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1 1 Section 1. NEW SECTION. 476.110 SHORT TITLE.
1 2 This part shall be known and may be cited as the "Iowa
1 3 Underground Conversion of Utilities Act".
1 4 Sec. 2. NEW SECTION. 476.111 DEFINITIONS.
1 5 As used in this chapter, unless the context otherwise
1 6 requires:
1 7 1. "Cable operator" shall have the same meaning as set
1 8 forth in the federal Cable Communications Policy Act of 1984,
1 9 47 U.S.C. } 522.
1 10 2. "Communication service" means the transmission of data
1 11 by electrical means including, but not limited to telephone,
1 12 telegraph, messenger-call, police or fire alarm, traffic
1 13 control circuits, television or radio signals, and internet or
1 14 computer data.
1 15 3. "Convert" or "conversion" means the removal of all or
1 16 any part of existing overhead electric or communication
1 17 facilities and the replacement of those facilities with
1 18 underground electric or communication facilities constructed
1 19 at the same or different locations.
1 20 4. "Electric or communication facilities" means any works
1 21 or improvements used or useful in providing electric,
1 22 communication, or cable television service, including but not
1 23 limited to, poles, supports, tunnels, manholes, vaults,
1 24 conduits, pipes, wires, conductors, guys, stubs, platforms,
1 25 crossarms, braces, transformers, insulators, cutouts,
1 26 switches, capacitors, meters, communication circuits,
1 27 appliances, attachments, and appurtenances. "Electric or
1 28 communication facilities" does not include facilities used or
1 29 intended to be used for the transmission of intelligence by
1 30 microwave, radio, or outdoor public telephones.
1 31 5. "Electric or communication utility" means a public
1 32 utility or a cable operator.
1 33 6. "Governing body" means a county board of supervisors,
1 34 city council, township trustees, or other body charged with
1 35 governing a political subdivision.
2 1 7. "Overhead electric or communication facilities" means
2 2 electric or communication facilities located, in whole or in
2 3 part, above the surface of the ground.
2 4 8. "Political subdivision" means the state or any county,
2 5 municipality, or other entity or subdivision of government.
2 6 9. "Public utility" means the same as defined in section
2 7 476.1.
2 8 10. "Resolution" means ordinance, if a governing body
2 9 properly acts by ordinance; resolution, if a governing body is
2 10 authorized to act by resolution; or other means by which a
2 11 governing body is authorized to act.
2 12 11. "Underground electric or communication facilities"
2 13 means electric or communication facilities located, in whole
2 14 or in part, beneath the surface of the ground, or facilities
2 15 within the confines of a power substation. "Underground
2 16 electric or communication facilities" includes facilities that
2 17 remain above the surface, in accordance with standard
2 18 underground practices, such as transformers, pull boxes,
2 19 service terminals, meters, pedestal terminals, splice
2 20 closures, apparatus cabinets, and similar facilities.
2 21 Sec. 3. NEW SECTION. 476.112 FINDINGS AND PURPOSE.
2 22 1. The general assembly finds that landowners, political
2 23 subdivisions, public utilities, and cable operators in many
2 24 areas of the state desire to convert existing overhead
2 25 electric or communication facilities to underground locations.
2 26 The general assembly further finds that the conversion of
2 27 overhead electric or communication facilities to underground
2 28 locations is a matter of statewide concern and interest.
2 29 2. The general assembly declares that a public purpose
2 30 will be served by providing a procedure to accomplish this
2 31 conversion and that it is in the public interest to provide
2 32 procedures under this part for such conversion.
2 33 Sec. 4. NEW SECTION. 476.113 SCOPE AND INTENT.
2 34 1. A political subdivision shall pursue conversion only in
2 35 accordance with this part. However, the use of the procedures
3 1 set forth in this part is not required for incidental or
3 2 episodic conversions associated with public improvements such
3 3 as street widening and sewer construction.
3 4 2. Notwithstanding the provisions of this part, a
3 5 political subdivision may perform the conversion without
3 6 following the procedures outlined in this part if the
3 7 political subdivision pays for all of the costs and expenses
3 8 of the conversion from the political subdivision's own funds
3 9 and does not seek to recover the costs or expenses of the
3 10 conversion from the electric or communication utility.
3 11 Sec. 5. NEW SECTION. 476.114 POWERS CONFERRED.
3 12 1. A governing body is authorized to create a local
3 13 improvement district under this part to provide for the
3 14 conversion of existing overhead electric or communication
3 15 facilities to underground locations and the construction,
3 16 reconstruction, or relocation of other electric or
3 17 communication facilities which may be incidental to the
3 18 conversion, according to the following:
3 19 a. A county board of supervisors may create a local
3 20 improvement district in an unincorporated portion of the
3 21 county.
3 22 b. A municipality or township may create a local
3 23 improvement district within its territorial limits.
3 24 2. The board of a municipal utility may, by resolution,
3 25 impose a special assessment on benefited property within the
3 26 municipal utility's service area that derives a direct benefit
3 27 from the conversion of overhead electric or communication
3 28 facilities to underground locations.
3 29 Sec. 6. NEW SECTION. 476.115 PROPOSED LOCAL IMPROVEMENT
3 30 DISTRICT – RESOLUTION – COST AND FEASIBILITY STUDY – JOINT
3 31 REPORT.
3 32 1. A governing body may, on its own initiative, or upon a
3 33 petition signed by at least a majority of the property owners
3 34 owning at least a majority of the assessable land in any
3 35 proposed local improvement district requesting the creation of
4 1 the proposed local improvement district as provided in this
4 2 part, adopt a resolution at any regular or special meeting of
4 3 the governing body declaring that the governing body finds
4 4 that the local improvement district is in the public interest.
4 5 2. The resolution of the governing body required under
4 6 subsection 1 must state all of the following:
4 7 a. That the formation of the local improvement district
4 8 for the purposes set out in this part will promote the public
4 9 convenience, necessity, and welfare.
4 10 b. That the costs and expenses of creating the local
4 11 improvement district and converting the overhead electric or
4 12 communication facilities will be levied and assessed upon the
4 13 property in the area benefited.
4 14 c. A requirement that each electric or communication
4 15 utility serving the area by overhead electric or communication
4 16 facilities study the cost of conversion of its facilities in
4 17 the area to underground service, and that the affected
4 18 electric or communication utilities in the proposed local
4 19 improvement district shall file a joint report analyzing cost
4 20 and feasibility issues with the clerk of the governing body.
4 21 d. The governing body's preliminary determination as to
4 22 the method of assessing each lot or parcel within the proposed
4 23 local improvement district.
4 24 e. The square footage or frontage feet of each lot or
4 25 parcel, and zoning district of the lot or parcel, or other
4 26 information necessary for assessment in accordance with the
4 27 governing body's preliminary determination.
4 28 f. A requirement that each electric or communication
4 29 utility be provided with the name and address of the owner of
4 30 each parcel or lot within the proposed local improvement
4 31 district, if known, and if not known, the description of the
4 32 property and other matters as may be required by the electric
4 33 or communication utility in order to perform the work involved
4 34 in the cost study.
4 35 3. An electric or communication utility serving a proposed
5 1 local improvement district area by overhead electric or
5 2 communication facilities shall make a study of the costs of
5 3 conversion of its facilities in the proposed local improvement
5 4 district to underground service and make recommendations
5 5 regarding the feasibility of the project and the area included
5 6 in the proposed local improvement district. All affected
5 7 electric or communication utilities shall then combine their
5 8 individual studies and recommendations, pursuant to the
5 9 provisions of section 476.116, subsection 1, and provide to
5 10 the governing body a joint report of the electric and
5 11 communication utilities, within one hundred twenty days after
5 12 receipt of the resolution, unless the time is extended by the
5 13 governing body, and make available at each of the electric or
5 14 communication utility offices a copy of the joint report. The
5 15 report shall also be provided to all landowners within the
5 16 proposed local improvement district.
5 17 Sec. 7. NEW SECTION. 476.116 JOINT REPORT – BOUNDARY
5 18 AMENDMENT – DELAYS AND COST INCREASES.
5 19 1. The electric or communication utility joint report
5 20 required under section 476.115 shall set forth an estimate of
5 21 the total underground conversion costs for the proposed local
5 22 improvement district and shall also indicate the costs of the
5 23 underground conversion of facilities of each electric or
5 24 communication utility located within the boundaries of the
5 25 proposed local improvement district. The report shall also
5 26 contain the recommendations of each electric or communication
5 27 utility concerning the feasibility of the project for the
5 28 proposed local improvement district in regard to the physical
5 29 characteristics of the district, and recommendations of each
5 30 electric or communication utility concerning inclusion or
5 31 exclusion of areas within the proposed local improvement
5 32 district or immediately adjacent to the proposed local
5 33 improvement district.
5 34 2. The governing body shall give careful consideration to
5 35 the recommendations of each electric or communication utility
6 1 concerning feasibility, recognizing the expertise of each
6 2 electric or communication utility in the area, and the
6 3 governing body may amend the boundaries of the proposed local
6 4 improvement district, provided that the joint report of the
6 5 electric or communication utilities contains a cost figure for
6 6 the proposed local improvement district as amended, or the
6 7 governing body may request a new joint report from the
6 8 affected electric or communication utilities that analyzes all
6 9 costs and feasibility issues on the basis of the amended local
6 10 improvement district.
6 11 3. The cost estimate contained in the report shall not be
6 12 considered binding on an electric or communication utility if
6 13 conversion is not commenced within six months of the
6 14 submission of the estimate for reasons not within the control
6 15 of the electric or communication utility. Should a delay
6 16 result in a significant increase in the conversion costs, an
6 17 additional hearing pursuant to sections 476.118 through
6 18 476.120 shall be held on the creation of the proposed local
6 19 improvement district. If only a minor cost increase results,
6 20 only the hearings on the assessments need be held again.
6 21 Sec. 8. NEW SECTION. 476.117 RESOLUTION DECLARING
6 22 INTENTION TO CREATE DISTRICT.
6 23 1. Upon the filing with the clerk of the governing body of
6 24 the joint report by the electric or communication utilities,
6 25 as provided in sections 476.115 and 476.116 and after
6 26 considering the joint report, the governing body may, at any
6 27 regular or special meeting of the governing body, adopt a
6 28 resolution declaring its intention to create a local
6 29 improvement district.
6 30 2. The resolution shall state all of the following:
6 31 a. The intention of the governing body to create the local
6 32 improvement district.
6 33 b. The area and boundaries of the proposed local
6 34 improvement district.
6 35 c. The character of the proposed local improvement.
7 1 d. The estimated total cost of the conversion.
7 2 e. The intention of the governing body to hold a public
7 3 hearing on the conversion.
7 4 Sec. 9. NEW SECTION. 476.118 NOTICE OF PUBLIC HEARING ON
7 5 PROPOSED IMPROVEMENT – CONTENT.
7 6 Following the adoption of a resolution pursuant to section
7 7 476.117, the governing body shall cause a notice of a public
7 8 hearing on the proposed improvement to be given in the manner
7 9 provided in section 476.119. The notice shall do all of the
7 10 following:
7 11 1. Describe the boundaries or area of the proposed local
7 12 improvement district with sufficient particularity to permit
7 13 each owner of real property in the proposed local improvement
7 14 district to ascertain whether the owner's property lies in the
7 15 proposed local improvement district.
7 16 2. Describe in a general way the proposed improvement,
7 17 specifying the streets or property along which it will be made
7 18 and the nature of the benefits to the property within the
7 19 proposed local improvement district.
7 20 3. State the estimated costs, as determined from the joint
7 21 report of the electric or communication utilities, including
7 22 the cost of the proposed improvement, the cost of engineering
7 23 and clerical services, advertising, inspection, collection of
7 24 assessments, interest upon bonds, if issued, and for legal
7 25 services for preparing proceedings and advising in regard to
7 26 the proceedings.
7 27 4. State the time and place at which the governing body
7 28 will conduct a public hearing upon the proposed improvement
7 29 and on the question of benefits to be derived by the real
7 30 property in the proposed local improvement district.
7 31 5. State that all interested persons will be heard and
7 32 that any property owner will be heard on the question of
7 33 whether the owner's property will be benefited by the proposed
7 34 improvement.
7 35 Sec. 10. NEW SECTION. 476.119 NOTICE OF PUBLIC HEARING
8 1 ON PROPOSED IMPROVEMENT – MANNER OF GIVING.
8 2 1. The notice of public hearing required in section
8 3 476.118 shall be published once in a newspaper of general
8 4 circulation in the proposed local improvement district or, if
8 5 there is no such newspaper, by publication in a newspaper of
8 6 general circulation in the county, city, or township in which
8 7 the proposed local improvement district is located.
8 8 2. a. A copy of the notice shall be mailed to the last
8 9 known address of each landowner within the proposed local
8 10 improvement district. The last known address of a landowner
8 11 for purposes of this subsection shall be the address last
8 12 appearing on the real property records in the office of the
8 13 county recorder of the county in which the property is
8 14 located.
8 15 b. A copy of the notice shall also be addressed and mailed
8 16 to "owner" at the street number of each lot or parcel of
8 17 property within the proposed local improvement district.
8 18 3. A notice mailed or published under this section shall
8 19 state where a copy of the resolution proposing the creation of
8 20 the local improvement district will be available for
8 21 inspection by any interested parties.
8 22 Sec. 11. NEW SECTION. 476.120 PUBLIC HEARING – CHANGES
8 23 IN PROPOSED IMPROVEMENTS AND AREA TO BE INCLUDED IN LOCAL
8 24 IMPROVEMENT DISTRICT.
8 25 1. On the date, and at the time and place specified in the
8 26 notice required in section 476.118, the governing body shall,
8 27 in open and public session, hear all objections to the
8 28 creation of the proposed local improvement district, the
8 29 making of the proposed improvements, and the benefits accruing
8 30 to any property located within the proposed local improvement
8 31 district.
8 32 a. A representative of each electric or communication
8 33 utility concerned shall be present at the hearing.
8 34 b. The hearing may be adjourned from time to time to a
8 35 fixed future time and place.
9 1 c. If at any time during the hearing it appears to the
9 2 governing body that changes in the proposed conversion or the
9 3 proposed local improvement district should be made, which,
9 4 after consultation with the electric or communication utility
9 5 concerned, appear to affect either the cost or feasibility of
9 6 the conversion, the hearing shall be adjourned to a fixed
9 7 future time and place and a new joint report analyzing cost
9 8 and feasibility issues shall be prepared by each affected
9 9 electric or communication utility pursuant to sections 476.115
9 10 and 476.116 on the basis of the contemplated changes.
9 11 2. If action on the creation of the proposed local
9 12 improvement district was initiated by petition as set forth in
9 13 section 476.115, and if it appears that the petition was not
9 14 signed by at least a majority of the property owners owning at
9 15 least a majority of the assessable land in the proposed local
9 16 improvement district, or if it is shown that the proposed
9 17 improvement will not confer a general benefit on the proposed
9 18 local improvement district, or that the cost of the proposed
9 19 improvement would be excessive as compared with the value of
9 20 the property in the proposed local improvement district, the
9 21 governing body shall dismiss the petition.
9 22 a. No appeal shall lie from the order dismissing the
9 23 proceedings.
9 24 b. Nothing in this section shall prevent the filing of
9 25 subsequent petitions for a similar local improvement district.
9 26 c. A proceeding for a proposed local improvement district
9 27 may be renewed by a governing body.
9 28 3. After the public hearing has been concluded and after
9 29 all persons desiring to be heard have been heard, the
9 30 governing body shall consider the arguments put forth and may
9 31 make such changes in the area to be included in the proposed
9 32 local improvement district as it considers desirable or
9 33 necessary. However, no such changes shall be made unless a
9 34 joint report analyzing cost and feasibility issues pursuant to
9 35 sections 476.115 and 476.116 has been prepared on the basis of
10 1 such changes.
10 2 4. If at any time during the public hearing the governing
10 3 body is presented with a petition signed by at least a
10 4 majority of the property owners owning at least a majority of
10 5 the assessable land in the proposed local improvement district
10 6 protesting the proposed conversion, and such a petition is
10 7 still outstanding at the close of the public hearing, the
10 8 proposed local improvement district and conversion shall be
10 9 abandoned.
10 10 5. If no petition is presented pursuant to subsection 4,
10 11 the governing body, after consideration of matters brought
10 12 forth at the public hearing, shall either abandon the proposed
10 13 local improvement district and conversion, or adopt a
10 14 resolution establishing the local improvement district and
10 15 authorizing the conversion, either as described in the notice
10 16 or with changes made as authorized in this section.
10 17 a. A resolution establishing a local improvement district
10 18 and authorizing a conversion shall be published in the manner
10 19 provided in section 476.119 but need not be mailed to
10 20 landowners as provided in that section.
10 21 b. If a resolution is adopted establishing the local
10 22 improvement district, the resolution shall finally and
10 23 conclusively establish the validity of the creation of the
10 24 local improvement district against the claims of all persons,
10 25 unless an action challenging the validity of the local
10 26 improvement district is commenced in a court of competent
10 27 jurisdiction within thirty days after the adoption of the
10 28 resolution. A legal action shall be subject to the provisions
10 29 of section 476.121. After the passage of the thirty-day
10 30 period, any such action shall be barred and the validity of
10 31 the local improvement district shall not be directly or
10 32 collaterally questioned in any suit, action, or proceeding.
10 33 Sec. 12. NEW SECTION. 476.121 WAIVER OF OBJECTIONS.
10 34 A person who has real property within the boundaries of the
10 35 local improvement district and who fails to appear before the
11 1 governing body at the public hearing and make any objection as
11 2 to the creation of the local improvement district, the
11 3 conversion, or the inclusion of the person's real property in
11 4 the local improvement district, shall be deemed to have waived
11 5 the objection.
11 6 Sec. 13. NEW SECTION. 476.122 CONVERSION COSTS.
11 7 1. In determining the conversion costs included in the
11 8 joint report required by sections 476.115 and 476.116, the
11 9 electric or communication utility shall be entitled to amounts
11 10 sufficient to repay the electric or communication utility,
11 11 with a reasonable allowance for overhead expenses, according
11 12 to the following, as computed and reflected by the uniform
11 13 system of accounts approved by the utilities board or federal
11 14 communications commission, or in the event the electric or
11 15 communication utility is not subject to regulation by either
11 16 of such governmental agencies, by the electric or
11 17 communication utility's system of accounts, and in accordance
11 18 with standard accounting procedures of the electric or
11 19 communication utility:
11 20 a. The original costs, less any applicable depreciation of
11 21 the existing overhead electric or communication facilities to
11 22 be removed.
11 23 b. The estimated costs of removing such overhead electric
11 24 or communication facilities, less the salvage value of the
11 25 facilities removed.
11 26 c. If the estimated cost of constructing underground
11 27 electric or communication facilities exceeds the original cost
11 28 of existing overhead electric or communication facilities,
11 29 then the difference between the two.
11 30 d. The cost of obtaining new easements when technical
11 31 considerations make it reasonably necessary to utilize
11 32 easements for the underground facilities different from those
11 33 used for aboveground facilities, or where the preexisting
11 34 easements are insufficient for the underground facilities.
11 35 2. Notwithstanding subsection 1, in the event that
12 1 conversion costs are included in tariffs, rules, or
12 2 regulations filed and in effect with the utilities board, such
12 3 conversion costs shall be the costs included in the joint
12 4 report addressing cost and feasibility issues.
12 5 EXPLANATION
12 6 This bill creates the "Iowa underground conversion of
12 7 utilities Act". The bill includes legislative findings and
12 8 purpose, scope and intent, and definitions.
12 9 The bill provides that a governing body is authorized to
12 10 create local improvement districts to effectuate the
12 11 conversion of existing overhead electric or communication
12 12 facilities to underground locations. In undertaking this
12 13 process, an electric or communication utility serving an area
12 14 that wishes to undertake a conversion is required to make a
12 15 study of the cost and feasibility of conversion of its
12 16 facilities in the area to underground service and report its
12 17 findings to the governing body. The bill includes a Code
12 18 section describing the required provisions of the report.
12 19 The bill also describes the method by which a governing
12 20 body may declare its intention to create a local improvement
12 21 district. This declaration of intention must include a
12 22 provision stating the governing body's intention to hold a
12 23 public hearing on the proposed improvement. The public must
12 24 then be notified of the hearing, the required content of the
12 25 hearing, and the consequences of failing to appear and object
12 26 to the governing body's intention at the hearing. The bill
12 27 also provides that an electric or communication utility is
12 28 entitled to amounts sufficient to repay it for the conversion
12 29 costs, and lists several calculations an electric or
12 30 communication utility may use in estimating conversion costs.
12 31 LSB 6820HC 79
12 32 bm/cf/24
Text: HSB00711 Text: HSB00713 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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