Agenda item

To consider a confidential report by the Corporate Director:  Governance and Business (copy enclosed) in relation to Denbighshire Leisure Limited.

12.25pm – 1pm

The Corporate Director Governance and Business & Monitoring Officer guided members through a confidential report (previously circulated) which detailed a proposed alternative structure for Denbighshire Leisure Limited (DLL). 

 

Members debated in detail various aspects of the proposed alternative approach.  During the discussion questions were raised on matters ranging from:

·       the shareholding proposals

·       current financial value of all aspects of the DLL business

·       the extent of the due diligence work undertaken on the potential investor and its proposed Business Plan

·       employee terms & conditions and pension rights

·       subsidy control and deregulation

·       the future of the UK Leisure Framework

·       the proposals’ impact on the current contract between the Council and DLL and proposed future contract management arrangements. 

Answers were provided by the Corporate Director Governance and Business & Monitoring Officer, DLL’s Managing Director and the Council’s Section 151 Officer.

 

Prior to leaving the meeting the Managing Director of DLL confirmed that he had held a series of staff meetings to outline the proposals and answer their questions.  He had also met with staff trade union representatives to discuss the proposals.

 

DLL representatives left the meeting prior to the Committee discussing the proposals further with Council officials and deliberating on its recommendations. 

 

Members were advised by the Corporate Director Governance and Business & Monitoring Officer that a Special County Council meeting had been arranged for 26 March 2025 for the purpose of discussing the proposals in detail prior to giving all members an opportunity to vote on them. 

 

To date two all members workshops had been held to explain the proposals put forward.  In addition, representatives from DLL had met with the Council’s political groups to answer their questions on the proposals.  The objective of presenting the proposals to Scrutiny was to enable it to identify what further information required to be included in the report to County Council to enable elected members to make a determination on the proposals. 

 

At the conclusion of an in-depth discussion the Committee, by a majority vote:

 

Resolved:  that, to enable County Council to make an informed decision with respect of an alternative company structure for the provision of leisure services, the following information be provided to county councillors ahead of the Special Council meeting on 26 March 2025 –

 

(i)             clarification on the purpose and value of the shareholding proposals (including what would happen to shares returned to the company upon an employee leaving its employment and whether employees would receive payment for returned shares)

(ii)           verified details of the current value of Denbighshire Leisure Limited’s (DLL) assets, loans/borrowing and liabilities along with information on what would happen to these upon transfer if the alternative company structure were approved

(iii)         the provision of a current valuation report on DLL along with up-to-date balance sheets/accounts for the business

(iv)         the provision of a due diligence report on the potential investor, including the extent of the due diligence work undertaken

(v)           the provision of the potential alternative company’s proposed future Business Plan

(vi)         clarity on employees’ future Terms and Conditions under TUPE arrangements, including their protected and future pension rights

(vii)        clarity on the subsidy control position and deregulation requirements if the proposed alternative company structure was approved

(viii)      confirmation on the ownership and rights associated with the UK Leisure Framework if the proposed alternative company structure was approved. 

(ix)         information on the potential alternative company/investor’s commitments to carbon reduction measures and supporting the Council’s ambition to become net carbon zero and ecologically positive by 2030   

(x)           details of amendments required to the current contract between Denbighshire County Council and DLL for the provision of leisure services, along with future contract management arrangements, if the proposed alternative company structure was approved.

 

 

          Meeting concluded at 3.10pm