Fast ferry terminal put on hold

Gosford Council has resolved not to accept any tenders for the construction of the Ettalong fast ferry terminal.

As a result, construction of a terminal and wharf for a fast ferry from Sydney to Ettalong has been put on hold indefinitely.

Council officers had recommended that a tender from Austral Construction Pty Ltd should be accepted.

But councillors said they would not accept a tender because there was no proof from Fast Ships Ltd that the ferry service would ever be a viable reality.

The council also resolved to write to the State Government making: "Urgent representation to the Minister seeking assurances that the special grant of $4.3M will be available should Fast Ships be able to demonstrate financial viability in the future."

Cr Lynne Bockholt was not in favour of involving the council in further dealing with the State Government and said council should simply refuse to accept a tender, taking no further action.

She said: "I want to avoid a sword hanging over council while Fast Ships tries to raise the money for five or six years.

"Let's say yes or no and get it over with."

Mayor Cr Robert Bell and Cr Geoff Preece agreed with her.

Cr Bell said: "The ferry is a transport solution for the State Government and we need to be careful about council being involved."

Deputy mayor Cr Craig Doyle, along with Crs Chris Holstein, Judith Penton, Daniel Cook, and Malcolm Brooks voted in favour of involving the State Government.

"Council has to stay a player and I don't want to let the State Government off the hook," said Cr Doyle.

"I want to do everything in our power to get a ferry."

Council, at its meeting on October 22, agreed to call formal tenders from the companies which had registered their interest.

The council agenda paper gave detail of the tender process.

"Austral Construction Pty Ltd is the lowest tenderer.

"Austral constructed the Terrigal seawall for Gosford City Council ($3.6 million) and the standard of work was well executed and completed within the scheduled program.

"Austral have extensive experience with marine construction and recently completed two projects valued at $7.5 million involving a wharf and break wall at Cairns.

"Austral advise they will endeavour to use local suppliers and sub-contractors to maximise local purchasing.

"Based on this assessment, Austral was the preferred contractor.

"The estimated total project cost including terminal and wharf tender, roadworks tender, utility adjustments/signage, foreshore reserve improvements, design/consultants/project management and a contingency of 7.5% amounts to $4.3 million.

"The State Government has approved a special grant of $4.3 million to Gosford City Council to build the ferry wharf, terminal and associated infrastructure.

"The contingency allowance is lower than the preferred 10% normally allowed on a project of this nature.

"Agreement has been reached with Fast Ships Ltd to pay up to $100,000 of any project cost over-run.

"It is anticipated that a similar agreement will be reached with the State Government.

"This will increase the contingency to approximately 10% and reduce the likelihood of Council incurring expenditure on this project.

"However, if significant contractual problems are encountered, Council would be responsible to meet the cost."

Jonathan Reichard, council agenda FS.079, May 27