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Agenda item

Leisure Contract Pressures

To consider report no: DoR91/22 of the Interim Director of Resources, which seeks to consider pressures identified by Greenwich Leisure Limited (GLL) and consider making an additional one off payment to support them given the significant additional energy costs they have borne due the current economic circumstances.

 

RECOMMENDATION:

 

It is recommended that the Council:

 

1.    Approves a one off payment of £325,000 to GLL, in recognition of the additional energy costs that they have borne in 2022/23.

 

2.    The additional payment to be funded by a combination of earmarked reserve (£200k) and general reserve (£125k).

Minutes:

Members considered Report No: DoR91/22 of the Interim Director of Resources which sought to consider pressures identified by Greenwich Leisure Limited (GLL) and consider making an additional one off payment to support them given the significant additional energy costs they have borne due the current economic circumstances.

 

19:31 Councillor Connell left the chamber

 

19:32 Councillor Connell entered the chamber.

 

Proposed by Councillor Greenwood

Seconded by Councillor Sharp

 

A Member asked if the Council is going to step up for other contractors, for example the waste collectors will also be impacted by the cost of fuel. They asked will there be equality for all Eden’s Contractors.

 

The Deputy Chief Executive responded that they had not been approached by other contractors, this would be dealt with as and when it happened.

 

A Member queried who is responsible for the lighting on the carpark of the leisure centre as this was on 24 hours a day and would cause significant expense. They also asked what were the terms of the contract and when did it run out.

 

The Interim Director of Resources responded that it is a purchasing contract, they buy in bulk, it is a variable contract which is not fixed, and this is how bigger organisations buy energy.

 

A Member queried the recent press reports by GLL’s parent company will be reducing hours at 200 locations. They asked if we give GLL this money what period will it cover and will our centres be immune to this reduction in hours.

 

The Interim Director of Resources responded that the period is to March, and yes Eden’s centres will be immune to a reduction in hours.

 

A Member asked for clarification on the financials listed in the report. They asked how this is a functioning contract as GLL as not making the business pay. What is going to change after we give them the one off payment of £325,000. This contract is a bit of a liability to offload to the Westmorland and Furness Council.

 

The Interim Director of Resources responded that the contract is functioning in that it is delivering the services within the contract. Westmorland and Furness will be made aware that there is a pressure there and this pressure is built in to the budget gap of the new authority.

 

A Member commented is there not a way to make the building more energy efficient.

 

The Green Growth Portfolio Holder commented that they are currently undertaking an energy efficient programme on the Leisure Centre Buildings to see where savings can be made through installation and energy efficiency.

 

A Member commented that he was the outside representative for GLL, in the 3-4 years he had sat as that representative there had never been a single meeting called.  He felt like this was a failed business model, and that we should put a consultant into GLL in order to improve the business model.

A Member commented that in July 2014 a renewable energy study and business case regarding the leisure buildings was brought to Council which spoke of panels and biomass boilers. They asked if Members have seen the business case for the feed-in tariff for the solar panels in comparison to current energy costs. The Member felt that they did not have all the information needed to approve this payment.

 

The Resources Portfolio Holder responded that the energy efficiency measures installed eight years ago will have helped this year. The Officers have an open book policy with the leisure centres and commented that health and wellbeing is important to this Council. She added that this report has been brought to Council on good faith, on the basis of good, reliable, and trustworthy information, she added that she does not look at the open books but Officers do. She commented that Members may be curious on further information but this is not available tonight, what we do have is a report based on solid understanding of what is needed to get our services through to the 31 March 2023.

 

A Member responded that she has experience of running a leisure business and understands the importance of them. She did object to writing blank cheques when they had not had all the information. They commented that this is not acceptable, and the Resources Portfolio Holder should get the information and bring it to Members.

 

A Member commented that he had received a complaint from a resident that GLL are only taking online bookings, he commented that this is hardly in the interests of those on low incomes. He queried if they could not add a condition ensuring that they would take in person bookings.

 

RESOLVED that Council:

 

1.     Approved a one off payment of £325,000 to GLL, in recognition of the additional energy costs that have been borne in 2022/23

2.     The additional payment to be funded by a combination of earmarked reserves (£200k) and general reserve (£125).

Supporting documents: