KEY POINTS:
The cost of upgrading footpaths in Auckland City has soared 135 per cent in three years, from $121,200 per km to $285,000.
A Herald investigation has found council staff grossly underestimated the amount of vehicle crossing, kerb and channel work that needed to be done repairing the worst footpaths in 2006.
Another reason for the big increase has been a 27 per cent rise in footpath construction costs since 2006.
Two members of the executive team - transport general manager Dr Stephen Rainbow and arts, community and recreation general manager Dr Jill
McPherson - approved a report in 2006 now found to be riddled with errors and missing costs.
Dr Rainbow has since left the council. Dr McPherson is still a member of chief executive David Rankin's top brass.
Dr McPherson yesterday refused to answer questions about the report and what it meant for ratepayers' confidence in the council.
She did not return several calls and passed responsibility for her
decisions on to transport general manager, Don Munro, who had not joined
the council when the report was written.
The error-ridden report has appeared after Mr Banks' New Year message to councillors and senior staff telling them to "lift our game" as the economy goes deeper into recession.
The findings come as the popular footpath renewal programme faces a $39.5 million cut over the next decade from Mr Banks and Citizens & Ratepayers. The programme has been averaging 80km to 100km a year and the budget cuts will take it back to the lower end of that figure.
Transport chairman Ken Baguley yesterday said he had asked council staff
before Christmas for answers about the increased cost of footpath
renewals, but had not had any answers.
"I am seriously concerned how any project could go from an upgrade
costing $120,000 in 2006 and we come to the [2009] annual plan and it's $285,000 per kilometre," Mr Baguley said.
He has suggested moving from an exposed concrete finish to a coloured
brushed finish at lower cost to maintain 100km of new footpaths a year.
The investigation found that in 2006 council officers estimated 20 per cent of vehicle crossing would have to be replaced renewing the city's worst footpaths. As work progressed, 70 per cent needed replacing. It was the same story with kerb, channel and catchpits. Officers underestimated the work.
Officers also estimated the footpaths at a width of 1.8m. The norm has been 2.2m.
What's more, professional services, averaging 7.5 per cent of the cost, were left out of the 2006 report. It was written by strategic planning and design manager Simon Lough and traffic and roading services professional services manager Neill Forgie. The report was reviewed by
traffic and roading services manager Kelly Smith and approved by Dr McPherson and Dr Rainbow.
The report was used as the basis for the council to introduce a "consistent look and feel" of exposed black concrete. Officers used the 20 per cent figure of vehicle crossing replacements as an argument against continuing with red-chip footpaths in character suburbs. Red chip footpaths, they argued, would require more new crossings and be more expensive.
Mr Munro, who replaced Dr Rainbow, said he was confident ratepayers
received value for money for footpath renewals.
John Fillmore contractors had won a competitive tender to do the
work and its performance was monitored annually by an independent auditor, which had found continued improvement over the past four years. The footpath contracts would be put to another competitive tender
in July, he said.
Mr Munro said the 27 per cent increase in construction costs over the
past three years included higher material and labour costs built into a
contractual formula.
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Costs have risen from $121,200 per km in 2006 to $285,000 this year.
Reasons include:
70 per cent of vehicle crossings need to be replaced against 2006
estimate of 20 per cent.
Kerb and channel work has also been underestimated.
Officers estimated a 1.8m width in 2006. The norm is 2.2m.
Officers excluded professional costs from the 2006 report.
Construction costs have risen 27per cent in the interim.
