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The Board considered a report from Colchester Commercial Holdings Ltd Colchester Amphora Trading reporting on the activity within each of the trading services up to period 10 2017/18. Graham Lewis, Senior Commercial Manager, attended to assist the Board.
It was reported that considerable work was being undertaken to market and promote Leisure World. A #My Goal and a January Lifestyles Special Offer had generated significant higher level of new memberships than had been sold before over the corresponding period. A further major campaign was planned for March. Other marketing initiatives included developing relations with key partners and businesses. For example an agreement had been reached with a construction company for 200 “New Home” offer leaflets to be distributed in new developments. Class occupancy at Leisure World was at 73%, which was above target. Considerable efforts were underway to try and increase class occupancy further and Leisure World was seeking to reorganise the dryside activities in order to maximise income.
In response to questions from members of the Board clarification was provided about how the membership and occupancy figures were calculated. The significant increase in gym visits was a consequence of the investment and development of the gym. The increase in the number of memberships had also resulted in increased usage of classes, as members had free access to classes. In response to questions it was also explained that there had been no drop off in the figures throughout January, although it was anticipated that this would begin to be reflected in the figures for February, and further initiatives were planned in March to maintain usage and income.
The Board also explored what efforts were made to exploit the pre-commute market. Leisure World’s opening hours were 6am to 10 or 11 pm. Earlier and later opening hours had been tried without significant success. It was suggested that off peak sessions and classes should be made available and priced to attract those who may struggle to attend at peak times, such as those on low incomes or had a disability. In response to a query from a member of the Board, the Commercial Manager undertook to look into the evacuation procedures for users with disabilities, including hearing loss.
It was also stressed that the Sport and Leisure service was committed to improving the leisure centres at Highwoods and Tiptree, each of which had unique facilities and offers.
Councillor Smith, Leader of the Council and Portfolio Holder for Strategy, was invited to address the Board and explained that the Council had been successful in a bid for Sports England funding. It would receive a share of £100 million to increase participation in sport. This was in addition to the funding Sport England were contributing to the Northern Gateway scheme.
In respect of the Events service, it was reported that whilst there had been a significant increase in income, this had been offset by an increase in costs. The service was continuing to look at how costs could be more effectively contained, and also how secondary spend could be maximised. Improvements to the audience and performer areas at Charter Hall were progressing. This was generating more interest in Charter Hall as a venue, and the quality of the acts being booked was improving. Sales for the concerts in Castle Park were progressing well and were among the highest on both of the tours. These were being run as a trial events to test the market for such events in Colchester. The Council was charging for the use of Castle Park and would also generate an income stream through car parking. All other income would go to the promoter, who was bearing the majority of the risk. Should the events prove successful, future events could be delivered on a different arrangement, such as split profits.
The Board also explored the possibility of World Cup fixtures being screened on a large screen in Castle Park. It was explained that this had been investigated into but in view of concerns about impact on residential amenity, clashes with Wimbledon matches and the impact on town centre businesses who were also planning to screen the World Cup, it had been decided not to proceed.
In terms of Helpline the new rota was now in place and now recruitment was underway to replace core full time staff and casuals. In particular the Service Development Manager position had been advertised. There had been a net increase in the number of connections and a 14% growth in net surplus was predicted.
The Board stressed that Helpline was a success not just in commercial terms, but also in the valuable service it provided. The Board also explored whether Helpline had explored the commercial opportunities in the monitoring of properties. It was confirmed that this would be looked at, but it was necessary to enter the market with the right product at the right time. The appointment of the Service Development Manager would improve the service’s ability to “horizon scan” and take advantage of commercial opportunities. It was also suggested that there may be some benefit in exploring alternative venues for the hosting of the service.
The Board also discussed the reporting arrangements, should the proposals for the future of the Trading Board be agreed. It was confirmed that the reports on the commercial services for each period would be submitted to the board of Colchester Commercial Holdings Ltd, and the subsidiary companies would receive more detailed reports. Building Control and Bereavement Services had been retained as services that would be managed directly by the Council. As with all Council services, they would remain subject to efficiency reviews and initiatives to maximise income.
RESOLVED that the report be noted.