KEY POINTS:
Auckland City Mayor John Banks says the council's system of footpath renewal contracts is flawed and will change.
He was responding to a Herald investigation that found the cost of upgrading footpaths has soared 135 per cent in three years, from $121,200 per km to $285,000.
The investigation found a 2006 report riddled with errors and missing costs after staff grossly underestimated the amount of vehicle crossings, kerb and channel work. The report was also missing professional service costs.
Another reason for the big increase has been a 27 per cent rise in footpath construction costs since 2006.
Mr Banks said the footpath contracts were flawed, there was not enough openness and accountability, it was limited to one provider - John Fillmore contractors - was not contestable enough and would change.
One contractor told the Herald he found it hard to believe that footpath construction costs had risen 27 per cent in three years.
The contractor, who did not want to be named because he did work for the council, said the cost of aggregate concrete used for the renewals had gone up over three years from about $200 a cubic metre to $225. The costs excluded GST.
Labour and other costs had risen by about 12 per cent over the period, he said.
The latest cost of $285,000 per kilometre seemed "rather loaded up", the contractor said.
Transport general manager Don Munro was confident ratepayers received value for money for footpath renewals.
The performance of John Fillmore contractors was monitored annually by an independent auditor, which had found continued improvements over the past four years.
The footpath contracts would be put to a competitive tender in July, he said.
Mr Banks said in the tough economic conditions he expected contractors to deliver more services for less money in keeping with the reality of the marketplace and the pain being suffered by ratepayers.
It is understood Mr Banks gave arts, community and recreation general manager Dr Jill McPherson a dressing down yesterday for not speaking to the Herald on Monday about her role in the 2006 footpath report.
Mr Banks is also understood to have flayed chief executive David Rankin for constantly having to pick up after council staff.
After her dressing down, Dr McPherson spoke to the Herald, but refused to discuss the "private" meeting she and Mr Rankin had in Mr Banks' office.
Dr McPherson, who with then transport general manager Stephen Rainbow approved the 2006 report, said her role was limited to aesthetic and design issues.
She refused to discuss the cost issue because it was a transport issue and the responsibility of transport general manager Don Munro. He had not joined the council when the report was written.
However, the council veteran, who has worked her way up the grades over nearly 20 years to an executive role believed to pay $325,000, was adamant the "report was not riddled with errors and missing costs".
