1.       CROSS-CUTTING ISSUES AND IMPLICATIONS

2.    INTRODUCTION AND BACKGROUND

2. 

2.1     As part of Action 7.1 to “Deliver Maidstone Borough Council 2030 Net Zero Commitment” of the Council’s Biodiversity and Climate Change Action Plan adopted on 21st October 2020, officers are seeking to secure funding support for the costs of design development, architectural design and installation of low-carbon technologies, insulation, and glazing to substantially cut the Council’s carbon from one of its primary carbon emitters.

2.2     Maidstone House and the Link Building are the second largest emissions source of the Council accounting for 17.6% of total emissions (2022-23).

2.3     In November officers submitted a largescale bid for Phase 3c of the Public Sector Decarbonisation Scheme (PSDS) of £3,126,536 to retrofit Maidstone House.

2.4     This grant is in addition to the Council’s Capital Contribution of £648,664 needed to ensure eligibility for the funding, with a total project cost of £3,775,200 required to upgrade Maidstone House and the Link Building.

2.5     The PSDS grant application includes

(i)                   Project management costs for a consultant organisation to coordinate the project,

(ii)                 Cost for detailed designs of each aspect of the project,

(iii)                A replacement low carbon heating system,

(iv)                Replacement glazing,

(v)                 Fully insulating the building,

(vi)                Upgrading the lights to LED, and

(vii)              Installing solar PV on the link business terrace roof.

2.6     It has been estimated that this project will have an annual savings to Council  of £51,875 and a carbon reduction of 361.8 tCO2e per year.

2.7     Should the funding be awarded, the grant will be paid over several milestones throughout 2024 to 2025 financial year, with the condition that the money be spent by March 2025.

2.8     This is a large-scale project, with four major elements that require design, tendering, and funding in quick succession to ensure the project can be delivered in line with the PSDS conditions. The four main aspects of the project are:

• Heating: Designs/tendering and ordering a replacement 4-pipe chiller heat pump that is capable of simultaneous heating and cooling all 6 floors of Maidstone House and 4 floors of the Link Building. To be housed in a new plant room installed in the roof.

• Insulation: Architectural detailed drawings and planning permission, for insulating the external walls, insulation under the floors and the under croft. Appointing contractors to insulate the building in conjunction with glazing being replaced.

• Glazing: Upgrading the glazing.

• Solar PV: Design and structural appraisal of the Link building roof, and instillation for a 16kWp solar panel array comprising 42 no. 385W panels.

2.9     Funding will be distributed at different milestone dates agreed. A detailed project program has been established in collaboration with Salix, as illustrated in Figure 1, outlining specific milestone dates for funding distribution. Grant funds are contingent on adherence to this timeline, emphasising the necessity for officers to have the authority to spend the allocated funds as needed to ensure the seamless execution of each project element within the specified timeframe. This flexibility is crucial for meeting the PSDS conditions and completing the project within the timeframe.

Figure 1: Project Programme (red indicates contingency time)

3.        AVAILABLE OPTIONS

3.1     Option 1: Do nothing

3.2     Option 2: Invest in energy saving measures and delegate authority to the Director of Finance, Resources and Business Improvement to select and appoint contractors for applicable services as necessary to ensure the project is completed within the timeline.

4.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

4.1     The preferred option is option 2.

5.       RISK

5.1     There are a number of risks associated with this proposal.

·        Project risk – Office Operational Interruptions, tenancy disruptions, and health and safety. Different elements of the project will be phased to minimise disruption as part of the project programme. Staff and stakeholders will be engaged and updated through the programme. All risk assessments to be reviewed and updated.

·         Delay risks – Timings to design, procure and deliver the project could be lengthy and a hold up in one area which could impact the overall completion date. Lead time for equipment orders has been impacted by shortages of microchips, solar panels, supply chain and logistics disruptions, and other economic factors.

·         Funding risks – Costs are higher than expected and amendments during project development stages could result in increased costs and programme delays.

·         Site specific risks – 1) Electrical capacity feasibility studies have shown the incoming supply is large enough, however a DNO application is needed to check there is sufficient capacity in the area 2) Link Building roof weight allowance for PV exceeded. Building weight allowances have been checked as part of scoping for the array quoted. Full structural calculations are required prior to commissioning any works.

5.2     The above risks, including the risks if the Council does not act as recommended, have been considered in line with the Council’s Risk Management Framework.  We are satisfied that the risks associated are within the Council’s risk appetite and will be managed as per the Policy.

6.       CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK

7.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

7.1     The proposed next steps are set out below should Grant Funding be Awarded.

8.        REPORT APPENDICES

None.