6.5.1 Reimbursable Utility Adjustment Costs

Costs of betterments that are necessitated by the requirements of the highway project are reimbursable (i.e., forced betterment). Where utility relocations are required for the project and costs are at the expense of the state, the District will review, approve, and forward the statement to the ROW along with its recommendation on reimbursement.
By statute, eligible reimbursable utility adjustment costs are included in ROW acquisition. Reimbursement will be according to the written agreement between the department and the utility.
Reimbursable Cost
. Relocations of a utility facility are at the expense of the state, if:
  • Improved segments on a state highway facility will occupy compensable property of a utility. This includes extension of a highway in an urban area; or
  • The highway is designated as part of the National System of Interstate and Defense Highways. Relocation is eligible for federal participation. Document in the project Utility Agreement.
Shared Cost
. The department and utility must share equal cost of the relocation of a utility facility that is required by:
  • Improvement to a non-tolled highway that will add one or more tolled lanes;
  • Improvement to a non-tolled highway that will be converted to a turnpike or toll project; or
  • Construction on a new location for turnpike or toll project or expansion of such a turnpike or toll project.
After utility relocation is complete, utility owners must submit a final billing statement to the District. Utility relocation costs are the entire amount paid by the utility attributable to the relocation less:
  • Increase in the value of the new facility;
  • Salvage value of the old facility; and
  • Other deductions established by regulations for federal cost participation.