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CONCURRENT RESOLUTION
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WHEREAS, Texas Department of Transportation (TxDOT) |
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procedures for state transportation projects within the |
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jurisdiction of a local government, also known as local government |
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projects, require local governments to pay for project cost |
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overruns, even though cities and counties typically have no |
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authority to award contracts, evaluate engineering, or approve |
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change orders for the projects; and |
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WHEREAS, Under the terms of an advanced funding agreement, |
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which TxDOT requires for all local government projects that receive |
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state or federal funds, the city, county, or other unit of local |
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government is responsible for any overruns in excess of the |
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approved local project budget unless otherwise provided for in the |
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agreement; and |
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WHEREAS, Simultaneously, the advanced funding agreement |
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requires TxDOT, unless specifically provided for otherwise in the |
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agreement, to award and administer the construction contract, which |
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includes responsibility for construction engineering and issuance |
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of any change orders that may become necessary after the contract is |
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awarded; and |
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WHEREAS, In addition to making local governments responsible |
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for overruns on projects over which they have no supervisory |
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control, TxDOT's procedures for local government projects also have |
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the effect of halting construction of new roads, bridges, and |
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overpasses if local governments do not provide funding to cover the |
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overruns; and |
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WHEREAS, It is a challenge for many local governments to |
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include transportation project cost overruns in an annual budget |
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given the uncertain nature of the overruns and the many competing |
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priorities for available funds; generally, these overruns require a |
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local government to make spending cuts in other parts of the budget; |
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and |
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WHEREAS, The challenge of budgeting for such overruns is |
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especially daunting for local governments in economically |
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disadvantaged counties identified by the Texas comptroller of |
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public accounts as having below-average per capita property value |
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and income and above-average unemployment; now, therefore, be it |
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RESOLVED, That the 80th Legislature of the State of Texas |
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hereby request the Texas Department of Transportation to revise |
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procedures for local government projects to specify that local |
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governments are not responsible for cost overruns on projects over |
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which they have no supervisory control; and, be it further |
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RESOLVED, That the secretary of state forward an official |
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copy of this resolution to the chair of the Texas Transportation |
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Commission and to the executive director of the Texas Department of |
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Transportation. |