Council to accept tender for upgrade of Urunga Sewage Treatment Plant
Published on 18 December 2023
Council has taken a significant step forward in the Sewering Coastal Villages project, with a decision to enter into a contract for the upgrade of the Urunga Sewage Treatment Plant (STP) resolved at today’s Extraordinary Meeting of Council.
The Urunga STP upgrade marks Phase 1 of the Sewering Coastal Villages project, a collaborative effort between the Council and the NSW Government to enhance the sewer system.
Following the completion of a tender negotiation process for the project, a report was presented to Council as a confidential matter in today’s Extraordinary Meeting, with Council awarding the project to Leed Engineering Pty Ltd. Council will work closely with the successful contractor to ensure the project is delivered efficiently and meets the needs of our community.
The comprehensive tender process for the Urunga STP began in April 2023, with a number of challenges faced including the rising costs of project delivery due to supply chain shortages and inflation. During the August Ordinary Meeting of Council, a decision was made to decline the initial tender applications and enter further negotiations.
Following this decision, NSW Public Works were engaged to facilitate an extensive negotiation process with specific tenderers who made submissions. The overall aim of the negotiations was to reduce the offered price. An agreement has now been achieved through scope consolidation and whilst contractor-initiated savings were achieved, a budget shortfall of $3 Million has been identified which is to be covered by the Sewer Fund Reserve for this component of the project. This decision made today to progress delivery of phase 1 of the Sewering Coastal Villages project was thoroughly debated to ensure Council considered the risks associated with delivering a project of this scale. The project scope changes that remove the recycled water plant, the exclusion of a non-essential concrete apron for the sludge lagoon and the revision of material options to favour more cost-effective choices were considered and identified that they can be added at a later date as funding becomes available.
Further to the resolved tender agreement, Councillor’s unanimously moved to review the impact of the additional funding required for phase 1 and the subsequent impact this might have on the delivery of the entire project, as well as to prepare a public timeline report of the decision-making process from the inception of the complete Sewering Coastal Villages project to be made available within the current financial year. Further, monthly financial and progress reports and updates will be tabled at the Ordinary Council Meetings for the duration of the project.
Bellingen Shire Council General Manager, Mark Griffioen added: “This is an important project for our Shire in addressing environmental concerns and meeting the needs of our community members.
“It is also imperative that Council ensures that a project of this scale is delivered efficiently, and that we appropriately manage the challenges of rising costs that are currently impacting many capital works projects across Australia.
“Council is steadfast in its commitment to delivering this project to our community and we thank everyone – most notably the impacted residents and business owners – for their patience as we have navigated through several unforeseen challenges.
“We believe that the revised tender received from Leed Engineering Pty Ltd along with the additional budget secured from the Sewer Fund Reserve provides us with an acceptable path forward to progress the Sewering Coastal Villages project and begin delivering the considerable benefits to our region.”
The Sewering Coastal Villages Project aims to install sewer infrastructure along our coastal villages to treat wastewater to a high standard before being released into the environment.
The project will be delivered in three phases, including the construction of upgrades to the Urunga Sewage Treatment Plant (phase 1), installation of reticulated sewerage in key areas such as Raleigh, and Mylestom (phase 2). The Raleigh Industrial Estate and Repton (phase 3) will be considered as future funding options become available.
The works will involve the installation of gravity mains, pump stations, and a treatment plant upgrade to provide sewerage services to the area.
Council will prioritise delivering the Sewering Coastal Villages – phase 1 project through the collaborative partnership with Leed Engineering Pty Ltd in the coming 12 months, continuing to respond to challenges such as weather as they arise.
Council would like to keep residents regularly updated in relation to the project. It is important that impacted residents ensure that Council has their most up-to-date contact details to assist with arranging meetings and passing on other important information. Please see our website for more information or to register your details: https://www.bellingen.nsw.gov.au/Have-Your-Say/Sewering-Coastal-Villages-Project