Agenda item

Report of the Cabinet Member Healthy Lifestyles to follow as a supplement to this agenda

The Cabinet Member Healthy Lifestyles introduced the report which followed on from the update report presented to Cabinet in June recommending it note the intention to award a contract to The Cheltenham Trust from 1 October 2014. She highlighted that the project was not solely focussed on achieving savings for the Council but concerned protecting those important services which contributed to the delivery of the Council’s corporate objectives.

The Cabinet Member explained that the contract would be for a period of 10 years which could be extended for an extra five and this linked to the Leases which were for 15 years with a break clause at 10 years. The management fee would be payable to the Cheltenham trust as set out in paragraph 8.1.6 of the report. In terms of net annual savings the Cabinet Member explained that these were £125k in 2014/15, £407k in 15/16 rising to £833k by 2018/19.These had exceeded original estimates as the Shadow Trust had developed its business plan. The business plan had been through the Council’s due diligence process and the detail of this was set out in section 12 of the report.

The Cabinet Member highlighted that this would be an outcomes based contract with three high level target outcomes as follows : 1. People in Cheltenham lead healthier, fulfilling and active lives; 2. People in Cheltenham are inspired to take part and gain valuable skills and experiences; 3. Cheltenham is seen as a world class place to live, work, study and visit. She noted that whilst the Trust was expected to deliver against the specification the Council did not intend to dictate how this was achieved. The draft heads of terms for support services were also outlined in the report and the Trust had considered its requirements in this respect and these were set out in section 7 of the report. In terms of performance management monitoring the Cabinet Member highlighted that informal strategic meetings with herself as Cabinet member, the Leader, the Chief Executive and Chair of Trustees had already taken place. It was important that these opportunities were built on with the independent body in delivering the future of these services for the people of Cheltenham and in her view partnership working was a crucial path to follow.

In summing up the Cabinet Member paid tribute to the commitment and enthusiasm of the Shadow Trust and thanked them and other officers involved in this project for their work.

Members recognised the efforts that had been made in realising this project and particular thanks were given to the Deputy Chief Executive, the Director Resources, the Project Manager and Legal and Property Services. The Trust would be taking over a very strong team of enterprising managers and a diverse board of Trustees. The Cabinet Member Finance highlighted the continuing commitment to work with the Trust particularly on the strategic approach to investment. Finally, the Leader informed the meeting that the Trust was still awaiting confirmation from the Charity Commission that The Cheltenham Trust had been registered as a charitable body. He paid tribute to the positive progress which had been made and wished the Trust all the very best in its work.

RESOLVED THAT

1.  Subject to The Cheltenham Trust being registered as a charity by the Charities Commission before 1 October 2014,

1.1  It be agreed that the following services will be undertaken by The Cheltenham Trust, or where relevant its trading subsidiary, Cheltenham Leisure and Culture Limited:

·         Leisure@ Cheltenham

·         Prince of Wales Stadium

·         Town Hall

·         Pittville Pump Room

·         The Wilson (Cheltenham Art Gallery and Museum)

·         Tourism Services and Tourist Information Centre

·         Sport, Play and Healthy Lifestyles

1.2  the proposed management fee, and the arrangements for varying it, as set out in sections 8.1 and 8.2 of this report be approved.

1.3  Authority be delegated to the Deputy Chief Executive, in consultation with the Cabinet Member for Healthy Lifestyles, S151 Officer and Borough Solicitor to finalise and complete the contract, leases, licences and all other relevant contracts and legal documentation as necessary to enable the Trust to commence business from 1 October 2014.

1.4  Authority be delegated to the Deputy Chief Executive, in consultation with the Cabinet Member for Healthy Lifestyles, S151 Officer and Borough Solicitor for the Council to enter into a service level contract with The Cheltenham Trust for the provision of property services as outlined in section 5.4.3 of this report.

2.  in the event of The Cheltenham Trust not being registered as a charity before 1 October 2014, or another critical issue preventing the transfer of services by that date that

2.1  authority be delegated to the Deputy Chief Executive, in consultation with the Cabinet Member for Healthy Lifestyles, the Cabinet Member for Finance, S151 Officer and Borough Solicitor for the Council to complete the transfer, if all impediments are removed, at any date up to and including 1 November 2014.

2.2  In the event that services are not transferred in accordance with recommendation 2.1 that a further report be brought to the Cabinet meeting on 11 November 2014.

3  It be noted that The Cheltenham Trust has been granted Admitted Body status to the Local Government Pension Scheme and that, as previously advised to Cabinet in the June report, this Council will be liable for any pension deficit on former employees of the Council who transfer to the Trust.