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Councillors reviewing price for gravel sales

Councillors are trying to level the playing field for gravel sales in Mountain View County.

Councillors are trying to level the playing field for gravel sales in Mountain View County.Responding to concerns from some members of council that the county was undercutting local pit operators by offering gravel at a cheaper rate, administration presented a list of comparative prices at last Wednesday's policies and priorities budget meeting.The list showed the county was selling three-quarter-inch gravel at the lowest rate ñ $7.08 per metric tonne ñ followed by Sundre Contracting ($7.65), Rick Martin ($8.75), Hoogenboom ($9.20), Richardson Bros. ($9.50), Pidherney's ($10.50) and Cremona Rock ($12.96).For three-inch gravel, Sundre Contracting came in lowest at $6.85 per metric tonne, followed by the county ($7.08), Rick Martin ($7.75), Hoogenboom ($8.20), Cremona Rock ($8.40), Richardson Bros. ($9) and Pidherney's (9.75).Div. 6 Coun. Paddy Munro, who had argued at previous meetings that the county should not be in competition with private industry and should get out of gravel sales, said Wednesday he was willing to modify that position.ìIf we come up with a price where we're not subsidizing farmers out east, because gravel is more expensive there Ö then I could support it,î he said.Staff confirmed that the nearest pit to the east side of the county, in Beiseker, was charging about $12 per metric tonne.ìThe service is valued (but) we're definitely undercharging,î Div. 1 Coun. Kevin Good said. ìI believe there should be an east-pit-west-pit price. I would be in support of raising our price to the average west price and then having an east price Ö based on what gravel is worth out there. To have ratepayers in the west subsidizing people in the east doesn't make sense to me.îGood suggested $9 for the west side and $11 for the east side.Councillors considered using Highway 2 as the dividing line, but Div. 7 Coun. Al Kemmere sounded a note of caution.ìWhen we look at Highway 2, politically it looks bad ñ because none of us live east of Highway 2,î Kemmere said. ìI suggest we look at a different arbitrary line because it looks a little self-serving.îStaff suggested basing prices on the different county pits, and councillors agreed that would be a better approach.ìThat would be good,î Kemmere said, ìbecause people could decide which pit to haul from.îThe item will be brought back to council with more information.The county sells between $100,000 and $150,000 a year in gravel to residents on a break-even basis, corporate services director Greg Wiens said. The county's internal cost is estimated at $6.50 per metric tonne.

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