Agenda item
DENBIGHSHIRE LEISURE LIMITED
To consider a confidential report by the Corporate Director: Governance and Business (copy enclosed) in relation to Denbighshire Leisure Limited.
12.25pm – 1pm
Minutes:
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
Supporting documents:
- Restricted enclosure View the reasons why document 10./1 is restricted
- Restricted enclosure View the reasons why document 10./2 is restricted
- Restricted enclosure View the reasons why document 10./3 is restricted
- Restricted enclosure View the reasons why document 10./4 is restricted
- Restricted enclosure View the reasons why document 10./5 is restricted