La. Admin. Code tit. 70 § II-301

Current through Register Vol. 50, No. 11, November 20, 2024

Section II-301 - Introduction

A. When a publicly owned, non-profit utility is not able to bear its share of the cost for adjusting its facilities to accommodate a highway project, it may apply for funding under R.S. 48:381(C), hereinafter referred to as Utility Relocation Assistance Funding (URAF).

1. General Conditions

a. In order to qualify for URAF funds, a utility must be owned by a governmental body such as a municipality or parish, or be a non-profit utility.

b. In order to qualify for URAF funds, a utility must be financially unable to bear its share of the adjustment expense.

c. URAF funding is neither a loan nor a grant and there is no interest charged on this money. However, the utility must repay this money eventually, or it will not be allowed to locate its facilities within highway right-of-way.

d. Highway adjustments are considered normal, foreseeable maintenance for utilities located on highway right-of-way.

2. Procedure

a. The publicly owned or non-profit utility informs the headquarters utility and permit engineer, in writing, that it is not financially able to bear the cost of adjusting its facilities, and formally requests URAF funding.

b. The headquarters utility and permit engineer requests the legislative auditor to examine the utility's records to determine the utility's eligibility for URAF funds.

c. The legislative auditor examines the utility's records and informs the headquarters utility and permit engineer of the utility's eligibility for URAF funds.

d. If the utility is eligible for URAF funds, executed agreements are converted to URAF agreements, and/or new agreements are executed as necessary.

e. The Federal Highway Administration is advised when URAF funds are approved for federal aid projects.

f. Issuance of permits to the utility is suspended, and the utility is added to the URAF database. Note that the suspension does not include most crossings.

g. The final amount of URAF funds used is added to the URAF database after final payment is made.

h. After final payment is made, Department of Transportation and Development Project Control is informed of the total amount of URAF funds used and bills the utility accordingly.

i. Issuance of permits to the utility will remain suspended until Department of Transportation and Development Project Control notifies the utility and permit section that the utility has repaid the full amount to the Department of Transportation and Development. The utility may repay this amount as a lump sum, in partial amounts, in exchange for goods and/or services, or in any combination thereof. Department of Transportation and Development Project Control shall notify the headquarters utility and permit engineer of any payments as soon as they are received. Note that an exchange of goods or services is at the discretion of the Department of Transportation and Development. Note that the Federal Highway Administration participates in URAF costs. It is the responsibility of Department of Transportation and Development Project Control to credit Federal Highway Administration, at its participating percentage, for any funds that are repaid.

3. Issuance of Permits

a. General issuance of permits may resume if the utility shows a good faith effort to repay this debt by making annual payments to Department of Transportation and Development of 5 percent of its gross income, or 10 percent of its outstanding URAF debt. The first payment must be made within one year of the date of invoicing of the utility by Department of Transportation and Development, and issuance of permits shall remain suspended until the first payment is made. The utility's payments shall be due by January 15 of each year. The Department of Transportation and Development shall suspend issuance of permits to any utility that fails to submit payment by this date. Partial payments will be accepted as payment toward the total debt; however, issuance of permits shall be suspended when a utility fails to make the required minimum payment. Since these options were not available prior to the promulgation of these rules, issuance of permits to utilities that have URAF agreements that were executed prior to January 1, 1993, may resume, if the utility begins to show a good faith effort to repay this debt, by making annual payments to DOTD of 5 percent of its gross income, or 10 percent of its outstanding URAF debt, by January 15, 1995. When issuance of permits is suspended because the utility failed to make the required minimum payment by the specified deadline, issuance may resume after the utility makes the minimum required payments on time for a period of three consecutive years, or by making a lump sum payment of 25 percent of the total remaining URAF funds owed to DOTD.

b. When in the best interest of the public, specific permits may be issued to utilities, without removing the general suspension, under the following circumstances:

i. eminent danger to the public or to the highway as the result of a damaged or faulty facility that is located within highway right-of-way, such as:

(a). a leaking water or sewer line that is eroding the right-of-way;

(b). a leaking or exposed gas line, at Department of Transportation and Development discretion, these facilities may be repaired or replaced with a similar facility of equal capacity;

ii. insufficient right-of-way available to place distribution lines to serve properties adjacent to the highway. This may occur in highly urbanized areas where there is no room to place utilities between the edge of the highway right-of-way and an adjacent structure, and the adjacent property cannot be accessed through an alternate route. If the physical space is available, the utility shall use its expropriation rights to secure the necessary right-of-way for its facilities.

La. Admin. Code tit. 70, § II-301

Promulgated by the Department of Transportation and Development, Office of Engineering, LR 18:1415 (December 1992).

AUTHORITY NOTE: Promulgated in accordance with R.S. 48:381(C).