Agenda item

A report from the Executive Director – Place is attached. (Key decision – reference number 4863)

(Report No.7)

(7.40 – 7.50 pm)

Councillor Guney Dogan (Cabinet Member for Environment and Sustainability) introduced the report of Executive Director – Place (No.7) proposing a solution to realise energy consumption savings from the Council’s street lighting stock through the introduction of LED technology and a SMART central management system.

NOTED

1.            The proposal for the introduction of LED highway street lighting as detailed in the report. The LEDs would produce a white light which was more aligned to daylight. This improved lighting would be of benefit to both motorists and pedestrians and could help to reduce accidents and improve community safety. LED lighting would also result in significant reductions in energy usage and carbon emissions. The light source was also more controllable and resulted in less light pollution, as explained in the report. Maintenance costs would also be reduced.

2.            That the project was estimated to generate a net revenue saving of £382k per annum once fully implemented. This was made up of £434k of energy savings and £326k reduced operational and maintenance costs giving total savings of £760k offset by the financing costs of £378k per annum. The detailed funding implications and requirements going forward were set out in the report.

3.            That street lighting was an important service to all of Enfield’s residents. It was noted that the introduction of LED technology and a SMART central management system would enable greater individual and remote control over specific lights enabling issues and concerns raised to be dealt with effectively.

4.            In response to issues raised, Members discussed the Street Lighting PFI contract awarded in 2006 for a period of 25 years, as set out in the report. Members were advised of the proactive work undertaken by the Council in seeking such energy and financial savings to ensure that the Council continued to achieve best value in service provision. As set out in paragraph 4.4 of the report, Members noted that the option to terminate the PFI contract had been discounted based on the significant termination charges and loss of government grant funding that this would incur.

5.            Members welcomed the proposals and noted that this was an invest to save proposal. The proposed funding arrangements were noted as detailed in the report.

Alternative Options Considered: NOTED, the detailed alternative options that had been considered as set out in section 4 of the report.

DECISION: The Cabinet agreed to

1.            Approve a project to replace the existing street lights with LED lighting in line with current design standards and introduce a smart central management system.

2.            Approve for recommendation to Council, the inclusion of the Street Lighting Project in the Council’s approved Capital Programme at a cost of £6.375m.

3.            Approve, for recommendation to Council, funding arrangements as set out in the report being external borrowing of £6.375m of which there was a five year interest free loan of £4.09m from SALIX.

4.            Note the updated net savings would be reflected in the Medium Term Financial Plan for 2020/21 and future years.

5.            Delegate to the Director of Environment and Operational Services, in consultation with the Director of Law and Governance, approval to make any necessary changes to the terms of the Street Lighting PFI contract.

RECOMMENDED TO COUNCIL to approve

1.        the inclusion of the Street Lighting Project in the Council’s approved Capital Programme at a cost of £6.375m (decision 2 above refers).

2.         funding arrangements as set out in the report being external borrowing of £6.375m of which there was a five year interest free loan of £4.09m from SALIX (decision 3 above refers).

Reason: NOTED, the detailed reasons for the recommendations as set out in section 5 of the report.

(Key decision – reference number 4863)