80R1551 CLE-D

By: Raymond H.C.R. No. 14

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 80th 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.