(Photo by Shelby Herbert/KFSK)
Petersburg’s Borough Assembly decided at its December 4th meeting to trade a construction company surplus rock for permission to move a road at a local quarry. The deal could give the Borough better access to rock it owns and brings costs down for the new hospital project.
Petersburg Medical Center CEO Phil Hofstetter, who is overseeing the project, said the move would help the hospital save on construction costs.
“It would cut some costs from our side,” said Hofstetter. “I think it would lower the total cost for the project, that’s my understanding.”
The Borough Assembly unanimously approved the trade with Rock-N-Road Construction, at its regular meeting on Monday.
The quarry is located by the airport. Its ownership is divided between the Borough, State of Alaska, the Alaska Mental Health Trust Authority, and Reid Brothers Construction Company.
For close to a decade, the Borough hasn’t been able to access more rock in its section of the quarry. That’s because they’ve depleted all of the most easily accessible rock, and have almost dug the quarry walls into the nearby muskeg.
The Borough wants to access more rock further into the quarry floor. But in order to reach it, they have to lower an access road leading into that part of the quarry. And that’s an expensive modification costing about $100,000, which would have to come out of the Borough’s general fund. So, for years, the Borough has had to buy rock from other parties — instead of using its own supply.
Rock-N-Road Construction Inc. requested that the Borough allow them to move the road, in exchange for the 600,000 cubic yards of rock they’ll have to remove from the site. Then that rock could be used at a project site Rock-N-Road is currently working on – the town’s new hospital. There, the rock would be repurposed as building material.
Ambre Burrell with Rock-N-Road said having those materials on hand could save them up to $300,000 in construction costs. The company is subcontracted by Dawson Construction to help build the new hospital. By using borough stone, Rock-N-Road doesn’t have to dig into their own material. They would also save on transportation costs, with the airport quarry being closer to the site of the hospital project than where they usually source the material.
Public Works Director Chris Cotta said it’s a trade worth making. He wrote that the expansion has been a long time coming, and this is money the general fund would not have to spend in order to develop the Borough’s quarry. Assembly Member Jeigh Stanton Gregor said it’s a quid pro quo for local government and private enterprise.
“I think this could really turn into a win-win for both the Borough and Rock-N-Road,” said Stanton Gregor. “I like opportunities where private business and local government can work together, and this seems like one of those good opportunities.”
The Borough is set to enter into negotiations with Rock-N-Road on the quarry development project. Petersburg Medical Center will also meet with Dawson Construction, its main contractor, to adjust construction costs on the new hospital.
