Decision details

To approve the Phase 2 extension of the Leeds PIPES district heating network to the city centre, using a mix of internal and external funding.

Further to Minute No. 32, 17^th July 2017, the Director of Resources and Housing submitted a report providing an update on the progress of the District Heating project, and which sought approval to construct Phase 2 of the network, subject to securing funding from the Government’s Heat Network Investment Project and subject to other conditions being met.

Members welcomed the proposals detailed within the submitted report.

Responding to an enquiry regarding an application for funding via the Government’s Heat Networks Investment Project, Members were advised that an announcement in respect of such funding was expected in June 2019, with it being noted that regardless of that outcome, immediate works were required to complement the Leeds Public Transport Improvement Programme, in order to realise significant cost savings.

Also in response to a Member’s enquiry, the Board was provided with further detail around the ongoing cross-directorate work with the Council’s Planning Service, aimed at maximising the opportunities available to encourage developers to utilise District Heating facilities as part of any new developments in the city centre.

Following consideration of Appendix 1 to the submitted report designated as being exempt from publication under the provisions of Access to Information Procedure Rule 10.4(3), which was considered in private at the conclusion of the meeting, it was

RESOLVED –

(a)  That the contents of the submitted report, including the appendices, be noted;

(b)  That it be noted that complementary District Heating works estimated at £400k are required to be carried out alongside improvements planned through the Leeds Public Transport Investment Programme, with the funding to be transferred from within the existing Capital Programme contingency;

(c)  That subject to Heat Network Investment Project (HNIP) funding being secured, approval be given to the additional injection of £5.281m into the Capital programme in order to deliver Phase 2 of the District Heating Network;

(d)  That ‘authority to spend’ for construction of Phase 2 of the District Heating Network of £5.681m, funded through £3.193m supported prudential borrowing and £2.489m of grant from the Government’s Heat Network Investment Project, be approved; and as this is subject to the approval of the HNIP grant from the Department for Business, Energy and Industrial Strategy (BEIS), approval be given for the necessary authority to be delegated to the Director of Resources and Housing, in order to enable the Director to negotiate an alternative package;

(e)  That the necessary authority be delegated to the Director of Resources and Housing, to enable the Director to vary the current Design & Build contract with Vital Energi to include the works, as detailed in the submitted report;

(f)  That should HNIP funding be secured, authority be provided to establish a Local Authority company on the terms that are agreed by the Director of Resources and Housing and in consultation with the Leader of Council, the Executive Member for Resources and Sustainability, the City Solicitor and the Section 151 Officer;

(g)  That the connection of Council buildings to the District Heating network, including: the Town Hall, Civic Hall, Museum, St George House and Library/Art Gallery, be supported.

The proposed extension is already included within a current contract with Vital Energi so procurement is not required.  Consultation took place during the original tender exercise, so we are recommending light touch consultation with Members, technical teams within the council, key external stakeholders and potential customers.

Portfolio holders for Resources and Sustainability; Resources and Sustainability; Communities

Highways (network management)

LPTIP Corridors and Gateways team (coordinating work on the Headrow)

WYCA

Potential customers (existing buildings and key development sites)