Agenda item

Leisure Facility Capital and Decarbonisation Programmes - Consideration of additional funding

Meeting of District Executive, Thursday 12th May 2022 9.30 am (Item 186.)

Decision:

RESOLVED:	That District Executive recommend that the Chief Executive:-
	a.	agree an increase to the capital budget for the two projects of £1,646,468, using its delegated authority under part 3 of the Constitution (section 4.1) – as set out in paragraph 36 of this report. This would bring the combined total for both projects from £6,295,000 to £7,941,468 as shown in Table 2.
	b.	agree a virement of £1,015,495 from the approved Corporate Capital Contingency budget (currently standing at £4m) into these two project budgets. District Executive can vire any budget amount over £100k from one individual budget to another as long as there is no overall impact on the total budget agreed by Council (Financial Procedure Rule 2.3 (h)).
	c.	note that £630,973 of the increase proposed is eligible to be funded from Public Sector Decarbonisation Scheme (PSDS) grant the Council has already received and has not included in its capital-funding budget.
	d.	agree to delay the Public Sector Decarbonisation Scheme (PSDS) works at Wincanton Sports Centre and accept the consequential funding implications as explained in paragraph 38.
	e.	note that the Chief Finance Officer has the agreement of the other S151 Officers within the Somerset councils as required under the Finance and Assets Protocol to approve these proposals.
Reason:	To request an increase in the capital budget in order to complete delivery of two capital projects to ensure the Council’s built leisure estate is fit for purpose for the next 14 years. Both projects will significantly reduce carbon emissions at Goldenstones, Wincanton Sports Centre and Westlands Sport and Fitness Centre in line with Corporate Objectives.

Minutes:

The Portfolio Holder for Environment introduced the report to request additional funding to reduce carbon emissions at three leisure facilities across the district in line with the Council’s Corporate objectives. She said it had been a complex project to deliver and she thanked the officers involved. She noted the Public Sector Decarbonisation Scheme (PSDS) provided Government grants to the public sector to enable heat decarbonisation and energy efficiency measures which would significantly reduce carbon emissions at the venues. There would also be mechanical and electrical improvements installed as well.

Both the Portfolio Holder for Finance and Legal Services and Health and Well-Being spoke in support of the project saying that there was an ensuring public need and benefit in completing the works and they would help towards achieving carbon neutrality by 2030.

The Specialist for Procurement said it had been a complex project and in response to questions she and the Assistant Director for Service Delivery advised:-

· The proposed work at the Wincanton Leisure Centre would involve some civil works in order to lay a base for the air-source heat pump and the work would need to be completed by the end of June 2022 when the grant expired. An extension of time had been requested but the works had to be funded from capital rather than relying on the PSDS grant. The heat pumps were to be located outside classrooms which students would be taking exams.

· Officers had written to the Secretary of State to ask for a time extension for the grant in the exceptional circumstances.

· There would be a financial impact to Freedom Leisure in some lost revenue but they would return revenue to SSDC from year 3 of the contract.

The Chief Finance Officer confirmed that she had sought and obtained the agreement of the other Section 151 Officers of the other Somerset Councils as required by the Finance and Assets Protocol.

The Chairman of the Scrutiny Committee said they had studied the report thoroughly and the questions raised at their meeting were answered by officers. He said they felt that SSDC were being generous with Freedom Leisure by paying for the decarbonisation works, and had questioned that the new Leisure Centre in Chard would also require some decarbonisation works in the future.

At the conclusion of the debate, the recommendations were proposed and seconded and unanimously agreed by Members.

RESOLVED:	That District Executive recommend that the Chief Executive:-
	a.	agree an increase to the capital budget for the two projects of £1,646,468, using its delegated authority under part 3 of the Constitution (section 4.1) – as set out in paragraph 36 of this report. This would bring the combined total for both projects from £6,295,000 to £7,941,468 as shown in Table 2.
	b.	agree a virement of £1,015,495 from the approved Corporate Capital Contingency budget (currently standing at £4m) into these two project budgets. District Executive can vire any budget amount over £100k from one individual budget to another as long as there is no overall impact on the total budget agreed by Council (Financial Procedure Rule 2.3 (h)).
	c.	note that £630,973 of the increase proposed is eligible to be funded from Public Sector Decarbonisation Scheme (PSDS) grant the Council has already received and has not included in its capital-funding budget.
	d.	agree to delay the Public Sector Decarbonisation Scheme (PSDS) works at Wincanton Sports Centre and accept the consequential funding implications as explained in paragraph 38.
	e.	note that the Chief Finance Officer will seek agreement to approve these proposals with the other S151 Officers within the Somerset councils as required under the Finance and Assets Protocol.
Reason:	To request an increase in the capital budget in order to complete delivery of two capital projects to ensure the Council’s built leisure estate is fit for purpose for the next 14 years. Both projects will significantly reduce carbon emissions at Goldenstones, Wincanton Sports Centre and Westlands Sport and Fitness Centre in line with Corporate Objectives.

Supporting documents:

Agenda item

Leisure Facility Capital and Decarbonisation Programmes - Consideration of additional funding

Council and Democracy