Chapter 3: Acquisition Coordination

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Section 1: TxDOT - The Acquiring Agency

Overview

LPAs are responsible for ROW acquisition, with exception of interstate highways; however, an LPA may request that TxDOT assume the ROW acquisition function. TxDOT's role as the acquiring agency is subject to the following conditions:

the LPA offers to make a voluntary contribution equal to the applicable percentage of the actual cost of the ROW;
the Commission has authorized the project; and
ROW costs are eligible for State participation reimbursement.

A city ordinance or Commissioners' Court Order must be submitted along with the LPA's request for TxDOT to assume the acquisition responsibilities.

Typically, LPA contribution is 10% unless otherwise stated in the contract agreement. Any change in LPA percentage must be approved by the Commission. The initial LPA contribution is based upon current estimates of the cost of the ROW to be acquired. The cost of ROW is defined as the total value of compensation to owners, including utilities, for their property interests. Additional contributions will be made if the actual costs of ROW exceed the amount estimated. If the amount contributed by the LPA is greater than the final actual ROW costs, the excess amount will be refunded to the LPA. Since it is possible that some projects could financially burden an LPA if the entire contribution is required with the submittal of the contractual agreement, the LPA can make incremental payments. Any agreement with an incremental payment schedule has to be approved by the Executive Director of TxDOT in accordance with 43TAC, §15.52, Subsection 6(B).

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Contractual Agreements

An agreement must be executed by and between TxDOT and the applicable MPO or LPA on all projects. This will customarily be executed early on in project development, prior to a project being released for ROW acquisition. The agreement will give details about the project and will state who is responsible for the acquisition of the ROW. If TxDOT is to be the acquiring agent, the participation amount required by the LPA and the method of payment by the LPA, either in full with the execution of the agreement or in incremental payments as approved by the Executive Director, will be detailed in the agreement.

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Amendments to Contractual Agreements

An amendment or amendments to the agreement may be necessary if certain acquisition responsibilities or participation requirements change during the course of an ongoing project. If the agreement originally called for the LPA to be the acquiring agency and it desires to transfer all or a portion of the remaining acquisition responsibilities to TxDOT, an amendment to the agreement should be used. The amendment should describe by parcel number any outstanding ROW that is being transferred to TxDOT for acquisition. It should also identify any utility adjustment or other outstanding obligation that is to be transferred to TxDOT. If only portions of the acquisition responsibilities are being transferred to TxDOT, the amendment should also set forth the LPA's remaining acquisition responsibilities. The amendment would also be used if the participation ratio changes, for example pursuant to a Minute Order designated an LPA as an economically disadvantaged county.

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Submission of Contractual Agreements

The District submits three executed originals of the standard form to the ROW Division for approval. The transmittal memo must state the method of funding utilized by the LPA. If the LPA desires to pay the required amount in incremental payments, the memo must also set forth the requirements for incremental payment approval set forth in 43TAC, §15.52, Subsection 6(B). Accompanying this memo should also be

a copy of the LPA's check,
a copy of the deposit transmittal evidencing deposit of funds in the appropriate rapid deposit account,
a copy of the LPA's grant of signature authority for the person signing the agreement and
a copy of the resolution.

If there are any changes proposed to the agreement, an unexecuted copy of the proposed agreement must be transmitted by the District to the ROW Division. Also, any proposed amendment to an existing agreement must be submitted in the same manner. The ROW Division will review these submissions and inform the District in writing of approval or disapproval of the proposed changes or of the proposed amendment. In this situation, the LPA must not sign the contract or amendment prior to approval by the ROW Division.

Once an approved agreement (executed by the LPA) and other requirements have been submitted to the ROW Division, the approval of TxDOT of these documents will be evidenced by execution by the Director of the ROW Division. One original will be retained by the ROW Division for their records and the remaining two originals will be returned to the District for retention in the District files and for the LPA.