Agenda item

To consider the report of the Strategic Director for Corporate Resources.

Agreed:

RECOMMENDED that Council approve:-

(1) for the PSDS 3b project (RAMM & Riverside) not proceed any further, following consideration of the outcomes of the Year 1 exploration, design, and pricing stages; and

(2) for Officers to allocate time to progress matters in preparation for future funding opportunities to secure monies required to decarbonise both sites.

Reason for Decision: As set out in the report.

The Executive received the report which summarised the outcome of the work undertaken to date in exploring the implementation of decarbonisation measures at Royal Albert Memorial Museum (RAMM) and the Riverside Leisure Centre. This was funded by the Public Sector Decarbonisation Scheme 3b grant from central government. The report also requested that due to challenges at both sites and the immovable grant funding spend deadline, that the project presented too much risk to the council to proceed.

Particular reference was made to:-

·         the sites had the highest carbon emissions across the Council's corporate estate;

·         the grant had commenced in March 2023 for a two-year period, with the first year focussed on feasibility and design to explore heat decarbonisation measures;

·         the outcome of the first years’ work had identified significant challenges in delivering within the time frame, budget and quality parameters required at both sites. These challenges could not be overcome and sufficient progress was made in the remainder of this financial year to meet requirements of the grant;

·         the project ultimately presented a large risk, exposing the Council to unacceptable levels of uncertainty and financial risk;

·         the money spent to date had not been wasted and both sites remained a high priority and the Council had extensive feasibility and technical design information which could be built on; and

·         the Council was in a strong position for future grant funding and further Public Sector Decarbonisation Scheme applications, with an expected funding announcement in late autumn.

Cllrs Mitchell and Moore as opposition group leaders spoke on the item and raised a number of points and questions, which were responded to by the Leader, further in this minute.

Councillor Jobson as an opposition group leader had submitted questions prior to the meeting which were responded and are supplemented to the minutes.

The Leader spoke on this item and in responding to questions and questions raised, made the following points:-

·         this was a resolved matter for the Executive approve;

·         the total costs incurred to date by the Council were £638,643.93 and the total grant money paid was  £465,701.55, which left an outstanding balance of £172,942.38 which would be paid to the Council on 16 October 2024 leaving zero cost to the Council;

·         officers had been managing the project to try and complete the work on time but it was not possible and Executive Members had not been contacted by contractors;

·         he was satisfied with the information provided from Officers on this matter and that the project couldn’t be completed on time;

·         the Riverside work was 11 weeks late from the original deadline for the submission and there was a lack of detail provided to the Council including contractual conditions and risk allocation;

·         the proposed recommendations would prevent the Council from inheriting a large cost;

·         no Council money had been spent, other than what had been retained from the government grant and the allocated £871,000 had not been spent and remained in the budget; and

·         thanks were given to the officers for their hard work and due diligence during this process particularly in addressing difficulties and protecting the RAMM which was a key asset.

During the discussion, Executive Members raised the following points and questions:-

·         thanks were made to the officers, particularly the Net Zero Project Manager for their due diligence and work undertaken for the report;

·         the process had been a complex and challenging task and although it wasn’t the outcome that was hoped for it was the right decision. The work undertaken, however, had been valuable, particularly the feasibility study;

·         no money had been wasted on the project and had been done in an appropriate way and there would be further opportunities ahead as Net Zero work continued;

·         it was important to recognise that this was a Government scheme and had a range of challenges and conditions outside of the Councils control;

·         the Council would continue to work to reduce carbon emissions and would always take the management of its finances seriously to ensure projects were delivered appropriately;

·         work on feasibility was undertaken carefully and a number of decision points were reached before it was decided it was no longer feasible. The work undertaken would help for the next project;

·         despite the coverage of the item, the report showcased appropriate risk assessment and management to prevent a significant financial risk to the Council;

·         knowing the background detail of the work carried out, highlighted why the project could not proceed further; and

·         it was important for all Members to avoid advocacy for contractors in matters like this and to be mindful when approached by a contractor going forward.

The Leader summing up the debate, advised that he didn’t want a debate with opposition leaders, but there were mechanisms available to them including a conversation with him.

The Leader moved the recommendations, which was seconded by Councillor Wright, voted upon, and CARRIED unanimously.

RESOLVED that the Executive approve:-

(1) for the PSDS 3b project (RAMM & Riverside) not proceed any further, following consideration of the outcomes of the Year 1 exploration, design, and pricing stages; and

(2) for Officers to allocate time to progress matters in preparation for future funding opportunities to secure monies required to decarbonise both sites.