Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
Consideration was given to a report of the Director of Economy which sought approval to accept a grant of £2,153,354 from the Public Sector Decarbonisation Scheme Phase 3a for energy works at the Spindles, and to commence the works.
The Public Sector Decarbonisation Scheme was a UK Government funded programme, administered by Salix.
The Council has previously bid for PSDS grant funding (via a GMCA consortium) to the PSDS3a funding round, for decarbonisation works at the Spindles, including the installation of roof and wall insulation, glazing, solar PV and heat pumps. The grant funding was not awarded at that time, due to the overall funding envelope being exceeded by the time Salix received Oldham’s application (via GMCA)
However, in September 2022 Salix approached GMCA asking whether Oldham would still be looking for the funding, as the PSDS3 a programme was underspent after the first 12 months of operation.
The PSDS3a application form for Spindles had been updated to take into account changes to the proposed project over the past 12 months, and had now been approved by Salix, who have signed a Grant Agreement with GMCA for the grant funding. The actual grant amount received by GMCA from Salix will be £2,291,822. However, the GMCA will ‘top-slice’ this grant amount as a management fee (£138,468 or 6%) and the actual grant amount to be received from GMCA by Oldham will be £2,153,354.
The decarbonisation works at the Spindles would contribute to the carbon neutrality targets set out in the Oldham Green New Deal Strategy and would also support the “A Clean and Green Future” priority set out in the Corporate Plan. They are also forecast to save around £45K annually in energy costs at the complex.
The Spindles project had been offered £2,153,354 in grant funding against a total project value of £3,956,223, requiring a match funding element from the Council of £1,802,869. The grant funding has to be utilised by 31st March 2025.
Option 1 - Do not accept the grant. Under this option, the grant funding would not be accepted and the additional energy works proposed at the Spindles complex would not be implemented.
Option 2 - Accept the grant and commence works. Under this option, the Council will enter into a partnership agreement with GMCA for disbursal of the grant, and the works will be carried out by the Spindles project team already appointed for the wider renovation programme at the site.
RESOLVED -That the grant funding be accepted and the Council commence the works.
Publication date: 25/01/2023
Date of decision: 23/01/2023
Decided at meeting: 23/01/2023 - Cabinet