Agenda item

Williamson Park Update Report

(Cabinet Member with Special Responsibility Councillor Fletcher)

Report of the Head of Cultural Services.

Minutes:

(Cabinet Member with Special Responsibility Councillor Fletcher)

(It was noted that Councillors Blamire and Burns had previously declared personal and prejudicial interests in the following item in view of their role as members of the Williamson Park Board of Directors. Councillors Blamire and Burns left the meeting prior to consideration of this item. It was further noted that the Corporate Director (Finance and Performance) had also declared an interest as Secretary to the Williamson Park Board of Directors. He also left the meeting prior to consideration of this item.)

The Head of Cultural Services submitted a report updating Cabinet on the latest position at Williamson Park following the interim management arrangements undertaken by Cultural Services.

The options, options analysis, including risk assessment, were set out in the report as follows:

Option

Advantages

Disadvantages

Risks

1. Current interim management arrangements continue and estimated budget for 2009/2010 is agreed, to include annual growth of £82,000 from 2009/2010 onwards.

The operation of the Park would continue thus enabling appropriate time to review key areas with further reports to Cabinet provided on options to improve current operation.

Support would continue to be provided to current staff and various improvements planned and identified in the Audit report would be able to be implemented.

Council has clearer picture over value for money received in return for the subsidy provided.

Additional cost to Council of £82,000 from 2009/20010 onwards.

Additional grant support not providing value for money.

Significant additional work impact on Cultural Services and other services would need addressing.

Would place significant pressure on existing Cultural Services work programme and business plan, as well as other key Council Services involved.

2. Continue current interim management arrangements, with a view to bringing operation back “in-house”, on the basis that no growth bid will be required.

The operation of the Park would continue, but possibly at a reduced level (possibly part closure of some facilities).

£82,000 growth based on Private Sector Accounting principles, therefore potential for efficiencies should the Park operate under Local Authority Finance rules.

Possibility that current operation could only reasonably be achieved on the basis that the estimated budget for 2009/2010 is agreed, to include a growth of £82,000 in 2009/1010, however it is not yet known whether the Park is operating as efficiently as it could.

Potential costs of decommissioning elements of the current park operation or winding up of the Company (costs not yet determined).

Without the additional growth of £82,000 in 2009/1010 or reduced level or change in operation the Park will not be viable.

Limited guarantee of any need for future support in addition to that already being offered from Council.

Theoretically, there is a further option of retaining the status quo i.e., where Williamson Park reverts to operating without support of interim management arrangements from City Council and estimated budget for 2009/2010 remains at standard inflationary increase on previous year. However, this is not really a viable option for the Council as the Company is Local Authority Controlled, therefore the Council would still be obligated to take some remedial action. As such the above is not included in the options and options analysis.

The officer preferred option, (option two above), allows the operation of the Park to continue, at a reduced or more efficient level, without the need for the Council to increase its revenue contribution over and above the original estimated budget for 2009/2010.

It was moved by Councillor Mace and seconded by Councillor Barry:

“(1) That Cabinet notes progress to-date on the interim management arrangements for Williamson Park, including:

· additional grant support of £50,000 being required for 2008/09, noting that this is a provisional figure, subject to clarification for the remainder of the year;

· the need for the Council to make provision to cover previous years’ estimated losses, estimated at £100,000; and

· the need to provide additional cash flow support to the Company during 2008/09, but that this be on a short term basis only, thereby avoiding any further charge on the City Council’s budget.

(2) That Cabinet’s preferred option for the management and operation of Williamson Park with effect from 2009/2010 is Option 2 as set out in the report, with a view to receiving a further detailed report on the future management arrangements for Williamson Park before final implementation.”

By way of an amendment, which was accepted as a friendly amendment by the mover and seconder of the original proposition, Councillor Gilbert proposed:

“(3) That arrangements be made for member involvement in the future of the Park for the first year of implementation.”

Members then voted on the proposition, as amended.

Resolved:

(5 Members (Councillors Barry, Bryning, Charles, Gilbert and Mace) voted in favour and 2 Members (Councillors Archer and Kerr) abstained)

(1) That Cabinet notes progress to-date on the interim management arrangements for Williamson Park, including:

· additional grant support of £50,000 being required for 2008/09, noting that this is a provisional figure, subject to clarification for the remainder of the year;

· the need for the Council to make provision to cover previous years’ estimated losses, estimated at £100,000; and

· the need to provide additional cash flow support to the Company during 2008/09, but that this be on a short term basis only, thereby avoiding any further charge on the City Council’s budget.

(3) That arrangements be made for member involvement in the future of the Park for the first year of implementation.

Officers responsible for effecting the decision:

Corporate Director (Regeneration)

Head of Financial Services

Head of Cultural Services

Reasons for making the decision:

The decision allows the operation of the Park to continue, at a reduced or more efficient level, without the need for the Council to increase its revenue contribution over and above the original estimated budget for 2009/2010.

Supporting documents: