Agenda item
Appointed Leisure Facilities Provider
Decision:
RESOLVED: |
That Full Council agreed:- |
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a. |
The appointment of Wealden Leisure (trading as Freedom Leisure) to manage the Council’s leisure facilities;
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b. |
A total capital budget of £3.495m for 2021/22, being an increase of £2.46m on the existing budget, to be funded as detailed in Appendix B; |
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c. |
An increase in the revenue budget for 2021/22 and 2022/23 (of £574k and £557k respectively) to be funded from the MTFP support reserve.
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d. |
To note the additional net income stream to the Council arising from this contract (from 2023/24), as described in Appendix B, and the review that will be undertaken on how this income will be utilised.
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Reason: |
To agree the leisure provider for the operation of Council leisure facilities from 1st April 2021, and to request approval of the increased capital and revenue budgets needed to achieved the desired returns associated with the appointment. |
(Voting: unanimous in favour)
Minutes:
The Portfolio Holder for Finance and Legal Services advised that the report was brought forward due to the significant difference to the Medium Term Financial plan from the expected financial position. Some provisions had been made in the budget but the market responses received were different and it would provide a stronger recovery after the initial investment to provide a better service. The additional finance was affordable, and the funding needed in the first two years could be funded from the MTFP Support Fund, which was a reserve set aside for pressures such as this.
The Portfolio Holder for Health and Well-Being introduced the report and advised that the process had started over 12 months ago, but due to the COVID-19 pandemic it had been delayed. He thanked the Specialist for Strategic Planning and her team for the work they had completed to bring the proposal forward. Under the previous contract, the maintenance liability of the leisure buildings had previously been the responsibility of SSDC but this was being passed to the new leisure provider which would result in efficiencies in officer time and savings to the revenue budget. Support would be provided to the new operator through the COVID-19 process but this should result in income to SSDC in year 3. The capital investment at the sites would be necessary for the operator to achieve the revenue returns projected and would significantly improve the customer experience, with new exercise equipment, and improved group exercise facilities. The operator would deliver active programmes in target areas outside the centres and they would support the physical and mental health needs of the community as it recovered from the pandemic and years beyond.
The Specialist for Strategic Planning stressed this was a different contract to the previous one as it specified delivery of active programmes outside the centres. It would help to address some inequalities across the district. Investment was planned for the 3 centres of Wincanton, Goldenstones and at the Westland sport and fitness centre.
In response to questions from Members, the Specialist for Strategic Planning advised:-
· The successful leisure provider had committed to hold their prices and would review this in line with inflation in January 2022.
· When centres were closed due to the pandemic in 2020, the previous operator had suspended customer’s direct debit payments. Any membership credits would be carried forward and honoured by the new operator.
At the conclusion of the debate, the recommendations were proposed by Councillor Mike Best and seconded by Councillor Peter Seib and when put the vote, were unanimously confirmed by all Members.
RESOLVED: |
That Full Council agreed:- |
|
|
a. |
The appointment of Wealden Leisure (trading as Freedom Leisure) to manage the Council’s leisure facilities;
|
|
b. |
A total capital budget of £3.495m for 2021/22, being an increase of £2.46m on the existing budget, to be funded as detailed in Appendix B; |
|
c. |
An increase in the revenue budget for 2021/22 and 2022/23 (of £574k and £557k respectively) to be funded from the MTFP support reserve.
|
|
d. |
To note the additional net income stream to the Council arising from this contract (from 2023/24), as described in Appendix B, and the review that will be undertaken on how this income will be utilised.
|
Reason: |
To agree the leisure provider for the operation of Council leisure facilities from 1st April 2021, and to request approval of the increased capital and revenue budgets needed to achieved the desired returns associated with the appointment. |
(Voting: unanimous in favour)
Supporting documents:
- 9 Appointed Leisure Facilities Provider, item 265. PDF 437 KB
- 9 Leisure Appendix A, item 265. PDF 294 KB
- Restricted enclosure View the reasons why document 265./3 is restricted