Agenda item

RESOLVED:

         I.       Noted the applications by the then Executive Director Children’s, Adults and Public Health for a further £13.721m of grant funding as part of the Public Sector Decarbonisation Scheme and, if successful, authorised the Strategic Director for Children’s Services, following consultation with the Strategic Director for Economy and Sustainability to agree the final terms and agree the Council to enter into a grant agreement with Salix Finance (the fund administrator) to receive the grant funding. Successful applicants have 10 days in which to return a signed Grant Offer Letter.

       II.       Approved, subject to the grant applications being successful, capital expenditure of up to £13.721m being incepted into the 2023/24 capital programme for Phase 3b of the Public Sector Decarbonisation Scheme (PSDS), to be funded from a mix of grant and match funding, and to spend the entire grant income for the Public Sector Decarbonisation Scheme in accordance with the terms of the grant. Also noted the match funding of £1.273m will be funded from the existing approved capital programmes, which will require virement under the Financial Regulations.

     III.       Approved, subject to the PSDS 3b grant application being successful, the inception of £803,332 match funding from the carbon offset fund, which funding was allocated by the carbon offset fund board, into the 2023/24 Economy and Sustainability capital programme for Phase 3b of the Public Sector Decarbonisation Scheme. Cabinet additionally noted that further match funding was being sought to maximise the grant received, which would be the subject of further approval. If further match funding could not be secured, then the scope of the leisure centres works would be reduced to fall within the available funding.

     IV.        Approved the appointment of the delivery partner for Stage 1 of Phase 3b following a mini-competition procurement process using the GLA and Local Partnerships RE:FIT framework agreement (National Framework Agreement for Energy Performance Contracting). Cabinet additionally noted that there were no financial implications,apart from the Investment Grade Proposal fees, if of acceptable quality, directly associated with the appointment for Stage 1, and that the financial commitment related to Stage 2, the construction works, which would be the subject of a further report.

      V.        Authorised the Strategic Director for Children’s Services to finalise the terms and enter into the Stage 1 agreement following consultation with the Strategic Director for Economy and Sustainability and the Strategic Director of Corporate Resources.

     VI.        If the bids for Public Sector Decarbonisation Scheme (PSDS) 3b Grant funding were successful, delegated authority to the Strategic Director for Children’s Services to finalise the terms of, and enter into, the Stage 2 agreement for appointment of the delivery partner for the construction/installation works, following consultation with the Strategic Director for Economy and Sustainability and the Strategic Director of Corporate Resources, to meet the short project delivery timescales set by Salix Finance as the fund administrator.

   VII.        Delegated authority to the Strategic Director for Children’s Services, following consultation with the Strategic Director for Economy and Sustainability, to finalise the list of building works and take any other necessary steps to secure the implementation of the works.

 VIII.        Noted that appointment of the Stage 1 Delivery Partner under a Call-Off Contract under the Re:Fit Framework Agreement enables projects to be delivered in phases and subsequent phases (if for example, additional funding becomes available) so that further phases of scoping/design work and works contracts may be entered into beyond the first phase of works. It should be noted that additional works contracts will not be entered into until further approval has been obtained.

REASONS FOR THE DECISION:

1.     The Ealing Climate and Ecological Emergency Strategy (CEES) set a date of 2030 to be a net zero carbon borough. A number of funding routes were being used to progress towards this target.

2.     The Department for Business, Energy and Industrial Strategy (BEIS) launched the Public Sector Decarbonisation Scheme (PSDS) in 2020, delivered by Salix Finance. The Council was successful in significant funding awards in earlier phases and is currently on site with schemes funded by Phase 3a of the scheme.

3.     The scheme was now extended to a further phase, Phase 3b, and the Council had bid for funding to enable a further seven schools to receive new low carbon heating systems in 2023/24, bid value £3,006,074; and new low carbon heating systems which will remove the use of gas at the Council’s three major wet leisure centres, bid value £10,715,176.

4.     A small proportion of match funding was required for each bid, and this had been agreed with services as detailed in paragraphs 4a and 4b of this report, at £469,570 for the schools and £803,332 for the leisure centres.

5.     The CEES committed the Council to improving its own commercial portfolio (offices, centres, etc.) and managed schools to meet the net zero carbon target by 2030. This funding would allow the Council to make progress toward these targets.

6.     Phase 3b PSDS grants were available for capital energy efficiency and heat decarbonisation projects within public sector non-domestic buildings including central government departments and arm’s length bodies in England. It had been confirmed that the retrofit of leisure centres is allowable under the scheme. The scheme allowed Public Sector Bodies including eligible central government departments and their arm’s length bodies to apply for a grant to finance up to 100% of the costs of capital energy saving projects that meet the scheme criteria.

7.     The Council bids were based on energy efficiency audits on corporate buildings, including schools and leisure centres. These were confirmed with the Strategic Property and Investment team as assets that would not be disposed of in the near term. The audit produced a costed plan for energy efficiency upgrades, and two PSDS bids were based on these plans.

8.     The Council was delivering Phase 3a of PSDS under the National Framework Agreement for Energy Performance Contracting dated 24 April 2020 (the “Framework Agreement”), OJEU reference number OJ/S S194 08/10/2019 471647–2019–EN. A further procurement through the RE:FIT framework agreement had been undertaken for the Phase 3b bid.

9.     The grant funding award decision was expected soon, and the scheme sets a very tight timescale for delivery which requires that the schemes be complete by March 2024.