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closeMonday, Dec. 08, 2008
High asphalt prices may mean fewer Franklin, Benton county road projects
By Joe Chapman, Herald staff writer
Franklin and Benton counties will launch into another round of road projects in 2009, but high asphalt costs and tightening budgets may mean fewer projects, well, down the road.
Franklin County could spend as much as $9.2 million on road projects in 2009, depending on availability of federal funding. In Benton County, four major road projects have been budgeted for about $6.8 million.
The cost of asphalt will be a major expense in all of the work planned and so far it hasn't dropped as fast as oil prices have.
"The contractors aren't seeing the drop in asphalt (prices) at the same ratio that we're seeing at the pump," said Tim Fife, public works director for Franklin County.
Public works officials from both counties were not encouraged by the outlook for asphalt prices when the state Department of Transportation opened bids two weeks ago on a project to reconfigure the interchange on the south end of the blue bridge.
The project, which could get under way in mid-February, will require 10,000 to 12,000 tons of asphalt, said Moe Davari, DOT's project engineer. The low bid of $11.5 million by KLB Construction Inc. of Mukilteo priced asphalt at $89 per ton.
By comparison, prices were about $45 a ton for a project bid at the beginning of the year that needed about 170 tons, Davari said.
The specific quantity for a project as well as the overall market affect the price on any given order, he said. Market prices for asphalt are staying high compared with gas prices because crude oil refiners are finding more profit in producing gas than in asphalt, Fife said. That's constrained the supply of asphalt, driving price up.
He worries that if the federal government passes an economic stimulus package for state and local governments, it could further drive prices up because it would keep demand for asphalt high.
Fife said he'll know if the market will be more favorable for the coming year when Franklin County opens bids for asphalt contracts next month.
The $9.2 million price tag for the county's 2009 projects includes the expectation of high asphalt prices. Original cost estimates from three or more years ago were inflated to reflect those prices, Fife said.
But the ability to do such projects is being squeezed not only by rising costs, but also by the 1 percent cap on property tax revenue increases for local jurisdictions statewide, he said.
"Everything's coming to a point of reckoning and some counties are already there," Fife said. "We've had enough growth here that we've been able to do better than a lot of other ones. But as soon as the growth stops ... it's all going to come to a head for everybody."
To get next year's projects done, Franklin County will use money that would have gone to future projects, he said. "We've had to borrow ahead. ... so what really looks bad is the future, not today."
The county may take cost-saving steps such as using cheaper liquid asphalt with rock shot for new road surfaces rather than hot-mix asphalt, he said.
Ross Dunfree, Benton County's public works director, painted a similar picture. The county isn't spending reserve funds to pay for road projects but it is running out of available money for them, he said.
"Our road program has diminished over the past couple years and it will continue to diminish," Dunfree said.
"At some point, we will get to a point ... where there just won't be any money left to finance capital projects" such as new roads, he said. Instead, all the money will go toward maintaining and operating existing roads, he said.
Franklin County's road projects in 2009 will include a variety of road extensions, paving projects and safety improvements first planned several years ago.
One will be to expand East Foster Wells Road about two miles to the Pasco-Kahlotus Road. Another will extend Road 100 north from Pasco's city boundary to the upper portion of Dent Road and to extend the lower portion of Dent eastward to meet with Road 100.
The county still is working with property owners to buy right of way for both projects, but Fife said he was optimistic the land would be acquired in time to get started on them next year.
Another project will be to upgrade five miles of Pasco-Kahlotus Road to all-weather standards. Five miles were upgraded a few years ago but the road will still have to be restricted for parts of the winter until all 30 miles are improved.
Another project that depends on availability of state or federal funding is rerouting of Road 170, forced by a 2006 landslide. Canal relocation, right of way acquisition, design and construction are expected to top $5 million, of which $3.3 million could be spent next year if money is available.
Next year, the county expects to pave more than six more miles of gravel roads, finishing a three-year project to improve 27 miles of gravel roads. The county also will spend $3.6 million on maintenance, including its routine overlay program.
Benton County, meanwhile, has put upgrading of gravel roads on hold. Although paving them would save the county money over the long run because it wouldn't have to spend as much time controlling dust and regrading the roads, money for the program simply isn't available, Dunfree said.
"We're no longer knocking on doors and saying, 'Would you like your gravel road upgraded?' " he said.
From 1985 to 2005, 80 miles of gravel road were paved in Benton County. But since then only a quarter-mile has been converted.
In 2009, Benton County has four main road projects scheduled, including building three road curves, building another section of Webber Canyon Road, installing guardrails on two bridges on Hess Road and adding arterial road capacity to Clodfelter and Locust Grove roads.
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