Decision:
It was RESOLVED:-
1.1 That the merger of South Suffolk Leisure with Abbeycroft Leisure be approved. Which could be completed through a novation of the current lease allowing South Suffolk Leisure to assign the management agreement to Abbeycroft Leisure, the merged partner.
1.2 That delegation be given to the Assistant Director for Environment and Commercial Partnerships in consultation with the Cabinet Member for Communities to make the necessary changes to any legal documentation and any appropriate revisions to existing legal agreements as part of the novation process.
Reason for Decision: To strengthen the resilience of the partner operator of our leisure facilities. Taking into account the proposed £3.4million capital investment for the refurbishment of the Kingfisher Leisure Centre and replacement of Hadleigh Swimming Pool. If approved this would allow the formal merger to be completed on 1 October 2018.
Alternative Options Considered and Rejected: South Suffolk Leisure to continue operating as a small local Trust for Babergh District Council.
Any Declarations of Interest declared: A non-pecuniary interest was declared by Councillor Campbell as a Trustee of South Suffolk Leisure.
Any Dispensation Granted: None
Minutes:
Councillor Maybury, the Cabinet Member with responsibility for Communities introduced report BCa/18/11 and moved the recommendation. This was seconded by Councillor Patrick.
It was questioned how the Management Boards would be manned in the future. It was explained the intention was to have three trustees appointed to the Abbeycroft Board in order to have a 3-way split. Tracey Lloyd, the Chief Executive of South Suffolk Leisure (SSL), explained that there would be one Councillor representative on the Group who would work as an independent rather than a Councillor. They would continue to work with the Assistant Director for the Environment and Commercial Partnerships from a client point of view but would have a more enhanced relationship with the Cabinet Member for Communities to ensure they were both driving and delivering on the outcomes aligned to them.
Cabinet were confident of the way forward and hoped that the local connection would continue, as well as recruitment staying within the District. The Chief Executive for SSL explained there were no intentions for redundancy, managers had met, and it would bring greater opportunities for career advancement.
In response to a question it would be business as usual and the customer would not see any change. There would be a phased approach to any brand change.
In relation to Section 7, legal implications, the Capital Investment and the protection of the level of investment into SSL was questioned. Would the elected representative be protecting SSL facilities democratically? The Assistant Director for the Environment and Commercial Partnerships explained that in terms of the Capital Investment it would be discussed at a later date at Cabinet in order to agree the management fee going forward. He gave reassurance that the fee would be set at a particular level. In terms of elected representation onto a Board he explained that a representative from a District Council onto a Trust would mean you would have to work for the best interest of that Company. It was best to keep the partnership working and the ongoing client relationship. Appropriate legal documentation was in place.
There were concerns as to why, following the merger, the Trust would be called “Abbeycroft” and that the Memorandum of Understanding was not part of the debate. The Chief Executive of SSL explained that both Boards had been through the Memorandum of Understanding, as well as having been audited. SSL had worked with Abbeycroft since January 2018 and the Senior Leadership Team had the resilience. It was felt appropriate to revert to Abbeycroft due to the word “South”.
In response to a question it was noted that Babergh District Councillors were still landowners of the site and would continue to own the properties.
Cabinet felt it was an excellent report and both facilities were well run. Following the merger it would result in a stronger financial position. They were happy that the legal team had thoroughly inspected the proposal and it was felt as long as there was the relationship with the responsible Cabinet Member that both the wishes and aspirations of Babergh District Council would be heard.
By a unanimous vote:
It was RESOLVED:-
(1) That the merger of South Suffolk Leisure with Abbeycroft Leisure be approved. Which could be completed through a novation of the current lease allowing South Suffolk Leisure to assign the management agreement to Abbeycroft Leisure, the merged partner.
(2) That delegation be given to the Assistant Director for Environment and Commercial Partnerships in consultation with the Cabinet Member for Communities to make the necessary changes to any legal documentation and any appropriate revisions to existing legal agreements as part of the novation process.
Reason for Decision: To strengthen the resilience of the partner operator of our leisure facilities. Taking into account the proposed £3.4million capital investment for the refurbishment of the Kingfisher Leisure Centre and replacement of Hadleigh Swimming Pool. If approved this would allow the formal merger to be completed on 1 October 2018.
Supporting documents: