Report to:

Overview and Scrutiny Committee

Date:

3rd November 2022

Title:

Leisure Contract - Fusion Quarterly Q2 Update Report

Portfolio Area:

Health & Wellbeing – Cllr Jonathan Hawkins

Wards Affected:

All

Urgent Decision:

N

Approval and clearance obtained:

Y

Date next steps can be taken: Immediately

 

Author:

Jon Parkinson

Role:

Specialist (Leisure) Assets

Contact:

jon.parkinson@swdevon.gov.uk

 

 

RECOMMENDATION:

That the Overview and Scrutiny Committee note the contents and progress of Fusion’s Quarterly Report – Q2 for 2022.

 

 

1     Executive summary

1.1        This report provides an update on Fusion’s Quarter 2 performance and a presentation summary for the past 3 months shown in Appendix A.

2     Background

2.1        Nationally the leisure sector continues to experience difficult times following the slow recovery from Covid-19 in the operations of leisure centres.

2.2        The current global and UK economic instability, the energy crisis, the cost of living challenges, increased supply chain costs and ongoing staff recruitment and retention issues have all resulted in costs increasing and income levels not growing as expected.

2.3        The provision of leisure centres is a discretionary service. However the activities align with the Council’s corporate strategic plan – ‘Better Lives for All’ in providing quality services and community wellbeing. This includes increasing active participation in sport and leisure activities.

3     Outcomes/outputs

 

3.1        The leisure contract sets out specific performance indicators which Fusion will deliver through its plans and targets, these include being a more active district, promoting community development, improving health and wellbeing of local residents, improving quality of services and delivering environmental improvements.

3.2        The attached quarterly presentation from Fusion highlights key performance areas and provides an overview on new marketing, activity programmes and a new post for Sport and Community Development in the South Hams.

3.3        For August the Centres had their highest usage level, reaching 65,000 visits, a positive performance driven by family activities, casual swimming and the influx of visitors to the region.

3.4        Overall leisure centre memberships in September ‘22 were at 87% compared to pre-Covid levels, 5,857 against 6,764 in March’20;

Total

March 2020

September 2022

%

Dartmouth

560

558

99%

Ivybridge

1,665

1,386

83%

Quayside

(Kingsbridge)

1,523

1,315

86%

Totnes

1,117

808

72%

Meadowlands

(Tavistock)

1,075

1,145

106%

Parklands

(Okehampton)

824

645

78%

Total

6,764

5,857

87%

 

 

 

 

 

 

 

 

 

Swim school has been in very high demand and overall memberships have passed pre-Covid levels, being at 102% compared to March ’20.

Total

March 2020

September 2022

%

Dartmouth

162

123

76%

Ivybridge

820

1,004

122%

Quayside

(Kingsbridge)

778

647

83%

Totnes

402

386

96%

Meadowlands

(Tavistock)

519

496

96%

Parklands

(Okehampton)

286

364

127%

Total

2,967

3,020

102%

 

 

 

 

 

 

 

 

 

 

3.5        The centre usage figures and recovery from the Covid-19 restrictions have been good and are in line with national data trends taken from Sport England – Moving Communities up to January 2022. No further recovery data has been provided for this year.

4     Proposed Way Forward

4.1        The solar energy project, which received approval for a change in its funding recommendation by Council in July, has been delayed by a change in contractor to install the panels. Fusion are still seeking to appoint an alternative contractor following site visits and a final tender submission. They have received two initial quotes, both of which look viable at this time.

 

4.2        For Totnes Leisure Centre, Fusion have recently taken the decision not to proceed with the proposed investment at the facility due to the current business case not being viable at this time. Various factors are currently facing Fusion, as highlighted for the national leisure sector, in regards to rising operational, staffing and energy costs, cost of living crisis, rising building costs and the overall economic climate regarding inflation and interest rates.

 

4.3        The local Totnes – Tadpool project group will consider the next steps as to how the facility can be improved and measures to increase usage.

 

 

5     Implications

 

Implications

 

Relevant
to
proposals
Y/N

Details and proposed measures to address

Legal/Governance

 

Y

Leisure is a discretionary service. The management of the council’s leisure centres are agreed in a formal contract agreement with appropriate reporting structures.

 

 

Financial

 

Y

The investment borrowing and contract arrangements were approved as part of the contract award.

Management fee changes were reported at Executive on 3rd March 2022 E.94/21 and approved by Council on 31st March 2022.

Management fee payments have been received from Fusion for the 2021/22 financial year.

For 2022/23 management fee payments, these have been confirmed with Fusion and monthly payments will be made from October ’22 to March ’23.

All management fee payments are set out with the appropriate indexation applied.

 

Risk

Y

Mitigated through the formal procurement process and the business case appraisal.

Supporting Corporate Strategy

Y

Council, Communities, Wellbeing

Climate Change – Carbon / Biodiversity Impact

Y

Contract targets to reduce energy usage

Comprehensive Impact Assessment Implications

Equality and Diversity

Y

All leisure centres remain open and have activities open for all sections of the community

Safeguarding

 

Y

Relevant policies and practices in place through the contract.

Community Safety, Crime and Disorder

N

 

 

Health, Safety and Wellbeing

Y

Improved though better facilities and part of service delivery.

Other implications

 

 

none

 

 

Supporting Information

 

Appendix A – Fusion Quarterly Report Q2; July - September 2022