Agenda item

Note – Revised Essential Reference Paper ‘A’ (attached) replaces pages 101 – 103 in the original agenda.

That it be noted that (A) the Head of Operations in consultation with the Head of Legal and Democratic Services negotiates the terms and conditions of a contract extension with the current leisure provider;

(B)     the principles of the physical activity strategy being including within the vision for leisure facilities outlined in paragraphs 2.2 and 2.3 of the report submitted before a further detailed revision is produced after public consultation, be endorsed; and

(C)    the extension of the Leisure Task and Finish Group to support the development of the leisure service specification in relation to key service policy considerations such as concessionary pricing policy, health and well-being and community development, be endorsed.

Part 1

The Executive Member for Health and Wellbeing submitted a report which provided an overview of the proposed mix of leisure facilities to be provided by East Herts Council over the next 20 years.  He outlined the options considered by the Task and Finish Group and the criteria against which these options had been assessed.  Key areas of risk for the Council were also detailed.

The Executive Member thanked the Task and Finish Group, the consultants and Officers for their detailed work on all the issues now highlighted in his report.  He also referred to the comments of the Overview and Scrutiny Committee, which were also outlined in the report submitted.

The Executive considered the recommendations made and supported by scrutiny within the context of a number of significant issues:

·        the future population growth projections;

·        evolving leisure trends;

·        the doubts over continued Education Funding Agency monies and the threat this posed for the long term sustainability of the joint pools;

·        the Council’s health and wellbeing and physical activity strategies;

·        the timing of the current contract which was due to end in 2018; and

·        if approved by Council, the need for a project board to oversee the procurement, design and build of future leisure developments.

Councillor M Pope expressed his disappointment with the proposals relating to Fanshawe and the impact this would have on residents in Ware.

The Executive Member commented that dialogue with schools would continue, but the Council needed assurances that any long-term arrangements were sustainable for the council taxpayer.

Councillor M Freeman, as Chairman of the Task and Finish Group, gave an assurance that all options had been considered very carefully.

The Executive Member for Finance and Support Services referred to the large capital investment involved and advised that the costs of this had been built into the figures detailed.  If approved, the current deficit on leisure would be replaced in the long term by a small operating profit.

The Executive supported recommendations (A) – (I) and approved recommendations (J) – (L)

RECOMMENDED – that (A) the views of Overview and Scrutiny Committee, at its meeting of 13 June 2017, as set out in section 10 of the report submitted, be noted;

(B)      the principles of investment and development for Grange Paddocks including costs for the submission of outline planning permission, be approved;

(C)      the principles of investment and development for Hartham leisure centre including costs of the submission of outline planning permission, be approved;

(D)      the principles of investment and development for Ward Freman, be approved;

(E)      Option B (no long term capital investment) in respect of Fanshawe Pool, be approved;

(F)       the future direction of travel for Leventhorpe as described in paragraphs 3.75 and 3.76 of the report submitted, be approved;

(G)      the Design, Build, Operate and Maintain model for Grange Paddocks Leisure Centre, be approved;

(H)      the Design, Build, Operate and Maintain model for Hartham Leisure Centre, be approved;

(I)        the leisure operating contract (with minor works included) model in respect of Ward Freman Centre, be approved;

RESOLVED - that it be noted that (J) the Head of Operations in consultation with the Head of Legal and Democratic Services negotiates the terms and conditions of a contract extension with the current leisure provider;

(K)      the principles of the physical activity strategy being including within the vision for leisure facilities outlined in paragraphs 2.2 and 2.3 of the report submitted before a further detailed revision is produced after public consultation, be endorsed; and

(L)       the extension of the Leisure Task and Finish Group to support the development of the leisure service specification in relation to key service policy considerations such as concessionary pricing policy, health and well-being and community development, be endorsed.

Part 2

The Executive Member for Health and Wellbeing submitted a report outlining proposals for facility developments at Herts and Essex School set within the context of the emerging leisure facility requirements, physical activity strategy, and the Bishop’s Stortford North Section 106 Sports Investment Strategy.

The proposal from Herts and Essex School was to develop a Sports Hub catering for a number of sports which could support the development of leisure and sports provision in Bishop’s Stortford.  Details, including the school’s business plan, were set out in the report now submitted.  The proposal was for a 20 year agreement (with scope for longer) with the development of a management committee which would include East Herts Council members and representatives of other lead partner organisations.  The total sum requested was £2.75m.

In considering the proposal, the Executive noted the following issues:

·        the likely timetable for the receipt of section 106 funds over a number of years;

·        the sum requested representing a significant portion of the section 106 funds available that would leave little for other potential leisure investment;

·        the capital financing implications and associated risks for the Council; and

·        the positive impact on sports participation by women and girls, which was a Sport England priority.

The Executive Member for Finance and Support Services commented on the costs and risks associated with forward funding the project.  He proposed that £1m from the Bishop’s Stortford North Section 106 funds, be allocated with the balance needed being offered as a loan on a commercial basis, subject to due diligence that would safeguard the Council’s position.

The Executive Member for Development Management and Council Support seconded this proposal and commented on the need to ensure that the Bishop’s Stortford North Section 106 funds were used for wider benefits and all sports.

The Leader commented that this was a prestige development and that the Council would continue its dialogue with the School to maximise community access.  She stated that the recommendation made was an exceptional circumstance and that other schemes that came forward would be reviewed on a case by case basis.

The Executive supported the recommendations as now amended.

RECOMMENDED – that (A) the views of Overview and Scrutiny Committee be noted;

(B)      investment to expand the leisure and sports provision in Bishop’s Stortford through  the development of a sports hub at Herts and Essex School be considered; and

(C)      £1m is allocated from Bishop’s Stortford North Section 106 funds, to be forward funded by the Council until such time as the Section 106 funds are received by the Council.  Further, that an interest-bearing loan to the School to complete the funding requirement for the project as now presented, be approved, subject to due diligence to be carried out by the Chief Finance Officer and Monitoring Officer, in consultation with the Executive Member for Finance and Support Services and the Executive Member for Health and Wellbeing.