TxDOT-LPA Right of Way Contracts - Right of Way Sub-process Activity III (b)

  • Participants
  1. Local Public Agency (LPA)
  2. TxDOT Right of Way Representative
  3. TxDOT ROW Division
  • Objectives
  1. To establish cost participation and work responsibilities between TxDOT and LPAs.
  2. Satisfy prerequisites to secure right of way project release on Non-Federal-aid projects.
  • Activity Narrative
  1. It is necessary to determine the authorization for the proposed adjustment of utility facilities to decide how to proceed in obtaining approval of Utility Adjustment Agreements. It is also necessary to confirm that the LPAs will transfer responsibility to TxDOT for acquisition of right of way and utility adjustments, and/or if you have contractual documentation of LPA participation in eligible costs before you start the process of preparing an agreement assembly.
  2. When there is Federal-Aid in right of way, inclusive of utility costs, the FHWA Letter of Authorization (see
    Federal Project Authorization and Agreement (FPAA)- Right of Way Sub-process Activity III (a)
    ) is FHWA’s authorization for TxDOT to assume total oversight of the utility adjustment process.
  3. When there is no federal cost participation in right of way, inclusive of utility adjustments, contractual agreements with LPA participants are required. The execution of contractual agreements establishes responsibilities for acquisition of right of way, adjustment of utilities and cost sharing between the LPA(s) and TxDOT. The type of contract to be used is determined by whether the LPA desires to administer right of way activities and payments or defer those responsibilities to TxDOT. There are two general types of contractual agreements as follows:
    • On non-Federal-Aid right of way projects when the LPA administers the payments to utility entities, it is also necessary to execute an Agreement for Right of Way Procurement. This agreement allows the LPA to assume oversight of the utility adjustment payment process. In return, TxDOT will reimburse the LPA the agreed percentage of actual eligible expenditures.
    • On non-Federal-Aid right of way projects where TxDOT is to administer the payments to utility entities, it is necessary to execute an Agreement to Contribute Funds, with the LPA. This agreement is the LPA’s assignment to TxDOT of the responsibility to oversee the utility adjustment and payment process. In return, the LPA will escrow to TxDOT the agreed percentage of cost participation based on the right of way project estimate and amendments thereto.
It is the responsibility of the TxDOT Right of Way Representative, in cooperation with the LPA, to determine and prepare the appropriate agreement for execution. The execution of this agreement by the LPA and TxDOT is a prerequisite for establishment and release of a right of way project. The type of contract selected, as it relates to utility adjustments will dictate the path to follow in Right of Way Sub-process Activity VI (see
LPA Agreement to Contribute Funds - Right of Way Sub-process Activity VI
. )