Waverley Borough Council Home Page Waverley Borough Council Home Page


Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 01/04/2003
GODALMING LEISURE NEEDS – BROADWATER PARK



This report provides an overview of the findings from the PMP Consultancy Feasibility Study for a proposed Godalming Leisure Centre and updates Members on the current New Opportunities Fund grant application for Broadwater School Sports Hall.

There are no immediate resource, environmental, "Opportunities for All", human rights or crime and disorder implications arising from the report, although such implications would arise from the eventual implementation of all or part of the Masterplan.

This report has been considered by the Godalming Leisure Needs SIG at its meeting on 26th February and the Corporate Overview and Scrutiny Committee on 11th March 2003.
APPENDIX B
WAVERLEY BOROUGH COUNCIL
EXECUTIVE – 1ST APRIL 2003

Title:
GODALMING LEISURE NEEDS – BROADWATER PARK

[Wards Affected: All Godalming Wards]

Summary and Purpose

This report provides an overview of the findings from the PMP Consultancy Feasibility Study for a proposed Godalming Leisure Centre and updates Members on the current New Opportunities Fund grant application for Broadwater School Sports Hall.

There are no immediate resource, environmental, "Opportunities for All", human rights or crime and disorder implications arising from the report, although such implications would arise from the eventual implementation of all or part of the Masterplan.

This report has been considered by the Godalming Leisure Needs SIG at its meeting on 26th February and the Corporate Overview and Scrutiny Committee on 11th March 2003. Godalming Leisure Centre Feasibility Study

1. PMP Consultancy (PMP) was commissioned to undertake a feasibility study to investigate the possible options for the funding and redevelopment of Godalming Leisure Centre.

2. PMP was specifically tasked with producing a report outlining:

- financial costs for facilities
- funding sources
- list of options and mechanisms for delivery
- Block Plans for a proposed new facility, including key design issues
- site analysis, taking into account operational issues and the needs of the school. 3. The main findings of the feasibility study are set out below:

Facility Mix

4. The facility mix identified in the report was derived by undertaking a market analysis exercise involving a review of strategic context, analysis of demographic and sport and leisure potential profiles of the catchment areas immediately around Broadwater Park, supply and demand assessment and consultation. The recommended Facility Mix is set out in the table below:

Dry-sideWet-sideRugby Club (if this site were chosen)
Four court sports hallMain 25m six lane swimming pool with spectator seatingSeparate Changing Rooms
3 squash courtsLearner PoolReferee Rooms
CrècheChanging and ancillary facilitiesWeights Training Room
Dance StudioOffice
Health & Fitness GymBar
Health Suite (spa, sauna, steam room)Function room (shared)
Café Bar
Function Room
Changing and ancillary facilities
Proposed Site

5. Building on the consultancy work carried out by Parklife in 2001, PMP undertook an analysis of four potential sites to identify a preferred site for the leisure centre, capable of housing the proposed facility mix. The Site analysis considering the four locations is illustrated in the table below (NB: At this stage, a detailed planning assessment has not been carried out and this will have to follow. The current focus of the feasibility is on the operational and landowner issues).

Location
Advantages
Disadvantages
1On, or close to existing leisure centre· limits new building work on park land
· maintains traditional position of sport and nature in the park
· visitors to existing centre enjoy lakeside views
· Maintains and exacerbates access problems of Summers Road.
· Further encroachment onto sensitive open area and the lake
· Visual impact on nearby houses
· Proximity to historic core
· Difficult to integrate with public transport
· Increases building mass at historic centre and retains requirement for rugby club pavilion
· Would mean loss of the facility whilst new one is built
2Within school site· Proximity to ATP
· Would allow demolition of existing centre and return to parkland
· Allows continuous leisure provision with the existing centre remaining until the new centre is open
· Provides easy access for the school.
· Maintains and exacerbates access problems of Summers Road
· Difficult to integrate with public transport
· Hidden from public access by school buildings
· The centre could lack its own identity and be considered a school building.
· Security
· Increases building mass at school but also retains requirement for rugby club pavilion.
3Land between school and Guildford boundary· Allows continuous leisure provision with the existing centre remaining until the new is open· Insufficient space due to new STP under construction
· Increases building mass at school but also retains requirement for rugby club pavilion
4Rugby club site· Potential for easy, established access from Guildford Road and integration with public transport
· Visible from main road, but not intrusive and has good views and aspect
· Away from the historic core
· Allows continuous leisure provision with the existing centre remaining until the new is open
· Potential to improve an existing eyesore and allows rugby club to integrate and so reduce potential overall development on the site
· Is within fairly easy reach of the school and new Premier Hockey Centre
· Restricted site area
· Would require improved access from Guildford Road
· Land is leased to the Rugby Club, therefore negotiation is required

6. PMP identified Option 4, the Rugby Club site, as the most appropriate and proposed that any new leisure facilities constructed within the Broadwater Park area should be on the rugby club site and that it should incorporate within its footprint, facilities for the rugby club, in close cooperation with the rugby club.

Split-site versus single site


7. A further complication for this scheme has been the proposition from a number of consultees around the provision of leisure on split sites. For example, the provision of a sports hall on school grounds, with provision of the health and fitness and wet-side elements on a different part of the park.

8. There are a number of key issues with the split site provision:

· duplication of management and staff resource, with consequent costs to run two sites will
involve duplication of certain staffing and management roles as, for example, it would be
necessary to have leisure attendants at both sites, with some level of duplication, as they
could not fulfil dual roles due to the time issues in moving from site to site

· difficulties in ensuring access is controlled and paid for. If, for example, the sports hall is
remote from the reception area in the main wet-side facility, it will be difficult to ‘police’ users to ensure payments are made and bookings correctly adhered to without some form of ‘pass’
system where users are issued with a ticket at reception, that has to be shown when entering
the hall. This will add time delays and expense to the administration of users and bookings

· duplication of buildings – it may be necessary to provide two sets of dry-side changing for the
sports hall and the health suite, which will mean duplication of both building space and
on-going cleaning/maintenance etc. this will add to both capital and revenue costs. The
alternative of providing one set of changing is unlikely to be acceptable to customers and will educe the attractiveness of the facility to potential users

· utilities costs – provision of two sets of buildings will necessitate two sets of plant being
required to provide heating etc. This will add to both the on-going utilities costs and the initial
capital cost

· attractiveness to potential investors – split site provision is unlikely to be attractive to a
potential private sector partner, which will reduce the likelihood of the Council gaining a
commercial partner for the scheme and therefore question the ability to raise the required level of finance to construct the facilities.

9. Clearly, split site provision has a number of management and financing difficulties compared to a single site. Therefore, it was recommended that any future scheme should be developed towards provision of a single site.

Budget Costs

10. Based upon the floor area required to accommodate the proposed facility mix the estimated building cost for this new facility, using traditional build solutions is in the region of £7.9 - £9.2m.

11. These figures are based upon third quarter 2002 figures and exclude the following costs and VAT. Please note that these figures are approximate and will depend on a large number of variables:

· professional and statutory fees (approximately 12% of construction costs)

· legal fees (which may include the instruction of external solicitors and the ease of resolving
land ownership issues)

· furniture, fittings, curtains and blinds (£300,000 - £500,000 depending upon what level of
quality is selected)

· client costs

· demolition of existing centre and re-landscaping (£75,000 to £100,000 - this does not include
costs for the re-landscaping required to return the land to parkland as again)

· cost of improved vehicular access from A3100 (£100,000 - £120,000, but will depend on the
design of the scheme and what the Highways department accept).

12. It assumes normal ground bearing conditions and no concealed services or sewers. It also assumes a single phase, traditional contract, with prices obtained in limited competitive tendering.

13. An estimated 2002 cost will therefore be in the region of £9 to £10 million, without contingencies.

Funding, procurement and management options

14. PMP considered as part of the report a number of options available to the Council for the funding, procurement and subsequent management of the proposed facility development. The funding and procurement options included:

a) Sport England Lottery Fund (SELF)

b) New Opportunities Fund (NOF) funding, linked to the school sports hall provision

c) Not for Profit Distributing Organisations or Trusts – linked to the existing Trust or otherwise

d) Voluntary Competitive Tendering (and variations within this)

e) DCMS Leisure Private Finance Initiative (PFI) Model with government revenue credits

f) Self financing Leisure Public-Private Partnerships (PPP’s)

Existing financial position

15. The current Godalming Leisure Centre is provided at nil revenue cost to the Council. The Trust management has been effective in achieving this ‘nil subsidy’ position, and the Council are fortunate to be in this position.

16. Against the background of the current financial strategy and known future resources, the Council is not in a position to markedly increase its revenue subsidy, nor is it able to commit significant capital funding to the scheme at this time. Therefore, alternative forms of funding the development need to be explored.

Potential capital funding

17. As outlined above there are a number of external funding sources open to the Council:

· Sport England Lottery Fund

· New Opportunities Fund

· Private sector investment

18. The PMP report indicated that, of the above sources of funding, it will be especially difficult to gain any significant lottery funding and given the timescales set by NOF for proceeding with schemes (application deadline March 2004) it will not be possible to make use of this funding for a new leisure centre. This leaves the option of predominantly private sector funding as the only other option of funding towards a new facility. However the amount available will be dependent upon the preferred procurement and management route chosen by the Council, and the level of revenue financing available to cover the costs of the debt.

19. Godalming Town Council has also been formally approached regarding a possible allocation of funding towards a new Godalming Leisure Centre. The Town Council has indicated that the request will be addressed through their committee process and a response is expected in due course. At the Corporate Overview and Scrutiny Committee, members wished to reiterate the importance of keeping the Town Council informed and included in the future.

Projected capital cost vs. capital income


20. As noted above, according to the work undertaken so far, the cost of the facility is likely to be in the region of £10m after costs for professional fees and highway works are taken into account. PMP advise that a project of this magnitude precludes all of the procurement options except for the Public Private Partnership (PPP) solution. Whilst PPP will not provide all the required funding, there are significant benefits to be gained from this type of procurement, which need to be identified. With this in mind, officers suggest that further exploratory work is undertaken to fully identify the cost benefits to the Council of considering a PPP procurement option for the future development of a Godalming Leisure Centre.

21. An initial scoping discussion with a potential provider has indicated that, in isolation, a project of the nature of the proposed Godalming Leisure Centre is unlikely to be of interest to a PPP provider on a basis affordable by Waverley. This was also the base case conclusion of PMP, but that there may be opportunities for a larger scheme, including redevelopment of other leisure facilities in the Borough.

22. The timetable of such investigations is such that it is Officers’ view, supported by the Portfolio Holder that it is unlikely that a final decision will be made in the next twelve months, although of course we will keep this under review. It is proposed that this information should be made formally available to potential interested parties and the public.

23. When considering capital financing options the Council will need to consider the new capital financial regulations, which the government intend to implement in April 2004. This will also require a review of the Council’s debt free position.

Broadwater School New Opportunities Fund Application

24. Broadwater School has been successful in being selected for inclusion in the Surrey LEA Portfolio for NOF (Round 3) PE and SPORT In School Funding and the New Opportunities Fund (NOF) has now agreed the Portfolio. The allocation recommended for a new Dual-Use (School and Community use) Sport Hall is £500,000 and £365,000 towards a refurbishment of the existing sports hall.

25. When PMP were commissioned to prepare the feasibility study for the new leisure centre, one of the options to be considered was the possibility of utilising the grant funding from NOF towards the new facility, if it could accommodate the requirements of the school. Given the timescales set by NOF for proceeding with schemes (application deadline March 2004) it will not be possible to make use of this funding for a new leisure centre.

26. However, in the 1999 Godalming Leisure Needs Study a shortfall of indoor sports halls was identified and the recommendation then was that if Godalming was to meet the identified needs then it required two sports halls to accommodate casual use and club bookings. With this need still unmet, a possible solution would be for the Council to provide partnership funding to support a refurbishment of the Broadwater School sports hall. This would meet some of the Godalming Leisure needs until sufficient funding is made available to deliver the leisure centre option on the Rugby Club site.

27. The NOF project is due to enter Phase 2, which is the detailed project development and business planning stage. In order for the school to make a stage 2 application they will require confirmation of the level of support the Council will make available in partnership funding. Surrey County Council is currently awaiting Quantity Surveyor estimates for the refurbishment scheme. Once the estimate is received it is anticipated that the school will make an application to the Council for support. Resource Implications 28. No financial estimate has been included in the draft capital programme for 2003/4 pending the outcome of the Godalming Leisure Needs Study to provide an accurate figure and any subsequent funding application to be submitted by Broadwater School. Enviromental Implications 29. There are no immediate environmental, "Opportunities for All", human rights or crime and disorder implications arising from the report, although such implications would arise from the eventual implementation of all or part of the Masterplan.

Conclusions

30. The feasibility study has highlighted a number of key findings that influence the future management and procurement of a new Godalming Leisure Centre:

· the site of the existing Rugby Club clubhouse is the preferred site for a new leisure facility

· the new facility should be constructed on a single site, rather than on a split site, and should
include provision for the Rugby Club

· the cost of the proposed leisure centre is likely to be in the region of £10m at 2002 prices, the
Council is currently not in a position to fund this project

· NOF Funding for the Broadwater School Sports Hall will not be available for a new centre as
the timescale for drawing down this grant precludes this possibility

· Broadwater School still requires a refurbishment of their existing sports hall to meet their
needs, this facility would also meet some of the identified shortfall in dry side provision in
Godalming identified in the 1999 Godalming Leisure Needs Study

· a Public Private Partnership (PPP) procurement method could provide some financial support
for a scheme of this type and further investigation is required to identify the financial options
available to the Council

· a formal request for funding has been made to Godalming Town Council

· a planning assessment will follow in due course

Recommendation

It is recommended that

1. any future leisure centre for Godalming incorporates the facility mix as set out in the PMP study; 2. any future leisure centre for Godalming should be located on the Rugby Club site in Broadwater Park; 3. financial support in principle be given to partnership funding for the refurbishment of Broadwater
School sports hall to provide community provision through the NOF PE & Sport in School scheme; 4. officers continue to investigate the benefits and costs to the council of procuring a new Godalming
leisure centre by means of Public Private Partnership, which could include consideration of
Waverley’s other leisure facilities as part of an overall package and report back the findings at a future date; and

5. all interested parties should formally be informed of the situation.

Background Papers (DoEL)

PMP Consultancy Godalming Leisure Centre Feasibility Study

CONTACT OFFICER:

Name: Julie Maskery Telephone: 01483 523432
E-mail: jmaskery@waverley.gov.uk

Comms/exec/2002-03/596