In response to comments made in the previous agenda item around energy efficiency, before the Service Lead – Place, Assets and Commercialisation presented his report he updated Members on his new draft Service Plan for next year that had 2 items related to climate change and energy efficiency measures for LED properties addressing those issues raised.
The report presented to Members on building maintenance and investment requirements provided an overview of the future cost and investment projections alongside income projections required to maintain the existing stock of leisure assets over the next 30 years captured through a stock condition survey for each of the 12 buildings.
The Service Lead – Place Assets and Commercialisation referred to paragraphs 2.2 and 2.5 and Members noted £26.6m was needed to be invested in the 12 buildings which was reduced to just under £23m taking into account school contributions for the dual use sites. Members also noted that whilst there was an average requirement of £740k per annum to spend on the 12 buildings which consisted of revenue and capital spend, there was a cost pressure in the first 7 years requiring investment in some years of £1m.
He advised the current leisure portfolio property related budgets were £410k revenue and circa £1.5m for capital expenditure over a 5 year timescale (£300k per annum), equating to spend of £720k per annum in recent years.
Members noted that a significant amount of costs would be saved by keeping maintenance works on LED properties in-house rather than employing external contractors.
The Chair sought clarification on whether the figures had been factored into the mid-term financial plan. In response the Strategic Lead for Finance advised that £409k was included in the mid-term financial plan. Members noted that total costs of investing in the LED buildings would also include a large capital programme that would run on an annual basis for a number of the properties.
The Chair welcomed comments from Forum Members and Non-Forum Members which included:
· Clarification sought on whether these figures did not include major improvements. In response the Service Lead – Place Assets and Commercialisation advised that the costs were to replace components at end of useful life, reactive maintenance and similar and not specifically to improve.
· Clarification sought on whether there would be an opportunity for funding for these improvements. In response the Strategic Lead for Finance advised the council had in the past put in its own capital resources but also that through LED there had been successful bids to Sports England for significant funding. Peter Gilpin confirmed LED had been very successful in lottery bids managing to secure £2m worth of investment and advised LED were investing quite a lot through a loan from the council.
· Suggestion made by Peter Gilpin as another agenda item was to look at reviewing the dual use agreements at schools and raised concerns that some activities at school sites have restricted access;
The review of the LED portfolio building maintenance and investment requirements be noted.