Resolution No. 11-05A

WHEREAS, the level of fees that RMs receive for the transportation of gravel on their roads is small; and

WHEREAS, road deterioration is becoming an increasingly obvious result of large trucks hauling heavy loads; and

WHEREAS, RMs are underpaid for intensive hauls by aggregate companies, in relation to the increased cost of road maintenance;

THEREFORE BE IT RESOLVED, that Rural Municipalities be given the authority to set their own fee structure for the intensive haul of gravel and other commodities.

Response from Honourable Len Taylor, Minister of Government Relations:

The maximum rates for haul road maintenance agreements were last revised in 1999, following consultations with SARM, the Rural Municipal Administrators Association (RMAA), the Department of Highways and Transportation (DHT), the road construction industry, the oil industry, the forestry industry and the trucking industry. At that time, the following changes were made:

– The winter haul period defined in the regulations was changed to November 15 of one year to March 15 of the next year. This extended the winter haul period by two weeks in the fall and two weeks in the spring.
– The maximum rate for incremental maintenance resulting from bulk hauls was increased by 12% to 1.57 cents per tonne-kilometre.
– The maximum rate for loss of service life of roads was increased by 16.5% to 1.34 cents per tonne-kilometre.
– Authority was added for municipalities to waive the minimum haul rate of $60 per kilometer.

As you are aware, Government Relations (GR) is currently working towards re-introducing The Municipalities Act during the spring 2005 session of the Legislature to come into effect on January 1, 2006. Following this upcoming legislative change, GR will be considering the necessary regulatory changes, including changes to The Road Maintenance and Restoration Agreement Regulations. During the review of this regulations, SARM and other stakeholders will be consulted.