Decision details

Background:
Sports and Leisure Management Limited, operating as Everyone Active, operate the Council’s Sports Centres at Hemel Hempstead, Berkhamsted and Jarmans’ Park Athletics Track, and have done so since 1st April 2018, on a ten year contract with an option to extend for a further 5 years.
In response to the Coronavirus pandemic, the Government has introduced three periods of restrictions, which have required leisure centres to close for almost 9 months of the 2020/21 financial year. Hemel Hempstead and Berkhamsted Sports Centres and Jarmans Park Athletic Track therefore had to close for these periods, which resulted in the immediate cessation of all casual income and the temporary cessation of a significant proportion of membership income, whilst still incurring staffing and site costs.
During the periods when the centres have been able to open, they have been required to comply with relevant social distancing and health and safety measures. The impact of this guidance is significant in terms of its restrictions and personal space requirements, which means that the number of users attending the centres has been significantly diminished and this will continue until restrictions are lifted. This position is further impacted because exercise behaviours have changed during the pandemic and there has been a general reluctance to return to an enclosed exercise space until confidence returns.
Reason for the Decision
Leisure centres will be permitted to open on 12th April 2021, but will be required to operate with social distancing and other measures in place until 21st June 2021 at the earliest, based on the Government’s current roadmap. As set out above, social distancing measures, loss of members, change in exercise behaviours and general reluctance to return immediately to an enclosed leisure space will continue to have a significant impact on income for the whole of the 2021/22 financial year as a minimum.
This decision is being made via an Officer Decision Report rather than the regular committee report so that funding can be confirmed to enable the Everyone Active run leisure centres to re-open from 12th April 2021.
This initial period of support has been kept to the minimum possible to enable the leisure centres to re-open. Further proposals for financial support for the rest of the financial year will then be presented to Finance and Resources Overview and Scrutiny Committee and Cabinet in June, followed by Council in July for consideration and approval.
Purpose of the report
This initial 4 month period of support will give officers the opportunity to assess the income projections from Everyone Active and officers will then be able to give greater certainty in relation to financial support projections for the rest of the financial year.

That a support agreement with Sports and Leisure Management Limited be agreed for the period 1st April 2021 – 31st July 2021 on the terms set out in this Officer Decision.

Option 1 - If this funding is not provided then the leisure centres will not be able to open when the lockdown restrictions ease.