There are three methods for reimbursing a railroad company. The appropriate method depends on the scope and complexity of the project and whether the railroad company uses its own

labor

or a contractor to perform the work.

If the railroad company uses its own

workforce

to perform the

labor

, reimbursement is usually made on an actual cost basis. However, if TxDOT and the railroad company agree, reimbursement can be based on a lump sum cost estimate. This would typically occur on smaller projects where actual cost to the railroad company is easily estimated. Project costs and method of reimbursement (actual or lump sum) are approved in the individual project agreement.

The railroad company may use a contractor to perform the work under a continuous agreement with the railroad company. The continuous agreement must be for a minimum of three years. The contractor’s costs are included in the project estimate and reimbursed at actual cost during construction unless a lump sum arrangement is shown in the individual project agreement. The railroad company directly invoices TxDOT and reimburses their contractor separately.

The railroad company may also provide labor (inspection, etc.) and include estimated costs in the individual project agreement. Reimbursement to the railroad company will be at actual cost.

The railroad company may choose to solicit bids for the project from a minimum of three contractors. The lowest qualified bid will be accepted and reimbursed at actual cost. If three bids are not received,

RRD

may still accept the lowest qualified bidder if at least three contractors were contacted and one or more chose not to bid the project.

The railroad company directly invoices TxDOT and reimburses their contractor separately.

The railroad company may also provide labor (inspection, etc.) and include estimated costs in the individual project agreement. Reimbursement to the railroad company will be at actual cost.

Typically, there are

four

separate paths

Section 130

projects will follow after Exhibit A’s/

SOW

, cost estimates and railroad

circuit

diagrams are completed:

If a Master Agreement exists between TxDOT and the railroad company,

RRD

prepares an Exhibit B as per terms of the Master Agreement. The Exhibit B normally consists of:

Depending on the terms in the Master Agreement, the Exhibit B may need to be executed by the railroad company.

The fully executed Exhibit B is uploaded into the TRIMS Project Management Module by the

RRD

project manager.

If a Master Agreement does not exist with the railroad company,

RRD

prepares and negotiates a Force Account Agreement for the crossing project. The Force Account Agreement will typically include the items listed above shown in both the Master Agreement and Exhibit B.

RRD

will coordinate any comments on the proposed Force Account Agreement from the railroad company and revise the agreement as needed. The agreement will be executed first by the railroad company and then by

RRD

.

The fully executed Force Account Agreement is uploaded into the TRIMS Project Management Module by the

RRD

project manager.

If the crossing is being widened such as by installing medians, sidewalk, or hump or vertical alignment mitigation, and if the railroad determines the widened roadway shall require a new C&M agreement, then the C&M Agreement process from Chapter 2, Section 4, shall be followed.

For crossing closure projects,

RRD

will prepare a Crossing Closure Agreement regardless of whether a Master Agreement exists with the railroad company. The Crossing Closure Agreement typically includes similar articles and attachments as listed above for both a Master Agreement and Exhibit B and will also include a copy of the signed ordinance/resolution stating the crossing to be closed. A local government is typically given two years from the date of the executed Crossing Closure Agreement to invoice TxDOT for any improvements to adjacent roadways identified in the agreement.

RRD

will coordinate all comments on the proposed Crossing Closure Agreement from participating parties (district, railroad company or local government) and revise the agreement as needed prior to submitting to all signing parties for execution. For three-party agreements, the agreement is usually executed first by the railroad company, then the by the local government, and finally, by

RRD

. For two-party agreements, the agreement will be executed first by the railroad company and then by

RRD

.

The fully executed Crossing Closure Agreement is uploaded into the TRIMS Project Management Module by the

RRD

project manager.

RRD

distributes a copy of the executed Exhibit B, Force Account Agreement or Crossing Closure Agreement to:

At the conclusion of each program year,

RRD

will track the final list of crossing locations selected for improvements with Section 130 funding. This list will consist of the preliminary project list, with any No Further Action projects removed, and any additional projects added. The list is referred to as the Exhibit L.

Advanced Funding Agreements (AFA) are coordinated between the local government and the affected district. Once executed, RRD will obligate any funds needed per the terms of the AFA. An AFA is typically executed to cover design and/or construction by local agencies for civil work funded by Section 130. Any railroad work on the project is typically handled by a TxDOT Section 130 agreement between TxDOT and the railroad company and shall be referenced, but the amount not part of the local government AFA.

For off system work covered by SOW only, a no cost or similar AFA shall be executed between TxDOT and the local government prior to federal obligation.