Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
CC:	Cynthia Boecker, Assistant City Manager Charles Soules, Director of Public Works Toni Wheeler, Director of Legal Services John Miller, Staff Attorney
Date:	March 5, 2008
RE:	LRM and Aquila Issues

In late 2007, the City received several letters from Steve Glass, the President of LRM Industries. In the letters, Mr. Glass expressed concerns regarding the depth of some of Aquila’s gas lines in the right-of-way and the assessment by Aquila of third party damages to LRM when gas lines are disrupted. Mr. Glass thought that these concerns should be addressed as Aquila’s franchise agreement transfer request was coming before the City Commission. Since the letters were received by the City, City staff has facilitated a number of meetings between Aquila and LRM regarding this matter. Mr. Glass is concerned that Aquila’s lines are not required to be vertically located (the exact depth of older lines may vary) and are only horizontally located (a certain distance around a line is identified as the location). Additionally, recently Aquila changed its corporate policy and now will charge a contractor for any damage done to a gas line that has been properly located in a horizontal area. Mr. Glass cites safety and monetary concerns about these practices.

While the City can understand Mr. Glass’s concerns, City staff does not believe that the appropriate place to address these concerns is within the franchise agreement, either as a result of new language inserted or a new interpretation of the existing agreement. Kansas One-Call and the Kansas Corporation Commission, the state regulations and processes that govern how utility locates are completed, only require that horizontal locates are done on gas lines and there is no requirement for vertical location, nor is there any feasible way to accomplish vertical location without digging along, or potholing, in the area of the line. The One-Call statutes place the responsibility for potholing on the contractor. Such potholing is likely the only reliable and safe way to locate the line in older areas of the community. These same regulations also enable a utility company to assess third party damages to any entity that damages a gas line. This is another area that City staff does not believe the City would be successful in reassigning liability. It should be noted that during the discussions with staff and LRM, Aquila did make some changes regarding intent to communicate in the field when third party damages may be charged and has indicated its openness to visit about third party damage claims, particularly when they are disputed by the contractor. Aquila has additionally provided a written response to Mr. Glass’s concerns.

As an alternative, Mr. Glass has suggested that the City assume additional responsibility for locating utilities as the City develops projects. Mr. Glass has recommended that the City request utilities to locate their facilities vertically and horizontally if it is reasonable to assume there might be a conflict. This would allow conflicts to be identified in our plans. This process is currently followed on major reconstruction projects. Staff holds monthly meetings with all utilities to discuss projects. All utilities are advised of the scope and location of maintenance projects (mill and overlay) as part of this process. Maintenance projects typically do not necessitate extensive excavation other than curb and gutter replacement and repairs. To ask utility companies to physically locate their facilities for maintenance projects would be a significant undertaking and considerable staff time for both the utilities and the City. As City staff meets with utilities, the scope of City projects will continue to be emphasized, but staff is not recommending any changes to practices at this time.

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