BILL ANALYSIS
AB 2511
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Date of Hearing: April 22, 2002
ASSEMBLY COMMITTEE ON TRANSPORTATION
John Dutra, Chair
AB 2511 (Dutra) - As Amended: April 29, 2002
SUBJECT : Project delivery: utility relocation
SUMMARY : Allows a public entity to avoid project delivery
delays in connection with a transit or transportation capital
improvement project, by authorizing those agencies, under
specific circumstances, to assume utility relocation work from a
utility that has abandoned the work. Specifically, this bill :
1)Sets forth findings regarding the necessity of utility
relocation work and the potential for significant cost
increases from delays in such work. The bill also declares
that it is in the best interest of the state that utility
relocation work on transportation capital improvement projects
be completed expeditiously to avoid unnecessary costs and
delays in completing these vital projects.
2)Establishes definitions, based on state and federal law, for
utilities that would be subject to this act, and defines a
public entity as a city, county, city and county, special
district, joint powers authority, or state agency.
3)Specifies that, in cases where a utility enters into a
relocation agreement with a public entity, the agreement must
contain the following components:
a) Location of the work to be completed;
b) Cost arrangements between the parties for the work to be
conducted;
c) A schedule for the work to be completed;
d) Remedies for contract impairment;
e) Definition of default on the part of either party;
f) What constitutes abandonment of utility relocation work,
and remedies for addressing any abandonment;
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4)Authorizes a public entity to assume utility relocation work
in connection with a transit or transportation capital
improvement project, in cases where the utility has abandoned
the work. The public entity's authority to assume the
relocation work from the utility would be subject to the terms
and remedies that were established under the original
relocation agreement.
5)Authorizes a public entities have assumed utility relocation
work under the terms and conditions of this act, to issue
contracts with another qualified entity to conduct the work.
6)Requires the utility to offer first right of refusal to a crew
or other subgroup of its own employees that are qualified to
conduct the work. If the crew or subgroup elects not to
contract with the public entity for the work, the public
entity is required to choose a qualified firm or agency from a
list that the utility is authorized to provide.
7)Requires that any utility relocation work performed or caused
to be performed by the public entity be done according to
industry standards, under the oversight of the utility, and
upon the acceptance of the utility.
8)Provides that the rights and remedies that are made available
to a public entity under this act are supplemental to any
pre-existing rights and remedies held by that entity.
9)Authorizes the Alameda Corridor Transportation Authority
(ACTA) to provide funding for utility relocation work in
accordance with an executed utility relocation agreement that
is made pursuant to this act.
EXISTING LAW authorizes certain transit districts to exercise
the right of eminent domain to take any property necessary or
convenient to the exercise of their powers. When exercising
this power, transit agencies are required to pay the cost of
removal, reconstruction, or relocation of any structure,
railway, main, pipe, conduit, wire, cable, or pole of any public
utility which is required to be moved to a new location.
Transit districts must also pay any applicable damages from the
taking, injury, or destruction of property.
FISCAL EFFECT : None
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COMMENTS : This measure would create a remedy for public
agencies who are faced with potential project delays and cost
increases in situations where a public utility has defaulted or
abandoned an agreement to relocate their facilities or assets.
For many transportation capital improvement projects, it is
necessary for public utilities to be moved and relocated in
advance of construction of these projects. In these cases, the
project sponsor enters in to a utility relocation agreement with
the affected public utilities. These agreements spell out the
terms and conditions under which the utility relocation work
would be completed, as well as the terms and conditions under
which the costs for the work would be handled. The affected
public utilities are responsible for doing the design and
construction of the utility relocation work. The costs for the
work are either borne entirely by the local project sponsor,
borne entirely by the affected public utilities, or shared
between the local projects sponsor and the public utilities,
depending upon the terms and conditions of the relocation
agreement.
Utility relocation work must be completed before the local
project sponsor can award a construction contract of the
project. If the utility relocation work cannot be performed
expeditiously or cannot be completed at all by the appropriate
public utility, then the result is significant costs to the
public because construction work for the project is delayed.
Therefore, it is essential that utility relocation work on
transportation capital improvement projects be completed
expeditiously to avoid unnecessary costs and delays in
completing these projects.
Project sponsors have had problems getting these public
utilities to perform relocation work on some of their
transportation capital improvement projects. Because
construction contracts cannot be awarded until this work is
completed, this situation has negatively impacted the
construction schedules of some projects.
For example, in the Bay Area, the Santa Clara Valley
Transportation Authority (VTA) recently experienced a six-month
delay on its Capitol Light Rail Project because of the inability
of one public utility to design and construct utility
relocations associated with this project in a timely manner.
VTA is experiencing the same difficulties on its Vasona Light
Rail Project and is likely to see its schedule for this project
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slip by three to six months. Both of these projects are funded
through Santa Clara County's 1996 Measure B Transportation
Improvement Program, a local half-cent sales tax program for
transportation purposes.
The issue has not been exclusively one of cost. In fact if the
public utility cannot pay for its portion of the costs due to
financial difficulties, the project sponsor typically offers to
cover the utility's share and to be paid back by the public
utility at a later date. The issue has been the inability of
certain public utilities to get their crews out on the project
site to actually do the work because, given their current
circumstances, the public utilities consider this work to be of
a lower priority. For the local project sponsor, however,
completion of utility relocation work in a timely manner is
critical.
AB 2511 would ensure the expeditious completion of utility
relocation work for transportation capital improvement projects.
Prior legislation : This measure addresses issues that are
similar to the following measures:
AB X2 30 (Dutra) currently pending in the Senate Utilities
Energy, Utilities and Communications Committee;
AB X277 (Dutra) currently pending in the Assembly Transportation
Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
California State Association of Counties
California Transit Association
City of Moreno Valley
League of California Cities
Santa Clara Valley Transportation Authority
Sempra Energy
Opposition
None received
AB 2511
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Analysis Prepared by : Andrew Antwih / TRANS. / (916) 319-2093