Agenda item

Report of the Cabinet Member Sport and Culture.
(Please note some elements of this report may need to be discussed under Section 9 - Exempt Business)

The Cabinet Member Sport and Culture introduced the report and paid tribute to the current Leisure and Culture service which provided a diverse range of services. As it was a non statutory service she emphasised that there was a risk to future delivery if it was not possible to find a sustainable and viable model for the future. She explained that the conclusion of the options appraisal process was that the establishment of a new trust was the best option to not only deliver the priority outcomes but also to attract funds not available to local government for example charitable rate relief, gift aid and other grants.

The Cabinet Member reported that  a cross-party Cabinet Member Working Group has supported the commissioning review since May 2011 and key partners and stakeholders have been kept up to the date with the review as it has progressed.

The Cabinet Member explained that as the Council proposes to enter into a contractual arrangement for the provision of leisure and cultural services it is necessary for it to undertake a limited market testing or advertisement exercise under EU Procurement Rules. The new single focused organisation would enable a sustained offering for the future and contribute to the Medium Term Financial strategy.

Subject to the recommendations being approved, the next key stage would include working up a management agreement in more detail.

The Cabinet Member Finance referred to the huge financial challenges which the Council was facing and believed the trust option represented a positive way forward. He referred to the success of Cheltenham Festivals which had previously been an in-house operation and which now attracted commercial support which would be unavailable to a local authority. The status quo was not an option. He paid tribute to the hard work of officers who had been involved in investigating options for the service.

Members welcomed the recommendations and said it was an exciting prospect for the service and hoped it would become dynamic and vibrant. They recognised that there were fears but emphasised that leisure and culture was fundamental to the Cheltenham offering so it was vital that it succeeds. A question was raised on how the Council could manage or influence outcomes if potential problems arose. In addition concern was expressed that the Trust did not become subject to a take-over by a national body.

In response the Cabinet Member Sport and Culture said that the status quo also represented a risk and the next steps were crucial in terms of drafting the Articles of Association and the Management Agreement as well as appointing the right Trustees.

The Leader of the Council concluded the debate by saying that this represented a big opportunity but emphasised that important conversations were yet to be held.

RESOLVED THAT

1. The Executive Director, in consultation with the Cabinet Member for Sport and Culture and the Borough Solicitor, be authorised to commence the processes set out in sections 4, 5 and 6 of this report to create, subject to the outcome of a procurement process, a new charitable trust. The trust would have the legal form of a charitable company limited by guarantee and broad objects to advance health, arts, sports and education. The trust would begin operation no later than 1 April 2014.

2. the draft 10 year financial plan be agreed as outlined in exempt Appendix 1.E to the business case, as amended for the 2013-14 standstill budget to be reported to Cabinet as part of the 2013-14 budget process (see section Error! Reference source not found. of this report).

3. a further report be brought back to Cabinet at a later date to agree the  memorandum and articles of association, heads of terms of the various agreements and a detailed business plan (if necessary) as set out in section Error! Reference source not found. of this report.

And Further:

4. that Council be recommended to allocate funding for one-off set up costs of £410,500, as outlined in section Error! Reference source not found. The source of funding will be recommended by the Council’s Section 151 Officer in finalising the Council's revised budget 2012/13 and the budget proposals for 2013-14 including any impact on the MTFS projections as part of the budget setting process for 2013/14, to be agreed by Council in February 2013.