Purpose

To present identified
opportunities which will improve carbon reduction and energy saving
measures at the Leisure centres, and to provide a recommendation
for a preferred technology mix to move into delivery at both PFI
sites ensuring optimum decarbonisation and / or energy cost
saving.

Decision

RESOLVED to RECOMMEND to FULL COUNCIL:
 
1)    
agree to the release of funds up to
£530,000 from Growth Reserves to enable to the
delivery of preferred technology mix (Option 2 of this report) to
ensure improvements at both PFI sites for carbon reduction and / or
energy cost saving.
 
2)    
to delegate authority to accept the terms and
conditions of any future grant funding secured to Executive Member
for Health & Communities in consultation with the Assistant
Director Contracts and Operations as officers continue to explore
all external funding opportunities.
 
3)    
That delegation be given to the Assistant Director
Contracts and Operations and the Council Solicitor in consultation
with the Executive Member for Property, Projects and Procurement to carry out negotiations
with Parkwood Leisure and associated companies to obtain the best
benchmarking outcome for the Council.
 

Reasons for the decision

Option 2 (as outlined in Para
2.2 within the report) offers the largest mitigation in terms of
revenue impact for capital investment made and provides a
significant improvement in terms on annual carbon
reduction.
 
Although option 3 (as outlined
in Para 2.3 within the report) would see further annual cost
savings and annual carbon reduction, the difference in both areas
when compared to option 2 which would be gained from a significant
uplift in capital expenditure does not lead to a recommended
option.
 
As part of the PFI contract, a
contractual benchmarking exercise is currently taking place which
will result in an increase to the payment made to the leisure
contractor in April 2024. The initial benchmarking figure, which
would fall to the Council, received from leisure operator on
31st May 2023 was £545,651. As
identified in para 3.1 of the report, capital expenditure to fund
the installation of these decarbonisation / energy saving
technologies can be used as part of this process to mitigate
against these costs as the leisure operator will benefit short to
medium term from reduced energy consumption and therefore lesser
utility costs.
 

Alternative options considered

Option 1 - To release funding
to the value of £238,675 (£240,000) and
proceed with delivery of 'Option 1' from report. This would
see the following delivered at Thetford & Dereham. Installation
of destratification fans (pool hall only), BMS optimisation works,
lagging improvements. This option would see an estimated overall
cost saving of £77,169 across both sites (Thetford =
£20,270, Dereham = £56,899) and a reduction in total
annual carbon emissions (TCO2e) from both centres would see an
estimated overall annual carbon reduction of 105.06 tonnes across
both sites (Thetford = 38.79, Dereham = 66.27) *
 
Option 2 - To release funding
to the value of £528,524 (£530,000) and proceed
with delivery of 'Option 2' from report.This would see the
following delivered at Thetford & Dereham. Installation of
destratification fans (whole centre), BMS optimisation works,
lagging improvements, optimisation of heating systems. Thetford
would also see replacement of single glazed windows. This option
would see an estimated overall cost saving of £116,171 across
both sites (Thetford = £51,322, Dereham = £64,849) and
a reduction in total annual carbon emissions (TCO2e) from both
centres would see an estimated overall annual carbon reduction of
175.55 tonnes across both sites (Thetford = 89.10, Dereham = 86.45)
(Recommended)*
 
Option 3 - To release funding
to the value of £1,016,215 (£1,020,000) and
proceed with delivery of 'Option 3' from report. This would
see the following delivered at Thetford & Dereham. Installation
of destratification fans (pool hall only for Thetford, whole centre
for Dereham), BMS optimisation works, lagging improvements,
building fabric improvements, optimisation of heating systems. This
option would see an estimated overall cost saving of £122,178
across both sites (Thetford = £54,127, Dereham =
£68,051) and a reduction in total annual carbon emissions
(TCO2e) from both centres would see an estimated overall annual
carbon reduction of 190.38 tonnes across both sites (Thetford =
97.42, Dereham = 92.96) *
 
Option 4 - Do
nothing.
 
*All option costings above are inclusive of design / project
management fee estimates and contingency