CLACKMANNANSHIRE COUNCIL

Report to Council : 31st January 2008

Subject: Zones Leisure Centre

Prepared by: Sheila Bulloch, Leisure Services and

George Adamson, Property Services.

1.0SUMMARY

1.1.It is proposed to permanently close Zones Leisure Centre. This follows a review of the centre’s operation and reflects the low volume of use by patrons together with the poor overall condition of the premises and services and the lack of available funds to undertake a proper upgrade.

2.0RECOMMENDATIONS

2.1.It is recommended that the Council approve the permanent closure of Zones in its current guise with immediate effect.

2.2.It is further recommended that the Council reviews the opportunities for future use and possible lease or disposal of the building and seeks expressions of interest.

3.0BACKGROUND

3.1.The Zones building was originally constructed to serve as a commercial vehicle depot with a gross internal floor area of 1748sq. m. When this use ceased the Council took the opportunity to utilise it for community purposes.

3.2.Zones Centre first opened in October 2003 offering physical activities to under eighteens including an indoor skateboarding park; youth fitness centre and music zone.

3.3.Prior to this a small extension to the main building had been leased to Hawkhill Community Association for use as a location for its childcare and nursery services. The lease ceased in the summer of 2003. The old Alexander Hall which is attached to Zones is used currently by Clackmannanshire District Brass Band as a rehearsal space and as a location for the storage of its instruments.

3.4.Despite its initial popularity, usage has fallen and condition deteriorated to such an extent that it is no longer considered to be viable or usable as a leisure facility in its current guise and has therefore been closed pending a review by both Leisure and Property Services.

4.0BUILDING CONDITION

4.1.The building has been the subject of a full inspection and a condition report and is categorised as being in “C” condition (i.e. in need of major repairs immediately). Although it can generally be categorised as being adequate for purpose, as a building, it is less so for its leisure provision. Urgent repairs are nevertheless necessary to prevent further deterioration to the fabric while mechanical services are sub-standard.

4.2.The gas heater serving the multi gym and dance studio has been found to be faulty and unsafe to use. Other heating units require inspection and testing by specialists. Mechanical ventilation is inadequate and partly inoperable while a proportion of electrical fittings are defective.

4.3.The roof, windows and external doors require various immediate repairs and upgrading is the only real long term solution.

4.4.Internally certain floor surfaces are worn out with signs of damp penetration causing further deterioration. The condition of the skateboarding park floor is of great concern. Externally the 5-a-side pitches are compacted and experience frequent flooding.

4.5.The partial disabled access is unlikely to meet with present day compliance standards. Fire exit doors should be upgraded.

4.6.Although the building may be considered as being capable of continuing occupation in the short term provided urgent repairs are undertaken, serious doubt remains over its ability to meet the needs of the current client groups.

4.7.Were the building to be considered for long term service provision then considerable expenditure would require to be incurred in upgrading all of the structural elements and services to meet continually developing client demands.

4.8.Initial estimates suggest that the costs of upgrading Zones would be in the region of £600,000.

5.0FINANCIAL SUMMARY

5.1.Gross expenditure budgeted for 2007/08 is £244,580, including wages and asset rental charges, with associated income being £67,530. Net expenditure therefore would be £177,050.

5.2.The gross expenditure includes asset rentals which are part of an internal recharge system for accounting treatment and totals £127,500 for Zones.

5.3.The income target of £67,530 includes an allocation of £21,680 from tourism grant aided expenditure. The income from users was initially set at £45,850 and is currently standing, three quarters of the way through the year, at £7,971. This reflects the gross underusage of Zones; income being only 17.4% of target.

5.4.In 2006/07, Zones turned out a net overall expenditure of £183,095; with income from clients of £16,738 against a budget of £45,850. 2007/08 is heading for only £9,150 from client usage showing a further decline in numbers.

5.5.Appendix II indicates actual user numbers between April, 2007 and November, 2007 and shows an average number of 800 users per month. The foregoing figures do not take account of charges which are applicable to other Council departments and services which may be savings to the operating department but cannot be treated as savings to the Council overall.

5.6.In terms of staff, the current staff of Zones can be redeployed to other parts of Leisure & Recreation Services. They have been so redeployed temporarily with one part-time member of staff opting to take voluntary redundancy. There would be some reduction in casual staff employed as a result of a closure of Zones.

6.0OPTIONS

6.1.It is considered that four possible options present themselves for consideration, namely:-

6.2.Option I - Do nothing. The building would remain permanently closed with the attendant savings as outlined in this report.

6.3.Option II - Do minimum. Outstanding essential repairs would be carried out and the facility reopened. It is unlikely that user numbers would increase with revenue declining and losses continuing to mount. Building fabric would continue to deteriorate in the face of lack of investment.

6.4.Option III – Upgrade. The entire facility would be upgraded, refitted and refurbished by means of significant investment. High capital costs would be incurred but no guarantee can be given that user numbers would increase because of the unpredictability and often fickle nature of modern youth trends.

6.5.Option IV –Seek Alternative Uses. Review opportunities for future use and possible lease or disposal of the building. Expressions of interest could be sought.

7.0CORPORATE PRIORITIES

7.1.The Council is committed to the provision of a full range of well equipped community and leisure facilities. In this regard however it is considered to be the case that Zones no longer serves this purpose and that other Council venues can accommodate certain items of equipment to continue the service provision to meet the needs of a wider user group.

8.0CONCLUSIONS

8.1.In reviewing the operation of Zones Leisure Centre it is apparent that the facility is failing on a number of counts. The building itself is less than fit for purpose and in its present condition fails to meet current standards.

8.2.Customer numbers have declined to the extent actual income falls some 85% short of that projected resulting in significant annual losses being incurred.

8.3.Costs of upgrading the facility will be high with little prospect that user numbers would increase to an economic level.

8.4.On balance the optimum solution for the Council is the permanent closure of the building which can be justified on the grounds of its failure to attract and retain the target user base allied to annual operating losses and degradation of the building fabric with attendant high costs of upgrade. Potential alternative uses could be sought.

9.0SUSTAINABILITY IMPLICATIONS

9.1.Closure of this building will generate a considerable reduction in the Council’s carbon footprint.

10.0FINANCIAL IMPLICATIONS

10.1.Closure of the Zones facility will result in projected net annual budget savings of £71,230, with existing staff being redeployed.

11.0DECLARATIONS

(1)The recommendations contained within this report support or implement Corporate Priorities, Council Policies and/or the Community Plan:

  • Corporate Priorities (Key Themes) (Please tick )

Achieving Potential
Maximising Quality of Life
Securing Prosperity
Enhancing the Environment
Maintaining an Effective Organisation

  • Council Policies (Please detail)
  • Community Plan (Themes) (Please tick )

Community Safety 
Economic Development
Environment and Sustainability
Health Improvement

(2)In adopting the recommendations contained in this report,
the Council is acting within its legal powers. (Please tick )

(3)The full financial implications of the recommendations contained
in this report are set out in the report. This includes a reference
to full life cycle costs where appropriate. (Please tick )

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Head of Service

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Director

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Head of Service

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Chief Executive

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