Agenda item

Report of the Interim Chief Executive/Assistant Director of Projects and Development attached.

Council considered a joint report of the Interim Chief Executive and the Assistant Director of Projects and Development that updated Members on the development of a new Leisure Campus in South Ribble.

The report provided the history of the Leisure Campus project to date, the context of understanding the current state of the Leisure Stock within the borough, the options available for potential next steps and a brief summary of the current operations management of South Ribble’s Leisure Centres.

It was reported that a conditions survey had long since highlighted the need for significant investment in our leisure centres and the current contract with South Ribble, Community Leisure Ltd and SERCO Leisure Operating Ltd ends on 31 March 2021.

The Leader of the Council, Councillor Paul Foster explained the background to the report. During 2018, a joint working group of Members had pulled together a brief for a Campus style Leisure Centre on the West Paddock site that would replace the existing Leyland Leisure Centre. The brief culminated in a Cabinet report being considered in June 2018 which agreed to the appointment of a client Project Director to act on behalf of the Council to manage the project. A further report to Cabinet later in that year also saw an agreement to appoint consultants Faith and Gould, procured by the PAGABO framework on a fixed contract fee of £1.8m to support the Council through the design, procurement and building of the proposed new Campus style Leisure Centre. It was also agreed that any expenditure in £100k tranches would be reported back to Members, however, this would appear to have never been done, causing concern about the approach that was adopted in relation to the current spend to date.

The belief at that time, based on schemes elsewhere, was that the cost of the project would be in the region of 15m and this was allowed for in the Capital programme of the Council. Towards the end of 2018 there was recognition by the Project Manager, that the project would considerably exceed the £15m budgeted for, however this information was not communicated formally to all Members. A report had reportedly been written but this was never submitted to Cabinet. 

Members of the Shadow Cabinet admitted that there was a backlog of maintenance costs but this was one of the main reasons why the development of a new centre was being explored in the first place. There was a real need to build something that was fit for residents of the borough in the future. They also disputed that they had had sight of the updated costings at the beginning of the year. Councillor Margaret Smith commented that the 16m figure which was identified as the cost for development of the Leisure Pool was always mentioned in reports, but none of the other associated costs were ever mentioned. The Conservative Group were happy to support the recommendations in the report but did not necessarily consider the current site as the best option.

In February/March of this year the project brief was properly costed that  resulted in a significantly raised figure of £27m to deliver the agreed brief, which after the undertaking of a cost engineering process was reduced to £23.7m, subject to a detailed design and procurement process.

A second option has also been put forward with additional income generation facilities, with a cost back up to around £26.5m. Both costings, take account of buildings inflation and all fees and preliminaries. The briefing and costings were appended to the report and all Members were invited to a detailed briefing session ahead of this meeting.

In response to Members concerns, the Deputy Leader and Cabinet Member for Health, Wellbeing and Leisure stated that further considerations could be given to the location of the development.

Councillor Caroline Moon sought clarity on the £600k for associated costs listed within the report as a potential loss for the Council. The Interim Chief Executive explained that this was money that had been spent on fees in relation to the scheme that if not brought to fruition would be written off, some of the money however, could be used if the decision was taken to relocate the development.

The Deputy Leader stated that in future all Members of Council will be informed of all the facts before any decision is taken. There are a number of factors to be taken into consideration and he welcomed involvement from Members through the establishment of a cross party working group to consider all the options before being brought back to full Council for a decision.

It was moved by Councillor Mick Titherington, seconded by Councillor Paul Foster, and

RESOLVED (Unanimously):

1.    That Council grants authority to officers to prepare a Master Plan for the future of Leisure Services and Leisure facilities in South Ribble to be considered by a newly set up cross party working group before bringing back to full Council for decision;

2.    That Council grants authority to officers to explore the financial solution to take forward a Leisure Campus project;

3.    That Council grants authority to officers to draw up a costed investment plan for the Council’s remaining Leisure Centres that is affordable and reduces the on-going revenue subsidy at those sites over the next five years;

4.    That Council grants authority to officers to consider future management options for the Council’s Leisure Centres. To bring back recommendations as to the way forward which included the possibility of continuing work with our current operator in the short and long-term against alternative options available including a potential in-house operation and a Trust operation with a view to reducing the on-going Leisure subsidy; and

5.    That Council grants authority for a budget of £50,000 in order to seek necessary, legal, financial, HR and Leisure advice and support, to develop viable future Leisure Centre management options.

6.      That Internal Audit investigate the approach adopted in relation to the current spend on the Leisure Centre proposals.