(a) Purpose and applicability. Transportation Code, §201.209
authorizes the department to enter into interlocal contracts with one or more
local governments in accordance with Government Code, Chapter 791. The purpose
of this section is to increase the efficiency and effectiveness of the department
by establishing procedures for contracting with one or more local government
agencies to perform governmental functions and services. This section does
not apply to contracts governed by Chapter 15, Subchapter E of this title
(relating to Federal, State, and Local Participation).
(b) Definitions. The following words and terms, when used in
this section, shall have the following meanings, unless the context clearly
indicates otherwise.
(1) Governmental functions and services--All or part of a governmental
function or service in which the contracting parties are mutually interested.
(2) Local government--A county, municipality, special district,
or other political subdivision of this state or another state, or a combination
of two or more of those entities.
(3) Political subdivision--Any corporate and political entity
organized under state law.
(c) Request. One or more local governments may request the
department to perform or receive governmental services or functions.
(d) Approval. In approving the interlocal contract, the department
will consider:
(1) whether the parties individually have the authority to
perform the governmental service or function;
(2) whether the funding or resources would further the department's
duties and responsibilities;
(3) whether the project is in the best interest of the state;
(4) whether the contract would be consistent with applicable
state procurement practices;
(5) whether the local government commits in the contract to
comply with all federal, state, and department requirements;
(6) the need for expeditious project completion;
(7) the cost effectiveness of the proposal;
(8) the location of the project; and
(9) any other considerations relating to the traveling public
and the operations of the department.
(e) Requirements for services and functions provided to the
department.
(1) Design. Any plans 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.
(2) Materials. Any materials provided shall be in accordance
with department specifications.
(f) Contracts. All contracts will include, but not be limited
to, the following provisions.
(1) General provisions. The contract must:
(A) be authorized by the governing body of the local government
when required by law; and
(B) contain a statement of the purpose, term, and rights and
duties of the contracting parties.
(2) Right of entry, if applicable. The local government will
permit the department or its authorized representative access to the project
site to perform all activities required to execute the work.
(3) Funding and payment. The contract will include the amount
of funding, resource allocation, and payment provisions, and will specify
that each party paying for the performance of governmental functions or services
must make payments from current revenues available to the paying party. Any
payment provision will be in an amount that is the actual cost of providing
the services or resources, or the nearest practicable estimate of that cost.
(g) Amendments. The parties may amend the contract in the case
of significantly changed conditions or other mutually agreed upon changes
in the scope of work authorized in the contract. The amendments will set forth
the reason for the change and establish the revised participation.
(h) Termination. If the local government withdraws from the
project after the contract is executed, it shall be responsible for all costs
incurred by the department under the contract.
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