Issue - meetings

To receive and consider the report of the Director of Governance.

Director of Governance Chris Moister attended and presented the report as Managing Director of Chorley Leisure Company.

Following a procurement exercise in 2019, the preferred bidder withdrew their bid due to the global change caused by Covid. The decision was made for the council to operate the leisure facilities. It was clarified that the council already owned the buildings, but leased the facilities to leisure providers.

The Leisure Company was established April 2021 and commenced operation in August 2021. The entity was considered separate from the council and held its own objectives. The governance structure of the company included the board of directors made up from the Directors of Chorley Council. The position of Managing Director should be the Director of Commercial Services, but due to the vacancy, the Managing Director was currently the Director of Governance. The other involved director is the Director of Finance.

The sole shareholder of the Leisure Company is the council and its functions were fulfilled by the Executive Cabinet.

The Director of Communities fulfilled the client role and supported the Executive Cabinet Member.

To deliver the objectives of the Leisure Company, a single year business plan was adopted that reflected the imminent priorities of the council. They were

a.    Growth of Membership Base

b.    Establishing the Branding and Company Identity

c.    Junior and 60+ and Community Programming

d.    Recruitment and Staff Development

e.    Capital Investment

Financially, the Leisure Company was a challenge, the cost of utilities had increased significantly. The cost of staff increased greater than the budgeted 2%, and the cost of living crisis was likely to impact public spending which created a risk of reduced income, especially as the decision was made not to increase costs to ensure accessibility and affordability for the community. Membership had increased 8% year on year, however, was not yet at the point achieved pre Covid.

Following the single year Business Plan, a five-year business development strategy was to be introduced with the objective to become financially self-sustained. Any surplus would be reinvested within the company and facilities, however, there was not expected to be a surplus for the foreseeable future. 

It was confirmed that there was no consideration for further investment in other companies by the Leisure Company.

Turnover of staff was high but was not unusual within the leisure industry.

It was discussed where and how the Leisure Company would be subject to scrutiny as there was limited opportunity for Member involvement outside Executive Cabinet. It was concluded that the appropriate time would be under the Communities Directorate Performance Panel.

The renovations for Brinscall Baths, which was allocated £600,000 was not yet underway, however, further surveys were required to assess the issues as required repairs may not be as extensive as first reported. The baths were currently open, but not for public swimming.

All three of the buildings, Brincasll Baths, Clayton Green and All Seasons required investment, and there were plans in place to make them more appealing to the public. It was noted that  ...  view the full minutes text for item 44