$56,000 overspend agreed

Recent work on the stream which runs past shops in the Cromwell Mall cost more than $80,000, prompting the Cromwell Community Board to approve an overspend.

The board resolved this week to approve the overspend, after considering a report from Central Otago District Council community facility manager Grahame Smail.

Last December, the board was told the stream's outfall pipe had blockage problems and work was proposed to alleviate the issue.

The board allocated $50,000 for the work in February, and accepted a $49,477.29 tender from Downer Edi Works.

While work on the stream was being undertaken, the board took the opportunity to relocate power cables and contract other work associated with the pending site development of Paper Plus.

The cost of work directly associated with the stream exceeded the initial estimate, rising to $84,529.

Work associated with Paper Plus cost an additional $21,416.

An overall project cost of more than $105,000 meant the board needed an extra $56,000, because it initially allocating $50,000.

Board member Terry Emmitt declared a conflict of interest in the matter, because he was contracted to be the project manager.

His company's share of the expense - included in the $105,000 - was about $10,000.

 

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