PAPER B4

 

                                                                                                                       Purpose : For  Decision

 

Committee :     EXECUTIVE

 

Date :               21 MAY 2002

 

Title :               EXTERNALISATION OF LEISURE SERVICES

 

PORTFOLIO HOLDER – TOURISM AND LEISURE

 

SUMMARY/PURPOSE

 

Members are asked to approve a timetable and process to achieve the externalisation of the leisure services provided by it through Wight Leisure, by 1 October 2002.

 

BACKGROUND

 

At its meeting of 7th May 2001 the Executive agreed to externalise the delivery of the Council’s leisure services provided through Wight Leisure to a Not for Profit Distributing Organisation (NPDO).

 

This report sets out a process and timetable at Annex 1 for the agreed externalisation.  It is felt that, with the goodwill and best endeavours of all parties, it will be possible to achieve the externalisation by 1October 2002.  Essentially there are a number of issues to be addressed as follows:-

 

Business Plan Analysis

 

The NPDO needs to submit to the Council its proposals for delivering the services for the first year of its agreement with the Council.  This plan will set out the targets that it intends to achieve, its proposals for programming, pricing and opening hours.  These targets should all be set within the context of the Best Value Improvement Plan for the services.

 

Any submission will need to be reviewed and agreed by the Council to ensure that its objectives will be achieved through the business plan.  It may be that some points need to be negotiated around to ensure that the plan realises the objectives of both parties.

 

Medina Leisure Centre

 

As the Leisure Centre is a dual use facility, it will be necessary to assign the Council’s dual use agreement with the school to the NPDO.  This will require the consent of the school.  Also, the agreement has been under review for some time now.  This will need to be concluded before any assignment can be considered.

 

Transfer of Staff

 

The Isle of Wight Council is presently the employer of all of the staff delivering leisure services. 


Their transfer to a NPDO falls within the parameters of the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE).  The employees’ terms and conditions of employment (including pension rights) should continue with the new employer as though it had been the original employer.

 

Under Employment Law there is a requirement for the Council to consult with the representatives of the affected employees on transfers and their employment implications.  This consultation must be undertaken, “in good time…. with a view to seeking agreement.”

 

Production of a Transfer Agreement

 

The purpose of the transfer agreement is to formally transfer the “assets” of the service currently provided by the Council to the new NPDO.  The assets to be transferred will include the equipment, stock, contracts and the employees.  Exactly which assets are to be transferred will be established in the finally agreed business plan.

 

Completion of a Funding Agreement

 

The funding agreement will set out that the Council is offering funding to the NPDO to provide the services as set out in the business plan.  It will set out how the grant payments will be made and the way in which the NPDO will be expected to comply with the Council’s monitoring and review processes.  Issues of variations to the business plan, dispute resolution and termination will also be covered by the agreement.

 

Preparation of Leases

 

The leases will specify the terms and conditions for the NPDO’s occupation of the Council’s premises.  They will set out the Council’s and the NPDO’s obligations for the repairs and maintenance of the buildings, how they are to be used and at what price.  Some of these terms will be reliant on the final nature of the agreed business plan.

 

Other Issues

 

As can be seen from the actions listed, much of the detailed work in the externalisation process will come via a negotiation process with the embryonic NPDO.  It will be important to ensure that Members are fully aware of and signed up to all aspects of the final agreements with the NPDO. The most effective way to do this would be to invite a task group of the Economic Development, Planning, Tourism and Leisure Select Committee to oversee the externalisation process with reports being referred to the Executive for final approval as agreements are reached.

 

OUTCOME OF CONSULTATIONS

 

As previously reported in the Best Value Review.

 

FINANCIAL IMPLICATIONS

 

The financial implications for the Council will become clear once a business plan is received from the NPDO.

A sum of approximately £20,000 has been set aside in the budget to meet the Council’s costs in any externalisation process.

 

LEGAL IMPLICATIONS

 

The Council has received legal advice that it is within its powers to externalise its leisure services.

 

OPTIONS

 

1.                  The Services be transferred to a NPDO with effect from 1st October 2002.

2.                  The timetable for the transfer be as set out in Annex 1.

3.                  The Economic Development, Planning, Tourism and Leisure Select Committee oversee the negotiations in respect of all matters relating to the transfer.

 

RECOMMENDATIONS

 

That options 1 to 3 be adopted and that the final details of the agreements with the NPDO be agreed by the Executive at its meeting scheduled for 27 August.

 

BACKGROUND PAPERS

 

Executive Committee, 7 May 2002 - Paper C, “Wight Leisure Best Value Review”.

Wight Leisure Externalisation files 1 - 4.

Advice from Lawrence Graham Solicitors, July 2001.

 

ADDITIONAL INFORMATION

 

None

 

Contact Point : John Metcalfe , ( 823825

 

 

 

A KAYE

Strategic Director, Education and Community Development

M JARMAN

Portfolio Holder – Tourism and Leisure

 

 

          Annex 1

 

Proposed Timetable for the Externalisation of Leisure Services

 

Provided through Wight Leisure

 

            ACTIONS                                                                                             DUE DATE

                                                                                                                        (Week ending)

1.         Receive proposed Business Plan from NPDO                         2 June

2.         Analysis of business plan for:-                                                 23 June

-          financial sustainability

-          implications for remaining Council services

-          ability to meet best value improvement plan

 

3.         Negotiate and agree final details of business plan                              14 July

4.         Prepare Transfer Agreement                                                               14 July

5.         Negotiate and agree Transfer Agreement                                           8 September

6.         Prepare Funding Agreement                                                               14 July

7.         Negotiate and agree Funding Agreement                                            8 September

8.         Prepare Leases                                                                                   4 August

9.         Negotiate and agree leases                                                                 15 September

10.       Agree Dual Use Agreement for Medina Leisure Centre                       21 July

11.       Agree assignment of Dual Use Agreement                                          8 September

12.       Staff Consultation commences                                                            9 June

 

NPDO TAKES OVER SERVICES 1 OCTOBER 2002