Chapter 2: Contractual AgreementsAnchor: #CHDGAJBH
Section 1: FormsAnchor: #i999650
To establish acquisition and funding responsibilities and requirements of TxDOT and a local government (LG), an agreement must be entered into before a project is released for ROW acquisition. These agreements are discussed more fully in Chapter 3 Acquisition Coordination.
Below is a list of agreements and Attachment C forms to be used with the LGs. Agreement forms can be found on the Right of Way Division’s SharePoint site.
Agreement for Right of Way Procurement
Attachment C - Standard Funding Schedule - Local Performs Work
Attachment C - Economically Disadvantaged County (EDC) Funding Schedule - Local Performs Work
Supplemental Agreement for Right of Way Procurement - Government
Agreement to Contribute ROW Funds Fixed Price
Attachment C - Standard Funding Schedule - State Performs Work
Attachment C - Periodic Payment Funding Schedule - State Performs Work
Attachment C - Real Property in Lieu of Monetary Payment Funding Schedule - State Performs Work
Attachment C - EDC Funding Schedule - State Performs Work
Supplemental Agreement to Contribute ROW Funds
Attachment C - EDC Funding Schedule - Local Performs Work
TxDOT's Contract Services Division 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:
- Anchor: #KYDDNSBW
- a Master Agreement Governing Local Transportation Project Advance Funding Agreements (MAFA), and Anchor: #FWCEYNAS
- a Local Project Advance Funding Agreement (LPAFA).
By these agreements, regardless of the type of agreement signed, TxDOT authorizes and requests the local government to proceed with ROW acquisition and agrees to reimburse the LG for its share of costs incurred according to the agreement's provisions. The agreement provides LG 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:
- Anchor: #BJPCPODN
- 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 LG for highway, street, or road purposes; and Anchor: #XDMIUVDH
- 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:
- Anchor: #RPWFCMRW
- TxDOT's reimbursement to the LG 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 Anchor: #YFLQIPBL
- 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:
- Anchor: #JAQPSOTJ
- Special Commissioners' Hearings, Anchor: #CRESCDBH
- appraisal expenses for the State's fee appraisers used in condemnation cases, Anchor: #CWDYNTFQ
- utility relocations, and Anchor: #SMRUBCRP
- fencing and property adjustments.
The contractual agreement provides for division of other responsibilities for project development. The LG typically assumes entire responsibility for:
- Anchor: #TEPBVUNL
- costs incurred in arriving at values to recommend for State approval, Anchor: #BUOCWPSL
- costs relative to negotiation, Anchor: #KWSBJFHB
- its attorney fees for condemnation proceedings, and Anchor: #PGFBVPKR
- costs of recording instruments of conveyance.
TxDOT typically assumes the responsibility and costs of:
- Anchor: #TTJXRKXA
- land surveys, Anchor: #JYFXNWEG
- property descriptions, Anchor: #TBAVVGBN
- title information, Anchor: #XLOUMWIG
- preparation of instruments, ROW maps, supplemental investigations or appraisals necessary to determine the appropriateness of submitted values and fees for title services, Anchor: #AYQYLHCN
- appraisals where the State is to determine values as a result of the LG's use of the waiver provision of the contractual agreement, Anchor: #CQIGFYBU
- relocation assistance, and Anchor: #UGKQTDJJ
- removal of improvements.
The Right of Way staff prepares the necessary contractual agreements. Project limits should agree with project limits covered by minute order or program authorization. The preparation of all these agreements should be handled by the Right of Way field staff, with execution of all agreements by the ROW Division’s Contracts and Finance Director.
Submission of agreements involves the following:
- Anchor: #AUCETEEY
- Along with the agreement, submit a copy of the city ordinance or resolution containing authority for their designated official(s) to enter into agreements with the State (for procurement of ROW, utility adjustments and fencing work) for each project. Anchor: #BRSCMBEP
- Submit two copies of each contractual agreement executed by the LG to the ROW Division’s Contracts and Finance Section, Project Financial Management Branch for approval. Anchor: #IIOUATMW
- 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 LG are described in Chapter 3 Acquisition Coordination.