Steel price increase puts new bump in road budget

Published 6:00 am Tuesday, March 2, 2004

Lincoln County’s means of maintaining its costly road systemwere stretched further Monday when supervisors were notified of alarge price increase in necessary supplies.

In a letter to the board Monday, Central Supply, Inc. ofHazlehurst notified supervisors that the county would have topurchase culverts and bridge pilings at a higher cost. The priceincrease is effective March 3.

Ellen James, vice president of the company, said it had”recently experienced a drastic price increase” in the cost of rawsteel. She cited a 30 percent rate increase from the steelsuppliers to the company.

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“These price increases are the largest we have experienced in 30years and are due to many factors beyond our control,” she said inthe letter. “Our current culvert bid is based on what raw steelcost before this large price increase. As a result, under ourcurrent bid, we would be selling our product for less than it coststo manufacture.”

The letter also states the company expects another increase inthe price of raw steel in April. That increase was expected to bearound 8 percent.

District Three Supervisor Nolan Earl Williamson was visiblyupset by the letter.

Williamson said the company raised its prices by 30 percent inJanuary 2003, and the bid accepted in December 2003 for the currentyear included another 18 percent hike. Now, scarcely two monthslater, the company has hiked its prices to the county by another 8percent, he said.

For instance, Williamson said, one of the most common sizes ofculvert used by the county is 15 inch, 16 gauge plain roundpipe.

Under the current contract, the price for that pipe was $4.85per foot. The new price is $5.29 per foot.

The price list supplied by Central Supply did not include bridgepilings, but the price on them is certain to climb also, hesaid.

“They’re about to go out of sight,” Williamson said. “We pay$17-18 a foot on them now. So with the increases, we may be lookingat $30 a foot.”

The supervisors discussed seeking ways to opt out of the bidcontract to seek lower costs elsewhere.

Board Attorney Bob Allen said it was possible that by increasingtheir prices, Central Supply may have provided the board with themeans to do so. However, he said he would have to look at thecontract.

The board also discussed how the increased costs would affectongoing or planned projects.

In other road matters, District One Supervisor the Rev. JerryWilson said after the meeting that the Parnell Bridge on BethelRoad was reopened to traffic.

The bridge was washed out during February’s hard rains and hadbeen closed until repairs could be made.

In other matters, the board closed a portion of West Lake Lanein the Hurricane Lake subdivision when no one appeared for an 11a.m. public hearing.

“There has been no protest,” Allen said.

The road closure was previously requested by Robert Watts, whoowns land on both sides of the closure.

West Lake Lane forms an L-shape in the subdivision, completing acircle within the bend of Hurricane Lake Road, according to Allen.Only the shorter leg of the L has other landowners, he said, andthey would not be affected by the closure of the longer leg.

“It’s really just a cutoff that runs through Mr. Watts’ propertyand wouldn’t serve as much of an inconvenience to the otherlandowners,” Allen said. “We’re not talking a great distancehere.”