Budget Review for East Coast Road improvements

May 1, 2009

With the costs of roading projects increasing dramatically over recent years North Shore City Council has taken an important step to ensure that realistic budgets are set as part of developing the City Plan. Costs can then be updated as more accurate information becomes available during the development of the project.

The city has found that unforeseen factors cause costs to exceed the budgets for projects that extend over more than one financial year. It is now applying a stringent budgeting policy to more realistically provide for all costs from the outset.

The redesign and rebuilding of East Coast Rd between Hastings and Rosedale Rds has come under close scrutiny to ensure that the full costs of design, materials and inflation are accounted for. Crucially, provision has been made to provide for identified risks.

Infrastructure and Environment committee chair, Cr Ken Mckay, says this major project - to repair the road and to improve safety for all road users – has been thoroughly reassessed and a robust contingency built into the full cost of the three year job.

“The council must be realistic with calculating the budget for major projects. A review of the East Coast Rd project reveals the need to provide $11.5m in the City Plan rather than the $6.6m that is currently stated.

“When costs overrun unrealistic budgets they cause considerable public concern and complicate long term planning. This poses a real challenge for the council as it balances improving vital corridors such as this one against minimising rates increases,” says Cr McKay.

Work on the project stopped in July 2007 to assess the need for an underpass beneath East Coast Rd to serve Rangitoto College. After detailed consideration of all the issues, the council decided in December 2008 that an underpass would not be constructed, but the council continues to work with Rangitoto College to address the safety and timing of the project. A working party led by Cr Julia Parfitt and including councillors Lisa Whyte and Ken McKay has worked constructively with the Rangitoto Board of Trustees, and the outcome of those meetings has been positive.

The council decision allowed work to start again on the design for the works, which has identified several additional requirements. Amongst others, investigation has revealed the need to relocate services at a cost of nearly one million dollars.

A report on this project will be considered by the Infrastructure and Environment Committee on May 5.

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