643.2 Utilities in Program Delivery

Forms

● Certification of Consultant

● Nonwritten Easement Rights Example

● Report of Personal Service

● Utility Checklist for Reviewing Utility Owner's Consultant Contracts

643.2.1 Introduction

Improvements to the highway system often require negotiation between the Commission and a city, a county, or a public or private utility owner. The Commission’s district utilities staff is responsible for coordination of highway improvement projects with the utility owner’s representative. The impact to a utility, the responsibility for the cost of adjustments necessary to allow highway construction, the plan of adjustment of the utility, the responsibility of performance of work on utility facilities, and the schedule of the utility adjustment are all items that vary depending on the project and should be investigated and negotiated to ensure highway improvement projects are delivered on-time and on-budget. These should comply with Commission policy. A flowchart outlining all the utility adjustment processes (reimbursable and non-reimbursable relocations, Master Reimbursable Utility Agreements and Project Specific Agreements, etc.) are available in the list of figures at the top of the page. These processes will not always be in combination, but each should be considered with each project.

The district utilities staff, in conjunction with the Transportation Project Manager (TPM), is expected to invite and encourage participation of utility owner representatives in MoDOT project meetings as needed.

When a project involves utility adjustments for which the Commission is responsible for costs, the TPM should program the costs of the utility adjustments as non-contractual construction costs in the STIP Information Management System (SIMS).

643.2.2 Annual Utility Meeting

Each district should hold an annual meeting with utilities to discuss current STIP projects in the district. The annual meeting should be held during each year's STIP preparations, ideally between January and May. All utility owners that have utility facilities in the district should be invited. The intent is to provide the utility owners with an idea of upcoming projects to allow them the opportunity to plan and budget for potential adjustments of their utility facilities, identify both MoDOT and utility roadblocks, and develop action plans to complete utility adjustments better, faster, and cheaper.

643.2.3 Determination of Existing Utilities

District utilities staff should determine the appropriate level of effort needed to accurately identify existing utilities within the footprint of a proposed highway construction project. Aboveground utilities are easily identifiable via field checks; however, determination of the precise location of underground utilities can be more challenging and time consuming. Therefore, the district utilities staff should balance the risk of conflict with the highway construction project against the level of effort needed to determine the location.

The level of effort on mapping utilities is dependent on the scope of the project and the potential for utilities having an impact on the construction of the project. The project schedule should include the time to complete this task accurately. The time and effort necessary for having accurate locates requires close interaction with the utility locators. Early contact with utility owner representatives may be necessary to accurately locate underground utility facilities.

Various methods of determining existing underground utilities result in different levels of quality. ASCE Standard 38 Standard Guidance for Investigating and Documenting Existing Utilities classifies four levels of quality:

1. Quality Level D: QL-D is the most basic level of information for utility locations. It comes solely from existing utility records or verbal recollections, both typically unreliable sources. It may provide an overall "feel" for the congestion of utilities but is often highly limited in terms of comprehensiveness and accuracy. QL-D is useful primarily for project planning and route selection activities.

● Missouri 811 or “private-locate” markings are to be considered to be QL-D.

2. Quality Level C: QL-C is probably the most used level of information. It involves surveying visible utility facilities (e.g., manholes, valve boxes, etc.) and correlating this information with existing utility records (QL-D information). When using this information, it is not unusual to find that many underground utilities have been either omitted or erroneously plotted. Therefore, its usefulness is primarily on rural projects where utilities are not prevalent or are not too expensive to repair or relocate.

3. Quality Level B: QL-B involves the application of appropriate surface geophysical methods to determine the existence and horizontal position of virtually all utilities within the project limits. This activity is called "designating". The information obtained in this manner is surveyed to project control. It addresses problems caused by inaccurate utility records, abandoned or unrecorded utility facilities, and lost references. The proper selection and application of surface geophysical techniques for achieving QL-B data is critical. Information provided by QL-B can enable the accomplishment of preliminary engineering goals. Decisions regarding location of storm drainage systems, footers, foundations, and other design features can be made to avoid conflicts with existing utilities. Slight adjustments in design can produce substantial cost savings by eliminating utility relocations.

4. Quality Level A: QL-A, also known as "locating or potholing", is the highest level of accuracy presently available and involves the full use of the subsurface utility engineering services. It provides information for the precise plan and profile mapping of underground utilities through the nondestructive exposure of underground utilities, and provides the type, size, condition, material, and other characteristics of underground features.

For projects with scopes that have potential for utility conflicts, the minimum level of effort required is SUE Quality Level D. Locations of existing utilities are determined by requesting locates through Missouri 811, also known as the “One-Call” process. Missouri 811 locating requests should be carefully considered for the scope of work of the project. When necessary, the location of existing utilities should be established by a field survey of locate markings and features and shown on the roadway plans. Higher level SUE Quality Levels can be used on any project. Adjustment cost savings, whether to the MoDOT or to the utility owner, are beneficial to the taxpayer. Good SUE projects are typically urban in nature, or in congested areas, where the project footprint is to be minimized, or anytime accurate vertical and horizontal location of the utility facility might allow a design to avoid the utility facility thus preventing the need for the adjustment. The SUE process combines civil engineering, surveying, and geophysics. It utilizes several technologies, including vacuum excavation and surface geophysics.

When proposed excavation or installation of subsurface features (drainage, equipment bases, etc.) falls within three feet (3’) of a marked Missouri 811 line, soft digging (hand digging, potholing, vacuum methods, pressurized air/water jetting, pneumatic hand tools, etc.) is required to more exactly locate the utility facility both horizontally and vertically. Utility facilities present within the right of way by permit, should be investigated by the utility owner. The SUE of utility facilities that would be reimbursable or partially reimbursable as defined in EPG 643.2.8 will be investigated by MoDOT is a reimbursable expense to the utility owner. MoDOT may undertake the SUE investigation of these utility facilities utilizing a SUE provider.

643.2.4 Conflict Determination

Determination of whether a conflict exists between an existing utility facility and a proposed highway improvement project should occur at the earliest possible stage of project development. A conflict may be the result of the physical interaction between the roadway infrastructure and utility facility, a reduction in cover or increase in fill over underground utilities, a reduction in horizontal clearance whether above or below ground, a reduction in overhead vertical clearance, paving over utilities, or restricting a utility owner’s access to its utility facilities. District utilities staff should work with utilities to determine if a conflict exists and the appropriate plan of adjustment to remedy the conflict. The adjustment to the utility may be a relocation or another measure that protects the utility or access to the utility from the proposed highway improvement project. Determination of a conflict needs to be continually re-evaluated as the project design progresses. Continuing coordination is essential.

643.2.5 Utility Plan of Adjustment

643.2.5.1 Request for Plan of Adjustment

District utilities staff will request a plan of adjustment from utility owners whose utility facilities are in conflict with a proposed highway project. The plan of adjustment may consist of efforts to relocate the utility or otherwise protect a utility from the impacts of the proposed highway project. Utilities are shown on the roadway plan and profiles sheets that are furnished to utility owners for use in planning required utility adjustments. Any other sheets such as drainage, traffic signal, lighting, or ITS plans that show impacts to a utility facility should also be provided to the utility owners. All adjustments, reimbursable or not, require a plan of adjustment furnished by the utility owner.

A transmittal letter is included in the request for a plan of adjustment. The letter informs the utility owner that regardless of whether an adjustment is reimbursable, no physical adjusting or relocating of their utility facilities to accommodate the proposed highway improvement is to be performed without specific approval and authorization. Additionally, if any part of the adjustment has the potential to be reimbursable, they are advised:

1. They may undertake preliminary engineering by their own forces upon approval by district utilities staff of the estimated costs of preliminary engineering.
2. They may employ a consultant to do the PE work provided they request and obtain prior approval. See EPG 643.2.6 Preliminary Engineering Requirements.
3. Any preliminary engineering costs accrued prior to the date of written authorization to proceed will not qualify for reimbursement.
4. Replacement right of way or easements cannot be purchased without specific approval and authorization.

643.2.5.2 Proposed Plan of Adjustment

Developing a plan of adjustment is a multi-step process. The utility owner will propose a conceptual approach to adjusting the utility facilities to allow highway construction. This conceptual approach is used as the basis for determining cost responsibility, estimate of costs for preliminary engineering and construction, developing the agreement if necessary, and final design of the adjustment. Negotiations between district utility staff and the utility owner’s representative can result in changes to the design throughout the process.

Final plans of adjustment must contain a legend on the first sheet identifying the utility symbols used. They must also show the existing utility facilities and their disposition, the location of the new or adjusted utility facilities, the existing and new right of way lines, the limited or fully controlled access symbols (where applicable), the existing and proposed roadways, ramps, and outer roadways and any other pertinent roadway information. They must contain sufficient details concerning location, elevation, compaction, clean up, etc. to provide for the proper adjustment of the utility facility. Relocated and/or existing utility facilities that will remain in place must be dimensioned or indicated in a manner to show their location in respect to the right of way lines. It is preferred that the utility owner transmits the plan of adjustment by electronic deliverables in a format that can be incorporated into the roadway plans. This will reduce the time and effort necessary as well as increase the accuracy of transferring this information into the roadway plans.

Plans of adjustment received from the utility owner are to be checked for compliance with MoDOT’s requirements (EPG 643.1 Utility Location) by the district utilities staff. They are also checked to ensure compatibility with the roadway design. Any continuing conflicts are resolved through negotiations with the utility owner.

Occasionally, it is impractical to perform a utility adjustment in accordance with MoDOT’s requirements. Sometimes the utility may request approval of a plan of adjustment that does not conform to these requirements. Deviation from MoDOT’s utility requirements is a variance. Refer to 643.1.8 Variance Process for additional guidance. The final plan of adjustment is included as Exhibit “A” to the agreement (EPG 643.2.12 Agreements).

643.2.6 Preliminary Engineering Requirements

Preliminary engineering (PE) can be performed one of four ways for utility adjustments:

1. The utility owner can use its own engineering forces.
2. MoDOT can select an engineering consultant, after consultation with the utility owner, and the consultant contract will be administered by MoDOT.
3. The utility owner can select an engineering consultant, with approval by MoDOT, and the consultant contract will be administered by the utility owner.
4. If a utility adjustment is being included in a MoDOT administered construction contract, the preliminary engineering of the adjustment can be provided by MoDOT.

For reimbursable utility adjustments, the amount paid to engineers, architects, and others for required engineering and allied services can be included in reimbursement amount provided such amounts are not based on a percentage of the costs of the necessary adjustments to allow highway construction. Reimbursement is available for contracts executed after solicitation of a consultant for the specific adjustment or existing continuing contracts when it is demonstrated that such work is performed regularly for the utility owner in its own work and that the costs are reasonable.

A checklist is available for reviewing consultant-engineering contracts to ensure the contract conforms to MoDOT policy and complies with applicable federal regulations. District utilities staff should use the checklist to review contracts and may consult with Audits and Investigations Division as necessary. The procedures in 23 CFR part 172, Administration of Engineering and Design Related Service Contracts may be used as a guide for reviewing proposed consultant contracts. EPG 136.4 Consultant Selection and Consultant Contract Management may also be used as a guide.

643.2.6.1 Solicited Consultant Contracts

If solicitation of PE services is required for reimbursable utility adjustments, the utility owner must provide the following documents and information to district utilities staff. These documents need to be provided as soon as the utility owner has chosen to solicit a consultant. Document 1 must be supplied by all utility owners. Documents 2 and 3 are only required when the utility owner is a local government agency who is also a political subdivision of the state of Missouri (e.g., city-owned utilities, county-owned utilities). All other utility owners are encouraged, but not required, to provide Documents 2 and 3:

1. A statement that the utility owner is not staffed or able to perform the required PE services with its own forces.
2. Provide the names of at least three (3) consultants considered.
3. The criteria used to evaluate each consultant and reasons why the selected consultant was selected.

The following documents need to be provided as soon as the utility owner has successfully negotiated and entered into a contract with the consultant:

1. The name and address of the selected consultant.
2. A statement that the "Certification of Consultant" will be furnished immediately upon award of the contract to the consultant.
3. One executed copy of the proposed engineering contract or agreement between the utility owner and consultant, only if the engineering will exceed $5,000.00.
4. The consultant's fixed (lump sum) or estimated fee (actual cost) and the contract maximum.
5. A cost summary providing a detailed breakdown of the basis for the consultant's compensation, including estimated labor hours, hourly rates for each classification, overhead rate (if used), the amount of profit charged, and any other estimated charges such as travel expenses, equipment rentals, etc. If an overhead rate is used, the consultant must also submit the supporting overhead rate calculations.
6. An independent cost estimate of engineering services provided by the utility owner to use in comparison to the consultant’s proposed engineering services to check for cost reasonableness.

643.2.6.2 Continuing Consultant Contracts

When a utility owner chooses to use an existing continuing contract for PE services, the utility owner must provide the following documents and information to the district utilities staff as soon as possible.

1. A statement that the utility owner is not staffed or able to perform the engineering with its own forces.
2. The name and address of the consultant under the existing continuing contract.
3. A statement that the "Certification of Consultant" will be furnished.
4. A copy of the continuing contract to the district utilities staff. The district utilities staff will review the contract for reasonableness of cost.
5. The consultant's fixed (lump sum) or estimated fee (actual cost) and the contract maximum for the work associated with the utility adjustment.
6. A cost summary providing a detailed breakdown of the basis for the consultant's compensation, including estimated labor hours, hourly rates for each classification, overhead rate (if used), the amount of profit charged, and any other estimated charges such as travel expenses, telephone, etc. If an overhead rate is used, the consultant must also submit the supporting overhead rate calculations.
7. An independent cost estimate of engineering services provided by the utility owner to use in comparison to the consultant’s proposed engineering services to check for cost reasonableness.

643.2.6.3 Consultant Contract Changes

If a PE services contract between a utility owner and a consultant needs to be revised, a copy of the revised contract, fee, and schedule should be submitted by the utility owner to the district utilities staff prior to allowing for contract changes. District utilities staff should review the contract changes to ensure the revised contract conforms to MoDOT policy and complies with applicable federal regulations.

643.2.7 Environmental and Right of Way

643.2.7.1 Utilities and Environmental Clearances

District utilities staff should coordinate with the TPM and utility owner’s representative to understand and communicate on known environmental and cultural constraints that could impact a utility owner’s plan of adjustment. This will allow the utility owner to consider permitting timelines and alternatives that avoid environmental or cultural resources to keep the project on schedule.

One strategy to make project delivery more efficient and ensure regulatory compliance is for MoDOT to obtain the environmental and cultural resource permits and clearances for the utility owners associated with a roadway improvement while obtaining its own. This would generally only be for the permits and regulatory clearances MoDOT already needs to pursue as a part of the transportation improvement.

District utilities staff should coordinate with the utility owner’s representative early in the project timeline to determine if it is in the best interest of both MoDOT and the utility owner to obtain permits and environmental clearances jointly. The following strategies can be utilized to determine if a joint approach to environmental work should be pursued:

• If utility facilities are moving to a location within or immediately adjacent to MoDOT right of way, a utility owner may be invited to participate in permitting and environmental compliance activities.
• If utilities move to a location not within or adjacent to MoDOT right of way, the utility company would not normally be invited to participate in permit applications and environmental compliance activities. However, some unique projects may necessitate further attention and should be discussed with the Design Liaison Engineer.

If MoDOT and the utility owner agree to obtain joint permits and clearances, written communication between the utility owner’s representative and the district utilities staff should document the following items:

• List of the permits and clearances that MoDOT will acquire on behalf of the utility owner.
• List of the information needed from the utility owner in order for MoDOT to acquire the permits and clearances.
• Schedule and deadlines for submittal of the information by the utility owner. For example: utility plans, fill quantities, construction methods, dates, or seasons of construction.

Permits and clearances that may be needed by both a utility owner and MoDOT include:

• Endangered Species Act consultation and clearance
• Section 106 of the National Historic Preservation Act clearance
• Section 4(f) clearance
• Section 6(f) of the Land and Water Conservation Fund Act clearance
• Section 401 and Section 404 of the Clean Water Act permits
• Section 402 of the Clean Water Act permit (State Operating Permit for Erosion Control)
• Recommendations on contaminated soil disposition

643.2.7.2 Right of Way Acquisition and Utilities

The Commission is obligated to acquire the width of right of way required by the design of the highway improvement. For utility facilities currently located within the Commission’s right of way, this includes the necessary space for the utility facilities impacted by the design of the highway improvement. Either additional right of way width to accommodate a utility corridor or a utility easement can be obtained for the relocation of utility facilities. When drainage easements are acquired along a channel, additional space for utility facilities should be considered to avoid conflicts between the utility facility and the bridge or culvert.

District utilities staff should inform the utility owner’s representative of the potential of a conflict between an existing utility facility and a proposed highway construction project early in the project development process to allow sufficient time for the utility owner to prepare a plan of adjustment and notify the district utilities staff of any easement needs. When utility facilities are located on a utility owner’s private easement, the utility owner may obtain its own new easements. If the utility owner is not in a position to negotiate for new easements or if the utility owner’s policies will not permit it to condemn property to obtain the easement, MoDOT can acquire the easement in the same manner roadway right of way is obtained. The district utilities staff should verify the utility owner is aware of the opportunity to have MoDOT acquire the easement, and the utility owner should provide written documentation on whether the utility owner would like to pursue this option with MoDOT.

For situations where the utility owner will obtain its own replacement right of way and the cost of the adjustment is MoDOT’s responsibility, the utility right of way cost should be reviewed by the district right of way department to ensure the cost is reasonable and acquisition followed state and federal regulations. In order to expedite utility adjustments necessary to allow highway construction, the district utility staff may authorize the utility owner to obtain easements prior to all details of a plan of adjustment being developed. In this situation, the district utilities staff should ensure enough details are known to justify the needed right of way, and an agreement for right of way costs only should be executed with the utility owner.

For situations where MoDOT will obtain the right of way necessary to allow highway construction, district utility staff should negotiate with the utility owner’s representative to ensure all necessary utility easements are shown on the approved right of way plans. The TPM should confirm with district utilities staff that the right of way plans accurately reflect the needs of the utility owners prior to requesting right of way plan approval. The district Right of Way Manager should confirm with district utilities staff before requesting an acquisition date (A-date). Every effort should be made to avoid adding utility easement requests once negotiations with property owners have begun.

Occasionally, when negotiations cannot be completed for easements for the adjustment of utility facilities, it may be necessary to condemn for the property. District utilities staff should coordinate with the utility owner’s representative to ensure no alternate design for the adjustment of the utility facility is practical. The decision to condemn for easements for the adjustment of the utility facilities requires the exercise of good judgment in reaching the conclusion that further good faith negotiations are futile and condemnation is necessary to maintain the project in the scheduled letting. The TPM should coordinate with the district utilities staff and district Right of Way (RW) personnel on the condemnation proceedings.

Easement and other right of way documents used with utility owners are handled in accordance with procedures established jointly with RW and district utilities staff. District survey staff prepare the land descriptions for use in utility easements. The district utilities staff is responsible for completion of the easements in the correct form and scope. A sketch delineating the area described is attached to the easement as Exhibit “A”. Communication with the Design Division will ensure use of proper forms, corporate names and locations, and particular wording required for joint ownerships. The description for a utility easement is to be referenced to the nearest land corner shown on the plans. Examples of easements can be found in the template list in eAgreements.

In situations where MoDOT is acquiring right of way with existing utility easements, but the district utilities staff and the utility owner’s representative agree that the utility facility may remain in place, the utility owner will release the property to the Commission separate from the right of way acquisition. This is done by executing an Easement for Highway Construction (UT16). The utility owner grants and conveys, with warranty of title expressed or implied, to the Commission, the right to construct, reconstruct, and maintain a highway over and across that portion of the easement owned and held by the utility owner. In the future, the utility owner retains any reimbursable rights should future projects require adjustments to allow highway construction.

643.2.8 Cost Responsibility

In addition to determining if a conflict exists between an existing utility facility and a highway improvement project, it is important to determine who is responsible for the costs of the necessary adjustments to allow highway construction. An adjustment for which the Commission is responsible for the costs is known as a reimbursable adjustment. An adjustment for which the Commission is not responsible for the costs is known as a non-reimbursable adjustment. An adjustment for which the Commission and the utility share responsibility for costs is known as a partially reimbursable adjustment. Adjustments determined to be reimbursable or partially reimbursable by the Commission are to be completed under the terms of an agreement executed between the utility owner and the Commission.

643.2.8.1 Commission Responsibility

643.2.8.1.1 Utility Facilities Located on Private Easements

When the utility facility is located on a private easement within the new right of way to be acquired for a future project, the Commission is responsible for the cost of the necessary adjustments to allow highway construction. It may be possible that such easement does not have written easement rights. The Commission will honor this oral right provided acceptable documentation is provided by the utility owner to the district utilities staff. An example of acceptable documentation for not written easement rights is available. Other forms of documentation will be considered on an individual basis.

643.2.8.1.1.1 Future Moves

When the utility facility is located on a private easement, taken into the Commission’s right of way, the Commission may agree that any future moves of the same utility by Commission order may be made at the Commission’s cost. Documentation of this agreement is by an Easement for Highway Construction (UT16) agreement. If the Commission provides a substitute private easement, then the Commission will have future obligations consistent with the utility facility’s status in an easement.

643.2.8.1.2 Utility Facilities Located within Commission Right of Way

When the utility facility is located within Commission right of way, but has prior land rights, the Commission is responsible for the cost of adjustments to allow highway construction. The utility owner is responsible for documenting to the satisfaction of the district utilities staff, the basis for the claim of prior land rights within Commission right of way. Time spent researching prior rights is considered coordination and is reimbursable.

643.2.8.1.3 City or County Utility Facilities on City or County Streets

When roadway improvements are within the corporate limits of cities, towns, and villages, a municipal agreement is negotiated between the Commission and the municipality. Likewise, when roadway improvements are within the limits of a county and outside the municipal limits, a county agreement is negotiated between the Commission and the County Commission. Included in these agreements are provisions regarding reimbursement for adjusting city or county owned utility facilities. Reimbursement is provided for adjustment of city or county owned utility facilities that are now located on city or county streets and not on Commission right of way.

643.2.8.1.4 Lumen

Lumen – National (formerly CenturyLink, Lightcore, or Digital Telephone, Inc. (DTI)) and the Commission have entered into a partnership agreement, “Amended and Restated Fiber Optic Cable on Freeways in Missouri,” executed June 5, 2003 which obligates the Commission to be responsible for the cost of the necessary adjustments to allow highway construction along the routes identified in the agreement. A copy of the agreement is available to district utilities staff.

643.2.8.1.5 Services to the Commission

When a utility facility provides a service connection to local Commission facilities such as power to traffic signals, lighting, ITS, and cathodic protection and phone drops to traffic signal controllers or other Commission facilities, the Commission is responsible for the cost of the necessary adjustments to allow highway construction.

643.2.8.1.6 Private Service Lines

While most utility owners reconnect the private service lines at no cost to the property owner, some do not. If a utility owner does not reconnect service lines, MoDOT can include adjustment of private service lines in roadway contracts. Bid items for relocating service connections are provided for the different types of anticipated adjustments.

643.2.8.1.7 Second Moves

If the Commission requires additional work to a utility facility after the facility has been relocated or adjusted in accordance with a plan of adjustment approved by the Commission for a single project number, the Commission is responsible for the cost of the additional work regardless of whether the initial adjustment was Commission responsibility as outlined in other parts of 643.2.8.1.

The purpose of the policy is to encourage utilities to relocate early rather than waiting until plans are published for bidding. The policy eliminates the utility having to relocate twice at its own expense because of late changes in the design. It is best to have utilities relocated prior to construction, and this policy helps achieve that goal. Therefore, it is imperative that the designer notifies district utilities staff as soon as possible of any changes made after these plans have been sent. If notified immediately, it may be possible to inform the utility owner prior to their final design thereby eliminating a second move.

Under this policy, the following are not considered second moves. Temporary and staged relocations necessary to accommodate construction and agreed upon by the utility and the Commission prior to relocation are considered a single move and are not subject to the provisions of the second move policy. If the Commission requires adjustment of a utility facility for which the utility owner is responsible for the cost of the adjustment and was originally determined to not need adjustment, the utility owner is responsible for the cost of the adjustment. The utility owner is responsible for the cost of additional work to any portion of the utility facility after the utility facility has been adjusted in accordance with a plan of adjustment approved by the Commission if the additional work is required by the Commission due to error by the utility owner in preparation of plan of adjustment, field location of, or construction of the adjustment of the utility facility.

When evaluating construction contract changes by change order or value engineering, the impacts of the second move policy should be considered.

643.2.8.2 Utility Owner Responsibility

643.2.8.2.1 Utility Facilities Owned and Operated by a Political Subdivision

When a utility facility is located within Commission right of way, but does not have prior land rights, the utility owner is responsible for the cost of the necessary adjustments to allow highway construction. When a utility facility is located on public right of way other than Commission right of way, the utility owner is responsible for the cost of the necessary adjustments to allow highway construction.

When a political subdivision must bear part or all the cost of adjustments to their utility facilities, and the cost creates a financial hardship, the Commission, by its authorized representative, the Chief Engineer, may temporarily assume these costs. A payback agreement with the political subdivision will include an applicable interest rate for a comparable maturity from a widely published index of tax-exempt municipal rates obtained from Financial Services. Payback time will not exceed five (5) years.

643.2.8.2.2 Utility Facilities Other Than Those Owned by a Political Subdivision

When a utility facility is on the right of way of a public road or street or on state highway right of way without prior land rights and adjustment is necessary to allow for the construction of a roadway improvement, the utility owner is responsible for the cost of the necessary adjustments to allow highway construction.

643.2.8.3 Shared Responsibility

When a utility facility is located such that portions of it are a Commission responsibility and portions of it are a utility owner responsibility by the definitions above, the costs of the necessary adjustments to allow highway construction will be split by the Commission and the utility owner. If the exact cost for each party can be determined, each party will be responsible for their portion of the cost of relocating the utility facility. If the exact cost for each party cannot be determined, the parties will arrive at a percentage reimbursement on an equitable basis.

643.2.8.4 Notice of Hearing

When relocation or other difficulties with utility facilities on public right of way arise that prevent resolution by negotiation, formal hearings will be required.

The district initiates a request for a utility relocation hearing with a letter to the Chief Counsel’s Office (CCO) (a copy is provided to the Design Division) requesting a hearing date. CCO will arrange for a hearing room, court reporter, etc. and advise the district of the hearing date.

The district will prepare the notice of hearing by strictly following the given format and serve the notice on all persons and utility owners listed. The property and utility owner must be served only by personal service or by mailing a certified letter, return receipt requested, no later than 15 days before the date of hearing. This will require the district to make every effort to identify the correct property owner before preparing the notice of hearing. To avoid delays, every attempt will be made to issue the hearing notice at least 30 days prior to the hearing date in case any property has changed ownership and any additional property owners must be served. A notice of hearing on service line connections will also be served on the private or public owner of the main or distribution line to which the service lines are connected. A notarized "Report of Personal Service" will be completed when notification by certified mail is not used.

One copy of the hearing notice and attachments, "Report of Personal Service" and certified mail notices are to be submitted to CCO after notification is complete.

Prior to the hearing, the district's representative will become familiar with the details of the utility adjustment in order to provide concise testimony to expedite the hearing process. CCO will assign an attorney to work with the district and present the case.

Refer to 7 CSR 10-3.030 020 Utility Relocation Hearings for additional information.

A Waiver of Hearing should be obtained for non-reimbursable adjustments to document the commitment of the utility owner to adjust its utility facilities without adversely impacting the highway construction project. This may be accomplished informally via written communications between the district utilities staff and the utility owner’s representative. A formal Waiver of Hearing statement may be requested by either MoDOT or the utility owner. A sample transmittal letter for the Waiver of Hearing is available. For reimbursable or partially reimbursable adjustments, the formal agreement serves as the basis of documentation of this commitment.

643.2.9 Estimates

District utilities staff will negotiate with utility owners to determine reimbursable costs of the necessary adjustments to allow highway construction (EPG 643.2.8 Cost Responsibility). These estimates are prepared in accordance with the provisions of 23 CFR 645 and any amendment thereto. These estimates must reflect the same procedures and costs used by the utility owners in their normal operations and must also accurately represent the expected costs of the work. The utility owner’s estimate will be reviewed by the district utilities staff to ensure compliance with 23 CFR 645.

643.2.9.1 Independent Cost Estimate

The independent cost estimate provides the basis for district utilities staff to review the utility owner’s estimate of costs of the necessary utility adjustments to allow highway construction and any subsequent negotiations with the utility owner. The district utilities staff should prepare an independent cost estimate. The independent cost estimate may be based on unit prices of anticipated items of work in a utility adjustment necessary to allow highway construction. The independent cost estimate alternately may be based on recent similar types of utility adjustments necessary to allow highway construction and scaled for size. Consultants can be used to develop the independent cost estimate. All documentation of the independent cost estimate should be placed in MoProjects.

643.2.9.2 Type of Project Cost Estimates

Either Actual Cost or Lump Sum estimates may be used for estimating the costs on the necessary utility adjustments to allow highway construction. If an Actual Cost estimate is used, detailed records of materials, labor, and equipment are made by district utilities and/or construction staff during construction, and a final audit of the utility owner’s cost records is made to determine the Commission’s actual responsibility for costs of the adjustment completed to allow highway construction. If a Lump Sum estimate is used, a final audit of costs for an adjustment in payment is not required. The Actual Cost method requires more detailed record keeping and documentation by the utility owner and district staff during construction. The Lump Sum method requires more upfront detail and work by the utility owner and judgment on the district utilities staff on the acceptability of the cost. The district utilities staff will work with the utility owner’s representative to determine the best type of estimate and therefore agreement to use.

643.2.9.2.1 Actual Cost Estimate

The cost estimate that supports the actual cost agreement is prepared in sufficient detail to determine the reasonable expected cost of the work to support development of an agreement between the utility owner and the Commission. However, reimbursement is based on the actual costs of design and construction of the necessary adjustment to allow highway construction. The actual cost estimate should detail all costs of the necessary adjustment to allow highway construction, even if the Commission is only responsible for a portion of the costs as detailed in EPG 643.2.8.3 Shared Responsibility.

Actual cost estimates can be used for any dollar amount of reimbursement.

643.2.9.2.2 Lump Sum Estimates

The cost estimate that supports the lump sum agreement must be accurate, comprehensive, verifiable, and in sufficient detail to present a clear picture of the work involved and the cost of the individual items. The estimate may cover only that portion of the adjustment for which the Commission is responsible for the costs of the necessary utility adjustments to allow highway construction. Lump sum estimates are limited to a maximum of $200,000 of Commission responsibility of costs of the necessary utility adjustments to allow highway construction; however, exceptions may be made for special situations that have prior approval from Design Division. These exceptions usually cover major relocations for which the Commission's proportionate responsibility is extremely small.

643.2.9.3 Utility Cost Estimate Requirements

Whether using an Actual Cost or Lump Sum estimate, the following should be included in the estimate, if applicable. If any of the following sections are not included in the estimate, a qualifying statement as to why the costs were not included should be provided.

643.2.9.3.1 Scope of Work

All estimates require a concise summary of the work to be performed on the estimate. An example is "an estimate of cost covering the work of relocating Company's 12-inch Cushing-Woodriver pipeline to accommodate construction of Route 47 in Franklin County on Job No. J6P0172".

643.2.9.3.2 Engineering Costs

Costs of engineering, whether preliminary or construction, must be shown as separate items and are not to be included with "labor costs". Concurrent cost accounting procedures of FHWA and MoDOT make this a necessity. See EPG 643.2.6 Preliminary Engineering and EPG 643.2.16.2 Construction Contract Requirements for further information.

643.2.9.3.3 Right of Way Costs

A detailed estimate of the cost to acquire replacement easements by the utility owner is required. The cost should be supported by a right of way plan.

643.2.9.3.4 Material Costs

Quantities, description of the item, the unit cost, and the extended totals are shown. Percentage computations will be shown immediately following "total cost" so the utility owner’s and Commission's cost obligations are properly indicated. Unit assembly costs similar to those used by several of the rural electric association (R.E.A.) cooperatives are acceptable, provided the same units and charges are used in the utility owner’s regular operations. A handling charge conforming with the utility owner’s regular procedures may also be included.

643.2.9.3.5 Labor Costs

Hours, individual or crew rates, and extended totals are shown. Payroll additives such as insurance, retirement, social security, vacation, and other benefits are shown as a separate item under this heading in accordance with utility owner’s regular procedures. Adequate explanation must be given for total percentage used, especially in those cases where materials and labor are combined as unit costs or where labor percentages include additives and equipment requirements.

643.2.9.3.6 Equipment Costs

A description of the equipment to be used must be shown jointly with the number of hours to be charged. Rates charged for equipment usage must be justified by the utility owner’s established accounting procedures. When the utility owner does not have an established accounting procedure or a capitalization and depreciation schedule that is used in its own operations, the rates are to be established by using rental rate publications as a guide. A reasonable amount will be deducted, when using rental rate schedules, for profit that the rental company realizes. A full explanation of the methods used in establishing the rates must also be submitted to support the utility owner’s request and with approval of the district utilities staff.

Equipment may be rented when the utility owner’s equipment is not available or is inadequate, with the rental rate justified by appropriate solicitation of bids. See EPG 643.16.2 Construction Contract Requirements for further information.

Unusual accounting procedures may be accepted with adequate prior explanations and approval of the Design Division.

643.2.9.3.7 Removal Costs

These costs are estimated and shown in a similar method but separately from installation costs. When removal costs exceed salvage credits by more than the estimated cost of removal by the roadway contractor, an effort should be made to persuade the utility owner to abandon the utility facilities in place. An exception is made when the utility owner is required to remove abandoned utility facilities because of liability, hazard, or by specific agreement with the Commission. Abandoned utility facilities can be included with the miscellaneous removals in the roadway contract. It may be possible for the utility owner to remove those portions of the utility facility for which credits will exceed removal costs, with the remainder of the utility facility to be abandoned for removal in the roadway contract. Materials removed must be itemized, with the utility owner’s customary salvage credit given. Items to be scrapped or junked should be indicated. Whenever a utility facility or portion thereof is shown to be abandoned on the plan of adjustment, the roadway plans should be notated accordingly. This eliminates ownership problems if these utility facilities are removed or salvaged by the roadway contractor.

When the utility facility is no longer needed and removal is necessary to accommodate the roadway project, the removal of the item may be handled either as a right-of way-item or a utility adjustment. When handled as a right of way item, the damages allowed are to equal the depreciated value of the utility facility, with the necessary removals being accomplished by the roadway contractor. If accomplished as a utility adjustment, the Commission, by utility agreement, will reimburse the utility owner for removal costs and receive salvage credit for the material removed, up to but not exceeding removal costs.

643.2.9.3.8 Salvage of Removed Materials

This statement, to explain the salvage credit or lack of credit, will reflect routine utility owner policy as well as the particular situation. The utility owner will place a value on any recovered material for salvage. District utilities staff should check this value for reasonableness. Examples of salvage statements include:

• Existing utility facilities to be abandoned in place, since the cost of salvaging, based on our past experience, will exceed their value.
• Only those items will be salvaged for which salvage credit will exceed the cost of removal and salvage.
• Company liability requires removal of the retired utility facilities, even though the cost of removal will exceed allowable credit for salvage.
• Salvage credits are in accordance with established company accounting procedures.

643.2.9.3.9 Accrued Depreciation Credits

Credit is required for the accrued depreciation of a utility facility that is being replaced. Examples are a building, structure, pumping station, filtration plant, power plant, substation, or other similar operational unit. Credit for accrued depreciation will not be required for a segment of the utility's service, distribution, or transmission lines. It is also not required when the building or structure is being moved as necessitated by the highway project. Acceptable accrued depreciation credit will be determined by using the following formula:

$\frac{ActualLengthofServiceofReplacedFacility(Years)}{TotalEstimatedServiceLifeofReplacedFacility(Years)}\times OriginalCost(\$)=Credit$

643.2.9.3.10 Betterment Credits

Betterment means the upgrading of the utility facility being relocated, made solely for the benefit of and at the election of the utility owner and is not attributable to the roadway improvement. Credit to the Commission is required for the additional costs incurred for the betterments introduced in the adjusted utility facility. No betterment credit is required for additions or improvements which are:

• Required by the highway project
• Replacement devices or materials that are of equivalent standards although not identical
• Replacement of devices or materials no longer regularly manufactured with next highest grade or size
• Required by law under governmental and appropriate regulatory commission code
• Required by current design practices regularly followed by the utility owner in its own work, and there is a direct benefit to the highway project

643.2.9.3.11 Overhead Costs

Overhead costs are usually a percentage of the total labor cost. This item must be in accordance with the utility owner’s established accounting procedures, which in some cases may include handling costs or be a percentage of the total cost of the work involved. Additional attention to overhead costs is required when the rate is different from previously accepted rates. Occasionally, it can be difficult to obtain the necessary information at the time of the estimate to approve the overhead rates. In this situation, the estimate can be approved with exception of the overhead rates for payment. The utility owner is informed of this matter with the understanding that the overhead rates could be approved and paid with submission of appropriate supporting data and Financial Services audit review.

643.2.9.3.12 Prorating Costs

The need for prorating utility adjustment costs occurs when both the Commission and the utility owner are responsible for a portion of the utility adjustment necessary to allow for highway construction, and the actual costs for reimbursement in each category cannot be explicitly determined. Generally, the following conditions require division of costs:

• The adjustment is considered partially reimbursable per EPG 643.2.8.3 Shared Responsibility
• Betterments are included in the necessary adjustment of the utility facility

The district utilities staff should negotiate with the utility owner’s representative to determine an equitable basis for the prorating of costs based on the characteristics of the utility adjustment necessary to allow for highway construction.

643.2.9.3.13 Costs Records

The estimate should include a statement as to where the utility owner’s cost records may be reviewed. An example: "Company cost records will be available in our office at 2134 Industrial Avenue, Tulsa, Oklahoma".

643.2.9.3.14 Other

Additional statements will explain or further clarify the work that is included. Such other items may include bypasses, special equipment, need for larger utility facilities, etc.

643.2.10 Schedule

Timely adjustments of utility facilities are essential for efficient completion of highway construction projects. Ideally, all utility adjustments are completed prior to a project’s Plans, Specifications, and Estimate (PS&E) submittal to Central Office. Depending on the specifics of the highway construction and utility adjustment necessary, early completion of the utility adjustment may not be practical. The district utilities staff should negotiate with the utility owner to determine the schedule parameters necessary for the utility adjustment. At a minimum, the utility owner should document the dates it anticipates starting and completing the work. If a utility adjustment depends upon the completion of a portion of the highway construction, the necessary milestone for starting the utility adjustment should be documented along with an anticipated number of working days to complete the utility adjustment. The schedule is included as Exhibit “C” to the agreement.

643.2.11 Pre-Audits

The district utility staff performs a pre-audit review and approval prior to preparation of the agreement. A pre-audit checklist should be completed and saved in MoProjects.

643.2.12 Utility Agreements

Whenever the Commission is responsible for the cost of the necessary adjustments to allow highway construction, an agreement is required. If a Master Reimbursable Utility Agreement (see EPG 643.2.12.2) has not been executed with the utility owner, a Project Specific Agreement (see EPG 643.2.12.3) is executed between the utility owner and the Commission. In some cases, it may be more practical for the Commission to include adjustment of utilities into a Commission administered contract. A Utility Agreement - Actual Cost (For Utility Work That is to be Included in the Missouri Highways and Transportation Commission's Road Project) (see EPG 643.2.12.4). Agreements include a plan of adjustment (Exhibit “A”), cost estimate (Exhibit “B”), and schedule (Exhibit “C”).

The Utility Agreement boilerplate forms have been approved by the Chief Counsel’s Office (CCO). They are identified in the upper left-hand corner of each agreement by an identifier such as CCO Form: UT01 for the Master Reimbursable Utility Agreement. CCO updates these agreements as necessary. They serve as a guide in the preparation of the agreement to be executed with the utility owner for the adjustments required to their utility facilities to accommodate the proposed roadway improvement project. District utilities staff should use the latest version of the agreement found in eAgreements in drafting an agreement with utility owners. A list of utility agreements and detailed information concerning the sequence for preparing and executing an agreement is available in EPG 153 Agreements and Contracts.

These forms are to be used word for word. Revisions or additions are only made to address specific project details. The intent of each paragraph must be retained, although specific words may be revised to fit the particular situation. No paragraphs are deleted without prior approval from CCO. For guidance on acceptance of liability, refer to the Acceptance of Liability Policy at the CCO SharePoint page. Drafts of agreements having major revisions or complications are to be submitted, with supporting data, to Design Division for comment and approval.

A reference to 23 CFR 645 is included in all agreements. Utility owners must be acquainted with these requirements and procedures. The incorporation of 23 CFR 645 by reference in all agreements eliminates the need for a second set of regulations to be included in the document.

The agreement for the adjustment of a utility is prepared by the district utilities staff and submitted to the utility owner for execution. The agreement is based on the plan, estimate of cost which was prepared in accordance with 23 CFR 645, and schedule. Authorized individuals representing the utility owner will execute the agreement. The agreement must be signed, sealed, and if necessary, notarized by the utility owner. If the utility owner does not have or use a corporate seal, write "NO SEAL" under the signatures of the owner’s officers. Agreements with political subdivisions are to be supported by an appropriate ordinance, a copy of which is to be submitted with the executed agreements. All copies will be forwarded to the CCO for further handling. A fully executed copy of the agreement will be retained in eAgreements. If the agreement was executed using electronic signatures, the district utilities staff should forward an electronic copy of the fully executed agreement to the utility owner. If the agreement was executed using wet signatures, one (1) paper copy of the fully executed agreement will be returned by the Commission Secretary’s Office to the district utilities staff. The district utilities staff will forward this copy to the utility owner.

643.2.12.1 Buy America Build America Requirements

All agreements contain information on Buy America Build America (BABA) compliance. The utility owner should select the method of certification (See EPG 643.2.19) at the time of agreement completion. The appropriate paragraph will be inserted into the agreement. All BABA compliance documents must be retained by the utility owner and made available upon request at no cost to the Commission and/or FHWA.

643.2.12.1.1 Utility Owner Self-Certification

The City/Company certifies that when determining products/materials subject to Buy America Build America requirements to use in the performance of this Agreement, it shall use only such products/materials for which it has received a certification from its supplier, or provider of construction services that procures the product/material, certifying compliance with Buy America Build America requirements. This does not include products/materials for which waivers have been granted pursuant to 23 CFR 635.410. The City/Company will not be required to provide the Commission copies of the supplier certification as part of this Agreement or with the final invoice of said Commission’s Federal-Aid Highway Construction Project.

643.2.12.1.2 Vendor/Manufacturer Certification

The City/Company certifies that when determining products/materials subject to Buy America Build America requirements to use in the performance of this Agreement, it shall use only such products/materials for which it has received a certification from its supplier, or provider of construction services that procures the product/material, certifying compliance with Buy America Build America requirements. This does not include products/materials for which waivers have been granted pursuant to 23 CFR 635.410. The City/Company shall provide to the Commission all Buy America compliance documents as outlined in the Commission’s Engineering Policy Guide 643. All required compliance documents shall accompany the final invoice submitted to the Commission.

643.2.12.2 Master Reimbursable Utility Agreements

The UT01: Master Reimbursable Utility Agreement (MRUA) is a statewide agreement that has been executed by the utility owner and the Commission for all future reimbursable utility adjustments between both parties. Once a MRUA is executed, no other utility agreements are required on design-bid-build projects. The district utilities staff should encourage utility owners to enter into a MRUA with the Commission to reduce potential future delays in executing a project specific agreement. A list of previously executed Master Reimbursable Utility Agreements (Modot Access Only) is available. District utilities staff should add newly executed agreements to this list. The MRUA can be employed as either an actual cost (EPG 643.2.12.3.1) or lump sum (EPG 643.2.12.3.2) agreement. When the reimbursable adjustment will utilize a MRUA, the district utilities staff will prepare a MRUA correspondence letter (“letter agreement”) referencing the executed MRUA. A copy of the MRUA correspondence letter should be saved in MoProjects for reference by Financial Services, the district construction office, and the district staff responsible for inspection of utility adjustments. All project specific items such as type of agreement (actual cost or lump sum), plan of adjustment, estimated total cost, cost allocation, and schedule are addressed in the MRUA correspondence letter from the district utilities staff to the utility owner. A flowchart of the MRUA process is available.

643.2.12.3 Project Specific Agreements

If a utility owner does not have a MRUA with the Commission, a project specific agreement will be required for every project for which the Commission is responsible for the necessary adjustments to allow highway construction. The project specific agreement will be either an actual cost (EPG 643.2.12.3.1) or lump sum (EPG 643.2.12.3.2) agreement.

643.2.12.3.1 Actual Cost Agreements

The UT03: Utility Agreement – Actual Cost is used when detailed estimates are not practical or costs appear to be questionable. Details on actual cost estimates can be found at EPG 643.2.9.2.1 Actual Cost Estimates. Once the final invoice on a UT03 is submitted to Financial Services, district utilities staff should change the status on the agreement in eAgreements to completed.

643.2.12.3.2 Lump Sum Agreements

The UT02: Utility Agreement – Lump Sum eliminates the need for keeping detailed records of cost and the auditing of cost records. Estimates of cost must be prepared in detail for use of this agreement. When detailed estimates are not practical or costs appear unreasonable, actual cost agreements are to be used. Use of special forms of agreements, such as "subordination agreements", which are desired by certain utility owners, is acceptable. These, too, must be revised to cover the particular situation. Details on lump sum estimates can be found at EPG 643.2.9.2.2 Lump Sum Estimates. Once the final invoice on a UT02 is submitted to Financial Services, district utilities staff should change the status on the agreement in eAgreements to “completed”.

643.2.12.4 Agreement for Utility Work Included in Roadway Improvement Project

The UT04: Utility Agreement - Actual Cost (For Utility Work That is to be Included in the Missouri Highways and Transportation Commission's Road Project) allows for the adjustment to be based on actual cost with the roadway contractor performing the utility work. Caution should be exercised in the type of utilities to be relocated in roadway contracts. Utilities recommended are waterlines and sewer lines. Other utilities, such as gas lines, communication lines, and power lines are to be studied thoroughly before being included in the project.

The Transportation Project Manager and district utilities staff must plan ahead to get this work in the roadway contract. The utility owner must agree to include the utility adjustment in the roadway contract. The adjustment may be on highway right of way or on private easement in the name of the utility owner. The utility owner can agree to allow MoDOT’s contractor to work in its easement. However, district utilities staff in consultation with district right of way staff should review the easement documentation to verify the utility owner’s rights to the easement and any limitations on its use. MoDOT’s contractor can work and operate on both Commission right of way and on the utility easement, even when not directly connected to the Commission right of way, as part of the job site. Temporary construction easements may be necessary in addition to the utility easement to ensure adequate working room for the contractor.

The utility owner may request exemption to any liability for negligence of our contractor working on their easement. The Commission can assume that liability (refer to Acceptance of Liability Policy), but it should be included in the utility agreement if so desired by the utility owner. A Job Special Provision is necessary to require the MoDOT contractor to hold the utility harmless from all claims due to contractor negligence.

Subsurface information, i.e. boring data, etc., should be obtained by the utility owner since it may be needed for the design of the utility adjustment. This information should be included in the plans. If the utility owner must bear all or part of the cost of the adjustment, the utility owner must agree to pay a pre-deposit to the Commission prior to opening bids on the project. This should be in the utility agreement. The pre-deposit will be credited to the "Missouri Highway and Transportation Commission - Local Fund." Any interest earned in the fund will apply to the cost of the adjustments. The utility agreement will include language that the utility will inspect the installation and assume maintenance of the utility facility after construction. MoDOT will also provide engineering supervision to be sure the road contractor is in compliance with the contract. Utility plans and specifications are to be approved by the owner prior to submittal to the Central Office. The following items will provide minimum information to allow MoDOT’s contractor to bid the work.

1. Individual bid items (not "lump sum") should be established to promote better bidding and to handle overruns and underruns. Bid items not included on the Computer Stored Bid Item list should be "99" numbers.
2. he bid package must be in our letting format. If the package was prepared by a consultant as if the utility owner were going to let it, all bid bond or bidding procedures must be screened to remove requirements contrary to MoDOT letting requirements. District utilities staff should work with the Transportation Project Manager, Design Liaison Engineer, and Central Office Bidding and Contract Services to ensure this requirement is met.
3. The specifications required by the utility owner should be reviewed for items that could cause a bid problem for our contractor. Items such as non-readily available materials or sizes should be avoided.
4. Utility plan sheets should be .pdf files equivalent to 22 in. x 34 in. It is helpful to have a quantity sheet specifically for utility items.
5. Any special procedures required for the utility installation should be included in the Job Special Provisions.
6. The utility package should be submitted on-time to Central Office with other project plans.

643.2.12.5 Agreement for a Utility Only Project

Any of the above agreements can be modified for a utility only project separate from the roadway project. The utility only project may be done by forces hired by the utility owner or by the Commission. A separate utility only project has distinct advantages when the following occurs:

• The utility work is extensive
• It must be performed in accordance with the utility owner’s seasonal requirements
• It extends beyond the limits of the construction project
• It must be performed considerably in advance of the roadway contract

Necessary environmental and design work is still required for the limits of the separate utility only project. It may be necessary in these cases to have a second agreement with the utility owner to cover any other work that must be performed concurrently with the roadway contract. These latter agreements will use the roadway construction job number. Early need for utility projects is to be determined at the time when the STIP is updated each year. The utility construction funds will be shown in the year right of way funds are assigned. This will be done whenever possible to secure early adjustment of utility facilities. A request by the district is sent to the Planning Division. Estimated dollar amounts for utility adjustments are needed. These are estimates and do not need to be extremely accurate. When a special utility project is established, it is preferred, if at all possible, to include all the utility adjustments necessary for the entire roadway project. If funds are available, additional agreements can be added to this utility project until the final invoice for the first completed agreement is received for payment.

643.2.12.6 Supplemental Agreements

For utility owners with a UT01 agreement, a supplemental letter agreement documenting the change in the scope or cost of the work is acceptable.

The UT05: First Supplemental Agreement is used to document changes to UT02 and UT03 agreements. If changes to the scope of work occur that are anticipated to exceed $100,000 or 15% of the original agreement, a UT05 is required. If the final invoice on an actual cost adjustment without changes in the scope of work exceeds the limits shown in the table below, a UT05 is required.

Amount in Original Actual Agreement	Final Bill Total Exceeds Original Amount by:
0-$25,000	50%
$25,000-$100,000	40%
Exceeds $100,000	30%

Should multiple UT05s be required with the same utility owner, the UT05 should be modified for additional supplemental agreements. Once the final invoice on an UT05 is submitted to Financial Services, district utilities staff should change the status on the agreement in eAgreements to “completed”.

643.2.13 Utility Adjustments in Roadway Plans and Job Special Provisions (JSPs)

It is the responsibility of the MoDOT Transportation Project Manager (TPM) to ensure utility plans of adjustment are shown on the project plans at the Plan, Specification, and Estimate (PS&E) stage based upon information coordinated by the district utilities staff with the appropriate utility owner.

643.2.13.1 Plans

A legend showing all applicable utility symbols and the names of the utility owners is shown on the first special utility sheet. In the absence of special utility sheets, this information may be shown on the title sheet or the first plan and profile sheet. The following note is required to be placed on the title sheet or the first plan and profile sheet and the first special utility sheet (if used) to inform contractors of the suitability of the utility information contained on the plans.

"The existence and approximate location of utility facilities known to exist, as shown on the plans, are based on the best information available to the Commission at this time. This information is provided by the Commission "as-is" and the Commission expressly disclaims any representation or warranty as to the completeness, accuracy, or suitability of the information for any use. Reliance upon this information is done at the risk and peril of the user, and the Commission shall not be liable for any damages that may arise from any error in the information".

643.2.13.2 Job Special Provisions

Since the addition of utility information on the plans, supplied by a third party, could subject the Missouri Highway and Transportation Commission to additional liability, a Utility JSP reflecting the status of utility adjustments will be required. The JSP will include the name, address, e-mail address, and telephone number of all utility owner representatives for all utility facilities located on the project. The anticipated adjustment completion date for each utility adjustment is also to be shown based on the agreed upon dates, durations, or completion dates with the utility owner’s representative. This information will inform the bidder of the status of utilities for proper work coordination that could affect the bids for the proposed highway construction project. Status notations will include general notations such as: “N/A”, “Work is in progress”, “Work has not started”, “Work is complete”, and “Work is included in contract.”

643.2.13.3 PS&E Submittal

In the District Final Plans Submittal Checklist (D-12), the TPM should note any issues related to existing utility facilities or the adjustment of utility facilities either shown or not shown on the plans. Projects with “No Utility Impacts” such as some overlays, striping, bridge washing, etc. do not need a Utility Status Letter or Utility JSP. The D-12 is used for these projects. In the D-12, under Project Details – “Utilities”, the note “NO” is selected and under “Status”, select “Clear”. For all other projects, the district utilities staff will write a Utility Status Letter. The TPM will include the Utility Status Letter with the submittal of the final plans to the Design Division. The Utility Status will be defined as:

1. Utility facilities are present, but no conflict is anticipated with the highway construction project. Or,
2. All utility facilities requiring adjustment to allow highway construction have been physically adjusted on the project. Or,
3. Utility construction work is planned or active and will be completed to such a point that no impact will be expected to the highway construction project. The status of this work is defined in the utility JSP. Or,
4. Utility facilities are not expected to be adjusted by the notice to proceed date for the road project, but the utility work will have no impact on the progress of the highway construction project. The status of this work is defined in the utility JSP. Or,
5. Utility facilities must be adjusted after the road contractor completes stage construction or in coordination with the contractors’ work. Details of the coordination effort required of the contractor are defined in the utility JSP to properly advise bidders. Or,

1. Utility adjustment plans and specifications are included in the bid documents for the highway construction project. A UT04 agreement must be executed.

643.2.14 Payment to Utility Companies for Reimbursable Work

Authorization and federal funding obligation must be approved prior to incurring costs. This applies to all types of work on utility facilities including preliminary engineering. An obligation is a commitment by the federal government to reimburse MoDOT for the federal share of a project’s eligible cost.

643.2.14.1 Obligation Process

Federal funding can be used with both lump sum and actual cost agreements. After the utility agreement is fully executed, the district utilities staff will email a copy of the utility agreement or the letter agreement referencing the MRUA to the email group OBLIGATE. This email should request the authorization authority for use of federal funds and to be informed of a Notice to Proceed (NTP) (see EPG 643.2.15) date by Financial Services once federal funding has been obligated. District utilities staff should allow three (3) weeks to receive the NTP. Financial Services will use Advance Construction (AC) funding to fund reimbursement to utility owners. With AC funding, state funds initially are used to pay for reimbursement to utility owners. Once construction is complete, with appropriate documentation of the work via the C-9 and C-13, Financial Services will convert to federal funding.

643.2.14.2 Preliminary Engineering

On occasion, preliminary engineering (PE) may need to be undertaken by the utility owner prior to the execution of a utility agreement. If a utility owner has a MRUA, an estimate of the cost of the PE work by the utility owner may be used to obligate funding for preliminary engineering under the MRUA as a PE only letter agreement. If a lump sum or actual cost agreement will be required with the utility owner for the project, district utilities staff should do two (2) agreements with one agreement covering PE only, and once a design for the adjustment is obtained, a second agreement for the construction of the adjustment should be executed. If a separate PE only agreement is obtained, NTP will need to be issued twice to the utility owner: once for PE and once for construction.

643.2.14.3 Right of Way

Once Notice to Proceed has been given, the utility owner may begin the right of way acquisition process. If the utility owner needs to acquire right of way prior to a full agreement for relocation has been negotiated, the agreement specifically for the acquisition of right of way should be executed. This agreement will be sent to Financial Services to begin the obligation process.

643.2.14.4 Construction

Payment to utility owners for construction of the adjustment may occur in a number of phases.

643.2.14.4.1 Prepayment

Per the utility agreement, the Commission allows utility owners to be prepaid prior to commencing work. The district utilities staff may negotiate the prepayment if the utility owner is receptive. The utility owner will submit a request for prepayment with an invoice prior to any prepayment. Route, county, and job number must be included in the request. The district utilities staff will submit a request to Financial Services with a copy saved in MoProjects for future reference by the district staff responsible for inspection of the utility adjustment.

643.2.14.4.2 Progress Payments

If a utility owner has not been prepaid the entire estimated amount in the utility agreement, then the utility owner may request progress payments after completing a portion of the proposed work, including PE.

Progress payments for PE by consultants should not exceed the "maximum not to exceed amount" shown in the cost estimate unless additional costs are approved first by district utilities staff.

For progress payments, the utility owner is required to submit only a summary of work and materials for which payment is claimed, not a detailed billing. District utilities staff should check only to be sure that sufficient work has been done to justify making the requested payment. Payment should be made for allowable costs incurred up to the date of the progress payment request.

Progress payment invoices do not relieve the utility owner of the responsibility of submitting one complete and final invoice upon completion of the adjustment. The utility owner’s address must be shown on the invoice. The district utilities staff should submit progress payment invoices and applicable C-9s to Financial Services within one (1) week of receipt of invoice.

One copy of the progress payment and one copy of the district utilities staff letter of recommendation must be sent to Financial Services for payment and be stored in MoProjects. The cover memo should include the project number, route, county, actual cost or lump sum utility agreement, Commission obligation percentage, total cost estimate of Commission obligation, and indicate the progress payment number, i.e., progress payment number 1, 2, 3, etc. If more than one progress payment is requested by the utility company, the district should submit progress payment bills to Financial Services in the following format:

Payment	Amount
Progress Payment #1	$50,000
Progress Payment #2	10,000
Total Payment to Date	$60,000

This format will help clarify payment history with the utility owner. Progress payments for actual cost utility agreements may not exceed the Commission's total estimated cost shown in the agreement. However, if the request for a progress payment exceeds the original estimate, a change order with explanation should accompany the request. (See EPG 643.2.16.5 Change Orders.)

643.2.14.4.3 Final Payment

Utility owners are required to submit a detailed final invoice to MoDOT for all actual cost reimbursable utility work and for any lump sum reimbursable utility work that was not prepaid. For prepaid lump agreements, the utility owner must submit a zero-dollar ($0) invoice to demonstrate the work has been completed. After the utility work has been fully completed, the district utilities staff responsible for inspection should send the utility owner a “60 Day” Final Acceptance Letter requesting a complete final invoice within 60 days, as detailed in the utility agreement. If the final invoice is not received from the utility owner within 30 days, then a follow up letter should be sent (i.e., “30 Day” Reminder Final Invoice Letter) reminding the utility owner of its obligation to submit a final invoice within 60 days of the completed work. If a final invoice from the utility owner is not received within this timeframe, then the district utilities staff should contact the Design Liaison Engineer for guidance on how to close out the work.

The district utilities staff is expected to check the final bill within two (2) weeks after receipt in as much detail as possible against the C-9. It is their responsibility to verify from field records the quantities of labor, equipment, material used, material retired, and to justify all changes made. If the utility owner’s contractor made the adjustment at unit cost prices, then it is the district utility staff’s responsibility to verify the number of units completed and not the hours of labor and equipment. It is also important for the utility owner to show the words “final bill” or “final invoice” on the last bill, in order for MoDOT to understand that no additional charges will be made on the adjustment. The final bill must show a general description of the utility adjustment, the highway project number, the date on which work was completed or last item of billed expense was incurred, and the location where records can be audited. The order of items in the final statement should follow as closely as possible the order of items in the original estimate. A summary, on the utility owner’s letterhead, of the total cost of preliminary engineering, construction engineering, right of way, labor, overhead, construction travel expense, transportation, equipment, materials, supply, handling, and salvage credits should be shown in a way that will permit direct comparison with the approved estimate from the original or supplemental agreements (see EPG 643.2.12.6).

If the Actual Cost final invoice shows a much higher cost than the original estimate without scope change, the utility owner is required to give reasons in a letter to the district utilities staff explaining why the invoice cost increased. When the Actual Cost final invoice exceeds the amount shown in the table in EPG 643.2.12.6, a supplemental agreement is required.

When the district utilities staff has determined that the final invoice is accurate, the C-13 should be completed. Once the C-13 is completed, the C-13 and the final invoice from the utility owner are forward to Financial Services. For Actual Cost agreements, the C-9s should also be included in this transmittal. If no additional payments are required, the district utilities staff should note this in the transmittal as well. If the final invoice indicates previous payments to a utility owner exceeded the final invoice, the utility owner will need to send MoDOT a check for the overpayment amount. The check should be made payable to Director of Revenue – Credit State Road Fund. If the utility owner did not send MoDOT an overpayment check with the final invoice, district utilities staff should send a letter to the utility owner requesting the refund amount. Submittal of the final invoice to Financial Services should not occur until repayment has been received. The submittal to Financial Services should note the receipt of the repayment check.

643.2.15 Notice to Proceed

For PE only, once an agreement has been executed, and Financial Services has advised that authorization from FHWA has been received, district utilities staff will issue a notice to proceed (NTP) letter to the utility owner for the PE. For agreements that include PE and construction or once a final agreement for construction has been executed, right of way clearance has been issued, and Financial Services has advised that authorization from FHWA has been received, the district utilities staff will issue NTP to the utility owner for construction. See Example of Notice to Proceed Letter. If salvage credit is part of the agreement with the utility owner, the NTP letter should include a statement that the utility owner will need to inform district utilities staff of the time and place that inspection may be made of the removed material. The utility owner may be held accountable for full value of materials disposed without proper notice. Utility owners may purchase materials prior to NTP for construction; however, no other work on the adjustment necessary to allow highway construction may begin prior to NTP for construction. The utility owner, for reasons of planning their workload or due to seasonal situations, may request early authorization to perform the work. This request, with the district utilities staff recommendations, is sent to the Design Liaison Engineer for further handling, approval, and advancement of the necessary funds. A copy of the NTP should be saved in MoProjects. If a utility owner begins adjustments prior to NTP for construction, district utilities staff should notify the utility owner immediately in writing that reimbursement will not be made for work done prior to NTP for construction.

643.2.16 Construction of Utility Adjustments

643.2.16.1 Utility Owner Self-Perform

As per 23 CFR 645.115 Construction, it may be cost-effective for certain utility adjustments to be performed by a utility owner with its own internal forces and equipment, provided the utility owner is qualified to perform the work in a satisfactory manner. This cost-effectiveness finding covers minor work on the utility owner’s existing utility facilities routinely performed by the utility owner with its own forces.

643.2.16.2 Construction Contract Requirements

When the utility owner is not adequately staffed and equipped to perform such work with its own forces and equipment at a time convenient to coordination with the associated highway construction, such work may be done one of four ways for utility adjustments:

1. MoDOT can provide the construction services, via awarded contract to the lowest qualified bidder based on appropriate solicitation. This can be done by including the adjustment work in the roadway improvement project (EPG 643.2.12.4 Utility Agreement for Utility Work Included in Roadway Improvement Project) or by having a utility only project (EPG 643.2.12.5 Utility Only Project).
2. The utility owner can award a construction contract to the lowest qualified bidder based on appropriate solicitation.
3. The utility owner can utilize an existing continuing contract, provided the costs are reasonable (see EPG 643.2.9.1 Independent Cost Estimate).
4. The utility owner can contract for low-cost incidental work, such as tree trimming and the like, without competitive bidding, provided the costs are reasonable (see EPG 643.2.9.1 Independent Cost Estimate).

When a utility owner chooses option 2 to award its own new construction contract, the utility owner must provide the following documents and information to the district utilities staff. These documents need to be provided as soon as the utility owner has chosen to pursue a construction contract. Document 1 must be supplied by all utility owners. Documents 2 and 3 are only required when the utility owner is a local government agency who is also a political subdivision of the state of Missouri (e.g., city-owned utilities, county-owned utilities). All other utility owners are encouraged, but not required, to provide Documents 2 and 3.

1. A statement that the utility owner is not staffed or able to perform the required construction activities with its own forces.
2. A copy of the request for proposal used to secure bids.
3. A list of a minimum of 3 bidders whom they believe can do the work. Political subdivisions are required to advertise for the work.
4. Upon review of these documents, the district utilities staff will advise the utility owner to proceed with the solicitation of bids, but the utility owner will not be permitted to award the contract without the concurrence of district utilities staff. For lump sum agreements, approval of contract work and subcontract work is not required.

The following documents need to be provided as soon as the utility owner has determined the lowest qualified contractor and would like to award the project. Document 1 must be supplied by all utility owners. Document 2 is only required when the utility owner is a local government agency who is also a political subdivision of the state of Missouri (e.g., city-owned utilities, county-owned utilities). All other utility owners are encouraged, but not required, to provide Document 2.

1. The name address of the lowest qualified contractor.
2. The tabulation of bids received and other information to support their recommendation for award to the lowest qualified bidder.

The district utilities staff will review and approve the utility owner's bid information prior to the award of the contract. The Design Liaison Engineer is available to assist the district with review of bid information if necessary. Once the district utilities staff provides concurrence, the utility owner may proceed with awarding the contract. When the utility owner is a local government agency who is also a political subdivision of the state of Missouri (e.g., city-owned utilities, county-owned utilities), a copy of the executed contract must be shared with the district utilities staff. All other utility owners are encouraged, but not required, to provide a copy of the executed contract.

A checklist is available for reviewing contracts to ensure the contract conforms to MoDOT policy and complies with applicable federal regulations.

When a utility owner chooses to utilize an existing continuing contract, the utility owner will submit a copy of the contract to the district utilities staff. The district utilities staff will review the contract for reasonableness of cost. If district utilities staff and the utility owner’s representative cannot agree on the reasonableness of cost, then the utility owner will be required to award a new construction contract.

643.2.16.3 Inspection

The degree of inspection needed for utility adjustments will vary considerably with the nature and location of the work and whether the Commission is responsible for any portion of the cost of reimbursement. Judgment must be used regarding the manner and regularity of inspection duties. Some phases of the work require a very close check to ensure that the highway will not be adversely affected and to ensure satisfactory performance of work in accordance with the agreement and plans. The degree of inspection may vary from spot checking of overhead installations to continuous close observation of backfilling trenches beneath proposed pavement, embankment area, or adjacent to bridge abutments. Proper inspection can ensure that the utility adjustment is completed as efficiently as possible to minimize future impacts to the utility facility and the highway construction project. A Field Inspection Checklist to assist district utilities staff responsible for inspection is available.

If it is found that any actual cost reimbursable utility adjustment is being performed by unapproved contractors, district utilities staff should direct the work to stop. The utility owner’s representative should be informed immediately and should be advised in writing that the costs incurred by an unapproved contractor are not eligible for reimbursement under provisions of the agreement. The district utilities staff can take appropriate steps to approve a subcontract and advise when the utility owner can recommence work.

643.2.16.4 Documentation

All documents related to the construction of the utility adjustment necessary to allow highway construction should be stored in MoProjects.

Construction records must be kept to confirm that work is done in accordance with the terms of the agreement and in the manner proposed in the plans. The importance of a complete and accurate record cannot be overemphasized. Detailed records are necessary to support the recommendation for payment of the final invoice. A complete, separate daily record must be kept on each actual cost adjustment and submitted for review when the final invoice is recommended for payment. This district utilities staff responsible for inspection should complete the Daily Utility Report (C-9).

643.2.16.4.1 Utility Reports

The Daily Utility Report (Form C-9) and the Final Utility Report (Form C-13) are used for documenting utility adjustments necessary to allow highway construction. The use of C-9s and C-13s will vary with method of reimbursement. For utility adjustments necessary to allow highway construction that overlap with the highway contractor’s work, progress records should be kept as necessary to coordinate the highway and utility construction activities. Sufficient records must be maintained to check and verify the items of labor, equipment, materials, and salvaged items as submitted on the final invoice.

643.2.16.4.1.1 Daily Utility Report (C-9)

C-9s are only required for actual cost agreements. The district utilities staff responsible for inspection must in all cases keep records to document inclement weather, down time, and verbal authorization for minor changes. The district utilities staff responsible for inspection must complete a C-9 documenting the number and classification of employees and number of hours worked. Records of material used and of retired materials returned to stock or scrapped must be kept. The utility owner’s major items of equipment must also be recorded. When work is done by the contract method based on unit prices, the district utilities staff responsible for inspection should ascertain that units of work as provided in the bid proposal are measured and recorded to form a basis for checking the final invoice. C-9s should list the location and the number of units of work accomplished for that period. If contract labor or equipment is used by a utility owner on the basis of a bid per hour, per day, etc., it will be necessary to keep records on this labor or equipment time in the same manner as if the utility owner were performing the work with its own internal forces. District utilities staff responsible for inspection should also note all contractors working for the utility owner and the contractor approval authorization dates given in the agreement.

643.2.16.4.1.2 Final Utility Report (C-13)

C-13s summarize that the utility adjustment work that was done in accordance with the agreement and plans, the percentage of total cost that is the responsibility of the Commission, and any progress payments that have been made. A C-13 is required for both actual cost and lump sum agreements. The requested numbers shown on line 9 (Commission Estimated Cost) and line 10 (Amount of Final Bill) in the report are the Commission’s total responsibility.

643.2.16.4.2 Breakdown and Emergency

When breakdown and emergency situations occur, prior approval by MoDOT is not required for contract or equipment rental work unless the cost or period of time will be extensive. The utility owner should furnish a letter as soon as possible to explain the situation and set out the estimated costs involved. The district utilities staff’s records should substantiate the need and the changes for personnel and equipment.

643.2.16.4.3 Stop Work

If at any point, a stop work order is given by MoDOT to a utility owner, written documentation of the stop work order should be saved in MoProjects.

643.2.16.5 Change Orders

Any change in the plan of adjustment should be documented in writing to the utility owner as a change order. If the change order is anticipated to exceed $100,000 or 15% of the original agreement amount, district utilities staff should negotiate a supplemental agreement with the utility owner’s representative. Once a supplemental agreement is in place, district utilities staff should contact Financial Services to obtain an adjustment of the obligation mid-project. Change orders without supplemental agreements will be settled once the project is complete.

643.2.16.5.1 Actual Cost Agreement

Slight modifications in quantities or the addition of minor items not included with the original agreement do not require a supplemental agreement. However, such changes should be documented in writing with the utility owner. A supplemental agreement is needed if costs exceed the above threshold or if there is a change in the percentage of cost that is the Commission’s responsibility on an agreement with shared responsibility for costs. Intermediate partial payments cannot be made on items in a supplemental agreement until the supplemental agreement is approved.

643.2.16.5.2 Lump Sum Agreement

A supplemental agreement to a Lump Sum Agreement is only required for significant changes in the scope of work of the utility adjustment necessary to allow highway construction. Normal overruns are not considered as changes in approved work and will not be reimbursed. Significant changes in the scope of work on utility adjustments necessary to allow highway construction cannot be done until the supplemental agreement is approved, and the adjustment in obligation of funds is complete.

643.2.17 Utilities during Highway Construction

The contractor is responsible for having utilities located by contacting Missouri One-Call (811) prior to any excavation on the project. A reminder of this responsibility should be made at the preconstruction meeting.

643.2.17.1 Preconstruction Meeting (Pre-Con)

District utilities staff should be invited to all pre-cons.

Pre-cons fall into three categories relating to utilities:

1. No utility adjustments are anticipated within the project limits,
2. All utility adjustments completed prior to the pre-con, and
3. All utility adjustments not completed prior to the pre-con.

643.2.17.1.1 No Utility Adjustments Anticipated within the Project Limits

For projects without a Utility Job Special Provision (JSP), no involvement of the utility owners is required at the pre-con. For projects with a Utility JSP, the Resident Engineer (RE) should invite all utility owner representatives listed in the JSP with known required adjustment to the pre-con. The RE should review potential impacts of the highway construction project with the contractor and the utility owner.

643.2.17.1.2 All Utility Adjustments Completed Prior to the Pre-Con

The RE should invite all utility owner representatives listed in the JSP with known required adjustment to the pre-con. The RE should review potential impacts of the highway construction project with the contractor and the utility owner. A general discussion should highlight the previous adjustments made by the utility owner and what abandoned utility facilities the contractor may encounter.

643.2.17.1.3 All Utility Adjustments Not Completed Prior to the Pre-Con

It is important for the RE and inspector to understand the utility owner’s work schedule and how it relates to the contractor’s work schedule. During the pre-con, the schedule of the utility owner and highway construction contractor should be discussed, and conflicts should be addressed to allow utility adjustments and highway construction to progress as near to the proposed schedule as possible. On large-scale projects that have many utility issues to address that could impact the work of the highway construction contractor, it may be necessary to have a separate pre-con with utility owner representatives.

643.2.17.2 Coordination Meetings

When the utility work will not be completed soon after the preconstruction meeting, the RE should meet with district utilities staff, the highway construction contractor, and the utility owner representatives on a regular basis to discuss utility coordination issues, so expectations from all parties are known and conveyed clearly. The utility owner may need some work performed by MoDOT or the highway construction contractor prior to completing their adjustments. (Examples include: survey staking of right of way or proposed facilities, trees cleared, grading performed, or new structures built).

643.2.18 Service Drops

Power and communication services provided by utility owners are necessary for the operation of the highway system. These services may include power to traffic signals, lighting, or ITS devices; power for cathodic protection; or telecommunication services to signal controllers or ITS devices. The project design teams should work with district utilities staff to identify proper locations for the applicable utility owners to provide these services. Various utility owners have different requirements for this process. The district utilities staff is encouraged to develop a workable relationship with the utility owners who provide these services to MoDOT. The costs of installing the services charged by the utility owner are considered a non-contractual item and should be accounted for in the project’s budget in the STIP. The proposed location and method for the service drops should be shown on the roadway plans. District utilities staff should meet with the utility owner’s representative to ensure the proposed location can be accommodated by the utility owner. For electrical service connections, the power supply assembly is ideally located a maximum of ten feet (10’) from the source location. Plans submitted for PS&E should reflect the agreed upon location for all service connections. During construction, district utilities staff and district construction staff should work together to ensure the placement of the services is consistent with the project plans. Payment for the service drops should be invoiced by the utility owner to the district. District utilities staff is responsible for submission of the invoice directly to Financial Services for payment noting the non-contractual charges for the project.

643.2.19 Buy America Build America for Utilities

FHWA’s Buy America Build America (BABA) policies require a domestic manufacturing process for all steel or iron products, other construction materials, and manufactured products that are permanently incorporated into Federal-Aid Highway construction projects, including products and materials used for adjustments to utility facilities to allow highway construction. These guidelines are for all federally reimbursable transportation projects where FHWA is the lead federal agency; it does not take precedence over projects where Federal Transit Administration or the Federal Railroad Administration is deemed the be the lead federal agency.

643.2.19.1 Program Requirements for Utilities

All MoDOT projects are federal-aid projects, and therefore, all reimbursable utility adjustments are required to follow the provisions of BABA. More information on MoDOT’s BABA policy and procedures can be found in EPG 106.9 Buy America Requirement. Specifically, utility owners should be aware of the following procedures for determining applicability of the EPG 106.9 requirements to reimbursable utility adjustments necessary to allow highway construction:

• BABA does not apply when materials are relocated from one location to another within the project limits.
• BABA does not apply for materials necessary for temporary utility adjustments assuming materials are removed from the right of way upon completion of the utility adjustment to allow highway construction.
• Non-reimbursable work must be kept separate from reimbursable work (agreements, permits, etc.) in order to not be subject to BABA.

643.2.19.2 Certification Requirements for Utilities

Utility owners have the option of choosing either to self-certify BABA compliance or provide vendor/manufacturer certification to MoDOT. The method of certification is chosen by the utility owner and is documented in either the MRUA or the project specific agreement. Regardless of agreement type or certification method, the utility owner must be compliant with BABA requirements.

643.2.19.2.1 BABA Utility Owner Self-Certification

If a utility owner chooses to self-certify BABA compliance, the utility owner is not required to provide MoDOT copies of the supplier certification as part of the project documentation or with the final invoice for any reimbursable utility adjustment necessary to allow highway construction. Retention of all documents should be as described in the agreement.

643.2.19.2.2 BABA Vendor/Manufacturer Certification

If a utility owner chooses to use vendor/manufacturer certification, the utility owner will supply MoDOT BABA compliance from all vendors and/or manufacturers. Certification from vendors will be signed by an authorized representative of the vendor on company letterhead or other acceptable documentation and will declare that all supplied materials subject to BABA requirements are fully compliant. Certification from iron or steel manufacturers must be in the form of a mill test report (MTF) issued and signed by the initial fabricator stating the materials subject to BABA were melted and manufactured in the United States. Other written statements on company letter or other acceptable documentation signed by an authorized representative of the manufacturer for any additional treatment to the fabricated material (such as blasting, galvanizing, painting, or coating) will state that all treatment processes occurred in the United States according to FWA guidelines. Retention of all documents should be as described in the agreement. Manufacturer certification for manufactured products or construction materials will state that all materials were sourced from the United States and were fabricated in the United States. Retention of all documents should be as described in the agreement.