(a) In order to qualify for funding, roadway conditions for overlays must be:

1. (1) Fair;
2. (2) Fair to poor; or
3. (3) Poor.

(b)

1. (1) Construction funding for overlay projects will be capped at four hundred thousand dollars ($400,000).

2. (2) If bids exceed the cap, then the city must:

   1. (A) Agree to pay the overage amount; or
   2. (B) Scale back the project.

(c)

1. (1) Projects requiring design work will be granted preliminary approval but not considered for construction funding until the engineering has been completed.
2. (2) For these projects, a five hundred thousand dollar ($500,000) cap will apply for construction funding and a one-hundred-sixty-thousand-dollar cap will apply for engineering costs (the total cost of engineering design and inspection).
3. (3) The city will be responsible to pay any overage of the engineering costs and/or construction costs.

(d)

1. (1) As part of the chair’s day-to-day operations, the State Aid Street Committee has authorized the chair to concur in the routine award of construction contracts administered by the Arkansas Department of Transportation and, for both the contract award and during construction, approve construction funding increases of more than ten percent (10%) over a project’s initial approved amount not to exceed the maximum capped amount for the type of project.
2. (2) At the request of any committee member, a special meeting will be held to approve the funding increases and/or concur in the contract awards.
3. (3) When requesting concurrence in award and/or approval for funding increases, the state aid engineer will email the request to the chair and copy the committee members.
4. (4) After the construction contracts are awarded, the projects’ approved amounts will be adjusted to match the appropriate share of the award amount.