Ago

Florida Attorney General Reports·Decided June 18, 1997·Published

Opinion

Mr. Clifford Repperger, Jr. Cape Coral Assistant City Attorney Post Office Box 150027 Cape Coral, Florida 33915-0027

Dear Mr. Repperger:

On behalf of the city manager, you have asked substantially the following questions:

1. Does a franchise agreement allowing a public utility to locate on a public easement with no provision for liability for relocation expenses preclude the application of section 337.403, Florida Statutes, when the city requires relocation?

2. Does section 337.403, Florida Statutes, apply to the relocation of all utilities or only those placed on easements or rights-of-way granted by the governing body?

3. Are cable television facilities considered a utility subject to section 337.403, Florida Statutes?

In sum:

1. While a franchise agreement for placement of a public utility on a public easement creates a property right that may entitle the owner or holder to compensation when such right is dispossessed, section 337.403, Florida Statutes, controls the assessment of relocation expenses when a utility must be moved for a reason prescribed therein.

2. Section 337.403, Florida Statutes, applies only to the relocation of utilities placed upon, under, over, or along any public road or publicly owned rail corridor owned by a governing body in fee or in which the governing body has an easement.

3. While cable television is not specifically included in the definition of a utility subject to section 337.403, Florida Statutes, there is nothing that grants such facilities greater protections than utilities enumerated therein and the definition is broad enough to encompass cable television. In light of the statutory requirement of a franchise agreement for cable television facilities placed on a right-of-way, however, the more prudent course would be to address relocation expense liability in the franchise agreement.

Question One

You state that the City of Cape Coral has a franchise agreement with the Lee County Electric Cooperative (cooperative) for the operation of an electric utility within the city. According to the agreement, the cooperative may "construct, maintain and operate an electric utility in, over, upon, under and across present and future streets, alleys, avenues, easement for public utilities, highways, bridges, canals, and other public places of the [c]ity . . . ." You indicate, however, that the agreement does not address who will be responsible for relocation expenses when the city requires a relocation of electric facilities. In light of the requirements in section 337.403, Florida Statutes, you question whether the utility or the city is responsible for relocation expenses.

Section 337.403, Florida Statutes, provides:

"(1) Any utility heretofore or hereafter placed upon, under, over, or along any public road or publicly owned rail corridor that is found by the authority to be unreasonably interfering in any way with the convenient, safe, or continuous use, or the maintenance, improvement, extension, or expansion, of such public road or publicly owned rail corridor shall, upon 30 days' written notice to the utility or its agent by the authority, be removed or relocated by such utility at its own expense except as provided in paragraphs (a) and (b)."1

When it becomes necessary for a governmental authority to remove or relocate a utility pursuant to this section, the owner of the utility or the owner's chief agent must be given notice and an order requiring the payment of such removal or relocation.2 The utility then has a reasonable time (not less than 20 nor more than 30 days) in which to contest the reasonableness of the order and is entitled to an adjudication of the removal or relocation of the utilities pursuant to Chapter 120, Florida Statutes.3

There is some question, however, that a franchise agreement creates a property right that may not be dispossessed without just compensation being paid. In Pinellas County v. General TelephoneCompany of Florida,4 the Second District Court of Appeal considered whether the county was liable for the costs of moving the utility's telephone lines from property that the county had acquired from the City of St. Petersburg. In that case, the utility had maintained its lines through a city-maintained alleyway pursuant to a franchise agreement with the city. The county acquired the property for construction of a county judicial building and requested the utility to remove its lines. The utility declined to do so unless compensated by the county for the cost of relocating the lines. The court concluded that the franchise agreement between the city and utility constituted a property right of which the utility could not be deprived without the payment of just compensation.5

You point out that the Pinellas court did not cite to specific language in the franchise agreement and posit that the rationale of the opinion may not, therefore, be applicable to the present situation. In that case, however, the utility was being dispossessed of its franchise right by the proposed use of the property for something other than an inconvenience upon the alleyway or its expansion or improvement. The county could not have properly claimed the rights of having the utility pay for the relocation of its lines under the statute, when the reason the lines had to be relocated did not fall within those prescribed in the statute.

In a similar case, the Fourth District Court of Appeal considered whether a telephone company should bear the cost of relocating its lines when a private developer elected to extend a public road for its private benefit.6 Noting that the dispute was between the utility and a private party, not the county, the court looked to a previous decision from a companion court and its conclusion that the relocation expense statute "applies only to circumstances where a public body or authority elects to take action requiring utilities facilities relocation."7 It was concluded that the developer, rather than the telephone company, would have to bear the cost of relocating utilities resulting from the widening of a road, when no public authority had initiated the road improvement but, rather, such expansion was made by the developer for its private benefit.8

The statute applies to relocation of utilities necessitated by the particular instances set forth therein — utilities unreasonably interfering with the convenient, safe, or continuous use, or the maintenance, improvement, extension, or expansion of a public road or publicly owned rail corridor. Moreover, placement of the burden of paying the cost of utility relocation depends upon whether the improvement or alteration of the roadway is initiated by the public authority or some other party.

Accordingly, while a franchise agreement for placement of a public utility on a public easement creates a property right that may entitle the owner or holder to compensation when such right is dispossessed, the relocation of a utility pursuant to section337.403, Florida Statutes, for a reason prescribed therein does not constitute a taking for which the governing authority must pay.

Free access — add to your briefcase to read the full text and ask questions with AI

Ago, (Fla. 1997).

Ago (Ago) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

State v. Lopez
633 So. 2d 1150 (District Court of Appeal of Florida, 1994)
Thayer v. State
335 So. 2d 815 (Supreme Court of Florida, 1976)
Century Const. Corp. v. Cent. Tel. Co. of Fla.
370 So. 2d 825 (District Court of Appeal of Florida, 1979)
Pinellas County v. General Telephone Co.
229 So. 2d 9 (District Court of Appeal of Florida, 1969)
Oriole Homes Corp. v. Bellsouth Telecommunications, Inc.
641 So. 2d 504 (District Court of Appeal of Florida, 1994)