Agenda item

To consider the Sandwell Leisure Trust Business Plan 2021-24.

Resolved:

1.1 That the business plan presented bySandwell Leisure Trust (SLT) for 2021-2024 (as set out at appendix 1) inaccordance with the Management and Funding Agreement dated 31^st March 2004 (“hereinafter “the Agreement”) be refused.

1.2 That the Director of Borough Economy be given authority to:

a) formally notify SLT that the Council resolved not to approve SLT’s Business
Plan for 2021-2024 (as set out at appendix 1) and does not agree the
unitary payments requested by SLT for the years 2022/23 and 2023/24
(as set out at appendix 2).

b) serve reasonable notice of termination of the Agreement upon SLT due
to the Council and SLT being unable to agree a business plan and
unitary payment for the years 2021-2024 pursuant to clause 41.18.

c) bring a further report to Cabinet detailing a full Options Appraisal of
future leisure service provision/delivery options.

d) negotiate and agree with SLT such arrangements as are deemed
appropriate and/or necessary, in consultation with the Cabinet Member
for Culture and Tourism, to enable effective leisure service provision
during the notice period under paragraph 1.2(b) above.

e) procure and appoint of an interim leisure provider, in consultation with
the Cabinet Member for Culture and Tourism, in the event that SLT
disputes the and walks away from the Agreement.

1.3 That the Director of Law and Governance & Monitoring Officer and
Director of Borough Economy be authorised to negotiate, agree and
execute any agreements, notices and/or documents necessary to give
effect to paragraph 1.2(a) – (e) above.

Consideration was given to the business plan presented by Sandwell Leisure Trust (SLT) for 2021-2024.

Reason for Decision

Under the terms of the Management and Funding Agreement (MFA), the ‘contract’, there was a requirement for a three-year Business Plan to be in place and agreed with Sandwell Leisure Trust.

Negotiations relating to the business plan had been ongoing since August 2020. In early December 2021 a revised deadline for the resolution of all outstanding matters relating to the Business Plan 2021-2024 was agreed with Sandwell Leisure Trust. All matters were to be resolved by 24 January 2022.

Resolving matters related to the Sandwell Leisure Trust Business Plan 2021-2024 would ensure the sustainable delivery of leisure services in Sandwell, providing local people with local opportunities to be active, contributing to health and well-being.

The Cabinet Member for Culture and Tourism confirmed that the proposal would not have an impact on the delivery of the Aquatic Centre and the Commonwealth Games. 

The Cabinet Member for Culture and Tourism also undertook to consider recommendations made by the Budget and Corporate Scrutiny Management Board in relation to the creation of a comprehensive wellbeing service due to the close connection between health and leisure. 

Alternative Options Considered

·               To extend the negotiation period;

·               Accepting the Business Plan was not a recommended option.

In the event of termination, future alternative delivery arrangements would be progressed and a full Options Appraisal Report presented to Cabinet.

Agreed:-

(1)     that the business plan presented by Sandwell Leisure Trust (SLT) for 2021-2024 in accordance with the Management and Funding Agreement dated 31^st March 2004 (“hereinafter “the Agreement”) be refused;

(2)     that the Director of Borough Economy be given authority to:

(a)     Formally notify SLT that the Council resolved not to approve SLT’s Business Plan for 2021-2024 (as set out at appendix 1 of the report as now submitted) and does not agree the unitary payments requested by SLT for the years 2022/23 and 2023/24 (as set out at appendix 2 of the report as now submitted).

(b)     Serve reasonable notice of termination of the Agreement upon SLT due to the Council and SLT being unable to agree a business plan and
unitary payment for the years 2021-2024 pursuant to clause 41.18.

(c)     Bring a further report to Cabinet detailing a full Options Appraisal of future leisure service provision/delivery options.

(d)     Negotiate and agree with SLT such arrangements as are deemed appropriate and/or necessary, in consultation with the Cabinet Member for Culture and Tourism, to enable effective leisure service provision during the notice period under paragraph (2)(b) above.

(e)     Procure and appoint of an interim leisure provider, in consultation with the Cabinet Member for Culture and Tourism, in the event that SLT disputes the and walks away from the Agreement.

(3)     that the Director of Law and Governance and Monitoring Officer and Director of Borough Economy be authorised to negotiate, agree and execute any agreements, notices and/or documents necessary to give effect to paragraph (2) (a) – (e) above.

[Councillor Carmichael left the meeting for the duration of this item]