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Business Plan

The road surface requires resurfacing. The continuous usage of the road over time has caused its decomposition. The decomposition has caused the road to be become hazardous with regards to the expedient movement of traffic. In the majority of municipalities, the roadway system which is composed consists of the total number of roadways which are in the jurisdiction of the municipalities. The maintenance of the large non state roadways is delineated as being one of the most significant funding liabilities which can be endeavored by a municipal government.

In many municipalities, the roadway system has decomposed to point where the funds which are required for maintenance and repair surpass the funds which are available in the municipal budget.

Considering the fact that state of the art technology is accessible for the maintenance and the resurfacing of the local roadway system, a number of municipalities continue to produce their MR & R budget (reconstruction, rehabilitation and maintenance) budgets by applying outdated technological perspectives. Consequently, the regional agencies will produce a MR & R budget by applying the following approaches:

  1. Using the previous year’s MR&R budget.
  2. Repairing the roads temporarily as required.
  3. Applying a standard program which is composed of an overlay every ten or fifteen years (Li & Zheng- qi 4922).

The option for the road overlay which is proposed is the following: Option A which has an initial cost of $500,000 and requires an annual maintenance expense of $35,000. Option A would require resurfacing every ten years. The estimated resurfacing cost for Option A is $350,000. Option B is a road overlay which has a cost of $700,000 and requires an annual maintenance budget of $25,000. The periodic resurfacing for Option B would occur every fifteen years and the resurfacing cost would be $450,000. Option A and Option B are capitalized at 12% interest.

The ultimate step in selecting the resurfacing option which will be applied is the category of traffic which will be applied to the road and the category of road which will be proven to ebb the most cost avoidant. This challenge must be perceived distinctly for the different categories of roads. The main factors which should be taken into account in the construction of road surfaces are the expenses which are associated with the reconstruction and the expenses which are associated with the continual maintenance.  The expense which is incurred by the municipality and the road users in the time spent deflecting traffic from the road is another consideration. Option b would require periodic resurfacing at a longer interval than option a. This aspect would include inherent savings over time. This aspect enables Option B to be the more effective option for resurfacing the road surface (Long 11).

The total cost for the resurfacing Option A is $860,825 over a ten year period at a 12% interest rate. The total cost of Option B would be $1,512,211.76 over the 15 year period of time at a 12% interest rate . Option B would require resurfacing every fifteen years. Option A would require resurfacing every ten years. The annual maintenance costs for Option B are $10,000 less than Option A. Consequently, Option B would be the more effective long term solution. As a taxpayer, I request that both options for road resurfacing be reviewed. The aspect of safely using the road during all of the seasons is required by the residents of the municipality.

Works Cited

Li, Cal-Xia & Zhang Zheng- qi. “Discussion on the overlay of asphalt pavement maintenance.” 2011 International Conference on Electric Technology and Civil Engineering (ICETCE), Lushan 22- 24 April 2011, 4921- 4924. 10.1109/ICETSE.2011.5776465

Long, Joe L. The Road Maker, 12.3(1918): 11.

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