A new management contract for Woking’s leisure centres, which had been under threat of closure due the council’s crushing bankruptcy, has been agreed – marking a ‘proud’ and ‘amazing’ turnaround for the popular sites.
The deal to run Woking Leisure Centre, Pool in the Park, Woking Sportsbox and Eastwood Leisure Centre will last for an initial 10 years with two potential five year extensions.
Due to the council’s crushing financial position, it has debts approaching £2.6billion, it can not enter new agreements for any non-statutory services unless they generate income.
The current leisure centre budget is £1.060m, made of running and supporting costs £2.509m and fee income £1.449m.
The council says the new contract will bring an estimated net saving of about £1.125m and it will not offer any borrowing or investment options – with maintenance falling on the new management company.
The agreed terms, expected to be announced on September 13, will allow Woking Borough Council to continue delivering leisure, physical activity and wellbeing services.
Of the three bids, there was one that stood out as being significantly cheaper than the others, sparking questions from some over whether the deal had been significantly scrutinised.
Councillor Ellen Nicholson, deputy leader of the council and portfolio holder for leisure said: “We have much to be proud of with our sports facilities.
“It was not a given when the council declared bankruptcy a few years ago, that we would navigate our way through the pandemic, and through the financial difficulties, we we are currently going through to award a non-statutory contract for leisure.
“I think that’s an amazing achievement and it really is a testament to the tenacity, the resilience and seeking out of the best for our residents in difficult times to have this positive trust for Woking.
“It was not a given.”
“I understand the hesitancy of my colleagues. We have been in a difficult financial position and awarding new contracts is always a scary procedure going forward bearing in mind where we’ve come from”
Cllr Dale Roberts said the new contract would bring in income -something he welcomed as portfolio holder for finance.
There will be a 10-day standstill period ahead of formal announcement of the deal, the Wednesday, September 3 full council meeting heard.
Despite being voted through, some within the chamber expressed doubts over how the process was put together, particularly over how quickly it came about – and with some of the figures being put forward.
Cllr Stephen Oades (Liberal Democrats, Goldsworth Park) said: “What struck me as strange is that a third company is expecting to make 49 per cent higher returns from operating the same assets. I’ve never seen such a result.
“Operating the same assets for rendering the same services, 49 per cent higher returns seems to me to be (ambitious) I don’t find that particularly credible.
“There is no information provided in the reports to substantiate that.
“It’s not clear from reading the papers how this… is going to occur or is going to be achieved.
“There is no information about how they are going to achieve this miracle.
“It has often be said that part of the reason for our current financial problem is that adequate financial information was not provided to members previous and was not a adequately presented.
“I don’t think we have been provided with sufficient information to make a proper decision.”
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