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Section 4: LPA Recommends Values

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Requirements

Unless waived in accordance with the contractual agreement, the LPA will furnish the recommended compensation for each parcel broken down into the component parts of land acquired, itemization of improvements acquired and (if a partial acquisition) damages or enhancements, if any, to the remainder. These values must be supported by an accompanying explanation together with a copy of information or reports prepared by the LPA and used as a basis in arriving at the values recommended. The LPA is not required to submit all or any specified number of the recommended values at any one time.

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Current Market Values Essential

Current market value information is to be furnished for each parcel because it may be essential for the department’s use in determining the upper limit eligible for the state’s participation in the parcel cost as required by the law.

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Forms for LPA’s Submission of Values

The contractual agreement stipulates that the values determined by the LPA be submitted in tabular form and signed by the appropriate LPA representative. It further provides that the tabulation shall list for each parcel the parcel number, ownership, acreage and recommended compensation broken down into component parts of land acquired, itemization of improvements acquired and concerning a partial acquisition, net damages or enhancements, if any, to the remainder. Form ROW-A-10 has been created for the LPA’s convenience in furnishing this information and in order to provide uniformity in submissions facilitating the department’s processing. This form also serves as a clear and concise permanent record for both the LPA and the state.

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LPA’s Preparation of Form ROW-A-10

The LPA’s recommended values will be tabulated on form ROW-A-10. When a value is less than $1,000, the recommended value may be rounded upward to $1,000 as outlined in Economic Adjustments, Chapter 2. Form ROW-A-10 will show “No” in the fencing column for each parcel when:

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  • no fencing is to be done,
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  • fencing is included in the recommended value, and
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  • fencing is included in the recommended value but the LPA acts as agent for the property owner in performing the fencing work as a property adjustment in lieu of payment to the owner.

If the LPA is to perform right of way fencing under agreement with the state either on a lump sum or actual cost basis, neither a value for existing fences whose use will be restored by the new fence nor damages for an unfenced condition will be included in the recommended value.

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LPA’s Submission to R/W-PD

Four (4) copies of form ROW-A-10 should be submitted by the counties or cities and must be supported by (1) a written, signed review of the appraisal report(s) to substantiate the recommended value, and (2) the appraisal report(s) used in arriving at the recommended value. Forms submitted may include all parcels for a project or may be on a partial project basis, but must be accompanied by the supporting data relative to each parcel listed thereon. When advertising signs not owned by the landowner or lessee in possession of the property are involved, follow procedures outlined in Advertising Sign Interests. A complete description as to type, size, height, poles, etc., will be given for each sign having a compensable interest and handled as a part of the real estate.

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R/W-PD’s Review of LPA’s Value

The LPA’s submission of recommended values is to be reviewed by qualified R/W-PD personnel, and a field check of all right of way parcels should be made to determine if the values recommended are appropriate and sufficiently supported and that the forms are prepared properly. The form ROW-A-10 should be reviewed to insure that the fencing information is properly shown to establish the basis for fencing by the LPA or payment to the owner. The form should be checked to insure:

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Acquiring Additional Information or Appraisals

When it appears that data submitted by the LPA is not sufficient to support recommended values, R/W-PD should take immediate steps to obtain additional information. If investigations and studies indicate that the LPA’s values are not sufficiently supported and recommended for approval, qualified staff or fee appraisers will be used as necessary to enable R/W-PD to make a firm recommendation as to values. The cost for such appraisers shall be borne by either the LPA or TxDOT, in accordance with the contractual agreement.

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R/W-PD’s Recommended Values

If certain values recommended by the LPA cannot be approved by R/W-PD, R/W-PD will approve its own value on a separate form ROW-A-10.

Such values will be supported with one or more appraisal reports acquired by the state from qualified appraisers and accompanied by R/W-PD’s analysis on form ROW-A-10 to document the value recommended/approved. The LPA will not sign this additional form ROW-A-10.

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