SUNDRE – Inflation was largely behind a cost overrun that increased the price tag of new spray patch equipment for the town’s roads department by a little more than $10,000
Although the expense had just recently been approved by council this past December when the 2024 budget was approved with the intent to provide a higher level of service to the community, it had previously been factored into the municipality’s long-term capital plan at a cost of $165,000.
Linda Nelson, the town's chief administrative officer (CAO), informed council during a recent meeting that the quote for the spray patch equipment ended up coming in at $175,691, or $10,691 over budget.
As per the municipality’s policies, while the chief administrative officer has the authority to approve capital adjustments that do not exceed $100,000 when prudent to do so, council must also be notified within a reasonable timeframe.
“It’s been a long time coming. We’ve been looking for it, and I think we found the right machine so let’s go for it,” said Coun. Connie Anderson after moving the recommended action to support the CAO’s approval of the budget adjustment with the additional amount to be drawn from a restricted surplus account.
Coun. Jaime Marr asked if any other options might have been considered in light of the increased cost and whether the spray patch equipment was still considered the right machine for the task at hand.
“The recommendation actually came from the roads staff, who will be utilizing the spray patch equipment,” said Nelson.
Mayor Richard Warnock asked if there was an explanation for the increased cost.
“Is this because of the year of the model, or is this because of the cost of producing it?” the mayor asked.
“It really comes down to inflation,” said Nelson, adding that about a year had elapsed from the time when the item was initially discussed during the 2023 spring workshop.
“When we went forward to purchase the equipment, by that time close to a year had past so there was an increase in cost,” she said.
Warnock also inquired when the equipment was expected to arrive.
Jim Hall, the town's operations manager, said the order was at the time of council’s meeting in the process of being placed. He added the equipment was expected to be delivered and ready for use either by May or June.
“We’ve already developed a system off of our snow removal map so we can let residents know what” areas of town the municipality’s road staff will be working in, said Hall.
Council unanimously carried Anderson’s motion.
“The equipment will be used on roads to repair potholes, cracks, damages,” Hall told the Albertan.
“As opposed to putting in material such as cold mix that doesn’t last very long, the spray patch will be a permanent repair of the area,” he elaborated.
“Long stretches of residential streets will be able to be patched, maintained and corrected until such a time that the capital project is scheduled to complete any underground and surface repairs or alterations.”
