Decision details

Boiler replacement - City Museum, incorporating Lancaster Library

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Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

Replace the heating system within the City Museum, which also feeds Lancaster Library, as it has reached the end of its' serviceable life.

Decisions:

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Cabinet received a report from the Director for Economic Growth and Regeneration to request that funding be released from the capital budget in order to deliver a joint project between Lancaster City Council and Lancashire County Council that would see the replacement of essential boiler plant and equipment, housed in the City Museum but serving both this site and Lancaster Library.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

	Option 1: Do nothing/wait for air source heat pump technology to advance	Option 2: Replace the gas boilers on a like for like basis but ensure mechanisms are in place to install air source heat pumps at a later date	Option 3: Carry out a like for like replacement of the gas boilers
Advantages	The council does not spend the allocation of capital funds requested. It could lead to complete decarbonisation and potentially avoid any modifications or removal of newly installed gas heating systems further down the line.	The City Museum asset is protected, as is the County’s asset. Reduced gas consumption and cost savings (gas and maintenance). Better working environment for staff. Better control over the environment for the benefit of the collections. The work is planned so costs associated with it can be known in advance. Costs can be split out accurately going forward. As air source heat pump technology evolves, we will be in a position to install retrospectively and realise the benefits associated with this.	The City Museum asset is protected, as is the County’s asset. Reduced gas consumption and cost savings (gas and maintenance). Better working environment for staff. Better control over the environment for the benefit of the collections. The work is planned so costs associated with it can be known in advance. Costs can be split out accurately going forward. No changes are required to the existing scheme.
Disadvantages	The boiler plant will fail (become unrepairable), at which point emergency, temporary heating will need to be installed for both sites until a permanent replacement is organised. This will be a more costly option than the planned replacement. The current lack of accurate heating control is creating an uncomfortable working environment for staff. Loss of heating and/or the installation of temporary heating could cause damage to the Museums collections. Asbestos work would still be required imminently, whether the boiler replacement goes ahead or not.	The Council will need to expend the requested capital funds this financial year. The changes required to ensure air source heat pumps can be added on to the system at a later date will mean a scheme revision and small additional costs	The Council will need to expend the requested capital funds this financial year
Risks	Loss of heating and potential damage to collections could result in a reduction of visitor numbers or force a temporary closure of the Museum. If our lack of action impacts the Library as well as our own site, there could be significant reputational damage.	None.	This makes no allowance or acknowledgement towards the City Councils net zero ambitions.

Facilities Management preferred option is Option 2. The condition of the boilers has been of concern for a number of years and considerable time and effort has been put in to ensuring they continue to function. However, they are inefficient and there is a real risk that they will become unrepairable, leaving both the City Museum and Lancaster Library at risk. With option 2, we remain open to introducing green alternatives at a time when the technology has evolved adequately enough.

Councillor Hamilton-Cox proposed, seconded by Councillor Heath:-

“That the recommendation, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1) That Option 2 be approved and that the allocated capital budget be released in order for the essential boiler plant to be replaced, before equipment failure occurs.

Officer responsible for effecting the decision:

Director for Economic Growth & Regeneration

Reasons for making the decision:

The decision is consistent with the Council priority of a Sustainable District taking action to meet the challenges of a climate emergency. The new technology (more efficient boilers, working and well-placed thermostats and heat meters) will generate savings with reduced gas consumption and impact on carbon emissions and will enable retrofitting of air source heat pumps in the future. The decision will also ensure a fairer split of the costs between the County (58%) and City (42%) councils as opposed to the existing 50/50 arrangement.

Report author: Sarah Price

Publication date: 03/11/2021

Date of decision: 26/10/2021

Decided at meeting: 26/10/2021 - Cabinet

Effective from: 12/11/2021

Accompanying Documents:

BOILER REPLACEMENT REPORT PDF 658 KB