A report from the Director of Regeneration and Environment is attached. This should be read in conjunction with Report No.175, agenda part one refers. (Key decision – reference numbers 4266 and 4035)
(This document contains exempt information as defined in Paragraph 3 (information relating to the financial or business affairs of any particular person – including the authority holding that information) of Schedule 12A to the Local Government Act 1972, as amended)
(Report No.180)
Minutes:
Councillor Achilleas Georgiou (Deputy Leader) left the meeting for this item and took no part in the discussion, Minute No.2 above refers.
Councillor Alan Sitkin (Cabinet Member for Economic Regeneration and Business Development) introduced the report of the Executive Director – Regeneration and Environment (No.180).
NOTED
1. That Report No.175 also referred as detailed in Minute No.8 above.
2. Paragraph 3.52 of the report outlined the review that had been undertaken by KPMG. The Business Plan was prudent, robust and deliverable. Members’ attention was also drawn to paragraph 3.6.4 with regard to the anticipated investment returns for the company and for the Council. Councillor Sitkin highlighted a number of positive factors for Members’ consideration.
3. The need for Councils to be innovative and identify revenue funding streams at a time of highly constrained Council budgets.
4. Councillor Taylor concluded by supporting the proposal and highlighting the opportunity to the Council in moving forward with this business. The business offered a practical proposition; it would deliver financially and be of social value to the local community; and, the proposals had been the subject of robust and external independent evaluation. Councillor Taylor further outlined the benefits of the business, as set out in full in the report.
Alternative Options Considered: As detailed in Report No.175 (Minute No.8 above referred) and in paragraphs 5.15 and 5.16 of the report.
RECOMMENDED TO COUNCIL
1. To approve an addition of the amount detailed in recommendation 2.2 of the report, to the Council’s capital programme, noting that development costs, as stated in recommendation 2.2 of the report, incurred to date had already been approved and added to the Council’s capital programme. This would bring the initial “Tranche 1” investment in energetic to the figure stated in recommendation 2.2 of the report.
2. To approve an addition, of the amount stated in recommendation 2.5 of the report, to the indicative capital programme as part of the, amount as stated in the report, energetik Business Plan. It consisted of the forecast, figure stated in the report, Tranche 2 investment and a Business Expansion Fund of up to the amount stated in the report. This was in addition to the amount (stated in the report) required for Tranche 1. A further Cabinet report would be required to enable drawdown of the Tranche 2 funding by moving it into the Council’s Capital Programme.
DECISION: The Cabinet agreed to
1. Note that the total additional project expenditure requested from the Council was up to the figure stated in recommendation 2.3 of the report as part of the amount (stated in the report) energetik Business Plan. The Council’s Tranche 1 and 2 investment would allow the business to make the necessary capital expenditures in advance of receipt of revenue required to deliver the heat networks which would eventually supply over 15,000 homes (or commercial equivalent).
2. Approve the carry forward the unspent capital budget from the previously approved sum (as detailed in recommendation 2.4 of the report), currently forecast to be the amount as detailed in the report, which was forecast to be spent by 31 March 2017.
Reasons: As detailed in Report No.175 (Minute No.8 above referred) and in paragraphs 6.3, 6.4 and 6.5 of the report.
(Key decision – reference numbers 4266 and 4035)
Supporting documents: