1. (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 signs at appropriate locations along eligible highways and eligible urban highways, subject to the following terms and conditions.

2. (b) Marketing.

   1. (1) In marketing the specific information logo sign program, the contractor shall:

      1. (A) within a one-mile radius of the interchange if the total number of eligible commercial establishments willing to participate is equal to or greater than the number of available spaces and the available alternate positions for a motorist service;
      2. (B) within a two-mile radius of the interchange if the total number of eligible commercial establishments willing to participate is equal to or greater than the number of available spaces and the available alternate positions for a motorist service; or
      3. (C) within a three-mile radius of the interchange.

   2. (2) In marketing the major shopping area sign program, the contractor shall:

      1. (A) develop an inventory of potential eligible retail shopping malls;
      2. (B) submit this inventory to the department and, with department concurrence, determine which of the potential eligible retail shopping malls will require overhead or ground mounted signing (retail shopping malls that require overhead signing shall become the responsibility of the department, and the retail shopping mall shall reimburse the department for all costs for site plans, engineering, fabrication, erection, inspection, and maintenance of overhead signs and supports);
      3. (C) send letters explaining the program to potential eligible commercial establishments and retail shopping malls; and
      4. (D) advertise the specific information logo sign program in local papers and post notices at appropriate locations at the county seats.
3. (c) Market study and site plans. Prior to construction of a information logo sign at an approved location, the contractor must submit to the department a market study and site plan. For close proximity interchanges and multiple crossroad interchanges, the contractor shall submit a market study to the department for approval before development of the site plan. Upon approval of the site plan, the contractor may begin work at the location described.
4. (d) As-built plans. The contractor shall submit as-built plans to the department within 45 calendar days upon completion of the installation of information logo signs.
5. (e) Sign erection in first year. In the first year of the contract between the department and contractor, the contractor shall erect information logo signs and business logos at a minimum of 40% of the interchanges where participation agreements have been completed between the commercial establishments or the retail shopping mall and the contractor. Information logo signs and business logos shall be erected within two years of the execution date of an agreement between the commercial establishments or the retail shopping mall and the contractor pursuant to §25.407 of this title (relating to Program Operation).
6. (f) 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 information logo 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 contractors.
7. (g) Annual report. The contractor shall furnish an annual report to the department. The annual report will include the contractor's financial statement as provided in §25.403 of this title (relating to Prequalification), summary of eligible interchanges, business logos erected, major shopping area guide signs erected, and number of participation agreements completed. Other reports may also be required throughout the year as determined by the department.
8. (h) Meetings. The contractor is required to attend meetings with the department or department representatives at least once per calendar year at a date and location determined by the department to discuss program operation. The department may also require other meetings.
9. (i) Installation by contractor. Installation of information logo 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.
10. (j) Department review. Prior to installation, the design and location of information logo signs must be submitted to the department for review. The department shall inspect installation and monitor maintenance.

11. (k) Sign relocation or removal. If the department determines that additional regulatory, warning, or guide signing is needed at an interchange, existing or planned information logo 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 or eligible urban highway rights of way will create conditions where existing information logo signs will not be in compliance with Texas Civil Statutes, Article 4477-9a, or provisions of this title, the contractor shall:

    1. (1) remove the business logos and ramp business logos of the affected commercial establishments;
    2. (2) remove the information logo signs and ramp signs; and
    3. (3) reimburse advance rental fees paid by commercial establishments or retail shopping malls prorated as per the date of removal of the business logos or major shopping area guide signs.
12. (l) Sign maintenance. The information logo 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 commercial establishments or retail shopping malls, and to the satisfaction of the department.

13. (m) Fees.

    1. (1) Non-refundable fees. The contractor shall assess the following non-refundable fees and shall remit to the department an amount equal to 5.0% of all such fees no later than the seventh business day following the last day of the month such fees are received by the contractor.

       1. (A) Business logo installation fee. A one-time fee in the amount specified in the contractor's bid proposal under §25.404 of this title (relating to Contract Award Procedures) for the installation of the commercial establishment's business logo and, if necessary, ramp business logo.
       2. (B) Business logo annual rental fee. An annual fee for each business logo and for each ramp business logo (for ramp signs) in the respective amounts specified in the contractor's bid proposal under §25.404 of this title (relating to Contract Award Procedures).
       3. (C) Business logo covering fee. A total fee of $100 for covering a business logo and the ramp business logo and a total fee of $100 for uncovering a business logo and the ramp business logo pursuant to §25.407 of this title (relating to Program Operation).
       4. (D) Business logo replacement fee. A $100 fee for each business logo and ramp business logo replaced at the request of the commercial establishment.
       5. (E) Major shopping area guide sign annual rental fee. An annual fee for major shopping area sign and ramp sign in the respective amounts specified in the contractor's bid proposal under §25.404 of this title (relating to Contract Award Procedures).
       6. (F) Major shopping area guide sign installation fee. A one-time fee of $1,000 for initial installation of each major shopping area guide sign pursuant to §25.407 of this title (relating to Program Operation).
       7. (G) Major shopping area guide sign covering fee. A total fee of $500 for covering the major shopping area guide sign and the ramp sign and a total fee of $500 for uncovering the major shopping area guide signs and the ramp signs pursuant to §25.407 of this title (relating to Program Operation).

    2. (2) Reduced fees. The contractor shall reduce the annual rental fee a prorated amount for each calendar day when:

       1. (A) the business or ramp business logo(s), or the major shopping area guide sign has not been erected; or
       2. (B) a previously erected business, ramp business logo, or major shopping area guide sign is obscured from view of the motorists for a period of time exceeding ten consecutive calendar days.
    3. (3) 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 is covered at the request of the commercial establishment or retail shopping mall.
14. (n) Bonding. The contractor shall satisfy all requirements of Texas Civil Statutes, Article 5160, relating to bonds.
15. (o) Permits, licenses, and taxes. The contractor shall procure all permits and licenses; pay all charges, fees, and taxes; and give all notices necessary and incidental to the due and lawful prosecution of the work. When requested, the contractor shall furnish the department with evidence of compliance with the permit, license, and tax requirements.
16. (p) Records. The contractor shall, consistent with generally accepted accounting principles, maintain all books, documents, paper, advertising contracts, accounting records, and other evidence pertaining to the contract with the department and shall, upon request of the department, make available such documents, records, and information for examination by the department, its designee, or the State Auditor.

17. (q) Termination. The department or the contractor may terminate the contract upon default of the other party.

    1. (1) 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 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. (2) If the department terminates the contract for reasons other than default of the contractor, the contractor will be paid for a percentage of the fair market value, as established by the department, for each of the information logo signs erected. The percentages are as follows: elapsed time since sign installation: 0-1 year--90%; one-two years--75%; two-three years--50%; three-four years--25%; four years or greater--0%.
18. (r) 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 October 21, 1992, 17 TexReg 7106; amended to be effective October 27, 1995, 20 TexReg 8485.