(a) Program. The department may award a contract or contracts to a person, firm, group, or association in the State of Texas, for an initial period not to exceed five years, to develop, operate, and maintain information logo and TOD signs at appropriate locations along eligible highways subject to the terms and conditions of the subsection.
(b) Marketing. In marketing the information logo and TOD sign program, the contractor shall market the program to have maximum statewide implementation under the terms and conditions contained in the program contract.
(c) Site plans. Prior to construction of an information logo sign at an approved location, the contractor must submit a site plan to the department. Upon approval of the site plan, the contractor may begin work at the location described.
(d) Contacting participating businesses. In the first three months of a contract between the department and the contractor, the contractor shall contact all participating businesses with logo or TOD sign panels to:
  (1) notify the businesses of the new contract between the department and the contractor; and
  (2) coordinate whether the participating businesses will renew if space is available.
(e) Cooperation with other contractors. The contractor is required to cooperate with any contractor working on the state highway system as well as any other contractors operating other sign programs within the state. Upon request by a potential lessee, the department, or a member of the public, the contractor will furnish the name, address, and telephone number of other information logo sign or TOD sign contractors.
(f) Annual report. The contractor shall furnish an annual report to the department. The annual report will include the contractor's financial statement, number of logo sign assemblies erected, number of major shopping area guide signs erected, number of TOD sign assemblies and panels erected, and number of participation agreements completed. Other reports may also be required throughout the year as determined by the department.
(g) Program information.
  (1) The contractor shall furnish an electronic inventory to the department in a format or formats of the department's choice. This inventory shall include, but not be limited to:
    (A) a list of all businesses participating in the program;
    (B) information on all participating businesses including addresses, key contacts, and phone numbers;
    (C) location information for each information logo sign including:
      (i) roadway;
      (ii) exit number or crossroad; and
      (iii) direction;
    (D) information for each TOD sign including:
      (i) roadway and crossroad;
      (ii) number of TOD sign panels per TOD sign assembly;
      (iii) direction; and
      (iv) county; and
    (E) date of expiration of the contract between each participating business and the program contractor.
  (2) The inventory shall be updated and provided to the department on a monthly basis.
(h) Installation by contractor. Installation of information logo and TOD signs may only be performed by the contractor, a subcontractor approved by the department, or, in emergency situations, by the department. In the event that the department undertakes installation or other duties of the contractor, the contractor shall immediately remit to the department the specified fee or cost of such work.
(i) Department review. Prior to installation, the design and location of information logo and TOD signs must be submitted to the department for review.
(j) Sign relocation or removal. If the department determines that additional regulatory, warning, or guide signing is needed, existing or planned information logo or TOD signs shall be removed or relocated by the contractor as directed by the department and at the sole expense of the contractor. If the department determines that construction or maintenance activities within the eligible highway rights of way will create conditions where existing information logo or TOD signs will not be in compliance with Transportation Code, Chapter 391, or provisions of this title, the contractor shall:
  (1) remove the business logos and ramp business logos of the affected commercial establishments;
  (2) remove the information logo signs and ramp signs;
  (3) remove the TOD signs; and
  (4) reimburse advance rental fees paid by participating businesses or entities prorated as per the date of removal of the business logos, major shopping area guide signs, or TOD signs.
(k) Sign maintenance. The information logo and TOD signs shall be maintained by the contractor in a manner and condition that is a distinct benefit to the safety of the public, benefit to the participating businesses or entities, and to the satisfaction of the department.
(l) Fees. The contractor shall assess a fee covering the installation, annual rental, covering, maintenance, and replacement costs for the signs and shall remit to the department the amount specified in the contract no later than the seventh business day following the last day of the month such fees are received by the contractor.
  (1) Reduced fees. The contractor shall reduce the annual rental fee by a prorated amount for each calendar day when:
    (A) the business or ramp business logo(s), or the major shopping area guide sign has not been erected; or
    (B) a previously erected business, ramp business logo, major shopping area guide sign, or TOD sign is obscured from view of the motorists for a period of time exceeding 10 consecutive calendar days.
  (2) Non-reducible fee. A contractor may not reduce the annual fee for the period a business logo, ramp business logo, or major shopping area guide sign, or TOD sign is covered at the request of the participating business or entity.
(m) Termination.
  (1) Contractor termination. If the contractor terminates the contract or defaults prior to the conclusion date of any five-year term, ownership of the contract rights and any rights in the information logo or TOD signs constructed at the various interchanges and intersections shall immediately pass to and vest in the department on the effective date of termination, and the contractor shall not be entitled to any compensation.
  (2) Department termination. If the department terminates the contract, before the contract's termination date, for reasons other than default by the contractor, the contractor will be paid for the depreciated value, as established by the department, for each of the information logo or TOD signs erected. The percentages are as follows (based on elapsed time since sign installation and the expiration year's statewide average square foot bid price for a similar ground mounted sign):
    (A) less than one year--90%;
    (B) one year or more but less than two years--50%;
    (C) two years or more but less than three years--25%; or
    (D) three years or more--0%.
  (3) Contract termination.
    (A) If the contract terminates at its specified termination date, the existing contractor is not awarded the contract, and the existing contractor's contract contains payment terms for economic value at the end of the specified termination date, then the subsequent contractor will pay the department the following economic value based on elapsed time since sign installation and the expiration year's statewide average square foot bid price for a similar ground mounted sign:
      (i) less than one year--90%;
      (ii) one year or more but less than two years--50%;
      (iii) two years or more but less than three years--25%; or
      (iv) three years or more--0%.
    (B) The department will pay the existing contractor the amount indicated in subparagraph (A) of this paragraph.
    (C) Specific information logo ramp signs will not be eligible for consideration of compensation.
    (D) An existing specific information logo sign contractor receiving a new contract will not be eligible for compensation upon expiration of the contract.
    (E) The department will provide an estimate of the economic value of these signs in the department's request for offer.
(n) Sale, transfer, and assignment of contract. The contractor shall not sell, transfer, assign, or otherwise dispose of the contract or any portion thereof, or of its right, title, or interest therein, without the prior written consent of the department.

Source Note: The provisions of this §25.402 adopted to be effective November 17, 2005, 30 TexReg 7497