Lauderdale County supervisors are expected to move forward in preparing for spring projects on Monday as they consider approving annual term bids for common materials.

 

In a work session Thursday, Assistant Road Manager Ryan Mosley said the county opened bids two weeks ago and is ready to move forward with awarding the contracts. The county uses term bids, which are good for 12 months, for commonly used materials such as gravel, asphalt and pipes to both cut down on the cost of the material and speed up the purchasing process.

 

In reviewing the bids, the costs for corrugated metal and plastic pipes stayed roughly the same as last year, Mosley said, but costs for asphalt and aggregate have gone up significantly. Gravel, stone and rip rap – large rocks used to prevent erosion along creek beds or other waterways — have all risen roughly $3 per ton, he said.

 

“As you know, we need a lot of rock material,” he said.

 

While road crews have been using other materials such as steel slag and ground asphalt where possible, substitute materials aren’t always readily available or appropriate for the situation. In those cases, Mosley said, the county has no choice but to use gravel or stone as needed.

 

The county’s costs for both hot-mix and cold-mix asphalt have also risen with the new bids, he said.

 

The Board of Supervisors also heard from Mason Lee of JM Auctions on Thursday as county officials weigh the benefits of rolling over road department vehicles and equipment. Implementing a rollover schedule has been discussed several times by supervisors as they consider rising costs for equipment, long lead times and excessive maintenance costs on older machinery.

 

Rolling over equipment involves selling vehicles and machinery while the resale value is still high to maximize the benefit to the county and reduce the overall cost to taxpayers. Lee said his company can help the county understand what machinery will have the best resale value and when it is best to roll over pieces of equipment.

 

As an example Lee pointed to dump trucks purchased by the county in 2022 at a cost of $168,000 each. With costs higher than they were three years ago, he said those trucks, as they are now, would fetch about $170,000 each at auction.

 

That type of return is an anomaly as markets are still trying to settle following the COVID-19 pandemic, he said. Usually, he recommends to roll over equipment every one or two years.

 

One of the big advantages the county has in equipment purchases is its exemption from Federal Excise Taxes. All vehicles requiring a CDL license to operate are subject to a 12% Federal Excise Tax upon purchase, Lee said, but as a government entity, the county is exempt from paying it. That plays to the county’s favor as its costs are automatically 12% lower, making it easier to recoup its investment when it sells the machines.