Agenda item

To consider a report which provides Members with the findings of an externally commissioned options appraisal of potential management options for the delivery of leisure and cultural facilities and services.

The Committee considered a report which provided Members with the findings of an externally commissioned options appraisal of potential management options for the delivery of leisure and cultural facilities and services.  The report provided Members with an overview/assessment of the options appraisal and identified additional work which might be required.  Members also had before them the minute and recommendation of the Overview and Scrutiny Committee’s meeting of 7th July 2015, which had been circulated as Additional Papers, in relation to the pre-scrutiny of this report.

Officers presented the report and in doing so tabled the following revised recommendation at 3 (a) to the report:

“Release of balances in 2015/16 of £150,000 to offset the income budget that has been allocated in the Medium Term Financial Plan.  This will therefore remove the £150,000 projected savings in 2015/16 (reference 3.9).”

Accompanying this was a statement from the S151 Officer advising that as a result of the financial statements being delayed the outturn monitoring statement had been withdrawn.  Whilst the accounts that had been submitted to Grant Thornton detailed a £819,000 underspend to budget, the S151 appreciated that the breakdown of this was not included in the agenda papers.  In order therefore to ensure that sufficient funds were available to meet the £150,000 shortfall, the S151 Officer proposed that recommendation 3 (a) of the printed report be revised to state that the £150,000 be released from balances in 2015/16.  The balances would then be more than replenished with the underspend for 2014/15 to offset this transfer.    

Officers highlighted the key issues of the report, including the various financial implications detailed.  The report had followed on from an Overview and Scrutiny Committee Task Group report in 2013 which had reviewed the Abbey Stadium, the findings of which were considered by the Executive Committee in June 2014.  In acknowledgement of the Task Group’s work and exploration of opportunities to make efficiencies/savings, the Strategic Management Team had directed the Head of Leisure & Cultural Services to commission an external options appraisal.  There had been significant delays in the production of the final report, mainly due to collation and production of the financial and service information required to support the appraisal, with the final draft appraisal having been received in January 2015.

Officers emphasized that the options appraisal before Members was not a comprehensive business case, with further work on producing a business case likely to cost an estimated £25,000 to £30,000.  There were limitations with the options appraisal and whilst it was the view of Officers that this provided Members with sufficient information on which to make a decision at this stage, there would be a significant amount of further work involved with any model which was chosen. 

There had been a regrettable time lapse since the original proposal as Officers had raised a number of questions on the options appraisal.  Management had also considered changes which had taken place in the market place since the initial brief and stated that other delivery models were available.  There were a number of alternative options which could be considered, including outsourcing part the service and possible opportunities around the establishment of a Local Authority Trading Company.  Officers had considered that in the best interest of the Council Members should have a wider understanding of the possible options in view of the fast-moving leisure services market.  The health and well-being of the people of Redditch was a vital factor to be considered, and transformation work was currently being carried out at the Council’s Sports Centres to gain a greater and more detailed understanding of what it was the Council should be prioritising and focusing delivery upon.

A huge amount of information had also been provided by Officers to the Overview and Scrutiny Committee.  Officers confirmed that in response to a query raised by the Overview and Scrutiny Committee, should Members agree that further work was required it was anticipated that the information referred to at paragraph 3.27 of the report could be made available to the Executive Committee within 3 months.

Members felt that it was important to ensure that the best solutions for delivering an improved service were identified, with a good range of options for the people of Redditch needing to be looked at.  The revised recommendation put forward by Officers addressed the immediate financial issue.

Members agreed that further work was required prior to a decision on the future delivery of leisure and cultural services and it was 

RECOMMENDED that

1)            there be a release of balances in 2015/16 of £150,000 to offset the income budget that has been allocated in the Medium Term Financial Plan.  This will therefore remove the £150,000 projected savings in 2015/16 (reference paragraph 3.9 of the report); and

RESOLVED that

2)            the transformation work which has commenced be completed to gain a greater user/customer perspective to influence preferred delivery model(s) (reference paragraph 3.26 of the report); and

3)            Officers report back to the Executive Committee at the earliest opportunity with a timescale for delivery of any additional work with any associated costs.