The Whakatane District Council has decided not to extend its current mowing and vegetation control contract with City Care when it expires on October 1 and let its own staff mow the lawns from that date.

A cost-effectiveness review prompted this decision by Council elected members as they adopted a report recommending the establishment of a Council-owned and managed mowing unit.

The council-owned unit will give more flexibility. File photo.

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 per cent 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 per cent of the Council's 2016 rates revenue.

Mayor Tony Bonne says 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.

Places and Open Spaces Manager Mike Naude says this allowed greater flexibility to meet the 'seasonal needs” associated with high grass-growth periods.