Fuel prices have impact on road costs

Ever-increasing fuel prices were reflected Monday morning in the bids for the gravel that Red Willow County commissioners will use to cover 600 miles of county roads.

Three suppliers split the gravel bids awarded by commissioners during their weekly meeting.

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"It's real obvious," said a dejected commission chairman Earl McNutt, "that fuel prices have had an impact on our gravel prices."

McNutt admitted, "We expected quite an increase," and he and fellow commissioners Leigh Hoyt and Steve Downer sifted through bids that averaged about $1/ton higher than a year ago.

Commissioners will consider incorporating a "fuel escalator" formula into next year's bid process, eliminating or diminishing the guesswork involved in determining what will happen with fuel prices. The formula is based on the concept, "As fuel prices goes up, gravel prices go up."

The three gravel suppliers presenting bids were Hancock Gravel, which pumps gravel northwest of the former District 8 schoolhouse southwest of McCook; Paulsen's Inc., whose pit is located at Indianola; and EIA LLC, which pumps from pits south of the Perry elevator. Each firm's price-per-precinct generally reflects its pits' distance from the precinct to which they would have to haul gravel.

Paulsen's Inc. will provide gravel for the precincts of: Lebanon ($8.08 per ton), Beaver ($7.52), Danbury ($7.23), Tyrone ($7.45), Missouri Ridge ($7.02), Bondville ($6.90), East Valley ($7.02), Indianola ($6.65), North Valley ($7.10) and Alliance ($6.99).

Hancock will provide gravel for: Gerver ($6.80), Willow Grove ($5.67), Perry ($5.67) and Fritsch ($5.78).

EIA will provide gravel for: Grant ($5.88), Valley Grange ($6.98), Driftwood, ($4.88), Red Willow ($5.71), Box Elder ($6.40) and Coleman ($5.13).

These bids are for gravel delivered between July 1, 2008, and June 30, 2009.

As a comparison, Paulsen hauled gravel to Lebanon Precinct in 2007 at a cost of $7.13 per ton, compared to this year's bid of $8.08. In 2007, Hancock's bids for Willow Grove and Perry were each $4.97/ton; this year, those two bids are each $5.67/ton.

Red Willow County tax payers paid $196,674 for gravel in 2007-08, and were awarded $87,147 by the Federal Emergency Management Agency and Nebraska Emergency Management Agency to help repair roads damaged by winter and spring storms. In total, the county spent $283,821 on gravel last year.

This year, McNutt said, the proposed budget includes $250,000 for gravel paid for by tax payers, an increase he blamed largely on higher fuel prices. Commissioners are anticipating more FEMA and NEMA help with gravel for roads damaged by spring storms this year.

In other action:

Commissioners directed Roads Supervisor Gary Dicenta to conduct a study on a county road south of Indianola, (at the intersection of Roads 713 and 397), which property owner Phil Bamesberger is asking commissioners to abandon or vacate so he can build a pasture fence. Neighboring land owner Stan Quigley is opposed to the action, as he uses the road for access into a field. McNutt said that if the road is abandoned/vacated, Quigley's land will not be isolated as he can use another access route.

Dicenta must conclude the study within 30 days and report to commissioners.

Commissioners discussed proposed department budgets for 2008-09, noting that officials have requested more money for fuel, tires and travel expenses. The deadline for final budget requests is July 14.

McNutt attended a county officials' budget seminar conducted by the Nebraska Association of County Officials May 29 in Kearney. State Auditor Mike Foley attended the seminar.

Classes covered budget overview, budget forms, lid computations, financial cash flow, budget calendars, budget preparations and audits of financial information.