Agenda item

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 corporate objectives and principles were delivered;

·         the juxtaposition of the Leisure Complex and the Crown Estate and Bus Station development  proposals including the necessity to ensure ongoing dialogue was maintained, as far as practicably possible, so that the two schemes progressed in a tandem and complimentary way;

·         the detailed elements of the business case for the enhanced  facilities so as to ensure as much use of the facilities as possible by all aspects of society,  to include health, social and a high degree of access,  paying particular attention to users’ ability (including those of disabled users), gender, age, culture and faith;

·         the implications of the enhancement on the project timetable; and

·         a request for an increased capital cost for the project of £23.2m (from the approved £18.2m) in addition to a further £1m towards project contingency, and the way in which this would be funded.

The Chair confirmed that any Member could view the Feasibility and Options Study and Business Case, which were lodged with the Client Lead Build in her office.

Recommended that Scrutiny Committee – Resources supported and requested that Executive support and Council 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.  

One Member abstained from voting on this matter.