Issue - meetings

(Contract and Commissioning – Cllr. N Avey) - To agree the delivery of the new Epping Leisure Centre project – (C-040-2022-23).

1)         The Cabinet agreed to the delivery of the new Epping Leisure Centre project and inclusion of the additional capital investment of £8.1 million within the Cabinet’s Budget and Medium-Term Financial plans; and

2)         The Cabinet agreed that Places Leisure appoint Pellikaan Construction Ltd to construct Epping Leisure Centre.

The Contracts and Commissioning Portfolio Holder introduced the report. The meeting noted that in January 2021, Cabinet agreed the Capital Programme proposal for the new Epping Leisure Centre at Bakers Lane and the delivery of the new Epping Leisure Centre by the Council’s incumbent contractor, Places Leisure. The new Epping Leisure Centre was to be delivered under the current Design, Build, Operate and Maintain (DBOM) contractual arrangement for Places Leisure to build the centre and operate it.

The new Epping Leisure Centre was to replace the existing Epping Sports Centre that has reached the end of its operational life and is expensive to operate and maintain.

Asked if there had been provisions made for costs for late completion, officers said that this was to be a fixed price contract. The provisional time scale for the completion of this project was to be around 2025.

Asked about the ground source heat pumps, the budget savings indicated and what was the governance for this project, officers responded that they would be developing alternative proposals for air source heat pumps to generate significant savings. As for savings, areas had been identified by the contractor. These were to be bottomed out during contract negotiations. As for governance, EFDC will project manage and Places Leisure will have a direct relationship with the contractor. Essentially the same governance arrangements as the Waltham Abbey leisure centre, although Qualis would also be involved due to highways works and the car parks.

The Leader thanked Mr Warwick and his team and the finance team for putting this project together.

Decision:

1)         The Cabinet agreed to the delivery of the new Epping Leisure Centre project and inclusion of the additional capital investment of £8.1 million within the Cabinet’s Budget and Medium-Term Financial plans; and

2)         The Cabinet agreed that Places Leisure appoint Pellikaan Construction Ltd to construct Epping Leisure Centre.

Reasons for Proposed Decision:

The construction of a new, modern leisure centre in Epping will work towards achieving the aim of the corporate Health & Wellbeing strategy, which is that Epping Forest District residents across all demographics can lead healthy and fulfilling lives.

The strategic need for a new leisure centre has been documented in the current DBOM contract as the existing Epping Sports Centre has reached the end of its building life and is inefficient to operate. A new leisure centre will be more energy efficient and support the Council’s aim to become carbon neutral by 2030.

Other Options for Action:

Delaying the project or any changes to the agreed project delivery will adversely impact the regeneration of the Epping sites under progress and any changes will require further consultation and formal agreement with Qualis Ltd.

Furthermore, existing Epping Sports Centre has reached the end of its designed life and will require significant investment to keep the sports centre operational. If the project cost is not viable, then it could be cancelled, and this would result in abortive costs incurred for the professional fees and surveys paid to  ...  view the full minutes text for item 105