City Care Through to Next Stage

Dunedin (Wednesday, 16 October 2013) – City Care is through to the next round as the Dunedin City Council proceeds with outsourcing its water and wastewater network maintenance.

DCC Group Manager Water and Waste Laura McElhone says City Care, a Christchurch City Council-owned company, has emerged as the leading contractor against some strong competition.

“They currently maintain water and drainage networks serving 1.5 million New Zealanders. We are confident they will be able to deliver the contract to the required standards, as well as working with the DCC to deliver long-term benefits.”

The plan to outsource water and wastewater network maintenance affects 30 staff. Under the proposal, all staff who transfer to a new contractor will be transferred on their existing terms and conditions of employment under a collective agreement.

In June, the DCC announced four contractors had been shortlisted to proceed to the request for proposals stage. They were City Care, Downer, Fulton Hogan and Veolia. Veolia later withdrew from the process.

The DCC’s Executive Leadership Team (ELT) yesterday selected City Care to proceed to the price negotiation stage. Affected staff were advised at a meeting at 8am today.

Negotiations are expected to take place during October and November. A recommendation on the final contract is expected to be presented to ELT in late November, with a contract likely to begin in early March 2014.

Management are confident the negotiated price would deliver the anticipated savings of $350,000 to $500,000 a year, while maintaining or improving service levels.

Dr McElhone emphasised the jobs which would be transferred would remain in Dunedin as that is where the work is.

She understood this was a difficult time for staff and the DCC would continue to work constructively with the unions.
ends

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