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Right of Way Management September 10, 2024 Page 3 replacement, in kind. If required by the local government unit, all work must be performed according to the local government unit's specifications and drawings. Subp. 3. Degradation fee. A right-of-way user may elect to pay a degradation fee in lieu of restoration. However, the right-of-way user shall remain responsible for replacing and compacting the subgrade and aggregate base material in the excavation and the degradation fee must not include the cost to accomplish these responsibilities. Standard Plates 1 to 13, shown in parts 7819.9900 to 7819.9950 are shown in the attached Minnesota Rules 7819. Right-of-Way management includes determining the cost associated with utilities located within the City’s Rights-Of-Way. To fulfills the City’s fiduciary and stewardship responsibility to the public, it must develop policies to effectively manage their right-of-way in addition to creating methods for identifying and recovering public costs involved with this process. This need is driven, in part, by the significant investment the City has made in its rights-of-way. It is important to understand that the costs incurred by the City in managing its rights-of-way are not one-time costs, but rather are annual costs that increase each year as a result of inflation. Right-Of-Way Management Plan A public right-of-way management plan should reflect the City’s actual costs associated with the management of its rights-of-way on an annual basis. The process to develop such a plan needs to include a review of all the City’s activities related either directly or indirectly to managing its rights-of-way and the costs it incurs as a result of utilities located within the rights-of-way. These costs include: Overhead Costs The obvious components of any service cost are the direct and indirect costs (i.e. labor, supplies, vehicles, space utilization, management information services, etc.) committed to an activity. Not as obvious are the costs incurred by support activities that must be undertaken in order for the direct labor personnel to successfully complete their mission. When determining the total cost for management of the public rights-of-way, these administrative overhead costs must be included. Degradation Costs Degradation is defined as depreciation to the roadway, alleys, sidewalks, boulevard/landscaped areas, other infrastructure, and amenities that result from intrusion into the public right-of-way. Numerous public right-of-way cost recovery studies have concluded that when projects intrude into the surface of a street there is a definable reduction in the remaining life of the street. Construction Costs The presence of utilities within the right-of way increases the cost of construction and reconstruction for City. Costs affected by the presence of utilities include construction