Agenda item

For Cabinet to consider a further request for financial assistance from Freedom Leisure in line with the Council's leisure contract.

Appendix II comprises exempt information - to exclude the public (including the press) from a meeting of a committee it is necessary for the following proposition to be moved and adopted: "that the public be excluded from the meeting for Items which involve the likely disclosure of exempt information as defined in paragraph 3 of Part I of Schedule 12A of the Local Government Act 1972 (as amended) as indicated".

Councillor Boden asked members to determine whether Appendix 2 of the report, which contains information considered exempt under Schedule 3 of Paragraph 12a of the Local Government Act 1972, should be exempt thereby excluding the press and public from the meeting should it be discussed, or whether the public interest in disclosing this information outweighs the public interest in maintaining the exemption. The confidential motion was agreed

Councillor Boden then moved onto the report concerning the Freedom Leisure Contract presented by Councillor Clark.

Councillor Clark explained that it is a complex task and both parties are committed to getting the leisure facilities operating again, earning income but as efficiently as possible. She added that a phased approach is to be taken initially based on both limited facilities and opening hours, with more facilities opening week on week. If customer numbers rise, then opening hours will become longer to accommodate them. She added that these proposals are dependent on any announcement made by central Government and it is hoped that this will be later July or early August.

Councillor Boden outlined the financial impact as detailed in the report.

Councillor Wallwork said that there is a moral obligation for public services to be protected and supported. 

Cabinet AGREED to recommend that: 

3.1       Fenland District Council (“FDC”) notes Freedom’s intention to   resume service provision on a phased basis at the earliest     opportunity the government will allow, possibly late July or early             August 2020 and provides the financial relief set out in these      recommendations contingent upon its compliance with   Government guidance and Covid secure risk assessments being             completed and appropriately reviewed.

3.2      FDC defers the monthly management fee of £37,560 per month for        July - September 2020, at a cost to the Council of £112,680            repayable in accordance with the terms set out at paragraph 3.5 of           these recommendations.

3.3       FDC continues to support Freedom Leisure on an open book    basis by providing them with an interest free loan payable       monthly up to the amounts set out below and repayable in             accordance with the terms set out at paragraph 3.5 and varied   according to paragraph 3.4 of these recommendations:

July                                        £32,235          (closed cost) 

August                                  £63,825          (1st opening month) 

September                           £59,021          (2nd opening month)

Total cash support:        £155,081

With an actual opening date uncertain, it should be noted that these costs are unlikely to fall into specific months, but may be spread across the period pro-rata, depending on opening dates. 

and AGREED that: 

3.4       Cabinet authorises the Leader of the Council, in discussion with           the Portfolio Holder for Leisure and the Section 151 Officer, to      supplement the interest free loan described at paragraph 3.3 up to           a maximum total value of £200,000 in the event that predicted     income fails to meet the committed outgoings for the period. Such          additional payments to be assessed on a monthly basis with any            requests for additional relief having been made by no later than      the 3rd Monday of each month and repayable in  accordance with        the terms set out at paragraph 3.5 of these recommendations.

3.5       Repayment of the £267,761 described in paragraphs 3.2 to 3.3 of           these recommendations together with any supplementary amount       in accordance with paragraph 3.4 shall become payable through   an annual deduction of 75% of any profit generated in excess of             the levels predicted in the LOBTA. This is a change from the       current 50/50 profit share, and will be subject to the performance            of the business over the contract period.

3.6       The Monitoring Officer and s.151 Officer are authorised to put in            place all of the necessary arrangements to give effect to the            agreed recommendations to include entry into the necessary legal           arrangements and expenditure of the amounts described from existing budget provisions.