Fuel prices impacting repaving projects in Jasper

Jasper Street Superintendent Raymie Eckerle notified the Board of Public Works that due to the rising price of fuel, asphalt prices have increased considerably over the bid the city accepted in November of 2011.

Eckerle stated the increase is within the parameters set by an “adjustment clause” in the bid and is within the context of the formula the city uses to determine pricing on asphalt.

The asphalt is sold as a base (a rockier mixture) and surface (the smoother top layer) and the city accepted bids in November of 2011 for the asphalt. For patching material the original bid on base material was $54.00 per ton and it increased to $59.72, while surface was $59.00 per ton and increased to $66.46. For paving material the base was $50.00 per ton and increased to $59.52, surface material went from $58.00 per ton to $71.13.

The cost includes delivery, rolling, paving and labor and Eckerle stated the Street Department usually budgets $1.3 million for repaving and repair projects.

“Whenever we have increases like this we cut a project to compensate,” Eckerle said. “That’s why we do it in phases. We have four or five phases of paving and typically the last phase has projects in it where if we have to cut, we’ll cut from the final phase.”

Eckerle also stated since the price of asphalt is dependent upon gas and diesel prices it could drop back down.