Town Basin contract under close scrutiny

A Whangarei District Councillor has asked the Auditor General to look into the way the council gave maintenance contracts for the Town Basin to the Whangarei Youth Centre.
Cr Frank Newman wrote to the Office of the Auditor General last month asking for an inquiry into the way the council conducted the tender process for the Town Basin contract, which is worth about $300,000 a year.
The Auditor General's office has replied saying it will investigate before deciding whether to launch an inquiry. It could make a decision next week.
The Whangarei Youth Centre is run by Whangarei District Councillor Kahu Sutherland and is based at ``The Church' in Bank St, which is owned by the council but leased to the Whangarei Youth Centre Trust for $1 a year.
Advocate inquiries show that the trust was removed from the Register of Incorporated Societies on May 12, 2005.
In his letter to the Auditor General, Cr Newman said he had concerns over the way the tendering process for the Town Basin contract was terminated.
Council documents released to the Advocate under the Official Information Act show that the Town Basin Maintenance Services Contract was to go before the council's community enterprises committee meeting on September 15, 2005.
The maintenance contract had been carried out by "custodians" recruited from the Youth Centre since 1996, but the council put it out for tender in mid-2005.
The September 2005 agenda item, which was withdrawn before councillors had a chance to consider it, recommended that the contract be awarded to Recreational Services, which had the lowest tender price and highest attributes score.
The Youth Centre tendered for the contract, but did not put in a contract price until after the tender had closed. After seeking legal advice, the council decided not to look at the Youth Centre tender price as it was "not conforming to the requirements".
The legal advice said the council "would be at risk of legal action by the other tenderers, if it were to process and subsequently accept the late tender".
It went on to say if the council wished to consider the tender, it first had to seek the consent of other tenderers. If this consent was not forthcoming, it recommended the council not consider the Youth Centre's late tender.
Recreational Services' tender price for the five-year contract was $977,282, with the next lowest $1,146,656 from Green Gables.
Recreational Services' attributes score, which takes into account experience, track record, technical skills, resources and management skills, was 51.3, with the Youth Centre scoring 43.5, the next highest.
When the combined attributes and price score was added up, Recreational Services scored 77.2, compared with the 57.8 for Green Gables and 43.5 for the Youth Centre.
However, the agenda item was pulled and the contract was subsequently left with the Youth Centre.
Whangarei Mayor Pamela Peters did not want to comment on the issue at this stage.