Swansea
Water Solution Closer
A
reliable, treated water supply for Swansea appears much closer after
a Glamorgan Spring Bay Council workshop with the faciltators, Hobart
Water, and invited members of the community.
The
meeting was arranged by Council following the refusal by a majority
of councillors to endorse the Swansea Water Deed, an agreement between
Council, State Government Treasury and Hobart Water for the
construction of a 400 megalitre dam beside the Meredith River and the
provision of a water treatment plant.
Treasury
estimates revealed a financial blowout of approx. $3,000,000
in a total cost of $8,467,004. A previous estimate by Burnie consulting
engineer, Bill Enkelaar, placed
the figure at $5,500,000.
The
Government proposes contributing a total of $1,920,000 to Hobart
Water over 4 years to subsidise various financial offsets.
An officer
from Treasury said the contribution was a set amount, could
not be increased, wasn't required to be repaid and must go to Hobart
Water.
Should
Council again refuse to sign the Deed and attempt construction
themselves, the subsidy would not be paid to Council.
Terms of
the Deed show that Hobart Water are required to call tenders
for construction and supply.
Cr Howard
Harris repeated a statement he made at a meeting of Council
on 3rd June when he said: "Council is unable to endorse the Swansea
Water Deed as presented because we can't commit to the estimated cost
of $8.5 million."
Hobart
Water Corporation Chief Executive Officer, Dr Christine Mucha,
who was accompanied at the meeting by the corporation's Finance Manager
and Chief Engineer, said: "The quote should be considered an estimate
only. There has never been any intent to maximise upon the $8.5
million. If it can be done cheaper, then it will be .... in which case
Council commitments would not be so
great.
"We are
very aware of costs (as is the Board of Hobart Water). Only
this morning we were checking prices for pipeline and other items."
The
Treasury model budget shows contingencies in the contract have been
nominated at 30% and escalating costs allowance over one year at 10%.
A timeline
for the project shows work starting immediately with the dam
constructed by January 2009 and water treatment plant commissioned by
October 2009.
Councillors
are presently attending workshops on the Council's budget
and matters arising from the meeting will be considered at the next
meeting of Council.
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