Swimming pools at Burgess Hill's Triangle Leisure Centre and Haywards Heath's Dolphin Leisure Centre not at risk
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The district council signed a contract with Places Leisure in 2014, handing over management of the area’s three leisure centres in return for an annual management fee of £1.4m.
The pandemic threw a spanner in the works, with the council having to take on the operational and financial risk of the three centres, as well as losing the management fee.
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Hide AdThose Covid requirements ended in March and the council is now in contract negotiation with Places Leisure, intending to return things to their pre-pandemic position.
At the moment, the company pays a reduced management fee of £600,000.
Figures presented to a scrutiny committee meeting on Wednesday (November 16) showed that, while the first half of the 2021/22 financial year performed some £400,000 better than had been forecast, by March things had been turned on their head.
The forecast position for the end of the year was -£788,727 but the actual position was -£1,244,151.
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Hide AdRobert Anderton, assistant director for commercial services & contracts, said: “Obviously, what we’re now encountering are a whole new load of headwinds in the form of the financial crisis, particularly the cost of fuel and energy, which have a disproportionate effect on operations such as leisure centres, which are very energy hungry.”
A report to the committee said energy costs for the three centres from November to March had been an average of £175,000 per month, compared to the £80,000 average per month before the pandemic.
Some authorities have attempted to reduce their leisure costs by cutting opening hours and closing swimming pools – which require a lot of heating.
Mr Anderton assured the meeting that Places Leisure had not suggested taking that route and it was not something the council was considering.
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Hide AdQuestions were asked about what contingencies were in place should Place Leisure fail or decide to give back the contract.
Mr Anderton said: “We have contingency plans should that happen.
“However, the aim of this exercise is very much to avoid that from happening so we can work alongside a good contractor to get us back to where we both want to be in terms of our operation.”