‘Fingers crossed’ for next year to be better, says Tiny adviser on increasing asphalt cement price adjustment
Times are tough at the pumps for everyone.
The small council agreed to complete the 2022 paving projects using approximately $70,000 from infrastructure reserves; the choice was preferred to the cancellation of a project to pay for the others.
Director of Public Works Tim Leitch presented the staff report to council at a recent committee of the whole.
“One thing that we track every year is our asphalt cement (AC); it’s the binder in our hot mix asphalt,” Leitch explained.
“Obviously this is a petroleum-based product, and I think we can all see every day when we put the nozzle in our tanks that fuel prices have gone up dramatically.”
The municipality relied on statistics provided by the Ministry of Transportation of Ontario (MTO) Air Conditioning Price Index, which submitted the 2022 paving tender in January when the price of the air conditioning was $917.50. In the staff report, the average price of a ton of air conditioner for April 2022 was $1,156 — 35% higher than April 2021 — with even higher prices expected to come from supply and demand. demand during the summer months.
Staff anticipated that when the township paving takes place in June and July, the air conditioner price would be approximately $1,250 per ton with a calculated overage of an additional $138,000 for the tendered contractor, resulting in a shortfall. earning budget of about $70,000. It is for this reason that staff approached the Board for guidance.
“We provided two options to the board,” Leitch said. “One would be to cancel a particular project (paving Winterset Avenue at around $64,000) and use that revenue to offset other capital costs that we’re going to absorb with the CA; and the second option would be to start from the infrastructure reserves to continue this project.
Com. Cindy Hastings summed up that luck could play a role in lower oil costs, but that was an unlikely scenario.
“I think it’s important that we continue with our capital projects that we have planned within reason, and keep our fingers crossed that next year will be a little better,” Hastings said.
Council was in favor of using the infrastructure reserve and passed the motion.
Information on the 2022 Asphalt Price Adjustment Staff Report can be viewed on the agenda page located on the Tiny Township website.
Archives of council meetings can be viewed on the Tiny Township YouTube channel.