Section 4: Reimbursement When LPA is Responsible PartyAnchor: #i1005673
Reimbursement Based on Actual Cost
Final reimbursement under the actual cost procedure will be made after the LPA’s verification that the work is complete. At the LPA’s request, partial payments may be considered. See Partial Payments.
The District and ROW Division will conform to the “Prompt Payment” process.
TxDOT does not require the LPA to execute a formal contract with the utility when reimbursement is based on actual costs. Use of a written contract is at the discretion of the utility and the LPA.Anchor: #i1005697
LPA Procedures for Determining Eligibility of Adjustments
NOTE: Determination of Eligibility is optional, while Determination of Upper Limits is mandatory.
The following two procedures are available to the LPA for determining eligibility of adjustments for TxDOT cost participation. The LPA may use either procedure.
Determination of Eligibility The LPA may request that TxDOT assist in the determination of eligibility. When requesting Determination of Eligibility from TxDOT before making commitments to the utility on an actual cost adjustment, the LPA must submit the following documents to the District, which forwards their recommendation to the ROW Division before authorization of the adjustment:
- Anchor: #AMRVAAOB
- two copies of the utility’s preliminary estimates, Anchor: #UKDYXVVR
- two copies of the plans, Anchor: #AXQALNQF
- two copies of Form ROW-U-48, Statement Covering Contract Work, if applicable, Anchor: #ESMOCPEF
- one copy of Affidavit of Property Ownership, Form ROW-U-1A, ROW-U-1B, or ROW-U-1C, as appropriate, or Form ROW-U-84, Compensable Interest Certificate
The ROW Division will review the preliminary plans and estimates of the proposed adjustment along with the compensable interests held by the utility. The eligibility of items reflected in the estimate, betterment, expired service life credit, and other matters will be reviewed to ensure that there is a clear understanding of the proposed adjustment. If the preliminary submission is found satisfactory by the ROW Division, the District will be notified that TxDOT reimbursement will be based on the required percentage contained in the contractual agreement between the State and LPA of the eligible items of actual cost, as appearing in the detailed final billing prepared by the utility, or as paid by the LPA, whichever is the lesser amount. The utility must keep accurate and detailed cost records of the adjustment, since all cost records and accounts are subject to audit by TxDOT for three years after final payment.
Performing the adjustment without obtaining TxDOT Determination of Eligibility incurs the risk that the utility and/or LPA may expend funds that may not be eligible for TxDOT cost participation.
Determination of Upper Limits of State Cost Participation The LPA may authorize a utility adjustment before receipt of the TxDOT’s investigation of eligibility for cost participation. Under this procedure, TxDOT determination of eligibility is delayed until the reimbursement stage.
The LPA must submit the following documents to the District when requesting reimbursements:
- Anchor: #CQBCQJCO
- Final billing and supporting data Anchor: #BAJTGGXQ
- Plans of the adjustment Anchor: #RACRHTMX
- Compensable interests forms ROW-U-1A, ROW-U-1B, or ROW-U-1C, or ROW-U-84, with attachments Anchor: #LKNNJIRR
- Contract work form (Form ROW-U-48), if applicable Anchor: #VPQRPOYW
- Utility Joint Use Acknowledgement ( ROW-U-JUAA), if applicable or not previously submitted Anchor: #PCASOOIM
- Quitclaim instrument ( ROW-N-30), if applicable.
The billing submitted by the utility under this procedure is checked in the same manner as a preliminary estimate and a final billing. Therefore, this procedure is a combination estimate and billing.
Mandatory Procedures Regardless of which of the above procedures is used, the following will apply:
- Anchor: #FWIEHYQH
- When Form ROW-U-43A, Standard Utility Agreement, Lump Sum, Local Government, is entered into, one original and three copies of Form ROW-A-15, along with the dates that the actual construction work was started and completed, will be required, along with the Utility Joint Use Acknowledgement and any necessary quitclaim deed. The District’s letter of submittal should contain a recommendation for payment of the billing and an invoice should accompany it. Anchor: #WHBPOLAF
- Utility cost estimates must be sufficiently itemized to make a determination of eligibility. This is particularly true for adjustment of facilities partially located on highway right of way, and utility-owned right of way whereby an eligibility percentage is applied to the cost of the adjustment. When an eligibility percentage is necessary, all applicable betterment, accrued depreciation, and salvage credit must be deducted from the estimated cost before applying the eligibility percentage.
Reimbursement Based On Lump Sum Values
General This method of reimbursement requires TxDOT to determine the necessity, eligibility, and approved lump sum values for utility work before work can begin. TxDOT must reach agreement with the utility and the LPA on the exact amount of reimbursement. Unlike actual cost adjustments, a formal three-party agreement between TxDOT, the LPA, and the utility is required under the lump sum method.
TxDOT will determine an approved value after analysis of an itemized estimate prepared by the utility. Reimbursement to the utility by the LPA will be made after verification that the work is completed according to the agreement. Thereafter, TxDOT will reimburse the LPA in the percentage specified in Form ROW-U-JUAA.
The LPA will acquire the necessary agreements, plans, estimated costs, and appropriate affidavit of property ownership for each adjustment when TxDOT cost participation will be requested. The following material is required for establishing an approved value before the execution of the three-party formal agreement:
- Anchor: #PQOFBIFD
- plans Anchor: #ESKRKUIC
- estimates Anchor: #FJEEGNGL
- transmittal letter Anchor: #DFVRSTVE
- supporting documentation Anchor: #WYGXINJA
- affidavits establishing compensable interests, either Form ROW-U-1A, ROW-U-1B, or ROW-U-1C, or Form ROW-U-84, Compensable Interest Certificate. Anchor: #IFDEDDBG
- Form ROW-U-48, Statement Covering Contract Work.
The LPA must submit the material to the District for review and concurrence. If the District finds all material satisfactory, the submission will be forwarded to the ROW Division for approval. The agreements will not accompany this initial submission since they will normally be executed after TxDOT has approved a value. The District’s transmittal of the material to the ROW Division must contain the following:
- Anchor: #QEDJBSRO
- reasons for the proposed adjustment; Anchor: #RNTCSJXS
- a statement that the proposed adjustment is the most economical action; Anchor: #UYPYXLCD
- a statement that the proposed adjustment meets the UAR and TxDOT project requirements; and Anchor: #RTMMLORR
- the recommended value for approval.
The ROW Division will review the submission and assign an agreement number for identification purposes. The ROW Division will notify the District of the amount eligible for TxDOT cost participation. The District will notify the LPA of the approved value. After receipt of the approved value, the LPA can execute an agreement with the utility and TxDOT.
Final Billings Upon completion of the work covered by the lump sum agreements, the utility will submit an invoice for the agreed-upon lump sum, along with its request for payment to the LPA. Before payment, the LPA must provide any required instruments (i.e., quitclaim, release, joint use, or subordination) relating to the utility’s compensable interests at the adjustment site. After paying the utility, the LPA may then request TxDOT reimbursement. The amount of reimbursement is not to exceed the approved amount that appears in the formal agreement previously approved by TxDOT.
One original of Form ROW-A-15 requesting TxDOT reimbursement to the LPA must be submitted to the ROW Division. The beginning and ending dates of the actual construction work must be shown either on the billing statement or in the transmittal memo.
All utility adjustments on TxDOT and LPA projects will be charged to Function 500/Object 393. A Payee Identification Number (PIN) must be shown on the Form ROW-A-15. In support of each Form ROW-A-15 submission, include one original of the following:
- Anchor: #FGXDTHMH
- ROW-U-45, Tabulation of Utility Adjustments Anchor: #RCIJGXHU
- ROW-U-27A, Certificate to Support Final Billing
Instruments that support the compensable interest must accompany this submission. At least one copy each of Form ROW-A-15 and Form ROW-U-45, Tabulation of Utility Adjustments, must have original signatures.