Local Government Utility Relocation in Right-of-Way

The act establishes a process by which local governments and investor-owned utility companies with more than 250,000 customers may coordinate on utility relocation work that is necessitated by a road improvement project. A road improvement project does not include a project in a roadway under the control of the Colorado department of transportation (CDOT) unless the construction is performed by or under the direction of the local government pursuant to an agreement with CDOT.

Under the process established by the act, a local government is required to notify any affected utility company of the details of a road improvement project before beginning the project and in the event of a change in the scope of the proposed project. These details include the proposed design, funding details, the specifics of the utility conflict, and the estimated timeline for the road improvement project and utility relocation. If local governments and utility companies so choose, they may coordinate on road improvement projects necessitating the removal, relocation, or alteration of utility lines in a local government's right-of-way and commit to a schedule for utility relocation by means of a clearance letter. The required components for a clearance letter include the scope of the utility relocation, schedule and coordination requirements for the utility relocation, accountability for traffic management and the discovery of hazardous materials, a dispute resolution mechanism, and requirements for prompt performance, staking, and project approval. A clearance letter must also provide that the utility company pay for actual damages associated with its delay in the performance of the utility relocation, except those caused by a force majeure, the discovery of hazardous materials, or a change in the scope or schedule of the road improvement project. The act also outlines the timeline and process for a local government to accept or reject a completed utility relocation.

The utility relocation coordination process outlined by the act does not prevent a local government from pursuing alterative arrangements for road improvement projects, in which case the local government and utility company need not follow the process requirements outlined in the act. The act does not cover a local government that has granted a franchise to a utility company and does not alter the terms of any franchise or license granted pursuant to statute or the state constitution.

APPROVED by Governor June 3, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)