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Senate Bill 370 Report – Right of Way Acquisition

D. Right of Way Acquisition

1. Right of entry.

TxDOT acquires rights of way for transportation projects. However, when conducting property appraisals, surveying, or acquiring property for a transportation project, the department lacks authority to enter private property unless expressly authorized. In order to provide TxDOT with the best possible information about potential parcels, including environmental issues, TxDOT needs, but lacks the statutory authority, to have right of entry of private property for environmental surveys. Right of entry would provide TxDOT with key information on the potential for contamination, the presence of wetlands, historic and prehistoric resources, and other sensitive resources, prior to acquisition. Without right of entry, TxDOT must make project decisions on alignments without having all necessary information.

The National Environmental Policy Act of 1969 requires that significant federal actions receive the balanced consideration of social, economic and environmental impacts, and that NEPA documents fully disclose these impacts. TxDOT has accomplished the full disclosure of environmental impacts with one exception – without right of entry, TxDOT cannot fully disclose the particular impacts and issues of a particular parcel. In order to survey potential rights of way, written concurrence from property owners is needed. Often, owners will not allow these surveys to take place, requiring TxDOT to wait until after acquisition to discover the environmental status of a parcel.

Without right of entry, TxDOT cannot complete the environmental analysis of a project until right-of-way acquisition is complete. Prior to acquisition, TxDOT coordinates projects with state and federal resource agencies to determine permit and mitigation needs. This often creates a duplication of effort, because TxDOT must go back to the resource agencies following right-of-way acquisition. In addition, the department ends up paying more for environmental commitments by not knowing the full extent of environmental impacts on a given parcel.

An example of the department’s lacking right of entry costing the state significant expense includes a site purchased in 1992 for the expansion of U.S. Highway 59 in Houston. The site was used as a bulk distribution location for gasoline and also as a gasoline service station. While only a portion of the tract was needed for highway purposes, the department was denied the ability by the property owner to test for contamination. Unfortunately, after acquisition, the tract was found to be extremely contaminated. Clean-up of the site cost the state $3.1 million dollars, on top of the "full-value" property acquisition cost of $1 million.

One example of the department’s lacking right of entry directly leading to a significant delay is a State Highway 35 project in Houston. Multiple property owners refused the department entry for necessary wetland and archaeological studies. The refusals caused a twelve to eighteen month delay in the project.

Possible statutory change: Provide TxDOT right of entry under certain conditions to private property for conducting property appraisals, surveying, or acquiring property.

2. Timely Relocation of Utilities

The timely adjustment or accommodation of utility facilities is absolutely essential to the efficient and cost-effective delivery of transportation projects. Utilities possess statutory authority to occupy public rights of way including state highway rights of way. When highway improvements are made, utility facilities are required to adjust utilities to clear the project in compliance with the criteria contained in the TxDOT Utility Accommodation Policy. However, the department has no means to ensure that utilities are relocated in a timely manner. Many times TxDOT must either delay the letting of a contract or, if possible, require the contractor to work around utilities until they are moved. In fact, in fiscal year 1998, eight projects were pulled from the letting schedule because utilities were not yet relocated to allow construction. Whether the delay is pre-letting or post-letting, these delays can considerably lengthen the time until construction is completed and cause significant expense due to the delays.

Once a project has been let, construction delays caused by utilities can translate directly into claims filed against the department by contractors which have incurred additional overhead and direct costs as a result of the delay. For instance, in 1995 the department settled a claim filed by a contractor stemming from utility delays by compensating the contractor $3.6 million for increased costs due to utility relocation delay on a project in Travis County. Also in 1995, TxDOT settled a claim by compensating the contractor over $600,000 for delays due to utility relocation on a project in Montgomery County.

It should also be noted that various utility companies may be working within highway right of way for up to a year prior to the time that an actual construction project goes to bid. In these cases, the general public may not distinguish between the utility and road contractors. And thus it appears that the construction lasts even longer. For all intent, it does. That is why it is critical for the utility companies to finish their work in a timely manner.

Possible statutory changes: Although the department presently has no specific recommended statutory changes to current law to address this issue, the agency would like the Legislature to be cognizant of problems surrounding the timeliness of utility relocations. There are basically two approaches one could take to address this issue—providing an incentive for completing the work or penalties for inadequate performance. From the Commission's perspective, it is not prudent to pay a utility an incentive to do something that the law requires them to do anyway. Utilities which are late in being relocated result in lengthening the project development and construction process, and increasing project costs. The department encourages the Legislature to explore initiatives which would have a positive effect on the relocation of utilities adjacent to highway improvement projects

 
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