This paragraph provides the procedures for apportionment of costs of bridge alterations, as established by the U.S. Coast Guard (reference Sec. 277.3(c)) and adapted for use in Corps planning and construction programs. A sample apportionment of the cost of a hypothetical bridge alteration is provided in Appendix B.
(a) Calculate the total estimated cost of bridge alteration. The total estimated cost, to be apportioned by these procedures, includes the cost of all necessary appurtenances required to complete the alteration for use by both highway and railway traffic, including engineering, design and inspection.
(b) Determine the salvage value of bridge to be altered. The salvage value represents the worth of the materials in the old bridge which may be used for scrap or for other purposes. The value will vary depending on the intended use of the materials.
(c) Determine direct and special benefits--(1) Removing old bridge. The bridge owner shall pay a share of the removal cost computed as that part of the removal cost that the used service life bears to the total estimated service life. The share of the bridge owner, thus computed, represents an obligation incurred by the owner now by reason of the needs of navigation which otherwise would not have to be met until the bridge had reached the end of its useful life. Accordingly, the present worth of the amount is computed deferred over the unexpired life. The discount rate to be used in the present worth computation is that established by the Water Resources Council, current at the time of the study.
(1) Removing old bridge. The bridge owner shall pay a share of the removal cost computed as that part of the removal cost that the used service life bears to the total estimated service life. The share of the bridge owner, thus computed, represents an obligation incurred by the owner now by reason of the needs of navigation which otherwise would not have to be met until the bridge had reached the end of its useful life. Accordingly, the present worth of the amount is computed deferred over the unexpired life. The discount rate to be used in the present worth computation is that established by the Water Resources Council, current at the time of the study.
(2) Fixed charges. A fixed charge such as engineering, design, and inspection costs, realtor and counsel fees, and the bridge owner's administrative expenses is an undistributed cost, shared in the ratio that each party shares in the cost of construction less fixed charges. In computing the bridge owner's share of the fixed charges, all other financial liabilities assigned to the bridge owner shall be included in the computation.
(3) Contribution. If a third party should be involved in a bridge alteration project, such as a party which might benefit from some reasonable modification beyond the needs of navigation and the needs and desires of the bridge owner, that party would be responsible for the incremental costs of such further modification, and such costs would not enter into the apportionment between the bridge owner and the Federal Government.
(4) Betterments. Items desired by the bridge owner, but which have no counterpart in the old bridge or are of higher quality than similar items in the old bridge, will be included under this heading. Items considered to fall within this category are listed below. It is intended this list serve as a guide to indicate the types of items that may be considered betterments. The cost of such items will be borne by the bridge owner.
(i) Access roads.
(ii) Concrete or stone finish of embankment slopes instead of seeding.
(iii) Water proofing and skid-resistant epoxy finish of masonry surfaces.
(iv) Steel or concrete spans instead of timber trestle.
(v) Ballasted deck instead of open deck.
(vi) Trainman's walkways and sidewalks.
(vii) Elevators costing more than stairways.
(viii) Materials of greater thickness or heavier weight than supported by design requirements.
(ix) Exotic materials for machinery and operator's house, including tinted and insulated windows.
(x) Heaters and insulation in the machinery house.
(xi) Operator's house furnishings, air-conditioners, water coolers, and medicine cabinets.
(xii) Hydraulic jacks for counterweight support.
(xiii) Fourth coat of paint, and exotic paint systems.
(xiv) Brass pipe and high alloy steel conduits.
(xv) Floodlights and metallic vapor arc lights.
(xvi) Spare parts.
(xvii) Lubricants and lubrication equipment, and tools in excess of minimum requirements.
(d) Determine expectable savings in repair or maintenance costs. (1) The provisions of any features that would reduce annual maintenance costs of the altered bridge, such as a wider navigation span eliminating the requirement for protection works, reducing the overall length of the bridge by fill in lieu of a trestle, or replacing two bridges with one bridge, will be included under this heading. The bridge owner should bear the increased annual maintenance cost that will accrue as a result of providing any increased loading and width desired by the bridge owner or attributable to the requirements of railway or highway traffic. Since 33 U.S.C. 516 does not mention bridge operating costs, any increase or decrease in such costs shall not be included in the cost of alteration to be apportioned. The bridge owner's obligation is computed by capitalizing the estimated annual savings at the same rate of interest used in Sec. 277.8(e)(1).
(1) The provisions of any features that would reduce annual maintenance costs of the altered bridge, such as a wider navigation span eliminating the requirement for protection works, reducing the overall length of the bridge by fill in lieu of a trestle, or replacing two bridges with one bridge, will be included under this heading. The bridge owner should bear the increased annual maintenance cost that will accrue as a result of providing any increased loading and width desired by the bridge owner or attributable to the requirements of railway or highway traffic. Since 33 U.S.C. 516 does not mention bridge operating costs, any increase or decrease in such costs shall not be included in the cost of alteration to be apportioned. The bridge owner's obligation is computed by capitalizing the estimated annual savings at the same rate of interest used in Sec. 277.8(e)(1).
(2) Expectable savings in repair costs is that amount which the bridge owner will not have to pay to restore his bridge, which may be in a damaged condition or may be dilapidated, since the bridge is being altered or removed as a part of the contemplated navigation improvement.
(e) Estimate costs attributable to requirements of railway and highway traffic. Items desired by the bridge owner to meet the requirements of railway and highway traffic, but which have no counterpart in the old bridge, will be included under this heading. Items considered to fall within this category are listed below. This list does not contain all such items, but it is intended to serve as a guide in determining which items might fall within this category.
(1) Increased navigational clearances for the benefit of land traffic.
(2) Wider roadbed.
(3) Additional traffic lanes or track.
(4) Medians and wider traffic lanes.
(5) Increased train clearances and spacing of tracks.
(6) Larger cross and bridge ties.
(7) New and heavier rail and expansion joint devices.
(8) Additional signaling and communications systems.
(9) Additional right-of-way.
(f) Estimate expenditure for increased carrying capacity. The bridge owner is required to pay the difference in cost between a bridge meeting the navigation clearance requirements with the same live loading capacity as the old bridge and new or altered bridge having any increased live loading capacity desired. The cost of increased live loading capacity will be based on the estimated cost of the new or altered bridge with unit prices applied to the quantity of materials estimated for a hypothetical bridge with the same live loading as the old bridge, but with the increased clearances required by the navigation improvement. The live loading of the new or altered bridge should be compared with the live loading of the old bridge, based on normal working stresses without overstress, overload, or reduction of safety factor.
(g) Determine value of expired service life of old bridge. (1) Section 6 of the Act provides, among other things, that the bridge owner shall bear such proportion of the actual capital cost of the old bridge or such part of the old bridge as may be altered or rebuilt, as the used service life of the whole or a part bears to the total estimated service life of the whole or such part. Guide service life figures have been obtained from retirement curves based on mortality statistics, which represent an attempt to consider economic causes of retirement in addition to physical causes.
(1) Section 6 of the Act provides, among other things, that the bridge owner shall bear such proportion of the actual capital cost of the old bridge or such part of the old bridge as may be altered or rebuilt, as the used service life of the whole or a part bears to the total estimated service life of the whole or such part. Guide service life figures have been obtained from retirement curves based on mortality statistics, which represent an attempt to consider economic causes of retirement in addition to physical causes.
(2) For railroad bridges service life, figures of 100 years for substructure, 70 years for superstructure, 37 years for treated timber, 35 years for automatic signals, 20 years for main rail, 30 years for siding rail, and 20 years for crossties and bridge ties are considered to be reasonable and will be used in computing the bridge owner's liability. The service life of the operator's house and machinery house, including machinery, is considered to expire with the removal of the superstructure. For timber structures which have been in existence for more than 50 percent of their estimated service life, the expired service life is held usually at 50 percent providing the structure has been adequately maintained and is in a good state of repair.
(3) The service life of highway bridges, except for certain long span bridges, is usually limited by obsolescence as well as structural deficiency and deterioration. Obsolescence may be due to insufficent capacity for heavier loads and greater volume of traffic than the bridge was originally designed for, safety requirements, and location. Superstructures and pile bents are considered to have a service life of 50 years. Masonry substructure which could be reused in the renovation of a bridge is considered to have a service life of 100 years.
(4) The foregoing service life figures are not to be used arbitrarily, but as a basis for a fair judgment of the service life considering all other factors that pertain in any particular case. Sec. Appendix A to Part 277--Sec. 6, Pub. L. 647, as Amended (33 U.S.C.
516)
At the time the Secretary* shall authorize the bridge owner to proceed with the project, as provided in Section 515 of this title, and after an opportunity to the bridge owner to be heard thereon, the Secretary shall determine and issue an order specifying the proportionate shares of the total cost of the project to be borne by the United States and by the bridge owner. Such apportionment shall be made on the following basis: The bridge owner shall bear such part of the cost as is attributable to the direct and special benefits which will accrue to the bridge owner as a result of the alteration, including the expectable savings in repair or maintenance costs; and that part of the cost attributable to the requirements of traffic by railroad or highway, or both, including any expenditure for increased carrying capacity of the bridge, and including such proportion of the actual capital cost of the old bridge or of such part of the old bridge as may be altered or changed or rebuilt, as the used service life of the whole or a part, as the case may be, bears to the total estimated service life of the whole or such part. Provided, that in the event the alteration or relocation of any bridge may be desirable for the reason that the bridge unreasonably obstructs navigation, but also for some other reason, the Secretary may require equitable contribution from any interested person, firm, association, corporation, municipality, county, or State desiring such alteration or relocation for such other reason, as a condition precedent to the making of an order for such alteration or relocation. The United States shall bear the balance of the costs, including that part attributable to the necessities of navigation: and provided further, that where the bridge owner proceeds with the alteration on a successive partial bid basis the Secretary is authorized to issue an order of apportionment of cost for the entire alteration based on the accepted bid for the first part of the alteration and an estimate of cost for the remainder of the work. The Secretary is authorized to revise the order of apportionment of cost, to the extent he deems reasonable and proper to meet any changed conditions.---------------------------------------------------------------------------
*Secretary of Transportation. (June 21, 1940, ch. 409, Section 6, 54 Stat. 499; July 16, 1952, ch. 889, Section 2, 66 Stat. 733; Aug. 14, 1958, Public Law 85-640, Section 1(c), 72 Stat. 595.)
Sec. Appendix B to Part 277--Hypothetical Example of Cost Apportionment
Following is the interpretation of the principles as applied to the alteration of a hypothetical highway--railroad bridge across Blank River between City A and City B.
Reference table
1. Total estimated cost of alteration $10,917,300 A
project.
The existing double deck swing span will be replaced with a new double deck lift span affording a horizontal navigation opening of 250 feet clear width between piers normal to the navigation channel and a vertical clearance of 125 feet above mean high water in the raised position. 2. Salvage............................ $77,300
This value is deducted from the original cost to determine the actual capital cost (Table VII). It is also deducted from the Total Estimated Cost of Alteration Project to determine the cost to be apportioned. 3. Direct and special benefits:
a. Removing old bridge (owner's $165,489 I
share).
b. Fixed charges (owner's share).... 284,460 II
A fixed charge such as engineering, design and inspection costs, realtor's and counsel's fees, and bridge owner's administrative expenses is an undistributed cost shared in the ratio that each party shares the cost of construction less fixed charges. In computing the bridge owner's share of the fixed charges, all other financial liabilities assigned to the bridge owner shall be included in the computation. (Table II).
c. Contribution by third party...... $432,000
Section 6 of the Act provides that in the event the alteration or relocation of any bridge may be desirable for the reason that the bridge unreasonably obstructs navigation, but also for some other reason, the Secretary may require equitable contribution from any interested person, firm, association, corporation, municipality, county, or State desiring such alteration or relocation for such other reason, as a condition precedent to the making of an order for such alteration or relocation. In the instant case, testimony at the hearing developed that the bridge would require alteration because of the navigation project but also City A desires to relieve traffic on a nearby secondary road by providing access to the new bridge. It is considered that as an equitable contribution, City A should contribute an amount equal to one half of the expectable road user benefit accruing over the next 10 years. Other methods for determining the third party's contribution are acceptable depending on the circumstances.
d. Betterments...................... $18,360 III4. Expectable savings in repair or ............ IV
maintenance costs.
Repair.............................. $100,000
Maintenance......................... 16,288
The new bridge is designed for increased loading and width greater than that of the old bridge. Therefore, the estimated annual maintenance cost was based on a hypothetical bridge designed, but not constructed, for the same loading and width as the old bridge but with increased clearances as required to meet the needs of waterborne navigation, and not on the estimated annual maintenance cost of the new bridge. The savings in repair costs represents a savings to the bridge owner who will not have to restore the bridge that was recently damaged since it is being altered as a part of a proposed navigation improvement. 5. Costs attributable to requirements $1,534,000 V
of railway and highway traffic.
The old bridge carries a highway deck on the upper level consisting of a roadway 18 feet wide (no sidewalks) and a railway deck on the lower level with 110-lb. rails. The new bridge will carry a highway deck on the upper level consisting of one 28-foot roadway and two 5-foot sidewalks, and the railway deck will have new 130-lb. rails. In addition, the railway deck will be paved to carry highway traffic. Thus, the bridge may be kept in an intermediate raised position when not being used by railway traffic to pass small-boat traffic without delaying highway traffic. City A also desires to provide additional highway approaches and right-of-way to connect a nearby secondary road with the new bridge. 6. Expenditure for increased carrying $2,330,000 VI
capacity.
The highway deck of the old bridge was designed for a live loading equivalent to AASHO H15-44 and the railway deck for live loading of Cooper E 45. The highway deck of the new bridge will be designed for live loading AASHO HS20-44, and the railway deck will be designed for live loading of Cooper E 60. Accordingly, the bridge owner will pay the additional cost for the increased carrying capacity of the new bridge. 7. Expired service life of old bridge. $511,300 VII
The structure of the old bridge was completed in 1908 and the superstructure completed in 1909. For this hypothetical example it was assumed the bridge would be replaced in 1970.
8. The following is an explanation of the procedure for determining the tabulation of proportionate shares of costs to be borne by the United States and the bridge owner presented in Table B.
(1) Cost of alteration to be apportioned is the total estimated cost of the project (excluding contingencies) less salvage value (Sec. 277.8(b)), less contribution by third party, if applicable (Sec. 277.8c(3)).
(2) Share to be borne by the bridge owner is the sum of the direct and special benefits (Sec. 277.8(c)) expectable savings in repair or maintenane costs (paragraph 8d), costs attributable to requirements of railway and highway traffic (Sec. 277.8(e)), expenditure for increased carrying capacity (Sec. 277.8(f)) and expired service life of old bridge (Sec. 277.8(g))
(3) Share to be borne by the United States is the difference between the cost of alteration to be apportioned and the share to be borne by the bridge owner.
(4) The exact amount of costs to be borne by the bridge owner will be determined upon completion of the project.
(5) Contingencies may be included in the total shares to be borne by both the United States and the bridge owner.
Tables A. Summary of Estimated Project Costs.B. Tabulation of Proportionate Shares of Cost To Be Borne by the United
States and the Bridge Owner.I. Bridge Owner's Share of Removing Old Bridge.II. Fixed Charges To Be Paid by Bridge Owner.III. Betterments.IV. Expectable Savings in Repair or Maintenance Costs.V. Costs Attributable to Requirements of Railway and Highway Traffic.VI. Expenditure for Increased Carrying Capacity.VII. Value of Expired Service Life of Old Bridge.
Table A--Summary of Estimated Project Costs------------------------------------------------------------------------
Fixed
No. and item Cost charges Total------------------------------------------------------------------------1 New bridge..................... $8,104,052 $570,000 $8,674,0522 Removal of old bridge.......... 521,908 500 522,4083 Approaches..................... 50,000 5,000 55,0004 Additional highway approaches.. 1,530,000 15,000 1,545,0005 Railroad force account work.... 41,800 3,500 45,3006 Additional signaling........... 27,000 2,400 29,4007 Right-of-way................... 13,240 900 14,1408 Additional right-of-way........ 30,900 1,100 32,000
--------------------------------------
Total........................... 10,318,900 598,400 10,917,300
======================================
Total estimated cost of project. ........... ........... 10,917,300
======================================
Less salvage................... ........... ........... -77,300
Less contribution by third ........... ........... -432,000
party.........................
--------------------------------------
Total cost of alteration to be ........... ........... 10,408,000
apportioned.....................Less right-of-way (Items 7 and 8) ........... ........... -46.140
--------------------------------------
Total Cost of construction...... ........... ........... 10,361,860------------------------------------------------------------------------
Table B--Tabulation of Proportionate Shares of Costs To Be Borne by the
United States and the Bridge OwnerTotal estimated cost of project (excluding contingencies) $10,917,300
(table A).................................................
Less salvage............................................. 77,300
Less contribution by third party......................... 432,000
--------------
Total cost of alteration to be apportioned................ 10,408,000
==============Share to be borne by the bridge owner:
Direct and special benefits:
Removing old bridge....................... $165,489
Fixed charges............................. 284,460
Betterments............................... 18,360
Expectable savings in repair or maintenance
costs:
a. Repair................................. 100,000
b. Maintenance............................ 16,288
Costs attributable to requirements of 1,534,000
railway and highway traffic................
Expenditure for increased carrying capacity. 2,330,000
Expired service life of old bridge.......... 511,300
-------------
Total..................................................... 4,959,897
==============Share to be borne by the United States..................... 5,449,103
Contingencies 15 pct..................................... 817,365
--------------
Total..................................................... 6,266,468
==============Share to be borne by the bridge owner...................... 4,959,897
Contingencies 15 pct..................................... 743,985
--------------
Total..................................................... 5,703,882
Note: The exact amount to be borne by the bridge owner will be
determined after completion of the project.
Table I--Bridge Owner's Share of Removing Old Bridge--------------------------------------------------------------------------------------------------------------------------------------------------------
Age at time Owner's Owner's Present Owner's
Item to be removed of removal share Removal share of Years worth present
(1) percent--(2) cost--(3) removal--(4) remaining--(5) factor--(6) liability--(7)--------------------------------------------------------------------------------------------------------------------------------------------------------Substructure.......................................... 62 62 $241,935 $150,000 38 .1639 $24,585Protection Works...................................... 37 67 60,000 40,200 18 .4245 17,065Superstructure........................................ 61 87 206,896 180,000 9 .6516 117,288Signaling............................................. 61 100 440 440 0 1.0 440Ties and Timber....................................... 20 67 6,000 4,000 10 .6213 2,485Rail and Accessories:
Rail, 110 lb........................................ 33 100 1,000 1,000 0 1.0 1,000
Rail, 110 lb........................................ 13 65 5,637 3,664 .............. ........... 2,626
-------------------------------------------------------------------------------------------------
Total................................................ ............ ............ 521,908 368,104 .............. ........... 165,489--------------------------------------------------------------------------------------------------------------------------------------------------------Present Worth Factor based on 4\7/8\%, FY 1970, as established by Water Resources Council. The actual factor to be used shall be that current at the
time of alteration.
Table II--Fixed Charges To Be Paid by Bridge OwnerCost of construction...................................... $10,361,860Less fixed charges........................................ 598,400
-------------
Total.................................................... 9,763,460
=============Owner's share less fixed charges:
Removing old bridge..................................... 165,489
Betterments............................................. 18,360
Expectable savings in repair or maintenance costs:
a. Repair............................................. 100,000
b. Maintenance........................................ 16,288
Costs attributable to requirements of railway and 1,503,100
highway traffic (less right-of-way)....................
Expenditure for increased carrying capacity............. 2,330,000
Expired service life of old bridge...................... 511,300
-------------
Total.................................................... 4,644,537
=============Fixed charges by owner.................................... 284,460
4,644,537x598,400=284,460--------------------9,763,460
Table III--BettermentsNew furniture and water cooler in control house............ $1,050Increased cost of elevators over stairways................. 13,360Increased cost of galvanized steel grating walkways over 3,950
timber walkways...........................................
------------
Total..................................................... 18,360
Table IV--Expectable Savings in Repair or Maintenance Costs
Repair Cost
Cost in 1970 to repair damaged bridge...................... $100,000
------------Savings in repair costs.................................... 100,000
============
Maintenance Cost
Average annual maintenance cost for old bridge............. 16,875Estimated annual maintenance cost for new bridge........... 16,000
------------
Total decrease in annual maintenance costs................ 875
============Annual savings capitalized (50 years) @ 4\7/8\%:875/0.05372 16,288
Present worth factor based on 4\7/8\ pct., F.Y. 1970, as established by
Water Resources Council. The actual factor to be used shall be that
current at the time of the study.
Table V--Costs Attributable to Requirements of Railway and Highway
TrafficHeavier running rail (130 lb in lieu of 110 lb)............ $11,200Paving, lower deck......................................... 34,900Additional signaling....................................... 27,000Additional highway approaches.............................. 1,430,000
------------
Subtotal.................................................. 1,503,100Additional right-of-way.................................... 30,900
------------
Total..................................................... 1,534,000
Table VI--Expenditure for Increased Carrying CapacityCost of new bridge designed for Cooper E 60 and AASHO HS20- $8,609,592
44 loading \1\............................................Cost of replacement-in-kind (hypothetical) bridge designed 6,279,592
for Cooper E 45 and AASHO H15-44 loading \1\..............
------------
Total..................................................... 2,330,000
\1\ Excludes all items in Table III and first two items in Table V.
Table VII--Value of Expired Service Life of Old Bridge
[Replacement year--1970]--------------------------------------------------------------------------------------------------------------------------------------------------------
Expired service life
------------------------- Value of
Year Original Salvage Actual Estimated Percent expired
(1) cost--(2) value--(3) capital cost service Years 1970- of total service life
(2)-(3)--(4) life--(5) (1)--(6) (6) (5)-- (4)x(7)--(8)
(7)--------------------------------------------------------------------------------------------------------------------------------------------------------Substructure:
Pivot Pier......................................... 1908 $34,500 $0 $34,500 100 62 62 $21,390
Right End Pier..................................... 1908 18,580 0 18,580 100 62 62 11,520
Left End Pier...................................... 1908 21,410 0 21,410 100 62 62 13,274
Right Abutment..................................... 1908 8,600 0 8,600 100 62 62 5,332
Left Abutment...................................... 1908 11,410 0 11,410 100 62 62 7,074Protection Works:
Pivot Pier......................................... 1909 5,800 0 5,800 37 61 \1\ 50 2,900
Right End Pier..................................... 1942 3,200 0 3,200 37 28 \1\ 50 1,600Superstructure:
Swing Span......................................... 1909 168,920 19,400 149,520 70 61 87 130,082
Electrification.................................... 1957 5,000 500 4,500 22 13 59 2,655
Left Approach Spans................................ 1909 142,017 16,300 125,717 70 61 87 109,374
Right Approach Spans............................... 1909 156,692 19,300 137,392 70 61 87 119,531Signaling............................................ 1909 15,000 1,000 14,000 35 61 100 14,000
Ties and Timber.................................... 1909 8,120 0 8,120 20 61 \1\ 50 4,060Rail and Accessories:
Rail, 110 lb....................................... 1937 6,600 2,200 4,400 20 33 100 4,400
Rail, 110 lb....................................... 1957 43,679 18,600 25,079 20 13 65 16,301Roadway Approaches: \2\
Pavement........................................... 1908 17,841 0 17,841 20 62 \1\ 50 8,921
New Lane........................................... 1961 43,609 0 43,609 20 9 45 19,624
--------------------------------------------------------------------------------------------------
Subtotal............................................ .......... ......... 77,300 633,678 ......... ............. ........ 492,038Engineering.......................................... .......... 24,695 0 24,695 ......... ............. \3\ 78 19,262
--------------------------------------------------------------------------------------------------
Total............................................... .......... ......... 77,300 ............ ......... ............. ........ 511.300--------------------------------------------------------------------------------------------------------------------------------------------------------\1\ Held at 50% if maintained in good condition.\2\ Roadway approaches to be abandoned.\3\ Weighted average 100 x492, 038/633, 678=78%.
Explanation of Columns for Table VII:
Column (1): Year Built is the original date that an item to be removed became a part of the bridge or the last known date that it was replaced. The
items to be removed should be broken down to show as much detail as possible, particularly where there is a variation in the year built and/or the
estimated service life.Column (2): Original cost shall be supported by records furnished by bridge owner. Engineering cost should be estimated if unknown.Column (3): Salvage--refer to Sec. 277.8(b).Column (4): Actual capital cost is the original cost of the item to be removed minus the salvage value.Column (5): Estimated Service Life--refer to Sec. 277.8(g).Column (6) & (7): Expired Service Life--refer to Sec. 277.8(g).Column (8): Value of expired service life is the actual capital cost of the item to be removed multiplied by the percent of expired service life.