Agenda item

Members considered the report in relation to the Leisure and Cultural Services – Local Authority Trading Company Business Case (LATC).  The Executive Director of Finance and Resources provided an overview and highlighted the key areas.

Members were advised on the progress that had been made following approval in March, 2018, to set up a not for profit, Teckal compliant, Local Authority Trading Company (LATC/NewCo) to operate a number of the Council’s Leisure and Cultural Services subject to approval of the final Business Plan.

The Business Plan summary and detailed report had been prepared by V4 Consulting with input from officers and Members which outlined the approach proposed to the delivery of services based upon the Council’s previous Committee decisions, Service Specification and Measures Dashboard.

The themes were highlighted in the report that supported the delivery of the Council’s Strategic Purposes of “Provide Good Things to See, Do and Visit” and “Help me to live my Life Independently.

NewCo would be formally set up and registered following Council approval of the transfer of services to it.  The Company would be constituted in accordance with the governance arrangements approved by Council.

The Council would be asked to formally delegate its powers as Shareholder to a Shareholder’s Committee (constituted of Members) which would oversee the Company and exercise the Shareholder’s powers on behalf of the Council.

A report would be presented to Members in October/November 2018, to establish the Shareholder Committee. It was proposed that to enable the recruitment to take place prior to going live on 1^st December a Member Panel sould be set up to undertake the selection process on behalf of the Shareholder Committee. Members were informed that the recruitment process had commenced this week.  It was further proposed that this panel should comprise the Leader, relevant Portfolio Holder and the leader of the opposition, or their nominees. This panel would be supported by two senior officers of the Council.

The service review and restructuring report for the remaining client side functions had been finalised. Staff and union consultation had been considered at Stage 3a in preparation for future discussions.  However until a formal decision had been made, the detailed consultation and engagement plans would not be formalised. They would be considered in accordance with all statutory requirements and the Council’s Reorganisation and Change Policy.

Officers had consulted with leisure development experts Alliance Leisure Services Ltd (ALS) to look at the potential development opportunities across three of its major facilities.

The investments had received appraisal by V4 to assess the rate of return on the investment to ensure financial viability and delivery of additional income to further develop the facilities in the Borough. The key investments were the Abbey Stadium Development; Palace Theatre, 3G and Parkour, Forge Mill Museum and Pitcheroak Golf Course. Clarity was provided that the Community Centres had been included in the specification since October, 2017 though the allotments would not now be included as previously planned.

Should approval be given to progress to Stage 3b, a new Risk Register would be produced to cover these aspects up to the transfer of services on the 1^st December, 2018.

RECOMMENDED

1)        approval of the Business Plan at Appendix 5 to include the key assumptions at Section 8 and confirmation of a date of transfer as from 1^st December 2018 for the following services:

·         Abbey Stadium Sports Centre

·         Palace Theatre and Palace Youth Theatre

·         Forge Mill Needle Museum and Bordesley Abbey Visitors Centre Inc. access to Bordesley Abbey Ruins

·         Community Centres at Windmill Drive, Oakenshaw, Batchley and Winyates Green; and

·         Pitcheroak Golf Course.

2)    approval of the establishment of a member panel to undertake the recruitment of the Managing Director and Non Executive Directors. It is proposed that this panel comprises the Leader, relevant Portfolio Holder and the leader of the opposition, or their nominees. This panel will be supported by 2 senior officers of the Council;

3)    approval of, in principle, the investment opportunities as detailed in Appendix 6 and request officers bring detailed business cases to the Board of Directors for final approval;

4)    approval of the funding of £55k from balances to fund an Electronic Point of Sale (EPOS) system to ensure the NewCo has the functionality to enable marketing, income generation and customer insight to be at its most effective;

5)    approval of a transfer from balances of £74k to cover the period of the initially agreed transfer date of 1^st September 2018 to the revised date of 1^st December 2018;

6)    approval of the measures framework as included in Appendix 3; and

7)    approval of the Company name as Forge Leisure Solutions trading as Forge Leisure.

(During consideration of this item Councillors Joe Baker and Debbie Chance declared other disclosable interests as they had been involved in the Executive Committee when a decision had previously been taken. As such they left the room during consideration of this item and took no part in the debate or voting thereon.  In the absence of the Chair Councillor Pattie Hill chaired the meeting). 

[During consideration of this item Members discussed matters that necessitated the disclosure of exempt information. It was therefore agreed to exclude the press and public during the course of the debate on the grounds that information would be revealed which relates to the financial and business affairs of the local authority and which relates to consultations and negotiations, including contemplated consultations and negotiations in relation to labour relations matters].