At the July Council meeting, council deferred a decision on increasing the Cold Mix expenditure to the Public works meeting. At the Public Works meeting Administration brought further information regarding the additional costs as well as the revenues that will exceed budget expectations due to this project as well as other efforts by Public Works staff in relation to road use agreements, industry contribution to Murphy Road, etc. Council also discussed the opportunity cost of not using the oil committed by CNRL for industry roads in Division 1 and 2.
Public Works request is for an increase in Cold Mix expense of $800,000 - ($300,000 for Division 3,4,5 & 6 as well as $500,000 for Division 1 & 2) this increase will allow Public Works staff to more effectively apply dust control to the roads slated for work in the County. Even during the wet spring the County was able to complete work on the oiled roads utilizing cold mix rather than hauling wet gravel, drying it out, and applying oil (which was our process in the past). The additional cost for Division 3,4,5 & 6 will be utilizing the oil the County held in tanks from 2013 for the production of cold mix. The cost for Division 1 & 2 is utilizing oil that will be supplied by CNRL in order to repair designated industry roads.
Administration demonstrated that the expected increase in revenue over budget will be approx $814,000 due to extra sales of gravel and success in road use agreements and contributions to Murphy Road overlay.