Council Organisation Loses Nelson Parks Contract

Friday, 24 January 2025, 9:39 pm
Article: Max Frethey - Local Democracy Reporter

After decades of Nelson’s parks and open spaces being maintained by the city council’s own environmental organisation, a new company has been awarded the contract.

Green by Nature, one of Australasia’s largest green space contractors, will now manage Nelson City Council’s parks, reserves, and open space assets for at least the next eight years.

On 1 July, they will take over from Nelmac Kūmānu, a council-controlled company wholly owned by the Nelson council, that has held the contract for “close to 30 years”.

The wide-ranging contract covers the maintenance of services including public gardens, neighbourhood parks, street gardens, trees, hanging baskets, sport fields, cemetery and crematorium services, playgrounds, as well as esplanade and foreshore reserves.

Green by Nature was awarded the contract after following a “comprehensive” procurement process.

Council chief executive Nigel Philpott said on Thursday that the proposal Green by Nature put forward was “impressive”.

“It’s my priority to make sure the contracts we sign deliver the best possible value for money to ratepayers,” he said.

“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.”

Elected members of the council requested an inclusion in the contract that Green by Nature will consider Nelmac staff for employment, and that process has already begun after a meeting with impacted Nelmac staff on Wednesday.

Nelmac’s acting chief executive Lindsay Coll confirmed that the organisation had tendered for the open spaces contract but did not anticipate any “long-term detrimental impact” to the company’s financial performance as a result of losing the contract.

“We’ve always been mindful that we're in a competitive procurement process, and losing the contract was a possible outcome, but we have planned for both outcomes,” he said.

“Our focus is on supporting our people and the best outcome for them.”

The company employs about 280 people, of which, about 60 service the Nelson open space contract.

Coll said that with “quite a strong 4–12-month pipeline”, staff may also be redeployed to other areas in addition to those who might transfer to Green by Nature, but he added that there was not yet clarity on the exact number of staff that could be transferred or redeployed.

Despite wrapping up the city’s open space contract in July, which it’s held for “close to 30 years”, it won’t be the end of Nelmac's activities in Nelson.

The organisation currently holds the city’s water utilities contract, among others, and continues to compete with other providers for environmental contracts.

Nelmac also continues to have a presence elsewhere in the Top of the South, including in Tasman, where it holds several contracts including in the open space area, as well as Marlborough where it’s recently “significantly increased” the size of business with several landscaping contracts for retirement homes.

The organisation’s focus is now expanding its Kūmānu Environmental out of the region which, Coll said, was “quite exciting”.

The loss of the open spaces contract comes as Nelmac decided not to re-tender to collect Nelson’s recycling after holding that contract for 10 years.

Coll said that waste and recycling collection was no longer Nelmac's core business, and that it would have cost at least $1.5 million to renew the old fleet of recycling trucks.

A joint venture of CanPlan and Northland Waste will take over the recycling collection contract.

The council’s group manager community services Andrew White thanked Nelmac for its work in the city’s open spaces.

White said Nelson would benefit from Green by Nature’s “innovative approach” that incorporates advanced technology like smart irrigation systems and drone technology.

Green by Nature director Cameron Parr said the company was honoured to be chosen as the open space contractor.

"We are both humbled and proud to be working alongside Nelson City Council in caring for these vital community assets.”

He said the company’s team had comprehensive expertise and was committed to environmental stewardship, “ensuring these beloved community spaces continue to be places where nature, recreation, and community come together.”

Green by Nature currently holds maintenance contracts around the country, including in Hastings and Queenstown.

The contract is an eight-year agreement with an option to extend for an additional two years, and was signed by the council and Green by Nature on Wednesday.

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