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Road and Bridge asks to continue mag chloride use despite price increase; recommends US Bank for graders financing
Summary
Road and Bridge said mag chloride (MagCl) supplier prices rose from $0.97 to $1.15 per gallon and asked permission to proceed with same 2024 road stabilization program with a possible $48,185.50 overrun; staff recommended US Bank financing for three motor graders based on a lower 7-year rate.
Grand County Road and Bridge staff updated commissioners March 18 about two operational items: a supplier-driven price rise for mag chloride used in road stabilization, and recommended financing terms for three new motor graders.
Road and Bridge reported that GMCO (recently acquired by EnviroTech) will continue supplying the county’s preferred Integra Blend but at a higher price. Staff said they budgeted a 10¢/gallon increase but received an 18¢/gallon increase; at last year’s volumes that change raises the 2025 mag chloride cost to $693,185.50 versus a budgeted $645,000, or a potential $48,185.50 over budget in the road-stabilization line. Staff requested direction to proceed with the same roads as 2024, accept the supplier change and manage budget impacts during the year; commissioners directed staff to proceed and acknowledged that a supplemental appropriation might be required at year end.
Road and Bridge also presented two equipment-financing quotes for three motor graders: Centennial National Finance Group at 4.49% and US Bank at 4.309% (7-year term). Staff recommended US Bank; commissioners supported that recommendation and directed staff to proceed with the lower-cost financing, noting the difference amounted to roughly $49,732.76 in total interest over seven years.
Ending: Road and Bridge will proceed with MagCl application on the same roads as 2024 while managing budget impacts and will pursue US Bank financing for three graders.
