Issue - meetings

Approved the One Leisure performance targets for income, controllable costs and net controllable costs as outlined in the report; requested the General Manager, One Leisure to draft a business plan for the start of 2012/13 through which the performance targets will be achieved and produce separate accounts for accounting reporting purposes and managing the controllable budget and that this business plan be presented to Cabinet and the Overview and Scrutiny Panel (Economic Well-Being) for review by June 2012; requested that the performance against targets be reported to Overview and Scrutiny (Economic Well-Being) Panel on a quarterly basis; agreed not to introduce a deferential pricing for non-residents of the District;  agreed that the One Leisure Working Group should continue in its current form and investigate  which business model One Leisure should employ as well as assisting with the methodology for the quantification of "social value".

(Councillors S Greenall and T V Rogers and Mr R Hall, Members of the One Leisure Working Group, were in attendance and spoke on this item)

A report by the Overview and Scrutiny Panel (Economic Well-Being) was submitted (a copy of which is appended in the Annex to the Minute Book) which summarised the findings of the study by the Panel into the financial performance of One Leisure.

Executive Councillors were acquainted with the key findings of the group in relation to overheads and recharging, crèche facilities, general admissions, pricing, business planning and alternative methods of service delivery.  In so doing, mention was made of the need to build capital costs into the overall One Leisure financial model and to develop a methodology for the quantification of “social value”.  Having thanked the Working Group for their efforts in producing a thorough and comprehensive report, the Cabinet

RESOLVED

  (a)  that the One Leisure performance targets for income, controllable costs and net controllable costs as outlined in paragraph 4.17 of the report now submitted be approved;

  (b)  that the General Manager, One Leisure be requested to draft a business plan for the start of 2012/13 through which the performance targets are to be achieved and produce separate accounts for accounting reporting purposes and managing the controllable budget and that this business plan be presented to the Cabinet and the Overview and Scrutiny Panel (Economic Well-Being) for review by June 2012;

  (c)  that the performance against targets be reported to Overview and Scrutiny (Economic Well-Being) Panel on a quarterly basis;

  (d)  that deferential pricing for non-residents of the District not be introduced;

  (e)  that the One Leisure Working Group be retained in its current form to investigate which business model One Leisure should employ; and

  (f)  that the One Leisure Working Group be requested to assist the Executive Councillor for Healthy and Active Communities with the development of a methodology for the quantification of "social value".

To receive the report of the Working Group.

(Councillor T D Sanderson, Executive Councillor for Health and Active Communities, was in attendance for this item).

With the assistance of a report by the One Leisure Working Group (a copy of which is appended in the annex to the Minute Book) the Panel was acquainted with the outcome of the deliberations of the Working Group. The Working Group had been established to review the financial performance of One Leisure and to make recommendations on the services’ future strategic direction.

Attention was drawn to an update which was circulated at the meeting that incorporated the latest financial position as reflected in the Council’s Medium Term Plan. In considering the revisions to the financial information, Members queried whether the revenue projection for 2012/13 was robust given that there was no proposal to increase prices in the current year. In response the Head of Financial Services stated that a cautious approach would be taken to maintenance and that income following developments at Huntingdon and St Neots had been higher than expected. It was also envisaged that income would further improve following planned development at One Leisure St Ives. The General Manager, One Leisure indicated that he was comfortable with the revised figures.

Mr R Hall drew attention to the section of the report on Alternative Delivery Models. He reported that the majority of Councils had moved away from in-house delivery. He referred to a report prepared by Improvement East in March 2011 which indicated that almost 75% of Councils in the East of England had externalised their leisure services. It also identified five preferred alternative models, which could be considered for the operation of the service. The Working Group had recommended that investigations should be undertaken to establish the most appropriate business model for the service.

Comment was made on the significant cost of the Council’s crèche facilities. It was pointed out that the Working Group had looked at this area but had deliberately avoided micromanaging the service and the recommendations relating to the establishment of a business plan would cover such matters. Having noted that all the centres would be included in the business plan, the General Manager reported that it was unlikely that the centres at Ramsey and Sawtry would generate a profit in the longer term. Whereupon and subject to the incorporation of the revised figures into the report, it was

RESOLVED

that the Working Group’s report and recommendations be endorsed for submission to the Cabinet.

To receive a report from the One Leisure Working Group.

15 Minutes.

(Councillor T D Sanderson, Executive Councillor for Healthy and Active Communities, was in attendance for consideration this item).

With the assistance of a report by the One Leisure Working Group (a copy of which is appended in the Annex to the Minute Book) the Panel was acquainted with the outcome of the deliberations of the Working Group which had been established to review the financial performance of One Leisure and to make recommendations on the service’s future strategic direction. Attention was drawn to an update that was circulated at the meeting (a copy of which is also appended in the Annex to the Minute Book) which incorporated the latest financial position reflected in the Council’s Medium Term Plan.

As Members of the Working Group, Mr R Coxhead and Councillor Mrs D C Reynolds reported on the extent of the work undertaken by the Working Group and thanked Officers for their contributions to their investigations.

Having reminded the Panel of the Council’s current budgetary position, Councillor I C Bates commented that the Council was not statutorily required to provide leisure services and that the service was only utilised by a small proportion of the District’s residents. He placed on record his disappointment that admissions to the Ramsey and Sawtry Centres had declined between April 2009 and July 2011 and that the decision had been taken not to increase One Leisure prices in January 2012. In concluding, Councillor I C Bates stated that the One Leisure service should adopt a more business-like approach to its operations, with more challenging targets being set to reduce the cost of the service to the Council. In response, Members of the Working Group reported there were areas within the One Leisure service that were successful at generating income and that it was planned to investigate whether the service should employ a new business model.

Councillor T D Sanderson, Executive Councillor for Healthy and Active Communities, confirmed that efforts were being made to reduce One Leisure’s costs. Options that were currently being explored included the possibility of “zero basing” staff, reviewing the Centres’ crèche facilities and working with Circle Healthcare as to how it might utilise the Leisure Centres in the future.

RESOLVED

that the One Leisure Working Group’s report and recommendations, as amended, be endorsed for submission to the Cabinet.