N.M. Admin. Code § 17.4.2.21 - UTILITY RELOCATION ESTIMATES

A. Developing and recording costs: It shall be necessary to develop a cost estimate for the utility relocation engineering and construction. All reimbursable utility relocations shall be in sufficient detail to permit analysis and evaluation of all anticipated costs and all such costs shall be recorded by means of work orders in accordance with an approved work order system except when another method of developing and recording costs, such as a lump-sum agreement, has been approved by the Department and the FHWA.

(1) Each utility shall keep its work order system or other approved accounting procedure in such a manner as to show the nature of each additions to or retirement from the facility, the total costs thereof, and the source of cost. As a minimum, each utility shall conform to the requirements of the Federal Aid Policy Guide on federal aid projects and/or to the Department's Estimate/Billing Guide.

(2) In the event there are changes in the scope of the reimbursable utility work covered by the approved Agreement, plans and estimate, state and/or federal reimbursement shall be limited to costs covered by a modification of the Agreement, a written change order or extra work order approved by the Department, FHWA or both.

B. Salvage, accrued depreciation, betterments:

(1) Credit to the highway project shall be required for the cost of any betterments to the facility being replaced or relocated and for the salvage of the materials removed.

(2) Credit to the highway project will be required for the accrued depreciation of utility facility being replaced such as a building, pumping station, filtration plant, power plant, substation, or other similar operational unit. Such accrued appreciation is that amount based on the ratio between the period of actual length of service and total life expectancy applied to the original cost. Credit for accrued depreciation shall not be required for a segment of the utility's service, distribution, or transmission lines. When the facilities, including equipment and operating facilities, described in Paragraphs 21.2.1 and 21.2.2 [now Paragraphs (1) and (2) of Subsection B of 17.4.2.21 NMAC] are not being replaced but rehabilitated and/or moved, as necessitated by the highway project, no credit for accrued depreciation is needed.

(3) Betterment credit shall not be required for additions or improvements which are:

(a) Required by the highway project;

(b) Replacement devices or materials that are of equivalent standards although not identical;

(c) Replacement of devices or materials no longer manufactured with next highest grade or size;

(d) Required by law under governmental and appropriate regulatory commissions code; or

(e) Required by current design practices regularly followed by the company in its own work, and there is a direct benefit to the highway project.

(4) In no event shall the total of all credits required under the provisions of this regulation exceed the total costs of relocation exclusive of the costs of additions or improvements necessitated by the highway project.

Notes

N.M. Admin. Code § 17.4.2.21

3/10/71, 11/15/96; Recompiled 12/31/01