Agenda item - LEISURE INVESTMENTS AND DECARBONISATION PROJECT

REPORT OF THE SERVICE DIRECTOR – PLACE

This report provides an update to Council on Phase 3c of the Public Sector Decarbonisation Scheme (PSDS) project for the Council’s three leisure centres and seeks approval to take the next steps to deliver the project. It also seeks an increase in the capital allocation for the fitness extension at Royston Leisure Centre.

RESOLVED:

(1) That Council approves an increase in capital expenditure of £2.4m into the capital programme for the decarbonisation work to the three leisure centres. The overall budget will be profiled across 2024/25 and 2025/26.

(2) That Council approves an increase in the capital budget of £250k for the Royston Leisure Centre (RLC) gym extension, to ensure the extension is built to net zero carbon standards.

(3) That Council approves revenue expenditure of up to £757k for termination and removal fees of the gas CHPs at North Herts Leisure Centre and Hitchin Fitness and Swimming Centre. This would be funded from General Fund reserves.

REASONS FOR DECISIONS:

(1) In May 2019, North Herts Council passed a climate emergency motion. This declaration asserted the council’s commitment toward climate action beyond current government targets and international agreements. This is currently pursued through the North Herts Climate Change Strategy 2022-2027 which sets out what the council will aim to do to reduce its own carbon emissions to achieve Carbon Neutrality for the Council’s own operations by 2030 and a Net Zero Carbon district by 2040.

(2) Gas use from our leisure centres is a significant contributor towards the Council’s own emissions. In 2022-23, gas use across the three leisure centres accounted for 1,428 tonnes CO2e. This equates to 45% of the Council’s Scope 1-3 emissions. Taking action to replace gas heating for our leisure centres with low carbon alternatives is the single most effective action we can take towards meeting our target of being carbon neutral by 2030.

(3) There is currently a capital allocation in the 2024/25 budget to build a gym extension at Royston Leisure Centre.

Audio recording – 2 hours 38 minutes 13 seconds

Councillor Mick Debenham, the Executive Member for Environment, Leisure and Green Spaces presented referral 8E from Cabinet and the report ‘Leisure Investments and Decarbonisation Project’ and stated that:

· The Council secured £7.7M of funding for this project in February 2024 for Solar PV panels and Air Source heat pumps for the three Leisure centres. Match funding of £3.06M had also been secured.

· The leisure centres contributed to 45% of the carbon emissions by the Council, and this project would generate a carbon saving of 60% as stated in paragraph 8.1 of the report.

· The Council had declared a Climate Emergency, and this would be the most significant project to reduce the carbon footprint of the Council.

· Willmott Dixon had produced a feasibility report for the project, and they had identified some technical issues which had increased the project costs, these were detailed in paragraph 8.6 of the report.

· There was a termination fee for two of the leisure centres Combined Heat and Power Units (CHP) and this was highlighted in paragraph 8.10 of the report.

· The cost for the Royston gym extension had increased and this was detailed in paragraph 8.15 of the report and related to the requirement to build the extension to net zero carbon standards.

The following Members took part in debate:

· Councillor Ralph Muncer

· Councillor Matt Barnes

· Councillor Martin Prescott

· Councillor Ian Albert

· Councillor Ruth Brown

· Councillor Daniel Allen

Points raised in debate included:

· The project would not be affordable without the government funding.

· The gym extension would generate revenue and benefit residents.

· The Royston Learner Pool was not a viable project currently. However, the business case should be reviewed at a later date.

· This project and the Royston Learner Pool were discussed at length by the Overview and Scrutiny Committee.

· The Royston Learner Pool project should be revisited should funding become available.

· The project would reduce carbon emissions and show a commitment to achieving the net zero target.

· Officers were actively looking for other funding options for the Royston Learner Pool.

· The termination fee was disappointing.

· The use of a Quantity Surveyor would hopefully drive down the project costs and improve how the project would be managed.

· Officers proactively found and secured the funding for this project.

Councillor Mick Debenham proposed and Councillor Daniel Allen seconded and, following a vote, it was: