$1m savings predicted if supercity goes ahead

The move towards a supercity will see ratepayers reap savings reaching $1 million annually under a new scheme for maintaining North Shore’s road network.

The approach to bundle all road maintenance and renewal activities into a single contract was approved at this month’s meeting of the infrastructure and environment committee.

North Shore City Council transport infrastructure group manager Alan Wallace says the need for a
citywide road maintenance contract comes with the changes in Auckland governance.

He says the new scheme will be consistent with the procurement approach being planned by the transition agency overseeing the amalgamation of Auckland into a supercity.

There are at least six contracts covering road maintenance and renewals, citywide road marking, commercial area cleaning and maintenance of busway stations valued at more than $25m a year.

The contract for streetlight maintenance, which is valued at $800,000 annually, will not be covered by the master contract and will remain as a stand-alone.

Mr Wallace says savings are initially pegged at $750,000 or 3 percent of the annual contract value.

But cost savings will be considerably bigger reaching $1m, with prices returning to levels of three to four years ago.

The bundled contract will be for three years with an annual extension of two further years to give the new supecity council the option to terminate the contract if it sees fit.

Councillor Chris Darby says this is a good move because bundling of contracts leads to service and cost efficiencies.

- © Fairfax NZ News