Issue - meetings

Environmental Services and Sustainability Portfolio

To consider report HPS/20 of the Head of Major Projects & Commercial Services, which was referred to the meeting of the Overview and Scrutiny Commission on 24 June 2019.

The Cabinet Member for Environmental Services and Sustainability presented report HPS/20 of the Head of Major Projects and Commercial Services. The report sought approval to commence procurement for the appointment of an Operations, Maintenance and Billing (OMB) contractor for the Town Centre District Heat Network (DHN).

It was explained that within the Council currently there was not appropriate level of expertise to manage the operations, maintenance and billing of the DHN and thus there was a need to procure externally for this specialist role. The Cabinet was also informed that by appointing the OMB contractor at this stage of the DHN project was of benefit as the contractor would be able to be involved with the Council over the design of the DHN.

Councillor Rana presented the Overview and Scrutiny Commission’s comments on the report to the Cabinet following consideration of the matter at its meeting on 24 June 2019. The Cabinet noted the Commission comments on the report.

Councillor B. Smith spoke as part of the discussion on the report.

RESOLVED

That the Cabinet:

1.         approves the undertaking of a procurement exercise to enable the appointment of an operations, maintenance and billing contractor for the town centre DHN.

2.         delegates authority:

a.      to the Head of Major Projects and Commercial Services to undertake the procurement exercise to appoint the Operations, Maintenance and Billing contractor for the town centre DHN in accordance with the Council’s Procurement Code.

(Generic Delegation 7 will be used to enact this recommendation)

b.      to the Head of Major Projects and Commercial Services and the Head of Corporate Finance, in consultation with the Leader of the Council and the Cabinet Member for Environmental Services and Sustainability to enter into a contract with the most advantageous bidder, once the tender exercise is complete.

(Generic Delegation 7 will be used to enact this recommendation)

Reasons for the Recommendations

Operations, maintenance and billing functions associated with a District Heat Network are specialist functions, appropriate experience for which does not currently exist ‘in house’. The recommendations will enable a procurement exercise to be undertaken to appoint a suitable qualified and experienced contractor to undertake these functions on behalf of the Council