Chapter 2: Contractual Agreements

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Section 1: Forms

Overview

To establish acquisition and funding responsibilities and requirements of TxDOT and an LPA, an agreement must be entered into before a project is released for ROW acquisition. These agreements are discussed more fully in the following Chapter 3- Acquisition Coordination.

Below is a list of agreements most Districts use with the LPAs.

Table 1-1: Agreements Used with LPAs
Title	Form Number
ROW-RM-37	Contractual Agreement for Right of Way Procurement (Local Government)
ROW-RM-121	Cancellation of Contractual Agreement for Right of Way Procurement (City)
ROW-RM-122	Cancellation of Contractual Agreement for Right of Way Procurement (County)
ROW-RM-129	Agreement to Contribute Funds (Local Government)
ROW-RM-135	Supplemental Contractual Agreement for Right of Way Procurement (City)
ROW-RM-136	Supplemental Contractual Agreement for Right of Way Procurement (County)
ROW-RM-IP	Agreement to Contribute Funds (Local Government - Incremental Payments)
ROW-RM-EDC	Agreement to Contribute Funds (Local Government - Economically Disadvantaged)

TxDOT's Contract Services Office has implemented a new agreement procedure, which is used in conjunction with the ROW agreements listed above. The new procedure consists of two agreements. These are:

a Master Agreement Governing Local Transportation Project Advance Funding Agreements (MAFA), and
a Local Project Advance Funding Agreement (LPAFA).

By these agreements, regardless of the type of agreement signed, TxDOT authorizes and requests the LPA to proceed with ROW acquisition and agrees to reimburse the LPA for its share of costs incurred according to the agreement's provisions. The agreement provides LPA acceptance of responsibility to acquire all needed ROW and to obtain good title in the name of the State of Texas. Terms of the agreement apply to:

new ROW authorized and requested by TxDOT which is needed and not yet dedicated, in use, or previously acquired in the name of the State or LPA for highway, street, or road purposes; and
needed outstanding property interests in existing ROW and eligible utility adjustments not previously made, as authorized and requested by TxDOT.

The contractual agreement establishes that:

TxDOT's reimbursement to the LPA for negotiated parcels will be the percent of TxDOT's funding participation of TxDOT's predetermined value of each parcel, or the parcel's net cost, whichever is the lesser amount; and
on condemned parcels, TxDOT's funding participation percent reimbursement will be based on the final judgment provided that TxDOT is given proper notice of all action taken therein.

TxDOT typically participates in costs of:

Special Commissioners' Hearings,
appraisal expenses for the State's fee appraisers used in condemnation cases,
utility relocations, and
fencing and property adjustments.

The contractual agreement provides for division of other responsibilities for project development. The LPA typically assumes entire responsibility for:

costs incurred in arriving at values to recommend for State approval,
costs relative to negotiation,
its attorney fees for condemnation proceedings, and
costs of recording instruments of conveyance.

TxDOT typically assumes the responsibility and costs of:

land surveys,
property descriptions,
title information,
preparation of instruments, ROW maps, supplemental investigations or appraisals necessary to determine the appropriateness of submitted values and fees for title services,
appraisals where the State is to determine values as a result of the LPA's use of the waiver provision of the contractual agreement,
relocation assistance, and
removal of improvements.

The District prepares the necessary contractual agreements. Examples of completed forms are available. Project limits should agree with project limits covered by minute order or program authorization. The Commission will offer the entire project to the LPA for ROW acquisition. Execution of contracts providing for acquisition of parcels on a proportional basis should be avoided because this could violate program intent. If the LPA executing the contract and acquiring all ROW is a county and a portion of the project enters a city, explain this fact and show the entire limits established by the minute order in the contract. If the city and county will each acquire ROW within their jurisdictions, show the limits breakdown in each contract. The preparation of all these agreements should be handled at the District level, with execution of all agreements handled through the ROW Division.

Submission of contracts involves the following:

Along with the contract, submit a copy of the ordinance or resolution containing authority for their designated official(s) to enter into contracts with the State (for procurement of ROW, utility adjustments and fencing work) for each project.
Submit three copies of each contractual agreement executed by the LPA to the ROW Division for approval.
If a county and one or more cities are involved, submit companion agreements, as required, covering the entire project.

Detailed submission requirements for contractual agreements with the LPA are described in the following Chapter 3- Acquisition Coordination.