Decision details

Cabinet considered a report which reminded Members that the Borough Council had entered into an arrangement with Local Partnerships to deliver the Re:fit energy performance contract.

Following a tendering exercise Ameresco were the Council’s preferred partner in delivering this project.

An initial High Level Appraisal (HLA) of 15 council buildings and in excess of 800 street lights has identified a guaranteed saving on a payback of 9.87 years and a rate of return of 10.13%.

The HLA document offered the “worst case” scenario that Ameresco guaranteed in line with the contract. When moving to Investment Grade Proposal (IGP) stage Ameresco were committed to providing an improved position on guaranteed payback. In the event that they were unable to achieve this then the Council was not required to pay for this work.

The Defined Performance Parameters guarantee a minimum emission reduction of at least 478 tonnes CO²

A detailed monitoring and verification plan would be developed and agreed during the IGP stage to ensure that both parties were able to demonstrate and agree savings for the life of the project.

With appropriate approvals work could begin in March 2019 with estimated completion in July 2019.

The Leader explained that as Amaresco were continuing to find invest to save options he proposed to amend recommendation 2 to increase the capital programme to up to £2,000,000 to enable inclusion of those additional proposals.

Cabinet asked that in the monitoring of the contract that the CO² savings  be included.

The Corporate Performance Panel had considered the report and endorsed its proposals with some minor additions which were taken on board by Cabinet, and would be monitoring the progress of the contract.

RECOMMENDED:  1)       That all schemes be progressed to Investment Grade Proposal (IGP) stage at the tendered price of £20,500.  The capital programme to be amended accordingly and funded from the Major Projects Reserve.

2)       That provision be made in the capital programme for it to be increased by up to £2,000,000 to progress schemes outlined in Appendix A to the report- High Level Appraisal and additional schemes identified in the IGP, and funded by borrowing.

3)       That delegated authority be granted to the Executive Director for Commercial Services and Deputy Chief Executive in consultation with the Council Leader to authorise go ahead for the identified schemes assuming that they remain at, or offer improved payback terms than those identified in Appendix A, High Level Appraisal in the report.

4)       Enabling Works may be required to allow installation of some Energy Conservation Measures (ECMs), these will be identified at the IGP stage.  Delegated authority to be given to the Executive Director for Commercial Services and Deputy Chief Executive in consultation with the Leader to authorise this work where cost effective and to report this expenditure through the monthly monitoring report.

Reason for Decision

Moving to IGP will provide a further, more detailed assessment of which ECMs can best deliver the council guaranteed energy and financial savings. The defined performance parameters are:

Minimum emission reduction of at least 478 tonnes CO2

Maximum payback no more than 9.87 years

Amending the capital programme will provide the necessary funds to finance the project.