Extract from Report taken to Executive on 17th March 2014 detailing the business case and proposalLeisure Facilities Priority Areas for Consideration

THE REPORT

Background

Members have tasked Leisure Services with a requirement to reduce the subsidy required to operate the service. The first phase is the initial subsidy reduction plan which is currently being implemented. This next phase looks at options to make the service truly sustainable and to potentially change the service so it provides a net income to the council. Whilst the case for sport, leisure and active recreation facilitiesis widely appreciated and understood, the need to providethese facilities in a more sustainable way is critical given the severe constraints on financial resources imposed by central government cuts in funding.

‘Towards a Sustainable Future’ – Draft BDC Leisure Facilities Strategy

Leisure and Culture Servicescontinuously challenges itself to become more efficient and ensure that we offerthe best value for money, whilst reducing the cost of service provision to the council. Leisure Services have produced aDraftFacilities Strategy to help Leisure Services and the wider organisation topositively contribute to the financial challenges that it faces.

This Draft Facilities Strategy recognises that it is important to identifynew models for service delivery, sources of funding and partnerships in order to bring about improvements to the Council’s leisure facilities. Ensuring they are modern, efficient and effective models which contain the right product mix in order to operate at little or no NET cost. It is only by adopting this approach that the Leisure and Cultural Services can become truly sustainable.

The purpose of the draft facilities strategy is to set out a sustainable plan for the development of sports, leisure and active recreation facilities in the district. The scope of facilities considered includes sports and leisure centres, swimming pools, sports halls, health and fitness, bowls, tennis, squash, synthetic turf pitches and multi use games areas. All facility providers have been included in this scope including those provided by the private sector, voluntary and community sector and other public providers including educational facilities, as well as facilities within neighbouring authorities.

The overall vision for the ‘Towards a Sustainable Future’ Sports and Active Recreation Facilities Strategy 2014 is:

To ensure the strategicdevelopment of sustainable facilities for sport, leisure and active recreation that meets the current and future needs of the communitieswithin Bolsover District. The provision of which willincrease opportunities for participation in sport and active recreation supporting improved health, well being and a better quality of life.

In order to achieve the vision a number of key objectives have been identified:

Strategic provision –

To ensure there is a planned sustainable approach to the provision of a strategic and local mix of facilities that considers cross boundary issues and takes account of priorities set out in regional and local sports related strategies.

Meets the need of future populations –

To provide an innovative approach to the provision of facilities that can meet the future needs of a growing and changing population.

Delivers on sustainability principles –

To ensure that sustainability is at the forefront of all sports and active recreation provision particularly in relation to design, layout, facility mix, construction and energy efficiency measures.

Provides access for all –

To ensure that sport and active recreation facility providers ‘buy in’ to effective, well managed, affordable community access for all.

Investigate new opportunities and approaches to funding sports and active

recreation facilities within Bolsover District –

To explore and secure appropriate funding for sports and recreation provision including partnerships, profit share, community management, developer contributions and grant funding. .

The strategy has been informed by a new ‘Roadmap’for the district which sets out the Councils approach to service provision over the coming years by focussing on both ‘Growth and Transformation’. In addition a strategic review of existing facilities and information sought from a wide range of official Sport England business modelling tools which have been used to identify supply and demand within the district. An audit of outdoor sports pitches was undertaken which has informed the outdoor facilities element of this report, however a separate playing pitch strategy will be developed.

Strategy Content

The strategy contains data and information from a variety of sources which serves to create a ‘profile’ of Bolsover district which includes health, physical activity levels and demographics amongst other elements. This information helps to establish the needs that our communities have and informs what the Council needs to consider in order to improve the current outcomes from our sports and leisure provision and also make them more financially sustainable in the future.

The strategy establishes an overview of the current fixed leisure facility provision which forms the baseline, this is achieved by using a number of facility ‘planning tools’ along with extensive research locally.

Having established the need and the level of provision including quantity, quality and current condition, a number of priorities and local standards of provision are recommended for the future.

Strategy Findings

The following are a selection of the ‘Towards a Sustainable Future’ findings and key facts that are relevant to this discussion paper;

Key facts – A Profile of Bolsover District:

  • Bolsover has a population recorded at 75,866 (2011 Census) which is an increase of 5,740 from 2001 (2001 Census) and this consists of 37,388 males and 38,478 females, this is set to rise to approximately 83,456 by 2028.
  • Of the population, 64% are aged between 16 and 64.
  • The area experiences high levels of deprivation.In 2010, Bolsover was ranked 58 out of 354 local authorities in the Indices of Deprivation (1 is most deprived ).
  • The Indices for Health Deprivation and Disability (2010) show that Bolsover district had 56% of its lower super output areas in the top 20% most deprived nationally (Index of Multiple Deprivation 2010).
  • The health of people in Bolsover is generally worse than the England average. Deprivation is higher than average and about 3,300 children live in poverty.
  • Life expectancy for both men and women is lower than the England average.
  • About 23.6% of Year 6 children are classified as obese, higher than the average for England.
  • Health and wellbeing priorities include: inequalities in avoidable mortality, alcohol, smoking, obesity and inactivity, community management of long term conditions and independence in old age.
  • Bolsover is one of 19 District Council areas where over 70% of adults are overweight.

Key facts – Sports and Active Recreation Participation Profile:

  • Only 20.8% of Bolsover’s adults participate in 3 x 30 minutes of physical activity per week. East Midlands average is 23.2% and the national average is 22.3%.The
  • Female participation is particularly low at 23.6% East Midlands average is 30.4%.
  • Satisfaction rates with local sports/ leisure provision in Bolsover are very low, just 60% are satisfied which is 9% less than the East Midlands average,
  • Local authority facility user satisfaction rates are high at an average of approximately 80% consistently.
  • Football is the predominant sport within the district with 9% of Bolsover’s population taking part, greater than both the East Midlands and National average at 7.3%.
  • However, for the next four of the top five sports participated in within the district, Bolsover are significantly behind both the region and the National average.
  • 54.7% (over half of those surveyed) said yes they do want to participate more.
  • The same respondents were asked what activity they would choose to participate in, the biggest response by far was swimming.

Key facts –Market Segmentation

The profile information used to devise these models has been derived by Experian for Sport England. These models are built on socio-economical, demographic (Electoral Roll), lifestyle and lifestage data , overlaid with Sport England’s Active People and Satisfaction data as well as the DCMS/Sport England taking Part survey. This data is used to segment different population groups’ characteristics, behaviour, preferences, motivations and barriers towards sport participation.

  • Bolsover District is split into 19 key profile types of which there is a predominance of 4 profile types across the district at the information’s highest level of interrogation.
  • With the exceptions of Roger & Joy and Ralph & Phyllis, we have a greater % of all of the other least active segmentsin our district than either County, Regional or National levels. This segment equates to 46.5% of our adult population in comparison with 37.4% of the National population
  • The active segments in our district represent 35.2% of our adult population in comparison to 46.2% of the National population.
  • At a very broad level, each of the dominant profiles within the catchments of Bolsover’s facilities are very similar in terms of the demographics and lifestyles.
  • They are predominantly the less active segments compared with the national average.
  • Of the active profiles within the district, the top 5 represent approx. 28,500 people excluding the Pleasley Vale figures and a massive 181,500 people including the Pleasley Vale larger 20km catchment.

Key facts –Sports and Active Recreation Facility Provision

  • Within Bolsover District there are three local authority ownedand operated leisure centres.
  • Two of these are owned andoperated by Bolsover District Council and one by Shirebrook Town Council.
  • There are five secondary school sites that provide a range of sport and leisure facilities for community use.
  • The leisure facilities are relatively new and modern with the exception of Creswell Leisure Centre and Shirebrook Leisure Centre.
  • Shirebrook Leisure Centre was partially refurbished in 2009, however the sports hall and 5-a-side AGP (artificial grass pitch) are in need of investment within the next 5 years.
  • Of the two District Council Leisure centres Clowne operates at an almost ‘break even’ position, whilst Creswell requires a substantial subsidy.
  • Clowne Sports Centre has the space and capacity to expand. Creswell is constrained by residential development and a very small footprint.
  • Clowne is a relatively new building built in 2005. Creswell is approximately 90 years old andrefurbished approximately 23 years ago.
  • Creswell Lesiure Centre requires substantial capital investment in the next few years to enable it to continue to operate
  • Creswell is almost at its full income potential ceiling. Thisfalls far short of the revenue expenditure cost of operating the facility.

Key facts – Health and Fitness

  • There are currently 9 health and fitnesssuitesor ‘gyms’ within the district, 6 public and 3 private.
  • These provide 261 stations to a population of approximately 75,330 people which equates to 289 head of population per station or 0.0035 station per head of population.
  • There is approximately 3.4 stations per every 1000 people.
  • To bring this in line with the average in the rest of the County, Bolsover District would need to increase the number of stations by 1.3 per 1000 head of population, this would equate to approximately 98 new stations.
  • There are approximately 3500 gym members on an average month within the district using facilities located in the district at present.
  • There is an estimated additional 2000 people migrating to neighbouring facilities in Nottinghamshire and Derbyshire bringing the total approximate number of residents with gym memberships to 5500.
  • According to the Leisure Database Company 12.6% of the UK population are now registered as members of a private health and fitness club or a publicly-owned fitness facility.
  • In comparison, Bolsover is 4.6% and 7.3% of the population registered as members when measured as using facilities within the district and when migrating out respectively.
  • Effectively this would mean that to get to the National average figure a further 3900 gym members would need to be created.
  • The health and fitness sites in Bolsover are relatively new or recently refurbished as the market and customers dictate and expect.

Key facts –Facilities Planning Model

  • Bolsover has a very poor supply of swimming pools in terms of quantity, quality and distribution.
  • Consequently the District has the highest proportion of unmet and exported demand across Derbyshire. It relies significantly on pools provided by surrounding local authorities to meet around 75% of its residents demand and its own pool at Creswell is overstretched.
  • If the current level of exports and the current over use of Creswell Leisure Centre are considered acceptable then unmet demand equates to a shortfall of 132m2 of waterspace. If Bolsover wished to meet more of its own needs then there is a shortfall of up to 700m2 of waterspace across the District - a shortfall in a range of between one and three 25 metre swimming pools.
  • Population growth between 2013 and 2028 means that demand increases whilst supply is static and aging. Satisfied demand therefore falls and unmet demand rises and the one existing pool is no longer fit for purpose.
  • Bolsover should consider providing at least one additional pool located in one of the larger towns in the District or a location which will have the biggest impact on reducing leisure exports and maximising the number of residents reliant on walking/cycling who can access a pool either by walking, cycling or public transport.
  • Bolsover should consider facilities provision that reduces the subsidy required to operate the service.

Specific Findings in relation to Clowne and Creswell Leisure Facilities.

Clowne Sports Centre

The centre was built in 2005 as part of a college campus but is now reowned by the District Council. The facility comprises of a 40 station gym, a 4 court sports hall, a dance studio, a large floodlit sand based ATP (artificial turf pitch), 2 grass pitches and a number of ancillary multi-use spaces. The current business model is making great progress towards becoming a self sustaining facility requiring little or no subsidy. The site has sufficient land to expand its products and portfolio of activities.

Clowne Sports Centre is constructed from hard wearing materials with a mid range finish in terms of aesthetic appearance. Due to its age and the previous use of the building, it is in good condition with very few signs of wear and tear or decay of any significance. The facility is relatively energy efficient which is reflected in the ongoing operating costs.

Creswell Leisure Centre

This facility was built in 1924 by the Bolsover Colliery Company as municipal swimming baths for use by colliery workers and their families. The centre underwent a million pound refurbishment in 1990. The centre has a small 18m deck level swimming pool, 2 squash courts, sauna and a 25 station fitness suite. The site is severely constrained by residential development and has a very small footprint with little opportunity to expand. The facility is close to its total income ceiling with over 95% utilisation of the pool with little opportunity to recover the full operating costs of the site from income.

The building is old and as such its condition is reflected in its age. Although the site underwent an extensive refurbishment in 1990, much of the building fabric both internally and externally is in need of significant investment to maintain operations. In a separate document, the Council has detailed information regarding its buildings stock following an asset condition survey that has been recently carried out which reveals that approximately £300,000 will need to be invested in the site within the next 5 years. The condition survey reveals a number of areas that require investment within the facility including poor masonry and a roof that is simply too heavy for its supports.

Whilst the asset survey looked at the building, it does not include items related to the pool tank, pool water filtration, heating or circulation systems which areapproaching end of life. In the absence of a full pool and plant assessment it is difficult to establish at this stage how much life the existing system has, however this will have to be taken into consideration and could add between another £50,000 and £200,000 of additional investment. Therefore total investment required is conservatively estimated between £350,000 to £500,000.Recent NBS (national benchmarking survey) resultsincluded the following;

Creswell Leisure Centre financial performance is weak relative to the benchmarks, with eight of the 16indicators performing at or below their 25% benchmark level (bottom quartile of comparator group);

  • cost recovery
  • subsidy per m2
  • subsidy per catchment area person
  • maintenance and repair cost per m2
  • staff costs as a % of total income
  • central establishment charges as % of total expenditure
  • income per visit
  • direct income per visit

The survey suggests that the main factors which hinder this performance is relatively low 'per visit' totalincome and direct income. Since the centre is small and throughput is already high, raising the price of activities may be an option though this would restrict use by customers that the council would want to encourage. Other relative weaknesses in financial performance are maintenance and repair cost, staff cost indicator and central establishment charges indicator. For staff cost performance, this is probably attributed to the relatively low total income because this is expressed asa percentage of the total income.

A relative strength of the centre is visits per square metre of indoor space, whether referring to usable or total space, which performs at or above the 75% benchmark level.

In summary the survey identifies that the facility is expensive to operate, is too small to generate more income without increasing the pricing structure and that it is operating with a high utilisation.

In essence this means the site itself is inefficient due to its age and size. This means that the council may need to consider the fundamental options in a sustainable service.

Clowne and Creswell Leisure Facilities – a possible option for the future?

Enhanced Sports Centre (with pool)

The construction of a new leisure centre with swimming pool, smaller teaching pool, a minimum100 station gym, food and beverage offer, children’s ‘soft play’ zone amongst other elements, could take over as the main provider for the district population east of the M1 (including Clowne, Creswell, Whitwell and Bolsover).