Issue - meetings

To consider a report by the Head of Leisure Services on an Independent Review of the Long-Term Operating Model for One Leisure.

Executive Councillor: S Taylor

The Cabinet has approved the following recommendations:

a)  the Independent Review and its key recommendations;

b)  the continuation of One Leisure with the recommended “Transformed In-House” operating model;

c)  to commence the development of Outline Business Case’s (OBC’s) and feasibility studies on capital investment, subject to final Cabinet approval on any investment proposals that the feasibility studies recommend;

d)  the proposed medium to long term operating model for One Leisure and agreed it will be reviewed in 3 years in line with recommendations by the independent consultant within this report;

e)  that an annual update be scheduled on actions against all the recommendations made by the independent consultant;

f)  that the Interim Head of Leisure Service has discharged his original remit by proposing and seeking endorsement for a proposed long-term operating model for One Leisure; and

g)  the current leadership arrangements for One Leisure be formalised to ensure continuity and consistency.

With the aid of a report prepared by the Head of Leisure and Health (a copy of which is appended in the Minute Book) the Cabinet received a report that provided a briefing and sought endorsement from Members on the work undertaken by independent advisors on the Long-Term Operating Model for One Leisure.

By way of background the Executive Councillor for Leisure, Waste and Street Scene Councillor S L Taylor reported that following a tender exercise, the District Council had commissioned the First Point Management and Consultancy Limited in September 2023 to undertake an independent review of the in-house leisure function, to consider initial transformation work undertaken, and to determine the most appropriate future operating model for One Leisure.

The Cabinet noted that since the COVID-19 pandemic there has been an acute rise in utility costs and cost of living crisis have resulted in a more cautious market and operators becoming risk adverse, changing, and suppressing the appetite of private operators to take commercial risks. Therefore, it could be argued that the required service specification, and performance framework for the Local Authority Trading Company (LATC) model would provide the Council with direct control and influence.

Members attention was then drawn to the comments of the Overview and Scrutiny Panel, in particular the question from Councillor Alban who had requested an update on the Sawtry Centre on behalf of Councillor Bywater, in response to which, the Cabinet understood that the Centre had been transferred to another owner in 2019 and whilst the Team have endeavoured to provide support and positive outcomes in the best interests of the local community, the onus to do so rested with the private operator.

Finally, Members noted that the review had highlighted the wider contribution that Active Health can make with partners across the wider health landscape, and it remains a key delivery component of the local service operating model proposed and as part of this is a key opportunity for One Leisure. The Cabinet agreed that the service should seek to develop this function across a wider partnership landscape and exploit the opportunity that currently exists within the Cambridgeshire and Peterborough Integrated Care System. The leverage of additional funds to support longer term health conditions across communities covering the district will require close collaboration and work at a senior executive level. It was agreed that this could help One Leisure to develop into a more coherent community focused service by moving away from leisure centre facility management into a greater integrated leisure service delivering tangible outcomes across communities.

Following the completion of the independent review it has concluded that One Leisure should pursue a “Transformed In-House” operating model over the short-medium term.

Accordingly, the Cabinet

RESOLVED

a)  that the Independent Review and its key recommendations be approved;

b)  that the continuation of One Leisure with the recommended “Transformed In-House” operating model be approved;

c)  that commencement of the development of Outline Business Case’s (OBC’s) and feasibility studies on capital investment, subject to final Cabinet approval  ...  view the full minutes text for item 76

The Independent Review of the Long Term Operating Model for One Leisure is to be presented to the Panel.

Executive Councillor: S Taylor

By means of a report and presentation by the Head of Leisure Services, (a copy of which was appended in the Minute Book), the Independent Review of Long-Term Operating Model for One Leisure was presented to the Panel.

Councillor Shaw expressed his support for the recommendations within the review and observed that the issues faced by the transfer of the Sawtry centre to an external company reinforced the need to continue to keep the service within the Council. This was a sentiment shared by Councillor Hunt, who enquired what changes users might expect during the transformation process. The Panel were assured that this work was underway and that although the changes to be made would ensure the commerciality of the centres remained this would also ensure self sufficiency.

Following an enquiry from Councillor Harvey relating to the potential reclamation of VAT, the Panel heard that this was being investigated by the Finance team and a further details would be brought to the Panel at a later date. 

Councillor Burke stated that the proposed changes to the One Leisure St Ives Outdoor centre were good to hear, and enquired about the potential inclusion of Health Hubs within the centres. The Panel heard that the team continued to work with Health Partners to maximise and develop opportunities.

Following a request from Councillor Alban to clarify the increased budget figures for One Leisure, the Panel heard that the achieved figures for the 2022/23 budget had set the budget target for 2023/24 and was due to an increase in revenue, an agree price increase, a capital bid being brought forward and the continued trajectory of growth within the industry.

Councillor Alban requested an update on the Sawtry centre on behalf of Councillor Bywater, in response to which, the Panel heard that the centre had been transferred to another owner in 2019 and whilst the team have endeavoured to provide support and positive outcomes in the best interests of the local community, the onus to do so does rest with the private operator.

Following a further question from Councillor Alban, the Panel heard that One Leisure Direct were more than a call centre, and that a consultation was currently underway which included a review of all One Leisure staff structures and responsibilities.

Following the discussion, it was

RESOLVED

that the comments of the Overview and Scrutiny Panel be passed to Cabinet for their consideration when making a decision upon the recommendations contained within the report.