Rattler Railway Project

Rattler Project April 26 – 2018

Council endorsed the increased budget to complete the Mary Valley Rattler Project for the amount of $2,353,102.55 at today’s ordinary meeting (April 26, 2018).

There is no doubt the project will benefit the community for many years to come, however Council is disappointed and frustrated at the ongoing increased costs and delayed launch.

Although Council acknowledges major projects, especially restorative projects such as the Rattler Railway, can see some areas of unforseen challenges that may require further funding or delays, Council did not want or expect to see the degree of increased budget or delays for the delivery of the project.

The Mayor, with the support of councillors has called for an independent review into the project, specifically to determine the factors leading to the increased budget requirements and what improvements can be made to future Project Management practices.

This review will be performed by an external 3rd party and delivered back directly to Council in July 2018, as it is important for the community and Council as a collective group to have confidence in the way Council manages future projects.

Gympie Regional Council

The additional works and required budget increase includes:

• Crescent Road Rail Bridge structural capacity
• an additional 1450 sleepers above the 17,822 required
• the reinstatement of the tamping of the track (tamping was removed from the project plan and budget at the December 2017 Ordinary Council meeting)
• minor variations including additional bridge inspections for certification, extra works at station road rail bridge and restoration of Amamoor turntable.
• building works including accessibility work for platform, additional car parking and landscaping, security system and roof work
• refurbishment of locomotive 967 to an enhanced level

Budget breakdown:

	Description	Cost
1	Track, Bridges, tamping	$597,575.00
2	Contract Administration Services	$189,777.55
3	Additional Sleepers	$311,750.00
4	Minor Variations	$280,000.00
5	Contingency	$140,000.00
6	Technical Maintenance Plan	$35,000.00
7	Building Works	$471,000.00
8	Rolling Stock	$328,000.00

Budget Summary

Track and Bridges Budget as at December 2017	$11,500,783.00
Additional funds required	$1,554,102.55
Updated Track and Bridges Budget	$13,054,885.55
Refurbishment of Rolling Stock as at December 2017
	$1,420,125.00
Breakdown – C17 Locomotive 967	$1,268,800.00
Rolling Stock (Completed)	$151,325.00
Additional Funds required – C17 Locomotive 967	$ 328,000.00
Updated Refurbishment of Rolling Stock	$1,748,125.00
Building & Station Works as at December 2017	$1,250,000.00
Additional Funds required	$471,000.00
Updated Building & Station Works	$1,721,000.00
Project Budget as at December 2017	$14,500,783.00
Updated Project Budget	$16,853,885.55
State Government funding	$7,000,000.00
Council funding as of April 26 2018	$9,853,885.55

It should be noted that it is expected that the final capital cost will be approaching $17.5 million as Council is considering some further items as part of the 18/19 budget. The draft budget will be released late May for community feedback.

Council also endorsed an increase to the loan for the Rattler Rail Company of $600,000, making the total loan of up to $1,100,000.

The initial loan of up to $500,000 was endorsed by Council at the December Ordinary meeting, the increase of $600,000 endorsed today is due to the operational delay.

Date for completion of infrastructure is not confirmed, with a working date in place for mid June 2018, subject to weather. Once this work is complete, certification and training will follow.
Date will be released on confirmation of completed additional work.

Council is continuing with a detailed legal review of the original specification prepared for it for the restoration of the track and bridges following previous serious concerns raised regarding its adequacy.