Legislation Increasing Costs of City Construction Projects Set for April 16 Hearing

House Bill 4272 by Rep. Jared Patterson would require cities to pay private utilities for costs they incur for moving utilities on city road, water and/or wastewater projects.

While the city has not managed this aspect of the construction process, city officials estimate that in Irving, which is built-out along many of the major thoroughfares, utility relocation costs are likely to be at least 25% of the project cost. Costs could be much more if the underlying infrastructure is not documented. The Texas Department of Transportation estimates utility relocations in urban environments can cost as much as $1 million per mile.

In addition to the actual construction costs associated with utility relocation, the cost of easements and right-of-way to complete these projects would also be carried by taxpayers.

Franchise fees paid by telecommunications companies to local governments have already been reduced by legislative action in 2019 and 2021, and efforts to further reduce what utilities pay cities has already passed the Texas Senate.

All of the city’s pending projects were designed and estimated assuming utility relocation would be performed by private utilities. If relocation costs fall on the city, taxpayers could potentially see a tax increase to pay the higher costs, fewer projects being completed, or both.

HB 4272 is scheduled for a hearing at 8 a.m. on Wednesday, April 16 by the Texas House State Affairs subcommittee on Telecommunications.

To comment on this bill, contact one of the following members:

Bill Sponsor

HB 4272

Rep. Jared Patterson (R-District 106)

(512) 463-0694 | jared.patterson@house.texas.gov

The House Subcommittee on Telecommunications

Chair: Rafael Anchia (D-District 103)

(512) 463-0746 | rafael.anchia@house.texas.gov

Vice Chair: Will Metcalf (R-District 16)

(512) 463-0726 | will.metcalf@house.texas.gov

Members:

Ana Hernandez (D-District 143)

(512) 463-0614 | ana.hernandez@house.texas.gov

Lacey Hull (R-District 138)

(512) 463-0727 | lacey.hull@house.texas.gov

John McQueeney (R-District 97)

(512) 463-0608 | john.mcqueeney@house.texas.gov

The Irving Legislative Delegation

Rep. Rafael Anchia (D-District 103)

(512) 463-0746 | rafael.anchia@house.texas.gov

Rep. Cassandra Garcia Hernandez (D-District 115)

(512) 463-0468 | staff contact: fawaz.anwar@house.texas.gov

Rep. Terry Meza (D-District 105)

(512) 463-0641 | terry.meza@house.texas.gov

Sen. Nathan Johnson (D-District 16)

(512) 463-0116 | nathan.johnson@senate.texas.gov

Sen. Tan Parker (R-District 12)

(512) 463-0112 | tan.parker@senate.texas.gov