(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.

Source Note: The provisions of this §9.9 adopted to be effective December 5, 2001, 26 TexReg 9915