of service, the location where the lateral line from each home connects to the utility company distribution line out by the street, to ensure it is up to code or if there is any need for the location to be changed. The need for this to be changed is rare because, since 1982, the Town has required all individual service laterals to be underground. This review ensures we know where the point of service is or will be so that if any work associated with the lateral location is required, this can be planned for and done in a timely manner in keeping with the construction schedule.

Horizontal Directional Drilling

• The first step in the construction process will begin with construction equipment and materials, such as conduit, being placed at a “laydown” area to be determined. At each location where there will be a new ground-mounted transformer if the unpaved portion of the right-of-way cannot be used, the contractor cuts the street pavement to remove it and then digs a small pit. The same is done at the location of the next transformer north or south of the first location, depending on which direction the contractor chooses to work. The HDD equipment, about the size of a small sub-compact automobile, is then brought to the site of the first pit to drill a pathway under the street pavement from one pit to the next, wherein the conduit for utility lines will be run. Once the conduit is installed, it is capped, and the process described continues down the street until it is finished.

Connecting the Lines

• Upon completion of the conduit installation, the contractor begins running the lines in the conduit, connecting the lines to the transformer, and then from the transformer to the point of service at your home. Until now, your property will have received service from the overhead facilities. Once connected to the new underground network, you will no longer receive electric service from the overhead facilities. This switchover takes a couple of hours to complete at each residence. You will have no service during this time so the work can be done safely. The date and time of the switchover will be made known to you in advance so that you can plan accordingly.

Removal of Overhead Lines & Poles

• Once the switchover to the new network is complete and the overhead facilities are no longer in use, FPL crews are called upon to remove all overhead lines, transformers, and poles. Upon completion, the contractor, or the chosen landscaping subcontractor, begins restoring landscaping in easements or the right-of-way to screen the transformers acceptably, unless the property owner prefers to do it.

Punch List and Completion

• When the landscaping is completed, and the contractor has met all terms and conditions of his contract with the Town, including correcting any punch list items noted in the final inspection, the underground conversion will be completed. At this point, if the contractor had to cut the road to provide service, those roads that were cut would have been milled and resurfaced in accordance with town requirements. Repaving at this time is predicated upon all planned public utility upgrades being completed if their renewal or replacement is determined to be required at this time.

Special Assessments

The Town of Palm Beach has utilized the special non-ad valorem assessment process, as enumerated in Florida Statute 197.3236, for the two neighborhood projects identified above, as well as the streetscape projects on Worth Avenue and in the 400 block of Peruvian Avenue. The law allows the town to initiate the assessment process for town capital projects the Town Council deems appropriate for the assessment process or for neighborhood capital projects desired by residents to be undertaken by the Town on their behalf.

Cost to the Property Owner

As stated earlier, this is a capital project assessment process. This means, among other things, that the benefiting property owners are charged for their share of the cost of the work. This process results in the share of the project costs being placed on annual property tax bills, but it is not a tax, it is an assessment. The property tax bill is simply a billing mechanism the town uses to avoid creating a separate internal billing and collection function to handle payments.

Billing Mechanism

The Town of Palm Beach reserves the right to select the manner in which property owners will be charged for the cost of the proposed capital project. Baring unusual circumstances, the billing mechanism to be utilized will be the uniform method for levying, collecting and enforcing non-ad valorem special assessments as authorized by Section 197.3632, Florida Statutes. As such, charges to property owners may appear on one’s property tax bill for up to 10 years or more. This billing mechanism is subject to change in the sole discretion of the Town Council.

Capital assessment projects requested by residents are only constructed pursuant to industry and/or town standards. The final actual costs incurred by the town are the basis for what a property owner repays to the town regardless of any cost estimate provided in association with the project.

Please click on the following links to view videos related to this important work.

• Everglades Island Before/After Video
• Horizontal Directional Drilling: Video 1
• Horizontal Directional Drilling: Video 2