The Texas Department of Transportation (TxDOT) spends hundreds of millions of dollars on utility relocations every year. Of the various situations in which a utility relocation is eligible for reimbursement, one of the most complex situations is when parts of the existing utility facility involve a property interest because the utility owner either has an easement or owns the property in fee simple. A wide range of practices exist for what constitutes eligibility for reimbursement.

The purpose of this research was to review and provide recommendations on the methodologies TxDOT uses to determine reimbursement eligibility and calculate utility reimbursement amounts. The research team conducted a review of national practices that included an analysis of relevant laws, regulations, and manuals, as well as interviews with state department of transportation officials. The research team conducted an analysis of a sample of utility agreements at TxDOT, including a review of reimbursement costs and reimbursement eligibility calculation methodologies, and prepared recommendations for implementation. The recommendations include strategies to consider for the calculation of eligibility ratios as well as strategies to improve the quality of utility agreements to make the review and approval process more consistent, accurate, and reliable.

Infrastructure Assets: Highway Assets, Transit Assets
Resource Types: Research Report
Management Processes: Performance Based Planning & Programming, Resource Allocation