In our analysis of Norfolk County's financial woes we've discovered many things but the one that jumps off the page the most is the cost of Public Works. Everything in that department is so expensive and the work we've seen is substandard. Even the Managers make a killing and have been regulars on the Sunshine List and are exempt from accountability.
A budget to this Department is just a mere suggestion and Council has repeatedly be unable to reign in spending. This department run's itself and tells Council what to do and how to do it.
We've been asked by Citizen's to expand on our road report to compare costs of Winter Clearing and that report is forthcoming but we need to start at the top. Road salt. Norfolk County uses 18,000 tonnes of it each winter on average. Since the Road's Department was unable to fill out the MMAH FIR properly (or on purpose) they do not post how many road km's that they are responsible for. We'll take the data from previous years that was included to come up with what we think is correct. Norfolk County has 4130 total lane km's according to our calculations. We'll provide backup for our estimate in our next post.
Over the course of a winter, it's expected that 4.36 tonnes of road salt per each lane km is required. While we're not experts in the use of road salt, we are at pricing and Norfolk County pay's the 2nd highest price of our randomly selected 'google road salt tender results'. $4.16 more per tonne than Tillsonburg or a potential savings of $74,880 per year on 18,000k tonnes if T'Burg was doing our buying!
Staff recommends locking in for an extra 2 years on top of the already absorbent prices! Let us guess, someone over there is about to retire early and want's to lock in.
The 2014 Operating Budget has Road Salt in at a cost of $68/tonne for a total of $1,224,000. Then Staff twists around the math in an attempt to confuse Council by not using apples to apples as a comparison. They claim there will be a shortfall of $167,000 based on a tonne rate of $78.45 which includes HST.
Why include HST at this point? $68 + HST = $76.84. Hmmm. Why not just say $69.43/tonne if that's what it is? $69.43 + HST = $78.46. We suppose because that would not be telling the truth.
The previous tender document clearly states the price of bulk salt at $69.99 for 2011/2012 and $72.79 for 2012/2013. So why was the $68 even mentioned when it is clearly going to cost tax payers $72.79? According to our math the total for the budget ought to be $1,310,220 for a difference of $86,220. If you knew the actual why would you under estimate it in your budget? How did it even come to $167k?
Was this a hope for the best winter so you can balance your budget exercise? If you can't get your Road Salt budget to come inline to an actual what does the rest of your budget look like? We'll find out.
If any one can figure this one out please feel free to email us directly at norfolkvoice@gmail.com. Norfolk County Staff makes the Riddler look like our Math Teacher! Until then we'll go back to working on the Ramsey Theory. It may be easier to find the conditions under which order must appear. There's no order in Public Works in Norfolk County.
On a side note, it takes only one teaspoon of road salt to permanently pollute 5 gallons of water. Once in the water, there is no way to remove the chloride, and at high concentrations, chloride can harm fish and plant life. Less is more when it comes to applying road salt.
A question you may want to take from this post is how is this dangerous chemical affecting the Long Point World Biosphere Reserve? How sustainable is coating our roads with salt in an environmental sensitive area?
Has the Long Point Region Conservation Authority even thought about salt polluting the water? Are they not in charge of our watershed but could likely not answer the question of how much salt is pounded on Norfolk County's roads yearly and what affect is has?
Minnesota is taking steps in protecting their environment, are we?
2014 Road Salt Prices from awarded tenders (in Tonnes excluding HST):
Sault Ste Marie $94.14
Norfolk County $77.09
Town of Vaughan $74.13
Tillsonburg $72.93
Lanark County $70.55
Blue Mountains $68.60
County of Bruce $55.00
Norfolk County
K&S Windsor Salt
18,000 tonnes @
2013/2014 $74.24
2014/2015 $77.09
2015/2016 $79.29
The approved 2014 Levy Supported Operating Budget includes an allocation for the purchase of
18,000 tonnes of salt at $68 per tonne for a total budget in the amount of $1,224,000. Based on the
purchase of 18,000 tonnes of salt and the tender amount of $78.45 (net HST) per tonne an
annualized variance of approximately $167,000 may result for 2014. The actual impact will vary
based on weather conditions.
For 2015 and future budgets, taking into account the 2014 budget shortfall and the increased rate
from $78.45 to $80.69 per tonne an additional allocation of approximately $205,000 for the purchase
of 18,000 tonnes will need to be included.
Norfolk County will be guaranteed our allotted amount of required salt for 2 if not 4 years.
Town of Tillsonburg Open Council Meeting on
Monday September 24, 2012 06:00 PM
OPS12-14–2012-2015 Highway Coarse Bulk Salt;
FURTHER RESOLVE THAT the “Tender for the Supply of Highway Coarse Bulk Salt for the
2012-2015 season be awarded to Cargill Deicing Technology of Oshawa ON at a unit cost of
$65.65 per tonne for 2012/2013,
$69.06 per tonne -2013/2014 and
$72.93 per tonne - 2014/2015 season (HST included).
Town of the Blue Mountains
Sifto Canada Corporation for the winter of 2013/2014 at the
original cost of $68.60 per tonne for an
estimated total cost of $68,600 excluding HST.
1000 tonnes of salt @ $68.60/t
Town of Vaughan
30,000 tonnes @ $74.13 /t HST extra
Sifto Canada Corporation
Deadline: 28 June 2012, 4:00 pm
The County of Bruce and The Town of Saugeen Shores are soliciting tenders
for the provision of road salt for three (3) consecutive winter seasons.
Pick up and delivery will be arranged by the Customer.
Sifto Canada Corp $55/tonne
Lanark County
CONTRACT
#PW-M-28-2013-16-E2
SUPPLY AND DELIVERY OF BULK COARSE HIGHWAY ROAD SALT
(2013-2016)
Cargill Deicing Technology
Schedule A 7,000 tonnes @ $70.55/t
Schedule B 4,850 tonnes @ $70.55/t
City Of Sault Ste Marie
2014-2015 9,500 tonnes $94.14
2015-2016 9,500 t $95.54
2016-2017 9,500 t $96.99
Hst extra.
K&S Windsor Salt Ltd
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