Agenda item

Report by Contract Delivery Manager (attached)

The Committee considered a report by the Contracts Delivery Manager (circulated previously) regarding Leisure Centre payments.

The Contracts Delivery Manager highlighted the following:

·       Parkwood Leisure have issued claims to the Council for further payments for the months of June and July and have indicated that further financial assistance was likely to be required for August, September and beyond in order to keep North Devon’s leisure facilities viable and open to the public as the Covid 19 crisis continued.

·       Parkwood’s recent claims showed a loss of just under £38,000 in June and £54,000 in July, totalling £92,000.  However, the Head of Resources had scrutinised the claim and was agreeable to a payment of £80,000 to Parkwood for June and July losses incurred.

·       The position of Parkwood nationally as outlined in paragraph 4.5 of the report.

·       At the time of writing the report, since the pools reopened at the start of September 2,000, public swimming lane sessions have been booked and attended and 681 children have returned to their weekly out of school swimming lessons.  If the pools close again, then 400 local, schoolchildren will miss their weekly swimming sessions.  If the pools were to close there would be an immediate impact on nine swimming clubs as detailed in paragraph 4.9 of the report. 

·       Parkwood had not received a public subsidy for the past two years.

·       The Council would have no maintenance and subsidy costs as part of the new leisure centre contract.

·       There was real threat that if Parkwood was no longer able to continue, then there was uncertainty regarding whether the current leisure provision, Tarka Tennis centre and all weather pitch would be re-opened.

·       The Government was due to make an announcement regarding financial assistance for leisure providers.

·       It was anticipated that Parkwood would request further financial assistance up until October 2020 due to the furlough scheme coming to an end and the re-opening of the swimming pool and may be further requests depending on future lockdown restrictions.

The Chief Executive highlighted the following:

·       The Council had a good working relationship with Parkwood and therefore was in a good position compared to other local authorities whereby other leisure providers were in a dire financial situation.

·       The Council was campaigning for funding through the South West Region and nationally.

·       Many other Local Authorities had not re-opened their leisure facilities such as Torridge District Council and Cornwall Council.

·       If Parkwood walked away from the contract, it would be very unlikely that another leisure provider would be found and it may also have an impact on the new Leisure Centre.

The Head of Resources advised that:

·       Monthly accounts submitted by Parkwood were thoroughly scrutinised.

·       The new Leisure Centre contract would provide the Council with a revenue stream for a 20 year period.

·       If Parkwood walked away from the contract, the Council would become responsible for the building, overhead and rates bill.