Agenda item

The Interim Section 151 Officer presented an update in respect of Council funding for and the support the authority provided to Rubicon Leisure Limited.  This report had been produced following Members’ consideration at the previous meeting of a proposed response to correspondence that had been received from the company earlier in the year regarding the support services that the Council provided.

The Committee was advised that the Section 151 Officer had attended a meeting with the Rubicon Board six weeks prior to the latest Shareholders Committee meeting.  During this meeting, consideration had been given to the challenges created by the Council’s new finance system in respect of submitting company accounts.  Unfortunately, there remained a need to resolve the suspense accounts for both the company and the Council and it was possible that this would mean that the company’s accounts for 2022/23 would not be ready in time to submit to Companies House by 31^st December 2023.  A decision would be taken shortly as to whether to request an extension to the deadline for the submission of these accounts.

The Council had had a number of Service Level Agreements (SLAs) in place with Rubicon Leisure Limited when the company was first launched.  By November 2023, Financial Services, including Payroll, Parks and ICT support continued to be provided to Rubicon Leisure Limited by the Council.  However, HR support for the company had transferred from the authority to an external provider.  The SLAs would be reviewed further in due course.

An application had been submitted for grant funding to cover some of the company’s utilities costs.  The second round of this grant funding process was currently taking place and a further application would be submitted.  The Committee was advised that the process of applying for this grant funding could be quite onerous.  the Council was aiming to fund the redevelopment of the changing rooms and toilets at the Abbey Stadium as a part of the capital programme.

As part of the Council’s capital programme, there were plans to invest £600,000 in Rubicon Leisure Limited and the wider Arrow Valley Park over the following three year period.  This capital funding would be invested in improvements to the play areas, improvements to the toilets in the Arrow Valley Park and countryside centre, the installation of kiosks in the Arrow Valley Park and improvements to the kitchen facilities at the site.

Following the presentation of the report, Members discussed a number of points in detail:

·             The quality of the road surface of the car park located closest to the lake in the Arrow Valley Park and the potential for capital funding to be used to undertake improvement works at the site.  Officers explained that no bid had been received from the Council’s Leisure team for capital funding to address this issue, but the Interim Section 151 Officer undertook to discuss the matter further with relevant Officers.

·             The £177,000 grant funding that had been provided through Sport England for Rubicon Leisure Limited and the extent to which this funding was ring fenced.  The Committee was informed that the funding was ring fenced and there was a requirement to provide data to demonstrate that the funding had been used as intended.

·             The extent to which progress had been made since the previous meeting of the Committee in terms of recruitment of a Company Secretary.  Members were advised that no Company Secretary had yet been appointed but this would be discussed further if required.

·             The extent to which it would be possible to designate the Arrow Valley Lake as suitable to use for outdoor bathing.  Members were advised that there were barriers which meant that this option was not available moving forward.

·             The identities of the Directors appointed to Rubicon Board.  Members were advised that there was a mixture of Non-Executive Directors, appointed following a recruitment exercise, and Executive Directors, appointed from amongst senior officers of the Council.

·             The potential for members of the Shareholders Committee to meet with members of the Rubicon Board.  Members commented that they were keen to meet with members of the Rubicon Board, potentially at the Arrow Valley Countryside Centre, preferably prior to or at the following meeting of the Committee.

·             The underspend recorded in the report and the company’s current reserves.  Members were advised that exact figures could not be provided in respect of this matter until the accounts were closed. 

·             The extent to which VAT receipts had been updated.  Officers advised that by the end of that week, VAT receipts would have been updated up to the end of September 2023.

RESOLVED that

1)          the ongoing approach for the delivery of support services to Rubicon by the Council be noted;

2)          the £650,000 investment being made in Rubicon operated facilities by the Council over the next three years as per the 2024/5 Medium Term Financial Plan be noted; and

3)          the implementation of improvements to plants facilitated by the £177,000 grant from Sport England be noted.