The Dunedin City Council has confirmed it is entering into
price negotiations to outsource part of its water maintenance
work to a Christchurch City Council-owned company.
City Care has been confirmed as the leading candidate from a
shortlist of four companies vying for the DCC's water and
wastewater network maintenance contract.
The work was currently performed in-house by the DCC, and up
to 30 staff potentially affected by the change were told the
news this morning, DCC water and waste group manager Laura
McElhone said in a statement.
The council would now begin price negotiations with City Care
representatives. These talks were expected to conclude late
next month, when a final decision was made, she said.
The company had fended off competition from rival firms
Downer, Fulton Hogan and Veolia, and, if negotiations were
successful, would begin work for the DCC in March next year,
Dr McElhone said.
The change was expected to deliver significant savings for
the council, while staff who transfered to City Care would do
so on existing terms and conditions.
They were expected to remain in Dunedin for at least the
duration of the company's contract, but were not able to be
given any guarantee of continuing employment under City Care,