The Whakatāne District Council has decided not to extend its current mowing and vegetation control contract with City Care when it expires on 1 October and will deliver the mowing service with its own staff from that date.

The mowing contract provided for two possible 'roll-over' extensions, but following cost-effectiveness review, Council elected members last week adopted a report recommending the establishment of a Council-owned and managed mowing unit.

The decision was based on the findings of a detailed business case - peer-reviewed externally by a vegetation control expert - which indicated that cumulative savings in excess of $1.25 million could be achieved over a 10-year period by bringing the service delivery in-house. The business case took into account the cost of purchasing the required plant and machinery, minor upgrading work at the Council's Keepa Road depot, and maintenance, debt-servicing, depreciation and staff costs.

Mowing and vegetation control work is currently organised under three contracts, at a combined cost of $847,000 a year. Those costs are spread across a range of Council activities, with more than 90 percent of the funding required coming from the Places and Open Spaces (reserves) and Transportation (road verges) budgets.

Councillors welcomed the business case findings, noting that the annual savings offered represented more 0.5 percent of the Council's 2016 rates revenue.

Mayor Tony Bonne said the "payback" extended beyond the rating impact. "Community concerns have been raised about the quality and regularity of mowing services and centralising the service delivery within one Council group will give us greater control and accountability," he said.

Places and Open Spaces Manager Mike Naude said the ability to interchange operating staff within his team offered a key advantage, allowing greater flexibility to meet the “seasonal needs” associated with high grass-growth periods.