Louisiana Administrative Code
Title 70 - TRANSPORTATION AND DEVELOPMENT
Part II - Utilities
Chapter 3 - Department Relocation of Publicly Owned or Non-Profit Utilities
Section II-301 - Introduction
Universal Citation: LA Admin Code II-301
Current through Register Vol. 50, No. 3, March 20, 2024
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.
AUTHORITY NOTE: Promulgated in accordance with R.S. 48:381(C).
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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