Decision Maker: Executive
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
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.
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.
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.
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.
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