To receive an update on K2 Crawley, followed by questions and answers.
Due to the nature of the discussions within the above item, should Councillors wish to scrutinise the financial issues or aspects of any of the contractual arrangements in specific detail this may be viewed as financially/commercially sensitive and as such the meeting may need to move to Part B. (That under Section 100A (4) of the Local Government Act 1972 the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in Part 1 of Schedule 12A of the Act by virtue of the paragraph 3 - Information relating to the financial or business affairs of any particular person (including the authority holding that information)
Minutes:
Members received an update from the Head of Major Projects and Commercial Services, along with the Cabinet Member for Leisure and Wellbeing on K2 Crawley which included:
· Since 2020, the Council had repeatedly entered into contract variations in response to the Change in Law placing various restrictions on leisure centre opening during the pandemic. Under the deeds of variation the financial risk associated with K2 Crawley had rested with the Council. Following negotiations, the Council has been able to return to payments which step up to the full contract payments over the coming years. These contract payments were in excess of previous assumptions in the Council’s MTFS and will help to offset the requirement for savings elsewhere. The reversion to contract will also see the financial risk returning to Everyone Active (EA). The current contract expired in November 2028.
· Membership and usage levels were back to pre-pandemic levels. There were more monthly memberships compared to annual, and this was attributed to the cost of living concerns and the periodic closures over the pandemic period. EA had been conscious of the ‘price point’ in terms of membership costs together with the need to increase attendance.
· Various schemes and activities had been particularly successful post-pandemic, including the junior swim programme. The events programme and associated secondary spend was also now picking up.
· There remained a strong focus on health and wellbeing, value for money services and the decarbonisation agenda, whilst re-investing in the facility. It was important to continue the capital replacement programme to ensure it remained a key and prominent venue and whilst K2 Crawley was generally a very efficient building, further work was ongoing to reduce the overall carbon footprint.
Commission Members then raised a number of queries. The issues raised and the key responses included:
· Recognition that the membership numbers had in the past fluctuated slightly throughout the year (for example post-Christmas). However, incentives were offered on varying membership schemes, which potentially could be promoted more widely. It was noted that the demographic trends were similar to pre-pandemic, however, it was apparent that individuals if members were not activity using the facilities, they were more inclined to cancel their memberships than pre-pandemic.
· Clarification was sought and provided on the risks associated with the deed of variation, the Council’s position and the correlation with other local authorities throughout this period.
· Acknowledged that there was a high turnover of staff in some areas at K2 Crawley as there was difficulty in retention to various roles (lifeguards). Whilst the contract included the national living wage, different sectors may offer comparable wages. EA has operated a personal development programme along with opportunities for training and qualifications in order to retain staff within the leisure management industry.
· Recognition that the gym at the Bewbush Centre was part of the leisure management contract with EA. The attendance numbers had decreased slightly post-pandemic, however these were still significantly higher than originally targeted. It was noted that Kilnwood Vale was in close proximity and was included within EA’s marketing campaign.
· Acknowledgement that the smaller sites at Ifield Community College and Oriel High School were built in 2005 and as part of the original PFI project it was a pre-requisite to ensure the sites were accessible for the community.
· Recognition that K2 Crawley hosted many local, regional, national and international events, and work also continued with partners and businesses to both minimise impact on the local community and maximise success.
RESOLVED
That the Commission noted the update and progress, with the views expressed being acknowledged and documented by the officers. The Commission welcomed the update and noted the continued partnership working through a challenging period.