Satish Mistry Executive Head of Governance

www.guildford.gov.uk

Contact Officer: James Dearling, Committee Manager. Tel: 2 March 2015 01483 444141

Dear Councillor,

Your attendance is requested at a meeting of the CUSTOMER AND COMMUNITY SCRUTINY COMMITTEE to be held in the Council Chamber - Millmead House on TUESDAY, 10 MARCH 2015 at 7.00 pm.

Yours faithfully,

Satish Mistry Executive Head of Governance

MEMBERS OF THE COMMITTEE

Chairman: Councillor Adrian Chandler Vice-Chairman: Councillor Pauline Searle

Councillor Melanie Bright Councillor Julia McShane Councillor Lizzie Griffiths Councillor James Palmer Councillor Angela Gunning Councillor Tony Phillips Councillor Jayne Hewlett Councillor Mrs Jennifer Powell Councillor Philip Hooper Councillor Neil Ward Councillor Diana Lockyer-Nibbs Councillor Jenny Wicks

Authorised Substitute Members:

Councillor Mark Chapman Councillor Christian Holliday Councillor Graham Ellwood Councillor Bob McShee Councillor Christian Gilliam Councillor Anne Meredith Councillor David Goodwin Councillor Marsha Moseley Councillor Liz Hogger Councillor Nikki Nelson-Smith, The Deputy Mayor

Co-opted Members – Tenants’ representatives:

Mr Mike Parsons, Tenants' representative Mrs Stella Howarth, Tenants' representative

QUORUM 5

This meeting will be webcast. Please see overleaf for more details

Guildford Borough Council Millmead House, Millmead, Guildford, Surrey GU2 4BB

THE COUNCIL’S STRATEGIC FRAMEWORK

Vision – for the borough

For Guildford to be a town and borough:

 with strong infrastructure  world-class businesses with capacity to expand and deliver growth  an evolving and vibrant economy which creates a progressive and sustainable environment  for people today and future generations living in an ever improving society.

Five fundamental themes that support the achievement of our vision

 Infrastructure – working effectively with partners to drive development and business growth that will expand our economy

 Economy – to grow a sustainable economy that will support all aspects of life in our borough.

 Development – to ensure that there is appropriate infrastructure, commercial space and a range of homes, built sensitively, without damaging our heritage or countryside.

 Sustainability – to ensure the services we provide and the borough develops and grows, in the most sustainable way.

 Society – to evolve a self-reliant and sustaining community, while supporting our most vulnerable residents.

Values for our residents

 We will strive to be the best Council.  We will deliver quality and value for money services.  We will help the vulnerable members of our community.  We will be open and accountable.  We will deliver improvements and enable change across the borough.

Mission – for the Council

A forward looking, efficiently run Council, working in partnership with others and providing first class services that give the community value for money, now and in the future.

Developing our Council

To be a well led, collaborative organisation that has customer care and top quality at its heart. To have highly trained and proficient staff and councillors who challenge and learn.

WEBCASTING NOTICE This meeting will be recorded for live and/or subsequent broadcast on the Council’s website. The whole of the meeting will be recorded, except where there are confidential or exempt items, and the footage will be on the website for six months.

If you make a representation to the meeting you will be deemed to have consented to being recorded. By entering the Council Chamber, you are also consenting to being recorded and to the possible use of those images and sound recordings for webcasting and/or training purposes.

If you have any queries regarding webcasting of meetings, please contact Committee Services on 01483 444102.

Terms of Reference of Guildford Borough Council’s Overview and Scrutiny Committees

8.1 Terms of Reference The Council will appoint two scrutiny committees to discharge the functions conferred by Sections 21 and 21A of the Local Government Act 2000 or regulations made under Section 32 of the Local Government Act 2000, as follows:

Corporate Improvement Scrutiny Committee:

To lead on those functions which are concerned with the management of the Council’s resources, internal services and overall improvement programme.

Customer and Community Scrutiny Committee:

To lead on those functions of the Council which have a direct impact on the Council’s customers and local communities.

(The Customer and Community Scrutiny Committee is the Council’s designated crime and disorder committee under Section 19 of the Police and Justice Act 2006.)

The general terms of reference of the scrutiny committees are set out below:

(a) to perform all overview and scrutiny functions on behalf of the Council;

(b) to appoint such sub-committees as they consider appropriate to fulfil those overview and scrutiny functions;

(c) to receive reports from the Leader at their first normal meetings after each Annual Council meeting on ‘the state of the area’, the Leader’s/Executive’s priorities for the coming year and their performance in the previous year;

(d) to approve overview and scrutiny work programmes so as to ensure that the time of each committee is effectively and efficiently utilised;

(e) to undertake investigations into such matters relating to the Council’s functions and powers as:

(i) may be referred by the Leader/Executive; or

(ii) each committee may consider appropriate; or

(iii) have been referred to a committee pursuant to the “call-in” procedure set out in the Overview and Scrutiny Procedure Rules in Part 4 of this Constitution;

In respect of (iii) above, the relevant scrutiny committee may review the decision or, if it so wishes, refer the matter to the full Council for review.)

(f) to review and advise on all existing policies of the Council, including making recommendations for future options to the Leader/Executive;

(g) to review arrangements to secure continuous improvement in the way in which the Council’s functions are exercised, having regard to a combination of economy, efficiency and effectiveness;

(h) to monitor and review the Council’s performance against relevant national and local performance indicators and adopted plans and strategies;

(i) to consider any matter affecting the area or its inhabitants;

(j) to discuss initiatives put forward for consideration by individual members of each committee

(k) to deal with any relevant councillor call-for-action in accordance with the protocol attached as Appendix 1 to the Overview and Scrutiny Procedure Rules set out in Part 4 of this Constitution; and

(l) to consider petitions received under the adopted Petition Scheme that fall into the following categories:

 petitions requiring a senior officer to give evidence to a scrutiny committee; and

 a request from a petition organiser, who is not satisfied with the Council’s response to a petition, for a review of the adequacy of the steps taken or proposed to be taken in response to the petition. * * *

MEETING DATES FOR REMAINDER OF 2014-15 Council Chamber, Millmead, beginning at 7pm:

Joint Corporate Improvement Scrutiny Committee Scrutiny Committee 7 April 2015 23 April 2015

A G E N D A ITEM

1. APOLOGIES FOR ABSENCE AND NOTIFICATION OF SUBSTITUTES 2. LOCAL CODE OF CONDUCT - DISCLOSURE OF INTERESTS In accordance with the revised local Code of Conduct, a councillor is required to disclose at the meeting any Disclosable Pecuniary Interest (DPI) that they may have in respect of any matter for consideration on this agenda. Any councillor with a DPI must not participate in any discussion or vote regarding that matter and they must also withdraw from the meeting immediately before consideration of the matter.

If that DPI has not been registered, you must notify the Monitoring Officer of the details of the DPI within 28 days of the date of the meeting.

3. MINUTES (Pages 1 - 6) To confirm the minutes of the Customer and Community Scrutiny Committee meeting held on 13 January 2015.

4. ANNUAL CONTRACT MONITORING: OPERATION OF G LIVE (Pages 7 - 42) To consider a review of the performance of HQ Theatres (Guildford) Limited in the third year of the ten year contract for operating G Live.

5. OPERATION OF LEISURE MANAGEMENT CONTRACT (Pages 43 - 90) To consider performance of the leisure contractor operating Guildford Spectrum, Guildford Lido and Ash Manor Sports Centre for the contract year 2013-14 and an update on key council projects affecting Guildford Spectrum.

6. CUSTOMER AND COMMUNITY SCRUTINY COMMITTEE - WORK PROGRAMME (Pages 91 - 102) To consider the work programme for the Customer and Community Scrutiny Committee and Joint Scrutiny Committee.

Please contact us to request this document in an alternative format

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CUSTOMER AND COMMUNITY SCRUTINY COMMITTEE

13 January 2015

*Chairman: Councillor Adrian Chandler *Vice-Chairman: Councillor Pauline Searle

*Councillor Melanie Bright Councillor Julia McShane *Councillor Lizzie Griffiths *Councillor James Palmer Councillor Angela Gunning Mr Mike Parsons Councillor Jayne Hewlett *Councillor Tony Phillips Mrs Stella Howarth *Councillor Mrs Jennifer Powell Councillor Philip Hooper *Councillor Neil Ward * Councillor Diana Lockyer-Nibbs Councillor Jenny Wicks

*Present

Councillor Matt Furniss, Lead Councillor for Transport, Infrastructure and the Environment, Councillor Gordon Jackson, Lead Councillor for Economic Development, and Councillor Caroline Reeves were also in attendance.

In accordance with Council Procedure Rule 23(j), Councillors David Goodwin and Nikki Nelson-Smith attended as substitutes for Councillors Julia McShane and Jenny Wicks respectively.

CC45 – APOLOGIES FOR ABSENCE AND NOTIFICATION OF SUBSTITUTES Apologies for absence were submitted on behalf of Councillors Angela Gunning, Jayne Hewlett, Philip Hooper, Julia McShane, and Jenny Wicks. The Committee was advised of substitutions as detailed above.

CC46 – LOCAL CODE OF CONDUCT – DISCLOSURE OF INTERESTS In relation to item 7, Electric Theatre – Working Group, and item 8, Yvonne Arnaud Annual Grant Award and Monitoring, a number of non-pecuniary interests were disclosed:

 Councillor Mrs Jennifer Powell advised that she was a trustee of the Yvonne Arnaud Theatre Trust, a member of the Yvonne Arnaud Management Board, a trustee of the Guildford Book Festival, and a Friend of the Electric Theatre.

 Councillor Tony Phillips advised that he was a trustee of the Yvonne Arnaud Theatre Trust and a member of the Yvonne Arnaud Management Board.

 Councillor Adrian Chandler advised he was a Friend of the Yvonne Arnaud Theatre.

 Councillor Gordon Jackson advised he was a member of the Vanbrugh Club at the Yvonne Arnaud Theatre.

CC47 – MINUTES The minutes of the meeting of the Customer and Community Scrutiny Committee held on 2 December 2014 were confirmed and signed.

The minutes of the meeting of the Joint Scrutiny Committee held on 13 November 2014 were confirmed as accurate.

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CC48 – WEY AHEAD NEWSLETTER ITEMS – COUNCILLOR QUESTIONS No questions were received.

A Committee member commended the recent improvement to the Wey Ahead newsletter.

CC49 – SURFACE WATER MANAGEMENT PLAN FOR THE BOROUGH OF GUILDFORD The Principal Engineer introduced Mr Alistair Cotton (Urban Water Planner, CH2MHILL) to the Committee. Mr Cotton gave a presentation summarising the methods and outputs of the Surface Water Management Plan (SWMP) for the Borough.

The Lead Councillor for Transport, Infrastructure and the Environment commended the SWMP to the Committee. The Committee was advised of the need for a partnership approach to address identified flood hotspot locations.

Questions from the Committee raised the following points and information:

 There was a need to encourage the formation of flood forums in some areas of the Borough.

 The Bellfields Green Space Project had not been consulted during the preparation of the SWMP.

 Large puddles on the highway in the locality of York Road were due to blocked gullies and the need for more strategic capacity.

 The Committee was advised that floods in the Borough commonly had more than one source and surface water was not being considered in isolation, but addressed in conjunction with other sources of flooding, including the River Wey.

 Wetspots data from Surrey County Council had been utilised in the preparation of the SWMP.

 The action plans within the SWMP included details of the agencies that would need to be involved and identified potential funding.

 Information on underground springs in the Borough was available from the Environment Agency website.

 The Committee was advised that there was limited scope for the Council to charge for maintenance of watercourses and grilles on non-Council land. In response to questions from members, the Executive Head of Environment indicated that watercourse and grille clearance would not cease unless ownership of the land was known and suitable arrangements were in place.

The Committee agreed that the maintenance of watercourses and grilles on non-Council owned land should not cease and officers should undertake to recover the costs for the work from relevant landowners.

The Committee,

RESOLVED: That, subject to the points above, the recommendations in the report, as set out below, be adopted:

(I) That the Committee support the Surface Water Management Plan (SWMP), approve the findings of the SWMP, and support the proposed Action Plan. Page 2

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(II) That the Committee recommends that the Executive:

(a) Endorses the Surface Water Management Plan and Action Plan.

(b) Agrees that the SWMP Project Board continues to oversee the management of the project with key partners.

(c) Authorises the Executive Head of Environment, in consultation with the Lead Member for Transport, Infrastructure and Environment and the Executive Head of Governance, to enter such contracts as are necessary to progress the Action Plan within the capital resources available.

CC50 – PARKING BUSINESS PLAN 2015-16 The Parking Manager introduced the Parking Business Plan, indicating it was a joint business plan covering off-street car parking, on-street parking, and park and ride. The Committee was advised of the importance of developing an updated parking strategy and ensuring all services are co-ordinated.

The Parking Manager explained the “drive to, not through” model of car parking and outlined the benefits, including a lessening of congestion. The Committee was advised that increasing charges in long-stay car parks and encouraging park and ride would reduce congestion. The Parking Manager highlighted proposals to reduce the costs of park and ride and lower its subsidy.

The Lead Councillor for Transport, Infrastructure and the Environment advised the Committee of a long term approach and plan for car parking and traffic in Guildford.

Questions from the Committee raised the following points and information:

 The agreement with Surrey County Council to manage the on-street parking in Waverley started in April 2013, for a five-year period, with an expectation of a rolling agreement. The Parking Manager indicated that Guildford Borough Council could provide management of on-street parking in other boroughs keen for such arrangements.

 Members welcomed the proposal to give priority for garage lets to residents in areas A,B,C,D, E, or F of the controlled parking zone. Arrangements for enforcing the use of garages in accordance with leases were discussed.

 The Parking Manager confirmed that village parking hotspots were targeted for parking compliance.

 With reference to changing people’s behaviours and attitudes in relation to car parking, the need for effective communication and engagement was emphasised, rather than over-reliance on information signage.

 The results of the public consultation undertaken as part of the recent Fundamental Service Review (FSR) of Parking Services would be shared with Committee members within the final report confirming the findings and actions related to the FSR in March 2015.

 Compared with pay and display car parking, more complex parking tariffs could be used with pay on foot arrangements. Converting existing pay and display car parks to pay on foot often required redesign of entrances and exits.

 With reference to park and ride, the Committee was advised that any charges Page 3

Agenda item number: 3

made for car parking were liable for VAT whereas charges for the bus journey were not.

 With reference to the combination of the mobile guarding service at the Artington and the Merrow Park park and ride sites, members were advised that CCTV could be monitored at one site while the guard was at another and the guard could also respond remotely to customer enquiries.

The Committee,

RESOLVED: That the Committee recommend to the Executive that the recommendations in the report, as set out below, be adopted:

(I) a task group be established to develop a Parking Strategy which sets a framework for parking operations to support key strategic plans including the Local Plan, Town Centre Master Plan, and Local Transport Plan.

(II) that the potential to develop Millbrook Car Park continue to be examined and that ways of changing existing car parks, or developing new ones, based on the “drive to, not through” principle be explored.

(III) all interested parties discuss changes to the direction road signage, particularly where this will improve motorists’ ability to park in the first convenient car park.

(IV) to encourage greater use of park and ride and address the increase in use the following tariff adjustments be approved:

(a) Farnham Road Multi-Storey Car Park from 7.00am to 7.00pm Monday to Saturday from 90p per hour to £1.00 per hour with a maximum daily charge of £8.

(b) York Road Multi-Storey Car Park from 8.00am to 6.00pm Monday to Saturday from 90p per hour to £1.00 per hour with a maximum daily charge of £8.

(c) Guildford Park Car Park from £4.50 per day on Monday to Friday to £5.00 per day.

(d) Shalford Park Car Park from £2.80 per day on Monday to Friday to £3.20 per day.

(e) Walnut Tree Close Car Park from £3 per day on Monday to Friday to £3.20 per day.

(V) the charge for season tickets in York and Farnham Road Multi-Storey Car Parks is increased by five per cent.

(VI) the rental charges for garages managed by the Parking Service are increased by five per cent.

(VII) when a garage becomes available, first priority is given to any resident living in areas A,B,C,D, E or F of the controlled parking zone.

(VIII) the charge for contract parking is increased by five per cent.

(IX) the annual revenue contribution to the Car Park Maintenance Reserve is reduced by £125,000 from April 2015.

(X) the lights in Castle, Farnham Road and York Road Car Parks are upgraded to LED Page 4

Agenda item number: 3

lamps, as detailed in the bid attached as Annexe 8 of the Parking Business Plan, and that this be funded from the Car Park Maintenance Reserve.

(XI) the lift replacement programme proposed in the bid attached as Annexe 9 of the Parking Business Plan, is funded from the Car Park Maintenance Reserve.

(XII) the car parks detailed in Annexe 10 of the Parking Business Plan be included within the Off-Street Parking Places Order and that the Council undertakes the statutory procedures to amend the order.

(XIII) the provision of guarding services at Artington and Merrow Park and Ride sites be combined to become a mobile guard between the two sites.

(XIV) Surrey County Council undertakes a public consultation on the proposal to remove the ENCTS [English National Concessionary Travel Scheme] from the Park and Ride network for people qualifying based on age and on the introduction of a nominal charge of £1 per return journey for these concessionary pass holders.

(XV) the uncommitted surplus from on-street parking management in Guildford for 2013- 14 of £68,000 is put towards the cost of Onslow Park and Ride in 2015-16.

(XVI) the unspent surplus from on-street parking management in Waverley, £37,750, is put towards the cost of Onslow Park and Ride in 2015-16.

(XVII) officers be authorised to undertake necessary actions to bring about the changes agreed in this report, including making changes to the off-street parking order.

CC51 – ELECTRIC THEATRE – WORKING GROUP The Executive Head of Development introduced a report on the establishment of a working group to develop a business strategy for the Electric Theatre. The report advised the Committee that the working group would look at the recommendations of the Beckwith Consulting Report, the future operating model of the Theatre, and key aspects in the development of the Theatre’s business plan.

The Lead Councillor for Economic Development highlighted the enthusiasm and loyalty of the Theatre staff and indicated that the working group’s review would examine the future organisation of the Theatre.

Members endorsed the recommendations of the Beckwith Consulting Report, in principle, and supported a proposal to include the full cost of G Live when formally reporting performance information to members.

In response to a question, the Executive Head of Development informed the Committee that the ethos and role of the Theatre would be included in the working group’s review.

The Committee considered nominations to the working group, including the suitability of members with close links to the organisations involved and the perceived integrity of the review.

The Committee,

RESOLVED:

That the Group Leaders, in consultation with the Monitoring Officer, be authorised to confirm the nominations to the Electric Theatre working group.

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CC52 – YVONNE ARNAUD ANNUAL GRANT AWARD AND MONITORING The Executive Head of Development and the Head of Financial Services summarised the proposals for the Committee’s consideration. The Committee was advised that the existing grant to the Yvonne Arnaud was £310,220 and it was proposed to set the grant for 2015-16 at the same level.

The Director of the Yvonne Arnaud Theatre, Jamie Barber, welcomed the proposed review of the Service Level Agreement between the Council and the Theatre, and indicated his support for a future three-year funding agreement. He also indicated his approval for the proposed inclusion of at least one officer representative on the Yvonne Arnaud Trust and Yvonne Arnaud Management Board .

Committee members observed the key risk identified in the report was that if the Yvonne Arnaud Theatre ceased to trade then the ownership of the Theatre would revert to the Council and the cost of maintaining the building would fall to the Council as the freehold landowner.

The Committee,

RESOLVED: (I) That the terms of reference of the working group set up to review the Electric Theatre and the wider performing arts venues in Guildford [minute CC51 above refers] be extended to include the services that the Council grant funds at the Yvonne Arnaud.

(II) That the Committee recommends to the Executive:

(a) that the grant to the Yvonne Arnaud Theatre be set at £310,220 for 2015/16.

(b) that, subject to the outcome of the working group’s review, a three-year funding agreement be considered with the Yvonne Arnaud for 2016/17 to 2018/19.

(c) that the Guildford Borough Council representatives on the board of trustees of the Yvonne Arnaud Trust and Directors of the Yvonne Arnaud Management Company are changed to include at least one officer representative.

(The meeting finished at 9.13 p.m.)

Chairman 10 March 2015

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Customer and Community Scrutiny Committee Report Report of Executive Head of Environment - James Whiteman Author: Jonathan Sewell Tel: 01483 444729 Email: [email protected] Lead Councillor responsible: Gordon Jackson Tel: 01483 234558 Email: [email protected] Date: 10 March 2015 Annual contract monitoring: operation of G Live Executive Summary The Council entered into a 10 year contract and lease to operate G Live with HQ Theatres Guildford Limited (HQT) on 12 August 2011. This report is to review the third contract year 1 October 2013 to 30 September 2014. The venue consists of main concert space capacity of 1,031 people seated, 1,700 standing, and some further smaller areas. HQT is required to provide different genres of entertainment and key performance indicators set out the balance to be achieved. The Council’s asset management responsibilities are for maintaining, repairing and replacing the structural parts and the access road. HQT are responsible for all other maintenance and replacement items for the building and equipment. The annual report from HQT reviewing the performance in year three of the contract is at Appendix A and includes a summary of the KPIs at page 10. HQT are required to provide 265 events per annum covering a wide programme across a range of genre and have achieved 272. The variance in the Rock, Pop, Folk, Jazz and World (seated) category is significant with a target of 84 against an actual of 34 performances (40 per cent). The availability of artists will always fluctuate. An initial review of the KPI’s categories would suggest they remain appropriate however now that three years actual usage data is available a review of specific targets will take place in conjunction with HQT. Customers appear generally satisfied with the venue and there are plans to address areas of concern. HQT have generated an operating profit of circa £138,906. This will result in a profit share rebate of circa £27,481. Recommendation to Customer and Community Scrutiny Committee That the committee considers and comments on (1) that the performance of the HQT largely meets expectation (2) the results of the KPI’s in Appendix A (3) the further joint review with HQT of the targets and KPI’s for future years. Reason(s) for Recommendation: HQT have had an operationally successful year generating a surplus. Whilst a number of KPI's have not reached target, others have significantly exceeded expectations and there has been growth in attendances. Some of these original KPI targets were set optimistically in the absence of any usage data. The KPI review with HQT will ensure the KPI's continue to meet the objective of a balanced yet challenging programme.

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1. Purpose of report

1.1 This report will review the performance of HQ Theatres (Guildford) Limited in the third year of the ten year contract for operating G Live. 2. Strategic priorities

2.1 G Live contributes to the fundamental theme of economy of Guildford in a number of ways primarily through attracting tourism, offering employment opportunities to borough residents, contributing to the town centre economy and making Guildford a more attractive place to live and work.

2.2 G Live as an attraction helps sustain local business such as restaurants, bars, hotels, petrol stations etc. It can also be the catalyst for an individuals or organisations first visit to Guildford who may then return or even move to the borough. The financial impact of the money spent by the customer at the venue is much greater than just the ticket sales and ancillary purchases at the event and is effectively recycled many times through paying the G Live employees and local suppliers and their subsequent purchases.

3. Background

3.1 The Council entered into a 10 year contract to operate and manage G Live with HQ Theatres Guildford Limited (HQT) on 12 August 2011. The contract period commenced from the opening date of the venue on 15 September 2011. The Council also entered into a lease of the G Live premises for a period of 10 years again from 15 September 2011 at a peppercorn rent. 3.2 The venue consists of main concert space capacity of 1,031 people seated, 1,700 standing, and a second space seating for up to 100. In addition, there are hospitality and meeting rooms. 3.3 HQT is required to provide different genres of entertainment and key performance indicators set out the balance to be achieved between the provision of:- classical music, co-promotions, dance, rock, pop, folk, jazz and world concerts, comedy/spoken word, children’s family entertainments, sport and others. HQT is to provide for up to 15 events per annum by local amateur and pro-am associations. In total 265 non-hospitality events are to be staged annually. HQT must also optimise commercial and hospitality income in G Live. Fisherman’s Friends tragedy

3.4 The operation of the venue continues to be affected by the tragic incident on 9 February 2013 that resulted in the deaths of Trevor Grills and Paul McMullen of the Fisherman’s Friends company. 3.5 The circumstances surrounding the cause of this tragic incident are still subject to the ongoing Surrey Police and Health and Safety Executive (HSE) investigation and, at the point of writing this report, no outcomes of the investigations have been released however, there has been an arrest of an individual from an external third party organisation. The Council and HQT will continue to assist with the investigation as appropriate.

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Asset management responsibilities

3.6 The contract and the lease set out the responsibilities for asset management within the site. In summary, the Council is responsible for external cladding repairs and replacement, maintaining, repairing and replacing the structural parts and the access road. HQT are responsible for all other maintenance and replacement items for the building and equipment. 3.7 A number of outstanding issues arising from the operation of the venue have been resolved in the period although there remain some issues to resolve. The Council and HQT continue to work with Willmott Dixon and their sub contractors and suppliers in order to resolve these items. 3.8 HQT have restructured their technical staff creating a new post of Facilities Manager. The post holder meets on a monthly basis with the Leisure Asset Manager for detailed discussions on the technical aspects of the venue. Minutes are prepared of all issues discussed at these meetings. The formal monthly client monitoring meeting includes a report on the outcomes and, where appropriate, will discuss any outstanding issues. This process has worked well for both parties. Officers consider that HQT are meeting the asset management criteria detailed within the Operator Agreement. 3.9 In addition to health and safety audits undertaken by the Client team, HQT have appointed external consultants to undertake a comprehensive review across all their venues of systems and structures. G Live achieved the highest score of any venue within the group (page 3 Appendix A Annexe 3). 3.10 Officers are in the process of commissioning a follow up facilities management maintenance review from Mace Macro Limited. The original report was comprehensive and generally favourable but identified some actions for HQT and the Council. The HSE considered the external report a positive management tool. A follow up report, some eighteen months after the original, will build on the positive base of that first report. Key performance indicators

3.11 The contract includes a mix of key performance indicators (KPI's) to ensure a sufficiently balanced programme of activities. The Council has the right to modify and change the KPI's during the term to incorporate such other factors as the Council may consider appropriate. 3.12 The annual report from HQT reviewing the performance in year three of the contract is at Appendix A. A summary sheet providing a quick overview of the KPI's is at page 10 (section 5) of the report. 3.13 The KPI targets were set before the building opened and, after three years of operation, there is now sufficient quality data to set realistic targets for the future. Officers have discussed this with HTQ and it is felt that whilst the existing range is an indicative measure of the performance of the venue, some of the original targets are overly optimistic. In addition, some of the targets would be best expressed as an acceptable range as opposed to a specific number target to recognise the inevitable fluctuations in product availability.

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Level of usage/balance of programme

3.14 HQT are required to provide 265 events, including 15 community events, per annum covering a wide programme across a range of genres. The contract specifies a range and mix of programming for the main hall. HQT has provided 234 shows/performances and has offered a further 38 events taking the total figure to 272. The venue is also used for internal events and rehearsals. 3.15 The Council has a right to comment on the programme and HQT is required to respond to any concerns. The programme is discussed at every monthly client monitoring meeting, but officers do not have any concerns. 3.16 The variance in the Rock, Pop, Folk, Jazz and World (seated) category is significant with a target of 84 against an actual of 34 performances (40 per cent). The performances will always be subject to the vagaries of touring and industry fluctuations of artists and product availability. The market place has changed partly due to the rise of TV talent shows and the impact of internet promotion. 3.17 In year three, main hall minimum attendance target was 153,194 the actual attendances totalled 139,199 (91 per cent). Last year the attendances totalled 136,021 (102 per cent).

Dark days 3.18 The number of days where the theatre did not have a performance (dark days) in the year was 116 as compared with the target of 80 and a last year figure of 115.

Subsidy 3.19 The subsidy for the second year of operation is £2.19 per head of population compared to £2.35 in 2012-13.

Financial performance 3.20 HQT have generated an operating profit of circa £138,906. This will result in a profit share rebate of circa £27,781. An overview of the G Live financial performance is at Appendix A Annexe 4.

Annual service review 3.21 The production of the annual service review was in line with the contract. The lead councillor and officers attended a service review meeting with senior officials of HQT.

Other health and safety incidents 3.22 There have been 31 minor accidents within the last 12 month period, only one of which was reportable under Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR). This is slightly up on last year but not viewed as an area for concern.

Customer survey 3.23 The customer satisfaction survey indicates customers are happy with the service at G Live with the average total meeting the KPI target of 90%, an increase of 2% on last year. Although improved on last year, there remains an issue with catering and hospitality. HQT has already implemented enhancements that will further improve this area. Details of the customer satisfaction information, and these catering and hospitality improvements, are set out on page 12 (section 7) of the annual report at Appendix A.

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4. Financial implications

4.1 The Council pays an annual subsidy of £328,595 in monthly instalments in arrears to HQT. All income and tariff receipts are the property of HQT. The contract provides for a profit sharing arrangement whereby if income exceeds the estimate in a given year then the Council is paid 20 per cent of the surplus. 4.2 HQT have generated an operating profit of circa £138,906. This will result in a profit share rebate of circa £27,781.

5. Legal implications

5.1 The Council has entered into a lease for ten years of the G Live building and an Operator Agreement with HQ Theatres Guildford Limited and QDOS Entertainment PLC as Guarantor dated 12 August 2011. There are no other legal implications outside of that agreement.

6. Human Resource implications

6.1 There are no human resource implications.

7. Areas for consideration

7.1 Councillors may wish to consider whether:-  The current range of KPI’s provide an indicative measure of a comprehensive and balanced programme  any KPI’s are a cause for concern  the current operation of the G Live contract meets their original expectations  whether the asset and surrounding areas are being kept in line with their original expectations.

8. Conclusion

8.1 The Council and HQT have continued to cooperate with the investigation into the tragic incident on 9 February 2013. 8.2 Officers believe that HTQ are delivering a high quality service that is largely meeting or exceeding the specification set. 8.3 G Live has not achieved all of the KPI’s set out for the contract; however, from an operational perspective it has been a very successful year with many high quality performances enjoyed by the public across a range of genres. The Council will receive a rebate against its management fee following the generation of a financial surplus. 8.4 It is clear that some original KPI targets were set optimistically. A joint review with HQT, using the three years of actual usage data, will result in better future KPI targets. Some performance targets should be expressed as a range rather than a single target number to recognise product availability fluctuations.

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9. Background Papers

None

10. Appendices

Appendix G Live Annual report 2013/14 Page 13 Annex 1 Marketing Report Page 27 Annex 2 Creative Learning Page 31 Annex 3 Buildings and Health & Safety Report Page 37 Annex 4 Financial Summary Page 41

Page 12 Agenda item number: 4 Appendix 1

G Live Annual Report 2013/2014 Contract Year Three

The Stranglers at G Live: 25th March 2014

Alvin Hargreaves: G Live Venue Director November 2014:

Page 13 Agenda item number: 4 Appendix 1 G Live Annual Report 2013/2014 Contract Year Three

Contents

1. Purpose of report 3 2. Introduction & Executive Summary 4 3. Programme Balance and Range - Main Hall 6 4. Studio and Reception Room Activity (non-Main Hall activity) 8 5. Creative Learning 9 6. The Operator Agreement and Key Performance Indicators 10 7. Financial Performance 11 8. Customer Satisfaction Information 12 9. Buildings and Health & Safety 14

Appendices

Marketing Annual Report at Annexe 1 Creative Learning Annual Report at Annexe 2 Buildings & Health & Safety Annual Report at Annexe 3 Annual Financial Summary at Annexe 4

Page 14 Agenda item number: 4 Appendix 1 G Live Annual Report 2013/2014 Contract Year Three

1. Purpose of report This report is a summary of G Live’s third full year of activity and sets out the Venue’s performance against the indicative performance indicators in the Operator Agreement between HQ Theatres & Hospitality (HQT&H) and Guildford Borough Council (GBC).

The reporting period is 1st October 2013 to 30th September 2014, inclusive.

The basis of the report is the performance, community and corporate events activity as reported to GBC at the Monthly Service Review Meetings (MSRM) held since the commencement of the contract.

G Live’s Director has presented monthly summary reports as follows;  The live programme, including final ticket sales  Financial Summary for the wider business  Creative Learning / Community activity  Marketing activity  A summary of future programme challenges and opportunities  Building related issues and health & safety

In addition, the ‘live’ programme, broken down by genre against the Operator Agreement KPI’s, has been reported at the quarterly review meetings between HQT&H and GBC. This process is concluded each year with the Annual Review Meeting and the presentation of this Annual Report to GBC’s Executive and Scrutiny Committees.

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2. Introduction & Executive Summary G Live’s third year of operation has seen a broad and heavy mix of light entertainment, music of all kinds, dance, opera, musicals, comedy, community events and corporate events hosted in the town centre Venue’s various spaces. In this year G Live has hosted more events than in previous years and with greater attendance. Nationally the Venue punches-above-its-weight and regularly features alongside major concert halls and arenas in tour advertising schedules in the Sunday newspapers; thus boosting the town’s profile as a cultural centre.

G Live presented a number of shows in year three considered to be of an ‘arena-scale’. These included, for example, Biffy Clyro, Paul Weller and M People. Events of this type help to demonstrate G Live’s increasing standing within the music and entertainment industry.

G Live is proving to be a remarkably flexible venue that is extremely capable of accommodating the varied needs of professional touring shows and local community organisations, as well as being a vital linchpin within Guildford’s business and leisure tourism offer.

The Venue’s management are delighted to announce a strong financial result for the third year of the contract with a post-subsidy profit that is over £100k greater than year two.

The final post-subsidy operating profit is c.£138,906. This will, therefore, invoke a profit share arrangement between HQT&H and GBC. The Council will receive a rebate of c.£27,781. The Finance section later in this report sets out the profit share and the subsidy per attendee/population figures.

In short, year three has seen G Live’s subsidy per attendee and subsidy per population reduce to their lowest levels at £2.16 and £2.19 respectively.

The Venue’s headline strategic marketing activity has been reported to the Monthly Service Review Meetings (MSRM) with Guildford Borough Council and the Marketing Annual Report is also attached to this report at Annexe 1.

Please note the following marketing statistics;  G Live’s customer database has grown by 24% in year three. (Year two was 26% up on year one)  Significant and ongoing investment has been put into the G Live website to improve functionality and content. The website saw over 3.2 million page views from over 300,000 site visitors  G Live has over 6,500 Twitter followers (up 64% on last year) and nearly 4,000 Facebook fans (up 52%)  G Live’s PR effort has produced over £140k of media coverage (advertising cost equivalent)  G Live now has 500 ‘Friends of G Live’ memberships

Community Partnerships;  G Live staff participated in many key local events including the Raft Race, Christmas Lights and the Pancake Race, etc  Through G Live’s wider community partnerships the Venue raised funds for our local charity, (Home Start Guildford), and our national charity, Great Ormond Street Hospital.

The wider community and creative learning engagement programme at G Live has again been a significant success with a full calendar of activities across all of the venue's spaces.

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The 2014 Creative Learning Summer Project was called “Creative Arts Week”. This innovative project for 51 young people included workshop sessions across Circus, Magic, Carnival, Radio, Stage Combat and Clowning and received great feedback from the participants and their families. Throughout the year the Creative Learning team delivered a huge number of projects, sessions, tours and Bellerby Studio Shows and supported an annual internship programme.

G Live’s conference and events activity has increased compared to year’s one & two. Year three included significant conferences for the National British Dyslexia Association, Phillips, Sauflon, Ericson, EA Games, Detica, CII, Sanofi, UNUM, Toast of Surrey, Guildford Means Business, Savilles and Barlow Robins.

This is in addition to the events and partnership working with our corporate sponsors. The events team have also worked hard to create a calendar of themed hospitality events that are open to the general public. These include an 80s extravaganza party called Tropicana Nights, regular Comedy Curry nights, lavish Christmas and New Year’s Eve parties, Murder Mystery Nights and the Beer Festival.

The narrative of the programming and community successes and challenges has been a story told through the Monthly Service Review Meetings and as such GBC and HQT&H have regularly discussed the relative progress against the Operator Agreement’s indicative KPI’s. A full breakdown of activity follows below.

Excellence in customer service is an on-going focus for the team at G Live and is embedded in the staff training and day-to-day operation of the Venue. G Live was again successful in winning the Experience Guildford Customer Services award for independent businesses.

The G Live annual customer satisfaction surveys support this with 90% of respondents rating relevant service areas as good, or very good.

G Live continues to support the Town Centre Business Improvement District and is critical to Guildford’s overall ‘complete destination’ approach to the leisure and business tourism offer.

The management team at G Live are very much aware of the Venue’s fit within the cultural landscape of Guildford. G Live’s diverse and predominantly one-nighter commercial programme is almost entirely complementary to the programmes of the Yvonne Arnaud Theatre and the Electric Theatre. The combined critical mass of cultural activity provided by Guildford’s principal venues is remarkable given the population of the borough. G Live, under HQT&H’s management looks forward to collaborating and cooperating with the town’s other venues to continue this richness of cultural provision.

The G Live Facilities and Buildings Manager has been working closely with GBC’s contract monitoring team on all matters concerning legislative compliance, maintenance and the continued efforts to resolve any longstanding building faults. Further details are included in the Buildings & Health & Safety Annual Report at Annexe 3.

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3. Programme Balance and Range - Main Hall The activity in G Live’s Main Hall is illustrated in the following table with further details below. The Operator Agreement’s indicative number of performances in each category represents a benchmark against which to measure the weight of G Live’s programme. However, it should be noted that many aspects of the Venue’s programme are subject to the availability of ‘product’ of a suitable scale and the alignment of the Venue’s diary (date availability) with the routing of national tours to peer venues of a similar size. Whilst G Live can influence product selection and position itself within the industry to programme the full range of genres and shows included in the agreement, it is generally unable to actually create new product from scratch and will, therefore, be subject to the vagaries of touring and industry fluctuations of artists/product availability. This issue isn’t unique to G Live.

Main Hall Combined October 2013 - September 2014

GBC Target % of GBC Categories Code Perfs /yr Actual Perfs Attend target Children's / Family Ents FAM 31 54 19,528 174 Classical (Orch/Opera/Big Bands) CLAS 18 21 13,454 117 Comedy / Spoken Word COM 45 33 21,713 73 Dance / Stage Musicals MUS 42 35 18,581 83 GPO GPO 4 - - 0 Others OTH 6 7 4,400 117 Rock & Pop standing RPS 14 9 11,391 64 Rock, Pop, Folk, Jazz & World – seated POP 84 34 22,149 40 Sport SPO 6 1 653 17 Community Events COMM 15 40 15,522 267 GBC KPI sub total (inc Community x15) 265 234 127,391 88 Get in / Get out / Production GET - 5 - Internal Events INT - 1 - Rehearsal REH - 2 100 sub total - 8 100 Conference CON - 12 3,720 Dining / Banquet DIN - 15 3,624 Exhibition EXH - 7 3,000 Hospitality Other HOSP - 4 1,364 sub total - 38 11,708 Total 265 280 139,199 106 Figure 1. Main Hall Programme

Programming Highlights Children's and Family Entertainment G Live presented a varied and heavy programme of family entertainment. The highlights included: Peppa Pig, Bananas in Pyjamas, The Gruffalo, Charlie and Lola, Scooby Doo, Science Museum Live, What the Ladybird Heard, Horrible Histories and Angelina Ballerina.

Classical The classical category includes big bands, opera and orchestral concerts. The Guildford International Concert Series featured the Royal Philharmonic Orchestra, the Czech National Symphony Orchestra,

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Moscow Philharmonic and the London Symphony Orchestra, among others, and saw ticket sales levels increase across the board from previous years.

Further highlights included: The HM Band of the Royal Marines, Nigel Kennedy, Four Seasons by Candlelight, London Festival Opera, BBC Concert Orchestra, Strauss Gala, Vivace Chorus and the Guildford Symphony Orchestra.

Comedy The comedy category includes spoken word, 'Audience With' events as well as stand-up comedy. Comedy is a strong genre for G Live with the number of events scheduled settling at between 30-35 per year. This feels about right in terms of product availability and the local demand for tickets. Highlights included: Chris Bonnington, Jennifer Saunders, Sandi Toksvig, An Audience with Sir Roger Moore, Paul Merton Impro Chums, Reginald D Hunter, Ardal O'Hanlon, Jason Manford, Sarah Millican, Alan Davies, Frank Skinner, Sir Ranulph Fiennes, Jimmy Carr and Michael Palin.

Dance and Staged Musicals The year started with the long running Mousetrap production and concluded with the more contemporary Avenue Q 'adult' puppet based musical. Dance highlights included visits to Guildford by the Richard Alston Dance Company, Siberian State Ballet Company, Anton du Beke, Ballet Boyz, Brendan Cole and the Moscow City Ballet Company.

Music G Live's third year was its best yet if the quality of the music presented is any guide. Stadium rockers Biffy Clyro shook the very foundations of the venue last autumn before the ‘modfather’ Paul Weller played his first local gig since the days of the old Civic. Jools Holland brought his Rhythm & Blues Orchestra and the list of original singer songwriters visiting was equally impressive – these included; Wilko Johnson, Kate Rusby, Bill Wyman, Newton Faulkner, Petula Clark, Robert Cray and Ian Anderson. Rock acts included; Black Star Riders, The Waterboys and The Stranglers with plenty of pop mixed in including; M People, Deacon Blue, Go West, Lisa Stansfield and Bellowhead. G Live also hosted 'Showcase Live' with Eagle Radio to give young local bands the opportunity to play on the Main Hall stage.

Community Events The Main Hall community events are a cornerstone of the venue's programme and last year was no exception. Community users of the venue included; Guildford YMCA, Guildford College, Hillsong Church, Godalming College, Primary Schools Concerts, Rotary Schools Concert, Italia Conti, Rock Challenge, Surrey Arts, Pond Meadow School, DAISY Disability Arts Festival, Church of Latter Day Saints, Surrey Schools Have Talent, Guildford High School Prize Giving, Surrey Music Hub, Summer Singing Sensation, Creative Arts Week, George Abbot School and Eagle Radio's Local Community Heroes.

Other highlights included the remarkable production of The Two Worlds of Charlie F. This was a unique, moving and highly effective piece of theatre performed by a cast of injured servicemen and professional actors.

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4. Bellerby Studio and Reception Room Activity (non-Main Hall activity)

Studio and Reception Room Activity October 2013 - September 2014 Target Categories Code Perfs /yr Studio Reception Combined Children's / Family Ents FAM 299 76 375 Classical CLAS 1 0 1 Comedy / Spoken Word COM 27 1 28 Community COMM 14 15 29 Dance DAN 98 2 100 Education EDUC 0 0 0 Get in / Get out / Prod / Reh GET 36 6 42 Internal Events INT 5 3 8 Music other MUSO 2 0 2 Others OTH 1 4 5 Sport SPO 0 0 0 Studio Theatre THE 5 0 5 Teen Show TEEN 0 0 0 sub total 488 107 595 Conference CON 5 88 93 Dining / Banquet DIN 15 1 16 Exhibition EXH 6 6 12 Hospitality Other HOSP 4 10 14 sub total 30 105 135 Total 156 518 212 730 Figure 2. Studio and Reception Room Activity

Bellerby Studio and Reception Room Summary  The Bellerby Studio and Reception Room continue to host a huge number of events including accessible family theatre shows, comedy, G Live’s Creative Company, community events, Surrey Arts events, schools’ events, parties, dance performances and workshops  The flexibility of these spaces also facilitate VIP receptions, conferences, exhibitions, dining, beer festivals, artist catering and awards ceremonies.

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5. Creative Learning Year three of G Live’s Creative Learning activity has seen a change of focus to a broader range of activities, reflecting the Main Hall programme, and offering participants the chance to experience different art forms and learn new skills. The aim is to continue to develop links with local arts organisations, raise the venue’s profile with schools and with families, and cultivate a programme of events designed to engage and entertain a variety of audiences.

Highlights included:  The Birth of Stars, G Live’s first commissioned piece, October 2013 (Emerging Artists)  Studio Shows Programme – Comedy Club 4 Kids, Humpty Dumpty, Pinocchio, Pop! Comedy Magic Show, Up Close Concert Series, Shakespeare’s Stories with the Globe, There’s a Monster in my Piano  Eagle Radio ‘Showcase Live’ Main Hall new bands event, October 2013  Family Days October 2013, February 2014 and April 2014  Open Rehearsals, Pre-show talks and orchestral involvement for the International Orchestral Series and Dance Programme  Sharings of new work from G Lives New Writers Group led by Mark Davies Markham  Magic, Music and Circus Skills workshops in February half term  Rock Challenge; large-scale schools’ dance performance competition  Surrey Music Hub Strings Day  Radio, Animation and Beatboxing Workshops during Easter holidays  ‘The Inside Joke’ Comedy event curated and produced by G Live Creative Company  Community Opera development with Surrey Arts  Guildford Fringe partnership events  Summer Singing Sensation

All in all, a large amount of work and a wide variation in reach, participants and nature of engagement. Further details are included in this report and attached in the Creative Learning Annual Report at Annexe 2.

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6. The Operator Agreement and Key Performance Indicators The following table summarises G Live activity against the indicative targets set in the Operator Agreement for the third year.

The Main Hall Live Programme (1) activity is an improvement of +6 shows on year two (year two was +8 on year one) but falls short of the 250 events target per year by 56. Total Main Hall Event Activity (4) exceeds the target of 265 events for the year by 15 when including Main Hall Community Events (2) and Main Hall Non-Performance Events (3).

Operator Agreement KPI’s Key Performance Indicators Contract Year Year 1 Year 2 Year 3 KPI Variance Notes Main Hall Live Excludes get ins, rehearsals and non - Programme. No. of performance events such as the beer festival, 1 Shows. Class-Sport 180 188 194 250 - 56 conferences.. etc Main Hall Community Large-scale Main Hall community events across 2 Events 60 41 40 15 25 a broad range of users and sectors Main Hall Non- Get ins, rehearsals & hospitality events in the 3 Performance Events 48 47 46 - 46 Main Hall Total Main Hall Event Includes Main Hall shows, events, rehearsals, 4 Activity 288 276 280 265 15 get-ins and non-performance events

5 Main Hall Attendance 130,574 136,021 139,199 153,194 - 13,995 Year 4 KPI 161,257 (y1 -20%, y2 -10%, y3 - 5%) Studio and Reception Rooms only. Excludes Non-Main Hall Seminar Rooms and Foyer events. KPI 156 with 6 Hospitality Events 147 101 135 125 10 20% tolerence Other Hospitality Ancillary spaces excluding Studio and Reception 7 Events 54 34 62 62 Rooms Creative Arts Week, Applied Arts Industry Week, Holiday skills' weeks, Writers Group, 8 Education Projects 218 85 215 100 115 Birth of Stars Seasonality / product availability. Quality over 9 Main Hall Dark Days 114 115 116 80 - 36 quantity as reported via the MSRM 10 Customer Service - KPI is rated 90% good / very good 10.1 Show / Event 92% 97% 90% 7% 10.2 Service / Staff 92% 92% 90% 2% 10.3 Facilities 95% 94% 90% 4% 10.4 Booking / Info 89% 90% 90% 0% 10.5 Catering / Hosp 72% 75% 90% -15% 10.6 All above combined 88% 90% 90% 0% Average across KPI’s Figure 3. Operator Agreement KPI’s

The KPI’s are a good ‘indicative’ measure of the G Live programme weight and balance but should be considered in the wider programming context of the venue and the fluctuations in industry-driven product supply. Inevitably there will be variances between the KPI’s and the actual number of events in any given year and for any given event type. These KPI's were set before the venue opened when the programme could only be estimated. Now that three years of KPI data is available the G Live management team and the Council's contract monitoring team will review the KPI's against the actual results to date. It may be prudent in future to present the KPI's as 'target ranges' for the programme to ensure their relevance going forward.

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The target for Main Hall Attendance (5) is 167,257 by Year 4 of the contract. The Year 3 target (when applying the 5% tolerance in the Operator Agreement) is 153,194. Attendance in the third year exceeds year two by 3,178 but falls short of the increased year three KPI target by 13,995. Attendance levels, as with the number of events in the year, are directly linked to relevant product availability as described earlier in this report.

The target of 125 events for Non-Main Hall Hospitality Events (6+7 combined) was exceeded by 72 events at 197.

Participation in the Education Projects (8) increased significantly from year two at 215 versus the target of 100. A new approach to the summer project "Creative Arts Week" worked extremely well and coupled with the Applied Arts Industry Week and holiday skills/activities weeks formed a really bespoke and relevant community engagement programme.

The number of Main Hall Dark Days (9) is consistent with both previous years and is higher than the KPI target due to very limited live-product availability in the shoulder/off-peaks months of January, July and August. This is a trend that will continue and is very much in line with similar peer group venues with heavy ‘one-nighter’ led programmes – many of which actually go completely dark throughout August. Venues with strong summer product tend to be either theatres with long running theatrical/musical productions, or seaside town/tourist destination venues with ‘summer seasons’.

Customer Service KPI’s (10), four of the five KPI’s have been exceeded which is a further improvement on last year. The score for ‘Hospitality/Catering’ has improved to 75% (rated good or very good) but remains an area where the management team are continuously exploring ways to refine menus and enhance the customer experience. The average overall score has improved from last year to 90% good/very good which is bang on the KPI target and is explored further in the Customer Services section below.

7. Financial Performance Please refer to the Annual Financial Summary at Annexe 4 for the details of the monthly and total annual financial performance at G Live. It should be noted that HQT&H’s statutory accounts are produced for the financial year period of April-March each year. The summary produced for this report is not audited and may therefore be subject to change.

G Live is delighted to announce a strong draft financial result for the third year of the contract that is a post-subsidy profit of over £100k greater than last year. The profit is c.£138,906. This will therefore invoke a profit share arrangement and the council will receive a rebate of c.£27,781.

Subsidy per attendee and per Guildford population Fixed GBC Subsidy £328,596 Guildford Populaton 137,200 Overall GBC Profit Subsidy / Subsidy / Attendance Profit Share Net Subsidy Attend Population Year 1 130,574 0 0 £328,596 £2.52 £2.40 Year 2 136,021 34,235 6,847 £321,749 £2.37 £2.35 Year 3 139,199 138,906 27,781 £300,815 £2.16 £2.19 The table above sets out the profit share and the subsidy per attendee/population figures.

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Year three has seen G Live’s subsidy per attendee and subsidy per population reduce to their lowest levels at £2.16 and £2.19 respectively. HQT&H have continued to invest heavily in capital projects that will further refine the Venue’s future operation, service, safety and revenue generating opportunities for coming years.

8. Customer Satisfaction Information For more information please refer to the Marketing Annual Report at Annexe 1. The Operator Agreement requires customer surveys of satisfaction twice in every contract year – each survey to be not less than 250 attendees sampled across at least five events. By mutual agreement with GBC this requirement has been varied from two smaller surveys to one rather more extensive and far reaching survey. The annual customer satisfaction survey questionnaire was sent to 38,000 customers on the mailing list. There were 1,802 responses which represents 5% response rate.

The survey is to rate each of the criteria as poor, fair, good or very good. The KPI target is set for more than 90% of all responses to be good or very good across the areas in the table below;

The headline results in relation to the Operator Agreement KPIs are: KPI – target 90%: Good or Very Good 2013/14 2012/13 Result Result 1 The enjoyment / quality of the event/performance 97% 92% 2 Staff service 92% 92% 3 Facilities at the venue 94% 95% 4 Ease of booking/ access to information 90% 89% 5 Quality of catering and hospitality 75% 72% Average Total 90% 88%

The venue’s own on-going feedback survey from diners for the Mezzanine Restaurant show;  100% rated food as good, or very good  95% would return, and 94% would recommend

G Live scored a pleasing 96% in June’s Mystery Shopper survey, and won Experience Guildford’s Customer Service Award (Independent lifestyle and leisure category) this October for the second year in a row. Judging was through a combination of votes and a Mystery shop, in which G Live scored 100%.

G Live has continued to invest in the development of the Mezzanine Restaurant, Café Bar and bars. The Mezzanine Restaurant has a new menu that aims to broaden its appeal across a greater cross- section of the audience - early indications from customer feedback and occupancy levels are extremely positive.

The Cafe Bar has benefited from new barrier planters, LED lighting, giant live show images and a new contemporary menu - all of which are refining the venue's daytime and pre-show personality. HQT&H, in partnership with GBC and Hogs Back Brewery, have created a new bespoke craft beer bar in the lower foyer which will broaden the range of products available and increase the venue's overall bar capacity. Additional cellar services have also been installed in the main bar to increase the bar’s overall draught beer capacity. These measures will also further improve customer service and reduce waiting times during busy events.

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In addition to the above G Live continues with;  Customer feedback forms (available from all Front of House areas)  A verbal comments log kept at the Ticket Desk and Stage Door  An internal log of compliments and complaints

All of the above feeds into the multi-departmental Service Improvement Group which meets monthly. Any actions resulting from this are, in turn, escalated to the Senior Management Team for monitoring, review and implementation of any changes required to policy.

G Live has a full training plan in place supported locally and through group-investment in strategic customer service delivery partners. Significant resources are directed to embedding customer service standards within G Live’s operation. Customer care is a thread that runs through the organisation from induction to the development of individual staff development plans and the briefing and training of volunteers.

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9. Buildings and Health & Safety G Live’s Director has tabled monthly Buildings and H&S Reports to the Monthly Service Review Meetings (MSRM). The Buildings and Health & Safety Annual Report is attached at Annexe 3.

Facilities Summary G Live’s management have reviewed the staffing structure in the ‘buildings and technical’ areas of the venue’s operation following the departure of the previous Technical & Buildings Manager. A new Facilities and Buildings Manager post was created with the support of a new Technical Manager post. The Facilities and Buildings Manager has been working closely and effectively with the Council’s contract monitoring team. G Live is a complex venue with many bespoke systems that require specialist support and maintenance. There remain a small number of longstanding legacy faults and issues from the build/commissioning phase of the venue. HQT&H and GBC continue to work closely to resolve these issues but, the local venue’s Management Team are dependent on GBC’s leadership on these matters due to the Council’s contractual leverage with the original contractors, suppliers and consultants.

Health & Safety Summary G Live and HQT&H recently appointed consultants RB Health & Safety Ltd who have undertaken a comprehensive review of the Group’s H&S systems and structures. A full audit was undertaken at each of the HQT&H Venues, including new Fire Risk Assessments, as set out in Annex 3 Buildings and Health & Safety Report. G Live achieved the highest score of any Venue in the Group through this auditing process and sets the benchmark for good practice in the Group.

G Live remains committed to promoting a safety focused culture in the venue. The Health & Safety responsibilities are clearly defined with open and accessible communication channels. All policies, procedures and risk assessments are readily available to staff via an intranet based register of files and documents. The implementation of a safety culture is supported by a comprehensive programme of inductions, training, briefings, meetings, appraisal and review. RB Health & Safety Ltd have also been contracted to provide much of the H&S training across all HQT&H venues – this feeds into G Live’s full training plan and training needs assessment.

There are specific monthly Health and Safety meetings with departmental representatives from Technical, Administration, Front of House, Creative Learning, Marketing, Hospitality and Catering. These monthly meetings are then discussed at Senior Management level, where the minutes of the working group are looked at to ensure compliance with the G Live Health and Safety Policy, as well as raising any significant or strategic Health and Safety matters. The monthly Health and Safety meeting also feeds into a quarterly Health and Safety report to HQT&H Head Office.

The tragic accident on 9th February 2013 that resulted in the deaths of two members of the visiting Fishermen’s Friends’ company has had a profound and lasting impact on the G Live team. The circumstances surrounding the cause of the accident are still subject to the on-going Surrey Police and HSE investigation. G Live and GBC continue to assist with the investigation as appropriate and have completed the project to replace the loading bay door with a new installation.

Page 26 Agenda item number: 4 Appendix 2

G Live Marketing Report 2013 – 2014

Annexe 1 Marketing Report 2013/2014

1. Overview G Live is now firmly on the map. Nationally the Venue regularly features alongside major concert halls and arenas in the Sunday newspapers, boosting the town’s profile as a cultural centre. Locally, brand awareness has grown significantly and, as the Venue moves into its fourth year, it feels very well embedded into the community gaining increasing recognition for the breadth of its programme, and its contribution to the vibrancy of the town’s attractions.

Audience numbers continue to grow (the venue now has 74,359 customer accounts), and trends show increasing numbers of repeat visits, as well as further penetration of the catchment as the venue continues to draw from towns and communities along the A3 spine, both north and south. This increase, alongside a significant growth in memberships this year, demonstrates patron loyalty and a high level of customer satisfaction with the programme and facilities.

G Live’s ticketed events, conferencing and events business continues to be strong and the venue is a regular participator within the local business community through networking and events, including Experience Guildford. On a national platform it attends key conferencing and event exhibitions and forums, such as C & IT, which showcased the venue to 50 key national event booking agencies and associations.

2. Shows and attendance Show-wise, comedy and rock n roll continue to be strong sellers. Highlights throughout the year include Paul Weller (who sold out in 13 minutes), M People, Biffy Clyro, Jools Holland, Newton Faulkner, Wilko Johnson, Jennifer Saunders, Frank Skinner, Sarah Millican and Jimmy Carr. Family shows featured strongly throughout the year, and these, combined with the work of the Creative Learning Department, continue to support the development of new audiences. G Live hosted snooker for the first time in January and this also attracted significantly higher than normal first time attenders to the Venue.

The Guildford International Concert Season goes from strength to strength. With its world- class orchestras and soloists, the 2013/2014 season showed a 31% increase in box office revenue from the previous year and increased the total audience by 400. Highlights included two Royal Philharmonic Orchestra performances which both attracted audiences in excess of 800. Classical audiences also flocked to the visit by violinist, Nigel Kennedy, who played to a sell-out crowd in November. Total attendance in 2013/2014 was 139,199.

3. Hospitality & Events G Live’s regular ticketed hospitality events, such as the beer festival, monthly Hellfire Comedy nights, Tropicana Nights, Christmas and New Year’s Eve parties are now well established and very well attended.

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G Live Marketing Report 2013 – 2014

G Live’s in house catering team and the venue’s high production values (theming, professional staging/lighting/sound) provide a significant competitive advantage over other more ‘hotel-based’ functions in the town.

The marketing of G Live as a conference and hospitality venue is supported by investment in the venue’s website, (including search engine optimisation and refreshed content for conference and event organisers). G Live also works with Experience Guildford, local businesses and national trade organisations to promote the venue (and the town) via business to business events and industry expos, such and the C&IT exhibition.

Considerable work has been spent on refining the ‘offer’, branding identity and ambiance of the Café. This has included softening the environment with lighting, plants and visuals to better reflect the theatricality of the venue and offering an improved pre-show menu. Alongside this there has been a drive to encourage businesses to utilise the space for daytime meetings.

4. Headline marketing activity

Mailing list database The database has grown by 24% in the last 12 months and represents a highly significant and cost effective marketing tool, particularly for e-communications. The Venue has developed a strong CRM (Customer Relationship Management) programme, ensuring customers receive timely and appropriate communication about areas of interest to them. 72% of customers cite emails as the initial prompt for their booking.

“I love that you now email me before a show goes on sale so that I can secure my tickets early, before they sell out.” Customer feedback on Customer Satisfaction Survey 2014

Website Website development this year has seen the introduction of a new ‘Just Announced’ tab to highlight new shows on sale as well as improved functionality and content which ensures SEO (search engine optimisation) is maximised. The 12 month period recorded strong traffic with 551,137 sessions, 307,543 users and 3,262,905 page views. On average 65% of customers book online, the highest of all Venues within the HQT&H Group.

Social media Increased focus on social media has seen considerable growth and engagement over the last few months. Twitter followers have increased to 6,576 and Facebook fans to 3,897, representing an increase of 64% and 52% respectively in the last 12 months.

Public Relations G Live continues to obtain positive weekly coverage in all the regional media with show reviews, interviews, features and PR stories. Coverage this year has an ACE (advertising cost equivalent) of £140,000. The venue plays a central role in all of the key local community events including the Raft Race, Christmas Light Switch On, Pancake Race and GuilFest. Notable positive PR this year includes an Experience

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G Live Marketing Report 2013 – 2014 Guildford Customer Service Award, a Tripadvisor Certificate of Excellence and PR around the venue’s charitable fundraising for Great Ormond Street Hospital.

Friends of G Live Membership has grown by 85% during 2013/2014 with the Venue shortly to celebrate its 500th Friend. A recent survey of Friends showed that show discounts and fee-free booking are the most popular benefits, but as regular visitors Friends also enjoy a close association with the Venue.

Print Distribution The Venue has a dedicated part-time print distribution officer who regularly drops the season brochure and show print to 365 outlets throughout the catchment area. This not only helps promote the venue to new audiences, but is a very successful way of engaging with local communities who appreciate meeting a face behind the brand. A total of 210,000 season brochures were distributed throughout the year to a variety of outlets.

Corporate Development The Venue enjoys mutually beneficial partnerships with a variety of corporate partners including Azamara Club Cruises, Charles Russell, Curchods, the Mandolay Hotel, Seymours Estate Agency, Vines BMW, Motion and Busylizzy. Successful media contra partnerships with Eagle Radio and Surrey Life magazine help raise the profile of the Venue across the county and into Hampshire.

Community Partnership

In addition to its fundraising for Great Ormond Street Hospital, G Live has supported local charity, Home Start Guildford as its Charity of the Year throughout 2013. It has also donated raffle tickets to 200 local charities and schools in support of their fundraising initiatives.

5. Customer Satisfaction The annual customer satisfaction survey questionnaire was sent to 38,000 customers on the mailing list. There were 1,802 responses which represents 5% response rate.

Results The headline results in relation to the Operator Agreement KPIs are:

KPI – target 90% Good or Very Good Satisfaction 2012/13 Result Result 1 The enjoyment / quality of the event/performance 97% 92% 2 Staff service 92% 92% 3 Facilities at the venue 94% 95% 4 Ease of booking/ access to information 90% 89% 5 Quality of catering and hospitality 75% 72% Average Total 90% 88%

The Venue’s own on-going feedback survey from diners for the Mezzanine Restaurant show:  89% booked their table online  95% felt the booking process is easy  100% found restaurant easy to find

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G Live Marketing Report 2013 – 2014  89% felt welcomed when they arrived  100% rated food as good, or very good  95% felt menu was well laid out and easy to read  95% would return, and 94% would recommend

G Live scored a pleasing 96% in June’s Mystery Shopper survey, and won Experience Guildford’s Customer Service Award (Independent lifestyle and leisure category) this October for the second year in a row. Judging was through a combination of votes and a Mystery shop, in which G Live scored 100%.

Tripadvisor venue reviews continue to be positive with G Live currently listed at 39/198 attractions in Surrey, and 6/24 attractions in Guildford.

Fran Everist, Marketing & Corporate Development Manager 22 October 2014

Page 30 Agenda item number: 4 Appendix 3 G Live Creative Learning 2013/2014

Annexe 2 Creative Learning 2013/2014

Overview Year three of G Live’s Creative Learning activity has seen a change in focus to a broader range of activities, reflecting the Main Hall programme, and offering participants the chance to experience different art forms and learn new skills. The team continue to develop links with local arts organisations, raise the Venue’s profile with schools and with families, and cultivate a programme of events designed to engage and entertain a variety of audiences.

Creative Learning Strands – Year Three COMMUNITY EVENTS: During Year Three, G Live has continued to be well utilised and popular with the community and a broad variety of groups and organisations use the building. Some work has continued and grown (eg. large scale church services, community awards ceremonies, college graduations) and we have welcomed local partners such as Surrey Music Hub into the space for the first time. G Live has continued to raise its presence within the local community.

We have worked closely with both Surrey Arts and Guildford’s Arts Officer, to welcome families into the building as part of Big Draw and the National Family Arts Festival in October. We’ve built family days into our regular half term activities and we are working with youth, choral and music groups on projects such as Creative Careers Day and Magna Carta Opera Project. Alongside delivering activities and welcoming groups into the performance spaces G Live has once again expanded its presence within the community, bringing Surrey Music Hub events in house as well as continuing to host meetings of the Surrey 11-19 partnership (music and drama) and Surrey Dance Partnership.

Creative Learning also worked in collaboration to assist in the delivery of DAiSY Fest, a two day disability arts festival held on 3rd & 4th June. Under the artistic direction of John Kelly, the festival was programmed and managed by DAiSY and Surrey Arts – we hope to host the event again in future years. ‘I found the day incredibly insightful and especially enjoyed the explorative spoken word work. Daisyfest appears to be playing a pivotal role in the regional landscape of disability arts. It’s visibility and depth of content appears to be having a far reaching effect, beyond the geographical boundaries of Surrey.’ Dulcie Alexander, Relationship Manager, Arts Council South East

WORKSHOPS: Zumba and Swing Dance classes have continued to be well attended by adults on a Monday Evening, and G Live’s in House Writers Workshop, led by professional playwright Mark Davies Markham has

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been routinely sold out and developed new work with writers from across Surrey. Busy Lizzy Early Years classes are now in the building six days a week and continue to offer local parents high quality early years dance/craft/wellbeing activities at G Live, allowing us to welcome parents and young children into the building on a regular basis.

The reworking of the holiday programmes and the diverse engagement offer has widened our access and resulted in a more robust offer for children, families and young people. 2013/14 seen has seen us offering opportunities both in and out of school.

We collaborated with Surrey Dance Collective to offer a specialist workshop for A Level Dance/Arts students from Howard of Effingham and Christ's College schools, welcomed music students from Surrey University for a tour and a seminar on “the business of the arts”, supporting a project of cultural offers, sketching opportunities for arts students and the Russian Ballet and welcomed Rock Challenge – an international dance performance competition that encourages participants to experience a natural performing high without drugs/ alcohol, to the Venue for their first ever Surrey- based competition.

Pre-show talks are now a regular feature of the G Live programme. Royal Philharmonic Orchestra, IMG and Richard Alston Dance have all been strong supporters of these added value activities, and we continue brokering these relationships with new and returning companies joining us in 2014/2015.

SIGNIFICANT PROJECTS: G Live has continued developing its programme of sustainable projects for Guildford, focusing on work with potential for collaboration with industry professionals, local talent and schools.

Birth of Stars, 6 month project culminating October 2013, 59 participants and performers, all ages. The Dance Movement joined us for eight days developing a new piece of contemporary multimedia dance performance in the studio space, before an open dress rehearsal and four audience performances. Live stream of the performance here: http://thebirthofstars.co.uk/2013/10/08/our-livestream-page/ We welcomed a range of young people and parents to the building who would not normally be involved in contemporary dance work, and some of the families commented that they had not been to G Live before. Creative processes within the building are a very valuable addition to any arts venue and we will seek to continue this engagement with new work in the future.

Thank you so much for yesterday, it was absolutely stunning, I hope you’re feeling very proud! I was particularly struck by how seamlessly all of the elements worked together, it was truly a collaboration and I think you have obviously communicated your vision with clarity and inspiration. Fiona Millward - Co Director Independent Dance on Birth of Stars

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The project broke down barriers and built friendships and there was such a sense of family. Kevin Owen, Christ’s College Guildford on Birth of Stars

Half term workshops and Easter workshops A new workshop programme was devised to reflect our main house entertainment remit and has been very successful and well attended.

G Live Creative Company G Live Creative Company (formerly Young Producers) continues to engage with young people 14-25, providing regular mentoring, a platform to create work and develop as emerging artists and working with the group to create a programme of events designed to appeal to this age range. This is an invaluable opportunity for the group to develop vital project design and management skills within a real context. The core group offer has 15 places, with ‘satellite’ opportunities for other young people to work on projects with the group. Participants are interviewed and selected by the group and mentored by the Creative Learning Manager of G Live and the Senior Producer of Eagle Extra.

The Inside Joke, Creative Company, April 2014. G Live’s Creative Company ran their very first comedy night as part of the Big Laughs, Small Space comedy festival. They invited a wide range of acts to perform, controlling the entire process from booking through to event management.

I’m really glad I joined Young Producers. Together we have produced three events this year, from a charity fashion show to a careers day, which has allowed me to pick up a huge range of skills as well as having a great time. I would definitely recommend Young Producers to anyone with an interest in the arts! Julia, Young Producer aged 15

Applied Industry Work Experience, July 2013. 15 young people aged 14-17 yrs, five days. Applied Industry Work Experience gave 15 young people from schools across Surrey the opportunity to form a model company and produce a piece of creative work in Fringe theatre circumstances, mentored by G Live’s staff. The feedback from the group was immensely positive, and teachers value the opportunity as an experience of real industry for their students.

‘Thank you so much for the amazing experience that you gave me during my week of work experience. I learnt so much about the process of putting on a production in a theatre and I feel that now I will be able to appreciate the work that goes into a performance a lot more. I was very happy with the work we produced throughout the week and the outcome was, in my opinion, very successful. I hope you enjoyed working with me as much as I enjoyed working with you.’

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G Live Creative Arts Week. August 2014. A departure from our previous programme, Creative Arts Week set out to offer young people an experience not available to them anywhere else locally; taster activities offered in magic, circus, radio, street dance, stage combat, carnival drumming, costume and parade performance as part of a week-long ‘Carnival theme’

Headlines of the work: - A unique opportunity for children and young people to participate in a holiday course and a range of activities not offered elsewhere in Guildford - A fun and sociable holiday activity - Attracted a number of ‘non-performing’ children, whose confidence and self-esteem were boosted by the experience. “She had a fantastic week with you all. I'll definitely look out for similar events in the future. Thanks for a fun packed week [my child] has had a blast!” - Project Parent.

STUDIO SHOWS: The Studio at G Live has continued to be a hub for friendly and accessible children’s performances, a studio space for local community groups and a Venue for young upcoming work. Highlights include; Comedy Club for Kids, Borka (Opera for families), and our partnership project with the Globe ‘Shakespeare’s Stories’.

EMERGING ARTISTS, CAREERS AND SKILLS: Aside from the regular work experience programme (see projects above) G Live continues to offer practical experience, knowledge and advice to young people developing as creative individuals, students in the arts and young upcoming companies.

There are clear strands of activity forming in this area:

- Open rehearsals Offering access to orchestral rehearsals has been a clear success this year, with RPO very pleased to welcome schools in to watch their sessions. These activities are an eye opening experience for young people, offering them unique and powerful access to classical music of the highest order and prompting many questions, thoughts and learning points following visits. We continue to look for ways to deepen the value and impact of this experience.

- Careers Advice Days Through delivery of Surrey Arts Careers days, SATRO speed dating careers events, and mock interview activities G Live is offering an important provision explaining options and pathways to work in the arts. This offer solidifies relationships with schools in the area and helps us to broadly share knowledge and expertise within the G Live team.

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- Building tours GSA, Surrey University, local schools, colleges and nurseries have all visited G Live in 13-14 for bespoke tours tailored to the needs of the group. These often integrate with careers advice/ experience and end with a round table discussion about the Venue. We are pleased to maintain this supported opportunity for students and children to visit and become familiar with our work and spaces, and look forward to continuing these relationships.

- Placements Holly McCulloch’s University of Surrey placement was very successful, offering her experience with both Marketing and Creative Learning. She was a valued member of the team and continues to be associated with G Live, as we continue to work with the University of Surrey Placement plan.

NUMBERS 2013- 2014

Individuals (number of people who 15,522 Main Hall Community have taken part a community based 5,672 Creative Learning event): 21,194 Total

Sessions (number of opportunities to 243 take part): Participations (number of things 7,214 done):

PARTNER ORGANISATIONS IN YEAR 3 ACM, Arts Emergency, National Autistic Society, Busy Lizzy, Cranleigh School, Cranmore School, Eagle Radio, Electric Theatre, English Touring Opera, George Abbot School, Gordon’s School, Gosden House School, GSA, Guildford Borough Council, Guildford Choral Society, Guildford College, Guildford International Music Festival, Guildford Library, Halow, Hillsong, Howard of Effingham School, PPA, Positive Step Nursery, Powerhouse Theatre Company, Priorsfield School, Rock Challenge, Rotary Club of Guildford, Royal Philharmonic Orchestra, SATRO, Surrey Learning Consortium, South Hill Park Arts Centre, St George’s School Ascot, StopGAP Dance Company, Sure Start, Surrey 11-19 Partnership, Surrey Arts, Surrey County Council, Surrey Dance Collective, Surrey Parks, Surrey Swing, University of Surrey, Unsted Park School, Volunteer Centre Guildford, Albert and Friends Instant Circus, Patrick Bailey, Comedy Club 4 Kids, G Live Creative Company, Gordon School, Claire Harvey from The River People, Christian Lee, Mark Davies Markham, Maxwell Somerset, Southern Pro Musica, 11-19 Partnership, Farnham Heath End School, Kings College Guildford, Nescot College Epsom, The Ridgeway Community School and Weydon Secondary Academy, Shawfield Primary School and Waverley Abbey Junior School, DAiSY Fest

Jo Wright Creative Learning Manager, October 2014.

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G Live Buildings and Health & Safety Report 2013/2014

Annexe 3 Buildings and Health & Safety Report 2013/2014

1. Overview The third year of operation for G Live has provided the management and staff the opportunity to build on the foundations that have been laid and refine procedures. There has been a focus on developing a strong health and Safety culture with regular external and internal audits and communication with staff. The building itself has moved on from snagging and into a period of ongoing maintenance. There are however several areas where further work is needed, or where there are still issues to be resolved. HQT&H are working closely with the Council’s contract monitoring team but some matters are longstanding and relate back to the construction/commissioning phase of the building.

Good progress has been made with the emergency lighting system, which will hopefully be fully resolved by the end of the year (2014). Issues surrounding the natural ventilation system roof lights/vents and the LCD screen totems are ongoing.

There has been a change in personnel; the previous Technical & Buildings Manager left G Live in April 2014 and has been replaced by Charlotte Sleven in a slightly different capacity as the Facilities and Buildings Manager. G Live has also recruited a Technical Manager, reporting to Charlotte but with specific responsibility for the shows and technical requirements of the venue on a day to day basis. 2. The Building In the past year the building has continued to build its reputation as a multi-functional arts/entertainment venue, with many different formats for shows and events being successfully presented in the main hall and the studio space, as well as, multiple meetings and conferences in the Glass Room and Seminar spaces. The key ongoing issues are the operation of the natural ventilation system in the front foyers (roof lights/vents), the emergency lighting system, the display totems.

With regard to the loading bay door accident in February 2013, this is still under investigation by Surrey Police and the HSE. HQT&H, G Live’s management team and GBC continue to support this process in any way possible.

2.1. Building Faults LCD Screen Totems: G Live has a network of internal and external totem signs containing LCD screens designed to support the Venue’s marketing and communications effort. Whilst the external units are failing to cope with the demands of the range of British weather/environmental conditions, the internal units are also regularly failing. These are extensive, complex and longstanding issues with the system and it remains highly unreliable some three years after the original installation. Kevin Hopkins from GBC’s contract monitoring team is talking to his colleagues with a view to instructing an independent specialist to investigate the hardware, installation and software problems / remedial options. It is

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G Live Buildings and Health & Safety Report 2013/2014 apparent that there are fundamental design/capability flaws with the system as it stands. There remains the question as to whether it is, or ever has been, fit for purpose.

Emergency Lighting: Various operational idiosyncrasies with the venues back-up emergency lighting have been managed through additional risk assessment, careful monitoring and supporting safety procedures at the venue in recent years. Whilst far from ideal, this is not considered to be a safety issue for the customers, staff or users of the venue. Good progress has been made over the last 12 months but this is also a complex issue dating back to day one. It has been confirmed by the principal electrical contractor (DES) that there was an installation wiring issue in the system which caused faults and led to the failure of certain components. HQT&H has previously paid for parts to be replaced and will be seeking to recover some of the unavoidable costs that can be directly attributed to the wiring faults within the system. There are currently outstanding wiring issues which GBC have instructed DES to rectify after which they will issue a report and revised site plans.

Natural Ventilation Roof Lights/Vents: Various motors/actuators that control the automated opening of roof lights/vents have failed during the ‘normal’ operation of the building management system. The failures were due to the original configuration of the system and the ‘conflicting’ parameters within which it was set to operate. GBC has commissioned contractors to replace failed components and to reconfigure the system to a more sustainable operation going forward. There remain a number of failed parts and GBC have asked HQT&H to liaise with two of the original contractors to obtain quotes to replace failed parts and identify parts that may be reaching the end of their operation lifecycle. This system will be HQT&H’s responsibility for maintenance once this process of renewal has been completed.

3. Health & Safety G Live Management has continued to embed the Health and Safety culture at the venue and broaden the communication of this culture to staff and visitors alike. This is to ensure the successful operation of G Live to the highest standards of service and safety.

G Live was awarded the Group Health and Safety Award at the annual HQT&H Staff Summit on 2nd October 2014. This was a great achievement and reward for the effort put in the by the whole team to ensure Health and Safety is a business priority. G Live’s managers are tasked to ensure that this Health and Safety culture is delivered to all staff within their departments, as well as through the vetting of outside companies and contractors.

Health and Safety Structure: HQT&H have a Group-level Health and Safety meeting that takes place every quarter with the attendance of all Venues. G Live also provides a quarterly report to the retained Health and Satefy consultants, RB H&S Ltd, to give an overview of Health and Safety activity and to support the audits they carry out. G Live also has a minuted local Health and Safety meeting, chaired by the Facilities and Buildings manager, to discuss and resolve any G Live specific Health and Safety matters. In turn these minutes/matters are discussed at the next Senior Management Team meeting where higher level decisions, funding support, or management intervention may be required. This structure ensures that Health and Safety is discussed regularly and at all levels.

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G Live Buildings and Health & Safety Report 2013/2014

3.1. Training G Live continues to provide training opportunities for all staff, including staff development and statutory training. Included in this are monthly induction sessions for all staff, to ensure there is a basic understanding of the company, along with basic health and safety training including COSHH Training, Manual Handling Training, Noise at Work and Child Protection. This is then followed up by further departmental training as required.

G Live continues to provide training to staff through outside companies in areas such as SIA Training and First Aid at Work. G Live completes Fire Evacuation drills as well as programmed evacuations with full audience participation in conjunction with the local branch of Rock Choir; this is great practical training for staff.

3.2. Inspections/Audits Health and Safety Audits: G Live is audited annually with further follow-up quarterly inspections by our external consultants RB H&S Ltd. The annual audit took place on 28th May 2014. The formal report and feedback from the audit was extremely positive about the management and culture in evidence at G Live – in fact G Live is cited as setting the benchmark for safety across all of the HQT&H Venues in the Group.

The quarterly audit took place on 22nd September 2014 and involved a venue inspection and exploration into the following areas:  Policy and Procedures  Leadership and Administration  Planned Inspections and Maintenance. The subsequent report and feedback was again very positive. Throughout these processes G Live’s management team found the audits to be helpful and took externally verified reassurance that G Live remains well managed from a safety, compliance and maintenance perspective.

Fire Risk Assessment: This took place on the 17th June 2014. The overall assessment was very good due to the nature and age of the building and the housekeeping practices. There were some minor procedural and house- keeping recommendations made which have been actioned.

The Mace Macro report from 2013 has been reviewed by the Facilities and Buildings Manager and GBC’s contract monitoring team. A further review of compliance has been arranged for November.

G Live takes a proactive approach to reactive and planned maintenance. In addition to the audits and Health and Safety management, a Maintenance Planner is in place and regularly updated to ensure that all servicing and legislative requirements are fulfilled. For example, G Live also has a schedule of electrical PAT testing for all portable appliances within the building. Quarterly building inspections are completed and logged as well as monthly building checks which are carried out by each department and maintenance issues logged. In addition, daily building checks are carried out by the Duty Manager to ensure that all areas are safe, clean and tidy for our acts and customers.

3.3. Accidents (Contract Year Three: 2013/ 2014)

RIDDOR – 1 (reportable only because a member of public was taken directly to hospital for minor treatment after a fall)

Accidents – 31

Page 39 This page is intentionally left blank Annual Financial Summary 2013 - 2014

YEAR 2013/14 OPERATIONS TOTAL OCTOBER 2013 NOVEMBER 2013 DECEMBER 2013 JANUARY 2014 FEBRUARY 2014 MARCH 2014 APRIL 2014 MAY 2014 JUNE 2014 JULY 2014 AUGUST 2014 SEPTEMBER 2014 YEAR 3 £ £ £ £ £ £ £ £ £ £ £ £ £

REVENUES

THEATRE SALES Theatre Rentals 35,712 21,665 22,593 9,315 17,670 48,930 19,242 25,598 13,935 23,970 4,955 11,789 255,372 Ticket Sales 181,150 270,946 162,207 102,559 142,533 139,575 103,573 149,475 66,896 100,103 25,628 50,584 1,495,230 216,861 292,610 184,801 111,874 160,203 188,504 122,815 175,072 80,831 124,073 30,583 62,373 1,750,602

THEATRE COSTS Artists Fees 142,227 208,570 118,921 83,519 97,434 113,520 79,297 110,759 44,948 67,535 19,607 37,136 1,123,473 Royalties 12,908 10,722 5,382 - 4,377 3,011 1,468 5,535 3,601 8,267 - - 55,271 PRS 1,004 3,329 952 133 1,471 4,853 1,661 1,081 947 122 155 594 16,303 Credit Card Commission 2,592 2,754 2,844 2,799 1,909 2,102 1,729 1,769 2,466 1,836 2,024 2,781 27,604 158,730 225,374 128,099 86,451 105,192 123,486 84,155 119,144 51,962 77,759 21,786 40,511 1,222,651

Page 41 Page THEATRE GROSS PROFIT 58,131 67,236 56,702 25,423 55,011 65,018 38,660 55,928 28,869 46,314 8,797 21,862 527,951 GP % 26.8% 23.0% 30.7% 22.7% 34.3% 34.5% 31.5% 31.9% 35.7% 37.3% 28.8% 35.1% 30.2%

TOTAL OTHER INCOME 44,417 47,627 33,512 31,861 29,984 52,012 27,631 34,073 22,652 29,934 16,530 26,282 396,514

TOTAL HOSPITALITY CONTRIBUTION 20,204 33,881 44,617 12,117 18,016 18,539 17,834 18,759 4,774 (3,990) (9,491) 5,675 180,935

TOTAL REVENUES 122,752 148,743 134,831 69,401 103,012 135,570 84,124 108,760 56,295 72,258 15,835 53,819 1,105,400

THEATRE OVERHEADS

TOTAL STAFFING COSTS 44,593 49,889 43,821 49,514 49,428 59,511 56,079 51,132 49,823 52,506 49,006 48,457 603,759

TOTAL ADMINISTRATIVE COSTS 43,095 38,111 55,299 36,182 37,427 61,658 67,687 30,555 37,535 37,008 68,466 44,277 557,300

TOTAL CAPEX 7,421 - 3,920 1,127 33 - 808 - - - - 4,752 18,061

TOTAL UTILITIES 9,534 11,683 11,045 9,546 9,605 10,358 7,925 7,940 10,077 10,565 7,627 10,065 115,970

TOTAL THEATRE OVERHEADS 104,644 99,683 114,085 96,369 96,493 131,527 132,499 89,627 97,435 100,079 125,099 107,551 1,295,090

SURPLUS / (DEFICIT) 18,109 49,060 20,746 (26,968) 6,519 4,043 (48,375) 19,133 (41,139) (27,821) (109,263) (53,732) (189,690)

SUBSIDY 27,383 27,383 27,383 27,383 27,383 27,383 27,383 27,383 27,383 27,383 27,383 27,383 328,596

Total profit/(loss) 45,492 76,443 48,129 415 33,902 31,426 (20,992) 46,516 (13,757) (438) (81,881) (26,349) 138,906

Council Share - 20% 9,098 15,289 9,626 83 6,780 6,285 (4,198) 9,303 (2,751) (88) (16,376) (5,270) 27,781 G Live Share - 80% 36,393 61,155 38,503 332 27,121 25,139 (16,794) 37,213 (11,005) (350) (65,504) (21,079) 111,123 45,492 76,443 48,129 415 33,902 31,424 (20,992) 46,516 (13,757) (438) (81,881) (26,349) 138,904 Agenda item number: 4 Appendix 5

Based on Contract Year (Not Financial Year) This page is intentionally left blank Agenda item number: 5

Customer and Community Scrutiny Report Report of Executive Head of Environment Author: Jonathan Sewell Tel: 01483 444729 Email: [email protected] Lead Councillor responsible: Terence Patrick Tel: 01483 222534 Email: [email protected] Date: 10 March 2015

Operation of Leisure Management Contract

Executive Summary The Council entered into a 10 year Leisure Partnership Agreement (LPA) with Greenwich Leisure Ltd (GLL) with effect from 1 November 2011, to deliver leisure services throughout the borough at Guildford Spectrum, Guildford Lido and Ash Manor Sports Centre. GLL has subcontracted elements of the service to Wealden Leisure Limited trading as Freedom Leisure (FL). A very detailed and complex contractual agreement, the Leisure Partnership Agreement (LPA), is in place between GLL and the Council. GLL and FL have a contractual agreement that mirrors the contents of the LPA. The LPA is a substantial document which includes as one of its component elements a detailed service specification specific to each site covering all aspects of service delivery e.g. opening and closing hours, water and air temperatures, maintenance regimes, health and safety compliance requirements, staffing levels and qualifications. It also sets out the objectives for the service provision. This report reviews the third contract period from 1 April 2013 to 31 March 2014. The performance of the contractor has been monitored across the sites over a number of criteria. Operationally the performance of the contractor has been acceptable during the period. FL made a shortfall of £59,072 against their management fee bid. This shortfall does not affect the council’s payment from FL, it does mean there is no additional payment to be made to the council. Some key council projects at Spectrum are underway for steelwork repairs, the replacement Combined Heat and Power engine (CHP) and the progressive roof replacement. Phase one of the steel repairs in the Pool Hall is underway with an appointed contractor. The roof project and the CHP are currently being developed through to tender stage with the help of specialist advisors. The roof replacement project is particularly complex but work is planned to commence in April 2016. Previously some councillors have expressed concern that the level of detail available for them to scrutinise is insufficient to meet their expectations. The size and complexity of this contract is challenging cover in an accessible form. The contract has now been

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operating for over three years and the preparation of an annual report template by a small task group of councillors may be beneficial in the scrutiny process. Recommendation to Customer and Community Scrutiny Committee That the committee considers and comments on:- (1) whether, in light of the report, it wishes to comment the performance of the leisure operator (2) whether, in the light of the report, it wishes to make any comments relating to the focus of the service objectives in item 3.10 (3) whether it wishes to set up a task group to look at the template for the annual report and the catering offer (4) whether any of the issues raised in the operators annual report give cause for concern or particular comment.

Reasons for Recommendation: (1) The available supporting evidence indicates Freedom Leisure is largely meeting the expectations within the Leisure Partnership Agreement. (2) The service objectives must be considered annually to ensure they remain consistent with the council’s objectives and priorities.

1. Purpose of Report

1.1 To provide an overview of performance of the leisure contractor operating Guildford Spectrum, Guildford Lido and Ash Manor Sports Centre for the contract year period 1 April 2013 to 31 March 2014. 1.2 To provide councillors with an opportunity to comment on the current and future service provision and/or the monitoring arrangements for the contract. 1.3 To give a brief update on key council projects affecting the venue.

2. Strategic Priorities

2.1 The provision of the services detailed within this report support the Corporate Plan in the following areas:-  Society – through promoting physical activities and contributing to public health  Economy - by attracting visitors to the borough and making a Guildford a more attractive place to live in. The facilities offer a range of employment opportunities  Sustainability – energy consumption at Guildford Spectrum is significant portion of the council’s energy demands.

2.2 This report supports the values for our residents by monitoring transparently the quality and effectiveness of the partnership arrangements between the Council and its contractor for the operation of the leisure facilities.

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3. Background

3.1 With the assistance of specialist advisers, and in conjunction with Woking Borough Council, the Council went through a competitive dialogue procurement process to select the most suitable leisure operator. This culminated in the Council entering into a 10 year Leisure Partnership Agreement (LPA) with Greenwich Leisure Ltd (GLL) with effect from 1 November 2011, to deliver leisure services throughout the borough based on facilities at Guildford Spectrum, Guildford Lido and Ash Manor Sports Centre. 3.2 GLL has subcontracted elements of the service to Wealdon Leisure Limited trading as Freedom Leisure (FL). FL has entered in to a collateral warranty in favour of the Council. Both of these companies are industrial provident societies and therefore enjoy charitable status. As a registered charity, FL receives a mandatory 80 per cent relief on National Non Domestic Rates and all sporting activities are exempt from VAT. 3.3 In broad terms FL provide the operational services and GLL contribute to the strategic direction and have the legal right to take over the operation of the contract should the performance/status of FL require it. 3.4 A very detailed and complex contractual agreement, the Leisure Partnership Agreement (LPA), is in place between GLL and the Council. GLL and FL have a contractual agreement that mirrors the contents of the LPA. 3.5 The LPA is a substantial document which includes as one of its component elements a detailed service specification specific to each site covering all aspects of service delivery e.g. opening and closing hours, water and air temperatures, maintenance regimes, health and safety compliance requirements, staffing levels and qualifications. A summary of the contract monitoring arrangements is set out in Appendix A to this report. 3.6 The Council transferred the risks associated with maintaining, repairing and replacing the plant and machinery to the leisure operator. The Council retained responsibility for repairing and replacing the building fabric of each of the venues although the leisure operator is responsible for its maintenance. 3.7 The Council has a small number of outstanding planned asset improvements from the 2011-12 15 year plan. The remaining items are extremely complex and have proved difficult to complete. The key items relate to an enhanced Combined Heat and Power scheme and a replacement lift and controls. 3.8 The Leisure Client team in the Environment Service monitor the contract. Monitoring includes regular formal meetings, daily discussions with key FL personnel and regular visits to site, specific walk rounds to monitor service delivery, assessment of information provided by FL, regular use of the facilities as a customer, and formal and informal discussion with customers, partners and FL staff. 3.9 There is a formal client monitoring meeting every other month considering a standard agenda covering financial performance, technical issues, quality of service including customer comments, marketing development, and health and safety. The Lead Councillor for Rural Affairs attends this meeting.

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3.10 The LPA set out the following objectives for the service provision:-  to improve the health and well being of their communities through increased participation  to use sport and leisure to bring communities together  to enable access to services by specific groups with identified needs  to encourage and provide affordable and sustainable local facilities and services  to explore partnerships with other organisations where these will benefit the community  to work with clubs and voluntary organisations in the borough to develop their activities and skill levels  to encourage investment in the facilities to maintain and enhance the quality of service  to bear in mind the rights, needs and aspirations of facility users and staff  to demonstrate value for money and continuous improvement  to recognise and maximise commercial opportunities in the facilities  to improve the financial 'bottom line' of the Council. 3.11 Councillors have previously expressed frustration about the format of the report and its ease of scrutiny. Providing a level of information that meets the need for scrutiny without overwhelming detail has proved to be challenging.

4. Performance of the Contractor 4.1 A copy of the Freedom Leisure annual report is at Appendix B. The operator prepares an annual report to set out their performance within the Guildford contract. Attendances 4.2 In the contract year 1 April 2013 to 31 March 2014, attendances are marginally up against the equivalent period the previous year for the overall contract. Attendances were slightly down at Spectrum, predominately attributed to the three week ice closure for maintenance, however this was offset by increased attendances at the Lido. Venue Actual 2013-14 Bid Last year Spectrum 1,652,428 1,665,162 1,650,664 Ash 84,990 92,171 97,473 Lido 95,104 69,861 59,472 Total 1,832,522 1,827,194 1,807,609 Table 4.2.1 showing 2013-14 attendance comparison against bid and 2012-13 Customer survey & feedback 4.3 Compared to 2012-13, the number of written customer complaints is almost identical at 210. FL routinely monitor and score feedback on a month to month basis and the customer satisfaction rating shows fluctuations across individual

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facilities however the overall rating for Spectrum has dropped from 6.43 to 5.95. The breakdown of the individual units is shown in Appendix B under section 6 Marketing and Programming. 4.4 Comments have been made about the quality of the catering offer at Guildford Spectrum. FL brought in a new catering company “Host” to replace Compass when Compass wished to exit the contract. Initially the quality of the catering offer appeared to improve however there have been a number of concerns from the public about the quality of the service. FL have been working with Host to try and resolve these issues. Catering is an intrinsic part of the customer experience and this could be a suitable topic for a task group of councillors to consider what catering offer they would like to see at the venue. 4.5 FL are moving to an alternative assessment process called “Net Promotor Score System”. This system is used by a number of operators within the industry and is intended to give a more well-rounded view of the service rather than predominately focussing on the negative experiences of the customer. Programming and pricing 4.6 There has been no significant change in programming and price increases are generally in line with inflation. Some prices have remained static or decreased where demand or competition has indicated this is the most sensible approach. Asset Management 4.7 FL has maintained the plant in accordance with the Council’s specification including completion of their scheduled plant and equipment replacements for the period. A detailed breakdown of their asset management projects for 2013-14 is in their annual report (Appendix B). 4.8 Major investment items undertaken during this contract year include:-  energy efficient ice plant without R22 refrigerant  the installation of four flumes plus some interactive children’s toys in the paddling pool at the Lido  Bowl lane safety improvements The Council provided FL with the initial capital funding for the installation of the Lido slide. Health and safety 4.9 Management of health and safety has been in accordance with the expectations contained within the specification. There is an improvement in the number of accidents on site in comparison to the previous equivalent period but the ratio of accidents per 1,000 visits remains broadly consistent. The accident ratio is well inside the expected level of incidents for the industry. Customer Total visitors Accidents per Period accidents in period 1,000 visits April 2012 to March 2013 1,439 1,807,609 0.80 April 2013 to March 2014 1,337 1,832,522 0.73 Table 4.8.1 comparing total accident and attendances across the Guildford contract

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4.10 Accidents at Guildford Lido and Ash Manor are minimal by comparison due to the nature of the facilities. The number of accidents at these sites has not shown any significant change compared to the previous period. Staff 4.11 Operationally the numbers of staff deployed have matched the specification requirements. 4.12 As with any business there has been staff turnover in the period however there has been no significant change in the overall number of staff employed. Quality Assurance 4.13 QUEST, the quality assurance scheme for leisure, was restructured and it was agreed that the facilities would not be assessed until 2013-14. The new QUEST structure is different and is a three stage process. All three sites have been successfully assessed as part of the first stage of the QUEST scheme. Due to its specialist nature, it is unlikely that the Lido would get any further positive benefits from moving to the next stage of the scheme.

5. Major Council projects 5.1 Major projects planned to commence in 2014-15 include a revised Combined Heat and Power offering (CHP) at Spectrum and steelwork repairs within the Pools Hall. These projects will be managed by the Council working in partnership with FL. FL will lead on the replacement of two public lifts at Spectrum, although this project will be funded by the Council. 5.2 The Spectrum steelwork repairs have been split into phases with the initial phase dealing with the columns that have suffered the most corrosion in the Pools Hall. Specialist consultants have confirmed that whilst the roof is safe these repairs should be progressed before the roof replacement works that are planned to commence during 2016-17. The steelwork repairs are planned to be underway by the date of this committee meeting. These works are taking place overnight to avoid customer disruption and this first phase is scheduled to complete in April 2015. The anticipated costs of the detailed condition assessments and phase one of the steel repairs is currently estimated at £225,000. 5.3 Further phases of steel repair will take place either in advance or as part of the closure for the roof replacement. The steel repairs would have the potential to lengthen the pool closure for the roof replacement. Officers will, where appropriate, give consideration to undertaking these repairs at the most appropriate time to provide a balance between minimising the period of closure and avoiding disrupting customers use of the facilities. Due to the nature of the repair, some work will only be able to be completed during the closure for roof replacement. 5.4 A specialist consultant has been engaged to assist in developing the scheme for the roof replacement programme for Spectrum. This project has been in the provisional capital programme for some time and the cost of the project is anticipated to be around £4m excluding revenue impact. Guildford Spectrum has suffered from water ingress since it was opened in 1993. In order for the building to be watertight and ensure the long term future of the venue the roof will be progressively replaced. This is a very complex and time consuming project that

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may affect the operation of Guildford Spectrum over an estimated eighteen month period. 5.5 Spectrum effectively has five separate portions of roof. This work will require individual facilities to close as the roof directly overhead is replaced. Officers will work with the Freedom Leisure and the appointed contractors to manage these temporary closures safely and effectively. Temporary roofing solutions for particular areas will be considered but due to the complex nature of the building and the service provided to customers, it is unlikely these can be a widespread solution. 5.6 Unfortunately, until a successful contractor is appointed it is impossible to accurately assess the impact on the operation and therefore the impact of the customer and revenue. 5.7 Work has commenced on the preparation of the tender for this work. In addition to replacing the roof further works have also been identified to improve the current arrangements for air handling within the Pools Hall. This will complement the steel repairs and improve the environment for customers and staff as well as reducing future corrosion in this area. 5.8 The opportunities for improving energy and water efficiency are also being investigated. These schemes are more challenging to retrofit to an existing complex site however potential further enhancements have been identified. 5.9 The existing Combined Heat and Power (CHP) engine, which uses gas to generate heat and electricity, is at the end of its useful life. The existing unit was not the most beneficial size and therefore had some areas where it failed to achieve optimum performance. This project has an approved budget of £1.2m. Officers have sought advice from a number of expert sources and although the most effective specification is not yet finalised the likely solution is well within the approved budget.

6. Financial Implications

6.1 FL paid the Council an averaged management fee by direct debit for operating the leisure facilities of £915,375 for 2013-14, which is subject to Retail Price Index variation over the ten year life of the contract. 6.2 If FL exceeds the financial performance detailed within their bid, 100 per cent of any surplus comes to the Council with 50 per cent of the surplus ring-fenced for spending on the three venues in the contract and 50 per cent allocated by the Council for any purpose of its choosing. Conversely, should the operator fail to achieve the targeted level of net income, they would still be responsible to pay the full contracted sum to the Council. 6.3 FL did not make a surplus in the period (1 April 2013 to 31 March 2014) and was £59,072 under their bid target. FL generated more income than their bid target but their expenditure was also higher. This shortfall has no effect on the Council’s management fee. 6.4 Officers receive information on financial performance and service delivery on a regular basis. The format of the information has developed over the period of the

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contract however, the timeliness of some of this information still does not meet Council expectations and officers continue to work closely with FL to improve this situation. 6.5 FL financial statements for each site comparing actual performance against the original bid proposal are at Appendix C. FL use a different chart of accounts to the one used in the bid process. This makes direct comparisons difficult in some specific areas. 6.6 A graph showing the bid proposal management fee during the ten year life of the contract is at Appendix D. 6.7 The council and FL share utility risks for electricity and gas. FL is responsible for usage and the council is responsible for tariff changes. The operator has a degree of stability for utility costs throughout the contract and this resulted in a better management fee for the council. Carbon Reduction Charge (CRC), or any other carbon taxation scheme, is solely the responsibility of FL. 6.8 In 2013-14 the council’s utility costs amounted to:- 2013-14 Council cost (£) FL utility cost (£) FL CRC cost (£) Electricity 135,048 507,689 Gas 36,0660 153,681 Total 171,114 661,370 66,451 Table 6.8.1 detailing the spend on Gas and Electricity for 2013-14 6.9 Officers work with FL closely on energy management schemes, e.g. the new CHP scheme, due to the energy demands of the facilities. Details of FL energy management schemes are in the FL Annual report (Appendix B Section 12). 6.10 There are no other financial implications outside the constraints of the contractual relationship between the Council and the leisure operator.

7. Legal Implications

7.1 There are no legal implications outside the existing contractual obligations.

8. Human Resource Implications

8.1 There are no HR implications arising from this report.

9. Suggested Items for Scrutiny Committee Councillors to consider

9.1 Councillors may wish to consider whether:-  Levels of cleanliness, complaints, accidents and the customer satisfaction survey data etc. provide any cause for concern  the level of detail in the annual report is sufficient and whether setting up a small group of councillors to agree a template for annual monitoring reports in future years would be beneficial

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 the service objectives detailed in item 3.10 of this report remain appropriate  additional information on key secondary services such as catering is desirable and whether a task group of councillors reviewing the catering offer at Guildford Spectrum would be beneficial.

10. Conclusion

10.1 The leisure management operator is currently complying with the contractual agreement standards set out in the detailed service specification. 10.2 There continues to be investment in the facilities by both the operator and the council to ensure their sustainability. 10.3 The timeliness and content of some of the monitoring information will continue to be developed. It may be advantageous to instigate a small task group with the design of an annual monitoring template specifically for councillor scrutiny. 10.4 The feedback from the customers is generally positive however, there are opportunities for further improvements. It may be beneficial to consider setting a small task group of councillors to review the catering offer at Guildford Spectrum. 10.5 The content of the objectives set out in the LPA are broad and remain relevant however they should be considered annually to ensure they remain relevant to the Council's priorities and objectives.

11. Background Papers None

12. Appendices Appendix A – Summary monitoring arrangements Appendix B – Freedom Leisure Guildford Annual Report 2013-14 Appendix C – Accounting statements for Spectrum, Lido and Ash Appendix D – Graph showing the leisure contract management fee over the ten year life of the contract

I confirm that I have consulted with relevant Officers, where appropriate, in the following services:

Financial Services YES / NO Name of Officer Contacted:

Legal and Democratic Services YES / NO Name of Officer Contacted:

Human Resources YES / NO Name of Officer Contacted:

PR and Marketing YES / NO Name of Officer Contacted:

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Appendix A – Summary monitoring arrangements

i. The Council has a leisure partnership agreement (LPA) with GLL. This is a legal contract which contains a detailed specification of all aspects of the service and its delivery, details of the submitted successful bid including method statements, financial and staffing breakdowns, leases for the venues, building condition surveys, asset registers, performance management system, TUPE info etc. ii. Councillors consider an annual report on performance of the leisure operator as part of the regular committee cycle. iii. The leisure operator is required to submit business plans, marketing plans, sports development plans, environmental plans etc each year for agreement by the Council’s client officer. iv. There is a performance monitoring system in place with self-monitoring reports, which include the possibility of fining the leisure operator should standards not meet expectation. For continued poor performance, there is a mechanism within the contract to extricate the Council from it. v. The Council has the ability to change the specification and there is a mechanism that can be applied to calculate the financial implications of a change. vi. The Council approves the core prices (i.e. non-commercial) for the three sites as per the previous arrangements prior to transfer. vii. The Council client officer is responsible for developing the partnership with the leisure operator and responsible for monitoring day to day service undertaking visits to review performance, discussing investment proposals and developing projects of mutual benefit. The client officer can investigate and resolve any specific issues from unhappy customers/groups etc. viii. A client monitoring group meets every other month with a set agenda covering financial performance, technical, quality, event, customer comments etc. which the lead councillor attends. ix. Accounts/management info is submitted throughout the year for monitoring purposes and 100 per cent of any surplus over the management fee passed to the Council at contract year-end. x. All capital investment proposals have to be agreed through the client monitoring group prior to their implementation.

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FREEDOM LEISURE ANNUAL REPORT

April 2013 – March 2014

AUTHOR: STEVE MAY

AREA MANAGER

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Contents

1. Summary ...... 3 2. Purpose of report ...... 4 3. Introduction ...... 5 4. Objectives of the service ...... 6 5. Achievements ...... 7 6. Marketing and Programming ...... 17 7. Community / Sports Development ...... 20 8. Human Resources ...... 21 9. Asset Management – completed and planned ...... 22 10. Health and Safety ...... 23 11. Environmental Improvements and future plans ...... 24 12. Future development plans ...... 31

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1. Summary

1.1 The 2nd full financial year with Freedom Leisure managing the leisure services for Guildford Borough Council has gone smoothly without any problems or concerns for the council or for the users of the facilities.

The site teams have worked hard to ensure the continued running of the facilities to the high standards the local residents and users have become accustomed too.

It has been a year of change for parts of the service with last year’s investment now being seen by the customers and further investment into the facilities being made. The catering contract has changed hands with the intention of the new provider offering a more rounded menu at more affordable prices for the customer. The Lido slides were completed and got a trial opening ready for the full season of 2014 and the Ice rink refrigeration plant was replaced.

The leisure facilities in Guildford are an essential service for the local community and Freedom Leisure has and will continue to work with the council to integrate more of those not using the services as the contract develops

Note: Throughout the report you will see notes section in italic’s just like this one. These have been added in December 2014 to give further information on the progress of the contract during the time period of April 2014 to December 2014. This is only summary information and the next Annual Report will give detail behind these.

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2. Purpose of Report & Recommendation to the Council

2.1 The purpose of this report is to review the performance of Freedom Leisure in managing the Spectrum Leisure Complex, Lido and Ash Manor Sports Centre against the targets and standards set out in the Leisure Partnership Agreement.

This report is for the period of April 2013 to March 2014 and is the second full contract year report but the third report in all due to the contract starting mid financial year.

2.2 That the Council approve that

(1) the objectives set out in the leisure partnership agreement are being achieved

(2) a balanced service is being offered across the facilities meeting community and commercial needs

(3) the overall performance of the partnership with Freedom Leisure is in line with the council’s objectives

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3. Introduction

3.1 Greenwich Leisure Limited (GLL) and Guildford Borough Council entered into a 10 year Leisure Partnership Agreement (LPA) on the 1st November 2011. GLL subcontracted the service to Freedom Leisure Limited (FL) meaning that FL provides the operational services with GLL available for assistance if required.

3.2 Within this contract area FL directly employ over 100 contracted staff and a further 500 casual and coaching staff along with providing facilities for many other businesses, clubs and social groups to operate.

3.3 The Facilities that Freedom Leisure operates on behalf of Guildford Borough Council are:

The Spectrum Leisure Complex which consists of:

 A 32-lane tenpin bowling centre  Olympic ice rink with a spectator capacity of over 2000.  Four swimming pools: a leisure pool, teaching pool, competition pool and a 3 board diving pool  An outdoor athletics track with football pitch  A 88 station gym & spa  Three multi-purpose sports halls including a ten court badminton main arena  “Rockbox” climbing facility  A variety of restaurants including Costa and Wimpy  A children's softplay area  A crèche  Two sports related retail outlets  Two squash courts

The Lido which consists of:

 A 50 metre swimming pool, paddling pool and 4 acres of surrounding gardens and now 3 water slides.  A specialised heavy weights gym

Ash Manor Sports Centre which consists of:

 A 42 station gym  Two multiuse sports halls  A 3G all weather pitch  A studio

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4. Objectives of the Service

4.1 The following are the objectives as set out in the Leisure Partnership Agreement:

4.1.1 To improve the health and well being of their communities through increased participation

4.1.2 To use sport and leisure to bring communities together

4.1.3 To enable access to services by specific groups with identified needs

4.1.4 To encourage and provide affordable and sustainable local facilities and services

4.1.5 To explore partnerships with other organisations where these will benefit the community

4.1.6 To work with clubs and voluntary organisations in the borough to develop their activities and skill levels

4.1.7 To encourage investment in the facilities to maintain and enhance the quality of service

4.1.8 To bear in mind the rights, needs and aspirations of facility users and staff

4.1.9 To demonstrate value for money and continuous improvement

4.1.10 To recognise and maximise commercial opportunities in the facilities

4.1.11 To improve the financial 'bottom line' of the Council.

Each year these are revisited with the Council officers and adjusted or prioritised to ensure the council’s current agenda is being worked towards and Key Development targets are being met. In this period 4.1.7 investment was at the forefront with £1.1Million pounds being spent on two keys area’s; the Lido Slide development and the Ice refrigeration plant.

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5. Achievements

The highlights from this contract year are:

5.1 Rockbox Opens

This also appeared in last year’s report as it opened with only a few days of the previous contract year left to run.

Following much research into squash usage and competition in the local area it was decided to transform one of the squash courts into a Climbing facility at the Spectrum. Spectrum joined forces with one of Freedom Leisure’s partners – High Sports to bring the first Rockbox to the UK. Rockbox is a climbing facility that offers a light hearted, fun approach to beginners climbing with a lot of emphasis on children / young adults and brings a new party product to Spectrums thriving party trade.

The “Rockbox” has now been open for a year and has been hugely successful seeing 8428 visits in its first year, of which 53% were open sessions, 25% were birthday parties, and the rest were a mix of schools, youth groups and corporate events. 3% of all attendees had a register disability, and Rockbox invested in further specialist equipment to assist disabled users maximise their use of the facility. As well as this the Rockbox franchise brings in additional £18000 (profit) per annum to the Spectrum

Linking this new product back to the objectives set out in the LPA these works have helped achieve:

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 4.1.3 To enable access to services by specific groups with identified needs. By offering a new product new customer will visit spectrum and participate in leisure activity.  4.1.5 To explore partnerships with other organisations where these will benefit the community. The investment into this facility has come from an outside source. Hi Sports are a partner of Freedom Leisure.  4.1.7 To encourage investment in the facilities to maintain and enhance the quality of service.  4.1.8 To bear in mind the rights, needs and aspirations of facility users and staff. Family groups are always looking for new and inspiring new activities to get involved in. Rockbox compliments the family offering.

5.2 Ice Plant Replacement The Ice Refrigeration plant was running using a Gas called R22. This gas is classed as an Ozone depleting gas and back in 2000 was given a final end date for use of 2015. Following this advice the technical team and consultants looked at the options and a complete replacement was the safest and most environmentally friendly way forward. Although the existing plant could have been modified to use a different gas the efficiency of the unit would have been compromised. The new plant was then designed and a tender process went ahead. During a three week closedown of this area the old plant was removed and the new plant installed at a cost of £600,000. The plant has been running successfully since installation with very few interruptions. Unfortunately such expenditure has not had a noticeable impact to our customers as it was purely a back of house (plant room) project and the only benefit to the customers is a consistent ice rink with less down time or wet periods.

It did however give the opportunity to repaint the ice and change the Logo’s and give the area a general refresh whilst it was closed.

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5.3 The 1st Surrey Half Marathon. Working with All About Triathlons, Guildford Borough Council and Woking Borough Council we hosted the start and finish of the 1st ever closed road Surrey half marathon going from the Spectrum to Woking Leisure Centre and back. The event saw over 5000 participants and went off without any problems. Planning has already started on the reverse or alternate route for next year with Woking Leisure Centre hosting the start and finish. Many Council employees took up the baton and got involved and the Spectrum and Woking gym teams set up training plans for many who wanted to be able to complete their 1st ever half marathon.

Note: The route has now been finalised for 2015 and runs from Woking LC but not Spectrum this year due to some technical difficulties in crossing the A3. Freedom Leisure are still an integral part of the event being one of the sponsors, hosts the start and finish at Woking LC and still running the training schemes in the lead up to the event. Spectrum has included the Guildford Borough Council team in the Spectrum training plan free of charge as a way of encouraging a healthier lifestyle for council employees.

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5.4 The Lido’s 80th Birthday celebrations

Over 500 people turned out to celebrate this event. The event was of a 1930’s theme with people coming in fancy dress and enjoying a dip in the pool before the band struck up. The success of the event has shown the potential the Lido has to host future events of this type which are already being planned.

Note: The 2015 season did host some great events, taking the lead from the above mention birthday celebrations several small parties took place and the Aquathon series was developed to cater for 600 people, doubling the numbers from the previous year. The first ever cinema event at the Lido was also hosted with sell out numbers (1000 people) coming to watch Grease.

5.5 The Lido Slide installation and paddling pool improvements

The Lido slide and paddling pool development took place this year. Freedom Marketing were always cautious about the delivery date of this project with many unknown factors to be considered and it ended up taking the better part of the 2013 summer season to complete the works.

The contractor – Hippo leisure found an underwater stream under the proposed site of the slide structure which had to be diverted and added 8 weeks to the project but apart from that it all went to plan opening just in time for the end of

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the school summer holidays giving the children of Guildford 2 weeks to test it out.

Note: This season saw the slides successfully in operation with 15014 slide tickets being sold in this season.

5.6 National Lifeguarding Award Lifeguard teams from across the country entered this event to see who had the strongest lifeguarding teams and Guildford won showing the dedication towards training that Freedom Leisure has and the high calibre of the staff teams involved. This is an award we aim to keep moving forward.

5.7 Spectrums 21st Birthday celebrations 21 years – Spectrum celebrated this with a giant cake and tea with the Mayor for the few staff that has been around for the full 21 years!

5.8 Ash Manor Sports Centre Gym celebrated its 10th year. Whilst not quite the same as the 80 years the Lido is boasting or the 21 years of Spectrum it is still a significant birthday and one celebrated with a fun day for the local community seeing several hundred participants visit the site

5.9 Events Spectrum is well known as an events venue. Primarily it attracts sport events, but also large clothing sales and business events take place too. In the year 2013/14 there was:  73 days of Arena based events (51 events as some were two or three day events).  6 Major Athletics events (Regional or above)  2 Major running events  26 School Sports Days  38 league football matches  37 number of Swimming Gala’s  The Ice Panto (6 performances)  52 Ice Hockey matches

Linking this operational improvement back to the objectives set out in the LPA these works have helped achieve:

 4.1.2 To use sport and leisure to bring communities together. Having high profile athletes using the facilities will help motivate the local community and increase participation.

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5.6 The Performance Indicators being monitored against are as follows:

5.6.1 FINANCE:

Following an audit and review of the contract accounts an additional surplus payment was made to the council of £25,499 +vat for the 2011/12 and 2012/13. For this contract year 2013/14, there is no surplus payment over the management fee. The contract was £59,072 below the bid target for 2013/14. In addition to this we spent £840,165 on capital improvements to the facilities, an overspend of £536,265 against the annual contractual sum of £303,900. The detail behind this is explained in Appendix 2 and a summary is below.

Spectrum 2013/14 2012/13 Variance Income £8,538,517 £8,566,685 -£28,168 Expenditure £7,797,287 £7,840,746 -£43,459 Management Fee and repayments* £1,071,212 £1,086,743 -£15,531 Net Deficit -£329,981 -£360,804 £30,823 *This line incorporates repayments for Council Investments and Salix investments

This may initially appear a disappointing result however it is actually consistent with the expectations contained with the FL bid proposal in the LPA. Guildford Spectrum has benefitted from some substantial investment during this period, details of this is are in the asset management section of this report.

There is a 10 year asset management plan in place. This asset plan is reviewed each year and items prioritised according to current condition and need. Some items last longer than originally anticipated whereas others deteriorate more quickly and have to be brought forward. The impact of the investment early in the contract allows the benefits to be achieved earlier resulting in a progressively more positive financial position later in the contract term.

Ash Summary 2013/14 2012/13 Variance Income £373,576 £377,802 -£4,226 Expenditure £295,038 £333,404 -£38,366 Management Fee £40,362 £39,485 £877 Net Surplus £38,176 £4,913 £33,263

Ash Manor Sport’s Centre had a good year with a small surplus being shown. The facility had a very stable year in all areas but did have to work very hard to recover from the collapse of Aldershot town who booked the pitch intensively.

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Lido 2013/14 2012/13 Variance Income £335,490 £292,187 £43,303 Expenditure £513,524 £433,530 £79,994 - - Management Fee £161,111 £152,882 -£8,229 Net Surplus -£16,923 £11,539 -£28,462

The Lido has also posted a small surplus compared to bid.

The financial figures whilst not achieving a surplus still show an improved bottom line to Guildford Borough Council. The Management Fee of £915,375 is paid regardless of the financial position and therefore achieves objective 4.1.11 To improve the financial 'bottom line' of the Council.

5.6.2 ATTENDANCE:

Attendance 2013/14 2012/13 Variance Spectrum 1652428 1681201 -4% Ash 84990 85105 0% Lido 95104 65311 46% Contract 1832522 1831617 0%

Total contract attendance is showing a very small growth in attendance. Considering the ice rink closure for 3 weeks at Spectrum this is a very positive outcome. (Lost attendance from Ice closure is estimated at 25000)

Objective 4.1.1To improve the health and well being of their communities through increased participation has been achieved and help validate some of the other objectives.

5.6.3 AVERAGE SPEND PER USER

Average spend per user 2013/14 2012/13 Spectrum 5.17 5.09 Ash 4.39 4.43 Lido 3.52 4.47 Contract 5.05 5.04

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This KPI shows how much money our customers spend per visit on activities. It does not give a clear picture on secondary spend such as catering. As you can see there is not a significant change from last year.

5.6.4 STAFF COST VS INCOME

Staff Cost V Income 2013/14 2012/13 Spectrum 48% 47% Ash 43% 47% Lido 54% 57% Contract 47% 47%

47% is a respectable cost against income and one FL will aim to hold or slightly improve by increasing income rather than making staff savings. The Lido staffing percentage is significantly higher at 54% and this is due to the nature of the venue needing a core minimum number of staff even when it is wet and cold and therefore not taking any money. Due to the good income numbers this does see a 3% reduction on last year.

Having such a good staff cost to income ratio demonstrates good value for money for the customers – Objective 4.1.9 To demonstrate value for money and continuous improvement

5.6.5 MEMBERSHIP

At the end of March 2013 Spectrum had 2484 members which increased to 2766 by March 2014. A growth of 282 members.

Ash Manor Sports Centre grew their membership from 594 to 631. The Lido went from 102 to 101. Therefore the total growth across the contract was a superb 319 memberships . The key to this growth has been a keen focus on sales, marketing and retention. All of which we measure very closely to ensure the very best results are being seen. Moving forward a great focus is needed for the Lido which has seen a very stagnant membership base for the past two years. The type of facility being offered means a different approach needs to be considered.

The growth in membership at both Ash and Spectrum has been fantastic. The numbers represent a £10K increase in Direct Debits per month across the contract.

This success can be linked back to the LPA objective: 4.1.10 To recognise and maximise commercial opportunities in the facilities

Page 68 Agenda item number: 5 Freedom Leisure Annual Report 2013/2014 Appendix 2

5.6.6 LOCAL COMMUNITY USE

The Active Card was developed to offer sport and leisure benefits to Guildford borough residents, with specific focus on concessionary users. The data collected from this service is then used to further enhance our methods of communication with the customer base and to target key times of the day when the facilities have availability.

The green card is a version of the Active card specifically for concessionary groups:

 Senior citizens  Unemployed  Students  Income support  Incapacity benefit

The contract now has 16218 Active Card holders of which 12.6% of our users are concessions.

The Sport for All Day along with other developmental activities ensures that as many of the Guildford Community has access to the Leisure Facilities.

Spectrum and Ash will continue to drive sales into its health and fitness facilities via the active card concessionary schemes and promoting its facilities to this group. The lido is showing an even higher percentage of take when split out separately with over half of its season tickets being of a concessionary nature. Feedback from that user group suggests that the price point is very appealing to that group with those that swim daily getting the prices down to as little as 50-60p a swim.

Spectrum and Ash Manor have both maintained the “Inclusive Fitness Initiative” accreditation. This accreditation is there to show the disabled user that these facilities are set up to assist them and the staff are suitably trained to deal with their needs.

The LPA objectives achieved through the community outreach and development work mentioned above are:

4.1.1 To improve the health and well being of their communities through increased participation

4.1.2 To use sport and leisure to bring communities together

4.1.3 To enable access to services by specific groups with identified needs

Page 69 Agenda item number: 5 Freedom Leisure AnnualAppendix Report 2 2013/2014

4.1.4 To encourage and provide affordable and sustainable local facilities and services

4.1.8 To bear in mind the rights, needs and aspirations of facility users and staff

5.6.7 SERVICE FAILURES OR CLOSURES:

The contract has had no significant unplanned closures. There have been several advertised and planned disruptions to service with the pool changing rooms being one of the most significant ones.

A significant area of concern was the Ice Rink refrigeration unit which was failing regularly and did lead to some short term or part ice closures.

This has now been replaced and Freedom Leisure spent £20000 to ensure the safety of the Ice rink during the replacement works by hiring a temporary chiller. A failure during those works over the summer period could have led to significant damage and loss of income.

This has also given the rink longer term security as not only does it have a new plant, but also all the connections have been left in place to bring in a temporary chiller in the future if the need arises.

5.6.7 SUMMARY OF RESULTS

As you can see from these KPI’s and the summary of bigger projects it has been a busy year.

The recognition that FL have managed to maintain the level of use, and income during a warm summer and with a large ice rink closure should be seen as a positive outcome for the year.

As is detailed as you go through this section many of the LPA objectives are being achieved but there is still more to do to ensure the Guildford Leisure Facilities continue to flourish.

Page 70 Agenda item number: 5 Freedom Leisure Annual Report 2013/2014 Appendix 2

6. Marketing and Programming

6.1 The Guildford contract has its own dedicated marketing department that looks after the ongoing development of product advertising and facility branding along with driving the corporate promotions where applicable through the departments and facilities.

The social media and use of other electronic media to advertise the facilities continued to increase with the leisure facilities now having over 3337 followers on facebook (over 500 more than last year) and 4413 followers on twitter (an increase of 550). The use of a digital mail shot each month has also meant the facilities can get more information to the customers in a cost effective and efficient manner. We are now contacting over 20000 people each month using digital media.

6.2 The Customer Service Rating (CSR) is a method of rating customer feedback to give a score between 1 and 10. 1 being the customer thinks poorly of us and 10 being perfect. Spectrum has used this system for many years and so FL has adopted it as a way of benchmarking the customer satisfaction.

6.2.1 As can been seen from the table below the CSR has reduced from 2012/13 to 2013. Although this is still an active measure it has been proven to have little correlation to the customer views on the service as it is only the view of those making a complaint and those willing to take the time to write in. Quest, within their recent report, have suggested more realistic measures of customer satisfaction. As a result, from September 2014 we will be moving to the “Net Promoter Score System” which as well as recognising the people who take the time to make a complaint, or send in a positive comment also surveys a percentage of our users each month via email to get there feedback. This system has been created by Leisure Net and will allow FL to benchmark both internally but also against other leisure providers that take up this new approach.

Note: The NPS scoring and measurement system was installed in September and the first Surveys have been conducted – results to be analysed shortly.

Page 71 Agenda item number: 5 Freedom Leisure AnnualAppendix Report 2 2013/2014

CUSTOMER SATISFACTION RATING - SUMMARY- 2013/14

2012/13 2013 /14 Avr Avr BOWL 6.89 5.99 ARENA 5.06 6.85 POOLS 5.45 5.32 ENERGY LEVEL 5.64 5.32 ICE 6.12 6.17 RECEPTION 5.19 5.38 CHANGING 3.56 4.17 SPECTRUM OVERALL 6.43 5.95

CATERING 3.63 3.86

6.3 The Customer Feedback for this contract year has stayed very similar to the previous year. In 12/13 there were 211 complaints and 210 in 13/14. The main area of complaint was the pools with 29% of the complaints (note the pools attendances are 35% of the total contract attendances). The complaints varied considerably from programming issues, queuing, lifeguards and accidents. There is not one strong trend for us to focus on. The number of complaints is less than 0.01% of the visits.

The next area is the Ice which accounts for 20% of the sites attendances. The ice had 37 (17%) complaints for a variety of reasons, ice quality, the rink being too busy and programming in general.

Cleaning made up 9% of the total number of complaints, Gym 8%, Bowl 5%, Catering 5%, technical issues amounted to 4% of the complaints and the rest was a variety of other issues.

Overall the number of complaints was very small in comparison to the number of visitors but we have not been doing enough to solicit or collect positive feedback and this has become a new focus for us with the planned installation of a new customer feedback system in 2014. The new system will use the Industry standard Net Promoter Score (NPS) which will mean we can compare our level of complaints to the industry as a whole as discussed above.

6.4 Customer feedback is regularly sourced through customer forums. The following groups are invited in to give there feedback and offer suggestions on how we improve in the future:

Page 72 Agenda item number: 5 Freedom Leisure Annual Report 2013/2014 Appendix 2

 Spectrum Primetimers  Spectrum gym users  Morning swimmers  Friday swimmers  Spectrum Club hirers  Spectrum Group Exercise  Ash Members  Ash Hirers  The Friends of Guildford Lido  Workshop gym customers

There feedback has been invaluable with benefit taken from all with the Friends of Guildford Lido being absolutely integral to the development of the Lido.

6.5 The programmed courses; swimming courses, dry side courses and ice course have remained strong with 3,706 children attending the holiday camps (an increase of over 10%); 2,895 children learning to swim per week and over 2,441 people learning to skate each week. This means there are over 8,000 people learning an activity directly with FL staff across the contract along with all the people attending sessions with hirers such as Chelsea football.

6.6 The group exercise programme is also just as strong. There is a very high occupancy rate of the 100 plus classes put on per week and over 2,100 people attending per week.

6.7 The crèche once again got an excellent Ofsted accreditation and looked after over 4,500 children in 2013/14 which was a 3% increase on the previous year. Having this service available for the customers does mean that more people can access the gym and group exercise facilities and is essential to the local community which is proven by the ever growing demand. The growth is directly attributed to the growth in gym memberships.

The Crèche also achieved the Surrey County Council Early Years Quality Improvement Award. Spectrum’s Crèche being the only one in the County to achieve this.

Page 73 Agenda item number: 5 Freedom Leisure AnnualAppendix Report 2 2013/2014

7. Community / Sports Development

7.1 Work has continued with Guildford’s Sport Development Officer to offer a joined up sports development plan that meets the needs of the local community. Whilst this is still in its infancy, progress has been made with the facilities being more available than ever to serve the needs of the Council’s focus groups. The Surrey Half Marathon along with several other lesser events have taken place in partnership with GBC to try and drive up the community inclusion in sport and leisure activities.

7.2 The FANs scheme has been replaced with the ELITE scheme with the intention of offering a better service to the communities up and coming sports stars. The FANS scheme offered a broad offering to a wide range of up and coming athletes but was not producing elite athletes so the scheme was changed to offer more to those that reach a certain “elite” level and therefore offering direct support to those who have been identified as up and coming stars. FL also supports the Sports Foundation programme run by GLL to offer a range of grants and training for regional sports stars. This year 12 potential sports stars have been using the Guildford facilities for free to help attain their targets.

7.3 A great deal has been done to promote swimming as a way of improving health and fitness. The Amateur Swimming Association (ASA) is a key partner who has offered their support to help manage and develop the Swimathon for 2014 and the introduction of a new product called “swim Britain” that was launched in 2013. We have also developed our partnership further with the ASA to create a detailed Aquatics plan with the main intention of this plan being community development.

7.4 The Lido hosted the 2nd ever “2swim4life” event which saw 400 hundred people attempt to swim 24 miles in 24 hours. This was a great event that drew people from all over the world and raised £40000 for charity.

In summary, sport and community development is an area that has some success stories but is currently not planned in a joined up way well enough to maximise the benefits available. Further work to bring the key partners into the planning stages with GBC and FL will help to develop this further.

Page 74 Agenda item number: 5 Freedom Leisure Annual Report 2013/2014 Appendix 2

8. Human Resources

8.1 The structure at the sites have stayed the same this year but there has been some changes in key personnel with Kevin Hopkins leaving FL to work for GBC and Angie Doyle at the Lido retiring after 27 years service at the Lido. Both will be missed. A new Centre Manager has been appointed for the Lido – Dave Greenwood who has been promoted from the Ice Rink at Spectrum and the Technical Manager position is out to advert.

Note: This position has now been filled by Steve Levien

8.2 The contracts sickness rate has remained good and has moved from 258 days in 2012/13 to 207 in 2013/14. A sickness ratio of less than 1% is something FL is very pleased with.

8.3 The facilities Income Performance Payment was not paid in this financial year due to the loss made by the facilities primarily generated by the ice rink closure and high level of investment in this year. Although this is a decision that did not sit well with the team it was explained to the team in detail to ensure that they understood the reasons behind not making the payment.

Page 75 Agenda item number: 5 Freedom Leisure AnnualAppendix Report 2 2013/2014

9. Asset Management

9.1 The 10 year plan shows what works are planned for next year. The 10 year plan generally relates to maintenance and replacement of plant room equipment or service facilities and will not cover new developments. (Appendix 1: the full plan)

9.2 Large investments

The Lido has had £504,000 of water slides installed.

Spectrum Ice refrigeration unit was replaced to comply with government regulations - £600,000

Spectrum Bowl has had some work completed to ensure the lanes achieve the Health and Safety standards set for this year - £30,000

9.3 The above investments are included on a separate capital expenditure report which tracks Freedom Leisure’s capital commitments over the contract period. The above investment along with the standard maintenance and equipment replacement costs for the contract total £1,563,084 for 2013/14. This is broken down as follows:

Repairs, Maintenance and Improvements £539,857

Capital investments and improvements £840,165

(Full breakdown of this is shown in App 1)

Equipment Maintenance and Replacements £183,062

Total £1,563,084

These numbers exclude the cost of the Lido water slides which has been funded in partnership with Guildford Borough Council.

Page 76 Agenda item number: 5 Freedom Leisure Annual Report 2013/2014 Appendix 2

10. Health and Safety

10.1 Health and Safety is clearly a primary consideration of FL so we many checks and balances to ensure a continued level of excellence is achieved. A mixture of external and internal audits are undertaken each year with the Guildford facilities all going through:

 4 Area Manager audits (Conducted by Area Managers from other parts of the business)  an internal H&S audit from the FL H&S Manager  a Right Directions (The company who administer QUEST) H&S Audit  a QLM (Quality Leisure Management are a guiding light within the leisure industry who are influential in the detail behind the management of Health and Safety in Swimming Pools government document) Audit  2 Leisure Client audits who are an independent auditing agency who look at customer facing quality of the leisure provision which includes the level of safety.  Along with these the council officer’s also audit certain parts of the service throughout the year.

These audits are carefully planned to ensure that the site teams are not overwhelmed but actually feel re-enforced by the outcomes, whilst giving the FL senior management team a steer on how the site is performing and if any extra assistance is required.

The Guildford facilities scored over 80% in all of the above audits. Any weaknesses that are identified are added to the site Safety Action Plan with realistic deadlines set.

10.2 In this contract year there were 1,337 accidents reported across the facilities (less than 0.01% and less than 1 accident per 1,000 visits which is the FL and industry target). The majority of the accidents occur on the ice rink and are unavoidable accidents due to the nature of the sport/activity. The number of accidents is 102 less than the year before and the main reason for this is; it’s the first full year with the rubber flooring on poolside and the closure of the ice rink for 3 weeks.

Page 77 Agenda item number: 5 Freedom Leisure AnnualAppendix Report 2 2013/2014

11. Environmental improvements and future plans

11.1 FL aimed to reduce utility consumption by 5% from last year and has ongoing plans to continue to reduce the consumption at the three sites. Unfortunately this was not possible in spite of some energy saving projects taking place. The use of the temporary ice plant and the old plant having to work to hard early in the year gave the figures a negative slant along with the Combined Heat and Power unit being very unreliable this year means the good work has been hidden by two pieces of plant room equipment. The changes made along with future improvements should mean we start to see the benefits in this coming contract year.

11.2 The tables below show each sites utility usage for Gas and Electricity:

Ash Manor:

Ash Manor Electricity Consumption 18000 16000 14000 12000

10000 2012/13

kWh 8000 2013/14 6000 2014/15 4000 2000 0 A M J J A S O N D J F M

A M J J A S O N D J F M

2012/13 10449 12467 12190 13699 14760 14629 16199 15237 14005 14882 14152 13631

2013/14 11671 11238 11900 15289 14652 14195 16457 15518 14473 14828 14662 13213

% against previous yr 11.7 -9.9 -2.4 11.6 -0.7 -3.0 1.6 1.8 3.3 -0.4 3.6 -3.1

2014/15 12242 13098 15015 16836 15309 16033 16350 14192 11434 Total Site Electricity Site Total % against previous yr 4.9 16.6 26.2 10.1 4.5 12.9 -0.7 -8.5 -21.0

Electricity consumption in 2013/14 is comparable to that in 2012/13; the fluctuations seen between 2013/14 are due to small changes in usage patterns.

Note: The figures for this year have been added and are showing some larger variances due to some issues with the centres air-conditioning that has now been rectified.

Page 78 Agenda item number: 5 Freedom Leisure Annual Report 2013/2014 Appendix 2

Ash Manor Gas Consumption 20000 18000 16000 14000 12000 2012/13 10000

kWh 2013/14 8000 2014/15 6000 4000 2000 0 A M J J A S O N D J F M

A M J J A S O N D J F M

2012/13 7082 5835 6897 5206 4220 5742 5946 9239 13217 14291 13340 17218

Degree Days 311.9 183.1 126.3 91.2 66.6 152 250.6 350.9 411.5 446.7 424.9 467.1

2013/14 12205 3680 3722 2945 2942 3392 3823 3771 6780 10339 9216 8766

Degree Days 314.1 230.2 121.4 46.4 63 140.2 176.8 352.9 378.3 381.5 330.3 323.2

% against previous yr 72.3 -36.9 -46.0 -43.4 -30.3 -40.9 -35.7 -59.2 -48.7 -27.7 -30.9 -49.1

2014/15 2832 2827 2647 2526 5019 4738 4956 7882 9775

(inc CHP) (inc Total Site Gas Site Total

Degree Days 228.8 179.7 86.2 44.7 96.2 97.2 172.2 293.8 405.6

% against previous yr -76.8 -23.2 -28.9 -14.2 70.6 39.7 29.6 109.0 44.2

Gas consumption in 2013/14 was considerably lower than in 2012/13. The under floor heating system was found to be faulty and hence a saving was seen. This has since increased, it is encouraging to see that gas consumption has not generally risen above the 2012/13 levels.

Lido:

Page 79 Agenda item number: 5 Freedom Leisure AnnualAppendix Report 2 2013/2014

A M J J A S O N D J F M

Lido Electricity Consumption 50000

40000

30000 2012/13

kWh 2013/14 20000 2014/15 10000

0 A M J J A S O N D J F M

A M J J A S O N D J F M

2012/13 10597 35271 35366 42767 44393 24867 4352 4288 4025 4399 4213 4273

2013/14 16186 35048 32766 44891 44686 38405 13012 15912 13494 13695 18367 15660

% against previous yr 52.7 -0.6 -7.4 5.0 0.7 54.4 199.0 271.1 235.3 211.3 336.0 266.5

2014/15 24491 41560 40287 43996 47254 23651 11897 14455 16953 Total Site Electricity Site Total % against previous yr 51.3 18.6 23.0 -2.0 5.7 -38.4 -8.6 -9.2 25.6

Electricity consumption was comparable to 2012 over the summer season of 2013, however it rose over the winter of 2013 due to the pool circulation remaining on (at a lower flow rate than would be used during the summer). The summer season of 2014 was higher again due to the additional requirements of the flumes.

Lido Gas Consumption 300000

250000

200000

2012/13 150000

kWh 2013/14 100000 2014/15 50000

0 A M J J A S O N D J F M

Page 80 Agenda item number: 5 Freedom Leisure Annual Report 2013/2014 Appendix 2

2012/13 95446 203623 168032 84280 79178 59295 4869 6191 7460 7708 7375 7973

Degree Days 311.9 183.1 126.3 91.2 66.6 152 250.6 350.9 411.5 446.7 424.9 467.1

2013/14 69931 257914 132927 23940 74863 142166 4986 7719 7460 8387 71733 15174

Degree Days 314.1 230.2 121.4 46.4 63 140.2 176.8 352.9 378.3 381.5 330.3 323.2

% against previous yr -26.7 26.7 -20.9 -71.6 -5.4 139.8 2.4 24.7 0.0 8.8 872.7 90.3

2014/15 129660 198357 70529 38484 111637 58626 3757 9036 65466

(inc CHP) (inc Total Site Gas Site Total

Degree Days 228.8 179.7 86.2 44.7 96.2 97.2 172.2 293.8 405.6

% against previous yr 85.4 -23.1 -46.9 60.8 49.1 -58.8 -24.6 17.1 777.6

The Gas consumption is very much linked to the external temperatures. The winter usage has increased due to the opening of the venue for cold water swims where we maintain a minimum temperature of 11 degrees.

Spectrum:

Spectrum total Electricity Consumption 800000 700000 600000 500000

2012/13 400000

kWh 2013/14 300000 2014/15 200000 100000 0 A M J J A S O N D J F M

A M J J A S O N D J F M

Page 81 Agenda item number: 5 Freedom Leisure AnnualAppendix Report 2 2013/2014

2012/13 547568 595465 587630 630947 694595 624005 625484 599198 588876 600398 516417 617773

2013/14 614143 628360 592434 723947 718451 622337 616710 559135 556501 556932 510158 567478

% against previous yr 12.2 5.5 0.8 14.7 3.4 -0.3 -1.4 -6.7 -5.5 -7.2 -1.2 -8.1

2014/15 558765 568709 588145 642074 603101 607345 597919 531970 506111 Total Site Electricity Electricity Site Total % against previous yr -9.0 -9.5 -0.7 -11.3 -16.1 -2.4 -3.0 -4.9 -9.1

Total electricity on site has been consistently down since September 2013. We believe this is due to the more efficient performance of the modern Ice Chiller Plant. There is a slight average increase of 0.5% comparing 13/14 to 12/13 but this changed to an average reduction of 6.9% comparing Calendar year 2014 to 2013. Consumption includes power from the CHP and the PV system on the roof.

Significant further reductions could be realised with a new and efficient CHP installation.

Spectrum Gas Consumption 1000000

800000

600000 2012/13

kWh 2013/14 400000 2014/15 200000

0 A M J J A S O N D J F M

A M J J A S O N D J F M

4926 4270 4351 5623 9205 2012/13 70 33 35 52 537845 553271 639348 805072 884291 923374 844729 56

Degree Days 311.9 183.1 126.3 91.2 66.6 152 250.6 350.9 411.5 446.7 424.9 467.1

7831 6704 5628 4312 8558 2013/14 02 96 23 83 460717 562291 728064 833686 834242 857379 774260 90

Degree Days 314.1 230.2 121.4 46.4 63 140.2 176.8 352.9 378.3 381.5 330.3 323.2

% against previous yr 59.0 57.0 29.3 -23.3 -14.3 1.6 13.9 3.6 -5.7 -7.1 -8.3 -7.0

7496 7178 4534 3942 2014/15 78 16 76 82 434045 466284 566255 663753 762741

Degree Days 228.8 179.7 86.2 44.7 96.2 97.2 172.2 293.8 405.6 Total Site Gas Gas Site Total

% against previous yr -4.3 7.1 -19.4 -8.6 -5.8 -17.1 -22.2 -20.4 -8.6

Page 82 Agenda item number: 5 Freedom Leisure Annual Report 2013/2014 Appendix 2

With the exception of May 2014 (when we suspect the CHP ran inefficiently), gas consumption has been consistently down since December 2013. Although some months showed unexplained increases in gas consumption, compared to the previous year, correlation with degree days was a lot closer in 2013-14.

11.3 In this contract year the following schemes have been introduced to reduce environmental impact and reduce utility costs:

 Spectrum has had PV Panels installed to the roof of the pool.  Continued the role out of energy efficient lighting added to many areas of the building  Sensor lighting fitted to some low use areas  The Lido opened throughout the winter which would increase the usage but due to the lower winter attendance figures the inverters were used to reduce the motor speeds and make significant per hour savings.  New Ice plant will be more efficient than the old one.  Ambient Trackside lighting has been installed meaning the main floor lights can be turned off as soon as the game is finished leaving lighting for Spectators only.

11.4 In the next year the following schemes will commence:

 Lighting enhancements to high usage areas across the contract  Enhanced controls to the leisure pool giving the operations team the ability to run each feature independently rather than having to run it in large sections regardless of user type  Enhancing the automated lighting controls and sensors so that areas of low usage are only on when required.  Pool covers – with the ever improving technology in this area there is hope that some covers can be developed for the Lido.

Note: 3 of the four projects for 2014/15 have been completed with the pool covers being the only outstanding project with works due to commence in February if the structural engineer confirms all diagrams are correct

11.5 Areas that are being investigated to see if they are financially viable are:

 Combined Heat and Power unit upgrade  Pool covers – with the ever improving technology in this area there is hope that some covers can be developed for the Lido.  Plate heat exchangers are being investigated at the Lido

Page 83 Agenda item number: 5 Freedom Leisure AnnualAppendix Report 2 2013/2014

 Renewal of some major lighting schemes; ice, arenas and track with modern lighting that maybe more energy efficient  Ambient trackside lighting so that he amount of time main lights are on can be reduced

11.6 Clearly the staffing teams are key to keeping our utility usage down to the minimum and Alan Hankin, our energy champion, will continue to educate and enforce the best energy savings culture for the contract.

12. Future Development Plans

12.1 As you have seen so far in the report a great deal has been occurring in the contract but to stay competitive more needs to be done and will continue to be done throughout the life of the Freedom Leisure contract.

12.2 In the year 2014 – 2015 a proposal will be put forward to Guildford Borough Council on how Spectrum can be upgraded to ensure it stays a market leading facility bringing both new innovation to the complex as well as making general building improvements to both enhance its appeal and reduce its carbon footprint.

Note: Draft plans have been submitted and inprinciple excepted, detailed drawings, specifications and business plans are now being created for each area.

12.3 The Bowl machinery is coming to the end of its life with significant breakdowns causing problems and therefore it is time to replace this at a cost of £500K. It is anticipated that 50% will be done in the next contract period

Note: A Specification for this has been written and is currently out to tender, works are due to commence in the summer of 2015 – the complexity of this project has led to it not happening in the contract year 2014/15.

12.4 The lifts in Spectrum are showing their age cosmetically and are regularly breaking down. The cost of repairs has also become high due to the age of the equipment being used. Therefore the most cost effective solution is a replacement which will be completed in two phases. Two lifts are expected to be replaced in the next contract period.

Note: Quotes for these works have been received and timelines are not being considered as to when we can best do without some of the lifts. It is likely that these works will take place in the late spring of 2015.

Page 84 MONITORING TEMPLATE Appendix C PROJECTED OUTTURN MARCH 2014 Page 1 of 4

MONTH YEAR TO DATE OUTTURN DETAILS CURRENT CURRENT VARIANCE LAST VARIANCE CURRENT CURRENT VARIANCE LAST VARIANCE CURRENT CURRENT VARIANCE MANAGEMENT FEE YEAR YEAR ACTUAL YEAR ACTUAL YEAR YEAR ACTUAL YEAR ACTUAL YEAR YEAR OUTTURN PERIOD PERIOD TO PERIOD TO LAST CUMULATIVE CUMULATIVE TO CUMULATIVE TO LAST TOTAL PROJECTED TO BID BUDGET ACTUAL BID ACTUAL YEAR BID BUDGET ACTUAL BID ACTUAL YEAR BID BUDGET OUTTURN BUDGET

£ £ % £ % £ £ % £ % £ £ %

SPECTRUM (19,573) (65,212) -233% 216,420 -130% (234,874) (329,982) -40% (360,804) 9% (234,874) (329,982) -40% LIDO (858) (10,372) -1109% 35,022 130% (10,295) (16,923) -64% 11,539 247% (10,295) (16,923) -64% ASH MANOR (374) 8,132 2274% (1,469) -654% (4,488) 38,176 951% 4,912 677% (4,488) 38,176 951%

NET (PROFIT) / DEFICIT (20,805) (67,452) -224% 249,973 -127% (249,657) (308,729) -24% (344,353) 10% (249,657) (308,729) -24%

Page 85 Page SURPLUS SHARE (59,072) Agenda item number: 5 Appendix 3 Agenda item number: 5 Appendix 3 MONITORING TEMPLATE Appendix C PROJECTED OUTTURN MARCH 2014 Page 2 of 4

CURRENT CURRENT PREVIOUS CURRENT CURRENT VARIANCE VARIANCE DETAILS YEAR YEAR YEAR YEAR YEAR CUMULATIVE CUMULATIVE CUMULATIVE CUMULATIVE FULL FULL FULL ACTUAL TO ACTUAL TO PERIOD PERIOD YEAR YEAR YEAR FULL YEAR FULL YEAR BID ACTUAL ACTUAL BID PROJECTED BID LAST YEAR

£ £ £ £ £ % %

SPECTRUM

Income

Administration 123,923 173,775 181,271 123,923 173,775 140% 96% Marketing 154,170 21,150 24,178 154,170 21,150 14% 87% Pools 2,261,951 2,538,896 2,483,233 2,261,951 2,538,896 112% 102% Bowl 1,037,382 1,029,238 1,094,185 1,037,382 1,029,238 99% 94% Ice Rink 2,358,214 2,014,794 2,101,617 2,358,214 2,014,794 85% 96% Arena 777,999 372,913 318,018 777,999 372,913 48% 117% Energy Level 679,259 1,175,909 1,064,156 679,259 1,175,909 173% 111% Athletics 35,604 50,721 51,267 35,604 50,721 142% 99% Catering & Shops 455,364 530,924 506,505 455,364 530,924 117% 105% Other 39,360 630,197 742,255 39,360 630,197 1601% 85%

TOTAL INCOME 7,923,226 8,538,517 8,566,685 7,923,226 8,538,517 108% 100%

Expenditure

Employees Salaries 1,964,866 2,062,669 1,871,337 1,964,866 2,062,669 105% 110% Wages 858,636 1,214,217 1,281,209 858,636 1,214,217 141% 95% Self Employed Instructors 644,235 487,543 497,020 644,235 487,543 76% 98% NI & Pension 380,899 326,975 370,866 380,899 326,975 86% 88% Training 18,000 17,352 17,226 18,000 17,352 96% 101% Other Employee Expenses 16,164 17,606 14,234 16,164 17,606 109% 124%

Premises Related Expenses Building & Plant Maintenance 529,515 451,622 519,364 529,515 451,622 85% 87% Plant Replacement 268,900 268,900 268,900 268,900 268,900 100% 100% General Rates 114,264 129,996 126,408 114,264 129,996 114% 103% Electricity 438,083 523,885 525,142 438,083 523,885 120% 100% Gas 188,923 185,688 182,108 188,923 185,688 98% 102% Water 74,109 95,376 96,818 74,109 95,376 129% 99% Cleaning 92,579 99,322 93,137 92,579 99,322 107% 107% Insurance 60,000 67,529 60,708 60,000 67,529 113% 111% Other Premises Expenses 0 0 0 0 0 0% #DIV/0!

Transport Related Expenses Travel & subsistence 15,568 2,504 5,035 15,568 2,504 16% 50%

Supplies and Services Marketing 176,889 111,273 146,209 176,889 111,273 63% 76% Licences & Fees 35,209 21,775 22,351 35,209 21,775 62% 97% ICT 49,377 45,941 41,952 49,377 45,941 93% 110% Equipment maintenance 46,553 87,723 84,448 46,553 87,723 188% 104% Equipment replacement 121,423 88,646 104,182 121,423 88,646 73% 85% Events 52,682 385,422 376,461 52,682 385,422 732% 102% Admin & postage 30,408 24,400 22,800 30,408 24,400 80% 107% Bank charges 54,793 71,018 71,275 54,793 71,018 130% 100% Catering & resale 15,211 36,486 38,204 15,211 36,486 240% 96% Other supplies & services 495,770 546,493 575,018 495,770 546,493 110% 95%

Central Support Services 396,158 426,926 428,334 396,158 426,926 108% 100%

TOTAL EXPENDITURE 7,139,214 7,797,287 7,840,746 7,139,214 7,797,287 109% 99%

Management Fee 1,018,886 1,071,212 1,086,743 1,018,886 1,071,212

NET PROFIT (234,874) (329,982) (360,804) (234,874) (329,982)

Page 86 Agenda item number: 5 Appendix 3 MONITORING TEMPLATE Appendix C PROJECTED OUTTURN MARCH 2014 Page 3 of 4

CURRENT CURRENT PREVIOUS CURRENT CURRENT VARIANCE VARIANCE DETAILS YEAR YEAR YEAR YEAR YEAR PROJECTED PROJECTED CUMULATIVE CUMULATIVE FULL FULL FULL TO TO PERIOD PERIOD YEAR YEAR YEAR BID LAST BID ACTUAL ACTUAL BID PROJECTED YEAR

£ £ £ £ £ % %

LIDO

Income

Swimming - Casual 199,553 226,124 180,892 199,553 226,124 113% 125% Swimming - Memberships 17,281 20,676 20,129 17,281 20,676 120% 103% Fitness - Casual 6,743 4,447 3,866 6,743 4,447 66% 115% Fitness - Memberships 44,321 44,067 34,963 44,321 44,067 99% 126% Catering & Vending 8,680 16,505 17,173 8,680 16,505 190% 96% Goods For Resale 0 2,603 10,933 0 2,603 0% 24% Car Parking 0 15,714 17,784 0 15,714 0% 88% Other Income 16,083 5,354 6,447 16,083 5,354 33% 83%

TOTAL INCOME 292,661 335,490 292,187 292,661 335,490 115% 115%

Expenditure

Employees Salaries 117,738 80,522 73,847 117,738 80,522 68% 109% Wages 69,873 84,579 72,255 69,873 84,579 121% 117% Self Employed Instructors 0 1,092 0 0 1,092 0% #DIV/0! NI & Pension 22,515 17,075 16,155 22,515 17,075 76% 106% Training 2,000 1,292 1,339 2,000 1,292 65% 96% Other Employee Expenses 874 163 3,709 874 163 19% 4%

Premises Related Expenses Building & Plant Maintenance 48,303 69,956 47,342 48,303 69,956 145% 148% Plant Replacement 30,000 30,000 30,000 30,000 30,000 100% 100% General Rates 5,862 6,504 5,573 5,862 6,504 111% 117% Electricity 13,508 28,983 21,018 13,508 28,983 215% 138% Gas 22,224 21,099 18,665 22,224 21,099 95% 113% Water 24,140 49,142 34,923 24,140 49,142 204% 141% Cleaning 9,122 14,892 11,554 9,122 14,892 163% 129% Insurance 5,000 5,211 5,059 5,000 5,211 104% 103% Other Premises Expenses 0 0 0 0 0 0% #DIV/0!

Transport Related Expenses Travel & subsistence 273 0 0 273 0 0% #DIV/0!

Supplies and Services Marketing 5,058 7,752 6,080 5,058 7,752 153% 128% Licences & Fees 3,230 2,761 1,373 3,230 2,761 85% 201% ICT 4,020 3,368 2,659 4,020 3,368 84% 127% Equipment maintenance 4,603 144 745 4,603 144 3% 19% Equipment replacement 6,000 3,065 2,398 6,000 3,065 51% 128% Events 5,973 2,230 2,394 5,973 2,230 37% 93% Admin & postage 1,174 406 528 1,174 406 35% 77% Bank charges 826 2,520 2,302 826 2,520 305% 109% Catering & resale 7,475 11,747 15,687 7,475 11,747 157% 75% Other supplies & services 40,671 52,247 43,316 40,671 52,247 128% 121%

Central Support Services 14,628 16,775 14,609 14,628 16,775 115% 115%

TOTAL EXPENDITURE 465,090 513,524 433,530 465,090 513,524 110% 118%

Management Fee (162,134) (161,111) (152,882) (162,134) (161,111)

NET PROFIT (10,295) (16,923) 11,539 (10,295) (16,923)

Page 87 Agenda item number: 5 Appendix 3 MONITORING TEMPLATE Appendix C PROJECTED OUTTURN MARCH 2014 Page 4 of 4

CURRENT CURRENT PREVIOUS CURRENT CURRENT VARIANCE VARIANCE DETAILS YEAR YEAR YEAR YEAR YEAR PROJECTED PROJECTED CUMULATIVE CUMULATIVE FULL FULL FULL TO TO PERIOD PERIOD YEAR YEAR YEAR BID LAST BID ACTUAL ACTUAL BID PROJECTED YEAR

£ £ £ £ £ % %

ASH

Income

Gym Casual 28,119 16,125 16,700 28,119 16,125 57% 97% Gym Classes 24,304 11,212 12,929 24,304 11,212 46% 87% Gym Memberships 161,514 205,002 202,423 161,514 205,002 127% 101% Sport Hall Casual 35,325 7,907 11,882 35,325 7,907 22% 67% Sport Hall Courses 7,330 3,420 6,562 7,330 3,420 47% 52% Sport Hall Childrens Activities 3,868 3,320 1,503 3,868 3,320 86% 221% Sport Hall Bookings 5,528 28,991 27,190 5,528 28,991 524% 107% Outdoor Casual 111,772 31,018 27,685 111,772 31,018 28% 112% Outdoor Bookings 0 61,855 64,406 0 61,855 0% 96% Catering & Vending 23,305 4,269 3,620 23,305 4,269 18% 118% Other Income 2,788 457 2,902 2,788 457 16% 16%

TOTAL INCOME 403,853 373,576 377,802 403,853 373,576 93% 0%

Expenditure

Employees Salaries 119,195 71,102 76,524 119,195 71,102 60% 93% Wages 45,138 71,982 68,814 45,138 71,982 159% 105% Self Employed Instructors 1,500 0 4,538 1,500 0 0% 0% NI & Pension 18,104 14,437 24,888 18,104 14,437 80% 58% Training 2,000 1,408 2,304 2,000 1,408 70% 61% Other Employee Expenses 350 446 630 350 446 127% 71%

Premises Related Expenses Building & Plant Maintenance 32,254 16,279 22,334 32,254 16,279 50% 73% Plant Replacement 5,000 5,000 5,000 5,000 5,000 100% 100% General Rates 8,000 10,452 10,166 8,000 10,452 131% 103% Electricity 21,811 22,024 21,438 21,811 22,024 101% 103% Gas 9,746 6,670 7,218 9,746 6,670 68% 92% Water 8,342 103 1,974 8,342 103 1% 5% Cleaning 3,023 10,598 13,164 3,023 10,598 351% 81% Insurance 5,290 5,513 5,352 5,290 5,513 104% 103% Other Premises Expenses 0 0 0 0 0 0% #DIV/0!

Transport Related Expenses Travel & subsistence 223 82 0 223 82 37% #DIV/0!

Supplies and Services Marketing 5,499 6,582 9,413 5,499 6,582 120% 70% Licences & Fees 5,055 3,795 3,179 5,055 3,795 75% 119% ICT 7,889 3,070 2,522 7,889 3,070 39% 122% Equipment maintenance 1,000 1,822 2,616 1,000 1,822 182% 70% Equipment replacement 6,820 1,662 5,114 6,820 1,662 24% 32% Events 1,127 85 0 1,127 85 8% #DIV/0! Admin & postage 1,320 427 592 1,320 427 32% 72% Bank charges 1,280 2,616 2,039 1,280 2,616 204% 128% Catering & resale 11,723 398 2,237 11,723 398 3% 18% Other supplies & services 26,974 19,806 22,458 26,974 19,806 73% 88%

Central Support Services 20,193 18,679 18,890 20,193 18,679 93% 99%

TOTAL EXPENDITURE 368,856 295,038 333,404 368,856 295,038 80% 88%

Management Fee 39,485 40,362 39,485 39,485 40,362

NET PROFIT (4,488) 38,176 4,913 (4,488) 38,176

Page 88

Page 89 Page Agenda item number: 5 Appendix 4 This page is intentionally left blank Agenda item number: 6

Customer and Community Scrutiny Committee Report Report of Executive Head of Governance Author: James Dearling Tel: 01483 444141 Email: [email protected] Date: 10 March 2015

Customer and Community Scrutiny Committee – Work Programme

Recommendation

The Committee is requested to consider and approve the work programme for the Customer and Community Scrutiny Committee and Joint Scrutiny Committee as detailed in Appendix 1.

Reason for Recommendation To enable the Committee to review and agree its work programme.

1. Purpose of Report

1.1 This report sets out the recommendations for the Committee’s work plan from the work programme meeting held on 19 January 2015 and subsequent agreements between the Chairmen and Vice Chairmen of the Scrutiny Committees.

1.2 As agreed by the Council on 7 October 2014, each overview and scrutiny committee is responsible for setting its own work programme subject to the following procedure:

“The chairmen and vice-chairmen of the OSCs [overview and scrutiny committees] and relevant officers shall normally meet at least bi-monthly to prepare and submit proposed work programmes periodically to each OSC for approval.”

2. Work Programme

2.1 Work programme meetings consider the current work plans for all scrutiny committees, taking into account the forward plan for the Executive and Council.

2.2 For both completeness and to provide an overview, the recommendations for the work programmes of all OSCs are attached as Appendix 1.

3. Next and future work programme meetings

3.1 The next work programme meeting is scheduled for Monday 9 March 2015 at 1.00pm. in Meeting Room 109, Old Millmead House. These meetings are usually held every two months, to facilitate flexibility and accommodate requests to consider items.

3.2 Councillors are reminded that they are able to submit suggestions and amendments to the overview and scrutiny work plan at these work programme meetings. Councillors are encouraged to attend the work programme meeting to explain in more detail their proposal,

Page 91 Agenda item number: 6

including how it satisfies the scrutiny committee work programme development and topic selection flowchart (attached at Appendix 2).

4. Conclusion

4.1 The Committee is requested to consider and approve the work programme for the Customer and Community Scrutiny Committee and Joint Scrutiny Committee as detailed in the attached Appendix 1. Suggested changes and new items are indicated by shaded rows or underlined bold italics. To provide an overview of the overview and scrutiny function, the appendix also includes details of the work plan for the Corporate Improvement Scrutiny Committee.

5. Background papers

 Forward Plan, published 27 January 2015  Report to and minutes from work programme meeting, 19 January 2015

6. Appendices

 Overview and scrutiny work programme  Scrutiny committee work programme development and topic selection flowchart

Page 92 OVERVIEW AND SCRUTINY WORK PROGRAMME

Changes to the work programme agreed at, or subsequent to, the 19 January 2015 work programme meeting.

CORPORATE IMPROVEMENT SCRUTINY COMMITTEE, 5 March 2015

Subject Details of decision to be taken Decision to be taken Contact Officer by Fundamental Service Review of To consider the final results of the Scrutiny Committee with Kevin McKee Parking Fundamental Service Review of recommendations to 01483 444530 Parking Executive: 24 March [email protected] 2015 North Street Capital Project To consider the financial condition Scrutiny Committee with Chris Mansfield

Page 93 Page in the draft development recommendations to 01483 444550 agreement Executive: 24 March [email protected] 2015 ov.uk

CUSTOMER AND COMMUNITY SCRUTINY COMMITTEE, 10 March 2015

Subject Details of decision to be taken Decision to be taken Contact Officer by Agenda item number: 6 Annual Contract Monitoring: G Live To review the performance of HQ Executive: 24 March Jonathan Sewell Appendix 1 Theatres after the third year of 2015 01483 444729 operating G Live. [email protected]

Annual Contract Monitoring: Leisure To review the operation of the Executive: 24 March Jonathan Sewell Partnership Leisure Partnership Agreement 2015 01483 444729 with GLL/Freedom Leisure after [email protected] the third year of operation

JOINT SCRUTINY COMMITTEE, 7 April 2015

Subject Details of decision to be taken Decision to be taken Contact Officer Agenda item number: 6 by Governance Review To consider the final report of the Executive comments on Satish Mistry task and finish group 9 April; Council 14 April 01483 444042 2015 [email protected] Appendix 1 CORPORATE IMPROVEMENT SCRUTINY COMMITTEE, 23 April 2015

Subject Details of decision to be taken Decision to be taken Contact Officer by Asset Management Review – To review the findings of the asset Scrutiny Committee with Mark Appleton Farms, Farmland, Allotments and management review in relation to recommendations to 01483 444364 Fishing Licences farms, farmland, allotments and Executive [email protected] fishing licences

Page 94 Page CUSTOMER AND COMMUNITY SCRUTINY COMMITTEE, 9 June 2015

Subject Details of decision to be taken Decision to be taken Contact Officer by

JOINT SCRUTINY COMMITTEE, 16 June 2015

Subject Details of decision to be taken Decision to be taken Contact Officer by Leader’s Annual Report To consider the Leader’s annual Scrutiny Committee John Armstrong report on progress and future 01483 444102 priorities. [email protected]

CORPORATE IMPROVEMENT SCRUTINY COMMITTEE, 25 June 2015

Subject Details of decision to be taken Decision to be taken Contact Officer by

CUSTOMER AND COMMUNITY SCRUTINY COMMITTEE, 14 July 2015

Subject Details of decision to be taken Decision to be taken Contact Officer by

CORPORATE IMPROVEMENT SCRUTINY COMMITTEE, 30 July 2015

Subject Details of decision to be taken Decision to be taken Contact Officer by

CUSTOMER AND COMMUNITY SCRUTINY COMMITTEE, 8 September 2015

Subject Details of decision to be taken Decision to be taken Contact Officer Page 95 Page by Houses in Multiple Occupation To consider an update on Scrutiny Committee Ted Wainhouse (HMOs) – position statement implementation of the 01483 444305 recommendations of the HMO [email protected] task and finish group

CORPORATE IMPROVEMENT SCRUTINY COMMITTEE, 17 September 2015

Agenda item number: 6 Subject Details of decision to be taken Decision to be taken Contact Officer Appendix 1 by

CUSTOMER AND COMMUNITY SCRUTINY COMMITTEE, 20 October 2015

Subject Details of decision to be taken Decision to be taken Contact Officer by Annual Review of Homeless To consider the findings following Scrutiny Committee Kim Rippett Strategy the annual review of the 01483 444241 Homeless Strategy 2015. [email protected] Annual Contract Monitoring: Leisure To review the operation of the Executive Jonathan Sewell Partnership Leisure Partnership Agreement 01483 444729 with GLL/Freedom Leisure after [email protected] Agenda item number: 6 the fourth year of operation

CORPORATE IMPROVEMENT SCRUTINY COMMITTEE, 12 November 2015

Appendix 1 Subject Details of decision to be taken Decision to be taken Contact Officer by Social Enterprise – Progress and tbc Scrutiny Committee Stephen Benbough Next Steps 01483 444052 [email protected]. uk

JOINT SCRUTINY COMMITTEE, 17 November 2015

Subject Details of decision to be taken Decision to be taken Contact Officer Page 96 Page by Housing Revenue Account (HRA) Annual update of the business Committee is asked to Phil O’Dwyer and Mark Jasper Business Plan plan for the (HRA) to take account submit any comments 01483 444318/ 01483 444846 of the latest information and on the outline budget to [email protected] projections available the Executive so that [email protected] these can be taken into account when making the recommendation to the Council General Fund Budget: monitoring Mid-year budget monitoring report Scrutiny Committee Victoria Worsfold report 01483 444834 [email protected] Treasury Management Monitoring Committee comments on and Scrutiny Committee Victoria Worsfold Report notes the treasury management 01483 444834 monitoring report for April 2015 to [email protected] September 2015

CUSTOMER AND COMMUNITY SCRUTINY COMMITTEE, 1 December 2015

Subject Details of decision to be taken Decision to be taken Contact Officer by Safer Guildford Partnership Annual To consider the Annual Report. Scrutiny Committee Marie Clarke Report 01483 444510 [email protected]

CORPORATE IMPROVEMENT SCRUTINY COMMITTEE, 7 January 2016

Subject Details of decision to be taken Decision to be taken Contact Officer by Treasury Management Annual Local authorities are required to Scrutiny Committee Victoria Worsfold Strategy Report determine a treasury management makes 01483 444834 strategy statement (TMSS) and recommendations to [email protected] set prudential indicators, on an assist the Executive in annual basis formulating its Page 97 Page recommendations to Council General Fund Capital Programme Details of new capital proposals Scrutiny Committee Victoria Worsfold makes 01483 444834 recommendations to [email protected] assist the Executive in formulating its recommendations to Agenda item number: 6 Council Appendix 1

CUSTOMER AND COMMUNITY SCRUTINY COMMITTEE, 12 January 2016

Subject Details of decision to be taken Decision to be taken Contact Officer by Parking Business Plan To consider annual business Executive Kevin McKee parking plan. 01483 444530 [email protected] G-Live Annual Monitoring Report To review the performance of HQ Executive Jonathan Sewell Theatres after the fourth year of 01483 444729 operating G Live. [email protected] CORPORATE IMPROVEMENT SCRUTINY COMMITTEE, 3 March 2016

Subject Details of decision to be taken Decision to be taken Contact Officer Agenda item number: 6 by

Appendix 1

CUSTOMER AND COMMUNITY SCRUTINY COMMITTEE, 15 March 2016

Subject Details of decision to be taken Decision to be taken Contact Officer by

CORPORATE IMPROVEMENT SCRUTINY COMMITTEE, 28 April 2016

Page 98 Page Subject Details of decision to be taken Decision to be taken Contact Officer by

UNSCHEDULED ITEMS

Subject Details of decision to be taken Decision to be taken Contact Officer Update by

Suitable Area of Natural To consider a report on the Scrutiny Committee Barry Fagg Possible scheduling to Green Space (SANGS) upkeep, management and 01483 444617 be considered in funding of SANGS [email protected] 2015-16 municipal year. Local Plan – – Barry Fagg Interim Head of 01483 444617 Planning reports that [email protected] not in a position to report on the Local Plan in March 2015 Subject Details of decision to be taken Decision to be taken Contact Officer Update by

Review of Sponsorship – Scrutiny Committee Chris Burchell Further information Policy 01483 444329 about scheduling this [email protected]. item to be obtained uk from Local Economy Manager Community Infrastructure To consider the results of Scrutiny Committee Barry Fagg Interim Head of Levy consultation 01483 444617 Planning to be [email protected] consulted about the possible scheduling of this item Guildford Car Park – – Phil O’Dwyer Executive Head of 01483 444318/ 01483 Housing and Health to 444846 attend a work [email protected]. programme meeting to Page 99 Page uk provide further information about this potential item Guildford Public Health and Review action plans Scrutiny Committee Helen Barnsley Customer and Wellbeing Strategy – Action 01483 444218 Community Scrutiny Plans [email protected] Committee, resolved v.uk on 2 December 2014: That the detailed

action plans to deliver Agenda item number: 6 Appendix 1 Guildford’s Health and Wellbeing Strategy be scheduled for consideration by the Committee in the New Year. Guildford Public Health and To review strategy and progress Scrutiny Committee Helen Barnsley Customer and Wellbeing Strategy – 01483 444218 Community Scrutiny Annual Report [email protected] Committee, resolved v.uk on 2 December 2014: That an annual report, including progress Subject Details of decision to be taken Decision to be taken Contact Officer Update by Agenda item number: 6 monitoring, be submitted to the Committee by the Health and Wellbeing

Board Appendix 1 Play Strategy – – Jonathan Sewell Further information to 01483 444729 be obtained from the [email protected] Business v.uk Development Manager Sports Strategy – – Jonathan Sewell Further information to 01483 444729 be obtained from the [email protected] Business v.uk Development Manager Slyfield Area Regeneration – – Mike Harris Executive Head of Page 100 Page Project 01483 444200 Development to attend [email protected] a work programme meeting to discuss the involvement (and timing) of overview and scrutiny in major projects Local Strategy Statement A collaboration between Surrey Executive Chris Mansfield – Councils to cooperate function, 01483 444550 including key areas of housing, [email protected] employment, infrastructure, v.uk countryside and environment

Agenda item number: 6 Appendix 2

SCRUTINY COMMITTEE WORKPROGRAMME DEVELOPMENT AND TOPIC SELECTION FLOWCHART

Does this issue have a potential impact for one or No more sections of the population?

Yes No Is the issue strategic and significant?

Yes

Will the scrutiny activity add value to the Council’s No

and/or its partners’ overall performance?

Yes No Is it likely to lead to effective outcomes? LEAVE OUT

Yes Yes Will scrutiny involvement be duplicating some other work?

No No Is it an issue of concern to partners and stakeholders?

Yes No Is it an issue of community concern?

Yes

Are there adequate resources available to do the No activity well?

Yes

Is the scrutiny activity timely? No CONSIDER LOW PRIORITY Yes PUT INTO WORK PROGRAMME

HIGH PRIORITY

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