Common use of Relocation of Utilities Clause in Contracts

Relocation of Utilities. If the required right of way encroaches on an existing utility located on its own right of way and the proposed highway construction requires the adjustment, removal, or relocation of the utility facility, the State will establish the necessity for the utility work. State participation in the cost of making the necessary change, less any resulting increase in the value to the utility and less any salvage value obtainable, may be obtained by either the “actual cost” or “lump sum” procedures. Reimbursement under “actual cost” will be made subsequent to the Local Government’s certification that the work has been completed and will be made in an amount equal to ninety percent (90%), or the applicable EDC-adjusted percent, of the eligible items of cost as paid to the utility owner after the completion of an audit. The “lump sum” procedure requires that the State establish the eligibility of the utility work and enter into a three-party agreement with the owners of the utility facilities and the Local Government. This agreement must set forth the exact lump sum amount of reimbursement. The utility will be reimbursed by the Local Government after proper certification by the utility that the work has been done, and the reimbursement will be based on the prior lump sum agreement. The State will reimburse the Local Government in an amount equal to ninety percent (90%), or the applicable EDC-adjusted percent, of the firm commitment as paid to the utility owner. Reimbursement is subject to the provision that the individual lump sum agreement approved value shall not exceed $20,000, except as specifically approved by the State. In those cases where a single operation is estimated to exceed $20,000, the transaction will be brought to the attention of the State for determination of proper handling based upon the circumstances involved. The firm commitment to the utility will be an appropriate item of right of way. The adjustment, removal, or relocation of any utility line on publicly owned right of way by sufferance or permit will not be eligible for State reimbursement. The term “utility” under this agreement shall include publicly, privately, and cooperatively owned utilities.