The Dunedin City Council announced in a press release this evening that Waste Management Limited had won the contract after a competitive procurement process.
The contract has a value of $20.6 million over an eight-year period, which saves ratepayers more than $500,000 over the term of the contract.
Workers at council-owned Delta were told of the news this afternoon.
It was not yet known how many staff will be affected.
The council's acting general manager infrastructure and networks, Richard Saunders, said it would work with Waste Management to see if there were opportunities for some Delta landfill staff to be redeployed.
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.''
• More in tomorrow's ODT
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Comments
Did Cull and his merry men think outside of the square to including in the contract conditions that all Dunedin would have free Wheelie bins as part of the contract and as part of the rates? maybe not, that would reduce the dumping of rubbish on the streets. At least it must make Waste Management wheelie bins heaps cheaper now.
I really hope the council have nailed down the contract with Waste Management and not just fallen for the glossy brochure. $500K sounds a lot to save, but it is only $60k a year or 2% of the deal. That would easily be clawed back and exceeded by Waste Management billing for out of scope and add on bits.
A bit like the SDHB food fiasco, committing to long term deals on the back of small anticipated savings is easy when it's not your money. But hard to get out of when its gone pear shaped in a year or two.