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The Dunedin City Council announced in a press release yesterday Waste Management Ltd had won the contract after a competitive procurement process.
The contract had a value of $20.6million over an eight-year period, which saved ratepayers more than $500,000 in that time.
Workers at council-owned Delta were told the news yesterday afternoon, but neither the council nor Delta revealed how many staff would be affected.
The loss is the latest blow for Delta after it lost part of the council’s parks maintenance contract, which it said could cost up to 13 jobs.
Council acting general manager infrastructure and networks Richard Saunders said the council would work with Waste Management to see if there were opportunities for some Delta landfill staff to be redeployed.
The contract, which is subject to final negotiations, is to start in July, and Waste Management would move staff and equipment from its Fairfield landfill, which is due to close this year.
Delta chief executive Grady Cameron said it was "naturally disappointed" to lose the contract, but recognised it operated in a highly competitive industry.
"Our focus is now on completing the existing contract and working through the implications for our Dunedin landfill team and supporting them through that process," Mr Cameron said.
It was proud of the way it had managed the landfill on behalf of the city for decades.
"In that time, Delta has made notable contributions to the landfill, both in customer service at the booth and rummage centre, landscaping improvements and achieving EnviroMark Gold certification — the first for a New Zealand landfill."
Mr Saunders said the new contract would bring a wide range of benefits to Dunedin residents.
"Waste Management is a specialist in this field and the largest provider of waste services in New Zealand.
"Dunedin will benefit from the technical expertise and resources that can be accessed through their wider network."
As part of the contract, Waste Management would have more staff based at the Green Island transfer station to help customers unload, manage health and safety issues and increase the amount of material that could be recycled or reused.
The council received four tenders for the contract, which were evaluated on quality of service and price.
The council now had a single contract, held by Delta, for a wide range of solid waste services, which was being split into three.
The first to be decided was the contract to run the Green Island Landfill and transfer station. The other two contracts are an environmental monitoring and reporting contract and a contract centred on running rural transfer stations, which are set to be decided next month.