Local governments (LGs) are responsible for ROW acquisition and utility adjustments, with exception of interstate highways; however, an LG may request that TxDOT assume the ROW acquisition function. TxDOT's role as the acquiring agency is subject to the following conditions:

the LG offers to make a contribution equal to the applicable percentage of the estimated cost of the ROW;
the Commission has authorized the project; and
ROW costs are eligible for State participation reimbursement.

Typically, LG contribution is 10% unless otherwise stated in the contract agreement. Any change in LG percentage must be approved by the Commission. The LG contribution is based upon current estimates of the cost of the ROW to be acquired. The cost of ROW is defined as the total value of compensation to owners, including utilities, for their property interests. If the agreement is for a specified percentage, additional contributions will be made if the

actual

costs of ROW exceed the amount estimated. If the amount contributed by the LG is greater than the final actual ROW costs, the excess amount will be refunded to the LG. Specified percentage agreements must be approved by the Executive Director in accordance with 43 TAC Section 15.52 (3)(B). On fixed price agreements no refund will be given or additional funds collected from the LG. Fixed prices agreements are the default form of funding agreement with a LG. Since it is possible that some projects could financially burden an LG if the entire contribution is required with the submittal of the contractual agreement, the LG can make periodic payments. Any agreement with a periodic payment schedule has to be approved by the Executive Director of TxDOT in accordance with 43TAC, Section 15.52(3)(C).