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Pavement Utility Cuts
Appendix E. Survey Responses
1. Fees charged for use of State-owned land (upland and submerged).
One time easement fee is set based on fair market value of state owned land for both upland and submerged land. Independent appraisal is used for to determine fair market value. Fee varies per transaction and location.
ROW permit fee of $25 per rod (16 1/2 feet) is charged for the minimum 2" pipe (or fiber optic cable). Fee is collected one time and is good for 20 years. Permit can be renewed for a second 20 years with fee adjusted for last 20 years inflation based on Consumer Price Index. Fee was set in 1977. Same process for uplands and submerged lands.
Natural Resources has negotiated two land licenses with two interstate gas pipeline companies who have current gas pipeline easements and are adding fiber optic facilities in same ROW corridor. 1st license charge was $3.50 per linear foot of conduit and capped the installed fiber strands at 200. Adding fiber stands over 200 would require the company to request Natural Resources to approve an increase. 2nd land license set fee at $3.50 per linear foot of conduit times the ratio of strand of fiber installed over 200. This was done to address changed technology that increased the number of fiber strands in the bundle. License is for 10 years with two 10-year renewal options. Natural Resources has not encountered submerged land issue but would not envision a different fee structure. Submerged lines only increase complexity of work and raise environmental restrictions that may increase company costs.
No fee is established at this time, but State must approve plans for use of public lands. State is trying to develop a fee policy. Applies to both uplands and submerged lands.
No fee is charged for a permit, but an extensive permit review process is in place to protect state owned land especially for wetlands and environmentally sensitive areas of the state.
A one time administrative fee of $100.00 is charged for each crossing of public land and a one-time easement fee is collected based on the fair market value of the fiber corridor. Amount varies by location. Submerged land utility easement fee is $250 regardless of length. State has no policy to charge fees based on gross revenue of the fiber company.
State land office charges a fee for each crossing of state land (with the least impact), the greater of: 100% of fair market value (FMV), $250 or the highest comparative compensatory payment. Permits for use of submerged land under State control such as "navigable rivers" are granted at no cost except in cities. In cities, the land use compensation is tied to adjoining appraisal property value of land on each side of river at the access corridor.
State Building and Property Management Dept charges a $200 a one time easement fee for fiber optic use of state lands-uplands or submerged. This is the only fee.
General Land Office charges a one time application fee of $50 to process an application to use state-owned land. An additional miscellaneous easement fee is also charged depending upon the location of the fiber optic corridor in the State. Assuming a bay/estuary corridor with both upland and submerged land, the fee for 0- 50 ft wide ROW corridor would be $10 per rod (16 1/2 feet) for 10 years with a $500 minimum charge for fiber optic use. In the Texas coast region, there is no difference in upland or submerged land use fees, but fees may vary by zone in other parts of the state.
There does not appear to be central state land office that establishes common permit or easement fee. Each department that owns land sets its own fees to meet their unique requirements.
Land and Resources does not have a fee schedule for granting fiber optic companies use of public lands. All previous transactions were negotiated considering among others: the location, land value and beneficiaries. A new policy is being developed and is expected to be available in November 2000.
2. How does the State process requests?
Company applies to the respective State dept who owns land. Dept. determines impact and sets corridor; Dept. refers to State Properties Commission for review & approval in the best interest of Georgia.
If proposed corridor is sent to Office of State Lands, they will identify state dept lands to be crossed. Company submits application for easement permit to Office of State Lands and provides engineering drawings, ROW plat maps and cross sections including lake crossings (high water to high water tide) and streams (low to low) Land office coordinates with affected departments and reviews proposals, sets fees and approves permit applications.
Normally, each department owning state land receives and processes land license requests related to use of their land. However, these two licenses were processed differently because they qualified as high tech projects, and State had passed a new law to focus its efforts on high tech and established a separate review and approval process.
In both cases, companies submitted requests to Natural Resources to use fiber in state owned lands using previously granted gas line easements. After the company request was reviewed and processed, Natural Resources sent them to Budget and Management and Special Legislative High Tech Review Committee for approval. Furthermore, to fund high tech investment, the state created a "high tech fund" in which proceeds from all licenses of state lands from high tech ventures would be deposited (rather than to individual departments) and then made these funds available to improve the technological capabilities of state agencies.
Process under development; Any request, however, must first be sent to the dept in the state who owns the property for review and evaluation and then if they concur, State Public Lands Division sets terms and approves agreement.
Company submits a standard application for a permit to use state owned lands to the department that owns the land. Assistance is available to assist in developing the least disruptive corridor in a pre-application conference. All requests for use of submerged lands (wetlands, protected bodies of water and streams) must be reviewed by Environmental Conservation and General Services Departments and potentially US Corps of Engineers.
Company submits application and plans to State Property Office for review. State determines the final corridor and independent appraiser sets market value for land easements. State does not provide guidance or dictate method to appraiser. State approves final plans and sets applicable fees.
Company completes application, provides local plans and zoning compliance sign off; state land office processes application and coordinates with adjoining owners and other properties of interest. Any altering of state waterway requires special permit.
Company completes a State application for an easement, includes a copy of construction permit issued by Department of Health and Environment, 2 copies of plat, dated and signed off by land surveyor and sends packet to Property Management for processing and approval.
Companies submit an application for ROW use to the regional field office of General Land Office with documentation of the request, (engineering drawings, proposed route on plat maps, etc). Office coordinates review among other affected departments as needed, conducts field reports, determines and collects fees and issues permits.
Each state department that owns land has established its own process for using its land.
New process is being developed.
3. Fees charged for use of highway right-of-way.
State DOT does not charge a fee if the company is a PUC certified utility company. Company must complete a permit application to use ROW on state and US highways. No ROW use is permitted on interstates.
Company submits application to local district DOT office using a standard permit form. Must include set of plans and post bond to cover the cost of the work.
DOT charges a one time utility permit fee of $400 for each major (parallel) crossing of highway plus for all distances over 200 ft, a $0.25/linear foot fee up to a maximum of $2500 and also $50 for each minor crossing.
CALTRANS charges a permit application fee to recover the costs for processing encroachment permit applications and administering permits. The permit fee is variable and is calculated depending on five components: hours, standard hourly rates, fieldwork, bridge tolls and miscellaneous fees. The fee varies with the complexity of the permit application. Encroachment permits are issued for use of conventional highway ROW but not for interstates or controlled assess highways.
Company submits application for an encroachment permit with supporting plats and engineering drawings to each district office in which cable passes. District office reviews requests, coordinates with other departments and approves permit for work in their district.
DOT charges permit fees: in urban areas: single user: $5000/mile/year; joint use: $3750/mile/year;
In suburban areas, where average daily traffic volume is >2000 vehicles/day, fee is $2,000/mile/year and if <2,000 vehicles/day, fee is $1,000/mile/year. Suburban fee is reduced by 25% for joint use. In local aid hwy outside the area, fee is $1,000/mile/year. Fees set in 1986 and are under review.
DOT negotiates all fees for fiber optic use of the ROW under a new approach begun recently. DOT has prepared an RFP for Resource Sharing of any Maryland's public ROW and state owned land and released it this year. The RFP is good for 5 years and requests fiber optic companies to submit proposals on how best to utilize the state land and highway ROW. DOT then evaluates each proposal as it's submitted and negotiates compensation based on Maryland's fiber optic needs for that specific project. Proposal follows the high tech review process previously mentioned.
No permit fees, admin fees or fixed fees charged. Compensation is negotiated based on each company's proposal and use of public highway ROW for the benefit of the State. Rule of thumb is to recover approximately $1.00 per linear foot of fiber installed-assumed to be an industry standard 7-8 years ago. Fees and terms will vary depending on company proposal. State DOT continuously advertises in the NY Contract Reporter and seeks Requests for Proposals from fiber optic companies to use state highway ROW based on the State's Accommodation Plan for Fiber Optic Facilities. Each quarter the DOT Property Management Division receives and reviews proposals, negotiates terms and approves use of ROW for fiber.
NC DOT does not charge any type of fee for use of highway ROW for either utilities or fiber optic cable. However, they do tightly control and limit the access and use of ROW with a comprehensive plan review and approval process. State law (1930's circa) does not permit DOT to grant parallel access to interstate and controlled access highways.
DOT does not charge a permit, administrative or application fee for use of the conventional highway ROW for fiber optic cable; however, companies must apply for and been granted a permit to install fiber optic cable in ROW. Companies submit a letter of request to the DOT district office in which the project is located and include plat map detailing starting and ending points, scope of work, traffic control plans, and engineering drawings certified by engineer. DOT reviews, coordinates and approves plans and issues permits.
VA DOT charges a one time $40 permit fee (which includes the first 100 ft of fiber optic cable) to install fiber in highway ROW. The fee increases based on the length of the installed fiber and facilities at $5.00 per additional 100 linear feet and each crossing and pole setting at $5.00 each. Generally use of interstate ROW is prohibited, but Virginia makes an exception. Virginia DOT has also issued an RFP and awarded a sole source contract to Digital Teleport Inc of Virginia to provide fiber facilities and services using the interstate highway ROW to implement their smart highway system. Digital will sublease to other fiber optic and telecommunication carriers and provide Virginia compensation on barter arrangement in the form of infrastructure, equipment, duct space, and dark and lighted fiber to meet Virginia's needs. The agreement has a 20 year term and is renewable for another 20 years.
Washington State DOT charges a $250 permit fee to install fiber in ROW-same as other utilities. There are no other charges. DOT's process depends on the type of highway involved. State highway ROW is subject to permit and company applies to DOT for a permit. There is limited use of controlled access highway and no use of interstate highway ROW unless it goes thru the State approved company Universal Communications Network-Denver. This company was selected in response to RFP to provide fiber optic facilities and service using interstate highway right of way in 1998. Compensation for use of ROW was negotiated with combined cash (upfront-one time $3.6 million payment for approx 750 miles of fiber ROW and facilities) and barter arrangement for State use of fiber (lighted and dark) duct space and equipment. Term 25 years with option to renew for 15.years.
4. Describe the State's current methodology for valuing corridors (e.g. business costs, revenue, land values, etc.) and negotiating with fiber optic companies.
Based on company's application for an easement, the Natural Resources Dept. uses independent appraisal to determine fair market value of proposed corridor on a case by case basis. Each one is negotiated. Based on company's application, DOT uses a fee schedule and length of fiber cable installed in ROW to determine ROW fee with no negotiation.
Office of State Lands uses the length of the fiber cable installed and per unit fee to determine permit fees. No relationship to adjacent property value or fair market value.
Compensation for a corridor ranges from cash to bartered fiber infrastructure to a combination of both. DOT uses some of the following benchmarks to evaluate each proposal: past usage fees collected, what other states charge or what railroads charge, and also consider the current fiber facility needs for Maryland state government, the intelligent highway system or Network Maryland (extending fiber to all schools, libraries, etc.). Each compensation package will be different because timing and needs change.
Corridor value is determined by fair market value determined by independent appraisal.
Fair market value is determined by use of real estate property tax roll (assumed to be market values) for adjoining property adjusted for placement; surface use: 100% of fair market value, and aerial and underground use: 1/3 of fair market value
Past policy of negotiating use of public lands is being reviewed and new policy will be developed. Land and Resources would not disclose proposed fees or process changes.
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