Cake decorator's water contracts discussed behind closed doors

Westland District Council met privately to discuss water contracts. The $410,000 contracts were put on hold after Techno Economic Services was revealed to be a cake decorating firm. Photo/File

A decision around a contract to bring the Kumara and Whataroa water supplies up to standard was moved behind closed doors at the Westland District Council meeting yesterday.

The contracts, with a combined value of $410,000, have drawn national media attention after they were awarded in January to Auckland-based Techno Economic Services (TES), a cake decorating company.

The council has been in the spotlight for its dealings with the Indian-owned company, which was last year also awarded an $8.5 million contract for a proposed new sewerage plant at Franz Josef Glacier, although that one did not eventuate.

Council chief executive Tanya Winter said Thursday the Franz Josef contract had not actually been let.

However, the two water contracts on hold, were still pending.

Mayor Bruce Smith said the council had taken legal advice and was following a process.

He expected a final decision would be made early next month.

Mr Smith said the delay would not affect the $285,000 Ministry of Health drinking-water subsidy that the council was in line to receive for the Kumara upgrade.

Neither plant currently meets national drinking-water standards. Kumara was recently on a ''boil water'' notice for almost a month.

Mr Smith said he understood the council had until June 30 to let the contracts and get under way with the work in order to keep the subsidy.

The two options the council now faced were either sticking with the successful tenderer, (TES), or alternatively going back to tender.

Five contractors - Filtec Ltd, Process Flow Ltd, Service Engineers Ltd, Southwater, and Techno Economic Services - were shortlisted from an initial list of 49 for the water contracts.

TES tendered the lowest price at $459,000, which it then dropped by $57,000. It scored the lowest in experience and track record (15 per cent) but the highest overall at 85 per cent based on a mixture of design, management and price.

- Greymouth Star