Agenda item

(Cabinet Member with Special Responsibility Councillor Barry)

 

Report of the Heads of Property Services and Community Engagement

(Cabinet Member with Special Responsibility Councillor Barry)

 

Cabinet received a report from the Heads of Property Services and Community Engagement to seek Cabinet’s recommendations in respect of the four potential projects identified in the report.

 

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

 

 

Option 1 - Replacing the boilers at Lancaster Town Hall - (Appendix A to the report)

 

The existing gas fired boilers and ancillary plant-room pipe-work, pumps; controls etc which provide heating and hot water to Lancaster Town Hall are now approaching the end of their economical life. Due to the age and condition of the existing boiler room plant it  was recommended in the 2006 condition survey that they be urgently replaced with new energy efficient technology and, if possible, a renewable energy source.

 

Property Services commissioned Capita Symonds to examine various options for the replacement of the boiler room heating plant. Their report identified renewable options that may be incorporated as part of the replacement works in order to reduce the building energy consumption.

 

The heating / renewable options reviewed in Capita Symonds report are noted below:

·         Gas fired condensing boiler plant with solar thermal installation to provide domestic hot water.

·         Biomass boiler with secondary gas fired condensing boiler plant.

·         Combined heat and power (CHP) with gas fired condensing boiler plant.

·         Ground Source Heat pumps with gas fired condensing boiler plant.

·         Air Source Heat pumps with gas fired condensing boiler plant.

 

Capita Symonds concluded that the preferred heating replacement option which could be considered viable for Lancaster Town Hall was:

 

Gas fired condensing boiler plant with solar thermal installation

 

·         This option would involve replacing gas fired boilers including gas train, controls, flue, plant-room pipe-work, valves, insulation, pumps and pressurisation unit. Installing solar thermal panels on the flat roof area above Ashton Hall. Replacing existing calorifiers with a solar pre heat cylinder and indirect calorifier.

·         Budget cost: £150,000 to £200,000

 

Potential savings

 

Current annual gas usage:                 646,950 kWh

Current annual gas bill:                       £17,808.82

 

Potential annual saving from solar thermal installation: (11,091) kWh

 

Potential annual saving from new boiler Installation: (32,348) kWh

 

Total annual KWh saving:                   (43,439) kWh

 

Estimated revised annual usage:       603,511 kWh

 

Estimated annual gas bill:                   £16,613.06

 

Estimated annual financial saving: £1,195.76 pa

 

Capita Symonds further recommend that the following works are also considered although at this stage there is no estimation of cost. Indeed some of the items are being included as part of the works currently being undertaken to the roof of the Town Hall

 

·         Reduce air permeability through the building façade.

·      Increase the building insulation.

·         New control system / incorporate weather compensation and building heating zones.

·         Replace existing pumps with new variable speed units.

·         Install thermostatic radiator valves (TRV’s).

 

As an invest to save project, the savings in terms of financial and KWh’s appear to be low for a large capital investment. However, as the boilers are coming to the end of their life and could fail at any time leaving the building without heating, a further report has been commissioned from Norfolk Property Services (NPS) to clarify the most appropriate energy efficient option for boiler replacement. Details of this report were provided orally at the meeting, including whole life costing information. It is therefore recommended that, subject to the information contained in the NPS report, the most energy efficient scheme for replacement of the boilers is accepted for inclusion within the draft Capital Programme together with the most appropriate means of funding (such as through any Invest to Save Reserve, if appropriate, or alternatively through other general capital resources).

 

At as January, only around £33,000 was included in the Capital Programme for replacement boilers, under Municipal Building Works.   Clearly this will need to be increased.

 

Option 2 - Installing secondary glazing at Lancaster Town Hall (Appendix B to the report)

 

Secondary glazing units are tailor-made to fit inside the existing windows, unobtrusive on the inside and practically invisible on the outside, preserving the quality of the existing windows while allowing the benefits of a warmer, quieter and more secure environment. Secondary double glazingwindows can combat noise pollution and also improve energy efficiency as air is trapped between the existing window and the new secondary window, insulating against the cold outside and preventing draughts.

 

Following discussions with Lancaster City Council’s Conservation Officer he can see no reason why the installation of secondary double glazing could not be installed at Lancaster Town Hall, although there would still be a need for a listed building consent application.

 

At this stage a specialist secondary glazing company has been asked to produce a matrix of window costs to allow a budget to be formulated. The cost matrix should be available with the next three weeks.

 

It was envisaged that these works would fall as capital.  There was no specific budgetary provision at present and therefore funding from any Invest to Save Reserve would need to be considered in due course.

 

Option 3 - Laying a heat exchange pipeline between Salt Ayre Landfill Site and Salt Ayre Sports Centre (Appendix C to the report)

 

Viridis Energy operates a landfill gas generation facility at Salt Ayre in Lancaster, under contract to SITA UK Limited. SITA Power and Lancaster City Council have discussed the possibility of supplying low carbon heat recovered from the landfill gas generators to council-owned premises in the vicinity of the landfill site.  In particular we have asked SITA to assess the feasibility of supplying Salt Ayre Sports Centre.

A feasibility study, conducted by Parsons Brinckerhoff, could be delivered at the costs detailed below. Such a study would identify the options available to Lancaster City Council for pursuing the development of a low carbon heat exchange pipeline between Salt Ayre landfill site and Salt Ayre Sports Centre. It would determine the advantages, disadvantages, costs and risks relating to the options available.

           

If the pipeline was progressed, this would result in financial and carbon savings for Salt Ayre Sports Centre as their energy use would be reduced. The exact savings expected would be determined as part of the feasibility study.

 

The feasibility study comprised:

·              Stage 1: Commission a Heat Demand Assessment at a cost of £3,250

·              Stage 2: Commission a Viability Assessment at a cost of £3,370 (a 50% contribution with SITA paying 50%), covering:

o              A district heating pipework

o              An economic assessment

 

To enable the feasibility study to take place, the Council would be required to allocate staff time to gather the data for the Heat Demand Assessment, staff time to liaise with the consultants and the financial contributions given above. The funds could potentially be taken from the Climate Change Implementation budget of £20,000 in 2010/11, if the same was agreed.

 

If agreed, it was anticipated that the pipeline project could be completed in 2012/13.

 

Option 4 - Installing solar photovoltaic cells at Salt Ayre Sports Centre (also generates income from FITs) - (Appendix D to the report)

 

A local company has carried out a basic site assessment of Salt Ayre Sports Centre to determine the suitability of installing solar photovoltaic (PV) cells on the roof.

 

Such an installation would provide free, renewable energy to Salt Ayre, therefore reducing energy costs and the carbon footprint of the building, and would also generate income from the new Feed in Tariffs (FITs). FITs require energy suppliers to make regular payments to local authorities that generate their own electricity from renewable or low carbon sources.

 

They have advised that one of the following installations would be suitable for Salt Ayre, dependent on the initial investment:

 

 

Note 1: The reduction in energy costs is additional to this figure and has not yet been calculated. It is anticipated therefore that the payback period will reduce.

 

It was anticipated that the various revenue budgets could be used to contribute towards this project, with potential additional funds held over from 2010/11 if the same was agreed. Further funds would need to be secured to ensure the larger installations; this could include use of the proposed Invest to Save Reserve, referred to elsewhere on the agenda.

 

It was recommended that alternative technologies were only installed once a building has already made efforts to reduce its energy use. Staff at Salt Ayre have been successfully reducing energy use at the centre for the past 2 years through a £29,000 investment in technologies, such as a pool cover, and through raising staff awareness. Electricity use decreased by 33% and gas by 25% in 2009/10, resulting in substantial financial savings. These savings have continued to increase throughout 2010/11, making Salt Ayre a prime site to explore the use of renewable technologies and FITs.

 

The next step to carry out this project was to commission a full site assessment and liaise with local Planning.

 

If agreed, it was anticipated that the solar PV installation could be completed by winter 2011.

 

The officer preferred option was to proceed with Option 1 on the basis outlined with the three other options still retained and subject to further appraisal.

 

Councillor Barry proposed, seconded by Councillor Langhorn:-

 

“(1)      That subject to receiving further information, the most energy efficient scheme for replacement of the boilers be accepted for inclusion within the draft Capital Programme for consideration as part of the budget, together with the most appropriate means of funding, including building management systems and photo-voltaic energy generation.

 

(2)        That the other three projects be taken forward for further appraisal with reports brought back to Cabinet as necessary.”

 

 

Councillors then voted:-

 

Resolved unanimously:

 

(1)        That subject to receiving further information, the most energy efficient scheme for replacement of the boilers be accepted for inclusion within the draft Capital Programme for consideration as part of the budget, together with the most appropriate means of funding, including building management systems and photo-voltaic energy generation.

 

(2)        That the other three projects be taken forward for further appraisal with reports brought back to Cabinet as necessary.

 

 

Officers responsible for effecting the decision:

 

Head of Property Services

Head of Community Services

Head of Financial Services

 

Reasons for making the decision:

 

The decision supports the Economic priority in respect of ‘Energy Coast’ and Climate Change.  The new financial incentives for renewable energy generation can provide income streams over the long term and offer significant opportunities.  Much of the technology is tried and tested, cost effective and productive.  In addition to the obvious benefits (free energy, cost savings and income generation) there are potentially wider benefits for our local communities, greater energy security, CO2 emissions reductions and a potential boost to the local economy.