6863-11

Utility Aid Guidelines

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Utility Aid guidelines:

Municipalities, Counties, State Agencies and Authorities may request aid for utility costs directly attributed to a project as authorized by law, O.C.G.A. 32-6-170, by submitting a request to the State Utilities Engineer.

Assistance may be considered for:

• Extreme hardship cases where costs are both unusually high in comparison with the Utility’s operating budget and unforeseen therefore creating an extreme financial burden.
• Major project design or schedule changes late in the plan development process (PDP), thus substantially increasing the funds needed with little time remaining to budget the funds.

It is vitally important for the Department’s project delivery schedule and budget that utility aid requests are presented as early as possible after engineering analysis of the potential relocations and costs have been completed by the Utility to provide a reasonable estimate of the project relocation costs. Aid will not normally be approved if Aid arrangements will delay the project. Aid requests, if not in writing, must be followed up in writing, and shall be signed by the Mayor, Chairman, or Agency Head and shall include the following supporting information so that a decision can be made as expeditiously as possible:

• Summary of the circumstances warranting approval.
• Estimated relocation cost based on the relocation plans.
• Date and circumstances when facilities were installed on state or local right of way.
• Relocation expenses incurred, if any, on any local or state projects in the last 5 years.
• Assistance, loans or grants approved or denied by any source, if any, for the utility for the previous 5 years.
• Amount annually budgeted for relocations on road construction or road maintenance in last 5 years. If no funds are routinely budgeted, explain why not.
• Previous year’s final budget report and audit report.
• Number of customers presently served for each type of utility involved.
• Additional information, if requested.

Approval levels and stipulations:

Greater than 25,000 Customers Department participation will be limited to 60% of the cost of relocation of facilities directly in conflict with construction, excluding betterment, engineering, inspection and administrative costs.

5,000 to 25,000 Customers Department participation will be limited to 100% of the cost of relocation of facilities directly in conflict with construction, excluding betterment, engineering, inspection and administrative costs.

Less than 5,000 Customers Department participation will be limited to 100% of the cost of relocation of facilities directly in conflict with construction, excluding betterment, inspection and administrative cost. The Department may provide final engineering or reimburse the utility for engineering performed with its own staff.

Additional requirement applicable to all aid approvals:

The Department will administer and provide inspection for utility relocations by including the work in the project contract; unless the utility can show that it is cost effective to do otherwise; and, there is a track record to show the utility can perform the work with its own forces, a continuing contractor or by letting the work to bid. In addition, if the Utility administers the relocations, it must indemnify the Department from any delay damages that may be incurred by the Department’s contractor.

Temporary Utility-Aid guidelines:

Department funding policy requires that arrangements are completed for utility relocations prior to award of the project. Local funding constraints may prevent confirmation of these arrangements at the time of the letting even though funds will be available within the next budget cycle. Delays in budgeting just as with delays in relocation of utilities will impact the Department or its contractor through increased construction costs due to inflation, and additional overhead due to extended contract periods.

The traveling public is also affected by delayed project completion (congestion expense) or by reduced payoff from the motor fuel taxes. In order to reduce project delays, the Department may secure temporary funding for utility relocations. The immediate funding provided by the Department must be reimbursed through a formal agreement executed prior to award of the project.

Temporary Funding options (Department is repaid under a receivable agreement):

Water and Sewer facilities included in contract: A Contract Item Agreement is created that provides for billing to the Owner as the facilities are installed rather than placed in account prior to letting. Quantities installed will be billed and due on a schedule that will reimburse the Department prior to 70% completion of the project.

Water, Sewer and other type facilities installed by Utility: A Utility Agreement is created that provides for payment to the Utility as the Utility owner installs the facilities. Bills are payable monthly by the Department as progress is made. Reimbursement will provide for billing to the Owner, due on a schedule that will reimburse the Department prior to 70% completion of the project.

EXAMPLE: $500,000 local government utility relocation for permitted facility (i.e. traditionally non-reimbursable)

• Department budgets estimated cost using State/Federal funds in order to certify project for letting
• Local Government bills Department for reimbursement as their contractor/forces bills are due monthly
• Department pays bills
• Local Government pays Department back in four (4) installments prior to 70% completion.
• Enforceable provisions will be included in the Agreement
  • Withhold State Aid if not paid
  • Restrict future Utility Permits on State Routes

Document History:

• added to TOPPS: 03/18/04
• reviewed: 03/03/05
• reviewed: 09/11/06
• reviewed: 01/17/08

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