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Dear Stakeholder Mid Argyll Swimming Pool – Report of its future Operating Viability I am writing to you to provide you with a further update on the operating status and viability of the Mid Argyll swimming pool. As you know following the AGM in June the new Board of Directors appointed to MACEL (the Community Enterprise Company with charitable status that runs the pool) have continued to attempt to progress and address the range of issues identified to secure a sustainable solution for the pool. This work has now culminated in the Board producing a formal report assessing the operating viability of the pool from now and looking forward to the next 2 years. As a Board, we are confident that that there is a future for the Mid Argyll swimming pool, however, we would not be meeting our governance responsibilities if we neglected to inform you of the serious financial and operational issues facing the pool, which could potentially see it close by the end of December 2009. The key elements from the report drawing us to this conclusion are: · The outcome of our full financial "Health Check": o The pool has no financial reserves to draw upon to deal with cash flow or fund building/equipment life cycle replacement or maintenance e.g. re-tiling the pool and essential equipment maintenance. o The £25,000 raised by the community to meet the financial crisis in the pool has been spent on clearing the overdraft with the Bank (£16,000) & payment of outstanding invoices £8,000.o The income from users and contracts with the council does not cover the cost of operating the pool and it will return to deficit in December 2009 and the Board is forecasting an operating loss of £21,000 for 2009/10. o Undertaking a range of cost improvement measures to reduce energy costs by 40%, removing non profit making vending machines etc.o Utilising leisure management expertise from Argyll and Bute Council to identify and implement a range of cost saving initiatives particularly a review of staffing to meet Health and Safety standards and timetable needs. o Reviewing and revising the price list and timetable to reflect actual usage of the pool and identify new opportunities to enhance income e.g. specific youth group sessions. o Identifying opportunities to increase income in the pool by running more sporting events (“Crinan 9” running race is in the process of being planned for March 2010) and accessing and submitting proposals for other grant funding. · Addressing operational issues notably: o Recruiting a sustainable and competent staffing establishment to cover Maternity Leave, Staff vacancies etc until March 2010 as well as staff training. o Board Directors shouldering all the day to day general management and operational issues due to the long term sickness absence of the pools manager (18 months) whilst taking forward action to resolve the situation. o Reviewing the swimming lesson programme and waiting list and looking to implement a high quality swimming teaching programme once the pools qualified level 2 swim teachers return from maternity leave. · Undertaking a review of the plant and maintenance requirements of the pool, instigating outstanding Health & Safety action, improving energy efficiency (electricity costs have reduced significantly) & identifying a priority list for investment. · Responding to the flooding of the pool plant room in August. However, the main issue within the pool is its financial viability and its consequent future sustainability. The forecast ‘Income and Expenditure’ profile shows the pool running into a loss in December 2009 which would mean the closure of the pool at that time. Notwithstanding the cost improvements identified, a cash injection of £10,000 is urgently required in order to keep the pool open for the remainder of this financial year. Without this the pool will face a year end deficit of approximately £11,500, and a year end loss of £21,000 and it will have to close in December. Looking forward to 2010/11, the Service Level Agreement (SLA), which the pool has with the council, expires in March 2010. The MACEL Board has identified that, in order to provide a viable service (which includes developing a financial reserve for equipment replacement and essential maintenance, appointing and funding an operational manager to effectively manage and support the development of the business) an additional £30,000 p.a. will be required for the SLA. We are therefore in active and ongoing discussions and negotiations with the council. The MACEL Board is also clear that the sustainability of the pool cannot be left solely to be carried by the Board. The members of the new Board are volunteers who responded to the crisis in the pool in March 2009 and while, they remain enthusiastic, creative and committed to retaining this essential service for Mid Argyll, the fact that the Board has had to shoulder all the serious operational management, financial and governance issues has reached the point where this is no longer sustainable. A very similar situation was identified and acknowledged by Argyll and Bute Council in 2002, the last time it considered an SLA uplift request from the MACEL Board. Argyll and Bute Council has been very supportive to the pool and is looking to provide a range of “in kind” support including some part time operational management. This partnership approach and the support offered is very welcome and essential, in reality it will not be sufficient unless direct additional financial assistance can also be arranged. It will however, help the Board by providing effective and appropriate operational and business management support for the immediate future. Conclusion The MACEL Board has concluded that keeping the pool open requires a scale of intervention (particularly financial) that is significantly beyond the resources and capacity of the existing staff and Board to deliver for 2009/10 and 2010/11 onwards. It has identified the need for an immediate cash injection of £10,000 by December failing which the swimming pool will close by the end of that month. The cash crisis we are facing is merely the latest in a sequence of similar events since the pool was first built and they have all stemmed from the fact that the pools core funding has never reached a sustainable level. Notwithstanding this the current Board of MACEL remains committed to and believes that there is a viable future for the Mid Argyll swimming pool. We have therefore submitted an "Operating Viability Report" to Argyll and Bute council with an urgent request for formal operational management support together with an emergency financial assistance of £10,000 in 2009/10 and an increase in the value of its SLA from April 2010 of £30,000 to secure this future. I am also asking you as a key stakeholder for any further support you can offer together with any other suggestions we can explore. If we can obtain this financial certainty the MACEL Board and its members will continue to actively and aggressively take forward the development of the pool with core and grant funding, offering best value to our stakeholders and customers, and a high quality and responsive leisure facility for the community it serves. I will continue to provide you with formal updates over the coming months. If you would like a copy of the report or any further information please contact me via my e-mail
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or telephone the pool and leave a message and I will get back to you. Please feel free to distribute this letter further. Yours sincerely Stephen Whiston Chair of the Board MACEL Circulation Head Teachers all local Schools, Secretary Dolphins, Secretary Mid Argyll Tri & Cycle club, Local Community Councils, M&K Macleod, A&B Council – Leisure and Education Services, Mid Argyll Councillors, Mid Argyll Swimming pool, Lochgilphead Police, PACT, Mid Argyll Youth Project, Chief Executive Argyll & Bute Council, MP’s, MSP’s, MACEL Members
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