By Renee Worthing 

Staff Writer

   A recent announcement by Maine Department of Transportation (MDOT) that it is suspending paving operations is leaving many communities scrambling for quick fixes before winter.

  According to a document released Aug. 12 by MDOT, the price of liquid asphalt, the primary component of paving materials, has more than doubled since January. Liquid asphalt, which sold for $307.50 per ton in January, rose to $765 per ton as of Aug. 4. In July alone, one of the busiest months for paving in Maine, the price of liquid asphalt rose by 39 percent MDOT Public Information Officer Mark Latti said.

  Latti said MDOT budgeted $105 million for 825 miles of paving this year.

  “We already exceeded $107 million, but we can only complete 740 miles,” Latti said. “The rising prices drained the budget quicker than anyone imagined.”

  He said it was a difficult decision to suspend paving, but it was the “right thing to do.”

  He said the “unprecedented” prices are at an historic high, but he thinks they will fall, allowing the suspended projects to be placed on MDOT’s “to-do” list next year.

  “We know a lot of work was done designing these projects and many of them went out to bid,” he said. “But, these [high prices] are extraordinary circumstances.”

  However, delayed projects will vie for priority against projects already slated for next year, he said.

  Sanford Public Works Director Charlie Andreson said there are no paving projects in Sanford that will be affected by the announcement. 

  He said the roundabout on at the intersection of Route 4 and Route 109 is moving ahead. 

  “The bids went out two weeks ago and RJ Grondin and Sons is the apparent low bidder,” Andreson said. 

  He said the bid is still in the review process and would probably be awarded within the next month. 

  The paving and road widening on Route 109 in front of the new Lowe’s and Wal-Mart project is not affected either. Andreson said the roadwork was funded by the developer, KGI Properties, LLC.

   However, Biddeford Public Works Director Guy Casavant said nearly two miles of MDOT funded projects throughout the city will be affected.

  “It’s been aggravated by the fact that the town has already done the sewer prep work,” he said, adding the roads are “torn up.”

  Biddeford’s repaving projects include Alfred Street from Emmons Place to Dental Avenue, including the Graham and Alfred Street intersection and Pool Street from Lafayette Street to Clifford Park.

  Upon completion of the sewer drain work at both locations, MDOT was expected to repave the roads after removing and grinding the pavement, he said.

  Casavant said Biddeford used $700,000 of appropriated funds to complete the sewer drain work.

  “The money is not wasted, but we’re stuck with no money to resurface for the winter,” he said.

  The dilemma the city is facing is what to do with the nearly $200,000 of appropriated and dedicated matching funds for MDOT’s portion of the work.

  He said if the city uses the money to resurface the roads on its own, it may not have the money next year to match MDOT if the projects are placed on MDOT’s to-do list.

  Latti said each town would need to decide what to do with funds appropriated and designated as matching funds for MDOT projects.

  “The projects will remain in the work plan and towns won’t have to reapply,” he said.

  Casavant said he will meet with City Engineer Tom Milligan and City Manager John Bubier to decide how to spend the money.

  He said the city would not “take the approach of doing nothing.”

  “We’ll do as much as we can based on priority,” Casavant said. “I assume we’ll go to the finance committee and council to get their blessing to do temporary fixes with the understanding that we’ll have to request more money next year.”

  South Portland Public Works Director Dave Gaudet said South Portland does not have any paving projects that will be affected, but a road construction project on Payne Road in Scarborough may be delayed.

  According to MDOT, a nearly two mile stretch of Route 1 and a nearly three-quarter mile section of Payne Road in Scarborough will not receive $1 million for resurfacing.

  While some communities were depending on state funds to complete repaving projects, other communities like Kennebunkport also face delays because of skyrocketing liquid asphalt prices.

  “We had issues with the contractor (Pike Industries),” Kennebunk Town Manager Larry Mead said.

  He said the town recently received a letter from Pike Industries informing the town that the contract for $54.85 per ton of liquid asphalt the town signed in June could not be fulfilled.

  Pike Industries was awarded contracts for Kennebunkport’s repaving projects on Beachwood Avenue, Stone Road and Arundel Road. Mead said the town borrowed $1.6 million to grind down the roads and perform work on culverts, which has already begun.

  The town also appropriated $200,000 for road maintenance.

  Mead said the town and Pike Industries compromised on a price of $62 per ton of asphalt to complete 2,000 tons of minor repairs and maintenance on other roads.

  Mead said the higher price is $14,000 more than the original contract, but “still within budget.”

  He said prep work on three primary projects is underway, but the repaving will be delayed until next year.

  “I’m not happy with the turn of events,” Mead said. “But, the money is tied to this fiscal year.”

  He said he didn’t think the town could negotiate a better price during this “extraordinary spike in prices.”

  The town of Kennebunk also has a project under contract with Pike Industries. Brown Street is scheduled to be reconstructed from the Railroad Bridge to Mousam Ridge Road.

  “We are waiting for Pike [Industries] to let us know if they can accomplish this work during the current paving season,” Kennebunk Public Works Director Michael Claus wrote in an email. “Our contract with Pike does not have an asphalt escalator clause for work done in the current paving season, so the binder price increase MDOT is facing has not changed our budget projections. If Pike cannot complete the work on Brown Street and paving is re-bid next year we may have to adjust our budget based on prices in the spring, but we will not know that until Pike makes a decision on whether to continue paving under the current contract.”

  Pike Industries Regional Manager Johnathan Olson said the entire state is feeling the impact of high liquid asphalt prices.

    “It’s so unprecedented,” he said, adding $2 and $3 fluctuations in prices are normal. “Twenty and $30 [fluctuations] are not.”

   Olson said the asphalt industry has never had to deal with such high prices and said some repaving contracts with towns have to be renegotiated.

  “Some communities understand,” he said. “Most say they want to work with us. It’s a cooperative effort to share the pain.”

  While some towns are reducing the amount of asphalt they are putting down, other communities are protected by escalation clauses built into their contracts with Pike Industries.

  Claus said topcoat paving on Maguire Road was completed as well as reconstruction and base paving on Heath Road. The topcoat is planned for summer 2009.

  “We have completed reconstruction, base coat paving, curb, top coat paving, guardrail installation and drainage improvements on Durrell’s Bridge Road,” Claus said “Pike Industries accomplished the road reclaiming, grading and paving work.”

  “The extraordinary inflation of liquid asphalt has left us little choice but to suspend future paving projects,” MDOT Commissioner David Cole said in a press release. “We can not afford to continue with paving projects that are scheduled for later this year, nor would it be a wise use of funds to do so.”

  A total of $6.8 million worth of repaving on 16.27 miles was suspended. Another $1.9 million worth of paving on 6.03 miles is scheduled, but will not go out to bid until next spring after late fall and winter months when asphalt prices typically decline, Latti said.

   In addition, $4.8 million of maintenance surface treatment on 63 miles of Maine roads will also be suspended.