COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         4109-01

Bill No.:          SB 904

Subject:           Capital Improvements; Construction and Building Codes; Environmental Protections; Liability; Public Service Commission; Railroads; Utilities

Type:              Original

Date:               January 23, 2008

Bill Summary:           Modifies provisions pertaining to the Underground Facility Safety and Damage Prevention Act.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 6 pages.

☒ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Resources and Department of Economic Development - Public Service Commission and Office of Public Counsel, and Office of Administration - Division of Facilities Management, Design and Construction and the Administrative Hearing Commission assume no direct fiscal impact to their respective agencies as a result of this proposed legislation.

Officials from the Office of State Courts Administrator state this proposal has no fiscal impact on the Courts.

Officials from the Department of Transportation (MoDOT) assume this proposed legislation amends the definition of "underground facility" which will result in MoDot becoming part of the Missouri One Call System. MoDOT further assumes negative fiscal impact resulting from this legislation based on a pilot project conducted from May to July of 2005 in Buchanan County. MoDOT is also planning another pilot project in Buchanan County for the Spring of 2008. MoDot provided the following assumptions:                                                                          

Buchanan County was chosen because of:

            1) Average number of MoDOT centerline miles

            2) Average number of MoDOT utility facilities

            3) Average number of One Call tickets (work orders)

The pilot was conducted over entire county to check for unauthorized work on right of way.

Ticket (work order) numbers:

            1) Typically the May-July time frame represents 28% of annual One Call tickets

            2) MoDOT received 668 tickets (3 months, 1 county)

            3) Statewide annual projection = 274,000 tickets (work orders)

When One Call initiates a request, they charge the agency $1.20 per request. Based on the pilot project from 2005, MoDOT would incur costs of $328,800 per year.

ASSUMPTION (continued)

Additional MoDOT Staff Time

To minimize confusion and increase accuracy, pilot processes were patterned after existing MoDOT processes. Additional hours used to administer the three-month pilot were:

            1) Clerical – 2 hours per week to receive and route faxed tickets = 26 total hours

            2) Signal Shop – 6 hours per week to review tickets and conduct additional field checks =              78 total hours

            3) Permit Staff – 2.15 hours per week to review tickets for unauthorized work on right of              way = 28 total hours

Projected on a statewide annual basis additional staff requirements would be:

            1) Clerical – 5,200 hours (2 FTE)

            2) Signal Shop – 15,600 hours (10 FTE - one per district)

            3) Permit Staff – 11,500 hours (5 FTE)

The pilot was conducted in the same county as the District 1 office. Subsequently, the study does not project total travel time for field checks.

MoDot also noted that 75% of the tickets issued by One Call to MoDOT were inaccurate, meaning the work being performed was far from the right of way, some over 1000 feet. Of the 668 tickets only nine tickets pertained to non-permit issued work on the MoDOT right of way. Five tickets involved substantial work while four tickets involved minor work (digging a post-hole on the right of way line); however, the one-time $1.20 cost and other personal costs will still occur.

Officials from St Louis County and Kansas City state there would be no fiscal impact to their respective political subdivisions.

FISCAL IMPACT - Small Business 

No direct fiscal impact to small businesses would be expected as a result of this proposal.

FISCAL DESCRIPTION

Under current law, gas distribution lines, electric lines, telecommunications facilities, cable t.v. facilities, water lines, storm drainage, and sewer lines located on private property and owned by the landowner are not considered "underground facilities" for purposes of the Underground Facility Safety and Damage Prevention Act. This proposal modifies this definition by requiring that if any of the above-mentioned lines are used for vehicular traffic control, the lighting of streets and highways, or communications for emergency response, they shall be considered an "underground facility". The lines shall also be considered an "underground facility" if they cross or lie within a public easement, public right-of-way, or another person's property.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Economic Development

            Public Service Commission

            Office of Public Counsel

Department of Natural Resources

Office of State Courts Administrator

Office of Administration

            Division of Facilities Management, Design and Construction

            Administrative Hearing Commission

Department of Transportation

St Louis County

Kansas City 

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                January 23, 2008