60-2-204. Maintenance agreements with local governments. Except as provided in 60-2-203, the department may enter into an agreement with a local governing body to maintain portions of public highways within its boundaries upon terms and conditions as may be agreed upon. However, in the case of highways in the state maintenance system as referred to in 60-2-128 and 60-2-203:

(1) the department shall bear the entire cost of maintenance, operation, and construction work performed by the local governing body pursuant to these agreements; and

(2) the department is responsible for the entire cost of placement and maintenance of all traffic control devices involved in these agreements required by 61-8-203.