Bill Text: AZ SB1433 | 2015 | Fifty-second Legislature 1st Regular | Introduced

---

Bill Title: Utilities; facilities relocation; cost reimbursement

Spectrum: Partisan Bill (Republican 4-0)

Status: (Failed) 2015-02-18 - Senate FIN Committee action: Held [SB1433 Detail]

Download: Arizona-2015-SB1433-Introduced.html

---

 

 

 

REFERENCE TITLE: utilities; facilities relocation; cost reimbursement

 

 

 

State of Arizona

Senate

Fifty-second Legislature

First Regular Session

2015

 

 

SB 1433

 

Introduced by

Senator Lesko: Representatives Gray, Mitchell, Petersen

 

 

AN ACT

 

Amending sections 9-461.14, 11-809 and 28-7156, Arizona Revised Statutes; relating to public works projects.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 9-461.14, Arizona Revised Statutes, is amended to read:

START_STATUTE9-461.14.  Public works project planning; utility input; utility relocation; cost reimbursement; definitions

A.  A city or town in the design phase of a public works project shall provide notice and opportunity for comment to all utilities the city or town believes may be impacted by the public works project for the purposes of:

1.  Eliminating or minimizing the need for relocation of aerial, surface and underground facilities of the impacted utilities and, if relocation is unavoidable, minimizing the relocation costs to the extent practicable relative to the cost of the public works project.

2.  Minimizing subsequent reconstruction or modification of utility facilities after completion of the public works project.

B.  In addition to the requirements of subsection A of this section, a city or town shall annually post on its website a capital improvement plan containing all public works projects scheduled to be constructed.  For a city or town without a website, the information shall be posted on the website operated by an association of cities and towns in this state.  A utility may also request that the city or town annually provide a copy of the city city's or town's capital improvement plan and provide notice of any new projects not included in the plan or changes that advance the start date of any projects already in the plan.  The utility shall designate the utility representative to receive the plan and any notice of changes that would add new projects or advance the start date of any projects already in the plan.

C.  Beginning on January 1, 2016, for any construction on a public works project in a city or town that requires an impacted utility to adjust or relocate the impacted utility's facilities, the city or town shall reimburse the impacted utility, or cause the impacted utility to be reimbursed, for all costs of relocating the facilities and reasonable ongoing costs relating to relocating the facilities that the impacted utility incurs as a direct result of the construction and operation of the public works project.  The costs of relocating the facilities exclude any betterments or increases in size or capacity beyond those of the impacted utility's existing facilities.

D.  The city or town shall give all impacted utilities written notice promptly after the completion of all facilities relocation related to the public works project.  The impacted utility shall submit a verified claim for reimbursement within ninety days after receipt of the notice of completion.  The claim may not include profit but may include a reasonable allocation of general overhead.  The city or town shall review and audit the verified expenses.  The review and audit shall be conducted pursuant to standard industry accounting principles.  The review and audit must be concluded and the reimbursement of costs of relocating the facilities paid to the impacted utility within one hundred eighty days after all impacted utilities receive notice of completion.

E.  The total amount of costs of relocating that the impacted utility may be reimbursed pursuant to subsection C of this section may not exceed two percent of the total cost of the public works project.  If the total amount of allowable claims presented for a public works project by impacted utilities exceeds that amount, each claim shall be reduced proportionately so that the total amount of reimbursement paid equals two percent of the total cost of the public works project.

F.  If the owner of the facilities to be relocated holds existing land rights, the city or town shall relocate the facilities with equal land rights.

C.  G.  For the purposes of this section:

1.  "Facilities" means all facilities, property and equipment used and useful to the utility to provide its services.

2.  "Impacted utility" means any licensed cable television system or operator, any telecommunications corporation or any other person, except an agricultural improvement district, that is engaged in the delivery or provision of telecommunications service or cable television service.

1.  3.  "Public works project" has the same meaning prescribed in section 12‑1141.

2.  4.  "Utility" has the same meaning prescribed in section 48‑5107. END_STATUTE

Sec. 2.  Section 11-809, Arizona Revised Statutes, is amended to read:

START_STATUTE11-809.  Public works project planning; utility input; utility relocation; cost reimbursement; definitions

A.  A county in the design phase of a public works project shall provide notice and opportunity for comment to all utilities the county believes may be impacted by the public works project for the purposes of:

1.  Eliminating or minimizing the need for relocation of aerial, surface and underground facilities of the impacted utilities and, if relocation is unavoidable, minimizing the relocation costs to the extent practicable relative to the cost of the public works project.

2.  Minimizing subsequent reconstruction or modification of utility facilities after completion of the public works project.

B.  In addition to the requirements of subsection A of this section, a county shall annually post on its website a  the capital improvement plan containing all public works projects scheduled to be constructed.  A utility may also request that the county annually provide a copy of a county's capital improvement plan and provide notice of any new projects not included in the plan or changes that advance the start date of any projects already in the plan.  The utility shall designate the utility representative to receive the plan and any notice of changes that would add new projects or advance the start date of any projects already in the plan.

C.  Beginning on January 1, 2016, for any construction on a public works project in a county that requires an impacted utility to adjust or relocate the impacted utility's facilities, the county shall reimburse the impacted utility, or cause the impacted utility to be reimbursed, for all costs of relocating the facilities and reasonable ongoing costs relating to relocating the facilities that the impacted utility incurs as a direct result of the construction and operation of the public works project.  The costs of relocating the facilities exclude any betterments or increases in size or capacity beyond those of the impacted utility's existing facilities.

D.  The county shall give all impacted utilities written notice promptly after the completion of all facilities relocation related to the public works project.  The impacted utility shall submit a verified claim for reimbursement within ninety days after receipt of the notice of completion.  The claim may not include profit but may include a reasonable allocation of general overhead.  The county shall review and audit the verified expenses.  The review and audit shall be conducted pursuant to standard industry accounting principles.  The review and audit must be concluded and the reimbursement of costs of relocating the facilities paid to the impacted utility within one hundred eighty days after all impacted utilities receive notice of completion.

E.  The total amount of costs of relocating that the impacted utility may be reimbursed pursuant to subsection C of this section may not exceed two percent of the total cost of the public works project.  If the total amount of allowable claims presented for a public works project by impacted utilities exceeds that amount, each claim shall be reduced proportionately so that the total amount of reimbursement paid equals two percent of the total cost of the public works project.

F.  If the owner of the facilities to be relocated holds existing land rights, the county shall relocate the facilities with equal land rights.

C.  G.  For the purposes of this section:

1.  "Facility" means all facilities, property and equipment used and useful to the utility to provide its services.

2.  "Impacted utility" means any licensed cable television system or operator, any telecommunications corporation or any other person, except an agricultural improvement district, that is engaged in the delivery or provision of telecommunications service or cable television service.

1.  3.  "Public works project" has the same meaning prescribed in section 12-1141.

2.  4.  "Utility" has the same meaning prescribed in section 48‑5107. END_STATUTE

Sec. 3.  Section 28-7156, Arizona Revised Statutes, is amended to read:

START_STATUTE28-7156.  Utility relocation; cost reimbursement; definitions

A.  The director may shall authorize the reimbursement to a city, town or county for the cost of labor, equipment, materials, preliminary engineering and right‑of‑way purchase required to adjust or relocate a utility facility belonging to a city, town or county if all of the following apply:

1.  An existing city, town or county public highway or street is established as a state highway, state route or interstate highway under the direct control of the director.

2.  At the time the highway or street is established as a state highway, state route or interstate highway under the direct control of the director, a utility facility belonging to a city, town or county exists within the right‑of‑way of the highway or street.

3.  It becomes necessary to adjust or relocate the utility facility due to modification or improvement of the state highway, state route or interstate highway under the direct control of the director.

4.  Modification of the state route or an interstate highway begins on or after January 1, 2016.

B.  The director shall authorize the reimbursement to an owner of a restricted utility facility other than a city, town or county for the cost of labor, equipment, materials, preliminary engineering and right‑of‑way purchase required to adjust or relocate the restricted utility facility if all of the following apply:

1.  An existing city, town or county public highway or street is established as a state highway, state route or interstate highway under the direct control of the director.

2.  At the time the highway or street is established as a state highway, state route or interstate highway under the direct control of the director, the restricted utility facility exists within the right‑of‑way of the highway or street.

3.  It becomes necessary to adjust or relocate the utility facility due to modification or improvement of the state highway, state route or interstate highway under the direct control of the director.

4.  Modification of the state route or an interstate highway begins on or after January 1, 2016.

B.  C.  The director shall determine the payment for labor, equipment and materials.  The cost of relocation shall not exceed the value of the substitute utility facility.  The director shall base the determination of the value of a substitute utility facility on the costs for replacement of a like facility.  Costs of relocation shall exclude any betterments or increases in the size or capacity beyond those of the existing utility facility.

C.  D.  This section does not apply to a city, town or county utility facility that is owned by the city, town or county or other owner of a utility facility and that exists within the highway or street right‑of‑way by virtue of any permit, franchise or other revocable authority granted by the department, unless the authority was previously granted as part of an adjustment or relocation pursuant to this section.

D.  E.  Once established pursuant to a relocation prescribed by this section, the rights of a city's, town's or county's rights city, town or county or other owner of a utility facility remain with the applicable city, town or county or other owner of a utility facility for which the relocation occurred.

F.  For the purposes of this section:

1.  "Restricted utility facility" means the facilities, property and equipment related to the delivery or provision of telecommunications or cable television service by any public service corporation, licensed cable television operator, telephone line or telegraph line corporation or other person, except an agricultural improvement district, that is engaged in the delivery or provision of telecommunications or cable television service.

2.  "Utility facility" means the facilities, property and equipment related to the generation, transmission, delivery or provision of electricity, gas, telecommunications, cable television, sewer or water service by any public service corporation, agricultural improvement district, licensed cable television operator, telephone line or telegraph line corporation or person, except an agricultural improvement district, that is engaged in the generation, transmission, delivery or provision of electricity, gas, telecommunications, cable television, sewer or water service, including this state or any political subdivision or agency of this state or any city or town or county. END_STATUTE

Sec. 4.  Effective date

Sections 9-461.14, 11-809 and 28-7156, Arizona Revised Statutes, as amended by this act, are effective from and after December 31, 2015.