2022-04-12 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                 12 APRIL 2022


Therefore, staff will:
-          Submit a request for an increase in grant funding for the Cooroy Belli Creek Road Bridge on a
           50-50 basis for the budget shortfall.
-          Withdraw the Lawnville Road Bridge project grant funding from the Bridge Renewal Program,
           round 5.
-          Reapply for grant funding for the Lawnville Road Bridge project under the Bridge Renewal
           Program, round 6:
           i. with a revised cost estimate.
           ii. reschedule the Lawnville Road Bridge Replacement project in the capital works program if
               successful. The revised funding strategy is summarised and detailed in the tables below:

    Cooroy Belli Creek Road Bridge replacement, project cost

    Item                                                                                      Cost (excl. GST)
    Costs Year to Date (March 2022)                                                                      $163,000
    Tendered Contract Value                                                                          $1,011,420
    Consultants, staff and superintendent costs, levies, and project allowance                           $219,110
    Total project cost                                                                               $1,393,530


    Cooroy Belli Creek Road Bridge replacement, funding strategy

    Funding source                                                                            Cost (excl. GST)

    Currently approved grant contribution                                                     $450,000
    Currently approved Council contribution                                                   $450,000
    Subtotal – currently approved                                                                        $900,000
    Additional grant increase (request to Federal Bridges Renewal Team) or reallocate         $246,765
    part of the grant contribution from Lawnville Road Bridge
    Additional Council contribution increase (either cash reserves or utilising part of the   $246,765
    existing Council contribution from Lawnville Road Bridge project)
    Subtotal – additional                                                                             $493,530
    Total project funding amount, matching required project budget                                   $1,393,530

If Council is unsuccessful in obtaining the additional grant increase, a larger part of the existing
Council contribution for Lawnville Road Bridge project funding will be utilised to cover the shortfall.

Risks & Opportunities
    Finance Risks                 Mitigation
    Council request for scope     This is to be mitigated through the Capital Works Project Control Group and
    increases.                    Capital Works Executive meetings and limitation of client requested scope
                                  variations.
    Scope changes once            Council acceptance of scope as awarded with intention of not increasing
    construction commences        scope.
    and project becomes
    publicly visible.
    Geotechnical conditions       A detailed Geotechnical investigation report has been completed and the
    give rise for contractor      report provided as part of the tender documentation. Any required variations
    claiming variation costs.     in depth will be worked out by variation rates that have already been locked in
                                  with the contractor as part of the contract specifications. A budget
                                  contingency allows for this risk.



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