Agenda item

The Board will receive feedback from the Energy and Environment Officer will on the Refit 2 project.

 

Click here to view a recording of this item on You Tube

 

The Corporate Projects Programme Manager introduced the report and provided an overview on the content, the new areas of reporting and areas of development for each project.  The Board was informed that at the end of February a new section on outputs/ outcomes that the project was looking to achieve would be added to the template.

 

The Board advised that the Robert Wiseman, the Council’s Energy Efficiency Officer and Environment Officer was present to answer any questions relating to the Re-Fit Scheme.

 

The Board considered each of the red RAG ratings as set out below:

 

Re-Fit Scheme

 

The Energy and Environment Officer provided an overview of the project, a summary of the key points are set out below:

 

•           £3.8m grant towards delivering the project – tight timescales for delivery and installation.

•           Contract with Ameresco who issued their final detailed design May 2021.

•           Grant funding required completion of installation works (and all grant monies to be spent/allocated) by  end June 2022.

•           Heat pumps installed and operational by end June 2022 with the  exception of BMS controls, owing to long lead time for equipment delivery..

•           Timescales did not allow for ‘stress testing’ as heat pumps installed in height of summer.

•           In colder winter months some sites have since struggled with lower flow temperatures provided by the heat pumps and some sites have had to revert to gas boilers.  Progress being made to ensure sites are operational in line with the expectations.

•           Discussions ongoing with Ameresco to ensure guarantee savings are delivered as promised with their detail design.

•           Outstanding BMS controls – Lynnsport works to be completed by 31st March 2023 and at St James’ works to commence mid-March.  Oasis BMS upgrade was completed by end December 2022.

•           Control Strategies can now be finalised to integrate heat pumps with existing heating and distribution systems as this was a decarbonisation project.

•           There will be times when boilers will still be called upon to boost flow temperatures and maintain building temperatures; alternative would be to replace all existing heating distribution systems, which would not be cost effective or possible within the grant envelope.

 

Officers responded to questions in relation to:

 

•           Concerns regarding no manufacturing base or supply chain in the UK for producing the heat pumps or for spare parts.

•           Maintenance contracts/costs of both gas boilers and heat pumps to be set out in one contract.

•           Heat pumps not working at St James Swimming Pool.

•           Poor quality of water at some sites seen to be a health and safety issues, although water quality issues were associated with closed systems and not water supplied to showers/drinking water etc.

•           Concerns in relation to heat pumps and new technology for the Council’s housing schemes at Parkway and a private development in Heacham to make the houses as green as possible.

•           Competence of contractor appointed.

•           Financial summary and budget contingency.

•           Insulation upgrades were installed where possible.

•           Control Strategies in operation for majority of sites/thermostatic control system.  Needs to be fine tuned to optimise performance.

•           Conditions attached to grant funding/timescales for delivery and finalisation of the project by end of June 2022.

•           June 2022 not in a position to undertake stress testing.

•           Remedial works required.

•           Alternatives such as solar water heating.

 

The Leader, Councillor Dark commented on comments made by Members and explained that there was a clear distinction between the Refit project going into existing systems in larger buildings that may not be environmentally friendly or energy efficient buildings versus smaller housing who were installing their own heat source pump into a building which was fuel efficient. 

 

Councillor Morley commented on the process and added that in the previous report the RAG rating was green and in this report was now red and added that the information showed the issues that were not previously unearthed before.  Councillor Morley further commented that the report was to be commended but raised questions on, for example, if the correct supplier was chosen, should some money been held back, and highlighted things to look at in the future.

 

Enterprise Zone – Infrastructure

 

The Assistant Director, Property and Projects provided an update, a summary of the key are set out below:

 

·         Road construction – worked well, contractor appointed, on site and estimated to complete October 2023, NCC acting as highway consultant managing project for the Council, currently anticipated to be delivered on time and within budget.

·         Long running engineering works project which may be impacted by the weather.

 

Officers responded to questions in relation to:

 

·         Financial Summary – current budget spent to date and predicted forecast spend during 2023.

 

The Assistant Director, Property and Projects informed the Board that there was some refining to be undertaken on the financial reporting figures.

 

Enterprise Zone – Phase s 1 & 2

 

Officers responded to questions in relation to:

 

·         Concern expressed on the cost and £2m overspend of the spec units. 

·         Ownership/risks  of the Morston Point drains.

·         Total contingency budget.

·         Capital spend to date and projected spend for March and April 2023.

·         Disposal route for all properties identified and subject to contract.

 

The Assistant Director, Property and Projects explained that the Council had received funding from the New Anglian LEP and Phase 1 was nearing completion for the provision of a pair of office buildings and light industrial buildings.

 

The Assistant Director, Property and Projects explained that there was no overspend on the spec units, tenders had gone out for Phase 2 through the framework contract for NORA and tenders had come back more expensive than anticipated and outlined the work being undertaken to look at funding opportunities and Members would be presented with the information once it was to hand.  It was highlighted that the only money spent to date was the going out to tender exercise.

 

Major Housing – Bus Station and NCC Library Site (St Edmunds Terrace, Hunstanton)

 

The Interim Project Delivery and Technical Advisor explained that the decision had been taken to remove the project from the Council’s Capital Programme as it was behind schedule and would be the last time the Board would receive an update on this project.

 

St George’s Guildhall and Creative Hub

 

The Interim Project Delivery and Technical Advisor explained that this was a more difficult and challenging project and provided an overview as to why the project had a red RAG rating and informed the Board that future updates would be more detail on de-risking as much as possible.

 

The Deputy Leader, Councillor Middleton outlined the two main reasons why there was a red rating – in relation to timing in that the tender exercise was behind between 2 to 3 months.  It was noted that a submission had been made to Government regarding re-phasing timescales on a number of projects.  The second area of the red rating what in relation to the funding and that this would continue to be red for the £12m project, with £9m secured and until such time as the Council either obtained the initial funding to top up the £3m or at the end of the design phase setting out the actual cost either to re-prioritise the available funding or identify alternative funding.

 

Officers responded to questions in relation to:

 

·         Reasons why the tender exercise had been delayed.

·         Timescales and expenditure.

·         Reason for delays for the Design Team.

·         Concerns regarding availability of a Design Team to deliver project.

·         Design Team -   100 companies expression of interests to date.

·         Cost of Design Team/fees.

·         Budget and necessary works.

·         Submission made to Government to reprofile projects/ timescales.

·         Number of review processes whilst undertaking stages 2 and 3.

 

The Leader, Councillor Dark outlined the reasons why the Council should continue to concentrate on the funding gap.

 

The Chair, Councillor Blunt invited the Board to comment on any other issues which had not received a red rating.

 

Other Issues raised by the Board

 

Active and Clean Connectivity – West Lynn Ferry

 

The Interim Project Delivery and Technical Advisor informed the Board that the West Lynn Ferry was not a major project or part of the ACC project and explained that a separate feasibility study was being explored with NCC.

 

The Leader, Councillor Dark and Deputy Leader, Councillor Middleton outlined the work on a feasibility study which was jointly being undertaken and funded between the Borough Council and NCC.

 

Parkway

 

In response to a question from Councillor Morley on the overall status and condition regarding emergency road access to the site was yet to be resolved, the Chair Councillor Blunt commented that he did not believe there was an issue but would seek confirmation and respond direct to Councillor Morley.

 

Following comments from Councillor Parish on resistance to development, the Chair, Councillor Blunt advised that a recent meeting had been held with Lovells and residents to discuss the process of building out and that solutions would be sought to address the issues raised.

 

Hunstanton Southend Road

 

Councillor Morley informed the Board he had visited the site to see how the project was progressing and explained that Lovells had not updated their boards around the site and also expressed concern that the financial summary last month the current spend to date was £1.4m, this month £1.9m and at year end £3.582m and asked if the figures reported were accurate and added that he felt Project Managers were not looking at the detail.

 

The Chair, Councillor Blunt commented that this was a point well made over the whole process and that the level of accuracy timing of financial information and would ask the Project Team to look at the points made by the Board.

 

In conclusion, the Chair, Councillor Blunt commented that the Board had moved on an incredible long way since the start of the process and the information given in the Project Highlight reports now was much more challenging for the officers to produce and outlined the benefits to the Board.

 

The Chair, Councillor Blunt and the Deputy Leader, Councillor Middleton congratulated the officers on the work undertaken to date.