Issue - meetings

To receive a report from the Director – Regeneration & Environment seeking a number of approvals relating to the mobilisation and operation of Lee Valley Heat Network (LVHN).      (Report No.11)

(Key Decision – Reference Number 4080)

Please note Item 2 (Report No.16) on the Part 2 agenda also refers.

Members are asked to note:

·                The attached report is due to be considered by Cabinet on 17^th June 2015.  Subject to Cabinet approval of the report, Council is only being asked to approve the addition of the project development costs identified within the Capital Programme.  The specific recommendation for consideration by Council has been highlighted in bold within the report.

·                The decision made by Cabinet on 17^th June 2015 will be reported to Council as part of the Council amendment sheet tabled at the meeting.

RECEIVED the report from the Director of Regeneration and Environment (No.11) regarding the mobilisation and operation of the Lee Valley Heat Network.

NOTED the report had been submitted for consideration in conjunction with Report 16 on the Part 2 Agenda. (Min.41 refers) following its approval by Cabinet on 17^th June 2015.

AGREED to note the decisions taken by Cabinet (17^th June 2015) relating to the Governance, Finance and Procurement matters identified in relation to the Lee Valley Heat Network and in support of the decision taken under Part 2 (Min.41 refers) of the agenda to approve (as recommended by Cabinet) the inclusion of the £2.143m project development costs within the Council’s approved Capital Programme.

Councillors Oykener, Sitkin and Taylor declared non-pecuniary interests in this item.

A report from the Director of Regeneration and Environment is attached. This seeks a number of approvals on the mobilisation and operation of Lee Valley Heat Network (LVHN). (Report No.16, agenda part two also refers) (Key decision – reference number 4080)

(Report No.11)

(8.50 – 8.55 pm)

Councillor Alan Sitkin (Cabinet Member for Economic Regeneration and Business Development) introduced the report of the Director of Regeneration and Environment (No.11) regarding the mobilisation and operation of the Lee Valley Heat Network (LVHN).

NOTED

1.               That Report No.16 also referred as detailed in Minute No.24 below.

2.               The funding requirements and timescales involved as set out in detail in the report and drawn to Members’ attention by Councillor Sitkin.

3.               The detailed recommendations set out in section 2 of the report and reflected in the decisions below.

4.               That appendix 1 to the report set out the proposed governance structure; option C was being recommended as the preferred structure.

Alternative Options Considered: NOTED the following alternative options which had been considered as set out in section 4 of the report:

·       Do nothing: this would lose the significant economic, environmental and social benefits forecast to be delivered by LVHN.

·       Not to change the Articles of Association for HoldCo: now that the LVHN project was fully developed, it was appropriate to update the Articles to reflect the matters dealt with in this report, and to generally ensure they were up to date and fit for purpose.

·       Not to provide the funding to mobilise LVHN Ltd and to enable it to operate for the first year.

·       Options A, B and C: options A and B were discounted for the reasons explained in Appendix 1 of the report.

DECISION: The Cabinet agreed to

1.               Confirm LVHN Ltd. As the Holding Company (HoldCo) (and of which Enfield was the sole shareholder) and approve the setting up of a wholly owned subsidiary company (OpCo) to undertake project delivery, as the method of governance and delivery for the LVHN business.

2.               Approve the amended Articles of Association (including establishment of an Audit Committee) for HoldCo (as detailed in appendix 3 of the report) and to authorise that these be adopted as the revised Articles for the existing Council owned company (LVHN Ltd).

3.               Approve the delegation arrangements described in section 3.7.15 of the report.

4.               Approve the procurement of insurance to indemnify Council officers and Members acting as directors under the Local Authorities (Indemnities for Members and Officers) Order 2004.

5.               Approve the drawdown of a total of £2.143 million from the Council’s indicative capital programme consisting of:

·       £1.096 million forecast costs for the six months from September 2015 to March 2016.

·       £1.047 million forecast operational costs for the six months from April 2016 to September 2016, the drawdown of which would need to be specifically authorised by both the Director of Regeneration and Environment, and the Director of Finance, Resources and Customer Services.

This would increase the Council’s project investment to £4.256 million to September 2016, as detailed in Table 1 (set out in Report No.16, Minute No.24 below refers).

6.               Approve the estimated £170k revenue cost related to borrowing an additional £2.143m, to cover interest payments and repayment of principal, with the remaining investment coming from existing budgets.

7.  ...  view the full minutes text for item 12