Issue - meetings

To consider the report of the Deputy Chief Executive.

Scrutiny Committee – Resources considered the report at its meeting on 29 July 2015 and its comments will be reported.

The report of the Deputy Chief Executive was submitted to consider the Business Case for enhancing facilities for the development of the new leisure complex and swimming pool. Members were also circulated the comments of Scrutiny Committee – Resources.

The Deputy Chief Executive advised Members of the revised figures for the additional offering.

At the invitation of the Leader, Councillor Bull, Chair of Scrutiny Committee – Resources addressed Executive to advise of the discussion that had taken place at its meeting on 29 July 2015. He thanked the Leader for attending and explaining how the leisure complex and swimming pool would be funded. A robust debate had taken place and Members had focused on the business case. The majority of Members supported the recommendation for the compelling business case to invest the additional £6m to provide an enhanced leisure complex and swimming pool; one Member had abstained from voting.

Members discussed the proposals whilst the majority of Members supported the compelling business case for the enhanced leisure complex and swimming pool, one Member raised concerns regarding the proposals.

The Leader commented that a new leisure complex with enhanced facilities would be seen as a great achievement for the city and at no extra cost to council tax payers.

RECOMMENDED to Council to acknowledge and approve:-

(1)                    that there was a compelling business case to invest an additional £6m to provide an enhanced leisure complex and swimming pool; and also 

(2)                    following the statement from the Leader of the Council, it was further recommended that the funding for the £26m should not result in an increase in the Council’s underlying debt, noting that £8m has already been set aside from New Homes Bonus and that a further £10m will be set aside from New Homes Bonus over the next five years, The additional £8m coming from Community Infrastructure Levy and capital receipts.  

(In accordance with Standing Order no.43, Councillor Leadbetter requested that his voting against this recommendation be recorded)

To consider the report of the Deputy Chief Executive/Exeter Active Senior Responsible Officer.

Councillor Edwards attended the meeting having given notice under Standing Order 44 to speak on this item.

The Housing Development Manager and Client Lead Build presented the report and invited Members of Scrutiny Committee  - Resources to consider the business case for enhancing the facilities within the new leisure complex and swimming pool, and to determine whether Executive should be requested to approve additional capital funding.  She provided an overview of the business case, which was based upon additional capital funding to enhance the commercialisation of the project, and enhance the revenue generation over and above the proposed additional capital investment over a 25 year period. It would also provide an increased level of project contingency to take account of third party dependencies. All due diligence had been undertaken on the current programme to ensure a high degree of confidence was encapsulated.  A copy of the business case was attached to the report.

The enhanced facilities were set out as follows :-

• an increase from 100 to 150 fitness stations and size of the exercise studio areas from 150 to 250 sq.m.
• a facility mix with a greater emphasis on the social aspects of the facility including a larger soft play area, adding in a movable floor to the main  pool to offer greater accessibility and flexibility and programming facility.
• an increase to the Spa proposition from a modest health suite of 70 sq.m of poolside sauna and steam room facility to 350 sq.m with saunas, steam rooms and a hydrotherapy pool.

A request for increased capital cost from £18.2m to £23.2m was made and Members were told the additional revenue that would be generated. The Assistant Director Finance explained the assumptions that had been built into the business case regarding the funding of the project so that the business case identified surplus was a robust figure. 

Councillor Edwards, who had requested to speak under Standing Order 44, referred to the agreed funding for the £20m swimming pool and leisure complex, or £26m, if subsequently agreed by Council, and this would not increase the Council’s underlying debt.  A sum of £8m had already been set aside from the New Homes Bonus and it fully intended that a further £10m would be to set aside over the next five years.  The additional £2m, or £8m as agreed, would come from the Community Infrastructure Levy and capital receipts.  The City Council would build a new leisure complex with enhanced facilities, but at no extra cost to the council tax payers of Exeter and this should be seen as a great achievement.

The Design Team and officers working on the project were also present at the meeting and answered Members’ questions.

A full discussion ensued on all aspects of the proposal including:-

·         the ongoing maintenance costs of the Pyramids Swimming Pool which were no longer sustainable and sustainability of the new leisure complex;

·         the way in which the new leisure facility would be operated and managed, including branding, and ensuring that the Council’s  ...  view the full minutes text for item 41