Acquiring Utility Property Interests and Reimbursing Utility Relocation Costs: A Guide (2023)

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21   Integration Within the Project Delivery Process As discussed previously, the procedure for acquiring utility property rights depends on multiple factors, including, but not limited to, property interests associated with utility facilities (e.g., utility easement, property in fee simple); policy for claims of prescriptive right; type of property interest the state DOT acquires for a project (e.g., fee simple, highway easement); characteristics of utility facilities (e.g., transmission versus distribution, active versus inactive); and characteristics of utility conflicts and resolution strategies (e.g., remain in place, relocate within the highway right-of-way, replacement easement, shared utility easement). Because the specific activities to complete can vary significantly from one case to the next, this guide provides only a high-level depiction of how these activities can be integrated within the project delivery process. Figure 5 shows a variation of the project delivery process diagram in Figure 1, with six stages (see numbered boxes in Figure 5) that correspond to important mile- stones for right-of-way acquisition and utility relocation purposes. Stage 1 (Planning Phase) As Figure 5 shows, Stage 1 corresponds to the beginning of the project delivery process when planning activities take place. At this point, the project has not started, but the state DOT is using the results of the planning process to develop an initial project scope and obtain authorization to start developing the project. Stage 1 does not include specific right-of-way or utility process activities. However, through utility coordination meetings and participation in other planning-level events, the state DOT can identify critical utility-related issues to address during project scoping. Planning enables the state DOT to identify major utility facilities, such as transmission lines, communication hubs, and major water, oil, and gas pipelines. These facilities are likely to have property interests that can impact the project. Key actions during Stage 1: • Identify major utility-related issues that might affect the project scope. Utility investigations are usually not conducted at this stage. • Meet with utility owners about the planned project. • Inquire about utility property interests that could have a major impact on the project. • Prepare a planning-level cost estimate that incorporates utility property interests, including factors such as utility corridor valuations. Workflow Stages and Milestones

22 Acquiring Utility Property Interests and Reimbursing Utility Relocation Costs: A Guide Stage 2 (Preliminary Design Phase) As Figure 5 shows, Stage 2 corresponds to the part of the project delivery process when potential utility conicts are identied for the rst time during the preliminary design phase. It involves identifying signicant property interests and potential impacts. is activity takes place at the beginning of the preliminary design phase, along with other data collection activities, in preparation for the development of alternative alignments. Key actions during Stage 2: • Send notications to utility owners. • Conduct a preliminary utility investigation based on existing records. • Gather information about major physical constraints associated with utility facilities. • Conduct an initial assessment of utility impacts and determine where additional data are needed. • Prepare a preliminary cost estimate that includes utility property interests and an assessment of whether some of these interests will need to be acquired and will result in utility relocations. Stage 3 (Preliminary Design Phase) As Figure 5 shows, Stage 3 corresponds to the part of the project delivery process that occurs near the end of the preliminary design phase when the preferred alignment is being rened and a clear picture of the required highway right-of-way emerges. A preliminary right-of-way plan and corresponding cost estimate are complete that take into consideration property interests and restrictions, such as existing right-of-way limits, easements, and title records maintained by Figure 5. Typical project delivery process showing six major stages of right-of-way acquisition and utility relocation. (Adapted from the Texas A&M Transportation Institute.)

Workflow Stages and Milestones 23   local public entities. At this point, the environmental review is (or should be) nearing comple- tion. A utility investigation that includes all aboveground utility facilities is complete, along with a utility investigation that uses geophysical techniques to improve the quality and completeness of the inventory of underground utility facilities. Key actions during Stage 3: • Survey aboveground utility facilities. • If possible, conduct a utility investigation using geophysical techniques to identify and docu- ment underground utility conflicts. • Identify and document utility conflicts using a utility layout and utility conflict list. • Request that utility owners confirm conflict locations, assess constructability challenges, and discuss potential resolution strategies. • Identify which utility facilities are likely to remain in place, need relocation within the highway right-of-way, or need relocation using a replacement easement outside the highway right-of-way. • For utility facilities that are likely to need relocation, identify the area that will be needed to accommodate the relocation. • Conduct a title search to identify property interests and restrictions, including utility property interests. • Prepare a preliminary right-of-way plan. • Complete an environmental review and request environmental approval. Stage 4 (Final Design Phase) As Figure 5 shows, Stage 4 corresponds to the part of the project delivery process, between 30 and 60 percent design, when the state DOT finalizes the horizontal and vertical alignment and undertakes other design activities, including drainage design. At this point, if the utility inves- tigation has not been done, the agency collects data using geophysical methods and test holes. After receiving environmental approval, the state DOT completes the right-of-way plans and prepares property descriptions. After receiving authorization to acquire right-of-way, the state DOT prepares appraisals and proceeds with relocation assistance services and the acquisition of property interests for the project. Key actions during Stage 4: • Excavate test holes at specific locations and conduct geophysical investigation as soon as pos- sible, if these actions have not been done. • Analyze and review utility conflict resolution strategies with an emphasis on avoiding or mini- mizing conflicts. • Identify or confirm which utility facilities are likely to remain in place, need relocation within the highway right-of-way, or need relocation using a replacement easement outside the high- way right-of-way. • Prepare utility relocation plans, schedules, and cost estimates. • Execute utility agreements if sufficient information is available. • Prepare final right-of-way plans and revise right-of-way cost estimates. • Obtain authorization to acquire right-of-way. • Conduct appraisals and begin the acquisition of parcels and relocation assistance services. Stage 5 (Final Design Phase) As Figure 5 shows, Stage 5 corresponds to the part of the project delivery process, around 60–90 percent design, that occurs when all the major elements of the project are in place, includ- ing horizontal alignment, vertical alignment, and the drainage design. Focus then changes to

24 Acquiring Utility Property Interests and Reimbursing Utility Relocation Costs: A Guide the analysis and completion of design details. At this point, right-of-way acquisitions are pro- gressing, utility agreements are being executed, and utility relocations are taking place. After 90 percent design, the agency begins to assemble the final project PS&E documents, prepares right-of-way and utility certifications, and prepares the bid package. Key actions during Stage 5: • Acquire property interests and provide relocation assistance services. • Execute utility agreements and proceed with utility relocations. • If utility owners acquire replacement easements, monitor the process to ensure utility reloca- tions are not delayed. • If the state DOT acquires replacement easements, conduct negotiations with property owners and acquire the property interests. This activity is conducted as part of the process to acquire right-of-way for the project. • Monitor utility relocations to ensure facilities are built and surveyed properly and depicted on as-built plans. • Refine utility relocation schedules. • Include utility plans and utility relocation schedules in PS&E documents. • Prepare right-of-way certification and utility statement for inclusion in the bid package. Stage 6 (Construction Phase) As Figure 5 shows, Stage 6 corresponds to the part of the project delivery process that occurs at the beginning of the construction phase. At this point, the focus is on completing all remaining utility relocations, including those relocations utility owners undertake on their own and those included in the highway contract. A well-managed process is one in which all rights-of-way, includ- ing replacement easements, are acquired before the beginning of construction, and only a few utility issues remain during construction. Key actions during Stage 6: • Conduct a preconstruction utility coordination meeting. • Conduct construction utility coordination meetings. • Assess new utility conflicts and the corresponding impacts uncovered during construction, if applicable. • Update utility relocation schedules. Additional Suggestions Identify utility property interests earlier during project delivery. Regardless of whether the state DOT has the authority to acquire replacement right-of-way, a significant benefit can result from identifying utility property interests early, preferably no later than 30 percent design and earlier than the completion of the environmental review. For this practice to be effective, its implementation should be combined with an earlier identification of existing utilities that uses appropriate techniques and coordination between right-of-way agents and utility coordinators. Standardize definitions and usage of relevant terms. Using standardized terminology is likely to have multiple benefits, including a more consistent application of policies and procedures, as well as reducing confusion in communications with utility owners. Critical terms should be clearly defined in plain language and consistently used in agency manuals, forms, and other policy documents.

Workflow Stages and Milestones 25   Include content about the acquisition of utility property interests in utility manuals. Includ- ing content in manuals and other policy documents providing clear guidance on how to handle utility property interests will be highly beneficial regardless of whether the state DOT has the authority to acquire replacement right-of-way for utility relocations. For maximum benefit, the content will include examples describing typical situations or cases. The content will also include information and clear guidance on escalation steps and consequences. Use plain language to describe reimbursement eligibility requirements. Presenting infor- mation in clear terms and using plain language whenever possible will have multiple benefits, such as consistency in the application of policies and procedures and a more effective, transparent relationship with utility owners.