Current through Register Vol. 30, No. 38, September 20, 2024
A. A provider
must enter into a telecommunication use and occupancy agreement with the
Department and obtain an encroachment permit, as prescribed under Article 5 of
this Chapter, before being granted longitudinal access for new installation of
a telecommunication facility. This Section does not apply to a
telecommunication facility with an encroachment permit approved before January
1, 2023.
B. A provider seeking to
enter into a telecommunication use and occupancy agreement shall complete and
provide the following information on a telecommunication use and occupancy
agreement application provided by the Department at www.azdot.gov:
1.
Name of provider;
2. The point of
contact's information, which includes name, telephone number, and email
address;
3. A description of the
proposed work or activity in the right-of-way or facilities; and
4. A map, drawing, or geographical
description of the proposed telecommunication facility installation, including
the starting and ending milepost to the nearest tenth of a mile, state highway
number, the cardinal direction of the highway, the number and size of conduits,
and accompanying telecommunication facility locations.
C. The Department shall, within five calendar
days of receiving an application under subsection (B), provide written notice
to the provider acknowledging receipt of the application:
1. If the application is complete, the notice
shall acknowledge receipt of a complete application and indicate the date the
Department received the complete application; or
2. If the application is incomplete, the
notice shall indicate the current date and include an itemized list of all
additional information the provider must provide to the Department before the
application can be considered complete and subsequently processed.
D. A provider with an incomplete
application shall respond to the notice provided by the Department under
subsection (C)(2) within 15 calendar days after the date indicated on the
notice or the Department may deny the application.
E. The Department shall render a decision on
the application within 15 calendar days after the date on the notice the
Department gave to the provider under subsection (C)(1) acknowledging receipt
of a complete application.
F. For
the purpose of A.R.S. §
41-1073,
the Department establishes the following time-frames:
1. Administrative completeness review
time-frame: five calendar days.
2.
Substantive review time-frame: 10 calendar days.
3. Overall time-frame: 15 calendar
days.
G. A provider
shall pay an annual right-of-way occupancy rate as compensation to the
Department for longitudinal access to a highway right-of-way for new
installations of telecommunication facilities, including overhead, surface, or
underground, in accordance with A.R.S. § 28-7385.
1. The annual right-of-way occupancy rate
schedule is as follows:
a. Interstate System:
$1.00 per linear foot of longitudinal access.
b. Controlled Access Highways
(non-interstate): $0.50 per linear foot of longitudinal access.
c. Uncontrolled Access Highways: $0.25 per
linear foot of longitudinal access.
2. At the beginning of each calendar year,
starting January 1, 2024, the cost per linear foot as prescribed in subsection
(G)(1), increases at a rate of 2% per calendar year. The new annual
right-of-way occupancy rate applies to any new or renewed telecommunication use
and occupancy agreements established within that given year.
3. The annual right-of-way occupancy rate,
established at the time of signing the telecommunication use and occupancy
agreement, shall be the rate for each year of a 20-year or 30-year
agreement.
4. The distance is
measured using the State Milepost System, rounded to the nearest tenth of a
mile and converted to a linear foot value.
5. The total amount of the annual
right-of-way occupancy rate is determined by using the following calculation:
cost per linear feet x distance = total annual right-of-way occupancy
rate.
6. The Department shall
receive monetary compensation in the form of an annual or lump sum payment,
unless an in-kind compensation or combination of in-kind and monetary
compensation is agreed upon by the Department and the provider.
a. Annual monetary compensation. The provider
shall pay the total annual right-of-way occupancy rate established at the time
of signing the telecommunication and occupancy use agreement and at the time of
signing any renewals.
b. Lump-sum
monetary compensation. The provider shall pay in accordance with the following:
i. The total annual right-of-way occupancy
rate is multiplied by the number of years of the agreement.
ii. A discounted rate of 10% is applied
utilizing net present value calculation.
c. In-kind compensation.
i. Telecommunication facilities shall be
valued on a present value basis at the estimated, reasonable cost to the
provider for procuring and installing such telecommunication facilities. The
in-kind value shall be agreed upon, between the Department and provider, in the
telecommunication use and occupancy agreement.
ii. The Department shall provide the provider
with a list of the specific telecommunication facilities and services for
consideration as in-kind compensation. The value of such in-kind compensation
shall be subtracted from the total amount of monetary compensation due for
occupancy of the right-of-way and the remaining balance, if any, shall be
remitted as monetary compensation.
iii. Any telecommunication facilities
acquired as in-kind compensation shall be used exclusively for the further
development of telecommunications that serve state purposes and may not be sold
or leased in competition with providers.
iv. The provider maintains ownership and is
responsible for maintenance of the in-kind compensation provided, however, the
associated costs will be agreed upon in the telecommunication use and occupancy
agreement.
d.
Combination of monetary and in-kind compensation. The provider will pay the
total annual right-of-way occupancy rate in accordance with subsections
(G)(6)(a) through (c), as applicable, and as agreed upon by the Department and
the provider.
7. The
payment of the annual right-of-way occupancy rate will be made as follows:
a. For monetary compensation, the provider
shall pay the total annual right-of-way occupancy rate to the Department within
30 calendar days of signing the telecommunication use and occupancy agreement
and any renewals.
b. For in-kind
compensation, the agreement shall set forth the timeline for the Department to
receive agreed upon telecommunication facilities.
H. By signing a telecommunication
use and occupancy agreement, a provider agrees to accept the following general
obligations and responsibilities:
1. Complying
with the encroachment permit rules in Article 5 of this Chapter;
2. Complying with the terms and conditions
contained in the telecommunication use and occupancy agreement and encroachment
permit documents for installation, operation, maintenance, and relocation of
telecommunication facilities;
3.
Not having exclusive access or rights to the right-of-way;
4. Having the term length of the
telecommunication use and occupancy agreement to be for one year, 20 years, or
30 years with an option to renew the agreement at the current applicable
starting rate for the first year of a new agreement or renewal; the rate will
be increased annually if the renewal is for a one-year period, otherwise
pursuant to the terms of a new 20-year or 30-year agreement; and
5. Terminating the telecommunication use and
occupancy agreement due to removal of facilities from the right of way.
a. For any monetary compensation, the
provider shall receive a prorated refund based on the number of months
remaining in the term agreement.
b.
For any in-kind compensation, the access to facilities or services provided
will terminate at the time of the removal of the facilities.
