CHAPTER 178
PROJECT COST REPORTING REQUIREMENTS
FOR CITIES AND COUNTIES
761—178.1(314) Purpose. The purpose of these rules is to establish requirements for the reporting by cities and counties of project cost information to the department, in accordance with Iowa Code section 314.1A.
[ARC 2425C, IAB 3/2/16, effective 4/6/16]
761—178.2(314) Contact information. Questions regarding this chapter may be directed to the Office of Local Systems, Iowa Department of Transportation, 800 Lincoln Way, Ames, Iowa 50010.
761—178.3(314) Definitions.
“City” means a municipal corporation as defined in Iowa Code section 312.8 or 362.2.
“Construction” means the building or development of a road, street, bridge or culvert in a new location when:
	1.	The new location deviates substantially from the existing alignment, and
	2.	The result is an entirely new road or street for the greater part of the length of the project.
“Day labor” means road, street, bridge or culvert work performed by permanent or temporary city or county employees.
“Improvement” means a betterment to a road, street, bridge or culvert. The work increases the value of the facility and enhances the facility, its traffic operations or its safety beyond the original design. The work would not be so extensive as to be classified as construction or reconstruction, but it could involve rehabilitation, restoration or resurfacing (3R) work.
“Reconstruction” means a significant change to the existing type of road, street, bridge or culvert or its geometric or structural features. Some realignment and the use of current design criteria may be involved.
“Repair or maintenance” means the preservation of a road, street, bridge or culvert so that it is in sound or proper condition. The work may include minor replacements and additions necessary to restore the road, street, bridge or culvert to its originally built condition with essentially the same design.
[ARC 2425C, IAB 3/2/16, effective 4/6/16]
761—178.4(314) Detailed instructions furnished to cities and counties.
	178.4(1) Each year the department shall provide to cities and counties a set of detailed instructions for reporting the following information:
	a. 	The cost of day labor and contracts for construction, reconstruction, and improvement projects on the farm-to-market, secondary road and municipal street systems.
	b. 	The cost of purchasing, leasing, and renting construction and maintenance equipment.
	c. 	The use of this equipment for construction, reconstruction, and improvement projects on the farm-to-market, secondary road and municipal street systems.
	178.4(2) These instructions constitute the form, content and method of preparation acceptable to the department. Cities and counties shall include this information in the annual reports they submit to the department under Iowa Code sections 309.22 and 312.14.
[ARC 2425C, IAB 3/2/16, effective 4/6/16]
761—178.5(314) Project reporting. Reporting under Iowa Code section 314.1A of projects accomplished by day labor or contract is required for any construction, reconstruction or improvement project that has a total cost of 90 percent or more of the applicable bid threshold. Other reporting requirements set out in the Iowa Code still apply.
	178.5(1) Types of projects. Project type shall be identified. The project types are:
	a. 	Bridge. The definition of “bridge” in Iowa Code section 309.1 applies. This project type includes removal of existing structures and all new construction, reconstruction and improvement of bridges.
	b. 	Culvert. The definition of “culvert” in Iowa Code section 309.1 applies. This project type includes new construction or installation of an individual box or pipe culvert with a span or diameter that is greater than four feet but no greater than 20 feet.
	c. 	Roadway construction. This project type includes, but is not limited to, all types of excavation, overhaul, clearing and grubbing, removal of pavement, and culverts included with grading.
	d. 	Surfaces. This type includes, but is not limited to:
	(1)	Hot mix asphalt and Portland cement concrete pavements and overlays on roads, streets and shoulders.
	(2)	Stabilized bases and granular surfacing on new grades.
	e. 	Roadside construction. This project type includes, but is not limited to:
	(1)	Erosion control structures such as check dams and letdown structures.
	(2)	Landscape treatments such as seedbed preparation, seeding, sodding, mulching, fertilizing, and planting of shrubs and trees on newly graded roads.
	(3)	Construction of shoulders on paved roads and rebuilding or raising entrances due to shoulder construction.
	f. 	Traffic control. This project type includes, but is not limited to, installation of major signs, traffic signals, railroad crossing signals, guardrail, roadway lighting, construction signing, and pavement markings on newly paved roads and streets.
	g. 	Miscellaneous. This project type includes, but is not limited to, construction, reconstruction, or installation of storm sewers, subdrains, retaining walls, noise barriers, and sidewalks.
	178.5(2) Contract work. The cost of contract work on a project is the contract price plus additions and deductions.
	178.5(3) Day labor. The cost of day labor on a project shall include the following expenditures:
	a. 	Labor. Labor cost includes the wages of city or county employees for their time devoted to the project, plus corresponding fringe benefits such as, but not limited to, IPERS, FICA and insurance.
	b. 	Equipment. Equipment cost is calculated based on the equipment used on the project and the time the equipment is used. If an item of equipment is rented or leased, its rental or lease rate may be used to calculate cost. If an item of equipment is not leased, its cost shall be calculated using the standard rate established by the department for that type of equipment. The department shall establish equipment rates each year based on the latest “Rental Rate Blue Book for Construction Equipment.”
	c. 	Materials. Materials cost is the cost of materials and supplies consumed or expended on the project. The materials and supplies may be procured directly for the project or charged to the project from stock on hand. The cost of used material is its salvage value.
	d. 	Overhead. Overhead cost is the pro-rata share of indirect costs to be allocated to day labor projects. Indirect costs are the city’s or county’s road- or street-related costs that cannot be charged directly to any project. The city or county may use its records to calculate the cost of overhead, or it may use a standard overhead rate of 10 percent of the labor cost excluding fringe benefits.
[ARC 2425C, IAB 3/2/16, effective 4/6/16]
These rules are intended to implement Iowa Code sections 309.22, 309.93, 312.14, 314.1, and 314.1A.
[Filed 2/15/02, Notice 12/26/01—published 3/20/02, effective 7/1/02]
[Filed ARC 2425C (Notice ARC 2319C, IAB 12/23/15), IAB 3/2/16, effective 4/6/16]