Point of Privilege Resolution No. 2-03A

WHEREAS, the gravel extraction fees and road maintenance agreement rates have not been adjusted for some time and increased costs have been borne by the RM ratepayers; and

WHEREAS, the Department of Highways have increased the gravel permit fee to municipalities effective January 15, 2003;

THEREFORE BE IT RESOLVED, that SARM request the Government of Saskatchewan adjust gravel extraction and road maintenance agreement rates to reflect today’s costs.

Response from the Honourable Ron Osika, Minister of Government Relations:

ROAD MAINTENANCE RATES
The maximum rates for haul road maintenance agreements were last revised in 1999, following consultations with SARM, RMAA, 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¢ per tonne-kilometre.
-The maximum rate for loss of service life of roads was increased by 16.5% to 1.34¢ per tonne-kilometre. Authority was added for municipalities to waive the minimum haul rate of $60 per kilometre.

Further to your request, GRAA will undertake during the 2003-04 fiscal year to review The Road Maintenance and Restoration Agreement Regulations as it pertains to the fees associated with haul road maintenance agreements. SARM and other stakeholders will be consulted during this review.

GRAVEL EXTRACTION FEES
The licensing of gravel extraction is a discretionary power of municipalities under subsection 213 (1) (c) of The Rural Municipality Act, 1989; however, the fees are regulated by the province to ensure consistency and reasonableness in the amount of fees levied across the province. The Gravel Extraction fees were last updated by the Department in 1986. Further to your request, GRAA will undertake to review the fees associated with the licensing of gravel extraction during the 2003-04 fiscal year. SARM, RMAA and other stakeholders will be consulted during this review.