1. LPA – Utility Coordination Natalie Parks, P.E. American Structurepoint, Inc. January 22, 2014

2. Today’s Topics Basic INDOT/LPA Program Key People Utility Coordination Process Submittals Agreements Work in Contract Case Studies Utility Company Comments

3. INDOT/LPA Program Mission: To empower Local Public Agencies (LPA) through excellent education and collaborative relationships, to plan, build and maintain a superior transportation system that promotes economic growth, ensures safety, and complies with all local, state, and federal regulations.

4. INDOT/LPA Program INDOT is Involved on an LPA Project When Federal Dollars are Spent District LPA Project Manager to secure federal funds. District Utility Coordination when there is a reimbursable utility relocation. Must follow federal regulations for utilities CFR 645 (http://www.fhwa.dot.gov/programadmin/utility.cfm Must follow 105 IAC 13 Utility Accommodation Policy (July 2013) INDOT Design Manual LPA Design Guidance Document - Chapter 10

5. LPA Utility Coordination Key people LPA Employee in Responsible Charge (ERC) LPA Design Project Manager Utility Coordinator Utility Personnel INDOT Project Manager Right-of-Way Manager

6. LPA Utility Coordination Responsibilities of Key People: LPA ERC Review and approve requests form utility coordinator for time extensions/adjustments Concur with, approve, and sign reimbursable and subordination agreements Review and sign Notice of Plan Approval Review and sign Notice to Proceed Approve and pay all invoices

7. LPA Utility Coordination Responsibilities of Key People: Project Manager/Designer Work with the utility coordinator to identify critical points Communicate all plan changes to the utility coordinator Responsible for watching cash flow Signs the work plan as the project manager

8. LPA Utility Coordination Responsibilities of Key People: Utility Coordinator All of the responsibilities already discussed in other sessions No Utility Oversight Agent… Work with Project Manager to establish objectives for utility coordination deliverables Work with Project Manager to develop the risk report Periodically review project funding with Project Manager for reimbursables Provide quality assurance review of work plan for compliance Agreements Provide guidance on the use of SUE

9. LPA Utility Coordination Responsibilities of Key People: District Utility Coordinator Provide oversight only when a utility is reimbursable Submits agreement to Central Office for P.O. Submits agreement to Central Office for FMIS authorization Does not provide general process oversight Does not sign notice to proceeds, notice of plan approval, work plans Does not review invoices from utilities for reimbursement

10. LPA Utility Coordination Ultimately the Utility Coordinator and the Design PM are both responsible for ensuring 105 IAC 13 is followed. Business decisions are made between the Design Team and the ERC

11. LPA Utility Coordination Process Process is the same – (105 IAC 13) Research – 1 to 2 weeks Initial Notice – 1 to 2 months Verification Plans – 2 to 4 months Conflict Analysis – 2 to 4 months Work Plan Development – 1 to 6 months Reimbursable Agreements – 2 to 4 months Notice to Proceed/Construction

12. LPA Utility Coordination Process Follow the 105 IAC 13 rules and allow the appropriate time for response Copy project owner representative on all submissions Include INDOT PM Include MPO if funding is coming from that agency INDOT’s District Utility Coordinator is involved in a LPA projects Utility Coordination process, only when there are Reimbursable Agreements. Do NOT use “minor” unless it is a minor project LPA Utility Coordination Process

13. Research Phase: Many municipalities do not have a permit program Rely more on: Indiana 811 Field visits Field surveys Use previous project information if available Talk to the LPA utility/engineering dept. LPA Utility Coordination Process

14. Initial Notice: Do not need to contact Phil Ivy or Troy Boyd Provide an aerial view of the project area Request information regarding any property interests Bring utilities to the table around verification plans to discuss Right-of-Way needs Establish need for replacement property if the right-of-way acquisition causes the subordination of compensable property rights LPA Utility Coordination Process

15. The biggest difference between LPA and INDOT projects from a scheduling standpoint: Utility Certification, Work Plans & Relocation Drawings are due at Stage 3 Submission to INDOT LPA Utility Coordination Process

16. RFC – Per Section 10-4.03 LPA Guidance Document: Submission prior to RFC should include: Utility Work Plan/Relocation Drawings from each utility or Letter of No Conflict LPA/Utility Reimbursement Agreement for each reimbursable utility Utility FMIS authorization letter or e-mail Utility Certification Utility Special Provisions

17. LPA Utility Coordination Process Reimbursable Agreements Use the INDOT LPA Agreements as established by INDOT General Counsel Should build in approximately 4 months into the schedule when agreements are needed Should submit to INDOT prior to sending to utilities Should submit to LPA Counsel prior to sending to utilities Remind LPA that the agreement is approved by INDOT General Counsel and all revisions must be approved by them

18. LPA Utility Coordination Process Plan Approval Prepare Notice of Plan Approval and provide to LPA ERC for signature once Project has been clear for letting Prepare Notice to Proceed once project has been let NOTE: This is a result of utilities being “gun shy” due to the number of LPA projects that have been delayed

19. LPA Utility Coordination Process Construction Still on Point Coordinate utilities with LPA personnel as needed Suggest the use of an advanced right-of-way clearing and staking contract Suggest the use of consultant utility relocation oversight

20. Escalation Chain 1.Become well educated in ALL state and federal documents 2.Concurrently contact: Supervisor/UAR of Utility Design Project Manger LPA ERC 3.INDOT District LPA project manager 4.INDOT Central Office – Kenny Franklin, Statewide Director

21. Escalation Chain DOCUMENT EVERYTHING

22. Reimbursable Relocations Too often a local public agency will find out TOO late in a project that there is an sizeable REIMBURSABLE utility that negatively impacts the project Utility coordinator should provide a list of all confirmed reimbursable utility relocations at the end of Stage 1. One (1) large reimbursable utility can create a critical cost that may have a severe impact such that a LPA cannot move forward with their project. Or worse, become a burden afterward

23. LPA Utility Relocation Agreements When is an LPA/Utility agreement required? Only when a utility relocation is required due to being in direct conflict. There are 3 scenarios: Reimbursable: When a utility has a compensable land right When a municipal utility is located in the right-of-way of a project owned by same municipality Reimbursable : Work in Contract - The utility relocation is constructed as part of the road contract. Non-reimbursable: Work in Contract - The utility agrees to include the utility relocation as part of the road contract. These bid items should be identified as “non participating” and 100% of the successful bid will be paid up front by the utility company.

24. LPA Utility Relocation Agreements Municipal Agreements Reimbursable – LPA will usually push for municipal water & sanitary work to be in contract Agreement is required if the Utility Board is a separate entity from the Board of Public Works (or the “owner” of the project) Agreement is NOT required when the two entities are the same Non-reimbursable – the LPA can opt to have the work done in contract to upgrade, etc., but this will not be reimbursable Work in-contract Agreement The utility will pay 100% of the cost

25. Work in Contract Early on (Stage 1) ask the utility companies to consider including their relocations in the LPA project. Benefits – Why do we recommend WIC : Allows better overall construction coordination with the contractor in control of the scheduling Reduces, and hopefully can eliminate, utility delays Saves on overall construction costs (Mobilization, pavement cuts, shoring, overall efficiency…) Eliminates claims, contractor responsible for the x, y and z location Saves on overall construction time “The Contractor knows where everyone went”.

26. Work in Contract SECTION 5 – REIMBURSEMENT (WORK IN-CONTRACT) Example Breakdown in Agreement: “(a) 20 % of the cost to design and prepare construction plans, specifications and preliminary itemized cost estimate for relocation of the Utility’s facilities shall be borne by the Local Public Agency. (b) 20 % of the cost to provide testing and inspection services for relocation of the Utility’s facilities shall be borne by the Local Public Agency. (c) The Local Public Agency shall bear 20 % of the cost of relocating the Utility’s facilities. (See exhibit “B”). “

27. Work in Contract SECTION 5 – REIMBURSEMENT “The cost of relocation of the Utility’s facilities (provided for in (c)) shall equal the amount paid by INDOT to the contractor (based upon the actual units of work performed at the unit prices set out in the contractor’s itemized proposal or extra work agreement), selected in accordance with the procedure in Section 2.” NOTE: regardless of whether the utility is reimbursable, the LPA is agreeing to include the utility work in their contract with the Contractor, which is being bid by INDOT. INDOT will invoice the LPA for their portion of the work and the LPA will then invoice the utility for their portion of the work.

28. Work in Contract SECTION 5 – REIMBURSEMENT “The estimated cost of relocation is $_ (See Exhibit “B” for an itemized estimate of all anticipated costs, including but not limited to, materials, labor, and equipment costs.) The estimated cost of non-reimbursable relocation work to the utility’s facilities is $. The Utility has appropriated, duly made and entered of record, the sum of $ _ to apply to the cost of the project. A copy of the Utility’s official record wherein such appropriation was made is attached as Exhibit “C”. If the amount to be contributed by the utility is zero then no Exhibit “C” is attached.”

29. Work in Contract SECTION 5 – REIMBURSEMENT When the utility is 100% reimbursable, then the amount listed is the estimated cost of non-reimbursable work would be $0.00. When the utility is partially reimbursable, the breakdown of reimbursable to non-reimbursable work must be provided. When the utility is non-reimbursable, the dollar amount would be equivalent to the total cost of relocation as shown in Exhibit “B”. Some municipalities may opt to have the utility pay the 20% match. This would be done using an MOA, not this agreement.

30. Work in Contract SECTION 5 – REIMBURSEMENT Highly recommend the use of a summary sheet when doing a Work-in-Contract agreement on a LPA project and included with Exhibit “B” Summary sheet would include: Breakdown of standard costs per FHWA Total cost of relocation that is shown in the agreement Breakdown of costs to be borne by INDOT and borne by LPA If the cost is $100,000 then identify the cost to be borne by INDOT to be $80,000 and the cost to be borne by LPA to be $20,000 When the utility shall bear a portion of the cost, then separate that as well

31. Work in Contract SECTION 5 – REIMBURSEMENT (EXAMPLE SUMMARY)

32. Work in Contract The reimbursements paid for under SECTION 5: (a), (b), and (c) shall include the cost sharing that is paid with federal funds. This project shall be split in accordance with the funding established, which is typically paid with 20% LPA funding and 80% Federal funding. How the payments are made: Prior to the awarding of the contract, the LPA submits their 20% of the Utility Relocation per the Construction estimates. Contractor actual cost invoices are reviewed and approved by the project manager and paid for with 20% LPA funds / 80% Federal funds. Any cost overruns or claims should be approved and paid for at the same percentages as the original contract.

33. Additional Charges and Invoices Assist the ERC in determining if a scope change to the existing agreement, or a cost overrun requested by the utility are appropriate. Make sure that all scope changes and cost overruns have been approved by the ERC prior to the utility company proceeding with work. If not, and the utility does any of this work without prior approval, these charges are not reimbursable. FHWA and INDOT will not reimburse for addition work without prior authorization.

34. Additional Charges and Invoices Request that invoices be sent to BOTH the LPA ERC and the utility coordinator UC can ensure the code is being followed Allows the UC to review scope was adhered to Allows the UC to review the total invoice and compare it to similar projects to verify invoice is reasonable Allows the UC to verify only work that is reimbursable was invoiced Assist the ERC in ensuring that the charges are per the agreement and the utility invoices are correct. If an invoice is incorrect or inappropriate, advise the ERC in resolving the issues with the utility.

35. Case Study

36. Project involves: Municipal utility relocation Right-of-way limitations Lift station AND Booster Station Portions of utility on documented, exclusive easement Project owner owns the utility Utility requires relocation due to new roundabout & MSE walls Case Study

37. Is the utility reimbursable? If so, by whom? Does the utility need to secure permanent right-of-way? If so, why? If not, why not? Case Study

39. Case Study – Existing Pipeline Company has a 14” diameter gas pipeline that crosses an existing road that the LPA is proposing to add a lane. Existing pipeline has a casing pipe that extends 5 ft. beyond the existing paved shoulder. New pavement will extend beyond the end of the casing. Pipeline Profile: The top of the pipeline is 6 ft. below the proposed pavement. Existing pipe is structurally inadequate for the loading without a casing pipe.

40. Pipeline Company requested 100% reimbursement. Claim – Lose the ability to access the end of the casing pipe, therefore will not be able to slide the pipe out for future maintenance. They proposed 2 possible options and relocation costs: Option #1: Bore and install a new pipeline with thicker walls under the new wider pavement. Option #2: Open cut pavement, remove the existing casing, and provide maintenance to the existing pipeline, and install a no-load slab over pipeline. Case Study Exercise

41. What costs are reimbursable? Option 1: New pipe bored in place Option 2: Remove Casing Inspect and provide maintenance to coating under casing. Install no-load slab Note: Current Industry Design Standards no longer recommend a casing pipe be used due to cathodic corrosion. Case Study

42. INDOT’s Response: Pipeline is in conflict with the roadway improvements due to the inadequate structural capacity of the pipe. Option 1: Only the segment of the pipeline between the existing roadway right-of-ways is within an easement with property interests, and therefore is eligible for reimbursement. Option 2: Removing the casing and inspecting the pipe’s outer wall coating is a maintenance item, and therefore is not reimbursable. Neither of these options proposed by the utility company will allow for future maintenance. Case Study

43. INDOT’s Response: Therefore only the no-load slab over the section of pipeline within the easement is reimbursable. It is the Utility Company’s decision on either boring and installing a new line, or open cutting and removing casing, and installing the no-load slab. The Utility Company should coordinate with LPA’s contractor to schedule open cut when road is shutdown. Case Study Practical Exercise

44. Utility Companies Several issues utilities have had with LPA utility coordination Wide range of experience levels Do not know to follow the 105 IAC 13 when federal aid projects LPA’s often will claim their projects are Minor Projects to attempt to hold utility companies to shorter response time Utility companies receive notification to attend a “Pre-construction” meeting when they had not received a Notice to Proceed LPA project lettings are often delayed

45. Subconsultant Utility Coordinator When to use a subconsultant when your firm is prequalified? 1.) Relatively low experience level 2.) Difficult project 3.) Many reimbursable utility relocations 4.) Accelerated project development schedule

46. Questions? Questions?