Appendix E3

South Hams District Council

Business Case Outline

 

The Business Case is used to obtain management commitment and approval for investment in business change including projects and programmes, through rationale for the investment.

The Business Case provides a framework for planning and management of the business change. The ongoing viability of a project or programme will be monitored against the Business Case.

 

De-carbonisation Plans
Senior Responsible Officer:	Gavin Priest	Project Sponsor ELT Member:	Laura Wotton
Date Updated:	18/12/22	Version:	2.1
Programme/Project Description:	Decarbonisation Surveys – South Hams District Council Assets
Reviewers:
Author(s):	Assets team

 

 

Guidance

 

An outline business case is a document setting out the initial justification for investment of resources (people, time and money) into a project or change being considered. This outline business case is to be completed at the initial idea stage of any project.

 

Once approval has been given to the outline case, solution design work will begin and the project will undertake a more detailed Business case setting out full implementation and business running costs, the benefits of implementation and an assessment of how implementation would be managed and the associated change risks and issues. 

 

Capital projects will be scored on the following criteria:

 

•           Health and Safety compliance

•           Essential to keep operational assets open

•           Fit with the Council’s Delivery Plans for ‘Better Lives for All

•           To rationalise service delivery or service improvement

•           To generate income, capital value or to reduce revenue costs

 

It is important that future bids for capital are aligned with the review of the thematic delivery plans and aims within ‘Better Lives for All’.

 

 

 

 

 

 

 

1.         Project Summary – Project objectives and what it aims to achieve.

 

To commission and oversee, surveys that will establish the energy usage and energy losses of our buildings and recommend measures that could be implemented in a phased approach that will reduce both.

 

The commission will set out; specific recommendations, what impact they will have in reducing carbon and running costs, and how much they will cost to install.  Examples may include the installation of alternative heating systems or improved insulation.  An assessment of Return on Investment will also be made.

 

The commission will include:

 

·         Follaton House

·         Waste Transfer Depots

·         Property Services Depot

·         Commercial Properties

·         Industrial Units & Industrial Estates

 

N.B. Leisure Centres within South Hams and operated by Fusion are already being covered by a separate decarbonisation programme.

 

 

2.         Why we need the Project – Background and problem/opportunity to be addressed.

Aligned to our Corporate Strategy, we are committed to getting the Council to carbon neutral by 2030, including our Scope 1 & 2 emissions.  Emissions from our buildings represent a significant part of our scope 2 emissions and need to be reduced by implementing improvement measures. 

 

These measures are building specific and require detailed investigation and modelling work to ensure the correct measures are identified.  The cost of implementation and operating costs of the measures needs to be understood.

 

The increase in the cost of gas and electricity, provides the economic backdrop and imperative to reduce gas and electricity usage, whilst providing the opportunity to investigate alternative renewable energy sources where feasible.

 

 

3.         Project Scope – State what’s IN and OUT of Scope.

 

IN:        Surveys of the buildings, interrogation of existing utility usage, baseline consumption measures, improvement options with ROI’s, priority implementation works.

 

OUT:    Undertaking of improvement works.

 

 

 

 

 

4.         Benefits – Brief indication of any potential financial and non-financial.

 

Reduction in carbon emissions, reduction in utility bills, meeting our corporate strategy

 

 

 

5.         Links and Dependencies – To other projects currently live.

State any links and dependencies with other projects and organisations.

 

Leisure Centre Decarbonisation Project.

 

6.         Risks – Note of any significant potential risks.

 

No risks to undertaking the surveys other than the need to resource the project from within Assets.

 

 

7.         Project Resources – What people will the project need?

 

Gavin Priest – Principal Building & Facilities Officer

External Consultant

 

8.     Explain how the project meets the five criteria listed below.

 

Health and Safety compliance	N/A
Essential to keep operational assets open	Yes, due to improved running costs
Fit with the Council’s Delivery Plans for ‘Better Lives for All’	Yes
To rationalise service delivery or service improvement	Yes, improved working environment for building users.
To generate income, capital value or to reduce revenue costs	Yes - reduced costs, reduced carbon emissions, increased tenant opportunities.

 

 

 

 

 

 

Capital costs and revenue implications

 

In the table below, please detail the capital budget requirement over the next three financial years as well as any revenue implications (maintenance, repairs, etc…)

 

Financial year	Capital cost	Revenue implications
2023/24	£75k (survey work only)
Total cost	£75k

 

 

 

 

 

 

Please detail in the box below how this project will be financed:

Financial Year	Capital grants/ contributions	S106	Reserves	Capital receipts	No funding source identified
2023/24			£75K Capital Programme Earmarked Reserve
2024/25
2025/26