Goulburn Mulwaree Council heard tenders for a water project came in “significantly higher” than expected. Photo: James Coleman.
Facing a multi-million dollar budget shortfall, a Southern Tablelands council has voted to prioritise one infrastructure project, pushing back the timeline for others.
At a recent meeting, Goulburn Mulwaree Council (GMC) decided to award a tender covering the design and construction of the Marulan Water Treatment Plant to LC Water Pty Ltd, a Victorian-based company.
Four businesses had submitted tenders to the council, including three NSW-based companies.
Council documents state there are budget concerns around the treatment plant, with other infrastructure projects being affected as a result.
“This contract is a multi-year contract however the allocated budget for this work does not cover the total cost of the project,” council documents state.
“Adjustments to the capital works program over the next two years, including the deferral of some projects and the reduction in renewal works, has been identified to cover the additional budget required for this work.”
During the meeting, councillors heard this shortfall was about $9 million.
Councillor Caitlin Flint said the tenders had come in “significantly higher” than what GMC had budgeted for.
She said it was a “bittersweet” feeling that work was progressing on the needed project.
“I have some concerns, I guess, around why it’s seven months later and we’re only getting the tenders now. I’m going to assume it’s because we were negotiating around full costs before they were presented back to us.
“But at the same time, I don’t know where we’re going to find this money from.”
A staff member replied that the deferral would give the council funds to cover the project’s cost (including shortfall for the contract and project management).
She also assured councillors that completion of the water treatment plant would resolve several issues affecting the quality of the region’s water supply.
“That [gives] us the time to set aside the money for the reservoir and the additional works that aren’t needed at the same time … It’s a treatment plant that will make that difference to that process.
“It’s a water quality issue, not a network issue.”
She also said the treatment plant would service an existing reservoir, as well as one still in the planning process.
Council papers also state $250,000 in water developer contributions for Marulan will also be put towards this project.
This site was flagged to host Marulan’s new reservoir, which is now delayed. Image: Google Maps/Screenshot.
The affected projects include a new reservoir and construction of a rising main, which were both expected to be located at Marulan. These have been put off until the treatment plant is finished.
Goulburn Reticulation Renewal has had its budget cut for 2026/27 and planned works in 2027/28 removed, according to council documents.
The papers also state that work on an Addison Street reservoir has stopped, at least temporarily.
It is described on that project as being “not needed at this stage”.
Cr Bob Kirk raised his concern that pushing back the project’s timelines could result in cost increases.
“By deferring it, no doubt it’ll be more expensive when the time comes to do it.
“We’re building another bill for ourselves, down the future here.”
The council documents also state LC Water was recommended as the successful tenderer after ranking the highest during the evaluation process around value-for-money considerations.
It will complete the detailed design for the Marulan Water Treatment Plant.
“The contract requires the detailed design to be completed in 26 weeks. Approval of the design is required from council’s regulators prior to the commencement of construction.”
