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The approval of the Executive Councillor to continue to purchase gas via the Eastern Shires Purchasing Organisation (ESPO) energy framework.
Decision Maker: Executive Councillor for Transformation
Decision published: 09/08/2022
Effective from: 27/07/2022
Decision:
Cambridge City Council
Record of Executive
Decision
Re-procurement of
the Council’s Gas Supplies
Decision
of: Councillor Mike Davey, Executive Councillor for Finance, Resources and
Transformation
Reference:
22/URGENCY/S&R/10
Date
of decision: 27.7.22 Date Published on website: 27.7.22
Decision
Type: Key
Matter
for Decision: The approval of the Executive Councillor to continue to purchase
gas via the Eastern Shires Purchasing Organisation (ESPO) energy framework.
Why
the Decision had to be made (and any alternative options):
i.
There is a requirement to re-procure the Council’s gas supply contract
from the 1st of April 2023.
ii.
As the revenue spend on gas has increased and is forecast to be at least
£600,000 per year (estimated £2.4 m over the life of the proposed new contract)
this is a key decision and requires approval from the Executive Councillor.
iii.
It was recommended that the procurement decision was made as an out of
cycle decision rather than wait until Strategy and Resources Scrutiny Committee
on 10th October 2022. Energy prices are
volatile, and ESPO report that gas prices are expected to continue to increase
this year. If the council didn’t join procurement exercise being run by ESPO,
the council’s supply would be procured later this year, and was likely to lead
to higher prices.
iv.
Energy markets are complex so public sector organisations can take
advantage of energy supply framework contracts. These are designed to procure
large volume single supply contracts at more favourable rates than would be
possible if the City Council procured independently with its smaller
consumption.
The
Executive Councillor’s decision:
i.
Approved continuing to purchase gas via the Eastern Shires Purchasing
Organisation (ESPO) energy framework. As outlined in Option 3 of the officer’s
report.
ii.
Approved that the contract period for the provision of gas should run
for four years from the 1st April 2023 to the 31st March 2027.
iii.
Authorised the Director of Neighbourhoods and Communities or Head of
Housing Maintenance and Assets to sign framework documents and approve the
actual gas price tariff when the procurement is completed by ESPO.
Reason
for the decision: Procurement organisations in the public sector can deliver
significant economies of scale across a range of services by combining
requirements of member organisations to secure more favourable pricing than
would be possible for each organisation acting independently. Such
organisations guarantee fully compliant tendering and due to the scale of
procurement they provide specialist procurement and market expertise which is
especially important when dealing with energy markets. The Council already
makes use of this solution and procures gas and electricity at a competitive
tariff via an ESPO framework agreement.
It
was recommended that the use of a Public Sector Framework Agreement represented
the best option for gas procurement at the current time and would enable the
Council to secure pricing for March 2023-24 soon and help budget setting for
next year.
Scrutiny
Consideration: The Chair and Spokesperson of Strategy and Resources Scrutiny
Committee were consulted prior to the action being authorised.
Report:
A report detailing the background and financial considerations is available via
Urgent Decision Briefing Note.
Conflict
of interest: None.
Comments:
Councillor Bennett and Councillor Bick supported the recommendations but raised
concerns about the decision being made through the out of cycle / urgent
decision process rather than being brought to the Strategy and Resources
Scrutiny Committee. The Executive Councillor noted these comments and would
follow up with officers.
Councillor
Robertson raised the following questions:
No, not currently. The gas for Abbey Pools and
Parkside Pools is currently purchased by GLL, the company that runs the pools.
However it is proposed that we change this once we award the new gas contract
so the Council buys the gas direct as we think this will provide better value
for money.
The Recreation Services Manager manages these
projects and has suggested that gas consumption could drop by up to 40% as
result of switching to heat pumps.
The current electricity
contract does not expire until 30/9/24
Lead officer: Will Barfield
To agree the consultation response to the Cambridgeshire and Peterborough Local Transport and Connectivity Plan (LTCP): Draft Plan
Decision Maker: Executive Councillor for Planning, Building Control, and Infrastructure
Decision published: 29/07/2022
Effective from: 29/07/2022
Decision:
Matter for
Decision: |
To agree the consultation response to the Cambridgeshire and
Peterborough Local Transport and Connectivity Plan (LTCP): Draft Plan |
Why the decision had to be made (and any
alternative options): |
In June 2022, at a
meeting of the Planning and Transport Scrutiny Committee, the Committee
recommended and the Executive Councillor for Planning and Infrastructure
approved a response to the draft LTCP, and also approved to agree any material changes
proposed by South Cambridgeshire District Council through an out of cycle decision, in consultation
with Chair and Spokes. |
The
Executive Councillor’s decision(s): |
Agreed the consultation
response to the Cambridgeshire and Peterborough Local Transport and
Connectivity Plan (LTCP): Draft Plan |
Reasons for the decision: |
Background The
original Cambridgeshire And Peterborough Local Transport and Connectivity
Plan: Draft Plan consultation response was discussed at Planning and
Transport Scrutiny Committee on 28th June 2022. The
papers for this meeting are available here: Agenda for Planning and Transport Scrutiny Committee on
Tuesday, 28th June, 2022, 5.30 pm - Cambridge Council The
proposed response included in the meeting papers was agreed without change
following that meeting by the Executive Councillor. At the same time, the
Executive Councillor also agreed to consider and agree any material changes
to the response to the draft
Local Transport & Connectivity Plan consultation proposed by South
Cambridgeshire District Council, in consultation with the Chair and Spokes
for the Planning & Transport Scrutiny Committee, and in liaison with the
South Cambridgeshire Lead Cabinet Member for Planning (N.B. this should have
been the Lead Cabinet Member for Economic Development – see the minutes of
the meeting). Proposed amendment arising from new information shared ahead of
Planning and Transport Scrutiny Committee meeting on 28th July
2022. The
report linked above noted that at the time of writing, a number of documents
supporting the LTCP had yet to be published. An update note circulated to members ahead of the
meeting itself noted the following: “The Strategic Environmental Impact
Assessment and Habitats Regulation Assessment screening reports have now been
published as part of the Integrated Impact Assessment. Both of these
focus on the impacts of changes between the adopted LTP 2020 and the draft
LTCP being consulted upon. A summary of their conclusions is set out at page
I of the link above. The conclusions do not give rise to a recommendation to
amend the proposed response to the LTCP. Notwithstanding, officers recommend
an insubstantive amendment is made to the response
to note that the Habitat Regulation Assessment wrongly identifies Cambourne
to Cambridge public transport scheme as a project that is new to the LTCP.” Proposed amendments arising from South Cambridgeshire District Council At
its Cabinet meeting held on 11th July, members raised the
following issues: • concern that the published LTCP
response wording might support provision of development connected to a new
station at Six Mile Bottom. • Cabinet noted the critical role of
electricity grid distribution and connection in supporting new development
and the shift to electric vehicles, and the identified severe constraints to
its enhancement, and recommended strengthening the Council’s comments on this
topic. As
per the recommendation in the report informing discussion, Cabinet agreed
that the above issues would be addressed in a revised response, to be agreed
by the South Cambridgeshire Lead Cabinet Member for Economic Development via
an out of cycle decision, in consultation with the Cambridge Executive
Councillor and in consultation with the Chair and Spokes for the Planning &
Transport Scrutiny Committee. The
revised proposed response attached at Appendix 1 seeks to respond to all of the
points raised above. This can be viewed at the link below: |
Scrutiny consideration: |
The Chair and Spokespersons of Planning & Transport Scrutiny
Committee were
consulted prior to the action being authorised. |
Report: |
Details of the background are set out in this Record of Decision.
There are no relevant financial considerations. |
Conflicts
of interest: |
None |
Comments: |
No comments were received from the Chair or
Opposition Spokes of the Planning and Transport Scrutiny Committee. |
Lead officer: Caroline Hunt
Approval of Section 106 Administration Fee
Decision Maker: Executive Councillor for Planning, Building Control, and Infrastructure
Decision published: 28/07/2022
Effective from: 28/07/2022
Decision:
Matter for Decision: Approval of Section 106 Administration Fee
Why the Decision had to be made (and any alternative options): The proposal creates new policy around the use of planning obligations to fund the cost of existing Section 106 Monitoring Officers within the Greater Cambridge Shared Planning service.
To ensure the timely payment of contributions and provision of onsite infrastructure, many local planning authorities seek contributions towards the cost of the monitoring of section 106 agreements.
The Cambridge City
Planning Obligations Strategy SPD[1] adopted
March 2010 established a monitoring charge based on the following:
Financial
contribution clause - £150
Infrastructure
provision clause or condition - £300
Areas of Major
Change developments - Strategy to be considered on a development-specific basis
but likely to include a requirement for funding of development-specific or Area
of Major Change -specific, dedicated monitoring officer(s) throughout the
period of implementation of development.
The Cambridge City
Draft Planning Obligations Strategy Supplementary Planning Document dated June
2014 proposed a new approach to the Monitoring charge and which approach was
used by the City Council during 2014.
Monitoring charges
on financial and non-financial planning obligations - The management and
administration charge will be 5% of the total contribution(s) (subject to a
maximum charge of £50,000).
Large Scale
Development - To be considered on a case by case basis. May be agreed by negotiation,
subject to an additional management and administration charge. The default
position for administration charge will be 5% of total contribution(s)
A High Court
Judgement dated 3rd February 2015 determined that on straight forward matters
(i.e. one off financial payments), securing a s106 monitoring fee would not
meet the tests set out in R122 of the Community Infrastructure Levy Regulations
2010 (amended) and the City Council has not, since then, secured contributions
on non-strategic sites for Section 106 monitoring.
Planning guidance
now specifically permits local planning authorities securing monitoring fees to
cover the associated cost so long as they are proportionate and reasonable and
reflect the actual cost of monitoring.
Officers have undertaken
a detailed analysis of the time required to administer section 106 agreements
and recommend a new set of fees be introduced across Greater Cambridge as
follows:
· A fee of £700 for agreements with no payment
of contributions, long term monitoring requirement or solicitor enquiries.
· A fee of £2,200 per standard residential
development comprising affordable housing, open space and contributions.
· A fee of £500 where the Council is required
to confirm compliance of each obligation
· A fee of £250 per each deed of variation or
supplemental agreement
· Monitoring fees associated with strategic
developments which should continue to be negotiated on a case by case basis.
Around £111,000 can
be expected to be received each year to cover the officer costs associated with
the administration and monitoring of section 106 agreements (with a further
£8,000 for the cost of software) thereby creating a cost neutral position.
Reason for the decision: To ensure the roles of Section 106 Monitoring Officers are cost neutral.
Scrutiny Consideration: The Chair and Spokespersons of the Planning and Transport Scrutiny Committee were consulted prior to the action being authorised.
Report: A section 106 Administration Fee Proposal report can be viewed at the link
Library_ S106 Monitoring Fee Summary Recommendation Report
Conflict of interest: None
Comments: No adverse comments were received from the Chair
or Opposition Spokes.
Lead officer: Heather Jones