| (a) Purpose. Transportation Code, Section 222.051 authorizes
a local government to finance the construction of an approved project for
the state highway system. This section prescribes the conditions under which
a local government may finance the construction of an approved highway improvement
project, and the conditions under which the commission may approve reimbursement
of the local government's contribution. This section also prescribes the conditions
under which a local government may finance the construction of a service project.
(b) Definitions. The following words and terms when used in
this section shall have the following meanings, unless the context clearly
indicates otherwise.
(1) Approved highway improvement project - A highway improvement
project on the state highway system identified in the statewide transportation
plan or a regional transportation plan.
(2) Construction costs - Costs associated with preliminary
engineering, construction engineering, construction, right-of-way acquisition,
and all other costs directly related to the approved highway improvement project.
For service projects, the construction costs will also include all indirect
costs as identified by the department's cost accounting system.
(3) Service project - A highway improvement project requested
by a local government which provides limited benefits to the general traveling
public. These projects are not an integral part of the state transportation
system and primarily provide new or improved access to abutting property.
(c) Request. A local government may request approval from the
department to fund the construction cost of an approved highway improvement
project or a service project. The request for an approved highway improvement
project shall state whether the local government desires reimbursement of
its contribution, subject to the considerations outlined in subsection (e)
of this section.
(d) Project approval.
(1) Approved highway improvement projects.
(A) Approval authority. The executive director is authorized
to approve requests to finance an approved highway improvement project, based
on the considerations in subparagraph (B) of this paragraph.
(B) Considerations. In approving a request to finance an approved
highway improvement project, the executive director will consider:
(i) statewide transportation needs;
(ii) regional economic impact;
(iii) North American Free Trade Agreement implications;
(iv) local government needs;
(v) environmental impact and any requirements for environmental
mitigation; and
(vi) any other considerations relating to the benefit to the
state, the traveling public, and the operations of the department.
(2) Service Projects.
(A) Approval authority. A request to finance a service project
may be approved by the following authority, based on the considerations in
subparagraph (B) of this paragraph:
(i) district engineer for projects with a total cost estimated
at less than $300,000;
(ii) executive director for projects with a total cost estimated
at $300,000 or more.
(B) Considerations. In approving a request to finance a service
project, the executive director or district engineer will consider:
(i) local transportation needs;
(ii) regional economic impact;
(iii) safety implications of the proposed project;
(iv) environmental impact and any requirements for environmental
mitigation; and
(v) any other considerations relating to the benefit to the
state, the traveling public, and the operations of the department.
(C) Indirect Costs. For service projects, a local government
may request a waiver from the executive director for the collection of indirect
costs. In approving the local government's request for a waiver, the executive
director will consider:
(i) local economic impact,
(ii) residual public benefit,
(iii) local government needs, or
(iv) any other considerations relating to the benefit to the
state, the traveling public, or the operation of the department.
(3) Agreement and conditions.
(A) If the department approves a project under this subsection,
the local government and the department will enter into an agreement as specified
in §15.52 of this subchapter, except that construction costs shall be
as defined in this section.
(B) If a local government withdraws from the project after
the agreement is executed, it shall be responsible for all direct and indirect
project costs incurred by the department for the items of work in which the
local government is participating.
(C) All aspects of the project will be carried out in compliance
with applicable federal and state laws and regulations.
(D) The project shall be designed in accordance with the latest
department policies, procedures, standards, and guidelines. All plans, specifications,
and estimates shall be approved by the department prior to advertisement for
bids on the project.
(e) Reimbursement approval.
(1) Considerations. If requested by the local government and
if funds are available, the commission may reimburse the local government
for all or a portion of its contributions to an approved highway improvement
project approved under this section. In approving reimbursement, the commission
will consider:
(A) statewide transportation needs;
(B) needs of the local government;
(C) economic benefit to the state; and
(D) any other considerations relating to the benefit to the
state, the traveling public, and the operations of the department.
(2) Agreement. If approved for reimbursement under
this subsection, the department will enter into an agreement with the local
government as specified in §15.52 of this subchapter.
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| Source Note: The provisions of this §15.56 adopted to be effective September 26, 1996, 21 TexReg 8957; amended to be effective September 23, 1997, 22 TexReg 9260; amended to be effective July 23, 2000, 25 TexReg 6810 |
