Minutes:
(Mr. A. Hassard, Director of Parks and Leisure, attended in connection with this item.)
The Committee considered the undernoted report:
“1.0 Relevant background information
1.1 At its meeting in August, the SP&R Committee were updated on the contractual arrangements being put in place in relation to the Leisure Transformation Programme, in accordance with Committee’s direction and legal advice.
Members will be aware that following consideration of expenditure control the Shadow Council gave its consent to the award of a contract for the leisure trust at its meeting in July 2014.
2.0 Key issues
2.1 SP&R Committee at its meeting on 17 October 2014, considered a lengthy report on the mobilisation plans for the transfer of leisure services.
Committee noted the work ongoing to prepare a set of agreements which will give effect to the Council’s strategic direction. Expert legal and business advisors continue to support Council officers in ensuring that the agreements and funding mechanisms are in line with relevant legal frameworks; maximise VAT efficiency; and reflect industry good practice.
Committee also considered a number of important elements in relation to the implementation of its decisions in April 2014.
2.2 Finance and funding mechanism
The Director of Finance and Resources has now finalised the financial figures. The Council’s budget would have been £8,855,101 but the payment to the Operating Partner will be £6,851,325 which demonstrates cash savings to the Council of £2,003,776.
Therefore, for 2016/17, the contract value will be £6,851,325 which includes the 3 transferring centres and assures Committee that the contract will guarantee cash savings of £2,003,776 by April 2016. This is in line with the capital financing strategy agreed by Committee at its meeting in June 2013.
2.3 Recommendations
Committee agreed the following recommendations:
1. Approved the overall direction outlined including the proposed pricing principles, property maintenance framework, branding proposition, pensions arrangements and staff interest issues for integration into the contractual agreements;
2. Recommended that the agreements are advanced and awarded on the basis of the guaranteed £2million savings and the most economically advantageous arrangements for the Council, with full commitment to deliver against the social objectives agreed previously agreed by Committee;
3. In line with the strategic principles agreed by Committee in April 2014, authorised the Deputy Chief Executive and the Town Solicitor to give effect to the that direction and finalise the necessary documents, negotiating in the interests of the Council with Active Belfast Limited and GLL;
4. Approved the Council’s accountability and governance framework for the scrutiny of performance reports and annual plans from Active Belfast Limited
5. Noted the continuing engagement with the Belfast Trade Unions Group, including formal consultation on the transfer of staff as legally required
6. In consultation with the leisure Strategic Operating Partner, authorised officers to seek an ESCo contractor for the replacement of the Council’s Combined Heat and Power units and to agree that this project is advanced to the invitation of tenders, to be awarded on the basis of most economically advantageous tenders received and full commitment to deliver
7. Authorised the Directors of Parks and Leisure and Property and Projects to prepare and submit an Expression of Interest in partnership with the Templemore Users Trust to the Heritage Lottery Fund; and
8. Noted the conclusions of the EQIA and authorised its final publication.
In discussion, Members requested a further paper on the suggested composition of Active Belfast Limited’s Board of Directors, for consideration at a future meeting.
3.0 Resource Implications
Financial: A revenue grant is made available to Active Belfast Limited, up to £45,000 per annum to allow the Board of Directors to fulfil their obligations under charitable law e.g. preparation of annual audited accounts; and independent legal advice. This will be funded through in-service savings and re-alignment of existing revenue budgets.
For 2016/17, the contract value will be £6,851,325 which includes the 3 transferring centres and assures Committee that the contract will guarantee cash savings of £2,003,776 by April 2016.
Staff: This is a major service transformation process and the implications for staff will continue to be assessed as part of the transfer process, with continuous consultation and engagement with staff and trade union representatives.
Assets: Legal Services and Estates are developing a suite of leasing arrangements, to sit within the overarching contracts, to ensure the continued protection of the Council’s physical assets.
4.0 Equality Implications
The Leisure Transformation Programme was screened in for a full Equality Impact Assessment. The final report will be published on the Council’s website in accordance with its Equality Scheme.
5.0 Call-in
This report is subject to call-in.
6.0 Committee decisions required
Committee is asked to note the decisions taken at the meeting on 17 October 2014 which guarantees £2million from 1st April 2016 in line with the decision of Shadow Strategic Policy and Resources Committee in July 2014.”
The Committee adopted the recommendation.
Supporting documents: