Agenda item

The Executive considered a report outlining a proposed process for the replacement of the Arena Leisure Centre and seeking approval for funding the process. The current Arena contract had been extended in March 2016 for a further three years and was therefore due to expire in March 2019. 

Members were informed that Condition Surveys undertaken by Hampshire County Council in 2012 had identified a need for £1.1m of structural, mechanical and engineering services work to be undertaken over the next ten years to maintain the Arena’s existing service offer. Mechanical plant was likely to need replacing in five years at an estimated cost of approximately £500,000.

It was reported that an assessment of alternative sites for a new Centre had been undertaken; however, the Arena’s existing site at Grand Avenue was considered to support the best business facility solution.

The cost of a new leisure facility was expected to be in the region of £10m - £15m, depending upon the type of facility procured and how any associated risks were shared with an operator. It was, therefore, proposed to develop a business case with a view to appointing an external provider to deliver, in partnership, a new self-funding leisure facility through a design, build, operate and maintain (DBOM) contract.

The project would be managed in-house with the assistance of a Member Task and Finish Group and aided by external expertise where necessary to engage in the procurement process with operators. It was intended to appoint an industry specialist to ensure that the services within the facility were the most current and would continue to protect the commercial resilience of the centre. The consultant would also provide advice on likely build costs. A budget of £95,000 was therefore sought to cover these costs. It was advised that this sum was considered to be conservative.

The Task and Finish Group’s proposed Terms of Reference were noted. It was agreed that the Task and Finish Group would have 9 members, comprising 7 Conservative Group members and 2 Others Group Members; Group Leaders undertook to advise their nominations after the meeting.

RESOLVED

(i)          that the Council develops a business case with a view to appointing an external provider to deliver, in partnership, a new self-funding leisure facility through a design, build, operate and maintain (DBOM) contract;

(ii)        to agree to the appointment of a suitable external consultant to facilitate and support the business case and procurement strategy;

(iii)      to allocate £95,000 from reserves to cover the cost of this external expertise as well other associated legal, quantity surveying and consultation costs; and

(iv)      to establish a member “task and finish” working group, with Terms of Reference as set out at Annex A to the agenda report, to report back to the Executive with a recommendation by June 2017.

Note: It was noted for the record that Cllr Rodney Bates declared that members of his immediate family lived within the vicinity of the Arena Leisure Centre.