Agenda item

To consider a recommendation from the Joint meeting of the Finance & Economic and Culture & Leisure Overview and Scrutiny Committees with regard to a request for one-off funding which has been received from Deepings Community Leisure Centre CIC in the sum of £850,000.

 

The report and appendices included within this agenda are those submitted for consideration at the Joint Overview and Scrutiny Committee meeting, scheduled to be held on 9 January 2024, which is after this agenda was published. Any recommendations or additional information arising from that meeting will be reported to this meeting of Full Council.

 

Council considered a report requesting a financial contribution for the Deepings Leisure Centre, taking into account recommendations from the Joint Finance and Economic & Culture and Leisure Overview and Scrutiny committees that met on 9 January 2024.

 

Council consented to extending the time for speeches from Councillors to 7 minutes.

 

Officers confirmed that advice had been received from the Building Control Manager that the whole of the building would need to be brought up to current Building Regulations if a heat source was to be introduced. The proposals before Members changed the heat source and did not introduce a new one, therefore paragraph 1.38 of the report was to be disregarded.

 

In moving the motion and additional recommendations, the Deputy Leader of the Council gave a presentation to Full Council on the proposal for a financial contribution, and highlighted the following points:

 

·         Deepings Leisure Centre was built in 1974. A promise for a new Leisure Centre was received in 2018, but the site was closed in July 2021 due to a lack of maintenance. A £10 million refurbishment was promised in December 2021, but this did not proceed, and the leisure was decommissioned in 2023 and handed back to Lincolnshire County Council (LCC).

·         The Deepings Leisure Centre Community Group was established in 2023, and there was political change at the Council.

·         Questions put by the Joint Meeting of the Finance & Economic and Culture & Leisure Overview and Scrutiny Committees on 9 January 2024 included whether the proposal was desirable, legal, affordable, achievable, and value for money, as well as a request of knowing what the risks might be.

·         The Deepings Swimming Club were currently training in other venues in the local area as they could not use the pool at Deepings Leisure Centre (DLC).

·         The model for DLC was that it would be owned by the Deepings CIC, but there would be a service level agreement (SLA) with a third-party provider. It was expected that the CIC would be able to engage with a third-party provider upon receipt of monies from the Council. The third party would be able to carry out marketing, membership signups and preparatory work to ensure DLC was ready for all its users.

·         A formal agreement with the Deepings School would be required.

 

In formally seconding the motion and additional recommendations, the Cabinet Member for Leisure and Culture highlighted the following points:

 

·         A number of suggestions were made during the Joint Meeting of the Finance & Economic and Culture & Leisure Overview and Scrutiny Committees on 9 January 2024.

·         Some of the quotes included as part of the information within the report were obtained from individuals that had previously worked at DLC, but also at other Leisure Centres within Lincolnshire.

·         The proposal included working with community groups to provide a blended management model utilising trained and committed volunteers, with the potential for the Deepings School to be more involved than they had been previously.

 

During debate on the proposals, the following points were highlighted by Members:

 

·         The time spent on the report by various groups and officers was praised.

·         Whilst the CIC had received advice that their projections within their business case were understated, alternative advice had been received from UK leading sport and consultancy firms to say that the business case was unrealistic.

·         A report had previously been carried out by Mace to explore viability and options appraisals. It concluded that a District the size of South Kesteven would normally have two leisure centres, one in the north of the District and one in the South.

·         Re-opening DLC would have an impact on the viability of Bourne Leisure Centre.

·         Lincolnshire taxpayers needed a firm decision on the project as it costed approximately £70,000 a year to have the building standing empty.

·         DLC was a sanctuary for physical and mental health. By supporting this project Members were investing in the long-term health of their communities in the area. It would be a place where young and old alike could find a positive and constructive outlet for their energy.

·         There had been a huge growth in housing in the Deepings area since DLC was built in 1974. DLC had been taken away from residents without any adequate plan for leisure provision. Since the plan for a £10 million refurbishment had been reversed, it could be argued that the reputation of the Council had not been enhanced as a result. However, it was noted that spending public money always carried a risk. What was being requested was less than 10% of the cost of the initially promised £10 million refurbishment.

·         The Deepings had seen previous promises not fulfilled; this was a community project supported by the community in the Deepings.

·         It was not enough to say that residents in the Deepings area could just travel to the next nearest facility. Re-opening DLC would complement and enhance the leisure offer within South Kesteven. In particular, the burden on the Deepings Swimming Club was undeniable, as they had no home venue.

·         Faced with a significant demolition bill, it was crucial that Members understood a financial outlay was inevitable.

·         There would be future housing developments and growth in the population in the area, and these future residents should be encouraged to use local amenities such as leisure centres.

·         There was the argument that there was the moral responsibility to provide the monies to DLC, as it had previously been let down through a lack of maintenance, alongside a failure through the Council’s ‘block voting’ system to keep the business running whilst a long-term solution could be found.

·         Rather than approving a subsidy or grant of £850,000 it may have been prudent to request that the Council receives due diligence on the future use of the money, in order that it is kept up to date with progress. One further idea would be an independent external consultant to monitor progress of the project, and report back to the appropriate forum. However, consultants had been employed in the past, and it was important not to delay the project any further if possible.

·         A risk register for the Deepings CIC would have been welcomed as there was a degree of risk attached to the project.

·         Previously LCC ceased the payment of £144,000 per year to maintain DLC, so therefore SKDC had to operate independently.

 

Note:  Councillor Murray Turner arrived during this section of the debate.

 

·         More time was needed in order to take a decision on this proposal as more information on the financial impacts on the District was needed; however, it was noted that the deadline for a final response to LCC was 2 February 2024.

·         The weight of balance must be on the reality of unacceptable legal and financial risks to SKDC. The moral argument did not provide a loophole for the spending of public money. The use of reserves was concerning.

 

The meeting agreed to adjourn at 4:18pm and reconvened at 4:25pm.

 

Note:  Councillor Sue Woolley left the Council Chamber and did not return.

 

An amendment to the original motion was proposed and seconded, and following a vote, Council agreed to accept this amendment, and it then became the substantive motion before Members.

 

In summing up, the Deputy Leader thanked all involved with the report for their contributions, and added that on some occasions, Members needed to not just consider decisions based on the costs, but to also subjectively consider the merits of proposals. He urged all members present to vote for the proposals.

 

A request was made that a recorded vote on the motion be taken, as in accordance with Council Procedure Rule 15.5 any ten or more Councillors present at the meeting of Full Council could request this.

 

For:                 Councillors Emma Baker, Rhys Baker, Ashley Baxter, Harrish Bisnauthsing, Pam Byrd, Richard Cleaver, Steven Cunnington, James Denniston, Phil Dilks, Patsy Ellis, Paul Fellows, Phil Gadd, Tim Harrison, Anna Kelly, Philip Knowles, Bridget Ley, Charmaine Morgan, Chris Noon, Habib Rahman, Rhea Rayside, Ian Selby, Vanessa Smith, Lee Steptoe, Paul Stokes, Elvis Stooke, Murray Turner. (26)

 

Against:         Councillors Matt Bailey, David Bellamy, Helen Crawford, Richard Dixon-Warren, Graham Jeal, Robert Leadenham, Paul Martin, Penny Milnes, Susan Sandall, Max Sawyer, Peter Stephens, Rosemary Trollope-Bellew, Sarah Trotter, Mark Whittington, Jane Wood, Paul Wood. (16)

 

Abstain:         Councillors Barry Dobson, Gloria Johnson, Gareth Knight (3).

 

Therefore, the motion was AGREED.

 

DECISION:

 

That Full Council notes the comments and outcome of the Joint Meeting of the Finance & Economic and Culture & Leisure Overview and Scrutiny Committee Meeting of 9^th January 2024 and resolves to:

 

Delegate authority to the Cabinet to approve a one-off payment of £850,000 to the Deepings Community Leisure Centre CIC subject to all the following conditions:

 

a.        Any funds would only be released after the statutory period for a potential challenge in accordance with the Subsidy Control Act 2022 has expired.

b.        Confirmation that the other major funding contributions set out in the Business Plan have been committed and approved by those contributors.

c.         A satisfactory undertaking of due diligence of the Deepings Community Leisure Centre CIC including a review of their Financial Regulations.

d.        Evidence that proposed refurbishment works will comply with Building Regulations.

e.        Completion of transfer of lease or freehold ownership of the site from LCC to the Deepings Community Leisure Centre CIC.

f)         CIC have entered into an acceptable and formal partnership with a suitable third-party leisure provider.

g)        Formal agreement with the Anthem Trust regarding terms of use and tariffs for the use of the centre by the Deepings School.

h)        Robust, final, and affordable quotes for the refurbishment of the centre.