Agenda item

The Executive Board considered a report detailing alternative management options for leisure.

In 2013, as part of the Authority’s work in examining more efficient ways of delivering services, officers were asked to undertake a review of alternative management options for the leisure portfolio.  An initial options paper was subsequently presented to the Executive Board Members for consideration and further work was undertaken to examine options around:-

-         a new Not for Profit Distributing Organisation (NPDO) or Trust to operate some or all of the services; or

-         a partnering arrangement with an existing NPDO to delivery services.

Soft market testing was undertaken to establish interest from the market in terms of running the range of services within the leisure portfolio.  The main interest was around the Sports & Leisure and Theatre services.

In terms of the two options of setting up an in-house trust or a partnership with an existing trust, it was felt that there were both financial and operational advantages in opting for a partnership with an existing trust.

Taking into account the response from the soft market testing, the key services which were recommended to be transferred were Sport & Leisure and Theatres and consideration could be given to other services if this proved successful.

Members were informed that there was a terrific opportunity to align any new Leisure Centre in Llanelli with a potential “Wellness” development as part of the major “ARCH” City Region project.  The Executive Board agreed that, if possible, the new Leisure Centre could be part of this wider development and officers were asked to pursue the opportunity with vigour.

Councillor Deryk Cundy asked the following question:-

“This has already come to the Community Scrutiny and basically they supported the proposal apart from a concern about the finance and to make sure that the finance for Llanelli’s residential care facilities was still available and my understanding is that is still the case.  However, there was another part of the recommendation which came out of the Community Scrutiny which was to ask officers to look at a new NPDO for the other services that are mentioned in the report, things like libraries, museums, parks and this type of thing. I think it’s the point that we need to look at the whole thing and that is what came out of Community Scrutiny, that it was something that was important that we understood that side of it and how much that would cost and where we could go in the future. We have to be prepared for changes.  I believe that that is the right thing to do.  It was actually passed at the Community Scrutiny but it appears not to have come through in this report.  I was just wondering if that could be attached to this report.  The Executive Board thought that was a good idea.”

Councillor Meryl Gravell, Executive Board Member for Regeneration & Leisure, clarified that the idea was to go out and test the market on this, see what comes back and then have another look at libraries and museums etc. as they are two completely different things.

The Director of Community Services added that officers had discussed with the Community Scrutiny Committee the pros and cons of how services are grouped together as you look at alternative delivery modules.  Officers felt more confident going where there were potential income streams that could be driven in relation to Leisure and Theatres.  Some of the expertise of the Not for Profit companies who have a track record in driving that particularly suited those areas and they had a less established track record on a wider portfolio of services.  Officers will be looking very carefully at ways in which library services can be delivered and trying to be creative whilst protecting local services for local people.

UNANIMOUSLY RESOLVED

13.1    that Carmarthenshire County Council seeks to enter into a partnership with an existing or hybrid Not for Profit Distributing Organisation (NPDO or Trust) through a procurement process using competitive dialogue, which has the key parameters set out in the procurement strategy within the main report, and which will seek to deliver the relevant services’ 3 year PBB savings, in line with the affordability levels set out in the report.  The procurement process would not include a bid submission from a newly establish ‘internal’ NPDO;

13.2    that the initial scope of the partnership would be for the Sports and Leisure portfolio (including facilities from Llanelli, Carmarthen, Ammanford, Newcastle Emlyn, St. Clears and Llandovery), plus Theatres services (from Llanelli, Carmarthen and Ammanford), with further consideration of other services by Council at a later date after the contract has been operational for a period of time;

13.3    that, if there is no interest in some or all of the services, Carmarthenshire County Council should then seek to develop a business case to consider establishing a new NPDO for the services to deliver the financial savings;

13.4    that it be proposed that the tender specifies that the partner organisation has to apply for admitted body status to the Dyfed Pension Fund, closed to existing employees at the point of transfer;

13.5    that the tender includes a requirement to cost for the replacement of Llanelli Leisure Centre through a Design, Build, Operate and Maintain Model (DBOM);

13.6    that officers pursue the opportunity to align any new Leisure Centre in Llanelli with a potential “Wellness” development as part of the major “ARCH” City Region project.