Issue - meetings

Report of the Cabinet Member for Housing and Planning.

Decision:

1.    Cabinet notes the current position in relation to the energy efficiency of the Council’s housing stock in “off-grid” areas of the District, and options around works to improve the properties;

2.    Cabinet notes the award of £926k Green Homes Grant to the Council and the use of the Chief Executive’s delegated powers to accept the Grant on behalf of the Council; and

3.    Cabinet approves the award of a contract to Phoenix Gas Services Ltd to undertake the installation of electrical heating and renewable technology to Council owned dwellings for a three year period (with a potential one year extension) to a maximum total value of £7,492,752.00.

Considerations/reasons for decision:

·       The report of the Cabinet Member for Housing and Planning on the procurement of the off-gas heating contract.

·       The Council’s commitment in its Corporate Plan 2020-2023 to provide “Housing that meets the needs of all residents”.

·       The Council has identified around 1200 properties in its housing stock in rural locations with no mains gas supply.

·       The Council will receive a Green Homes Grant of £926k (£850k capital grant and £76.5k project/admin costs), increasing the budget available in 2021/2022 from £3,885,000 to £4,811,000.

·       The delegated decision made by the Chief Executive to formally accept the allocation of grant funding.

·       The deadline for spend of the Grant is 31 December 2021.

·       Three contractors expressed an interest in undertaking the works, with Phoenix Gas Services Ltd ranked overall 1st place in Lot 7 and 2nd

place in Lot 9.

Options considered:

1.    Do nothing – this option was discounted as currently, the minimum energy efficiency standards allowed for rented properties are a minimum of an E rating on their Energy Performance Certificate (EPC). From 2025, a rented property will need to have a certification rating of C or above to ensure homes are more energy-efficient and to reduce carbon waste. As a registered Social Housing provider the Council exempt from these regulations but aspires to meet them.

2.    Use alternative tender and procurement options – alternative procurement methods were discounted due to the tight deadlines for spend of the Green Homes Grant.

The Cabinet Member for Housing and Planning introduced the report to procure improvement works to HRA properties to include off gas heating solutions. He highlighted the importance of looking after the Council’s existing housing stock and ensuring that tenants were provided for. Stock condition reports were being undertaken and would identify a programme of works to meet the needs of tenants and make full use of the Greener Homes grant funding.

Following a question from another Cabinet Member, it was confirmed that the improvement works under consideration were separate to the contract for plumbing and heating in Council properties. Officers were also asked if the Council could be confident that the works would be delivered. It was confirmed that the works had been planned with a focus on deliverability, as any unused Greener Homes grant funding would need to be returned. The Chief Executive added that a team was being developed to ensure delivery.

On being put to the vote, it was AGREED:

To approve the award of a contract to Phoenix Gas Services Ltd to undertake the installation of electrical heating and renewable technology to Council owned dwellings for a three year period (with a potential one year extension) to a maximum total value of £7,492,752.00.