Utility work included in the highway construction contract may include items ineligible for TxDOT cost participation. Therefore, it will be necessary for the utility to place the estimated amount of ineligible costs in escrow with TxDOT. A statement should be added to the highway PS&E, in the section where utility items are addressed, stating that the ineligible utility items are financed by an AFA which is included in the Utility Agreement with the utility.

The eligibility ratio and betterment ratio calculated within the Standard Utility Agreement should be applied to all costs included in the highway contract.

Any changes or revisions to the work in the approved utility agreement may require the betterment percentage and/or escrow amount to be recalculated.

The AFA should be coordinated with Contract Services Division and the District. The AFA must be reviewed by the ROW Division prior to execution of the AFA.