Agenda item

8.1

The Executive Director, Place submitted a report seeking a decision on the funding of the centre and on possible next steps.

8.2

RESOLVED: That Cabinet:-

(a)

withdraws the £400,000 annual subsidy from Stocksbridge Leisure Centre and serves notice to terminate the Charity Lease;

(b)

directs that officers continue to work closely with all interested parties in seeking an affordable and sustainable solution for a new build pool in Stocksbridge and continue to work with user groups at Stocksbridge Leisure Centre to identify possible alternative venues in the area in advance of potential closure or mothballing of the venue;

(c)

directs that officers urgently consider the outline business plan submitted by 4SLC in accordance with the authority delegated in accordance with recommendation (f) and to invite Stocksbridge Town Council and other interested parties to indicate by no later than 19 April 2013 whether they wished to become the sole trustee of the Oxley Park Charity effective from 1 May 2013 (or the earliest feasible date thereafter) and if so:-

(i) demonstrating a viable business case for the City Council to offer Stocksbridge Town Council or another interested party non-recurring revenue funding for Stocksbridge Leisure Centre in 2013/14 up to a maximum of £125,000 in order to fund EITHER the necessary security and safety arrangements required to mothball Stocksbridge Leisure Centre from 1 May 2013, through to a date no later than 31 August 2013, and to allow further time for Stocksbridge Town Council or another interested party to develop a viable business plan to operate the leisure centre from 1 September 2013 OR as a contribution to the costs of operating Stocksbridge Leisure Centre (in whole or part) from 1 May 2013 based upon the implementation of a viable business plan approved by the City Council prior to that date; and

(d)

resolves that Cabinet, on behalf of the City Council acting in its capacity as Trustee of the Oxley Park Charity resolve, in the event that Stocksbridge Town Council or another interested party communicates a desire to become a sole trustee of the Oxley Park Charity and complies with resolution (c) and (c) (i), to appoint Stocksbridge Town Council or another interested party as a trustee of the Charity and for the Council to resign as trustee of the Charity.

(e)

resolves that, in the event that Stocksbridge Town Council or any other interested party either states that it does not wish to become the sole trustee of the Oxley Park Charity or does not provide a viable business case in accordance with resolution (c) and (c) (i) :-

(i) to, in the event that Cabinet on behalf of the City Council acting in its capacity as Trustee of the Oxley Park Charity resolves to close Stocksbridge Leisure Centre and requests that the City Council demolish the buildings and restore the site, arrange and fund the demolition and the reinstatement of the site to parkland; and

(ii) to request Sheffield City Trust to conclude the necessary staff redundancy programme at the earliest opportunity with the City Council funding the redundancy payments for the relevant staff.

(f)

delegates to the Executive Director, Place in consultation with the Director of Legal Services, Director of Finance and the Director of Property and Facilities Management and the relevant Cabinet Member the authority to:-

(i) determine whether any proposal put forward by Stocksbridge Town Council or another interested party demonstrates a sufficient case to justify the City Council providing revenue funding to Stocksbridge Town Council or another interested party for the purpose specified in resolution (c) or (c) (i); and

(ii) enter into any necessary arrangements and documents to put into effect the outcomes in relation to the resolutions above.

8.3

Reasons for Decision

8.3.1

The Government has cut Sheffield City Council funding over the last 2 years as part of its deficit reduction programme. At the same time, the City Council has had to deal with rising costs and increased demand for its services.

8.3.2

The combined impact of these changes has been significant and the Council has already had to find £130m of savings to balance the books.

8.3.3

The Council has managed to find these savings without high profile and widespread service closures partly because it has cut back hard on administrative costs like ICT and training, reduced senior management costs, made savings on accommodation and invested in preventative work that reduces demand for more expensive services.

8.3.4

The Government announced before Christmas that public spending cuts would continue till 2018 and that Sheffield City Council funding would continue to be cut for 2 years (at least).

8.3.5

In 2013/14, Sheffield City Council needs to find £50 million of savings to balance the books, and the savings required to balance the budget in 2014/15 will probably be at least the same again.

8.3.6

The continued squeeze on budgets means that the City Council has to make some very difficult choices. The City Council priorities will focus on supporting those people who are most vulnerable; safeguarding children, adult social care and measures to support young people into employment. It is inevitable therefore that cuts to the City’s sports facilities have a part to play in the Council’s budget setting.

8.3.7

The City Council’s analysis of facilities concluded that Stocksbridge Leisure Centre is a large and expensive district facility with relatively low visit levels. To achieve a similar level of saving from alternative facility closures would impact on far greater numbers of people. For example, the closure of similar sized/cost venues such as Concord Sports Centre and Hillsborough Leisure Centre would impact on 400,000 visits and 650,000 visits (respectively), as opposed to the 142,000 visits at Stocksbridge Leisure Centre.

8.3.8

The Citywide facility assessment has been endorsed by the independent consultants’ report which did ‘not find anything which would challenge the City Council (facility) assessment’ and which recognised the City Council assessment was based on making decisions ‘which has (sic) the least adverse impact on the least number of residents’. The report said that the way forward is for a new low cost pool to be built in Stocksbridge given that ‘the closure would still leave demands for a local replacement’. Whilst the report concluded it ‘will be very difficult, if not impossible, to operate  the current Stocksbridge Leisure Centre on a community basis’ it suggested that ‘it seems prudent to first explore whether there are viable proposals and/or solutions emerging from the community’. It therefore said that it ‘may require a period of mothballing (of the existing centre) prior to a potential re-opening to allow a new management solution and business plan to be developed’. The consultants also concluded that ‘much of the dry side demand can be met from within alternative existing facilities.

8.3.9

It should be noted that during the consultation period to date, no alternative sources of revenue funding have been identified or forthcoming.

8.3.10

The recommendations set out in this report reflect the conclusions of the consultants’ report and note the views of 4SLC which said (in a report to SCC and the consultants dated 26 February 2013) that ‘we recognise that there is a budget deficit on Stocksbridge Leisure Centre that is unsustainable’ and that ‘the ideal longer term solution may be to (sic) a new build and more financially sustainable facility in Stocksbridge’. The February report by 4SLC also called for Stocksbridge Leisure Centre to be operated on a ‘reduced cost basis for a short-term period’ to allow time to ‘generate a full business plan’.

8.3.11

The 4SLC report dated 25 March called for the continued operation of the entire centre whilst ‘an alternative business structure’ is developed. It also indicated that in 2015 work should start on planning for a ‘replacement sports and leisure centre in Stocksbridge.’

8.4

Alternatives Considered and Rejected

8.4.1

The Council has assessed all facilities in terms of potential savings and the impact of any closures across the City. The conclusions of the Citywide analysis match those of the consultants i.e. that alternative facility closures (to Stocksbridge Leisure Centre), to achieve a similar level of saving would impact on a far greater number of people and therefore have greater impact on sports participation and health.

8.4.2

In addition, the independent consultants’ report examined all options for alternative provision of facilities within the town. It concluded that a new build, (small) lower cost pool would be the best way forward. It also recognised that mothballing or temporary operation of the existing centre for a limited period to allow further time for development of a business may be an option.

8.4.3

4SLC has also reviewed options. It concluded in its report (February 2016) that the budget deficit for the City Council is ‘unsustainable’ and that the ‘ideal longer term solution may to be (sic) a new build and more financially sustainable facility in Stocksbridge’. 4SLC also called for Stocksbridge Leisure Centre to be operated on a ‘reduced cost basis for a short-term period’ to allow time to ‘generate a full business plan’. The 4SLC report (dated March 25) offered an ‘outline business case’ which concluded that Stocksbridge Leisure Centre should remain open and could be operated at a considerably reduced cost. It proposes that Sheffield International Venues remains as the operator, with community management taking over within 2 years.

8.4.4

The report acknowledged that it was a ‘first step in producing a viable business plan’ and ‘did not set out to be a fully detailed and extensively researched document’. Sheffield City Council has agreed to meet 4SLC at the earliest opportunity to discuss the plan as part of the on-going consultation process.

8.4.5

It should be noted that the consultation period has so far not identified any alternative revenue funding to support Stocksbridge Leisure Centre. The City Council suggested to the Town Council at the 11 March meeting that they may have to be part of any future solution to Stocksbridge Leisure Centre. To date there has been no offer of potential financial support to the Council.

8.5

Any Interest Declared or Dispensation Granted

None

8.6

Reason for Exemption if Public/Press Excluded During Consideration

None

8.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

8.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing

8.1

The Executive Director, Place submitted a report seeking a decision on the funding of the centre and on possible next steps.

8.2

RESOLVED: That Cabinet:-

(a)

withdraws the £400,000 annual subsidy from Stocksbridge Leisure Centre and serves notice to terminate the Charity Lease;

(b)

directs that officers continue to work closely with all interested parties in seeking an affordable and sustainable solution for a new build pool in Stocksbridge and continue to work with user groups at Stocksbridge Leisure Centre to identify possible alternative venues in the area in advance of potential closure or mothballing of the venue;

(c)

directs that officers urgently consider the outline business plan submitted by 4SLC in accordance with the authority delegated in accordance with recommendation (f) and to invite Stocksbridge Town Council and other interested parties to indicate by no later than 19 April 2013 whether they wished to become the sole trustee of the Oxley Park Charity effective from 1 May 2013 (or the earliest feasible date thereafter) and if so:-

(i) demonstrating a viable business case for the City Council to offer Stocksbridge Town Council or another interested party non-recurring revenue funding for Stocksbridge Leisure Centre in 2013/14 up to a maximum of £125,000 in order to fund EITHER the necessary security and safety arrangements required to mothball Stocksbridge Leisure Centre from 1 May 2013, through to a date no later than 31 August 2013, and to allow further time for Stocksbridge Town Council or another interested party to develop a viable business plan to operate the leisure centre from 1 September 2013 OR as a contribution to the costs of operating Stocksbridge Leisure Centre (in whole or part) from 1 May 2013 based upon the implementation of a viable business plan approved by the City Council prior to that date; and

(d)

resolves that Cabinet, on behalf of the City Council acting in its capacity as Trustee of the Oxley Park Charity resolve, in the event that Stocksbridge Town Council or another interested party communicates a desire to become a sole trustee of the Oxley Park Charity and complies with resolution (c) and (c) (i), to appoint Stocksbridge Town Council or another interested party as a trustee of the Charity and for the Council to resign as trustee of the Charity.

(e)

resolves that, in the event that Stocksbridge Town Council or any other interested party either states that it does not wish to become the sole trustee of the Oxley Park Charity or does not provide a viable business case in accordance with resolution (c) and (c) (i) :-

(i) to, in the event that Cabinet on behalf of the City Council acting in its capacity as Trustee of the Oxley Park Charity resolves to close Stocksbridge Leisure Centre and requests that the City Council demolish the buildings and restore the site, arrange and fund the demolition and the reinstatement of the site to parkland; and

(ii) to request Sheffield City Trust to conclude the necessary staff redundancy programme at the earliest opportunity with the City Council funding the redundancy payments for the relevant staff.

(f)

delegates to the Executive Director, Place in consultation with the Director of Legal Services, Director of Finance and the Director of Property and Facilities Management and the relevant Cabinet Member the authority to:-

(i) determine whether any proposal put forward by Stocksbridge Town Council or another interested party demonstrates a sufficient case to justify the City Council providing revenue funding to Stocksbridge Town Council or another interested party for the purpose specified in resolution (c) or (c) (i); and

(ii) enter into any necessary arrangements and documents to put into effect the outcomes in relation to the resolutions above.

8.3

Reasons for Decision

8.3.1

The Government has cut Sheffield City Council funding over the last 2 years as part of its deficit reduction programme. At the same time, the City Council has had to deal with rising costs and increased demand for its services.

8.3.2

The combined impact of these changes has been significant and the Council has already had to find £130m of savings to balance the books.

8.3.3

The Council has managed to find these savings without high profile and widespread service closures partly because it has cut back hard on administrative costs like ICT and training, reduced senior management costs, made savings on accommodation and invested in preventative work that reduces demand for more expensive services.

8.3.4

The Government announced before Christmas that public spending cuts would continue till 2018 and that Sheffield City Council funding would continue to be cut for 2 years (at least).

8.3.5

In 2013/14, Sheffield City Council needs to find £50 million of savings to balance the books, and the savings required to balance the budget in 2014/15 will probably be at least the same again.

8.3.6

The continued squeeze on budgets means that the City Council has to make some very difficult choices. The City Council priorities will focus on supporting those people who are most vulnerable; safeguarding children, adult social care and measures to support young people into employment. It is inevitable therefore that cuts to the City’s sports facilities have a part to play in the Council’s budget setting.

8.3.7

The City Council’s analysis of facilities concluded that Stocksbridge Leisure Centre is a large and expensive district facility with relatively low visit levels. To achieve a similar level of saving from alternative facility closures would impact on far greater numbers of people. For example, the closure of similar sized/cost venues such as Concord Sports Centre and Hillsborough Leisure Centre would impact on 400,000 visits and 650,000 visits (respectively), as opposed to the 142,000 visits at Stocksbridge Leisure Centre.

8.3.8

The Citywide facility assessment has been endorsed by the independent consultants’ report which did ‘not find anything which would challenge the City Council (facility) assessment’ and which recognised the City Council assessment was based on making decisions ‘which has (sic) the least adverse impact on the least number of residents’. The report said that the way forward is for a new low cost pool to be built in Stocksbridge given that ‘the closure would still leave demands for a local replacement’. Whilst the report concluded it ‘will be very difficult, if not impossible, to operate  the current Stocksbridge Leisure Centre on a community basis’ it suggested that ‘it seems prudent to first explore whether there are viable proposals and/or solutions emerging from the community’. It therefore said that it ‘may require a period of mothballing (of the existing centre) prior to a potential re-opening to allow a new management solution and business plan to be developed’. The consultants also concluded that ‘much of the dry side demand can be met from within alternative existing facilities.

8.3.9

It should be noted that during the consultation period to date, no alternative sources of revenue funding have been identified or forthcoming.

8.3.10

The recommendations set out in this report reflect the conclusions of the consultants’ report and note the views of 4SLC which said (in a report to SCC and the consultants dated 26 February 2013) that ‘we recognise that there is a budget deficit on Stocksbridge Leisure Centre that is unsustainable’ and that ‘the ideal longer term solution may be to (sic) a new build and more financially sustainable facility in Stocksbridge’. The February report by 4SLC also called for Stocksbridge Leisure Centre to be operated on a ‘reduced cost basis for a short-term period’ to allow time to ‘generate a full business plan’.

8.3.11

The 4SLC report dated 25 March called for the continued operation of the entire centre whilst ‘an alternative business structure’ is developed. It also indicated that in 2015 work should start on planning for a ‘replacement sports and leisure centre in Stocksbridge.’

8.4

Alternatives Considered and Rejected

8.4.1

The Council has assessed all facilities in terms of potential savings and the impact of any closures across the City. The conclusions of the Citywide analysis match those of the consultants i.e. that alternative facility closures (to Stocksbridge Leisure Centre), to achieve a similar level of saving would impact on a far greater number of people and therefore have greater impact on sports participation and health.

8.4.2

In addition, the independent consultants’ report examined all options for alternative provision of facilities within the town. It concluded that a new build, (small) lower cost pool would be the best way forward. It also recognised that mothballing or temporary operation of the existing centre for a limited period to allow further time for development of a business may be an option.

8.4.3

4SLC has also reviewed options. It concluded in its report (February 2016) that the budget deficit for the City Council is ‘unsustainable’ and that the ‘ideal longer term solution may to be (sic) a new build and more financially sustainable facility in Stocksbridge’. 4SLC also called for Stocksbridge Leisure Centre to be operated on a ‘reduced cost basis for a short-term period’ to allow time to ‘generate a full business plan’. The 4SLC report (dated March 25) offered an ‘outline business case’ which concluded that Stocksbridge Leisure Centre should remain open and could be operated at a considerably reduced cost. It proposes that Sheffield International Venues remains as the operator, with community management taking over within 2 years.

8.4.4

The report acknowledged that it was a ‘first step in producing a viable business plan’ and ‘did not set out to be a fully detailed and extensively researched document’. Sheffield City Council has agreed to meet 4SLC at the earliest opportunity to discuss the plan as part of the on-going consultation process.

8.4.5

It should be noted that the consultation period has so far not identified any alternative revenue funding to support Stocksbridge Leisure Centre. The City Council suggested to the Town Council at the 11 March meeting that they may have to be part of any future solution to Stocksbridge Leisure Centre. To date there has been no offer of potential financial support to the Council.

8.5

Any Interest Declared or Dispensation Granted

None

8.6

Reason for Exemption if Public/Press Excluded During Consideration

None

8.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

8.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing