Agenda item

The Executive is asked to resolve to recommend to Council: 

     I.        That a revised capital budget of £31,137,252, as shown in the financial viability assessment at Exempt Annexe 1, be allocated to deliver a new-build Cranleigh Leisure Centre;

    II.        That the leisure centre is built to Passivhaus certification standards; and

  III.        The delegation of authority to the Joint Director for Transformation and Governance to appoint all professional services, including, but not limited to, the Employers Agent, Design team and build contractor, and to complete and execute all required contractual documentation.

       I.          That a revised capital budget of £31,137,252, as shown in the financial viability assessment at Exempt Annexe 1, be agreed to deliver a new-build Cranleigh Leisure Centre;

     II.          That the leisure centre is built to Passivhaus certification standards;

   III.          That authority be delegated to the Joint Director for Place, in consultation with the relevant portfolio holder, to submit a planning application in respect of the proposed new build;

  IV.          That authority be delegated to the Joint Director for Transformation and Governance, in consultation with the relevant portfolio holder, to conduct the procurement of a contractor for the build and all related professional services, including, but not limited to, the Employers Agent and Design team;

     V.          That authority be delegated to the Joint Executive Head of Legal and Democratic Services to complete and execute all necessary contractual documents.

58.1         Cllr Townsend provided updated recommendations to the meeting, as drafted by the Legal advisor. The updated recommendations were displayed to those present and those watching the meeting remotely. 

58.2         Cllr Townsend stated that the proposal was in agreement with the recently procured leisure management contract and the council priorities to improve residents’ health and wellbeing, support a resilient local economy by attracting visitors to the borough, secure health benefits through rehabilitation, connect with the local community and facilitate improvement of residents’ mental health. The carbon neutrality benefits of the proposal were also emphasised.

58.3         GT3 had been appointed as the architects with whom the Council would move into the detailed design phase. A revised capital budget of £31.1 million had been established to account for build cost inflation, and a budget review had identified the differences between that and the initial cost plan. The revised cost remained within the limit set by the treasury management strategy. Potential cost reductions would be investigated throughout the design phase, although Cllr Townsend cautioned that any reduction from the cost plan may compromise the services and facilities offered to the local community.  The Leader assured the Executive that the Passivhaus standard also conferred better build quality and cost control alongside carbon neutrality benefits.

58.4         Having registered to speak, non-voting visiting Member Councillor Hyman was concerned about build cost inflation since the project’s inception, and queried whether the treasury management strategy required the Council to have an exit strategy for the project which would be triggered once a specific cost threshold would be exceeded.

58.5         The Leader reminded the Executive that the project’s cost had been unstated under previous administrations, and that the lower energy costs associated with the new build specification would represent a saving over coming years. The Leader also mentioned safety concerns with Cranleigh Leisure Centre’s present estate.

58.6         Cllr Merryweather clarified in response to Cllr Hyman that the exit strategy was set out in the asset management strategy and that the current proposal represented the exit strategy from the problems posed by the poor build quality of the current Cranleigh Leisure Centre. He noted that the Executive was at a review point in deciding whether to proceed and that the evidence showed the financial benefits of the proposal.

58.7         The Deputy Leader agreed with Cllr Merryweather’s remarks, but cautioned that cost controls should continue to be exerted. The Leader acknowledged that the earliest commitment possible would help to control costs and reiterated the cost benefits conferred by the Passivhaus standard.

58.8         Cllr Townsend also informed the Executive that the new design would involve the usage of fewer chemicals in the building’s water supply; greater control of the water supply; no damp or mould within the building; and a longer lifespan for the building. The Executive heard that the extra investment for Passivhaus certification would be recouped within 9-15 years at the lowest predicted level of energy saving, and that a 15% cost contingency was factored into the current pricings to account for possible future cost increases.

     The Executive RECOMMENDED to COUNCIL:

1.     That a revised capital budget of £31,137,252, as shown in the financial viability assessment at Exempt Annexe 1, be agreed to deliver a new-build Cranleigh Leisure Centre

The Executive RESOLVED unanimously:

2.     That the leisure centre be built to Passivhaus certification standards;

3.     That authority be delegated to the Joint Director for Place, in consultation with the relevant portfolio holder, to submit a planning application in respect of the proposed new build;

4.     That authority be delegated to the Joint Director for Transformation and Governance, in consultation with the relevant portfolio holder, to conduct the procurement of a contractor for the build and all related professional services, including, but not limited to, the Employers Agent and Design team;

5.     That authority be delegated to the Joint Executive Head of Legal and Democratic Services to complete and execute all necessary contractual documents.

Reason

To deliver a new build low carbon leisure centre in Cranleigh, as per Council approval in December 2021.