Issue - meetings

To approve the commitment of additional funding to the project in order to realise the full potential of conservation measures to deliver savings for the Council.

Defer progression of the Re:Fit Programme until the current lease situation at the One Leisure sites has been resolved following which a further report be presented to the Cabinet for consideration.

By way of a report from the Interim Head of Operations (a copy of which is appended in the Minute Book) the Cabinet received the outcome of the Investment Grade Proposal (IGP) provided by Bouygues Ltd - the detailed analysis of energy savings suggested at all One Leisure sites.

In 2015 there had been a Desk Top Assessment (DTA) of the energy conservation measures appropriate for each of the One Leisure sites.  The report detailed an explanation of the differences between the measures, costs and savings first identified in the DTA and those identified in the IGP, which had resulted in an increase of £107,889 to deliver the programme of improvements best suited for the One Leisure facilities.

It was noted that a key risk to the project was that the current leases at the One Leisure sites had either expired or would expire in the near future. The Council was currently in negotiations with various authorities regarding the renewal of these leases.  However, there was significant risk to the investment if any of those authorities withdrew from the arrangements. 

Given the current uncertainty with renewal of the leases, the Cabinet agreed that progression of the Re:Fit Programme should be deferred until the lease situation had been resolved.  The Cabinet expressed appreciation to the Officers involved in the Re:Fit project and were keen to emphasise that the decision to defer was no reflection on their work.

The Cabinet accepted that should the project not progress the Council might be liable for £29,000 to Bouygues Ltd which in comparison to the overall cost of the project the Cabinet suggested was acceptable when the current situation meant the Council might not receive a return on its investment.

The Cabinet requested confirmation that there were no other investment options for One Leisure that would have a better return than the guaranteed £110k per annum of savings from the Programme, with a shorter payback period than nine years.

Following clarification of the timeline for the lease renewals and confirmation there was no alternative preferred investment proposal for One Leisure, the Cabinet agreed that discussions were required with Bouygues Ltd to re-align the programme. Having been advised of the potential capital cost increase implications the Cabinet accepted this was a consequence of the decision and

RESOLVED

to defer progression of the Re:Fit Programme until the current lease situation at the One Leisure sites had been resolved following which a further report be presented to the Cabinet for consideration.

The Interim Head of Operations is to present a report on the Re:FIT Programme – Energy Conservation Measures for One Leisure.

With the aid of a report by the Interim Head of Operations (a copy of which is appended in the Minute Book) the Re:Fit Programme – Energy Conservation Measures for One Leisure report was presented to the Panel. Members were informed that a study has been carried out and identified that carrying out the scheme would produce a significant energy savings with a rate of return on the investment of 9 years.

The Panel was informed that the Council is in negotiation to renewal the leases of One Leisure Huntingdon, One Leisure St Neots and One Leisure Ramsey. It is recommended that the scheme should only proceed once those leases have been secured.

Following a query on why shouldn’t the Council proceed without securing the leases, the Panel was informed that in order to maximise the savings the Council receives the scheme needs to be completed as a complete package as the Council will benefit from the economies of scale.

In response to a question on who are the Council negotiating with, the Panel were informed that negotiations for One Leisure Huntingdon are with Huntingdon Town Council and negotiations for One Leisure St Neots and One Leisure Ramsey are with academies.

A conversation ensued regarding training on the building energy management system and Members were informed that training will be thorough and ongoing and will be given to the appropriate members of staff which will increase resilience within the service.

Following a question regarding the breakdown of equipment, it was confirmed that if the equipment breaks during the warranty period then there won’t be any cost to the Council. However the Council does have the responsibility to properly maintain equipment.

In terms of the leases, Members were informed that the Council have a long enough lease on four of the seven leisure centres so that the works would be paid back in energy savings. The Council are close to an agreement for the One Leisure St Neots lease for a period of 25 years with the agreement expected in six to eight weeks. In regards to One Leisure Huntingdon there is an agreement on the terms of discussion. The Council are no closer to an agreement on the lease for One Leisure Ramsey.

Members were informed that the scheme was a capital programme with a spend spread over the course of two years. The Panel would receive regular update reports monitoring the progress of the scheme and the savings achieved.

Following a discussion over the footfall, the benefit of upgrading facilities and the rate of return, some Members expressed concern that the rate of return on One Leisure St Ives Outdoor was not sufficient and stated that they would like the project figures reworked to not include facility. The Panel,

RESOLVED

1)   to recommend to Cabinet that the Council should commit £107,889 to the scheme in order to realise the full potential of the programme however this should be subject to securing the renewal of leases on One Leisure  ...  view the full minutes text for item 19