Issue - meetings

RESOLVED:  That

1.  The option entitled ‘minor practical improvements’ be pursued;

2.  Detailed plans for the minor practical improvements be developed and included in the tender documentation;

3.  The capital sum of £2 million to deliver these works be identified in the Medium-Term Financial Strategy and in the 2023/24 capital programme;

4.  The Director of Finance, Resources and Business Improvement be given delegated authority, in consultation with the Lead Member for Leisure and Arts, to lead a procurement process and invite tenders for the delivery of the minor practical improvements;

5.  After the completion of the tender process, delegated authority be given to the Head of Mid Kent Legal Services to enter into such contracts as required to complete the contract award and commence the minor practical improvements;

6.  A contract extension with Maidstone Leisure Trust and Serco Leisure Ltd for the continued operation of the centre until 2031 be pursued by the Council; and

7.  Feasibility work on the long-term future of the centre and all alternative options and provision be continued.

(See Record of Decision)

Councillor Russell, the Lead Member for Leisure and Arts, introduced a report setting out future options for Maidstone Leisure Centre given the impending expiry of the current operator’s contract, the condition of the building and the Council’s commitment to promoting health and well-being.  The Lead Member explained that:

·  The purpose of the report was to provide an update on the current position and the background to that.  She had introduced Option 3D (Minor Practical Improvements to the Existing Leisure Centre) because, in the current economic climate, she did not consider the time was right to embark on what would represent one of the biggest capital projects for the Council.

·  In early 2022, cost estimates were obtained for the refurbishment of the existing leisure centre and new facilities and the refurbishment (£30m) was almost as expensive as a new build (£35m).  Since being obtained, these estimates would have increased significantly due to inflation and supply chain challenges.  Borrowing costs to finance the project had also increased resulting in additional financial challenges.

·  The new build and refurbishment figures were based on conventional building methods.  A Passivhaus construction would be more expensive initially but would have potential for lower running costs.

·  In response to increasing construction costs and interest rates, a menu of minor improvements had also been compiled (Option 3D) which could deliver an uplift in services, increase energy performance and target new business opportunities in the medium term.  The changes involved reconfiguring the reception area, the office spaces and the café terrace area to separate the pools from the indoor play areas, create a new space to extend the indoor play offering and improve customer flow.  More work was now needed to develop the business case.  The thinking behind a new leisure centre, its location, design and facilities would continue as the cost of maintaining the existing building was escalating.

Councillor Cleator, Visiting Member, addressed the Committee in support of investment in a new centrally located leisure centre (Mote Park) arguing that it would deliver economic, social and environmental benefits.  She cautioned against a refurbishment project as this could lead to additional costs being incurred.

In response to comments/questions:

The Lead Member confirmed/explained that:

·  The current capital programme had a budget provision of £35m for the leisure centre.

·  She could not recommend that the Council proceed with building a new leisure centre without being clear about what it should look like, where it should be and what it would cost because of the need to be responsible with taxpayers’ money.

·  In terms of the distribution of facilities, the Hub and Spoke was not the favoured model.  The favoured model was to keep the leisure centre within the Borough’s resident base and 80% of residents were living around the existing facility (Centrally Located model).

The Leisure Manager confirmed that:

·  The figures set out in the report would be subject to construction uplift which was estimated to be around 15-20% depending on the type of project/materials etc.  The increase in the cost of  ...  view the full minutes text for item 79