79R7395 CLE-D

By:  Raymond                                                    H.C.R. No. 95 



CONCURRENT RESOLUTION
	WHEREAS, Texas Department of Transportation (TxDOT) 
procedures for state transportation projects within the 
jurisdiction of a local government, also known as local government 
projects, require local governments to pay for project cost 
overruns, even though cities and counties typically have no 
authority to award contracts, evaluate engineering, or approve 
change orders for the projects; and
	WHEREAS, Under the terms of an advanced funding agreement, 
which TxDOT requires for all local government projects that receive 
state or federal funds, the city, county, or other unit of local 
government is responsible for any overruns in excess of the 
approved local project budget unless otherwise provided for in the 
agreement; and
	WHEREAS, Simultaneously, the advanced funding agreement 
requires TxDOT, unless specifically provided for otherwise in the 
agreement, to award and administer the construction contract, which 
includes responsibility for construction engineering and issuance 
of any change orders that may become necessary after the contract is 
awarded; and
	WHEREAS, In addition to making local governments responsible 
for overruns on projects over which they have no supervisory 
control, TxDOT's procedures for local government projects also have 
the effect of halting construction of new roads, bridges, and 
overpasses if local governments do not provide funding to cover the 
overruns; and
	WHEREAS, It is a challenge for many local governments to 
include transportation project cost overruns in an annual budget 
given the uncertain nature of the overruns and the many competing 
priorities for available funds; generally, these overruns require a 
local government to make spending cuts in other parts of the budget; 
and
	WHEREAS, The challenge of budgeting for such overruns is 
especially daunting for local governments in economically 
disadvantaged counties identified by the Texas comptroller of 
public accounts as having below-average per capita property value 
and income and above-average unemployment; now, therefore, be it
	RESOLVED, That the 79th Legislature of the State of Texas 
hereby request the Texas Department of Transportation to revise 
procedures for local government projects to specify that local 
governments are not responsible for cost overruns on projects over 
which they have no supervisory control; and, be it further
	RESOLVED, That the secretary of state forward an official 
copy of this resolution to the chair of the Texas Transportation 
Commission and to the executive director of the Texas Department of 
Transportation.