Agenda item

12.1

The Executive Director, Place submitted a report seeking Cabinet approval for the City Council to invest £3.5m capital into a £24m City programme for renewing and improving the City’s sports facilities.

12.2

RESOLVED: That Cabinet:-

(a)

notes and approves the facilities investment strategy set out in the report and, in particular, agree the development of North Active and Graves Tennis and Leisure Centre;

(b)

notes that, as part of the City Council’s capital approval process, capital investment proposals to invest £1m at Graves and construct the £7.1m scheme at Thorncliffe have been submitted to Cabinet as part of the month 8 finance report. The report also sets out the conditions of the external finance grants and seeks approval to enter into contracts to accept the funding;

(c)

notes that future running expenditure will be approved via the 2015/16 budget setting process;

(d)

delegates authority to the Executive Director, Place, in consultation with the Director of Commercial Services approval of the Procurement Strategy for the works required for North Active;

(e)

delegates authority to the Executive Director, Place, in consultation with the Director of Legal and Governance, Director of Finance and Director of Capital and Major Projects to award and finalise the terms of a contract for the works at North Active;

(f)

delegates authority to the Executive Director, Place, in consultation with the Director of Commercial Services approval of the Procurement Strategy for the future operation of North Active;

(g)

delegates authority to the Executive Director, Place, in consultation with the Director of Legal and Governance, to award and finalise the terms of a contract for the operation at North Active;

(h)

delegates authority to the Executive Director, Place, in consultation with the Director of Legal and Governance and the Director of Finance, to enter into agreements for external funding into the Council for the purpose of meeting the costs at North Active and to approve the terms of such funding agreements;

(i)

delegates authority to the Executive Director, Place, in consultation with the Director of Legal and Governance and the Director of Finance, to enter into agreements with Sheffield City Trust (or any group company) to provide funding (by grant, loan or otherwise) for Graves TLC and to approve the terms of that funding; and

(j)

delegates authority to the Executive Director, Place, in consultation with the Director of Legal and Governance and the Director of Finance, to take such other steps as he may deem appropriate to achieve the outcomes in the report in relation to North Active and Graves TLC projects.

12.3

Reasons for Decision

12.3.1

The recommendations are based on a facilities investment strategy which will achieve the triple aim of improving facilities, improving health and reducing running costs. The strategy has therefore attracted the support of a number of national and City partners and will trigger a £24m investment programme.

12.3.2

The City Council faces its biggest ever challenge in terms of dramatically reducing budgets – including those for sports facilities. By contrast, there are significant new opportunities for external capital investment in facilities. The proposed strategy is therefore ‘invest to save and grow participation’ i.e replace facilities that are high cost, under-utilised or nearing the end of their life and invest in lower cost and higher qualities facilities which will increase participation and therefore improve health. Particular focus will be placed upon attracting low participant groups to the new facilities and, particularly those suffering from poor health.

12.4

Alternatives Considered and Rejected

12.4.1

The facilities investment strategy considered a number of alternative options. The first strategic choice was made in 2013 in relation to the future of Don Valley Stadium. The rationale for its closure was based not only on the £700k saving on annual operating costs and the avoidance of alternatively having to close several community pools to achieve the same level of saving, but also the capital cost of stadium repairs – estimated at £1.6m and rising to £4m in future years.

12.4.2

Given the City Council’s limited availability of capital funds, the choice therefore was to spend up to £4m to repair one facility (Don Valley Stadium) – with limited consequent savings on running costs, no expected resulting increase in participation and no prospects of any contributions from external funders – or invest £3.65m to trigger a £24m investment programme in four redeveloped/new facilities (Woodbourn, Concord, Graves and North Active) – with major savings on running costs, significant increases in participation and unprecedented leverage of external capital. The simple choice was therefore between ‘invest to stand still’ at DVS or ‘invest to save and grow participation’ in four facilities.

12.4.3

It is perhaps not surprising that the compelling case for the £24m investment programme has won the strategic support of both Sport England and NCSEM.

12.4.4

In terms of North Active – the alternative of refurbishing Chapeltown Pool has been considered. However, it is already over 50 years old and is nearing the end of its economic life; refurbishment or even a like-for-like pool replacement will not attract external capital; the current pool is too small to serve as the single district pool for the north and the site is too small to build the required district pool and associated fitness/health facilities. The choice is either a new pool now or face the risk of no pool in the near future.

12.4.5

Similarly, the option of refurbishing Stocksbridge pool or building a new pool in Stocksbridge has been considered. However, an independent consultants study in 2013 (commissioned by Sport England and the City Council) concluded that refurbishment would provide only a ‘relatively short to medium term solution’ and would be ‘unlikely to offer value for money’. Furthermore, refurbishment would not attract external capital and would still result in a pool with significant operating costs. Unfortunately, the limited catchment population served by a potential new facility in Stocksbridge is such that Sport England and NCESM have confirmed they would be unable to contribute any capital funds.

12.5

Any Interest Declared or Dispensation Granted

None

12.6

Reason for Exemption if Public/Press Excluded During Consideration

None

12.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

12.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing

12.1

The Executive Director, Place submitted a report seeking Cabinet approval for the City Council to invest £3.5m capital into a £24m City programme for renewing and improving the City’s sports facilities.

12.2

David Morton, Clerk to the Ecclesfield Parish Council, attended the meeting in support of the proposals and commented that he welcomed them and requested that Cabinet approve the recommendations.

12.3

RESOLVED: That Cabinet:-

(a)

notes and approves the facilities investment strategy set out in the report and, in particular, agree the development of North Active and Graves Tennis and Leisure Centre;

(b)

notes that, as part of the City Council’s capital approval process, capital investment proposals to invest £1m at Graves and construct the £7.1m scheme at Thorncliffe have been submitted to Cabinet as part of the month 8 finance report. The report also sets out the conditions of the external finance grants and seeks approval to enter into contracts to accept the funding;

(c)

notes that future running expenditure will be approved via the 2015/16 budget setting process;

(d)

delegates authority to the Executive Director, Place, in consultation with the Director of Commercial Services approval of the Procurement Strategy for the works required for North Active;

(e)

delegates authority to the Executive Director, Place, in consultation with the Director of Legal and Governance, Director of Finance and Director of Capital and Major Projects to award and finalise the terms of a contract for the works at North Active;

(f)

delegates authority to the Executive Director, Place, in consultation with the Director of Commercial Services approval of the Procurement Strategy for the future operation of North Active;

(g)

delegates authority to the Executive Director, Place, in consultation with the Director of Legal and Governance, to award and finalise the terms of a contract for the operation at North Active;

(h)

delegates authority to the Executive Director, Place, in consultation with the Director of Legal and Governance and the Director of Finance, to enter into agreements for external funding into the Council for the purpose of meeting the costs at North Active and to approve the terms of such funding agreements;

(i)

delegates authority to the Executive Director, Place, in consultation with the Director of Legal and Governance and the Director of Finance, to enter into agreements with Sheffield City Trust (or any group company) to provide funding (by grant, loan or otherwise) for Graves TLC and to approve the terms of that funding; and

(j)

delegates authority to the Executive Director, Place, in consultation with the Director of Legal and Governance and the Director of Finance, to take such other steps as he may deem appropriate to achieve the outcomes in the report in relation to North Active and Graves TLC projects.

12.4

Reasons for Decision

12.4.1

The recommendations are based on a facilities investment strategy which will achieve the triple aim of improving facilities, improving health and reducing running costs. The strategy has therefore attracted the support of a number of national and City partners and will trigger a £24m investment programme.

12.4.2

The City Council faces its biggest ever challenge in terms of dramatically reducing budgets – including those for sports facilities. By contrast, there are significant new opportunities for external capital investment in facilities. The proposed strategy is therefore ‘invest to save and grow participation’ i.e replace facilities that are high cost, under-utilised or nearing the end of their life and invest in lower cost and higher qualities facilities which will increase participation and therefore improve health. Particular focus will be placed upon attracting low participant groups to the new facilities and, particularly those suffering from poor health.

12.5

Alternatives Considered and Rejected

12.5.1

The facilities investment strategy considered a number of alternative options. The first strategic choice was made in 2013 in relation to the future of Don Valley Stadium. The rationale for its closure was based not only on the £700k saving on annual operating costs and the avoidance of alternatively having to close several community pools to achieve the same level of saving, but also the capital cost of stadium repairs – estimated at £1.6m and rising to £4m in future years.

12.5.2

Given the City Council’s limited availability of capital funds, the choice therefore was to spend up to £4m to repair one facility (Don Valley Stadium) – with limited consequent savings on running costs, no expected resulting increase in participation and no prospects of any contributions from external funders – or invest £3.65m to trigger a £24m investment programme in four redeveloped/new facilities (Woodbourn, Concord, Graves and North Active) – with major savings on running costs, significant increases in participation and unprecedented leverage of external capital. The simple choice was therefore between ‘invest to stand still’ at DVS or ‘invest to save and grow participation’ in four facilities.

12.5.3

It is perhaps not surprising that the compelling case for the £24m investment programme has won the strategic support of both Sport England and NCSEM.

12.5.4

In terms of North Active – the alternative of refurbishing Chapeltown Pool has been considered. However, it is already over 50 years old and is nearing the end of its economic life; refurbishment or even a like-for-like pool replacement will not attract external capital; the current pool is too small to serve as the single district pool for the north and the site is too small to build the required district pool and associated fitness/health facilities. The choice is either a new pool now or face the risk of no pool in the near future.

12.5.5

Similarly, the option of refurbishing Stocksbridge pool or building a new pool in Stocksbridge has been considered. However, an independent consultants study in 2013 (commissioned by Sport England and the City Council) concluded that refurbishment would provide only a ‘relatively short to medium term solution’ and would be ‘unlikely to offer value for money’. Furthermore, refurbishment would not attract external capital and would still result in a pool with significant operating costs. Unfortunately, the limited catchment population served by a potential new facility in Stocksbridge is such that Sport England and NCESM have confirmed they would be unable to contribute any capital funds.