Utility Agreements

  • 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 written utility agreement contract, assuring compliance with the FHWA-approved UAR, is required when Federal-aid funds are involved.
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 is
optional
, while Determination of Upper Limits is
mandatory
.
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:
  • one (1) electronic copy of the utility's preliminary estimates
  • one (1) electronic copy of the plans
  • one (1) electronic copy of form (Method of Accounting), if applicable
  • one (1) electronic copy of Affidavit of Property Ownership, form ROW-U-Affidavit (for Utility Owner), ROW-U-Affidavit (for Disinterested Party), or ROW-U-Affidavit (for Property Owner)
  • confirm replacement/in kind
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:
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:
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.