ECC Energy Services Company and District Heating Procurement
To consider the report of the Principal Project Manager (Development) City Development.
Scrutiny Committee – Resources considered the report at its meeting on 27 January 2016 and its comments will be reported.
Additional documents:
Decision:
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Agreed
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That it is recommended to Council that delegated power is given to the Chief Executive & Growth Director for the following:-
(1) Exeter City Council to become a shareholder of the public sector ESCo when it is formed in Spring 2016;
(2) the appointment of Directors to the Public Sector ESCo Board;
(3) Exeter City Council, subject to successful procurement, approves the long term purchase of competitively priced low carbon heat from the network for the Civic Centre and Exeter Active;
(4) Exeter City Council, subject to successful procurement, commits to invest £147,000 in the city centre and SW Exeter Joint Venture companies; and
(5) to explore the opportunities of working with a Strategic Partner, if appropriate, to include as a project the proposals contained in the report.
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Reason for Decision:
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As set out in the report. |
Minutes:
The report of the Principal Project Manager (Development) City Development was submitted updating Members on the formation of an Energy Service Company (ESCo) in partnership with the Royal Devon & Exeter NHS Trust, University of Exeter, Devon County Council, Teignbridge District Council and East Devon District Council for the purpose of procuring private sector partner(s) and funding to deliver District Heating Networks in Exeter (city centre to Wonford) and at SW Exeter (connecting Energy from Waste facility at Marsh Barton to SW Exeter).
The Principal Project Manager commented that the six public sector partners had received collective legal advice.
In response to a Member, the Chief Executive & Growth Director clarified that the procurement would be in accordance with legal advice. He also proposed an additional recommendation ‘to explore the opportunities of working with a Strategic Partner, if appropriate, to include as a project the proposals contained in the report.’
This additional recommendation was moved by the Leader and seconded by Councillor Sutton.
Scrutiny Committee – Resources considered the report at its meeting on 27 January 2016 and its comments were reported.
RECOMMEND to Council that delegated power is given to the Chief Executive & Growth Director for the following:-
(1) Exeter City Council to become a shareholder of the public sector ESCo when it is formed in Spring 2016;
(2) the appointment of Directors to the Public Sector ESCo Board;
(3) Exeter City Council, subject to successful procurement, approves the long term purchase of competitively priced low carbon heat from the network for the Civic Centre and Exeter Active;
(4) Exeter City Council, subject to successful procurement, commits to invest £147,000 in the city centre and SW Exeter Joint Venture companies; and
(5) to explore the opportunities of working with a Strategic Partner, if appropriate, to include as a project the proposals contained in the report.
ECC Energy Services Company and District Heating Procurement
To consider the report of the Principal Project Manager (Development) City Development.
Additional documents:
Minutes:
Councillor Thompson wished to declare an interest relating to the principle of District Heating Schemes, and following reassurance from the Principal Project Manager (Development) she confirmed she had no disclosable pecuniary interest in the proposed scheme.
The Principal Project Manager (Development) presented a report which proposed the formation of an Energy Service Company (ESCo) in partnership with the Royal Devon & Exeter NHS Trust, University of Exeter, Devon County Council, Teignbridge District Council and East Devon District Council for the purpose of procuring private sector partner(s) and funding to deliver District Heating Networks in Exeter (city centre to Wonford) and to the south west part of Exeter (connecting Energy from Waste facility at Marsh Barton to the south west area of Exeter) (SW Exeter). A copy of the draft Heads of Terms for Public Sector ESCo was attached as an appendix to the report.
A Member sought further clarification on the legal advice received, and the Principal Project Manager stated that that the six public sector partners had collective legal, financial and technical advice and that ECC legal team would review the agreements once finally drafted and before they are entered into. He also clarified that the ESCo shares would be held by the individual partners and would clarify the position in terms of registration at Companies House.
Scrutiny Committee - Resources noted the report and requested that Executive recommend Council to approve delegated power to the Chief Executive & Growth Director of Exeter City Council for the following:-
(1) for Exeter City Council to become a shareholder of the public sector Energy Service Company (ESCo) when it is formed in spring 2016;
(2) the appointment of Directors to the Public Sector ESCo Board;
(3) subject to successful procurement, that the long term purchase of competitively priced low carbon heat from the network for the Civic Centre and Exeter Active be made; and
(4) subject to successful procurement, that an investment of £147,000 be made in the city centre and South West Exeter Joint Venture companies.
Councillor Thompson wished to be recorded as abstaining from the vote.