Evidence Jim’s last hurrah . . .
SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – SAY NO TO THE CCO – NOOOOOOOOO DCC
Dunedin City Council
DCC Water and Wastewater Services – A Council Controlled Organisation?
This item was published on 14 Jan 2011.
Following a series of workshops and reports over the past two years, the Dunedin City Council will next Thursday consider creating a new Council Controlled Organisation to run water and waste utility services on behalf of the city.
A Council Controlled Organisation (CCO) is one that is owned by and reports to Council, but operates independently, governed by a board of directors appointed by the Council. It would be commercially disciplined while being funded by the same mix of rates and charges currently funding the services.
About 100 existing Council staff would be directly affected by the change if the CCO is established after consultation. Their positions would be transferred on existing terms and conditions to the new organisation.
Two years ago the Council asked outgoing Chief Executive, Jim Harland, to report on how best to deliver water and waste services into the next 50 years, making it clear that privatisation was not an option as it would be contrary to the existing policy (W101/7) which states that; “Water and sewerage systems should remain in the ownership of the Council either directly or as part of the Council’s operations or through an entity owned by the Council and that the Council is opposed to the privatisation of the city-wide water and wastewater services”.
After consideration of three options – the enhanced status quo, a CCO or a Council Controlled Trading Organisation (which would be required to provide a return on capital) – staff and consultants have recommended the CCO as being the most efficient option. It is expected long-run reduced costs to ratepayers for water services would be about $20 million over 10 years.
This would be achieved through more efficient, commercially focused, processes along with reduced overhead and financial efficiencies.
If the Council approves, the community will be consulted using a special consultative procedure, as defined in the Local Government Act 2002, in the first half of this year. If finally approved, the CCO would be established with a three-year transition period during which it would continue to use Council services such as IT, finance and HR, for example.
Water and wastewater services are currently provided to about 47,000 Dunedin homes and businesses, operating on a budget of about $58 million in 2010/11, a capital budget of $31 million and managing water assets valued at $1.6 billion.
For more information, please contact:
* Dave Cull, Mayor of Dunedin City Council
* Cr Andrew Noone, Chairman Infrastructure Services Committee
* Cr Syd Brown, Chairman Finance, Strategy and Development Committee
Contact Mayor Dave Cull on 477 4000.
Posted by Elizabeth Kerr