MAFA defines the terms and conditions of the relationship and cites federal and regional laws governing agreements with LGs. The LG formally adopts a MAFA through formal measures taken by its governing body and agrees that its general terms of sale are respected for all local projects between TxDOT and LG, unless a specific exception is made in an LPAFA. The signing of an MAFA waives the obligation of both parties to negotiate and review the terms and conditions of the contract at each conclusion of an LPAFA. MAFA does not indicate the costs or volume of work for individual projects. MAFA also does not have a fixed termination date and applies until its termination by TxDOT or LG. An AFA provision between an LG and TxDOT includes the funding tasks of each part of the AFA. Public, federal and local funding missions and funding methods (fixed or percentage) are defined. Each party`s funding obligation is limited to the values specified in the agreement, unless it is the party responsible for cost overruns or a change to the AFA is made in writing by both parties. In order for TxDOT to devote funds or other resources to a transportation project with a local government (LG), a written contract must first be entered into between the parties. At TxDOT, an advance funding agreement (AFA) is the form of the most widely used contract to develop projects with LGs. If TxDOT contracts with another party, usually a private company, for a clearly defined service or service such as engineering plans, environmental studies or asphalt for a highway, a purchase contract is used. However, the AFA is not a purchase agreement. The AFA is an agreement under which TxDOT and LG would allocate participation in a transportation improvement project.
The AFA allows TxDOT and LG to “together” implement a specific project. During the AFA negotiation, TxDOT-Bezirksamt must first check with the Finance Department (FIN) whether LG has a balance outstanding due to the State. In most cases, the remaining balances to be liquidated must be paid before other financing agreements can be concluded. Once a MAFA has been completed, an LPAFA is used to define the extent of the work and the financial responsibility of a given project. The implementation of an LPAFA requires formal action by LG`s governing body. The duration of the LPAFA contract normally ends at the end of the project, unless the AFLA is terminated prematurely or extended on the basis of a change to the APAA by both parties. The LPAFA determines the distribution of responsibilities in carrying out the work, such as .B acquisition of priority rights, the environment, the preparation of the ESP, the construction of the roadway and other aspects of the project. In addition, these AfA for voluntary projects differ from a local agreement on the system (LOSA). The voluntary agreement provides that LG can contribute to TxDOT`s project work.
A LOSA applies to a construction project located on the national road system for which the local government contributes to all funds and manages or performs all engineering and construction work.