The Dunedin City Council is eyeing a six-figure saving as
it prepares to rid itself of surplus vehicles from its $2.5
The moves comes as figures released yesterday showed the
council's fleet stood at 174 vehicles of all shapes and
The fleet had a total insurance replacement value of $2.5
million, but its size was expected to drop as a result of two
recent initiatives, council regulatory services group manager
Kevin Thompson said.
He said the council planned to transfer five vehicles to the
new Otago-wide rural fire authority, if the proposed new
entity was confirmed.
Another seven vehicles used by the council's water and waste
services (WWS) staff would be sold to City Care for use when
the company took up a water maintenance contract in Dunedin
later this month.
While the transfer of rural fire vehicles would not generate
cash for the council, the sale of vehicles to City Care would
see the council recouping $186,500, Mr Thompson said.
The council announced late last year it was outsourcing some
of its water and waste services maintenance work to City
Care, a Christchurch City Council-owned company.
DCC water and waste group manager Laura McElhone said at the
time the council would recoup about $900,000 from the sale of
equipment, and yesterday confirmed that figure included the
sale of vehicles to City Care.
Other vehicles deemed surplus to requirements for remaining
WWS staff would be returned to the council's city fleet
operation, and reallocated to other parts of the
organisation, Mr Thompson said.
The loss of vehicles also meant the council's operating and
maintenance cost for its vehicle fleet would drop by $50,000
a year, down from $891,984 in 2012-13, he said.