Alaska Administrative Code › Title 17 - Transportation and Public Facilities › Chapter 15 - Utility and Railroad Permits › Article 3 - Utility Relocation and Installation › 17 AAC 15.351 - Estimates and costs

Current through May 31, 2024
(a) The cost estimate referred to in
				17 AAC 15.331(c)
				must reflect all the work shown on the plans and the scope-of-work statement
				referred to in
				17 AAC 15.361 and
				17 AAC 15.371, respectively. The
				estimate must set out the items of work to be performed in sufficient detail to
				provide a reasonable basis for analysis by the department. All factors included
				in the utility's general overhead account must be listed in the cost
				estimate.
(b) Preliminary
				engineering costs incurred after the date of the department's letter
				authorizing the utility to proceed with preliminary engineering will be
				reimbursable or chargeable to the utility's relocation-project work order or
				account. Preliminary engineering costs will continue to be chargeable to the
				utility's relocation-project work order or account until the date that the
				utility relocation agreement has been approved and signed by the department.
				Construction engineering costs, including engineering and inspection costs
				associated with the relocation of the utility facility, that are incurred after
				the date that the utility agreement is signed and approved by the department
				are reimbursable.
(c) Charges for
				engineering, inspection, equipment, transportation, materials handling, and
				labor included in the utility's general overhead account, need not be listed
				separately in the cost estimate.
(d) Charges incurred by the utility before
				the department's letter of authorization to proceed with preliminary
				engineering is sent will, in the discretion of the department, be ineligible
				for reimbursement.
(e) When the
				department determines that an existing facility must be removed by a utility,
				the actual cost of removal will, in the discretion of the department, be
				eligible for reimbursement. Where appropriate, the salvage value of the
				facility to be removed will be credited against the cost of removal.
(f) The department will have a credit against
				reimbursable costs set out in the relocation agreement equal to the value of
				any materials removed by the utility, unless the utility relocation work is
				being performed under a state contract or under a utility-let contract and the
				utility relocation agreement specifies that all removed materials become the
				property of the contractor. The value of the department's credit is to be
				measured by whatever rate the utility uses in its normal operations and is to
				be equal to the salvage value of all materials removed less the cost of
				removal. All materials must be removed by the most economical method possible.
				Recovered materials which are not usable in the normal operations of the
				utility but which have a sale value as scrap must be included in the
				calculation of the credit granted to the department. The value of the recovered
				scrap materials is to be determined by their estimated scrap value.
				Temporary-use materials which are reusable must be credited to the utility
				relocation project at stock prices, less the utility's prescribed
				stock-handling charge.
(g) Where
				betterments are not required by the department's construction project, but are
				installed solely for the benefit of the utility company, all costs attributable
				to these betterments are not eligible for reimbursement.
(h) The utility shall show on its work order
				account all relocation costs specified by the relocation agreement, including
				reimbursable and non-reimbursable items. Separate work order accounts will, in
				the discretion of the department, be used where the reimbursable and
				non-reimbursable portions of work can be distinguished by location or type of
				facility. All work order accounts to be used by the utility must be shown in
				the relocation agreement.
(i) An
				eligibility ratio for reimbursement must be determined and set out in the
				relocation agreement when the relocation work includes both reimbursable and
				non-reimbursable items.
(j) The
				department has an expired service life credit against reimbursement costs if a
				utility facility, including a building, pumping station, filtration plant,
				electric power substation, or other similar operational unit, is replaced.
				Credit for expired service life will not be required for a segment of utility
				service, distribution, or transmission line.
Authority:
AS
					 02.15.104
AS 19.05.020
AS 19.05.040
AS 19.25.020
AS 19.30.051
AS 19.30.121
AS 19.40.065
AS 35.10.220
AS
					 44.42.030