The Queenstown Lakes District Council today (Friday) recommended that it proceed to investigate an offer for the transfer of the Council's engineering management services contract.

Under Contract 330, Imtech Limited is contracted in this role until June 30, 2008.

The full Council considered a report from QLDC chief executive Duncan Field that the Council had received a request to transfer the contract, through a new contract.

This was considered in public excluded due to commercial sensitivity.

The proposal would see a new company formed between engineering company Duffill Watts and King Limited and the Council. The Council would have a minority stake holding. The proposed new company would take over the engineering management role of Imtech, currently under the ownership of principals Phil Dunstan and Chris Gregory. By holding a modest equity interest in the proposed new company, the Council would be able to evaluate profitability and effectiveness.

"This is a major proposal involving complex issues of engineering management, therefore we have recommended that there should be a robust and thorough evaluation process," acting chief executive Stewart Burns said.

The Council approved the process recommended by Mr Field to undertake the following:

• The establishment of working party consisting of - Alan Bickers (former ceo and engineer), James Hadley (engineer) Peter Gray (former Councillor and chairman of finance committee) and Mr Burns - to assess the issues and implications of the proposal.
• The conclusions of the working party to be considered by the Service Delivery sub-committee (established to assess all contracts).
• To brief Councillors in late January 2005.
• To submit a final recommendation to full Council on February 25, 2005.

"This offer does allow us the opportunity to address a number of current and emerging issues," Mr Burns said.

• The working party would also consider and comment on the following:
• Re-specification of the engineering contract, including contractor obligations.
• Elimination of the fixed fee basis, instead linking payment to annual workload.
• Staff retention and service standards.
• The development of an 'open book' relationship to ensure the community receives value for money.
• Utilisation of Duffill Watts and King national and international experience and scope.
• Integration of the yet-to-be-appointed Council utilities general manager, the Remarkable Roads project and improved reserves management.

"In very basic terms the proposal we have received is a reassignment of the work carried out by Imtech to an alternate provider, allowing us a good opportunity to take stock of the current contract and make positive improvements. If the Council chooses to accept this proposal it will only be after complete and thorough scrutiny on the part of independent experts and elected members," Mr Burns said.

ENDS

For further comment please contact Stewart Burns 441 0499 or 027 442 9769.

By: Kiri