Agenda item
SLM Financial Support - April 2021 - July 2021
Minutes:
Councillor Evemy introduced this report noting that this was the third report and was very much hoping that it was the last time that the Council would be discussing financial support for the leisure contractor SLM. The facilities were very important for residents and as soon as restrictions allowed, the leisure centres would open. The request was for funding from April to July 2021, November 2020 to March 2021 were agreed in aggregate, which reflected the position at the time. The forecast did not foresee the loss in visits to the centres in January which was normally a significant month for leisure provision.
The Museum had received £110,000 from the Culture Recovery Fund. The government road map currently allowed the Gyms and Swimming provision to open on 12 April 2021, with the Museum opening on 7 May 2021. He reiterated that it was the Council’s responsibility to support the leisure centres and museum, as they were in the Council’s ownership. There was government grants to support this funding and a financial summary was set out in the report.
Councillor Forde seconded the recommendations.
Councillor Andrews referred back to a previous Council meeting on 21 October 2021, that resolved to set up a cross party Member working group to draw up a detailed specification which would include Key Performance Indicators, against which any future management arrangements would be measured and to consider an appraisal of the options for such arrangements in Quarter 3 of 2021 when the nature of the leisure market post-Covid-19 was clearer. He commented that this group had not yet been set up and future arrangements should be measured, in order to have a better understanding of the leisure provision. He proposed an amendment to the current recommendations:
‘The cross-party working group that is to be established by June 2021 as part of the Cabinet approved Cotswold Leisure Strategy shall monitor the delivery of that agreement.’
Councillor Theodolou seconded the amendment, highlighting his concern that there should be a better understanding of the support the Council was giving to such a big company as SLM. He supported this amendment as it was incumbent on the Council to support the leisure centres.
The Monitoring Officer clarified that the amendment monitored the legal agreement in paragraph (e) of the recommendations.
The meeting adjourned at 8.10pm and reconvened at 8.30pm.
Following the adjournment Councillor Evemy commented that the Leisure Strategy was passed by the Cabinet and the working group would look at the future leisure provision for the district, not scrutinise the finances of the existing contractor, officers would do the due diligence on the contractor. The amendment would not be accepted, as it was not considered that the working group was the appropriate methodology for monitoring the agreement, there were provisions in the Overview and Scrutiny process to scrutinise issues such as this.
Following debate, Councillor Andrews wanted the amendment to stand and a vote was taken:
On being put to the vote, the record of voting was as follows: for 14, against 17, abstention 0, absent 2; 1 Member could not vote due to technical reasons. The vote on the amendment was LOST.
Councillor Forde in seconding the proposals commented that the leisure centres needed to open as soon as possible. She thanked officers for their work on monitoring the contract and highlighted that the Council was awarded funding for the Museum to be able to reopen, in August last year, it was important for the residents of the District to have the centres reopen. She was hoping that there would be no need to discuss this issue again.
Councillor Evemy summed up, commenting that this had been a costly exercise for the Council, it was hoped that some Government support would be available and he, too, hoped this would be the last time this issue would be discussed, although it was right thing to do to support the centres, in order for them to re-open.
RESOLVED that:
(a)
the financial support package for SLM
for April 2021 - July 2021, at a capped total cost of
£280,403, be approved;
(b)
the requirement for SLM to pay the
Council a monthly management fee of
£10,462 for the period 1 April 2021 to 31 July 2021 (total
lost income to the Council of £41,848) be waived;
(c)
the financial support package for SLM
for November 2020 - March 2021 be adjusted to be capped at a total
cost of £291,000 (rather than to be capped on a monthly
basis) be approved;
(d)
Council approves a profit share
mechanism to recover the support offered to SLM as set out at
recommendations a) and b). The Council
will be entitled to take a 75% share of profits in excess of the
tendered financial submission until the funding is
recovered;
(e) authority to finalise and sign an agreement with SLM confirming the terms upon which this financial package is based, be delegated to the Deputy Chief Executive in consultation with the Deputy Leader of the Council or in his absence with the Cabinet Member for Health and Wellbeing.
Record of Voting – for 32, against 0, abstentions , absent 2.
Supporting documents:
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