Asphalt Contractors Prepare For Fight

SEBRING - Population wise, Highlands County is a proverbial small fish in the big pond of Florida.
But it's making a big splash statewide with its decision to build the state's first government-owned and operated asphalt plant.

The project, scheduled to begin production in May, has reportedly set off a drive by the state's asphalt paving industry for a state law to stop this idea from spreading to other counties.
Meanwhile, county engineers and road superintendents from around the state are seeking information on the Highlands County project as a way to save road-paving dollars.

"From what I have heard, there is enormous interest ... in our asphalt plant," said Ken Wheeler, the county's solid waste director, who is spearheading the asphalt plant project. "Other counties have talked to us, directly and indirectly."

On Thursday, Wheeler was invited to explain the county's project on Nov. 15 at the Florida Association of County Engineers and Road Superintendents' annual conference in St. Augustine.

County commissioners from around the state are expected to attend Wheeler's presentation as well, according to Highlands County Engineer Ramon Gavarrete. The Florida Association of Counties will be meeting in St. Augustine at the same time.
"I have told him (Wheeler) to tune his presentation so that it's not geared just to engineers, because we also expect commissioners," Gavarrete said.

No state legislation has been introduced to ban counties or cities from operating asphalt plants. But, Gavarrete said Eric Poole, the assistant legislative director for the Florida Association of Counties, told him to expect that early next year, when the Legislature convenes in regular session.

"What they (asphalt contractors association) are trying to do is amend the Florida statutes so that Florida counties cannot do asphalt plants," Gavarrete said of information passed on to him by Poole last week.

"He (Poole) is also going to be at that FACERS meeting next month, and we're probably going to have a lot more discussion as to what the asphalt industry is trying to do," Gavarrete added.

Jim Warren, executive director of the Asphalt Contractors Association of Florida, could not be reached for comment on Thursday.

In August and September, Warren traveled twice from Tallahassee to Highlands County Commission meetings, arguing against the county building its own asphalt plant. He brought up two main objections: that government shouldn't take over what the private sector has been providing; and his claims that Wheeler's cost-saving estimates were unrealistic.

Wheeler said the county asphalt plant is scheduled to produce 26,000 tons in its first year of operation. He predicts a savings of about $425,000 below the price of the county's current paving contract, held by Better Roads, a Naples firm with an asphalt plant in Lake Placid.

While the county doesn't make a profit, Warren said in August, asphalt companies have a cost advantage by producing in large quantities.

"It doesn't make sense to our contractors that someone can produce it in such a small amount and have a lower production cost than we can," Warren said in August, before the county commissioners approved the asphalt plant in a 3-2 vote.

Wheeler said Thursday that actual cost savings could be nearly twice his estimates.
"We're looking at a potential reduction in materials costs that could be up to $10 per ton in further reduction of the cost," Wheeler said. That would be on top of the $12.65-per-ton savings he estimates now. The county may be able to use its own sand instead of buying it, and also could recycle glass and roof shingles for asphalt production, he said.

While there is no proposed legislation to stop counties and cities from operating asphalt plants, Wheeler said he's been asked to be prepared for a debate on such a proposal.

"I have been asked to be available to go up to some legislative review conferences in November and December to speak about the need to keep that option (government owned asphalt plants) open for the counties to pursue," he said.

Highlands County plans to resurface 25 of its 1,000 miles of paved roads this fiscal year. For proper maintenance, about 45 miles of roadway should be resurfaced each year, Wheeler said.

"The county has not been doing enough (resurfacing,)" Wheeler said. To solve that problem, he said, counties have only two options.

"One is raising taxes," Wheeler said. "The other is reducing your costs. What we're trying to do is reduce unit cost, to get more done for the taxpayers."