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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 10/01/2006
The Edge Leisure Centre, Haslemere



Summary & Purpose
The purpose of this report is to remind Members of the contractual requirement to review the financial arrangements in respect of the management of the Edge Leisure Centre and the result of officers’ negotiations resulting from this review. The recommendations of this report are that a supplementary estimate for 2005/06 be approved and that the base budget for 2006/07 be increased to include provision for the increased management fee payable to DC Leisure Management Ltd for the operation of the Edge.

APPENDIX H
Waverley Borough Council
EXECUTIVE - 10th JANUARY 2006
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The Edge Leisure Centre, Haslemere
[Wards Affected: All Haslemere]
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Note pursuant to Section 100B(5) of the Local Government Act 1972

This report contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 9 of Part I of Schedule 12A to the Local Government Act 1972, viz:-
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Summary and purpose:

The purpose of this report is to remind Members of the contractual requirement to review the financial arrangements in respect of the management of the Edge Leisure Centre and the result of officers’ negotiations resulting from this review. The recommendations of this report are that a supplementary estimate for 2005/06 be approved and that the base budget for 2006/07 be increased to include provision for the increased management fee payable to DC Leisure Management Ltd for the operation of the Edge.
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Environmental implications:

There are no environmental implications arising from accepting the recommendations in this report.

Social / community implications:

The Leisure Centre provides services which address issues of social inclusion, improve the health and well being of the local community and enhance the quality of life of its users.

E-Government implications:

There are no E-Government implications arising from accepting the recommendations in this report.

Resource and legal implications:

There are budget implications for 2005/06 and future years arising from accepting the recommendations in this report. These are set out fully in the body of the report. Acceptance of the proposal in this report does not change the existing legal/contractual situation. _________________________________________________________________________

Background:

Members are advised that the Edge Leisure Centre was funded largely by lottery funding secured by Haslemere Sports Association (HSA) together with grant funding from Waverley, Surrey County Council and other local organisations. The centre is built on land owned by Surrey County Council and a subsequently built all-weather pitch was constructed on adjacent Waverley owned land. The centre was managed by the HSA using a private company, Body and Mind, to operate the facilities on its behalf. The centre is a dual-use centre used largely by Woolmer Hill School during the day and by the community at large at other times.

Current review of contractual arrangements:

DC has given notice of their requirement for an increased management fee. Their request was made in order to counter reductions in income from the level which they had presumed would arise and to compensate for cost increases which DC were unable to predict during the short pre-contract negotiations.

Although officers were sympathetic to the issue of reduced levels of income (largely as a result of the unusual terms and conditions of pre-existing memberships which DC had to continue to honour) and rising costs, your officers, nevertheless, tested DC’s assertions about income and expenditure.

Details of the negotiations are set out in the Exempt Annexe.

Conclusion

DC Leisure are acting within the terms of their contract with Waverley in initiating this review, details of which are set out in the exempt annexe.

Recommendation

It is therefore recommended that:

1) the proposal from DC for an increased management fee as set out in this report be accepted,
2) the actions of officers to secure joint funding of this increase be endorsed,
3) to vary the estimates as set out in the exempt annexe. _________________________________________________________________________
Background Papers (DoF)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.
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CONTACT OFFICER:

Name: Malcolm Bookham Telephone: 01483 523256

E-mail: mbookham@waverley.gov.uk


Comms/Executive/2005-06/237
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