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Utility Notification Package Forms

June 10, 2002
Mr. James Burke
US Guest Communications
P.O. Box 502997
Podunk, WY 81111

Dear Mr. Burke:

PRA GRTE 16-1(9), NORTH LARK ROAD
BETON COUNTY, WYOMING, GRAND BETON NATIONAL PARK

The Federal Highway Administration in cooperation with the Grand Beton National Park plan to reconstruct a portion of the North Lark Road. The project begins at approximately 0.09 miles south of Fickel Creek and continues northerly 7.1 kilometers to the Grand Beton N.P. and Yellowstone N.P. border. The Subject project is scheduled to begin work in August 2005. The notice to proceed is likely to be issued to the Contractor on or about July, 15th, 2005. We should have our Project Engineer, Raul Jimenez, on site at this time.

We have enclosed the following items for your use in Utility Relocation: A set of the current construction plans, Right-of-Way plans and a set of plotted cross sections showing the culvert crossings. If your utilities will be affected in any way, please begin scheduling the necessary changes to the location of your facilities so we may be better able to coordinate our efforts.

Reimbursement for relocation expenses shall be in accordance with State law (or State regulation). If your utilities will be affected we will need an estimate of costs developed as outlined in Section 645.117 (page 11-15) of Title 23 CFR 645A, copy enclosed. I have highlighted the location of your existing facilities in Red on the Right-of-Way plans, please verify their location and plot any proposed location in Blue. Return these along with a detailed cost estimate and any applicable details & cross sections necessary to show the type of proposed facility to this office, attention of James Brophy, Right-of-Way and Utilities Coordinator. After we have received your relocation plans and estimate we will prepare a Utility Relocation Agreement, which sets up the account and obligates funds for reimbursement if necessary.

The soonest that the Right-of-Way would be staked, for construction purposes, will be some time in August 2005 and possibly later than this. If you find it necessary to establish Right-of-Way Limits in order to relocate your facilities, we suggest that you use the information provided on the construction plans and Cross sections provided.

If you should have any questions about R/W Plans, descriptions or utility relocation, please contact me at (360)696-7586 or on my cell phone at (360)607-2064.

Sincerely yours,

John Durazo
Right-of-Way & Utilities

Enclosures:
11" x 17" Right-of-Way plans (2 copies)
11" x 17" Construction plans (2 copies)
11" x 17" plotted cross sections (1 copies)
Title 23 CFR 645A, Section 645.117 (5 pages)
Cost Estimate Example (2 pages)

cc: Homer Simpson, Chief of Maintenance, Grand Beton N.P.
Karl Reason, Project Designer, WFLHD
Richard Gatten, Design Operations Engineer
James Brophy, Right-of-Way and Utilities Coordinator
Project Design Book
R/W Correspondence File
P.E. Hold File



DEPARTMENT OF TRANSPORTATION
CODE of FEDERAL REGULATIONS
TITLE 23 - Part 645

Utility Relocations, Adjustments and Reimbursement; Final Rule

- 645.117 Cost development and reimbursement.

(a) Developing and recording costs. (1) All utility relocation costs shall be recorded by means of work orders in accordance with an approved work order system except when another method of developing and recording costs, such as lump?sum agreement, has been approved by the HA and the FHWA. Except for work done under contracts, the individual and total costs properly reported and recorded in the utility's accounts in accordance with the approved method for developing such costs, or the lump?sum agreement, shall constitute the maximum amount on which Federal participation may be based.

(2) Each utility shall keep its work order system or other approved accounting procedure in such a manner as to show the nature of each addition to or retirement from a facility, the total costs thereof, and the source or sources of cost. Separate work orders may be issued for additions and retirements. Retirements, however, may be included with the construction work order provided that all items relating to retirements shall be kept separately from those relating to construction.

(b) Direct labor costs. (1) Salaries and wages, at actual or average rates, and related expenses paid by the utility to individuals for the time worked on the project are reimbursable when supported by adequate records. This includes labor associated with preliminary engineering, construction engineering, right?of?way, and force account construction.

(2) Salaries and expenses paid to individuals who are normally part of the overhead organization of the utility may be reimbursed for the time worked directly on the project when supported by adequate records and when the work performed by such individuals is essential to the project and could not have been accomplished as economically by employees outside the overhead organization.

(3) Amounts paid to engineers, architects and others for services directly related to projects may be reimbursed.

(c) Labor surcharges. (1) Labor surcharges include worker compensation insurance, public liability and property damage insurance, and such fringe benefits as the utility has established for the benefit of its employees. The cost of labor surcharges will be reimbursed at actual cost to the utility, or, at the option of the utility, average rates which are representative of actual costs may be used in lieu of actual costs if approved by the SHA and the FHWA. These average rates should be adjusted at least once annually to take into account known anticipated changes and correction for any over or under applied costs for the preceding period.

(2) When the utility is a self?insurer, there may be reimbursement at experience rates properly developed from actual costs. The rates cannot exceed the rates of a regular insurance company for the class of employment covered.

(d) Overhead and indirect construction costs. (1) Overhead and indirect construction costs not charged directly to work order or construction accounts may be allocated to the relocation provided the allocation is made on an equitable basis. All costs included in the allocation shall be eligible for Federal reimbursement, reasonable, actually incurred by the utility, and consistent with the provisions of 48 CFR part 31.

(2) Costs not eligible for Federal reimbursement include, but are not limited to, the costs associated with advertising, sales promotion, interest on borrowings, the issuance of stock, bad debts, uncollectible accounts receivable, contributions, donations, entertainment, fines, penalties, lobbying, and research programs.

(3) The records supporting the entries for overhead and indirect construction costs shall show the total amount, rate, and allocation basis for each additive, and are subject to audit by representatives of the State and Federal Government.

(e) Material and supply costs. (1) Materials and supplies, if available, are to be furnished from company stock except that they may be obtained from other sources near the project site when available at a lower cost. When not available from company stock, they may be purchased either under competitive bids or existing continuing contracts under which the lowest available prices are developed. Minor quantities of materials and supplies and proprietary products routinely used in the utility's operation and essential for the maintenance of system compatibility may be excluded from these requirements. The utility shall not be required to change its existing standards for materials used in permanent changes to its facilities. Costs shall be determined as follows:

(i) Materials and supplies furnished from company stock shall be billed at the current stock prices for such new or used materials at time of issue.

(ii) Materials and supplies not furnished from company stock shall be billed at actual costs to the utility delivered to the project site.

(iii) A reasonable cost for plant inspection and testing may be included in the costs of materials and supplies when such expense has been incurred. The computation of actual costs of materials and supplies shall include the deduction of all offered discounts, rebates, and allowances.

(iv) The cost of rehabilitating rather than replacing existing utility facilities to meet the requirements of a project is reimbursable, provided this cost does not exceed replacement costs.

(2) Materials recovered from temporary use and accepted for reuse by the utility shall be credited to the project at prices charged to the job, less a considertion for loss in service life at 10 percent. Materials recovered from the permanent facility of the utility that are accepted by the utility for return to stock shall be credited to the project at the current stock prices of such used materials. Materials recovered and not accepted for reuse by the utility, if determined to have a net sale value, shall be sold to the highest bidder by the HA or utility following an opportunity for HA inspection and appropriate solicitation for bids. If the utility practices a system of periodic disposal by sale, credit to the project shall be at the going prices supported by records of the utility.

(3) Federal participation may be approved for the total cost of removal when either such removal is required by the highway construction or the existing facilities cannot be abandoned in place for aesthetic or safety reasons. When the utility facilities can be abandoned in place but the utility or highway constructor elects to remove and recover the materials, Federal funds shall not participate in removal costs which exceed the value of the materials recovered.

(4) The actual and direct costs of handling and loading materials and supplies at company stores or material yards, and of unloading and handling recovered materials accepted by the utility at its stores or material yards are reimbursable. In lieu of actual costs, average rates which are representative of actual costs may be used if approved by the SHA and the FHWA. These average rates should be adjusted at least once annually to take into account known anticipated changes and correction for any over or under applied costs for the preceding period. At the option of the utility, 5 percent of the amounts billed for the materials and supplies issued from company stores and material yards or the value of recovered materials will be reimbursed in lieu of actual or average costs for handling.

(f) Equipment costs. The average or actual costs of operation, minor maintenance, and depreciation of utility?owned equipment may be reimbursed. Reimbursement for utility?owned vehicles may be made at average or actual costs. When utility?owned equipment is not available, reimbursement will be limited to the amount of rental paid (1) to the lowest qualified bidder, (2) under existing continuing contracts at reasonable costs, or (3) as an exception by negotiation when paragraph (f) (1) and (2) of this section are impractical due to project location or schedule.

(g) Transportation costs. (1) The utility's cost, consistent with its overall policy, of necessary employee transportation and subsistence directly attributable to the project is reimbursable.

(2) Reasonable cost for the movement of materials, supplies, and equipment to the project and necessary return to storage including the associated cost of loading and unloading equipment is reimbursable.

(h) Credits. (1) Credit to the highway project will be required for the cost of any betterments to the facility being replaced or adjusted, and for the salvage value of the materials removed.

(2) Credit to the highway project will be required for the accrued depreciation of a utility facility being replaced, such as a building, pumping station, filtration plant, power plant, substation, or any other similar operational unit. Such accrued depreciation is that amount based on the ratio between the period of actual length of service and total life expectancy applied to the original cost. Credit for accrued depreciation shall not be required for a segment of the utility's service, distribution, or transmission lines.

(3) No betterment credit is required for additions or improvements which are:

(i) Required by the highway project,

(ii) Replacement devices or materials that are of equivalent standards although not identical,

(iii) Replacement of devices or materials no longer regularly manufactured with next highest grade or size,

(iv) Required by law under governmental and appropriate regulatory commission code, or

(v) Required by current design practices regularly followed by the company in its own work, and there is a direct benefit to the highway project.

(4) When the facilities, including equipment and operating facilities, described in ' 645.117(h)(2) are not being replaced, but are being rehabilitated and/or moved, as necessitated by the highway project, no credit for accrued depreciation is needed.

(5) In no event will the total of all credits required under the provisions of this regulation exceed the total costs of adjustment exclusive of the cost of additions or improvements necessitated by the highway construction.

(i) Billings. (1) After the executed HA/utility agreement has been approved by the FHWA, the utility may be reimbursed through the SHA by progress billings for costs incurred. Cost for materials stockpiled at the project site or specifically purchased and delivered to the utility for use on the project may also be reimbursed on progress billings following approval of the executed HA/utility agreement.

(2) The utility shall provide one final and complete billing of all costs incurred, or of the agreed?to lump?sum, within one year following completion of the utility relocation work, otherwise previous payments to the utility may be considered final, except as agreed to between the SHA and the utility.

(3) All utility cost records and accounts relating to the project are subject to audit by representatives of the State and Federal Government for a period of 3 years from the date final payment has been received by the utility.

(Information collection requirements in paragraph (i) were approved by the Office of Management and Budget under control number 2125 ? 0159)

[50 FR 20345, May 15, 1985, as amended at 60 FR 34850, July 5, 1995]



Cost Estimate Example
This section of the Utility Notification Package contains complex tables which cannot be reliably rendered in an HTML format. To view the Cost Estimate Example please download a copy of the Utility Notification Package in Word format.
   


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