Water contract to be negotiated

The Queenstown Lakes District Council has resolved to enter into contract renewal negotiations with its 3 waters contractor, United Water, QLDC chief executive Debra Lawson said.

The contractor is responsible for the operation and maintenance of the district’s waste water, stormwater and water supply networks.

Awarded in 2008, the United Water contract allows for a performance based renewal after three years.
Ms Lawson has been authorised by the Utilities Committee to commence an appraisal of the contract to identify where the council will seek enhanced delivery of the services provided.

“The council is placing an emphasis on operational efficiency and value for money in all of the work that it does and it is appropriate that this contract should be assessed and agreed on those factors,” Ms Lawson said.

The council’s understanding of the networks had improved and the contracting market place was more competitive.

“That makes a solid case for reassessment of the contract’s terms and conditions,” she said.
Work on the contract would commence immediately and the outcome would be reported back to the Utilities Committee following negotiations with United Water.

Any contract renewal would need to reflect the gains made over the last three years in understanding the integrity of the networks and the cost of maintaining them.

“If the outcome is for renewal, it will be on different contract terms,” Ms Lawson said.

Council was timing the negotiations to ensure that it had adequate time to go to the market in the event that it was not able to reach a satisfactory renewal with United Water.