Decision details

The Bexhill Leisure Centre and Bexhill Leisure Pool were operated by Freedom Leisure (FL) on a joint contract that was scheduled to expire in March 2021.  Both were well used community assets and attracted on average 340,000 visits per year.  It was noted that the Rye Leisure Centre (RLC) contract was scheduled to expire in 2026 and therefore not subject to consideration at this time.

Earlier this year, the Council approved two tranches of additional financial support to FL totalling £415,273 on an open book accounting arrangement.  Due to uncertainty in the leisure sector as a result of the COVID-19 pandemic, it was agreed not to rebuild or carry out any major refurbishment works on both Bexhill centres.  However, it was agreed that a modest refurbishment programme be undertaken.

The Bexhill Leisure Centre Steering Group reformed in November to consider options for a new and refreshed contract and specification from April 2021 to March 2024; their views had been acknowledged in the recommendations proposed.  Advice had also been sought from a specialist leisure consultant.  It was noted that the Council had negotiated a contract in principle with FL.  Cabinet was reminded that leisure services was not a statutory requirement for the Council to provide, however there was an expectation from the public that the Council would provide these services.

Cabinet considered four options, as follows:

a.     Option 1: a new three-year contract from April 2021 to March 2024 with six-month supporting payment of up to £130,000.

b.     Option 2: cease to operate leisure services in Bexhill and continue to operate the RLC until March 2026.

c.     Option 3: bring the operation of leisure services in-house.

d.     Option 4: shorten the operating hours of leisure centres to try to reduce costs.

The report outlined the advantages, disadvantages, financial implications and associated risks of all four options.

After discussion, Cabinet agreed that Option 1 be adopted, as the negotiated contract and specification enabled the Council to sustain the delivery of leisure services and incentivised FL to minimise the level of subsidy received in 2021/22.  It also provided an improved financial position on the current contract and offered a surplus share arrangement.  It was also agreed that up to £140,000 be allocated from the Capital Programme to enable minor refurbishments works to be completed on both Bexhill sites.

Leisure facilities were essential for the mental and physical well-being of the community and it was considered important to secure these services, not only in the short, but also long-term.  Gratitude was expressed to FL and their staff for continuing to provide leisure facilities during these difficult times.

RESOLVED: That:

1)    the proposed contract for the management of Bexhill Leisure Centre and Leisure Pool for 2021-24 be approved, to include six months of continued financial support payments, at a total contract cost of up to £130,000; and

2)    the proposed investment of up to £140,000 to enable the minor refurbishment of the two sites be approved and included in the Council’s Capital Programme.