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Councillors R McLean and Taylor, having declared an interest in this item, left the meeting at this juncture and took no part in the discussion.
A report by the Depute Chief Executive (Education, Communities and Organisational Development) provided an update to the Council regarding Moray Leisure Centre's (MLC) progress and sought approval for an extension to their lease of the Moray Leisure Centre and Rainbow Castle Nursery.
During discussion, concern was raised that the Council was being asked to agree a further 10 year lease when a report on the future of Leisure Services in Moray would be considered in early 2020, and reassurance was sought that the Council was not at risk of being tied into an agreement which may need to change when the outcome of the leisure review is known.
In response, the Head of Governance, Strategy and Performance advised that Officers were recommending that Council agree the longer lease as this puts MLC in a stronger position when negotiating utility rates as more competitive rates are available to properties with longer leases and assured the Council that appropriate break clauses had been built into the agreement. The Depute Chief Executive (Education, Communities and Organisational Development) further highlighted paragraph 4.4 in the report which stated that, as the Council has not yet resolved the future model for delivery of leisure services in Moray or the long-term aims and outcome requirements for the service, break options would be included in the lease extension to retain flexibility for a full range of service provision options to remain open until a decision is reached, including a Service Level Agreement with Moray Leisure Limited.
Councillor Alexander noted the financial benefits available to MLC should they be provided with a long term lease in terms of negotiating cheaper utilities and was of the view that this would help the organisation get to a point where the Council could reduce the amount of financial support given to MLC and moved that the Council agree the recommendations as printed within the report. This was seconded by Councillor Leadbitter.
There being no-one otherwise minded, the Council agreed to:
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note the progress of Moray Leisure Centre over the past year;
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approve 10 year lease extensions and other variations of the existing leases (as set out in Section 4 of this report) of the Moray Leisure Centre and Rainbow Castle Nursery with Moray Leisure Limited; and
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note the arrangements to include an improved Service Level Agreement being in place by 30 June 2020.
Councillors
R McLean and Taylor rejoined the meeting at this juncture.