To accept the Section 31 grant for the replacement of the heating system at the Council Offices and to delegate authority to the Head of Finance and Asset Management to enter into any necessary documentation in respect of the grant award.

1.       That the grant award, as detailed within the report, be accepted.

2.       That authority be delegated to the Head of Finance and Asset Management to enter into any necessary documentation in respect of the grant award.  

109.1        The report of the Head of Finance and Asset Management, circulated at Pages No. 149-153, advised the Committee of a grant which had been awarded to the Council by the Department for Business, Energy and Industrial Strategy (BEIS) to deliver a replacement heating system. Members were asked to accept the grant award, as detailed within the report, and to delegate authority to the Head of Finance and Asset Management to enter into any necessary documentation in respect of the grant award.

109.2        The Head of Finance and Asset Management explained that the current heating system was past its best. Given the age and inefficiency of the current gas powered heating system at the Council Offices, the replacement of the system was given a high priority within the detailed Climate Change and Carbon Reduction Audit Action Plan and a target of replacement was set for 2022 - it was envisaged that the cost of replacement would be met by the Council’s Asset Management Reserve. The application to BEIS had assessed a reduction in the carbon tonnage consumed by the Council Offices of over 92 tonnes per year which represented a reduction of 78% on the current annual gas consumption and, to enable those works, a bid for £304,200 had been made to the fund. Given the high profile of climate change neutrality in public sector organisations, the £1 billion scheme was heavily oversubscribed and the Council’s initial application was frozen but, after further due diligence on the applications, BEIS had realigned some awards and the Council’s application had now been earmarked for funding. Subject to a final feasibility report, it was anticipated that the Council would tender for a works contract in April with installation completed by early autumn. In addition to the Council’s own Officers the project would be supported by project managers previously employed on the leisure centre construction and office refurbishment to ensure the project was delivered on time and within budget. Since writing the report, the initial consultant’s report on the preferred heating system had been completed and an air source heat pump, rather than ground source, had been recommended. Officers were currently in consultation with BEIS to ensure it would continue to support the Council’s project.

109.3        A number of Members expressed concern about the use of an air source heat pump; they had understood the preference had been for a ground source heat pump which, although more costly to install, cost less to run as they did not require as much maintenance as an air source heat pump. In response, they were advised that the feasibility study had shown that, taking account of the Council Offices building and its usage, an air source heat pump would be more efficient in this instance. The report was based on the actual location, rather than the previous desktop exercise, and the distance from the car park to the building meant there would be a lot of heat loss and therefore the overall efficiency would be less when  ...  view the full minutes text for item 109