E
FRE
Your independent local newspaper
June 4, 2012
-
Ph: 4325 7369
Issue 34
Central Coast Highway upgrade to resume oads and Maritime Services (RMS) will start negotiations with a number of contractors immediately after deciding to end its contractual arrangements with Reed Constructions.
R
MS has four road projects affected by Reed’s financial difficulties including the Central Coast Highway upgrade from Carlton to Serpentine Rds. “It was decided by RMS to terminate Reed’s services and ensure the priority was for the important road projects to be completed as soon as possible,” said NSW Roads Minister Mr Duncan Gay. The NSW Government has been working with Reed Constructions since it indicated in late February it was experiencing financial difficulties. “It is not appropriate for the Government to use taxpayers’ money to simply “bail out” a company experiencing financial difficulties,” Mr
Gay said. “RMS and the Department of Education and Communities (DEC) have been working with the company for some time and have done everything possible to resolve the issues in dispute, while ensuring public money is spent responsibly and lawfully. “RMS has for several months paid all of its payments to Reed ahead of contract terms to support its cash-flow to help it meet subcontractor commitments,” Mr Gay said. “An expedited determination process was also put in place to resolve as quickly as possible the outstanding claims Reed has against RMS and DEC. “An expert panel, led by Andrew Rogers
QC recently provided its report to the NSW Government on the claims by Reed Construction alleging DEC and RMS owe Reed money for work on education and road projects. “RMS’ legal teams reviewed the independent determination to understand its implications and also reviewed Reed’s responses to letters issued by RMS on 14 May 2012 about Reed’s ability to carry out its contractual obligations. “RMS has assured me the projects will be completed, while ensuring public funds are used responsibly,” he said. Media Release, 28 May 2012 Lance Northey, Office of Duncan Gay MLC
Aerial view of works underway on the upgrade of the Central Coast Highway between Carlton Rd, Erina Heights and Ocean View Dr, Wamberal Source:RMS
A landmark decision for Gosford n one of the most significant commitments to regional co-operation ever seen on the Central Coast, Gosford and Wyong Councillors agreed not only to move ahead with the new Central Coast Water Corporation but to deliver even more of their services together.
I
At a special combined meeting on Thursday, May 31, the Councils agreed to set up a new joint service arm to bring together their ‘back office’ functions like information technology, human resources, finance, motor vehicles and customer service as a way of bringing about efficiency savings and better practices. “This is a landmark decision for the Central Coast”, said Gosford mayor Cr Laurie Maher. “Not only have we agreed on a model for
the Water Corporation, but by bringing together our IT platforms, pooling resources like vehicles and equipment, and streamlining our business practices, in the long term, we’ll save millions of dollars that can be reinvested in vital community services like roads, stormwater, parks and libraries.” Last November, the Councils employed expert consultants, PricewaterhouseCoopers, to conduct a cost benefit analysis of potential business models for the
newly created Central Coast Water Corporation. One of the main objectives was to find a way to transfer the functions of water and wastewater management to the Corporation without any negative impact on the rest of the Councils’ business. “Once we started looking at it under a long-term model, it quickly became apparent that combining our efforts in back office needs would bring about the biggest gains”, said mayor Cr Maher. While several models
were considered, the Councils have decided to transfer Council water and wastewater staff to the Central Coast Water Corporation in phases over five years, retain water and wastewater assets in Council ownership and lease them to the Water Corporation on a long term (40 year) lease and set up a new joint services business to meet the needs of all three organisations in areas like HR, IT, Finance, Plant and Fleet and customer service. “This is the perfect opportunity to rethink how Councils do business on the Coast,” said Wyong mayor Cr Bob Graham. “And having looked at
the research, it just makes plain good sense.” Mayor Cr Graham said “the proposal provides a best value outcome for the Central Coast community while ensuring guaranteed delivery of essential services of water and sewerage”. “This decision is all about putting the Central Coast first,” said mayor Cr Graham. “Better water services alone will go a long way to attracting business to the Coast and help stimulate the local economy, but this delivers a lot more.” A transitional action plan to map out implementation of the decision will be considered by a further
meeting of the two Councils in June. The expected $135 million in savings was modelled over a 20 year period, with real dollar benefits starting to flow through to general council activities from financial year 2018-19 onwards. During the transition period, water and wastewater services will continue to be managed by Gosford City and Wyong Shire Councils. Customers should continue to contact their local Council with any enquiries. Media Release, 31 May 2012 Martine Brieger, Wyong Council