Cost of asphalt rising

Get ready for some bumpy roads ahead.

The soaring cost of petroleum -- a primary ingredient of asphalt -- has forced many communities to shoulder a 50 percent increase in costs as crews head out to repave roads this summer. Asphalt sticker shock is creating heartburn for legions of highway chiefs, prompting many to significantly curtail the number of roads they intend to repair this season.

And the going may get even tougher. Two major asphalt suppliers for the region are warning of another 50 percent increase by Thanksgiving -- in addition to potential shortages. The news comes as public works crews in some areas hard hit by last month's record flooding are still patching sinkholes and replacing washed-out roadway shoulders. Communities are hoping federal emergency funds will cover most of those repairs.

``When we were building our budget a year ago, my paving program received a significant reduction because of needs in other places," said Bob Gravino, Ipswich's director of public works. ``Now, not only is the cost of materials going up, but the money I have is going down."

Ipswich's new asphalt contract, signed in April, jumped 44 percent in cost from a year ago. That, Gravino said, means Ipswich will repave only four of the nine roads it planned to tackle this summer, and then perhaps seal cracks in the other five until the town can afford to complete those projects.

``If you let a road degrade, it's just like when you let your house go until it's ready to fall down," Gravino said. ``It's going to cost you more to rebuild it."

In Danvers, the highway chief has plotted a temporary detour around his city's sky-high asphalt costs. Danvers is facing a jump from $34 to $52 a ton for the material on July 1. So Don DeHart, Danvers director of public works, received permission from Town Meeting to start immediately using town funds before the $545,000 in state road improvement money arrives sometime after July 1. DeHart said officials at the state Highway Department have signed off on the plan. Communities receive so-called Chapter 90 funds from the state specifically for major road improvement and construction projects.

``We will be paving like heck until July 1 with our $34 a ton," DeHart said. ``We usually pave in late August, but now we are going to try and get all that done before June 30."

Bob Andersson, a vice president and general manager at Aggregate Industries in Saugus, called the run-up in asphalt prices unprecedented in the 20 years he has been in the business. He also said his company, for the first time, may seek escalation clauses as it renews contracts with communities, allowing Aggregate to charge an additional amount above the contractual price if costs rise too dramatically.

``There is no guarantee for where [the price] is going to go," said Andersson, whose company supplies liquid asphalt to dozens of communities in Eastern Massachusetts.

Andersson said Aggregate buys its liquid asphalt, which is primarily made of petroleum, from major oil companies, and those companies have warned of another 50 percent price increase by late November. ``They have also indicated to us that there is no guarantee you will have the supply you need to run your business," he said.

Brox Industries, a Dracut-based, family-owned company that supplies asphalt along the North Shore and in Southern New Hampshire, stands to suffer hefty losses. Brox signed a contract about 18 months ago with one community that locks Brox into supplying asphalt to that community at 2005 prices through 2007, said Michael Reilly, Brox's marketing division manager, who declined to name the community.

``We're facing major financial negatives on that one contract," Reilly said. ``You could potentially go broke. That's how bad it is."

Given the grim asphalt news pouring in from surrounding towns, Newburyport's highway boss knows that bad news is likely at his doorstep. The city's three-year contract with Brox expired in May, and bids for a new contract will likely be opened later this month.

``Brox has been very good to us," said Anthony Furnari, deputy director of the city's Public Services Department. ``The way the prices are headed now, we are going to try a two- or three- year contract and see what they say."

State officials also are dealing with escalating asphalt prices, but a spokesman for the state Highway Department said the agency is closely monitoring the issue during its competitive bidding process and does not anticipate delays in major road projects.

``Even though costs for items such as asphalt may be going up, we are able to keep our projects moving," said Jon Carlisle of the state Highway Department.

Lynn's commissioner of public works, Jay Fink, said there likely will need to be a sea change in the way communities maintain their roadways, given the forecast for paving prices. Fink said that utility companies are increasingly and repeatedly tearing up roads to repair or replace electric, cable, water, sewer, or phone lines. Often the streets aren't adequately patched afterward.

``It's going to be up to the cities or towns to make sure that when the utilities cut open the street, that the utilities repair and put the street back in such a condition that it will last the longevity of the roadway," Fink said.

Lynn recently signed a paving contract with prices increasing 49 percent, a jump that means the city will likely repair about 40 percent fewer roads this year with its $932,227 in state highway improvement funds, Fink said.

``The condition of the roadways is going to continue to deteriorate or we'll need to get more money out of the state to try and keep the same level of service. But sooner or later, something's got to give," Fink said. ``The emphasis is going to be, `How can we make what we have last?'"

Kay Lazar can be reached at klazar@globe.com.