643.2 Local Utility Adjustments - Public and Private
- 1 643.2.1 Introduction
- 1.1 6188.8.131.52 Location of Existing Utilities
- 1.2 6184.108.40.206 Request for Utility Adjustment Plan
- 1.3 6220.127.116.11 Proposed Utility Adjustment Plans
- 1.4 618.104.22.168 Cost Responsibility
- 1.5 622.214.171.124 Right of Way
- 1.6 6126.96.36.199 Service Lines Owned by Property Owners
- 1.7 6188.8.131.52 Notice of Hearing
- 1.8 6184.108.40.206 Agreements
- 1.9 6220.127.116.11 Federal Cost Participation for Reimbursable Utility Relocations
- 1.10 618.104.22.168 Advance Payments
- 1.11 622.214.171.124 City or County Owned Utilities
- 1.12 6126.96.36.199 Utility Plans
- 1.13 6188.8.131.52 Estimates
- 1.13.1 6184.108.40.206.1 Qualifying Statements
- 1.13.2 6220.127.116.11.2 Scope of Work
- 1.13.3 618.104.22.168.3 Betterment
- 1.13.4 622.214.171.124.4 Accrued Depreciation Credit
- 1.13.5 6126.96.36.199.5 Removal and Salvage of Materials
- 1.13.6 6188.8.131.52.6 Cost Records
- 1.13.7 6184.108.40.206.7 Schedule
- 1.13.8 6220.127.116.11.8 Other
- 1.13.9 618.104.22.168.9 Material Costs
- 1.13.10 622.214.171.124.10 Labor Charges
- 1.13.11 6126.96.36.199.11 Overhead Costs
- 1.13.12 6188.8.131.52.12 Equipment Charges
- 1.13.13 6184.108.40.206.13 Removal Costs
- 1.13.14 6220.127.116.11.14 Engineering Costs
- 1.13.15 618.104.22.168.15 Prorating Costs
- 1.14 622.214.171.124 Lightcore, a Centurytel Company, Agreement
- 1.15 6126.96.36.199 Performance of the Work
- 1.16 6188.8.131.52 Utility Permit Application Provisions for Work on MHTC Right of Way
- 1.17 6184.108.40.206 Location of Parallel Utility Facilities
- 1.18 6220.127.116.11 Roadway Plans and Job Special Provisions
- 1.19 618.104.22.168 Changes in Approval Work
- 1.20 622.214.171.124 Final Invoice for Utility Work
- 1.21 6126.96.36.199 Buy America for Utilities
- 1.22 6188.8.131.52 Appropriate Subsurface Utility Engineering (SUE) on Utility Mapping
- 2 643.2.2 Construction Inspection Guidelines for Utilities
- 2.1 6184.108.40.206 Relocation of Utility Facilities
- 2.2 6220.127.116.11 Preconstruction Meetings
- 2.3 618.104.22.168 Authorization to Proceed
- 2.4 622.214.171.124 Utility Contract and Equipment Rental Procedures
- 2.5 6126.96.36.199 Emergency
- 2.6 6188.8.131.52 Field Inspection
- 2.7 6184.108.40.206 Changes in Approved Utility Work
- 2.8 6220.127.116.11 Maintaining Construction Records
- 2.9 618.104.22.168 Payment to Utility Companies for Reimbursable Work
- 2.10 622.214.171.124 Permit Policy
The Missouri Highways and Transportation Commission (MHTC) has established criteria for the uniform handling and the desired location or relocation of utility facilities on the right of way for each type of highway in the state highway system. These criteria are intended to provide maximum safety to the highway user, to preserve the traffic capacity of the roadway and to minimize interference with maintenance activities.
The criteria apply to all public and private utilities, including power transmission, telephone, water, gas, petroleum products, steam, sewer, drainage and other facilities. These utilities involve underground, surface or overhead facilities, either singly or in combination. The criteria applies to utilities located on right of way owned or leased by the utility owners and to utilities on existing public streets, roads and highways which are being included in new highway right of way. The criteria are not intended to impose restrictions on future installations of utility crossings of the roadway that would obstruct the development of areas adjacent to the roadway.
These criteria do not apply to utilities that provide service to facilities required to operate the roadway.
These specific criteria are fully described in EPG 643.3 Policy, Standards and Regulations.
6126.96.36.199 Location of Existing Utilities
The review of existing utilities on a proposed improvement and the determination of the necessity of adjustment is the responsibility of the district with assistance from Design.
The location of existing utilities will be established by a field survey and shown on the roadway plans. Early contact with local utility representatives may be necessary to accurately locate underground facilities.
Each district utility engineer (DUE) shall hold a minimum of one annual meeting with utilities to discuss current STIP projects in their district. The annual meeting shall be held during each years STIP preparations, ideally between January and May. The DUE shall invite all utility companies that have facilities in the district. The intent is to provide the utility companies with an idea of upcoming projects to allow them the opportunity to plan and budget for potential adjustment of their facilities, identify both MoDOT and utility company roadblocks, and develop action plans in order to complete utility relocations better, faster and cheaper.
The DUE, in conjunction with the project manager, is expected to invite and encourage participation of utility company representatives on MoDOT core teams as needed.
6188.8.131.52 Request for Utility Adjustment Plan
Roadway plans are furnished to utility companies (this also includes cities, water and sewer districts and other quasi-public bodies) for use in planning required utility adjustments. All relocations, reimbursable or not, require a plan for utility adjustment furnished by the utility.
A letter transmits the plans so the utility can be informed of the allocation of adjustment costs; if they are to be borne by the utility, by the state or shared by both parties. If any part of the adjustment is reimbursable, they are advised:
- 1. 1. They are authorized to proceed with preliminary engineering (PE) using their own personnel, only if the DUE is confident the PE cost will be under $50,000. If the PE cost is expected to be over $50,000, contact the Design Liaison for assistance. See EPG 6184.108.40.206.1 Preliminary Engineering for guidance on federalizing funds.
- 2. Replacement right of way or easements cannot be purchased without specific approval and authorization.
- 3. No physical adjusting or relocating of their facilities to accommodate the proposed highway improvement is to be performed.
- 4. Any preliminary engineering costs accrued prior to the date of written authorization to proceed will not qualify for reimbursement.
They may employ a consultant to do this work provided they request and obtain PRIOR approval.
A cost summary providing a detailed breakdown of 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.
An estimate of the cost of the utility adjustment provided in as much detail as possible (this is a best estimate similar to what the consultant would use when furnishing their usual proposal for engineering services).
- A statement that the "Certification of Consultant" will be furnished immediately upon award of the contract to the consultant. If the request is for the use of a consultant employed by the utility under a "continuing contract", the "Certification of Consultant" is furnished with the request.
Refer to EPG 6220.127.116.11 Use of Consultants for details.
618.104.22.168 Proposed Utility Adjustment Plans
Utility relocations or adjustments are to be shown on the roadway plan and profile sheets or special utility sheets that will be furnished to the utility for their use. If the utility desires to prepare plans similar to those used for their own work, these plans must contain a legend on the first sheet identifying the utility symbols used. They must also show the existing facilities, their disposition, the location of the new or adjusted 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. The width of right of way at the time of construction of the original utility facility is most important in determining the allocation of cost. Relocated and/or existing 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.
Plans received from the utility company are to be checked for compliance with the MoDOT’s requirements (EPG 643.3 Policy, Standards and Regulations). They are also checked to insure compatibility with the roadway design. Any conflicts are resolved through negotiations with the utility.
It is the responsibility of the MoDOT project manager (PM) to ensure utility relocation plans are shown on the project plans at the plan, specification and estimate (PS&E) stage while the DUE coordinates this information with the appropriate utility company. The PM will make reference, in the District Final Plans Submittal, D-12, of any issue related to existing utility facilities or the relocation of utilities shown or not shown on the plans. 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 will be required.
Effective May 16, 2014, projects with “No Utility Impacts” such as overlays, striping, etc., no longer need a Utility Clearance Certification Letter or Utility Status JSP. The District Final Plans Submittal Form (Form 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".
Occasionally it is impractical to locate 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. The DUE will review the adjustment proposal. If they can recommend it for approval, the outlined procedure and guidance will be used. Their approval is documented by using the Utility Variance Approval Form that is submitted to the Design Division.
622.214.171.124 Cost Responsibility
The allocation of cost for any utility adjustment is determined based upon the information contained in EPG 643.3 Policy, Standards and Regulations.
Adjustments determined to be the sole cost of the utility are to be completed under the terms of a permit issued by the district. A "Waiver of Hearing" statement will be obtained for each adjustment that is the partial or sole cost of the utility (a sample transmittal letter to the utility for the Waiver of Hearing statement is available).
Adjustments determined to be partially or entirely reimbursable by the Commission are to be completed under the terms of an agreement executed between the utility and the Commission.
All utility adjustment work, whether by permit or agreement, will be inspected by the district and the location recorded on the final plans of the project.
6126.96.36.199 Right of Way
The Commission is obligated to acquire only that width of right of way required by the design for the roadway improvement. When utility facilities are located on a company's private right of way, the company may obtain its own new easements. A determination will be made in the planning stage for the roadway improvement whether these easements can be readily obtained. If the company cannot negotiate for new easements or the company’s policy will not permit it to condemn property to obtain the easement, the Commission can acquire the easement in the same manner roadway right of way is obtained. It is the responsibility of the company to request the Commission perform this service. Every effort will be made to establish the need for the Commission to obtain these easements prior to final negotiations with the property owners
It is possible that the utility is located on private land without written easement rights. The Commission will honor this oral right provided acceptable documentation is furnished to Design. An example of acceptable documentation is available. Other forms of documentation will be considered on an individual basis.
The cost of replacement right of way is reimbursable, providing it is included in the plan and estimate supporting the agreement and that the purchase is made either after specific authority is given to purchase right of way or after authorization to proceed with all adjustment work is given. If the company desires, or needs to purchase right of way as part of the utility adjustment prior to MoDOT authorization, this request will be made to the district office. The review and approval process to accomplish this action is described. The request will be supported with two copies of a plan showing the existing location and proposed location of the company's facilities and an estimate of the right of way cost.
Occasionally, when negotiations cannot be completed for easements and adjustment of utility facilities, it will be necessary to condemn for the property. Established procedures require coordination between the Right of Way Section and district personnel (R/W – DUE) of their overlapping responsibilities. District right of way personnel, before filing for condemnation, will determine the status of utility adjustments. At that time, the district must decide whether or not it will be necessary to include the utility company in these condemnation proceedings. This decision will require the exercise of good judgment in reaching the conclusion that further negotiations are futile and condemnation is necessary to maintain the project in the scheduled bid opening.
Easement and other right of way documents used with utility companies are handled in accordance with procedures established jointly with the Right of Way Section and district personnel (R/W – DUE).
Should regulated utility facilities be located on Commission-owned property which is considered "excess" and therefore, subject to conveyance and relinquishment, certain procedures must be followed. These are described in EPG 236.5.12 Excess Land Conveyances & Relinquishments – Regulated Utilities
District right of way personnel prepare land descriptions for use in utility easements. The District Utilities Engineer (DUE) is responsible for the completion of the easements in the correct form and scope. A sketch delineating the area described is attached to the easement for reference purposes only and is generally not to be recorded. This sketch may be very helpful in computing the allocation of cost for future adjustments that may be required. 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 utility easements is to be referenced to the nearest land corner shown on the plans. Examples of easements can be found on the Chief Counsel’s Office (CCO) SharePoint site.
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 companies associated with a roadway improvement while obtaining its own. This would generally be for only the permits and regulatory clearances MoDOT already needs to pursue as a part of the transportation improvement.
When joint permitting and clearances are considered feasible, the DUE (as prompted by the project manager) must contact the utility company early in the project time line (i.e. preliminary plan stage) to identify their easement needs. MoDOT will establish a line of communication with the utility company so that information on known environmental and cultural resources and permitting time constraints can be conveyed. This also enables the utility companies to avoid resources so the project schedule can be met.
Early notification of the utility is mandatory to allow sufficient time for the utility to prepare relocation plans and provide the DUE with appropriate easement needs. As a minimum, the DUE is to verify the utility is aware of MoDOT’s opportunity to acquire the easements and they are to receive a written “yes” or “no” from the utility concerning their desire for MoDOT to acquire the necessary easements.
The project manager must insure proper documentation is received from the utility concerning their easement needs prior to requesting right of way plan approval. The district right of way manager must ensure proper documentation is received before an acquisition date (“A” date) is requested.
The following strategies can be utilized to obtain applicable permits and clearances for both the utilities and MoDOT during project development.
- If utility facilities are moving to a location within or immediately adjacent to MoDOT right of way, a utility 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. MoDOT will share information about resources to be avoided by the utility company as soon as possible.
If the utility is invited to and wants MoDOT to obtain joint permits and clearances, an agreement between the utility and MoDOT should be developed to include the following items:
- 1. List of permits and clearances needed by both MoDOT and the utility company,
- 2. List of the information needed for inclusion in the applications for permits and clearances, and
- 3. Schedule and deadlines for submittal of the information by the utility company (e.g., utility plans, fill quantities, construction methods, dates or seasons of construction).
Permits and clearances that may be needed by both a utility company and MoDOT include:
- Endangered Species Act consultation and clearance
- Section 106 of the National Historic Preservation Act clearance
- Section 6(f) of the Land and Water Conservation Fund Act clearance
- Sections 404 and Section 401 of the Clean Water Act permits
- State Operating Permit (erosion control)
- Recommendations on contaminated soil disposition.
6188.8.131.52 Service Lines Owned by Property Owners
When a proposed project requires utility company-owned facilities to be adjusted or relocated, the service lines may also require adjustment. The Missouri Highways and Transportation Commission will pay to adjust the property owner’s service lines located on existing right of way. While most utility companies reconnect the private service lines at no cost to the property owner, some do not. The cost to reconnect service lines, which lie on or in existing right of way is a not reimbursable item to the utility company. Property owners are to be advised of the possibility of incurring expense to reconnect these lines during the project public hearing and in the offer letter. The cost to the owner to reconnect these service lines cannot be included in the appraised compensation. For additional information see EPG 236.6 Appraisal and Appraisal Review.
For residents living within the boundaries of St. Louis County, the Commission will seek reimbursement from the St. Louis County Water Line Capital Improvement Program for adjustment of service lines supplying four (4) or fewer residential units (Section 66.405, RSMo 2000).
Adjustment of service lines owned by property owners is included in roadway contracts. Bid items for relocating service connections are provided for the different types of anticipated adjustments.
6184.108.40.206 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 CCO (a copy is provided to the Design Division) requesting a hearing date. The 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. In order 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 an additional property owner 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 the 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. The CCO will assign an attorney to work with the district and present the case.
Standard Utility Agreements have been approved by the CCO. They are identified in the upper left hand corner of each agreement such as CCO Form: UT1 (Master Reimbursable Utility Agreement). The CCO updates these agreements as necessary. They serve as a guide in the preparation of the agreement to be executed with the utility company for the adjustments required to their facilities to accommodate the proposed roadway improvement project. Be sure you use the up to date version before sending a copy to the company. A list of utility agreements is available. Detailed information concerning the sequence for preparing and executing a project agreement is available in EPG 235.2.3 Project Agreements. The DUE will encourage utility companies to use a MRUA.
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. Drafts of agreements having major revisions or complications are to be submitted, with supporting data, to Design for comment and approval.
A reference to 23 CFR 645 is included in all agreements. Utility companies must be acquainted with these requirements and procedures. The incorporation of FAPG 23 CFR 645A 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 and submitted to the company for execution. The agreement must be signed, sealed and notarized by the utility company. If they do not have or use a corporate seal, write "NO SEAL" under the signatures of the company’s officers. The agreement is based on the company's plan and estimate of cost which was prepared in accordance with 23 CFR 645. Exhibit "A" referred to in the agreement is the company's plan of adjustment. Exhibit "B" is the estimate of cost with supporting statements as prepared by the company. The company or municipal officials will execute the agreement. All copies will be forwarded to the Chief Counsel’s Office for further handling. Agreements with cities are to be supported by city ordinance, a copy of which is to be submitted with the executed agreements. One fully executed copy of the agreement will be retained in Design’s files. The remaining fully executed agreements will be returned to the district after approval. A copy of the executed agreement will be provided to district construction personnel for use during the adjustment period. One copy will be provided to the owner of the utility.
Authorization to proceed with the adjustment of the utility is furnished to the owner once the fully executed agreement is returned to the district. The company's copy of the fully executed agreement, along with one copy of the plan and estimate of cost, will be transmitted to them by letter with specific instructions concerning "authorization to proceed". Utility relocation work can be authorized to begin as long as right of way or construction funds are shown in the current year of the Statewide Transportation Improvement Program. See EPG 6220.127.116.11.2 Utility Agreement about how to obligate funds for federal funding. It is important to note that if federal funds will be used in the reimbursement, the funds must be obligated prior to giving a notice to proceed or incurring cost. If authorization has not been given, they will be advised that materials may be ordered but that no work is to be performed until they are given written notice to proceed. The company, for reasons of planning their workload or due to seasonal situations, may request early authorization to perform the work. This request, with the district's recommendations, is sent to the Design Division for advancement of the necessary funds, further handling and approval.
A utility only project, separate from the roadway improvement project, has distinct advantages when the following occurs:
- The utility work is extensive
- It must be performed in accordance with company's seasonal requirements
- It extends beyond the limits of the construction project
- It must be performed considerably in advance of the roadway contract
The length of the utility project will not exceed the limits of the right of way project. It may be necessary in these cases to have a second agreement with the company to cover 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 SIMS (STIP Information Management System) 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 to 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.
618.104.22.168.1 Lump Sum Agreements
The use of a UT02 "lump sum" utility agreement is preferred. Use of this agreement 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. The advantages of using a "lump sum" agreement will be discussed with the company that requests the use of "actual cost" agreement. Use of special forms of agreements, such as "subordination agreements", which are desired by certain companies, is acceptable. These, too, must be revised to cover the particular situation.
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 to the existing facility that is located on private right of way for which the Commission is obligated to reimburse the utility.
A final audit of the costs for an adjustment is not required for reimbursement of lump sum contracts. The utility's final invoice is submitted for payment after district personnel receive certification that the work was completed in accordance with the approved plan.
Lump sum estimates are limited to a maximum of $200,000 of Commission obligation; 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 obligation is extremely small.
An example of a lump sum estimate is available.
622.214.171.124.2 Actual Cost Agreements
Actual cost agreements are acceptable when detailed estimates are not practical or costs appear to be questionable.
Actual Cost Estimates
These estimates are prepared in sufficient detail to determine the reasonable expected cost of the work. Reimbursement is based on the actual costs with a final audit of the company's cost records eliminating the need for every nut and bolt to be shown in the estimate. The total adjustment to be performed must usually be detailed in these estimates even though the existing facility is "partly" on private right of way. Normally, the work to accomplish utility adjustments cannot be separated so that cost records will reflect actual costs of work on private right of way from work on public right of way. By establishing a percentage obligation, there is no time lost or unnecessary recording costs and operations. An example of an actual cost estimate is available.
Detailed records of materials, labor and equipment are maintained by project office personnel during construction if the utility relocation is performed by the utility company’s own forces. If bids are taken for adjustment of the utility using bid items with unit prices, then records of quantities of each bid item used is all that is maintained. If a utility company’s ongoing contractor performs the relocation, records will be maintained that are consistent with the method of pay in the ongoing contract.
6126.96.36.199.3 Master Reimbursable Utility Agreements
This is a generic agreement that addresses all future reimbursable utility relocations between a particular utility company and the Commission. Once a MRUA is executed, no other utility agreements are executed. All project specific items such as type of agreement (lump sum or actual cost), estimated total cost, and cost allocation are addressed in the letter from the DUE to the utility company.
6188.8.131.52.4 Utility Agreement for Utility Work Included in Roadway Improvement Project
This agreement allows for final reimbursement for the adjustment to be based on actual cost. The roadway contractor will perform the utility work (either water or sewer). Records of quantities of each bid item are all that is maintained. If a substantial change is made in the original plan and extent of work, a change order having the utility company’s and MoDOT’s approval is needed.
The project manager and District Utility Engineer must plan ahead to get this work in the roadway contract. Guidelines for including utility work in the roadway contract plans are available.
6184.108.40.206 Federal Cost Participation for Reimbursable Utility Relocations
6220.127.116.11.1 Preliminary Engineering
Authorization and federal funding obligation must be approved prior to incurring costs. This applies to all types of work including preliminary engineering. If preliminary engineering (PE) costs will be incurred prior to the execution of the utility agreement, proceed using the following guidelines. If the estimated PE cost is less than fifty thousand dollars ($50,000), use state fund reimbursement for this portion of the utility relocation project. If the estimated PE cost is greater than fifty thousand dollars ($50,000), the District Utility Engineer (DUE) should contact the Design Liaison to assist in getting early approval for federal participation for the PE portion of the utility relocation project.
618.104.22.168.2 Utility Agreement
Authorization and federal funding obligation must be approved prior to incurring costs. This applies to all types of work including utilities. An obligation is a commitment by the federal government to reimburse MoDOT for the federal share of a project’s eligible cost. The process for getting FHWA obligation approval is outlined as follows. After the Utility Agreement is fully executed, the DUE will email a copy of the Utility Agreement or the Project Letter referencing the Master Reimbursable Utility Agreement to the email group OBLIGATE. This email should request the authorization authority for use of Federal Funds and request the Notice to Proceed Date (NTP) to maintain the project schedule. Allow three (3) weeks to get the funds obligated from FHWA. Financial Services will contact the DUE by email when the funds are obligated and the DUE can give the Utility Company the NTP. If needed in less than three (3) weeks, the DUE should contact the Design Liaison to assist in expediting the process.
622.214.171.124 Advance Payments
Arrangements for making advance payments (before work commences) to utility companies are included in all agreements. If a company doesn’t want advance payments, or if the DUE determines it is in the best interest of MHTC, the company can be reimbursed after all the work is complete. The language in the agreement must be altered to reflect the payment method if it is in a form other than prepayment.
The utility company will submit a request for prepayment with an invoice prior to any advance payments. Route, county, and job number must be included in the request. The DUE will submit this request to to Financial Services with copies sent to district construction and the resident engineer.
Prepayment may be made on projects participating in federal reimbursement if FHWA authorization authority has been obtained prior to the Notice to Proceed date issued to the utility company.
The final bill for the completed adjustment of actual cost agreements must include a detailed statement of costs for all stages of construction.
6126.96.36.199 City or County Owned Utilities
When roadway improvements are within the corporate limits of cities, towns, and villages, a municipal agreement is negotiated between MHTC and the municipality. Likewise, when roadway improvements are within the limits of a county and outside the municipal limits, a county agreement must be negotiated between the MHTC and the county commission. Included in these agreements are provisions regarding reimbursement for adjusting city or county owned facilities. Normally reimbursement is provided for adjustment of city or county owned facilities that are now located on city or county streets and not on state highway right of way. Proper reference to the municipal or county agreement for authority for payment will be made in the utility agreement.
6188.8.131.52 Utility Plans
Plans for of utility adjustment are identified as "Exhibit A" to the agreement. The plans are prepared as previously discussed discussed in EPG 6184.108.40.206 Proposed Utility Adjustment Plans. They must contain sufficient details concerning location, elevation, compaction, clean up, etc. to provide for the proper adjustment of the utility. When preparing a standard agreement (i.e. Lump Sum or Actual Cost agreements) use the MHTC Contract Submittal Form to submit the set of the plans as Exhibit A to CCO together with sufficient copies of the agreement. When preparing documentation for a relocation executed under a MRUA, include exhibit A with the letter to the utility company as well as the letter to Financial Services requesting payment.
When the plans are too bulky to attach to the agreement, an identification stamp (filled in completely except for the date), as shown below, is placed on the first sheet of the plans:
Part of Contract dated ____________________ Between Highways and Transportation Commission and ____________________ Route, ____________________, County, ____________________ Job No. ____________________ Sheet 1 of ____________________
Estimates of cost are identified as "Exhibit B" to the agreement.
District personnel negotiate with local utilities, cities and interstate pipeline companies to determine reimbursable costs of adjustments required to their facilities (EPG 643.3.7 Allocation of Cost). These estimates are prepared in accordance with the provisions of FAPG 23 CFR 645A and any amendment thereto. These estimates must reflect the same procedures and costs used by the companies in their normal operations and must also accurately represent the expected costs of the work.
The utility's estimate will be reviewed by the District Utility Engineer to ensure compliance with FAPG 23 CFR 645A. When preparing a standard agreement (i.e. Lump Sum or Actual Cost agreements) use the MHTC Contract Submittal Form to submit the estimate to CCO together with sufficient copies of the agreement. When preparing documentation for a relocation executed under a MRUA, include exhibit B with the letter to the utility company as well as the letter to the Controller’s Office requesting payment.
The District Utility Engineer (DUE) performs a pre-audit review and approval prior to preparation of the agreement. A pre-audit checklist should be filled out and saved in the project file.
EPG 6220.127.116.11.1 through EPG 618.104.22.168.15 should or may be used as part of an estimate.
622.214.171.124.1 Qualifying Statements
To supplement the agreement and support the costs set out in the estimate, the utility company must furnish statements concerning the scope of work, betterment, salvage credit, location of cost records, schedule, and additional costs that will add to an understanding of the work. These statements may involve use of bypasses, special equipment, need for larger facilities, etc. It is preferred that these statements be a part of the estimate of cost.
6126.96.36.199.2 Scope of Work
This is a concise summary of the work to be performed. An example is "an estimate of cost covering the work of relocating Company's 12–inch Cushing-Woodriver pipe line to accommodate construction of Route 47 in Franklin County on Job No. J6P0172".
This means the upgrading of the facility being relocated, made solely for the benefit of and at the election of the utility and it is not attributable to the roadway improvement. Credit to MHTC is required for the additional costs incurred for the betterments introduced in the adjusted facility. Additional costs incurred by the utility required to comply with established governmental or industry codes are not considered betterments. However, in some of these cases the utility may realize a more capable or valuable facility. The company must furnish full details and documentation pertaining to the requirements of compliance with established codes that have resulted in the additional cost if an exception for betterment credit is requested. Reimbursement to the company for additional costs incurred due to adherence to these codes does not preclude the necessity of accrued depreciation credits as discussed in the next paragraph.
Following are some example statements concerning betterments:
- The proposed 16 in. size main is necessary to replace the function of the existing 10 in. size main because of additional length and bends. No significant increase in capacity is being achieved and there will be no service improvements; therefore, betterment credits are not being given.
- Comparative estimates have been prepared for prorating the cost of constructing a replacement-in-kind facility and the company desired bettered facility.
- Attached is a copy of City Code Number xx that requires this company, in replacing any of its facilities used in fire protection, to install a minimum size main. No betterments are involved in this adjustment.
6188.8.131.52.4 Accrued Depreciation Credit
Credit is required for the accrued depreciation of a utility’s 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 use of the following formula:
6184.108.40.206.5 Removal and Salvage of Materials
This statement, to explain the salvage credit or lack of credit, will reflect routine company policy as well as the particular situation. For example:
- Existing 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 facilities, even though the cost of removal will exceed allowable credit for salvage.
- Salvage credits are in accordance with established company accounting procedures.
6220.127.116.11.6 Cost Records
This statement concerns the location of the company's cost records. An example: "Company cost records will be available in our office at 2134 Industrial Avenue, Tulsa, Oklahoma".
The utility company will provide a work schedule to the DUE showing approximate start date and completion time.
Additional statements will explain or further clarify the work that is included.
618.104.22.168.9 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 company'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 company's regular operations. A handling charge conforming with the company's regular procedures may also be included.
622.214.171.124.10 Labor Charges
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 company'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.
6126.96.36.199.11 Overhead Costs
This charge is usually a percentage of the total labor cost. Rental equipment rates, in most cases, include this cost. This item must be in accordance with the company's established accounting procedures, which in some cases may include handling costs or be a percentage of the total cost of the work involved.
6188.8.131.52.12 Equipment Charges
A description of the equipment to be used must be shown together with the number of hours to be charged. Rates charged for equipment usage must be justified by company's established accounting procedures. When the company does not have an established accounting procedure or a capitalization and depreciation schedule that is used in their own operations, the rates are to be established by the company subject to approval by MoDOT. These rates may 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 company's request.
Equipment may be rented when company-owned equipment is not available or is inadequate, with the rental rate justified by appropriate solicitation of bids.
Unusual accounting procedures may be accepted with adequate prior explanations and approval of Design.
6184.108.40.206.13 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 will be made to persuade the company to abandon the facilities in place. An exception is made when the utility company is required to remove abandoned facilities because of company liability, because of hazards, or by specific agreement with the Commission. Abandoned facilities can be included with the miscellaneous removals in the roadway contract. It may be possible for the company to remove those portions of the facility for which credits will exceed removal costs, with the remainder of the facility to be abandoned for removal in the roadway contract. Materials removed must be itemized, with the company's customary salvage credit given. Items to be scrapped or junked will be indicated. Whenever a facility or portion thereof is shown to be abandoned on the plans, a letter from the company to that effect must be on file in the district's project records. This eliminates ownership problems if these 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 an utility adjustment. When handled as a right of way item, the damages allowed are to equal the depreciated value of the facility, with the necessary removals being accomplished by the roadway contractor. If accomplished as a utility adjustment, the MHTC, by utility agreement, will reimburse the company for removal costs and receive salvage credit for the material removed, up to but not exceeding removal costs. Normally, the cost of removal of service lines is not reimbursable, because in most cases the utility company does not hold a written easement that establishes a compensable interest in these areas.
6220.127.116.11.14 Engineering Costs
Costs of engineering, whether preliminary or construction, must be shown as a separate item and are not to be included with "labor costs". Concurrent cost accounting procedures of the FHWA and MoDOT make this a necessity.
618.104.22.168.15 Prorating Costs
The need for prorating utility adjustment costs occurs when the adjustment involves work to be paid for by the MHTC and work to be done at the expense of the utility. Generally the two following conditions require this division of cost:
- The existing facility occupies both public and private right of way.
- Betterments are included in the necessary replacement facility.
Normally, the procedure for prorating costs for facilities located partly on the public and partly on private right of way is based on the individual lengths affected on public and private right of way. When confronted with pole lines, a count of existing poles affected by the roadway construction on and off public right of way, can be used in lieu of the length of facility. When the existing length or pole count methods are unsuitable to meet conditions, a variation in prorating procedures may be negotiated between the company and the MHTC.
When the adjustment involves betterments, the percentage determination is normally calculated by the fractional results of comparative estimates; one estimate reflecting the cost of the replacement-in-kind facility and the other being an estimate of the bettered facilities.
The following are examples of methods of determining pro rata costs:
- Pole line partly on and partly off public right of way. Ninety-five poles are to be adjusted, with 25 being located on public property. 25/95 = 0.26 or 26% company cost; therefore, 74% is MHTC cost.
- Pipeline adjustment. 585 ft. of pipeline to be adjusted, with 66 ft. located on public right of way. 66/585 = 0.11 or 11% company cost; therefore, 89% MHTC cost.
- Pro rata cost due to betterments. Cost of replacement-in-kind facility, $10,000. Cost of utility- selected facility, $20,000. MHTC's obligation, 50%.
622.214.171.124 Lightcore, a Centurytel Company, Agreement
|Amended and Restated Fiber Optice Cable on Freeways in Missouri Agreement|
|Please especially note Section 7 Exclusivity.|
LightCore and MHTC have entered into a partnership agreement, “Amended and Restated Fiber Optic Cable on Freeway in Missouri,” executed June 5, 2003. Special utility rules apply to LightCore in accordance with this agreement on designated routes.
6126.96.36.199 Performance of the Work
Generally the utility will perform the work with its own personnel and equipment. Most telephone companies don't have enough staff to do this, so they contract the work to others. When the utility is not adequately staffed or equipped to do so, and all or part of the cost of the work is reimbursable, the work may be done by contract using the following procedures:
- The utility will advise the district in writing of their need to contract all or a portion of the work because they are not staffed or equipped to do so themselves. The district will advise the utility to proceed with the solicitation of bids, but they will not be permitted to award the contract without concurrence of the DUE.
- The utility will develop and document a list of bidders (minimum of 3) whom they believe can do the work. Cities and some other utilities such as water districts may be required to advertise for the work. This procedure is satisfactory.
- The utility will furnish the district a tabulation of bids received, two (2) copies of the proposal used in securing the bids, and any other information to support their recommendation for award to the lowest qualified bidder.
- The district will review and approve the utility's bid information prior to the award of the contract. The Design Division is available to assist the district with review of bid information if necessary.
- The utility may wish to utilize a contractor they have retained for their on-going work (a continuing contract). If so, the utility will submit a copy of this contract to the district. The District Utility Engineer will review the contract for reasonableness of cost.
Low cost incidental work such as tree trimming and sidewalk replacement may be performed by contract without competitive bidding provided the district considers the cost to be reasonable.
Adjustments of utility facilities must be closely coordinated with the roadway contract work. When it is to the Commission's advantage, the adjustment of utility facilities may be included in the roadway contract. Such work may include water and sewer facilities. Generally, this is used when the cost of the work is to be borne mostly or entirely by the Commission. Plan ahead to get this work in the roadway contract. Guidelines for including utility work in the roadway contract plans are available.
Frequently it will be expedient and/or economical to adjust critical, large, or seasonal utility facilities well in advance of the roadway improvement contract. The district office is encouraged to program utility adjustments prior to the anticipated year of construction of the project. Usually, the utility project is programmed in the year right of way is authorized.
6188.8.131.52 Utility Permit Application Provisions for Work on MHTC Right of Way
When an applicant for a utility permit desires to work on the right of way of an interstate and other limited access roadway, they must agree, if permission is granted, to install, maintain, and service their facilities without entering or leaving the through traffic roadway and the interchange ramps except at points provided specifically for that purpose. In addition, they agree to not park any equipment or store any materials on the median, the through roadway, the shoulders and the ramps of the facility. A temporary support pole to facilitate an aerial crossing may be placed in the median of the facility provided it is stipulated on the face of the permit application and adequate flaggers or law enforcement officers are utilized to protect the traveling public while the support pole is in place. Support poles will not be permitted within 30 foot of the edge of the travelway. The support poles must be removed from the facility within one week unless otherwise specifically permitted by the district engineer.
6184.108.40.206 Location of Parallel Utility Facilities
The permit applicant is expected to determine the location of the Commission's right of way from Commission's plans. Upon written request and adequate advance notice, the Commission will re-establish missing right of way markers. This will be accomplished on a permit-by-permit basis and then only if Commission has adequate personnel available.
Any right of way markers damaged, disturbed, or destroyed during permit operations will be re-established by a registered land surveyor at the permit applicant’s expense.
The permit applicant will be responsible for staking between highway right of way markers as needed to assure accurate and uniform installation of the parallel facilities in the utility corridor.
The permit applicant will provide adequate protection and marking of their underground facilities as follows:
- Warning signs will be installed at the right of way lines at road crossings (all underground utilities).
- For parallel underground facilities, warning signs will be installed and maintained at the right of way lines showing the offset location of the utility when the utility is permitted to locate beyond the normal six foot wide utility corridor.
The permit applicant will construct the utility facility in such a manner that it may be accurately located both horizontally and vertically after installation. A detectable tape or trace wire will be installed with non-metallic buried facilities. Wherever feasible the metallic tracer line will be a part of the utility facility. Acceptable alternatives will be considered for approval.
All voids resulting from boring casing or other facilities under the roadway or approaches will be filled to the satisfaction of the district engineer. The district engineer must approve the method and materials.
Manhole covers will be installed as flush as possible with the finished ground line so maintenance vehicles and equipment may operate over them.
The permit applicant will protect highway plant materials, including trees and shrubs. These items including turf disturbed by the applicant’s work will be restored as directed by the district engineer. Trees and shrubs will not be trimmed, cut, moved or sprayed without specific permission from the district engineer.
6220.127.116.11 Roadway Plans and Job Special Provisions
A legend showing all applicable utility symbols and the names of the utility companies 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 Job Special Provisions will include the name, address and telephone number of all utilities located on the project. The anticipated relocation completion date of each utility is also to be shown based on written dates, duration, or completion dates from the utility. This information will inform the bidder of the status of utilities for proper work coordination that could affect the bids for the proposed improvement. 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.
Effective May 16, 2014, projects with “No Utility Impacts” such as overlays, striping, etc., no longer need a Utility Clearance Certification Letter or Utility Status JSP. The District Final Plans Submittal Form (Form 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".
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".
618.104.22.168 Changes in Approval Work
When changes are necessary to previously approved utility work the following information will be considered.
Funds required for an overrun of an actual cost or lump sum utility agreement will need to obligate federal funds as outlined in EPG 622.214.171.124.2 Utility Agreement.
Actual Cost Utility Agreement
- When a substantial change is made to the original utility relocation plan, a supplemental agreement (MOU) should be executed to document this change to the original agreement. If uncertain if the change in work is substantial, execute a supplemental agreement.
- Slight modifications in quantities do not substantiate a supplemental agreement.
- The addition of minor items not included in the approve estimate does not substantiate a supplemental agreement.
- A supplemental agreement is needed if there is a change in the percentage of cost that is the Commission’s obligation. (i.e., agreement indicates 50% obligation of Commission, additional work is to be 100% obligation of Commission, this must be documented on a supplemental agreement)
Lump Sum Utility Agreement
- Any change in the original scope of a utility relocation requires a supplemental agreement.
- Normal overruns are not considered as changes in approved work and will not be reimbursed.
- Underestimating materials, labor or equipment is not considered a change in approved work and will not be reimbursed.
Utility Agreement for Work Included in Road Project
- Handle changes in utility work the same as changes in road work.
- Change orders for utility work will be accomplished through the roadway contractor.
Please see EPG 6126.96.36.199.1 Changes in Approved Utility Work Not Included in the Road Contract for more information.
6188.8.131.52 Final Invoice for Utility Work
Utility Companies are required to submit a final invoice to MoDOT for all actual cost reimbursable utility work and for any lump sum reimbursable utility work that was not prepaid. After the utility work has been fully completed, the resident engineer (RE) should send the utility company 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 company within 30 days, then the RE should send a follow-up letter (i.e., “30 Day” Reminder Final Invoice Letter) reminding the utility of its obligation to submit a final invoice within 60 days of the completed work. If the RE does not receive a final invoice from the utility company within this timeframe, then the RE should contact the district utility engineer (DUE) for guidance on how to close out the work.
The RE office is expected to check the final bill within two weeks after receipt in as much detail as possible. It is their responsibility to verify from field records the quantities of labor, equipment, material used, material retired, and to justify all changes made. They should also note all subcontractors working for the utility company and the subcontractor approval authorization dates given by the DUE. If the utility’s contractor made the adjustment at unit cost prices, then it is the RE’s responsibility to verify the number of units completed and not the hours of labor and equipment. It is also important for the utility to show the words “final bill” or “final invoice” on the last bill, in order for MoDOT to understand which bill is the last and final. The order of items in the final statement will follow as closely as possible the order of items in the original estimate. A summary, on the utility company'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.
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 RE is not expected to verify such items as overhead expenses, preliminary engineering, equipment rate, labor rate, etc. If the utility is using computerized billing procedures, it may be difficult to compare all the items in the final invoice to the original detailed estimate. The RE should note any questionable items in the final bill in the transmittal memo to the DUE.
After the RE office checks the final invoice and determines the utility has been overpaid, then the utility company will need to send MoDOT a check for the overpayment amount. The check should be drafted to “Director of Revenue-Credit Road Fund”. If the utility company did not send MoDOT an overpayment check with the final invoice then the RE should send a letter to the utility company requesting the over-payment check.
After the RE office review of the final invoice is complete, the RE should complete a Form C-13, Final Utility Report. This form shows the minimum information required by the RE. The requested numbers shown on line 10 (Commission Estimated Cost) and line 11 (Amount of Final Bill) in the report are Commission obligation totals. If the final invoice varies considerably from the original estimate, the reason should be documented on the attachments of the Final Utility Report. Any intermediate payments should also be noted on the Final Utility Report. This additional information might be helpful to the MoDOT auditor.
The utility diary book or the Daily Utility Report, Form C-9, is to be submitted with the final utility report to Financial Services for all actual cost adjustments, but not for lump sum adjustments. All utility work (actual cost and lump sum) needs to be closed out by the RE office.
The RE’s memo should note any overpayments requested and if payment was received. This cover memo should be sent to the DUE and should include the project number, route, county, actual cost or lump sum utility agreement, Commission obligation (%), total, cost estimate of Commission obligation and recommendation of payment or amount of overpayment received. The DUE will review the final paper work for accuracy and completion, if acceptable, and within 30 days of receipt, sign the Final Utility Report and forward the RE memo, Final Utility Report, Daily Utility Reports (if required), and Final Invoice to Financial Services with a copy for the district construction office.
The Commission may be obligated for construction costs to connect power or phone service to MoDOT facilities. District design works with utility companies to account for this work. These reimbursable costs may include the following items: power to traffic signals, lighting facilities, ITS, cathodic protection or phone service to controllers among other MoDOT facilities. The District Utility Engineer is responsible for submission of these costs for payment directly to Financial Services. The memo should include the bill and a transmittal letter approving the cost. A copy of this memo should also be sent to the DUE, the district construction office and the district traffic office.
6184.108.40.206 Buy America for Utilities
The FHWA's Buy America policies require a domestic manufacturing process for all steel or iron products that are permanently incorporated in a Federal-Aid Highway construction project, including utility materials. Below are the Buy America (BA) guidelines and BA certification requirements for utility companies in the State of Missouri.
6220.127.116.11.1 Buy America Guidelines for Utilities
These BA guidelines are to be used by utilities for the purpose of defining the BA requirements for utility relocations in the state of Missouri. These guidelines are for all federally eligible transportation projects where Federal Highway Administration (FHWA) is the lead federal agency; it does not take precedence over projects where Federal Transit Administration (FTA) or the Federal Railroad Administration (FRA) is deemed the be the lead federal agency.
Missouri Highway Transportation Commission (MHTC) will implement BA utility relocation activities required for highway transportation projects as follows:
- The following materials, when comprised of more than 90% steel or iron are subject to BA compliance:
- - Poles & cross arms;
- - Pipe and valves (except as stated below);
- - High-strength bolts, anchor bolts and anchor rods;
- - Girders used to comprise transmission towers, stand-alone structures, lattice towers;
- - Rebar and other reinforcing iron/steel for all cast-in-place and precast installations;
- - Conduit and ducting;
- - Fire Hydrants;
- - Manhole covers and rims; drop-inlet grates and risers.
- BA does not apply to assembly materials, attachment materials, miscellaneous electronics, or encasements, as defined below in EPG 618.104.22.168.3 Buy America for Utilities Definitions.
- BA does not apply to any associated materials (including spare materials) required for maintenance.
- BA does not apply to existing utility materials that are relocated from one location to another within the project limits. Any new materials are subject to BA.
- BA does not apply to any materials necessary to repair equipment that was discovered or damaged during construction and required immediate action to restore to safe conditions or to minimize adverse public impact.
- BA does not apply to associated materials necessary for temporary utility relocation.
- BA does not apply if the utility relocation is a not eligible for federal reimbursement (non-reimbursable as defined in EPG 643 Utility Procedures). For example, if the utility owner is required to pay for 100% of the entire relocation effort, then the materials associated with that specific relocation are not subject to BA. However, all such work must remain separate from and cannot be accomplished under a utility agreement or contract that includes work eligible for Federal reimbursement.
- If the project sponsor does not wish to subject betterment materials (as defined below in EPG 622.214.171.124.3 Buy America for Utilities Definitions) to BA provisions, then the betterment must be excluded from the utility contract that includes work eligible for federal reimbursement.
- Per 23 CFR 635.410, Non-domestic iron and steel materials can be used provided the cost of such materials do not exceed one-tenth of one percent (0.1%) of the individual utility contract amount, or $2,500.00, whichever is greater.
- Per 23 CFR 635.410, the work to be performed under the utility contract may include foreign iron and steel products if the cost of the BA compliant materials will cause the cost of the work to increase by at least 25%. To determine applicability of this provision, one of the following two procedures shall be used:
- - If the utility company will use a contractor to perform the work included in the utility contract, the following procedures apply: demonstration of meeting the 25% excess cost requirement must be accomplished by receiving two separate bids each from at least two qualified contractors for the work. Requests for bids from qualified contractors must conform to 23 CFR 635.410 (b)(3). One bid from each contactor will include a cost of performing the work described in the utility contract using BA compliant material and the other bid will include a cost for the same work assuming foreign materials. If the bid with the BA compliant materials is at least 25% greater than the bid that includes foreign materials, then the contract can be awarded to the lowest bid based on materials that are not BA compliant.
- - If the utility company will perform work in the utility contract with its own forces, the following procedures apply: demonstrations of meeting the 25% excess cost requirement must be accomplished by receiving two separate bids from vendors or manufacturers listing the cost of BA compliant materials on one bid document and listing the cost of non-compliant materials on a separate bid document. The utility company will take the cost of the BA complaint materials and use it to create the total estimated cost of the work included in the utility contract. The utility company will do the same with the cost of the non-compliant materials. If the cost of the work included in the utility contract with BA compliant materials is at least 25% greater than the cost using the materials that are not compliant with BA, then the non-compliant materials may be used.
6126.96.36.199.2 Buy America Certification Requirement for Utilities
These BA certification requirements are to be used by utilities for the purpose of defining BA certification methods for utility relocations in the state of Missouri. These certification requirements are for all federally eligible transportation projects where Federal Highway Administration (FHWA) is the lead federal agency; it does not take precedence over projects where Federal Transit Administration (FTA) or the Federal Railroad Administration (FRA) is deemed the be the lead federal agency.
Missouri Highway Transportation Commission (MHTC) will implement BA certification requirements for highway transportation projects by using one of the following two certification methods that is chosen by the utility company:
Buy America Utility Owner Self-Certification Method: MHTC will enter into a Master Reimbursable Utility Agreement (MRUA) or a project specific agreement. The agreement will include the following provisions:
- Utility owner will be compliant with BA requirements.
- Utility agreement will contain the statement “Buy America Compliance Certification: The City/Company certifies that when determining products/materials subject to Buy 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 requirements. This does not include products/materials for which waivers have been granted pursuant to 23 CFR 635.410 or those products/materials that are excluded from compliance with Buy America requirements in the Commission’s Engineering Policy Guide 6188.8.131.52. 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.
- Retention of documents clause.
Buy America Vendor/Manufacturer Certification Method: MHTC will enter into a Master Reimbursable Utility Agreement (MRUA) or a project specific agreement. The agreement will include the following provisions:
- Utility owner will be compliant with BA requirements.
- Utility agreement will contain the statement “Buy America Compliance Certification: The City/Company certifies that when determining products/materials subject to Buy 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 requirements. This does not include products/materials for which waivers have been granted pursuant to 23 CFR 635.410 or those products/materials that are excluded from compliance with Buy America requirements in the Commission’s Engineering Policy Guide 6184.108.40.206. The City/Company shall provide to the Commission all Buy America compliance documents as outlined in the Commission’s Engineering Policy Guide 6220.127.116.11. All required compliance documents shall accompany the final invoice submitted to the Commission.
- Utility owner will supply MHTC all BA compliance documents in one of the following ways or combination of both:
- - Vendor Certification: Utility owner will collect written certification from the vendor(s). The written certification will be signed by the vendor on the company letterhead, or other acceptable documentation, signed by an authorized representative of the vendor and will declare that all supplied materials subject to BA requirements are fully compliant.
- - Manufacturer/Factory Certification: – Utility owner will collect written certification from factory(s). The written certification must be in the form of a mill test report (MTR) issued and signed by the initial fabricator stating that the materials subject to BA were melted and manufactured in the United States. Other written statements on company letterhead, 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 any coating) will state that all treatment processes occurred in the United States in accordance with FHWA guidelines.
- Retention of documents clause.
618.104.22.168.3 Buy America for Utilities Definitions
Anchor and High-Strength Bolts – Anchor and high-strength bolts wills be distinguished in one of the following three methods to be selected, and consistently applied, by the utility owner:
- 1) The utility owner may identify anchor and high-strength bolts in the specifications or plans as necessary for the safe and functional design of the utility relocation. If a bolt is not called out as anchor or high-strength, it stands that the design did not require that level of performance and the supplied bolt is not subject to BA;
- 2) The utility owner may identify anchor and high-strength bolts through the application of a strength rating. Any bolt possessing a yield strength of fifty-thousand pounds per square inch (50-ksi) or greater will be considered an anchor or high-strength
- 3) The utility owner may identify anchor and high-strength bolts through the application of a weight measurement. Any bolt possessing a weight of 15 pounds or greater will be considered an anchor or high-strength.
Assembly Materials – (miscellaneous steel) – The collection of miscellaneous materials used to fasten, hold, attach, secure and/or assemble materials including but not limited to: cabinets, covers, shelves, tie wire, guy wires, transformers, insulators, cutouts, surge arrestors, switches, hardware, base plates, conductor, spacers, chairs, faucets, door hinges, nuts, bolts, U-bolts, screws, washers, clips, fittings, sleeves, lifting hooks, mounting brackets, pole steps, clamps, brackets, mountings, straps, fasteners, hooks, pins, braces, disks, clevises, couplers, swivels, snaps, crimps, trunnions, dead-ends, compression swages, and other miscellaneous materials used to assemble.
Attachment Materials – An item or material that is not an integral part or permanently attached to the pole, pipe or valve. Attachment materials include but are not limited to: cross arm bracing, insulators, avian equipment, miscellaneous hardware (defined below), fittings (as defined below), racks, ladders, encasements, guy wire, strand, conductors and tubing 0.75-inch diameter or less.
Betterments – Any upgrading of the facility being relocated that is not attributable to the highway construction and is made solely for the benefit of and at the election of the utility (23 CFR 645.105). As such, a betterment is not eligible for federal reimbursement.
Conductor – A material (specifically wires and cables) that allows the flow of energy including electricity, heat, data, audit/video transmission etc.
Encasements – Include cabinets, housings, boxes, vaults, covers, shelves, and other items used to protect or house equipment or miscellaneous electronics. Encasements as defined in EPG 643.3.6 Approved Materials for Underground Utility Facilities Including Carrier and Encasement will be subject to BA if comprised of more than 90% of iron or steel. The type of encasement in EPG 643.3.6 Approved Materials for Underground Utility Facilities Including Carrier and Encasement is considered conduit for the purposes of enforcing Buy America compliance.
Fittings – Individual parts used to join, adjust or adapt a system of pipes including but not limited to elbows, tees, wyes, crosses, nipples, reducers, end caps, couplers, o-lets, transitions, connectors (steady state, seismic and flexible), unions, mechanical flanges (not permanently affixed to the pipe), bushings, ferrules, gaskets, O-rings, plugs, taps, air release valves and vacuum release valves.
Girders – A load bearing beam or strut commonly taking the cross-sectional shape of a circle, square, rectangle, or and I, C, L or Z and assembled for the purpose of creating lattice towers, stand-alone platforms or transmission towers.
Lattice Towers – A structure that is compiled of girders and is typically used in series to support conductor cables.
Maintenance – An action or application of materials necessary to keep a system functioning safely and at optimum capacity; general up-keep.
Miscellaneous Electronics – Manufactured products or assemblies consisting of many components such as electronic equipment, routers, switches, radios, processors, power supplies, batteries, antennas, splice cases, pre-connectorized hubs and terminals, and cross-boxes.
Miscellaneous Hardware – An assembly of small parts that are compiled to form a finished product that is often used independently or as an attachment material, including but not limited to, locks switches, cutouts, regulators, gauges, meters, barometers, strainers, filters, pilots, arrestors, insulators, ball bearings, dampeners, needle valves, braces, pipe supports, actuators, motors and pumps.
Permanent Installation – Is the final location and final installation of the materials as defined on the plans or in the specifications. No further adjustments or relocations are necessary to accommodate the final transportation project improvements.
Stand-alone Platforms – A structure that is compiled of girders and is used to permanently hold or support large equipment.
Temporary Utility Relocation – A temporary utility relocation is generally subject to the schedule necessary to accomplish the scope as defined by the NEPA document. A temporary utility relocation is one that is needed to allow the roadway construction to proceed, but is not required to remain in its relocation as a result of the final transportation improvement. For example, if the scope requires the sequential completion of six separate construction contracts, theoretically a temporary utility relocation could remain in place prior to commencement of the first construction contract and extend beyond the completion of the sixth construction contract prior to its final placement. A temporary utility relocation can also be established if the contract specifications or plans require that the steel or iron material used on the project either must be removed at the end of the project or may be removed at the contractor’s convenience.
622.214.171.124 Appropriate Subsurface Utility Engineering (SUE) on Utility Mapping
SUE may be used on any project. Adjustment cost savings, whether to MHTC or the utility, 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 facility might allow a design to avoid the facility thus preventing the need for the adjustment.
643.2.2 Construction Inspection Guidelines for Utilities
This information is a guide for resident engineers (REs) and inspectors. It describes their job duties concerning non-reimbursable and reimbursable utility work located within the limits of a roadway or bridge improvement project.
6126.96.36.199 Relocation of Utility Facilities
Improvements to the highway system often require negotiation between the district utilities engineer (DUE) and a city, publicly, or privately owned utility company for utility easements, cost estimates, and adjustments of their facilities located within the limits of the proposed highway improvements. Utility adjustments for road improvement projects fall into two categories: non-reimbursable and reimbursable adjustments.
6188.8.131.52.1 Non-Reimbursable and Reimbursable Adjustments
If a utility facility is in conflict with the proposed roadway improvement, and is located on public right of way without prior land rights, the Commission is not obligated to reimburse the utility company for the adjustment costs. This is referred to as a "non-reimbursable adjustment". The utility company is obligated to obtain a utility permit to perform the required adjustment, with a copy to be forwarded to the RE office. The RE/inspector should make an effort to track the progress of the utility for compliance with the schedule indicated in the permit and contract special provisions. They should also make sure the placement of the relocated utility is in the location and depth indicated on the plans, and that it does not conflict with any proposed construction. Reimbursement for utility adjustments will be made to the utility company for those portions of their facilities that are located on private easements. The utility company is obligated to obtain a utility permit to perform any relocation work on state highway right of way. A copy of the agreement and permit is forwarded by the DUE to the RE office. There are three examples when a utility company may be reimbursed for relocating their facilities originally located on public right of way and they are as follows:
- LightCore: LightCore (formerly DTI) is a fiber optic company that has a partnership agreement with the commission. The partnership agreement provides the commission ownership of several fiber optic lines in the cable for highway transportation purposes. The DUE keeps a copy of the partnership agreement and all supplemental agreements with LightCore.
- Adjustment of city-owned utility facilities originally located on city streets is reimbursable by the Commission.
- Utility services to Commission maintained facilities: Utility facilities that require adjustment in order to provide service to Commission facilities are reimbursable by the Commission. Examples include: power to traffic signals, lighting, ITS, cathodic protection and phone drops to traffic signal controllers or other Commission facilities.
6184.108.40.206.2 Agreement Types
Whenever the Commission is obligated for the reimbursement of utility adjustments, an agreement shall be executed between the utility company and the Commission. All agreements shall include a plan (Exhibit “A”) and cost estimate (Exhibit “B”) in the agreement. These agreements are divided into two types:
- Standard Agreements and
- Master Reimbursable Utility Agreements (MRUA)
Detailed information concerning the sequence for preparing and executing a project agreement is available in EPG 235.2.3 Project Agreements.
Standard Utility Agreements are agreements executed by the utility company and the Commission covering reimbursable utility adjustments for a certain project. Standard agreements are generally used when dealing with a utility company that rarely deals with the Commission. Once the Commission executes the standard agreement, the District Utility Engineer will forward a copy to Financial Services, district construction office and the RE office.
A Master Reimbursable Utility Agreement (MRUA) is a statewide agreement that has been previously executed by the utility company and the Commission for all future reimbursable utility adjustments between both parties. The DUE encourages the utility companies to enter into a MRUA with the Commission to reduce potential future delays in executing a standard agreement. When the reimbursable adjustment will utilize a MRUA, the DUE will prepare a correspondence letter referencing the executed MRUA; which will serve as the agreement for the construction utility file. Copies of all MRUA correspondence letters are forwarded by the DUE to Financial Services, the district construction office and the RE office.
6220.127.116.11.3 Types of Cost Estimates for Agreements
Actual Cost Agreements can be used for any dollar amount of reimbursement. The level of inspection records for actual cost agreement work is more stringent than the lump sum type of agreements. (See EPG 618.104.22.168 Field Inspection and EPG 622.214.171.124 Maintaining Construction Records).
Lump Sum Agreements can only be used for reimbursable agreements less than $200,000 or in special circumstances. (See EPG 6126.96.36.199 Field Inspection and EPG 6188.8.131.52 Maintaining Construction Records).
6184.108.40.206 Preconstruction Meetings
Preconstruction meetings fall into three categories relating to utilities:
- 1. No utility adjustments are anticipated within the project limits.
- 2. Utility work completed prior to the preconstruction meeting, and
- 3. Utility work not completed prior to the preconstruction meeting.
The contractor is responsible for having utilities located by contacting Missouri-One-Call (800 DIG RITE) prior to any excavation on the project. A reminder of this responsibility should be made at the preconstruction conference.
6220.127.116.11.1 No Utility Adjustments Being Anticipated Within the Project Limits
The RE should invite the representatives of the utility companies listed in the job special provision to all preconstruction meetings. The DUE should also be invited to all preconstruction meetings.
618.104.22.168.2 Utility Work Completed Prior to the Preconstruction Meeting
The inspector should review all reimbursable utility adjustment agreements prior to any work commencing (See EPG 622.214.171.124 Field Inspection). Good communication between the inspector and the DUE is important to understand all expectations between both parties. All utility work on MoDOT right of way is to be performed with a MoDOT utility permit. RE offices must have copies of all permits and utility agreements. DUE’s and RE’s should also encourage all work to be started soon after the notice to proceed being issued by the DUE. Random checks by the inspector to verify depth and location of proposed utility facilities at critical locations (proposed drainages, signal bases, etc.) can reduce issues with the roadway contractor. The RE should invite the representatives of the utilities companies listed in the job special provision and the DUE to the preconstruction meeting. At the meeting a general discussion should highlight the adjustments made by the utility and what abandoned facilities the contractor may encounter.
6126.96.36.199.3 Utility Work Not Completed Prior to the Preconstruction Meeting
It is important for the RE/Inspector to understand the utility companies work schedule and how it relates to the contractors work schedule. During the preconstruction meeting, the schedule of the utility and contractor should be discussed and conflicts should be addressed to allow utility and highway work to progress as near to the proposed schedule as possible. When the utility work will not be completed soon after the preconstruction meeting, the RE should meet with the roadway contractor and the utility representatives on a regular basis to discuss utility coordination issues, so expectations from all parties are known and conveyed clearly. Utility companies may need some work performed by the MoDOT or the roadway contractor prior to completing their adjustments. (Examples include: survey staking of right of way or proposed facilities, trees cleared, grading performed.). When coordination meetings are necessary, they are typically scheduled for a common day/time each week or bi-weekly until all parties can work without delay. The DUE should be invited to utility coordination meetings. On large-scale projects that have many utility issues to address prior to the roadway contractor commencing work, it may be necessary to have a separate preconstruction meeting with utility company personnel.
6188.8.131.52 Authorization to Proceed
Once a final agreement has been executed, and right of way clearance has been issued, the DUE will issue a notice to proceed to the utility (see Example 1 and Example 2). A copy of the notice will be forwarded to the RE along with the agreement, plans, and estimate for the proposed work if that had not been provided previously. If a utility starts their relocation prior to the authorization to proceed, the RE should notify them immediately in writing that reimbursement will not be made for the cost of work done before proper authorization. In addition to the notice to proceed, the RE should also have a copy of the utility permit from the traffic specialists for any work on highway right of way. The above authorizations to proceed are not to be confused with Sec 105.7 of the Standard Specifications that refers to utilities, originally on public right of way, which may require relocation without reimbursement.
6184.108.40.206 Utility Contract and Equipment Rental Procedures
When actual cost is to be used as the basis for reimbursement, the adjustment is sometimes made by the utility with company personnel and equipment. It is the RE’s/inspector’s responsibility to be certain that all actual cost adjustments are made in compliance with all requirements of the agreement. The RE/inspector should check for compliance not only at the beginning of the adjustment but also at periodic intervals. If reimbursable utility work goes to the construction phase and the utility company does not have adequate staff available to perform the adjustment and plans to let a contract for the adjustment, a definite procedure is required. The necessary information must be sent to the DUE, if it is furnished before authorization for the utility to proceed. The DUE shall review/approve all subcontract work involving actual cost agreements prior to the subcontractor commencing work. Subcontractor approval is not required for lump sum agreement work. The utility company must furnish a letter in which they state that they are "not staffed or equipped to perform the work and intend to contract for . . ." unless this is already stated in the agreement. For actual cost reimbursable agreements, the utility company should solicit a minimum of three bids for work that is to be contracted. For lump sum reimbursable agreements, approval of contract work is not required. At the stage where data is required to be submitted to the DUE, two copies of the bid proposal and of a tabulation of bids are to be submitted. Approval by the DUE is required before any contract is awarded or any work is done. After award, one executed copy of the contract is to be sent by the DUE to the district construction office and the RE office. It is preferred that bids be taken on a unit price basis although "lump sum" bids are acceptable. In lump sum bids, unit prices for the major items must be included in the bid to permit adjustment for substantial changes in plan or extent of work. When existing "continuing contracts" are to be used, the RE/inspector should contact the DUE to determine if the continuing contract has been approved and the rates to be used are current. Continuing contracts are typically used for minor incidental work that includes: asphalt, concrete work, seeding/sodding, and tree trimming. It is vital that inspectors closely monitor the start of each reimbursable utility adjustment. If any actual cost reimbursable utility work is being performed by unapproved contractors, the RE/Inspector should contact the DUE immediately. The RE should also immediately advise the utility company in the field to stop working. The RE should also advise the utility company in writing that the costs are not eligible for reimbursement under provisions of the agreement. The DUE can take appropriate steps to approve the subcontract work and advice the RE when the utility company can proceed to work. When a utility must rent, or contract for, any equipment, a minimum of three quotations to establish the rental rate should be solicited. The RE neither approves nor disapproves these quotations, but should be sure that bids were solicited. If they were not, the RE should advise the utility in writing that reimbursement for equipment charges may be withheld for non-compliance with these requirements. Proof of solicitation and copies of quotations should be kept on file by the RE for audit purposes. If a specific size or type of equipment is needed for which only one bid is economically available, the utility must provide documentation to verify this. If three bids are solicited on the reasonable assumption that they are available but less than three are received, prior approval of those received is not required.
When emergency or breakdown situations occur, prior approval by the DUE is not required for contract or equipment rental work unless the cost or period of time will be extensive. The utility company should furnish a letter as soon as possible to explain the situation and set out the estimated costs involved. The RE’s records should substantiate the need and the charges for personnel and equipment.
6220.127.116.11 Field Inspection
The degree of inspection needed for utility construction will vary considerably with the nature and location of the work. Judgment must be used regarding the manner and regularity of inspection duties. Some phases of the work require a very close check to insure that the highway will not be adversely affected and to insure 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. The inspector must be alert and attentive to assure that operations proceed in an orderly and economical manner. Lack of coordination and attention is indicated when a utility improperly does its work, resulting in additional charges for removal and reconstruction in the proper manner. A partial checklist that can help construction personnel in their inspection duties follows:
- Read the agreement. Study the estimate and plan. Become completely familiar with the work involved in the adjustment.
- Check whether authority to proceed has been given. The inspector should begin recording Daily Utility Reports as soon as the utility begins their relocation and do so every day the utility or utility contractor is working, or weekly if no work is being done. If the roadway contractor is being delayed due to utility work, the RE or inspector should contact the DUE immediately. (See EPG 618.104.22.168 Maintaining Construction Records).
- Check with utility personnel to be sure they are familiar with nomenclature and symbols furnished on alignment and grade stakes along project.
- Check whether the utility is doing work with its own forces or by contract having Department approval.
- MoDOT performs most of the survey staking for utility companies but some utility companies perform their own surveying staking. Therefore, check to be sure both the Department and the utility use the same reference datum in setting benchmarks, grade, stakes, etc.
- Check proposed underground utilities to avoid conflict of elevations with highway installations and check to be sure the utilities are installed at the correct elevation.
- Check vertical clearance of overhead utility installations. The RE's responsibility for minimum clearance is limited to a check for physical conflict with signs, light standards, etc., and to a check for clearance above plan or revised plan grade line. For utilities crossing over travelways, the minimum vertical clearance shall be not less than required by the National Electric Safety Code and in no case less than 18 feet as required by Commission Policy.
- See that at least minimum horizontal clearances are obtained between utility structures and highway or railroad facilities.
- Check placement of poles, towers, and similar above ground facilities to assure that established policies are observed.
- See that encasement of underground lines such as water lines and petroleum product lines are in accordance with the plans. See that underground lines are not placed on unsuitable foundation material requiring costly removal and reconstruction operations.
- Require that manhole grades be accurately correlated with proposed highway construction.
- Require all utility excavation areas that might have a critical influence upon highway construction to be backfilled in accordance with requirements established by the agreement.
- Observe and record the condition of retired materials to assure that proper classification and disposal is made. Inspection of recovered material on actual cost agreements is the responsibility of the RE when notified by the utility company that such material is available for inspection. Inform the utility that it is the company's responsibility to inform the Department of the time and place recovered material will be available for inspection. Do this in the district's letter authorizing work to proceed. The RE, accompanied by a representative of the utility, should examine this material. It is not the RE's responsibility to place a dollar value on recovered material. The utility company may be held accountable for full value of materials disposed of without proper notice.
- All such utility adjustment work, whether by permit or by agreement, is to be inspected by the district and the location of proposed utility facilities to be placed on the final plans of the project. Records should be maintained as noted in EPG 622.214.171.124 Maintaining Construction Records.
- Utility Companies are required to submit a final invoice to MoDOT for all actual cost reimbursable utility work and for any lump sum reimbursable utility work that was not prepaid. (See EPG 6126.96.36.199 Final Invoice for further details)
- Utility and light poles are not to be used to mount signs.
6188.8.131.52 Changes in Approved Utility Work
6184.108.40.206.1 Changes in Approved Utility Work Not Included in the Road Contract
The RE/inspector should be aware of two cases that involve changes to reimbursable utility work:
- If it is discovered that there is reimbursable work on a project and no agreements were previously set-up for the work.
- When a substantial change deviates from the original scope of work outlined in the original agreement.
(Case #1) Consult the District Utility Section regarding preparation of the agreement. The DUE will then prepare the necessary agreement for the utility work to commence.
(Case #2) A supplemental agreement is essential any time a necessary revision of an actual cost adjustment will exceed the original scope of work covered by the agreement and plans, or when the adjustment within the original boundaries must be changed to a substantial degree. Slight modifications in quantities or addition of minor items not included in the approved estimate but necessary to accomplish the intent of the approved agreement are not normally considered a substantial change. The RE is not required to prepare a supplemental agreement for a scope change if the total cost of original work cost does not increase more than 15%. If doubt exists, contact the DUE to determine if a supplemental agreement should be prepared and submitted. If there will be any change in the percentage of cost which is the Commission's obligation, a supplemental agreement is required. Intermediate partial payments for which the initial agreement made no provision cannot be made unless authorized by an approved supplemental agreement. All modifications must meet established Commission policy. The RE should check with the DUE to assure there will be no conflict with the present agreement or future installations. See Case 2A and 2B for details on MRUA and Standard Agreement change orders.
(Case #2A-Supplemental Work – Original Agreement was a Master Reimbursable Utility Agreement – MRUA) If the original utility work was performed under terms of a MRUA and the scope of work changes to increase the cost of the original work substantially (exceed 15%), then the DUE should prepare a supplemental agreement in the form of a MOU to the Utility Company approving the additional work. The RE should contact the DUE immediately when this situation occurs, so the DUE can prepare the necessary paperwork in order for the utility company to proceed performing the additional work.
(Case #2B-Supplemental Work – Original Agreement was a Standard Agreement and Utility Company needs to perform additional work. If the original work was performed under terms of a standard agreement then a supplemental agreement should be prepared by the DUE to approve the additional costs associated with the scope .The RE should contact the DUE immediately when this situation occurs, so the DUE can prepare the supplemental agreement in order for the utility company to proceed performing the additional work. A supplemental agreement needs to be prepared if the scope change exceeds 15% of the original cost or if the Commission obligation changes. If the scope of work changes and the total original cost does not exceed the 15% and a utility change order or a supplemental agreement is not prepared, the DUE is still obligated to advise the utility company in writing that the additional utility work is approved and the work can commence. See Case 2Ba and 2Bb for details on how to handle change orders for Lump Sum and Actual Cost estimates.
Case #2Ba Reimbursement for revisions in work requiring changes in lump sum agreements cannot be made unless a change order or supplemental agreement is approved before the work involved in the change is done. Refer to 6220.127.116.11 Changes in Approval Work for additional information.
Case #2Bb There are frequent times when the RE receives an Actual Cost final bill and the total shows a much higher cost than the original estimate without a scope change. Reasons for higher costs could include: original estimate was underestimated, more equipment or man-hours needed to complete the work due to weather reasons. Refer to 618.104.22.168 Changes in Approval Work for additional information.
|Amount in Original Actual Agreement||Final Bill Total Exceeds Original Amount by:|
When the final bill dramatically deviates from the original estimate, the utility company will be required to give reasons in a letter to the RE explaining why the bill increased. When an actual cost final bill exceeds the percentages shown above then a supplemental agreement is required.
Supplemental agreements should be made out to the utility in the same name shown in the agreement and should be signed by the utility company. They must be numbered with their own sequence of numbers for each agreement. State the date of the original agreement in the supplement to the agreement.
622.214.171.124.2 Changes in Approved Utility Work Included in the Road Contract
On some projects utility work is included in the road contract. Examples of this work may include: water service adjustments, water main and sewer relocations, city lighting, etc. Roadway change orders are prepared to approve any changes to the work.
6126.96.36.199 Maintaining Construction Records
Construction records must be kept to confirm that work is done in accordance with 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 bill. A complete separate daily record must be kept on each actual cost adjustment and submitted for review when the final bill is recommended for payment. The inspector or RE may keep this record in a field book diary, by use of Form C-9, Daily Utility Report, or by the use of SiteManager Records.
6188.8.131.52.1 Items to Record for Utility Inspection
The type of records required will vary with the method of performing the adjustments.
Actual Cost Adjustment Made Entirely with Utility Company Forces. The inspector must keep a daily record of 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 company's major items of equipment must also be recorded. Sufficient records must be maintained to check and verify the items of labor, equipment, materials, and salvaged items as submitted on the final bill.
Actual Cost Adjustment Made by the Utility Company’s Contractor. When work is done by the contract method, the inspector will not generally be concerned with the items of labor and equipment. The inspector 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. Daily diary entries 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 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 company were performing the work with its own forces.
Lump Sum Utility Agreement or an Adjustment by the Utility Contractor for Lump Sum Bid. Records of man hours, material items, or equipment times are not required. The inspector must be sure that work is done in accordance with the agreement and plans. Records and diaries should still be kept as described below.
Records and Diary. The inspector must in all cases keep records and diary entries to document inclement weather, down time, and verbal authorization for minor changes. Progress records should be kept as necessary to coordinate highway and utility construction.
6184.108.40.206 Payment to Utility Companies for Reimbursable Work
Utility work not included in the roadway contract typically uses federal funds. Utility work included in the roadway contract typically uses federal funds but occasionally may use state funds (Accounting Code 9A).
The Commission allows utility companies to be prepaid prior to commencing work. Prepayment requests are initiated by the DUE and sent directly to Financial Services. Copies of prepayment memo’s are also forwarded to Financial Services, the district construction office and the RE office. In some cases, utility companies are not prepaid for the utility work ahead of time or only a percentage of the estimated total. See EPG 6220.127.116.11 Advance Payments for more details.
618.104.22.168.2 Partial Payment Invoices
If a utility company is not prepaid the entire estimated amount in the utility agreement, then the utility company may request an intermediate or partial payment after completing some or all of the proposed work. For partial payments, the utility is required to submit only a summary of work and materials for which payment is claimed, not a detailed billing. Check only to be sure that sufficient work has been done to justify making the requested payment. Payment should be authorized for allowable costs incurred up to the date of the partial payment request.
Partial payment invoices do not relieve the utility of responsibility for submitting one complete and final billing upon completion of the adjustment. The utility's address must be shown on the invoice. The RE should submit partial payment invoices to Financial Services Division within one week of receipt of invoice.
Partial payments for engineering work by consultants should not exceed the "maximum not to exceed amount" shown in the cost estimate unless additional costs are approved by the DUE.
One copy of the partial payment invoice and one copy of the RE's letter of recommendation must be sent to Financial Services Division for payment (a copy is sent to district construction and the DUE). The cover memo should include the project number, route, county, actual cost or lump sum utility agreement, Commission obligation (_ %), total cost estimate of commission obligation and indicate the partial payment number, i.e., partial payment number 1, 2, 3, 4. If more than one partial payment is requested by the utility company, the RE should submit progress payment bills to Financial Services Division in the following format:
|Partial Payment #1||$50,000|
|Partial Payment #2||$10,000|
|Total to Date Payment||$60,000|
This format will help clarify payment history with the utility company. Partial payments for actual cost utility agreements may not exceed the Commission's total estimated cost shown in the agreement. However, if the request for partial payment exceeds the original estimate, a change order with explanation should accompany the request (See EPG 622.214.171.124.2 Changes in Approved Utility Work).
6126.96.36.199.3 Final Invoice
Refer to EPG 6188.8.131.52 Final Invoice for Utility Work for full details.
6184.108.40.206 Permit Policy
Refer to EPG 643.3 Policy, Standards and Regulations for all information pertaining to utility permits.