🥳 🥵 Auckland Council ‘rejigs’ its spending plan
🥳 🥵 Auckland Council ‘rejigs’ its spending plan
Another good article by Brent Melville.
✈️ Note: I am travelling and managed to miss a very tight connection while responding — spent a bit longer in Iceland than planned and ended up in Gatwick not Heathrow but the article is worth it.
🧐 Key points:
✅ Developer push-back has meant AC has sharpened its pencil.
✅ Inflated cost estimate added at least $1.4 billon to AC’s 30 year investment plan.
✅ Scale and cost of footpaths and stormwater in Tamaki amongst many other items had the DCs more than doubled.
✅ Developer said the modelling was faulty as they were using a simple method versus an indexed method i.e. no time value of money account for so today’s ratepayers and home buyers were paying 2055 costs.
✅ Andrew Barker, KC, said in legal advice to SANZ that that Council’s failure to use ‘time value discounting’ and advance charging would be a reviewable error of law.
✅ I said (while missing my flight connection) that: “some of the so-called experts haven’t even worked in the private sector, the place is broken.”
There is a lot more in the article. Easy to subscribe, I have a mobile phone subscription.
Elected members will be voting later week on whether to sign off the proposal.
🙏 SANZ has sent an email to the elected members and has asked them to:
1. Demand procurement reform before approving major programmes
2. Benchmark all costs against private sector delivery
3. Slash contingency rates to industry standards
4. Deliver more infrastructure for less money (see https://lnkd.in/eAECAiru)
5. And while you are at it put in a KPI process for RC / BC / EPA and do this by Local Board. Measure time taken and cost allocation
https://www.nbr.co.nz/infrastructure/council-rejigs-spending-plan-by-1-4b-adjusts-dc-rates/
