MOUNT DESERT — The town budgeted $410,000 this fiscal year to repave a total of 25,125 feet of Oak Hill Road and Indian Point Road.
But the low bid, submitted by Northeast Paving, was for $515,942.
“The price of pavement has shown a considerable increase over last year due to the cost of liquid asphalt, which is a major component of pavement, as well as the current labor shortage resulting in higher pay for those who are working,” Public Works Director Tony Smith said in a memo to Town Manager Durlin Lunt.
“Last year’s low bid price for pavement was $116.50 per ton. This year, Northeast Paving is at $137 per ton.”
Because of that, Smith recommended postponing the paving of Oak Point Road until next year and, instead, applying a 1-inch overlay on Farnham’s Way and Sidney’s Way, which are in the Ripples Hill neighborhood. The Select Board approved that recommendation last week.
The total cost of the modified contract is $392,031. That leaves a balance of $17,969 in this year’s paving budget, which the Select Board authorized Smith to use at his discretion “in the best interests of the town.”
Smith said Northeast Paving is expected to start the road work July 25.
“They estimate they can complete the work in seven working days. Traffic control on Farnham’s Way and Sydney’s Way should not be an issue because traffic is light in those two locations.
“Indian Point Road has a heavier traffic volume, but Northeast Paving is confident in their abilities to successfully manage it using flaggers throughout the active construction area,” Smith said.
Northeast Paving, formerly Lane Construction, is a division of Eurovia Atlantic Coast, which is a subsidiary of what Smith said is “a gigantic company…its main office is in the Czech Republic.”