Council quiet on feedback

The Dunedin City Council is revealing nothing about feedback received on its proposal to contract out maintenance of its water and wastewater network after submissions on the proposal closed this week.

DCC water and waste services manager Laura McElhone, who helped write the proposal, would not reveal how many submissions were received.

She said the council would not disclose any more information at present, including whether there was interest from potential contractors.

''We are still working through the submissions we have received, so I can't give any comment at all,'' she said.

Under the proposal, 30 council workers would be transferred to a contractor. Contracting out maintenance and repair work was the first phase of an overhaul of the council's water and waste services unit.

It could include further restructuring of the unit by the end of the year.

The council's executive management team has yet to approve the proposal to contract out work, which included dealing with floods, blocks, leaks and all general maintenance and repair of the infrastructure.

Council technicians would be employed under existing terms and conditions by a successful contractor as part of its agreement with the council, but that deal would only be valid at the point of transfer.

The 30 workers would then have to negotiate contract conditions with a new employer.

Over the next decade, the council's ageing network will cost an additional $30 million to maintain, to a total of about $75 million a year.

Network maintenance costs about $3.9 million a year, and it was estimated contracting services would save the council between $300,000 and $550,000 a year.

It also meant the council could avoid further investment of about $590,000, and sell assets worth about $900,000.

Such savings were part of a wider effort to ensure rates increases stayed below 3% a year.

- rosie.manins@odt.co.nz

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