| 1. | How the LCP Works
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| 1.1 | The structure of the LCP contract is that D C Leisure Management Ltd (DCLM) will sub-contract the provision of the swimming pools, sports halls, squash courts, changing rooms etc. (LCP Services) to a wholly-owned (by DCLM) non-profit distributing company limited by guarantee, referred to, as the Leisure & Community Partnership Ltd (LCP)". DCLM will retain responsibility for the provision of the catering and health and fitness elements of the services (). The LCP will be granted a sub-lease to occupy the premises (Sub-Lease), and will grant concessions to DCLM to occupy parts of the premises for the purposes of providing the Excepted Services.
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| 1.2 | Any structure must allow eligibility for discretionary relief from National Non-Domestic Rates (NNDR) pursuant to the provisions of the Local Government Finance Act 1988, section 47. This discretionary relief is available where the property is occupied by one or more organisations, none of which are established for or conducted for profit and where those facilities are wholly or mainly used for the purposes of recreation. The rate of relief is at the discretion of the rating authority concerned, and can be anywhere between 0 and 100%. DCLM usually secures relief at a minimum of 75%.
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| 2. | How the new approach should enable Local Authorities to demonstrate Best Value in the Delivery of their Services
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| 2.1 | We believe one of the best ways forward to ensure a successful partnering relationship is the creation of a Partnership Board. It will consist of senior representatives from DCLM and will offer the Council the opportunity to be represented. (The 20% rule of representation normally associated with Leisure Trusts does not apply to this model).
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| 2.2 | We feel that it is very important to involve key Local Authority personnel (normally the Portfolio Holder, Chief Officer and Client Officer) because of the dynamic nature of the service and the major challenges we face whether from increased competition for the leisure spend, or major refurbishment or replacement of ageing facilities. The LCP will be represented by the DCLM Regional Director, Contract Manager and a member of the Business Development Team.
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| 2.3 | The Partnership Board will have clear terms of reference concentrating on strategic issues, financial performance, capital investment and achieving our mutual objectives. Coupled with the requirements of Best Value, we believe that this approach will lead to a much-improved understanding of the needs of the service, in addition to each partner's objectives. This will also allow a true partnership relationship that will better serve the community.
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| 2.4 | A Consultative Forum, responsible to the Partnership Board, would be formed. It would be set up to encourage greater consultation and involvement with the community (Best Value - Consult) resulting in more local accountability. A DCLM Regional Director or Contract manager would chair the Consultative Forum with representation from: users, clubs, staff, Police, Health, Education, Social Services as well as other stakeholders. The members of this Forum will be voted on and off by the LCP Partnership Board and will have precise terms of reference.
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| 2.5 | The Regional Director will report to the LCP Partnership Board on a regular basis (usually 3 times/year) and seek approval for decisions outside the terms of reference of the Consultative Forum.
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| 2.6 | DCLM, the Local Authority, LCP or any combination of these will provide capital investment, taking into consideration the necessary impact on the management fee. Surpluses generated from the LCP will remain within the NPDO Company and will be used to continue to improve the service (Best Value - Continuous Improvement). All schemes to be approved by the LCP Partnership Board and will be based upon any recommendations from the Consultative Forum and from DCLM/LCP. Capital investment from DCLM/LCP will be subject to its main Board approval.
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| 2.7 | The working partnership embodied in the LCP model offers considerable opportunities for Local Authorities to continuously improve leisure services. Community and stakeholder membership of the Consultative Board offer ongoing accountability. DCLM is committed to Best Value and can assist the Authority in these areas.
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| 2.8 | Leisure and sports provision clearly makes a huge contribution to the well being of communities. This role is complementary to the Council's wide range of services and offers opportunities for partnership working across departments.
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| 2.9 | The LCP and DCLM would be in a position to assist the Local Authority with the formulation of its community strategy under Part 1 of the Local Government Act 2000. The LCP approach offers a model whereby leisure provision can work alongside other regeneration initiatives, and indeed could be used to manage other related projects such as community facilities, conference centres, or health projects/sports development.
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| 2.10 | By entering into this kind of partnership with DCLM, the LCP is a community focussed structure that has the potential to achieve sustainable leisure services through long term partnering arrangements, in which DCLM can provide investment and resources, adding lasting value to the progress already achieved in many parts of the country.
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