Issue - meetings

Further to minute 469 of 3 September 2013, and following a tendering exercise, to approve the replacement of the combined heat and power units at the Westgate Leisure Centre.

RESOLVED

1)      Having considered the tender report (Exempt Appendix) prepared by Pope Consulting Limited, that the existing three Combined Heat and Power units be replaced with a single unit under a capital purchase (CAPEX) scheme.

2)      That Tenderer 2 be approved as the preferred bidder, subject to the application of sensitivity analysis to the bid.

3)      That the balance of the existing budget (amounting to circa £115,000) be released for the replacement of the three existing gas engines and that an additional £80,000 be released from capital reserves to fund the new CHP and associated costs and fees.

Further to minute 469 of 3 September 2013, the Cabinet considered the report circulated with the agenda (copy, except appendix Consultant Engineer’s Tender Report, attached to the official minutes).

Mr Finch introduced the report, by reminding the Cabinet of the history of this matter and the previous supplier’s decision to terminate its contract with the Council for the maintenance of the Combined Heat and Power (CHP) plant at the Westgate Leisure Centre, following the failure of the plant to operate properly. At present gas boilers were in place at the Westgate Centre and provided effective and fail-safe heating, but the Council needed a system that would provide the fuel efficiencies that the CHP was intended to achieve. There had been no market interest in installing new gas engines into the existing engine set, and so a second invitation for a full replacement CHP had been offered. The exempt appendix evaluated the tenders that had been received. The essential choice was between a capital purchase (CAPEX) or discounted energy purchase (DEP) scheme. The evaluation recommended the CAPEX option, because its operating cycle would be aligned to the operating cycle of the Westgate Leisure Centre, whereas the DEP option carried a greater risk of downtime and required the Council to share the energy savings with the supplier.

RESOLVED

(1)        Having considered the tender report (Exempt Appendix) prepared by Pope Consulting Limited, that the existing three Combined Heat and Power units be replaced with a single unit under a capital purchase (CAPEX) scheme.

(2)        That Tenderer 2 be approved as the preferred bidder, subject to the application of sensitivity analysis to the bid.

(3)        That the balance of the existing budget (amounting to circa £115,000) be released for the replacement of the three existing gas engines and that an additional £80,000 be released from capital reserves to fund the new CHP and associated costs and fees.