Agenda item

Report from the Interim Strategic Director of Finance and Customer Services.

Recommendations:

It is recommended that Cabinet:

1.    Approve the further use of the Council’s Decarbonisation Capital Budget for the original five buildings to a total value of up to £2,321,985. This could be reduced if the project moves at a greater pace than expected.

2.    Approve a further allocation of up to £1,000,000 for the connection costs of the District Heat Network to Council buildings from the Council’s Decarbonisation Capital Budget, should Officers not agree and finalise funding via PSDS.

3.    Approve entering into negotiations, with the organisation which submitted a bid, within the parameters of procurement law to achieve the best value for money with the intention to connect the five buildings to a heat network and subsequently enter into a supply agreement, if financially feasible.

4.    Approve feasibility, scoping and costs estimate work to be carried out on the additional four buildings and to delegate authority to the Assistant Director of Property and Facilities Services in consultation with the Strategic Director, Finance & Customer Services and Cabinet Member for Transport, Jobs and the Local Economy to allocate necessary funds from the Capital Programme, subject to satisfactory feasibility and project review.

5.    Delegate the authority for award and any necessary technical changes to the above scope of works of the nine buildings listed above to the Assistant Director of Property and Facilities Services in consultation with the Strategic Director, Finance & Customer Services and the Cabinet Member for Transport, Jobs and the Local Economy.

Consideration was given to the report which provided an update and requested approvals on three key areas relating to the Council Building Decarbonisation Programme. These were:

• The delivery of Public Sector Decarbonisation Scheme (PSDS) Project on Council buildings.
• The conversion of heating systems within Council buildings, through PSDS, to accept a District Heat Network (DHN) connection.
• The outcome of the Procurement of a supplier to provide heating through a DHN.

In the Cabinet Report of 18 September 2023, Cabinet approved a programme of decarbonisation projects funded by PSDS and the Council as well as the overall approach to procure a supplier of heat via a DHN. The approved programme specified five Council buildings (Riverside House, Civic Theatre, Clifton Park Museum, Orchard Centre and the Town Hall). As well as the Energy Conservation Measures (ECM’s), the works included a series of enabling works in preparation to connect to a DHN. To facilitate the connection to a DHN, Cabinet also approved in the September report,

the overall approach to procure a supplier of heat via a DHN.

Cabinet approved that following completion of these works and the procurement, a report would be submitted to Cabinet detailing the outcome of the procurement, its financial feasibility and recommendations for heat delivery for the five buildings. If financially feasible, and following a return to Cabinet for approval, the Council could then enter into a heat delivery contract to provide the heat to these buildings upon final connection. This report therefore provided an update on the scheme, summarised the challenges experienced, and presented a proposed approach to decarbonise the five buildings affected and presented four further sites for future decarbonisation.

The financial implications associated with the report were included within exempt Appendix 1. As a result of delays to the Heat Network development, grant funding deadlines would not be met, so therefore if the Council was to progress the proposal, additional Council capital funding would be required from the approved Capital Decarbonisation budget. In addition, there were ongoing revenue implications if the proposal was to be accepted.

Resolved:

That Cabinet:

1. Approve the further use of the Council’s Decarbonisation Capital Budget for the original five buildings to a total value of up to £2,321,985. This could be reduced if the project moves at a greater pace than expected.

2. Approve a further allocation of up to £1,000,000 for the connection costs of the District Heat Network to Council buildings from the Council’s Decarbonisation Capital Budget, should Officers not agree and finalise funding via PSDS.

3. Approve entering into negotiations, with the organisation which submitted a bid, within the parameters of procurement law to achieve the best value for money with the intention to connect the five buildings to a heat network and subsequently enter into a supply agreement, if financially feasible.

4. Approve feasibility, scoping and costs estimate work to be carried out on the additional four buildings and to delegate authority to the Assistant Director of Property and Facilities Services in consultation with the Strategic Director, Finance & Customer Services and Cabinet Member for Transport, Jobs and the Local Economy to allocate necessary funds from the Capital Programme, subject to satisfactory feasibility and project review.

5. Delegate the authority for award and any necessary technical changes to the above scope of works of the nine buildings listed above to the Assistant Director of Property and Facilities Services in consultation with the Strategic Director, Finance & Customer Services and the Cabinet Member for Transport, Jobs and the Local Economy.