Borough Council

Report No:DCS/18 2

Report to Overview and Scrutiny Commission

29 November 2010

Report to Cabinet

Wednesday 1 December 2010

LEISURE MANAGEMENT – OPTIONS APPRAISAL

1. Key Points

1.1 Earlier this year the Council commissioned an independent appraisal of its future management options in respect of the Hawth, Venture Play Service, Community Centres and Park Nature Centre, Walled Garden and associated amenity facilities.

1.2 In total the Council’s annual expenditure (net of income) on these facilities amounts to £3.327m per annum.

1.3 The Council’s key strategic objective in commissioning this appraisal was to maintain the positive impact these services have on the quality of life enjoyed by residents locally and regionally whilst achieving a substantial reduction in the level of dependency on Council budgets.

1.4 This report reflects the findings from the appraisal and sets out a number of specific recommendations associated with the management and development of each of the services referred to above. These recommendations also reflect comments and observations from service users, staff and the general public, received over a four month consultation period, (July to October 2010).

1.5 The recommendations also reflect extensive feedback from a meeting of the Community and Value for Money Policy Development Forum held on 29 September 2010. Eighteen Councillors were able to attend this meeting

2/ 1 which provided an opportunity to scrutinise the findings and conclusions from the independent appraisal.

2. Recommendations

2.1 To the Overview & Scrutiny Commission

That the Commission consider the report and decide what comments, if any, it wishes to submit to the Cabinet.

2.2 To the Cabinet

That Cabinet approves the recommendations in respect of the future management of:-

(i) & associated Walled Garden, and Nature Centre (as set out at 6.2 in this report) (ii) The Hawth (as set out at 6.3 in this report) (iii) The Venture Play Service (as set out at 6.4 in this report) (iv) Community Centres (as set out at 6.5 in this report), and (v) To approve £35,000 from the Restructure Reserve for external fees as set out in section 7.2.

PHIL ROGERS COUNCILLOR LENNY WALKER Director of Community Services Portfolio Holder for Leisure & Culture

2/ 2 3. Background

3.1 On 14 October 2009 the Cabinet requested an independent appraisal of management options in respect of several of the Council’s key leisure and cultural services.

3.2 Until the mid 1980’s most Councils managed their leisure facilities in-house. Since then there has been a shift towards management by the private sector and, more recently, towards management by Trusts. The Trust option (with not for profit / charitable status) can deliver distinct tax (NNDR and VAT) advantages.

3.3 In recent years the Council has entered into arrangements with a variety of external organisations to manage its leisure facilities. The Council’s regional K2 leisure centre (currently operated by Freedom and Greenwich Leisure) and the Tilgate Golf Centre (currently operated by Glendale Limited) are examples. Significant savings and service improvements have been achieved through these arrangements.

3.4 In January 2010 the Council appointed consultants MAX Associates to undertake the Options Appraisal. MAX Associates were specifically commissioned to consider the advantages and disadvantages of a variety of management options and to offer the Council advice on which model might best meet the Council’s budget and service strategies.

♦ Continued in-house management ♦ Management by private contractor (eg the Freedom Leisure / K2 model) ♦ Management through an existing Trust ♦ Management through a new arms length Trust established by the existing Hawth Team

3.5 Six objectives for the appraisal were established:

Objective 1 – Assess Council key documents to understand aims and objectives in respect to the medium and longer term management of the services. Objective 2 – Ascertain how the current services are performing in line with budgets and user satisfaction. This baseline of information to be used in assessment of each of the future management options. Objective 3 – Assess each of the Future Management Options and evaluate objectively each option Objective 4 – To enable the Council to assess the strengths and weaknesses of each management option and its impact on both individual services and the service overall. Objective 5 – Provide a ranked review of each management option with full detail of the reasons for the criteria scores. Objective 6 – To provide the Council with recommendations from the appraisal and assist in identification of the most appropriate way forward for future management of the leisure facilities.

3.6 The conclusions from the Options Appraisal have been considered as part of the Council’s wider financial strategy and the impending budgetary

2/ 3 constraints facing the Council. The Council is faced with a budget gap of approximately £2.5m, therefore savings will need to be found in the financial year 2011/2012, with additional financial pressure and further requirements for continued savings over the next three to four years.

3.7 The Community Services Directorate is anticipating making savings of approximately £1m over the next three years. Changes to the service being considered through the Options Appraisal process will facilitate delivery of a significant part of this target.

4. Summary of conclusions from the Independent Appraisal and Market Testing

4.1 Tilgate Park, Nature Centre and Walled Garden.

4.1.1 On balance the preferred option is to continue to manage these facilities in-house. It is considered that market-testing of these facilities would be unlikely to deliver significant savings at the present time.

4.1.2 The current strategic direction for the management of Tilgate Park is strong and Crawley Borough Council has developed a robust Green Space Strategy.

4.1.3 A new commercially focused management plan for the Park should be produced for a 3 year period, with clear financial targets. This should be based upon reducing the current subsidy by £150,000 per annum by financial year 2013/2014. Depending upon the success of this approach, the Council may wish to consider the establishment of a Trust to manage these facilities at the end of this period.

4.1.4 The Council should review its decision not to charge for admission to the Nature Centre and rely only on voluntary contributions. While there is obvious appreciation and support for the Nature Centre from visitors, the level of income these contributions make is small when compared with the high level of visitors. Coupled with a review of charges made for car parking and the catering / retail offer in the Walled Garden, it is suggested that a target of generating additional income of £150,000 per annum by 2013/14 should be set (to reduce the current subsidy as mentioned above).

4.1.5 Additional income could be generated from an access scheme that charges a flat rate charge for casual visitors yet rewards local visitors through an annual membership scheme. Benefits of annual membership could include:-

• Free entry all year (family members) • A discount in the café and shop • Early notice of the Park’s annual events programme • Invitations to special events in Tilgate Park • Discounts to major events in Tilgate Park • A quarterly monthly mailing of an e-newsletter

2/ 4 4.1.6 These options will need to be addressed in the new three year management plan. Although there are clear commercial opportunities, a balance needs to be found between the need to drive down the current level of subsidy whilst maintaining a high level of affordable and accessible green spaces on behalf of the local community.

4.1.7 A more proactive approach to future development initiatives should be adopted, as at present it appears new attractions are dealt with in a reactive fashion. The management plan should include these and set achievable timescales for their implementation and likely revenue contribution.

4.1.8 A range of franchising opportunities should be explored including - • Establishing a dedicated gift shop possibly on part of a re- vamped cafe/ restaurant facility. • Riding lessons from the stables area • Adopting a city farm approach and increasing the educational programme. • Develop an improved and varied catering offer • Assessing the opportunities for golf and other outdoor activities eg Go Ape and indoor activities such as Laser Hub • Water-based activities • Other formal and informal indoor and outdoor recreational activities (subject to invitation to tender).

NB Through the Options Appraisal process the Council has been approached by a number of local businesses seeking to instigate negotiations based on these type of opportunities.

4.2 The Hawth

4.2.1 The Hawth is an important part of the Council’s Arts Service and provides a wide-ranging cultural, social and commercial programme meeting the diverse needs of the community. The venue has regional significance, with an annual throughput for all activities in 2008-09 of 212,214 with the theatre and studio accounting for 184,457 of these. The average subsidy per attendance to these facilities is £5.63 and approximately an average of 53% of customers do not live in Crawley.

4.2.2 The commercial value of the Hawth for business meetings, seminars and exhibitions is well established, as is the potential of the Catering Service.

4.2.3 A key question is whether the Council wants to maintain the link between the Hawth, Arts Development and off-site events programming and catering which are all currently undertaken by Arts Services using the resources of the Hawth and its specialist staff.

4.2.4 Initial market evaluation would indicate that the Council would receive expressions of interest from both existing external Trusts and commercial theatre operators for managing the Hawth and that this option would provide the best prospect of reducing the overall subsidy for this service going forward.

2/ 5 4.2.5 Whichever option is adopted, there is a need for the development of a clear specification and business plan that delivers against the Council’s corporate objectives.

4.2.6 Within any new service specification a balance needs to be struck between community and commercial objectives and the specification will need to clearly set out the Council’s ambitions in this respect.

4.2.7 As part of this process an advert could be placed inviting suitably experienced Trusts and commercial operators to express an interest in the future management and operation of the Hawth. The options available might include:

• A contractual relationship with the Council that allows for capital investment. • An option of a contract with or without the off-site catering operation • An option of a contract with or without arts development (which could be retained as an “in-house” service by the Council).

4.2.8 This would not exclude the option of an in-house Trust expression of interest, however significant risk would remain with the Council in the short term unless the Trust was able to identify an external partner to underwrite the business plan and associated financial projections.

4.3 Community Centres

4.3.1 Overall there is a good in-house service that generates income for the Council through providing facilities management services for other organisations, however it is believed that income maximisation of the actual centres has not been fully achieved.

4.3.2 The scores between the various management options are very similar, with none being an outright leading option. Other than Freedom Leisure there were no other providers identified who would be willing to operate the Community Centres on a stand-alone basis. This lack of potential competition means that the most appropriate option is to retain this service in-house.

4.3.3 However, it is suggested that the procurement issues are further investigated in order to determine whether the Council can request from Freedom a financial proposal and method statement for the future management of the centres. This would enable the Council to fully assess the potential benefits gained through this extension of the partnership on both service delivery and subsidy position, compared to the current in-house provision.

4.3.4 A review of charging policy is recommended, taking into account the need to provide protected programming and pricing for community groups and special interest groups.

2/ 6 4.3.5 A Systems Thinking Review on the administration of the booking system should be considered.

4.3.6 There is a need to develop a new service plan and seek to develop new partnerships with, for example, Youth Services. The plan would more closely align the service vision and priorities with the Council’s corporate objectives.

4.3.7 A number of other service development opportunities have been identified by the Council’s existing management team which should be taken forward. These include:-

• Greater utilisation of the community centres as venues for neighbourhood service delivery. • Providing activity programmes and classes to meet local needs and gaps. In particular structured classes to support children’s holiday activities and adult health and fitness programmes are considered areas which could become self financing and sustainable. Although there would be social benefits of such programmes, within the current economic climate, the aim of such activities would be income generation to reduce the existing subsidy.

4.4 Venture Play Service

4.4.1 Overall the evaluation of the Venture Play Service confirms that there are no obvious external partners that could manage the service for the Council. There are limited NNDR and VAT benefits that a local Trust could accrue. It is therefore recommended that the service remains in-house.

4.4.2 Audited figures for Venture Play Service attendances confirm the following patterns of usage – in 2008/09 there were a total of 36,957 visits across all four sites, and in 2009/10 46,219 visits were made. The net subsidy per visit from the Council being £22.74 and £19.07 respectively.

4.4.3 There has been a 21% reduction in Saturday attendance over the last two years. This has been more marked during the winter when attendance has reduced by 32%. The current average daily attendance per site on a Saturday is 25 children during winter months and 36 children during summer months.

4.4.4 Further investigation should take place in relation to the identification of potential new users ie adults, older children and the potential to provide facilities for events such as corporate team building days and children’s birthday parties etc.

4.4.5 It is important to set the service in context of its wider play offer delivered across the town. Further work is required to ensure that play opportunities across the borough are coherent and meet the overall corporate objectives of the Council. The role of adventure play needs to be clear.

2/ 7 4.4.6 The reconfiguration of supervised play services in 2008 and the launch of a new Venture Service resulted in service rationalisation and reduction. It is important that any change to the current service delivery is set in the context of this ongoing work.

5. Consultation

5.1 The conclusions and proposals set out in the Options Appraisal were widely promoted via local press. Copies of the final report were made available to Councillors, staff and residents who were encouraged to have their say. Residents were directed to the full report which was accessible on the Council’s website over a four month period.

5.2 Appendix 1 (attached) summarises the key comments from staff, residents and service users. The overwhelming majority of comments received relate to the Hawth and specifically articulating a desire to safeguard the existing variety of community programmes and activities held at the Hawth.

5.3 At a meeting of the Community and Value for Money PDF held on 29 September Members prioritised and explored some of the key issues and opportunities set out in the full Options Appraisal report:-

5.3.1 Tilgate Park, Nature Centre and Walled Garden

Members raised a number of points including: (i) the possibility of establishing a cross party group of Members to look at policy in respect of the fees and charges associated with the operation of car parking, Nature Centre and Walled Garden facilities; (ii) a preference to retain the Park and Nature Centre under the control of the Council; (iii) the need to review car parking charges; (iv) the consideration of introducing more income generating ideas eg water sports on Tilgate lake, crazy golf, the provision of horse riding trails through Tilgate Forest; (v) the need to improve the cafe / catering area with the possibility of inviting expressions of interest to operate a cafe / gift shop; and (vi) the feasibility of selling the Council’s excess horticultural plants.

5.3.2 The Hawth Theatre

Members raised a number of points including (i) Members preference was for a Trust rather than a commercial operator. It was suggested that this could be achieved by seeking expressions of interest from potential partners if an “In House Trust” was not viable; (ii) there was a need to take a more commercial approach in the operation of ancillary services such as bars and catering and in the programming of events and activities; (iii) that it would be informative and helpful to see a breakdown of the costs of the various shows; (iv) the possibility of increasing the seating in The Hawth should be looked into;

2/ 8 (v) a policy be introduced of ‘showing’ national companies; (vi) there was a need to improve the catering facilities provided, and the possibility of outsourcing that aspect of provision should be considered; and (vii) there was a need to review whether or not there should be a different pricing policy for Crawley residents and non-residents; (viii) in any outsourcing of the management of The Hawth, Members expressed a general preference to keep Arts Development as a Client / Council function based at The Hawth.

NB Following publication of the initial findings from the Options Appraisal in July 2010 the Portfolio Holder for Leisure and Culture approved proposals for the Hawth Senior Management Team to explore the viability of establishing a new in-house Trust led by the current Hawth Team.

Following detailed analysis of the tax, risk management and HR implications the Hawth team concluded that this option would not be a viable proposition. Key factors influencing this decision were:-

• Need to provide a new leadership team as certain key managers will be entitled to retire prior to any transfer taking place. • Cost of insurance to mitigate risk of failure to deliver financial targets would be circa £25,000 per annum (because of immature independent trading record). • VAT position would be markedly less favourable than initially envisaged. • Cost of legal and financial support required to establish a new trust would be £100,000.

5.3.3 Venture Play Service

Members raised a number of points including:-

(i) the need for more adventure playgrounds, particularly to the east of the railway line in ; (ii) Members expressed a preference to retain the service “in- house”; and (iii) Members recognised the need to review opening hours to focus on when demand was highest – Summer school holidays.

NB Members requested that any proposals to alter opening hours are based on audited usage figures. There had been some concern (expressed in local press) that the figures contained in the Consultant’s report did not accurately reflect patterns of demand for the sessions provided by the service. These are now set out at 4.4.2 and 4.4.3.

2/ 9 5.3.4 Community Centres

Members raised a number of points including:-

(i) the need for a more transparent pricing policy; (ii) Members preference was to retain the community centres “in- house”; (iii) the introduction of a more simplified hiring system; (iv) the need to consider the introduction of an electronic key – with the ability to book community centres “on-line”, which would avoid the need for community centres to be locked and unlocked; (v) a wish to accrue more revenue from commercial hirers; (vi) the introduction of a better booking system – similar to the booking system used for K2; (vii) the need to give consideration to marketing community centres as “village halls”; and (viii) the need to promote and use community centres more imaginatively.

6. Summary of Proposals and Recommendations

6.1 Having due regard for the findings of the Independent Options Appraisal, feedback from the Community and Value for Money Policy Development Forum, and extensive consultation with service users and residents, Cabinet are asked to consider the following proposals in respect of each service area:-

6.2 Tilgate Park and Associated Walled Garden and Nature Centre

6.2.1 That the management and maintenance of Tilgate Park and associated Walled Garden and Nature Centre is retained in-house and not subjected to market-testing.

6.2.2 That a commercially focused three year management plan for the park be prepared in consultation with the Portfolio Holder for Leisure and Culture, and implemented to achieve a significant contribution towards reducing the existing £453,000 net subsidy allocated for maintaining these facilities.

6.2.3 That as part of this process the Value for Money Community Services PDF is requested to consider options for generating additional income via the operation of the car parks and the nature centre; associated catering / relevant provision within the park, and to agree proposals for achieving the additional income of £150,000 per annum by 2013/14.

6.3 The Hawth Theatre

6.3.1 That the Council seeks expressions of interest from suitably qualified and experienced non profit-making Trusts and commercial operators to undertake specific defined activities associated with the management and operation of the Hawth theatre through a fixed-term lease / contractual arrangement.

2/ 10 6.3.2 That a small cross-party “task and finish” Member working group is established to oversee this process and specifically:-

(i) to oversee and approve the preparation of clear documentation including the defined activities to be included as part of any invitation for expressions of interest;

(ii) to evaluate any expressions of interest and subsequent business plans submitted by short-listed applicants;

(iii) to make recommendations to Cabinet as to the selection of the external trust / commercial operator for the delivery of the specified activities and services.

NB . Based on the consultation to date (see section 5) some in- principle proposals are likely to be presented to the cross-party working group for further consideration and development:-

(i) that the Community Arts Development work stream is retained under the direct control / management of the Council.

(ii) that a mechanism is included within the fixed term lease / contractual arrangements to (a) facilitate access to the Hawth for arts development purposes to support delivery of a balanced programme consisting of an appropriate mix of minority and mainstream events, and (b) that this mechanism is robust enough to ensure successful delivery of important community events such as the MELA and Folk Festival, as required and specified by the Council and to be included as part of any business proposal submitted by prospective tenderers.

(iii) that the allocation of responsibility between the Council and any prospective management partner for property maintenance and refurbishment is clearly specified and accounted for.

(iv) that consideration is given as to whether or not the services specified as defined activities will include the existing satellite catering activities at the Town Hall and Walled Garden which are currently operated through the Hawth Catering service.

(v) that a mechanism is established within the fixed term lease / contractual arrangements to enable evaluation of the positive / negative revenue position resulting from capital investment from either the Council or a third party partner. This may include (for instance) investment required to increase the seating capacity in the main auditorium.

(vi) that for evaluation purposes the existing in-house operation will constitute a benchmark for comparability purposes with a target of achieving an overall reduction of £250,000 per annum in the current level of subsidy allocated for operating this service.

(vii) that financial provision of £35,000 is made available in 2011/12 to cover costs associated with the procurement process referred to above (see section 7 below).

2/ 11 6.4 Venture Play Service

6.4.1 That the management and maintenance activities associated with the provision of the Council’s Venture Play Service are retained as an in- house activity and not subjected to market-testing.

6.4.2 That further analysis of existing patterns of demand and usage for supervised play services is undertaken with a view to more closely aligning opening hours with the evidenced preferences of families and children.

6.4.3 That a three year plan for generating additional income through ancillary use of venture play facilities (birthday parties, team building days etc) is developed and implemented which, in conjunction with 6.4.2 above will achieve an overall reduction of £150,000 per annum in the current level of subsidy allocated for operating this service.

6.5 Community Centres

6.5.1 That the management and maintenance of the Council’s community centres is retained in-house and not subjected to market-testing.

6.5.2 That as part of the Council’s Asset Management Strategy and the new localism agenda, further opportunities are sought to arrange local management of community centres by community / voluntary sector groups and organisations.

6.5.3 That a Systems Thinking Review is undertaken to examine the processes and procedures involved in the hiring of local community centres by the public and commercial / community organisations.

6.5.4 That the Community and Value for Money PDF be requested to review current charging policy and associated banding system with a view to generating additional income from commercial usage, whilst protecting opportunities and access for community groups and voluntary sector activities.

7. Financial Implications

7.1 This section will reflect the options submitted to the Budget Advisory Group meeting on 18 November 2010. Key points for development:-

• Overall Community Services Directorate seeking to identify savings amounting to approximately £1m per annum by 2013/2014.

• Provisional savings targets from the Options Appraisal are as follows:-

2/ 12 Savings Target by 2013 / 2014

£’000 Operation of the Nature Centre, Walled Garden 150 and associated car parks, catering / retail facilities with further consideration to be given to the potential for income generation from developing new leisure attractions within the park.

The Hawth 250

Venture Play Service 150

Community Centres 100 Total 650 pa

NB Options for achieving these savings targets will be considered by the Budget Advisory Group (BAGP on 18 November 2010. The options presented to the BAG will reflect the recommendations set out in Section 6 of this report.

Cabinet will be able to consider BAG final proposals for achieving these targets in January 2011. Cabinet approval of the recommendations set out in section 6 of this report will signal the strategic direction to be adopted and savings targets to be achieved by these service areas.

7.2 In respect of The Hawth it is further proposed that the procurement process should be led by the Director of Community Services with support from the Head of Community Services and Head of Arts Services. Senior officers from the Property, Procurement, Legal and HR divisions will be closely involved in progressing this work. It is anticipated that a budget circa £35,000 would be required to fund external fees and services associated with the HR, Property (condition surveys and capital investment plans), financial and legal fees, associated with this procurement exercise to be funded from the Restructure Reserve. These estimates do not include costs which may be incurred in the event of a transfer of undertaking taking place. In particular pension-related costs (see below) have not been allowed for here.

7.3 Central Support costs

Transferring services away from the direct management of the Council would impact on the Council’s central support services. It is likely that a private sector operator or existing in-house Trust would have a significantly lower requirement to use central support services. Existing recharges for services provided to the Hawth amount to £252,000 per annum. Further detailed analysis is required to establish the proportion of these costs which may provide further savings in the future.

2/ 13 8. Staffing Implications – Transfer of Undertakings and Protection of Employment (TUPE)

8.1 In the event of the Council deciding to transfer responsibility for aspects of service delivery to a new organisation then the Transfer of Undertakings (Protection of Employees) (TUPE) 2006 regulations would apply. This means that all staff currently directly employed in delivering the service would be transferred to the new organisation on their current terms and conditions.

8.2 In relation to the pensions of current employees, the Council may encourage the new organisation to apply for Admitted Body Status. This means that employees transferred will continue to enjoy the benefits associated with the local government pension scheme.

8.3 The transfer of staff under TUPE using Admitted Body Status would impact on the level of contribution the Council is required to make. It would necessitate a revised valuation, taking into account the number of remaining staff, their age, salaries etc to determine the amount that is required to be recovered.

8.4 Alternatively the new organisation may propose the use of their own pension scheme (subject to actuarial assessment) that this is broadly comparable with the Local Government Pension Scheme (LGPS). In these circumstances the transferred staff would no longer be able to stay in the LGPS but would be invited to join the new employer’s scheme..

8.5 Affected staff and union representatives will be consulted throughout the procurement on the implications of the transfer.

9. Equalities

Tilgate Park

Following implementation of these proposals the Council will be able to offer a more diverse range of leisure activities to Crawley residents, by working in partnerships with third party leisure providers. Any proposals for introducing charges for access to the Nature Centre (to be considered by the Value for Money and Community Services Policy Development Forum) will require a full impact assessment in respect of vulnerable groups such as special needs groups and schools etc.

The Hawth

Currently the Hawth provides a varied programme of Arts and entertainment activities catering for mainstream and minority interests. The proposed recommendations include provision for arrangements to safeguard Arts Development activities and maintain a high level of community access to the Hawth. This will include specifications for a balanced programme of commercial (profitable) and minority interest (subsidised) events and activities. As part of these arrangements it is proposed that the community arts development team is retained as part of the Council core client team.

2/ 14 Venture Service

The Venture Play Service does actively encourage equality of opportunity through measures such as discretionary pricing for residents on benefits and specialist facilities for young people with disabilities at Millpond. Any reduction in service, opening times may have implications for such groups.

10. Legal

The preparation of tender documentation required to support any market appraisal exercise will require significant legal and HR input / advice. Discussions with relevant Heads of Service are ongoing but it is anticipated that the bulk of the support required will be provided by the Council’s own in- house team.

11. Risk Implications

The Leisure Options Appraisal and the recommendations set out in this report propose significant changes to several of the Council’s front facing leisure and cultural services. Implementing these proposals would necessitate ongoing management and assessment of risks..

12. Environmental Impacts

Management of visitors to Tilgate Park whilst protecting the sensitive natural environment must be a key consideration in progressing relevant proposals.

Energy conservation measures will be implemented as a result of the proposed changes associated with management of the Community Centres and the Hawth..

. The proposals contained in this report relate to the following key areas of the Sustainable Community Strategy

Community Cohesion y Community Safety y Young People and Children y Health and Well Being y Older People y The Environment y The Local Economy Social Inclusion y

The following key principles are applicable:-

(i) Working together (ii) Dignity, respect and opportunities for all (iii) Involving People (iv) Making it last y

2/ 15 The report relates to the following areas in which the Council operates to enhance the town and the quality of life of local people:-

(i) Prosperity (ii) Community y (iii) Environment (iv) Value for Money y

Background Papers

Reports prepared by MAX Associates:-

♦ Options Appraisal of the future management arrangements for Tilgate Park in Crawley. Dated July 2010 ♦ Options Appraisal of the future management arrangements for Community Centres in Crawley. Dated July 2010 ♦ Options Appraisal of the future management arrangements for Adventure Play in Crawley. Dated July 2010. ♦ Options Appraisal of the future management arrangements for The Hawth, Crawley. Dated July 2010.

Contact Officer:- Phil Rogers, Director of Community Services Direct Line:- 01293 438443

2/ 16 APPENDIX 1

LEISURE OPTIONS APPRAISAL – STAKEHOLDER FEEDBACK

Source Feedback Response

Staff (9) If management of a service is externalised and It is important to remember that if management is externalised the Council would the new operators are encouraged to reduce still retain significant control over the balance of the programme. costs by adopting a more commercial programme, then surely much of the non-profit Key factors influencing this would be:- making community events and activities will be ♦ Selection of the right partner put at risk. Members would wish to carefully vet potential management partners to ensure they can demonstrate the ability to deliver a high quality service with a strong commitment to community development. The current service delivered by the in-house team will be the benchmark, and Members will need to be convinced that any potential new partner would be able to at least match existing service standards and provide significant financial savings for the Council. ♦ The Specification In seeking expressions of interest to run any service, the Council would need to develop a very clear specification setting out the level of service to be provided. In the case of the Hawth for example, community use of the theatre (schools, amateur dramatics and significant annual events, eg Mela, Folk Festival, Circus Festival etc) could all be protected if specified as an intrinsic part of the programme required by the Council. ♦ Funding Whatever future management model is adopted the Council will continue to provide a significant level of subsidy / grant towards maintaining each of the community facilities being appraised. The Council will therefore be in a strong position to influence both contractually and financially service quality and the balance of programme activities between mainstream and minority events.

Staff (2) In the event of responsibility for managing a Yes – Legislation (Transfer of Undertakings Protection of Employees) (TUPE) particular service being externalised will the would require this to happen and the Council would only consider appointing a existing staff transfer to the new service partner who could meet these responsibilities. In particular detailed negotiations provider on existing Conditions of Service. would be required on safeguarding accrued and future pension rights for any employees transferring.

2/ 17 Source Feedback Response Staff (1) Bringing in a new Management company Potentially yes. Any new operator is likely to be operating a portfolio of similar could provide better value for money and be facilities elsewhere and this may well enhance opportunities for staff to progress beneficial for staff with more opportunities for within the organisation. career development etc.

Staff (1) Concern (specifically from staff at the Hawth) Theatre services funded by local authorities are very difficult to compare on a like- that some of the venues referred to in the for-like basis. All have subtle differences in the scale of the operation and the mix appraisal by way of comparison with the of services provided (bars, catering, conference, cinema, room hire, community Hawth are not representative because the programme, classical concerts, shows and events). The market appraisal nature of services and / or the scale of the undertaken by the Council’s Consultants does indicate that across the spectrum of operation is not similar enough. services provided at the Hawth there are several potential external partners with relevant experience, and who would be likely to express an interest in taking on the Hawth if the Council decides to go down this route. In the opinion of our consultants, and based on market appraisal they indicate that this option would be likely to offer significant financial advantage compared with existing levels of expenditure.

Regular hirers / users of Concern that more commercial programme These concerns relate to the ability of the Council to exercise control / influence the service (32). Hawth would result in minority interest / community over any new provider. Purposeful management of any new partnership and Community Centres ethos being lost and as a result that their arrangement will be the key to meeting and exceeding expectations whatever – particular significant activity / group would be denied access or management model is adopted. As already mentioned the Council will retain representation from have to pay significantly more than at present.. significant influence and control over any new arrangement entered into. Circus Festival, Folk Festival, Dance and Amateur Dramatics organisers and Playgroups Youth Arts.

General Public (19) The Hawth is an asset which residents fought long and hard for and the existing team do a These matters are dealt with above. good job – why rock the boat? Don’t take the facilities away from the local area! (9)

How will the Council protect existing hirers, and won’t charges increase substantially? (7)

2/ 18 Source Feedback Response

General public / cont’d All the Council thinks about is money! (3)

The Hawth is very important to Crawley with a close connection with local groups and individuals built up over many years. Transfer to a new management company would jeopardise these relationships!

Other (4) Would like an opportunity to bid for elements Details have been retained on file for potential future reference and pending the of service provision (particular associated with Council’s final decision. Tilgate Park); Café, lake and recreation provision etc.

Source Petition heading Response

Petition from residents / “Dear residents of Cedar Lodge – the families and friends of members of Crawley Operatic Society are Similar to that set out below. Cedar Lodge (signed by requesting your help. The Crawley Council 41 individuals) intend to sell THE HAWTH THEATRE which could result in the HAWTH being leased to a commercial organisation with or without arts development

We are trying to persuade the Council to retain the management of The Hawth but reorganise how it is run. By you signing the petition hopefully we will succeed”.

Petition from Vision in We, Vision in Youth Collective and friends To address the issues raised in the petition: Youth Collective (signed from around Crawley would like to protest at Firstly let me say that it is very heartening that young people like “the crew” and by 40 individuals) the idea of the Hawth being turned into a Trust through the work of Vision in Youth can get involved in the arts here in Crawley. or sold. This is something the Council would like to encourage, and intends to do this through the grants and subsidies provided to groups to enable them to develop their As young people we are passionate about projects and utilise our facilities such as the Hawth and Community Centres. The music and the arts and believe that the Hawth Council’s commitment to this will not change. The Portfolio Holder for Leisure and should remain in the direct control of CBC – Culture, Councillor Lenny walker has made it absolutely clear that there is no NO MATTER WHAT THE COST” question of the Hawth being sold or closed.

2/ 19 The Council is however currently considering how leisure services might best be managed in the future. Our aim is to protect these services in what is an extremely challenging financial climate (anticipated 30% reduction in available funding over the next 3 years). Councillors will be making decisions on the future management of the Hawth, Tilgate Park, Community centres and Venture Service towards the end of this year.

Whatever management arrangements are adopted in the future the Council will retain responsibility for specifying the nature of the programme and range of activities provided. Members will wish to see a good balance between mainstream (income generating) activities and community / minority interest (subsidised) events. They will also be keen to ensure that community groups such as yours are able to thrive and develop in the future.

Once gain thank you for your interest and constructive comments and these will be reflected in the feedback provided to Members as part of the decision-making process.

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