FISCAL NOTE

Date Requested: February 07, 2018
Time Requested: 01:52 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
2428 Introduced HB4447
CBD Subject: Economic Development


FUND(S):

State Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
    
    The construction projects that the WVDOH let to contract vary in scope and type of work. Some of the projects include electrical items for the traffic signals and lighting of our roadway network. The conduit used to contain the electrical systems is similar to the “Broadband conduit” being proposed by HB4447.
    
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 54,000,000 108,000,000 108,000,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
    
    The unit pricing for the electrical conduit has many variables that need to be factored to come up with the final pricing, such as type of conduit, size of conduit, soil conditions, number of conduits placed in trench, number of junction boxes needed etc.
    
    The average unit pricing of WVDOH electrical conduit was researched using engineering assumptions to determine a feasible holistic value that encompasses the variables noted above. The value that was arrived at was $75,000 per mile for construction installation of the conduit.
    
    There are over 36,000 miles in the WVDOH roadway network. In a normal construction year, there would be approximately 1.5% of the roadway network applicable to HB4447 as written.
    
    For the upcoming volume of projects associated with the Governor’s Transportation Initiative, the number of roadways impacted will greatly increase. Based on the estimated construction program expected in the next four years, approximately 4% of the roadway network will be applicable to HB447 as written.
    
    36,000 miles x 4% = 1,440 miles
    1,440 miles x $75,000 per mile= $108,000,000 per year (2019, 2020, 2021)
     $54,000,000 (FY 2018 - 1/2 year)



Memorandum


    Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
    
    As noted, the values above are applicable to the HB as we interpret its language but the estimate could approach $400,000,000 depending on the interpretation.
    
    The costs noted in the Fiscal Note Detail are only estimates for construction installation of the conduits. Any necessary r/w costs would be in addition to the values above.
    
    



    Person submitting Fiscal Note: Lorrie Hodges
    Email Address: lorrie.a.hodges@wv.gov