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Democracy in Crawley

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Democracy in Crawley Crawley 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 Tilgate 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) Tilgate Park & 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.
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