Decision details

Support for Everyone Active to enable recovery from the impact of COVID-19

Decision Maker: Executive

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To outline the support offered by Bracknell Forest Council to Everyone Active (EA) to enable recovery from the impact of the Covid-19 pandemic and to ask for Executive approval for that support.

Decision:

RESOLVED that

 

       i.          Everyone Active is granted a management fee holiday for the full

year 2020/21, inclusive of the relief for the first quarter’s management fee

previously approved by the Executive on 28 April 2020;

 

      ii.          the Council will underwrite the estimated reopening costs and losses for Everyone Active for the period July 2020 to March 2021,  with the actual sum to be calculated on an “open book” basis in accordance with the approach set out in paragraph 5.15 and in Appendix 2 of the Director:Resources report.

 

     iii.          the revised surplus share mechanism described in 5.20 that offers the potential, subject to actual trading performance, for the Council to recoup

the costs incurred in respect of recommendation 2.2 be approved over the remaining life of the contract with Everyone Active up to 31st March 2033.

Reasons for the decision:

The government has set out its plan for returning life to as normal as possible

following the impact of the Coronavirus pandemic in a stepped programme. This

programme has released sectors of the economy in a phased manner, while still

keeping an eye on protecting communities and the health services. It was expected

that this would include the permitted re-opening of leisure services on the 4th July,

however this was not the case. An announcement was made on the 9th July that

Indoor gyms, swimming pools and sports facilities can reopen from 25 July. This is

the date that the Council and EA are now working towards for reopening Bracknell

Leisure Centre.

Alternative options considered:

The Executive could determine not to support EA’s cashflow position as proposed.

The consequence of this would be that EA would need to take a commercial view on

whether to re-open the facilities or not. If they remain closed due to trading

uncertainties, the costs for hibernating buildings will continue and increase over time,

with the council having to meet these costs, with no likely prospect of recovering

them.

Interests and Nature of Interests Declared:

None

Reason Key: Expenditure > £400,000;

Wards Affected: (All Wards);

Financial Impact: To be detailed in the report but contains exempt information.

Declarations: None

Subject to Urgent Proceedings: No

Making Representations: In writing to the Executive Director: Delivery

Other reasons / organisations consulted

Discussions with relevant officers.

Consultees

Director: Finance

Borough Solicitor

Contact: Damian James, Assistant Director: Contract Services Email: damian.james@bracknell-forest.gov.uk Tel: 01344 355157.

Urgent item?: Yes

Report author: Damian James

Publication date: 14/07/2020

Date of decision: 14/07/2020

Decided at meeting: 14/07/2020 - Executive

Effective from: 22/07/2020

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    Contact Information

    Democratic services

    Email: committee@bracknell-forest.gov.uk