Agenda item

Councillor Josie Parkhouse (Portfolio Holder Leisure Services & Physical Activity) to present a report on her portfolio.

Councillor Parkhouse reported on the Leisure & Physical Activity areas of her Portfolio and detailed the issues relating to achieving the Council’s published priorities, major ongoing programmes of work, issues impacting delivery, financial performance, budget requirements and potential changes being considered.

The Portfolio Holder reported on the following key areas which included:-

·      the decision to bring leisure operations in house which had offered a strategic and joined up approach linking with the Council’s Live and Move Strategy to deliver activity across the city.

·      the teams were working to address pockets of inactivity in the city.

·      the teams were working with Devon Wildlife Trust to improve accessibility and signage in both the Valley Parks and the 13 Mile Green Circle.

·      the updated Playing Pitch Strategy would protect those green areas of the city. Consultation with over 100 local sports clubs had enabled mapping of pitches to identify current and future use.

·      energy price rises had impacted on the leisure sector overall, and whilst not such an issue for St Sidwell’s Point (SSP), there would be an impact on the other five sites in the city.

·      the national shortage of swimming instructors and lifeguards was exacerbated in Exeter as many staff were university students who left the city during the busier holiday periods.

·      every effort was being made to ensure the changes in staffing levels had minimal impact on the customer experience with the high quality service was maintained and managed within budget.

·      a concessionary offer similar to the former X Card may be considered.

·      the Council’s Net Zero team had submitted an application to the Decarbonisation Fund in respect of the Riverside Leisure Centre and the Isca Centre, and were awaiting the outcome of the bid.

·      well being programmes such as ‘This Girl Can’ had offered free sessions at the Wonford Leisure Centre for women and girls living in Wonford; a NHS Staff well-being programme tailored to the shift patterns of the workforce was immediately oversubscribed, and a new 12 week well-being programme will be open to the wider population to encourage more activity.

The Portfolio Holder responded to the following questions from Members:-

·      the crèche had a significant cost implication, despite there being no similar provision in the city and all options were considered.

The Director advised that the original modelling for the crèche was based on the expectation of a maximum of 2,000 sessions, but even at capacity, the running cost of £45 a session was unsustainable.

·      a request would be made to the Service Lead Active and Healthy People to contact ward councillors for St David’s around increasing activity levels in areas of deprivation to discuss initiatives.

·      following discussions with the Director, the technology used at a small data centre at Exmouth pool would be discussed at a meeting with the Net Zero team.

·      Northbrook Pool was a fantastic asset, but managing the opening hours with limited staffing capacity posed some challenges. A trial of different opening hours would take place at the end of March, and the May half term to identify the needs of the local community.

The Director responded to the following questions from Members:-

·      bringing the leisure service in house, had certainly resulted in more control and a better service for the customer.

·      rather than focusing only on using social media for marketing, push notifications, direct email marketing, the team on site and word of mouth were all used.

·      the pilots for social prescribing courses had worked well. A member of staff in a social prescribing role had been employed.

·      SSP could be offered as a venue through Visit Exeter and Visit Conference Exeter, but there had to be a balance of the facilities for all users.

·      two local authorities nearby had continued to outsource their leisure provision and had a higher price point. 

·      consultation to deliver the staff and structural changes was still taking place..

·      work was taking place with sports science students at Exeter College to help overcome some challenges with recruitment, but there was still a wider recruitment issue across the country.

·      the energy was purchased in bulk with the support of the Council’s Procurement Officer to attract a better rate, but they were aware of the LGA National Energy Category strategy.

·      the Pyramids site had been sold, with the disposal from the asset coming to the Council. 

The Portfolio Holder responded to advance questions received from Councillor Jobson, which were asked by Councillor Leadbetter in her absence.  The responses were set out in italics below:-

Leisure membership

1.   Was the target of 10,000 memberships based on the amount required to pay staff costs, running costs, maintenance and repair and interest/capital payments on the debt incurred?

The 10,000 figure quoted was an internal sales target for all six sites. It was based on competitor analysis and potential use on a single price membership (£25 for all sites) where casual use was allowed, there was no joining fee or exit fee.

When the leisure service was brought in house a sector expert had been working with officers to review the wet side and dry facilities, and commercial activity. The teams work to targets in all areas. Annual membership was just one part of income to the leisure service across the six sites. Income also includes casual use, room hire, pool hire, food and beverage sales. The target was based on what membership it was thought the facilities could attract given the different dynamics. There was not a one size fits all across the six sites.

2.   If not, what no of memberships at current rates is required to pay such costs?

Income was not just from monthly memberships. It was hard to model for a price rise, some people stop coming, so this also needs to be included.

For the leisure service to be operationally cost neutral you would need to increase all income streams to cover the £2 million leisure currently requires – if there was no attrition the membership would be £50 to £100 to reach a break-even point even with the 10,000 membership numbers.

3.   It is understood that in excess of 12,000 memberships was achieved in the first year, in view of the recently imposed increased membership charges how short was this number of memberships from achieving a break even position?

The leisure service including SSP was still in its first year so the final position was not yet known. There are no joining or exit fees or contract so membership numbers varied from month to month and the trends and patterns have not yet been established. Only part of the income comes from monthly memberships. All centres require a subsidy given the way the service was designed to provide access to people at an affordable price, in-house staffing and the huge increases in energy costs.

In response to a further question on membership numbers, whilst there had been some attrition, the figures had levelled as other members had stayed for the spa facilities.

Potential changes to services/provisions being considered

1.   If the crèche closes at St Sidwell’s Point what assessment has been undertaken of the impact of that closure on a potential loss of memberships

Officers had looked at the use of the crèche and modelled different variations of loss against probability. The crèche was a unique service but there had been a high level of subsidy required.

2.   What assessment has been undertaken as to whether the increase in Membership subscriptions will likely result in a reduction in the number of membership subscriptions.

Modelling had been done and considered the impact of the cost of living increase on people’s disposable income and the fact that Exeter Leisure does not charge a joining fee or have a minimum contract. The modelling was commercially sensitive.

3.   The reports all talk of a £2 million subsidy from Exeter City Council to the Leisure Service – what does this subsidy cover – is it running costs/staff costs etc or the repayment of the debt or both?

The subsidy included all expenditure associated with the service – such as running costs and now increased energy costs, and the high level of staff needed.  Repayment of the debt came under another budget line.

The Director added that in terms of bringing the service in house, the cost to the Council may have been less, but the cost to the consumer would be considerably higher.

The Portfolio Holder responded to an additional comment on the previous commitment made for free swimming lessons for children. The Director added that it had been anticipated that a commercial operator would run SSP. The impact of the impact and a shortage of qualified swimming instructors had resulted in a significant backlog and a post pandemic model of free lessons was no longer feasible. The Government was bringing in legislation for compulsory swimming lessons in schools and the Council anticipated working with schools to facilitate this.  The Director also responded to a Member’s question on subsidies for children in care, and care givers and confirmed that the Portfolio Holder had asked him to look at a model of concessionary membership as part of the service’s budgetary work.

Members noted the report.