From 1 July, the contract will be held by Australasian company Green By Nature. Photo: RNZ / Samantha Gee
An Australasian landscaping business has taken over the management of Nelson's parks and reserves - beating out a council-owned business that has held the contract for three decades.
The Nelson City Council announced that after an open tender process - an eight year contract was awarded to Australasian-wide company Green by Nature to manage the city's parks, reserves and open space assets from 1 July.
Since 1995 the contract has been held by Nelmac Kūmānu, a council-controlled trading organisation that is solely owned by Nelson City Council.
Nelmac Kūmānu acting chief executive Lindsay Coll said the contract was a "reasonably significant" one for the business and was currently serviced by 60 staff.
He was unable to say how many of those roles would exist after 30 June but that the company was working to help any affected staff transition to work for Green By Nature.
"Our absolute primary focus is doing the best by our people to support them through this period."
Coll said Nelmac had tendered for the contract with the intention of retaining it at a sustainable price, but was unable to do so.
"We were always mindful we were in a competitive procurement process and that losing the contract was a possible outcome and we would essentially plan for both possible outcomes."
He said Nelmac was a sustainable business and he didn't anticipate "a long term detrimental impact to its financial performance". The company had a busy pipeline of work through the next 12 months and longer term, it would look to explore further opportunities outside the region.
Anzac Park, located between Haven Road and Rutherford Street in Nelson. Photo: RNZ / Samantha Gee
Nelmac would continue to deliver contracts for Nelson City Council, including the maintenance of water utilities.
Nelson City Council chief executive Nigel Philpott said the two-step open competitive tender process was carried out following a review of the council's open space operations and maintenance contract and in line with the council's procurement policy.
It received six tenders from local and national companies and Philpott said Green By Nature was chosen for its value for money and high-quality service.
"It's my priority to make sure the contracts we sign deliver the best possible value for money to ratepayers and we achieve this through a competitive tender process. Green by Nature's proposal emphasised value for money, high-quality service, a commitment to the horticulture industry through their comprehensive trainee program and minimising environmental impact."
The contract covers the maintenance of public gardens, neighbourhood parks, trees, sport fields (including Saxton Field), cemetery and crematorium services, playgrounds and esplanade and foreshore reserves.
The new contract was an eight-year agreement with an option to extend for an additional two years.
Nelmac have held the contract to maintain Nelson City Council's parks and reserves since 1995. Photo: RNZ / Samantha Gee
Philpott said it included a requirement that Green by Nature consider affected Nelmac staff for employment on the initiative of elected members.
Council group manager of community services Andrew White said Green by Nature currently maintained some of the country's most prestigious parks, sports fields, and community spaces including for Hastings and Queenstown Lakes District Councils.
He said the council wanted to thank Nelmac for maintaining Nelson's parks and reserves for many years and that the company continued to be an important contract provider to council for other services.
Green by Nature New Zealand director Cameron Parr said the company was honoured to be the chosen open space contractor for maintaining Nelson's cherished green spaces, premier sports facilities, and renowned public gardens.
"Our team brings together dedicated horticultural specialists, skilled arborists, and sports turf experts who understand the diverse requirements of Nelson's outstanding green spaces."
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
