Issue - meetings

           To consider the attached report of the Service Director for Economy and Enterprise.

Cllr Toby Sturgis, Cabinet member for Waste, Property, Environment and Development Control Services, presented a report which set out proposals for investing in a programme of biomass boiler installations in the schools estate. 

Officers highlighted a risk in relation to schools which transferred to academy status in the future.  The costings had been calculated on the basis of Council paying for the boiler installation and fuel, and charging the schools for the supply of the heat.  However, if a school were to transfer to academy status in the future, then there was no guarantee that the Academy would wish to continue to purchase heat from the Council.  Although the boiler would remain in the Council’s ownership, the Academy would be a new legal entity and could not be bound to agreements made by the predecessor maintained school.  The associated risks and actions taken to mitigate these were set out at paragraphs 30-32.

Resolved:

a.    To agree a commitment to allocate capital funding for the programme of works as outlined in paragraph 12 (up to £2.73 million on funding to deliver a £3.3 million negative Net Present Value to the authority over the life of the scheme).

b.    To delegate to the Service Director for Economy and Enterprise to implement the programme, in consultation with the Cabinet Member for Waste, Property, Environment and Development Control Services, the Service Director for Finance and the Service Director for Business Services.

Reason for Decision

The project would deliver a £3.3 million negative Net Present Value to the authority over the list of the scheme, paying back more than the investment over 20 years, including the inflation effect on money and generating an overall surplus due to the Governments Renewable Heat Incentive (RHI).

In addition, the project would reduce the Council’s carbon footprint by 14% of the corporate carbon emissions reduction target. Other benefits included a projected £1 million saving from reduced carbon trading costs, and employment generation and improvement in woodland management by stimulating a demand for biomass fuels.