Section 8: Local Utility Procedure

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Under the Local Utility Procedure (LUP), the LPA may acquire right of way and adjust utilities with their own forces and to some extent under their own rules. The LPA must be aware that some qualifications and requirements have to be met if the right of way is to be placed on the State’s system of roadways, be maintained by the State, has State or Federal funding involved, and if utility adjustments are involved. These requirements are as listed in the remainder of this section. A flowchart in PDF format, showing steps of this procedure, is available.

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  • There is a contractual agreement with the LPA designating the responsibilities of each party.
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  • The LPA is responsible for negotiating, communicating, and coordinating utility adjustments.
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  • Eligibility is based on compensable interests held by the utility.
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  • TxDOT cost participation is based on totally or partially eligible adjustments.
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  • The LPA is responsible for utility payments.
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  • TxDOT reimbursement to the LPA for utility adjustments is in accordance with the terms of the contractual agreement.
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  • The LPA maintains local participation and control.
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  • In some instances, there is a more expeditious payment of utility final billing.
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Acquisition of Replacement Right of Way

When state or Federal funds are involved in the acquisition of replacement right of way:

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  • the LPA must follow the requirements of the Uniform Relocation Act of 1970 and the Real Property Acquisition Policies Act of 1970, and
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  • the LPA will have to certify that the above acts have been complied with.
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Utility Accommodation

The LPA must follow the State’s UAR and policies dealing with utilities; or

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Participation in Costs of Adjustments

The LPA must furnish the State with copies of proposed adjustment and installation plans, and estimates to determine the upper limit of participation by the State in costs of the proposed adjustments. Cost participation will be limited to 90% of eligible costs.

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Eligibility of Utility Adjustments

The LPA must, either by requested review before, or by documentation at the time of billing, prove the eligibility of the utility work by demonstrating the utility’s property rights or compensable rights. A review by the District, before expenditures, is recommended and may be accomplished by a submission in writing, with accompanying documentation, requesting the review.

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Utility Agreements

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  • The use of a written utility agreement contract is not required between the LPA and the utility, although the use of such a contract is encouraged when payments are to be based on an actual cost basis. The use of a lump sum agreement, pre-approved by TxDOT, is encouraged.
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  • The use of a written utility agreement contract, assuring compliance with the FHWA-approved UAR, is required when Federal-aid funds are involved.
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