
At Cabinet on 14th July (at which I was present) the decision was made to "market test" the Management of Arena and Conference Centre as required by the grant condition. (it also included the resolution to bring in external expertise to formulate the tender specification and manage the process).
This grant condition refers to the funding to build the extension and a condition of receiving the funding was that the management of this area should go out to tender. This condition goes back to Dec 2006 - this raises the first question as to why this has not been done already.
The decision on the 14th July 2009, overrules a decision made back in March 2008, where the decision was made to market test the whole Venue Cymru facility (i.e. to include the Theatre). The reason for the report and resolution in March 2008 was to met the grant funding condition.
The resolution from March 2008 was to proceed to market test "as quickly as possible" and to identify resources to produce the specification. - Why has nothing happened on this between March 2008 and July 2009?
How many other resolutions made by Cabinet or Council, have just gone by the wayside?
Who's responsibility is it to ensure that these resolutions are followed up and actioned?
These are questions I will be asking.
At the meeting on 14th July, I suggested that the Theatre management should be included in the market test, even as just an option. This was dismissed by the Chief Exec. Discussions took place about the whether to go to market test at all, and if so what parts of the site should be included in the specification.
In March 2008 it was recognised by the officer report that it would be impractical to separate the management of different aspects, as so much resources are shared amongst the whole site.
Currently the Venue Cymru facility requires a subsidy (from the Council funds) of over £1m per year to operate. Although bringing an external management may still need some subsidy, but it could be mitigated over the life of the contract. A point raised in the March 08 report.
Public Finance that we receive from the Welsh Assembly will be under a severe pressure and will be reduced in real terms over the next 5 years, this has been widely be publicised. Hence we need to consider all options to reduce our costs, and we will be having to make some difficult decisions on those services we offer and manage. We have to do this to ensure the implications on the Council Tax are kept reasonable.
I am part of a new Budget Working group that are going to start this process at a meeting this afternoon.
I have signed the call in on the decision, which means the subject will be discussed at the Principal Scrutiny Committee on Monday. You need 3 councillors to call-in any decision, and this is not the first I have done. There are a lot of members who are also concerned with this decision and I understand there were plenty other members who would have signed.
As I have signed the call-in I will be speaking at Principal Scrutiny at 10:30 on Monday 3rd August.
It is imperative that any decision to move to external management of the facilities should include conditions to protect the other funding and local need. E.g. The Arts Council of Wales grant funding should ensure the development of local culture. Conditions should also maintain focus on the facility to assist with the regeneration of Llandudno. These issues I believe can be converged by conditions in any contract, and any external management company would probably recognise that these are issues that they should tackle anyway.
It is likely that the current Council run management of the Venue, would submit a bid for this work. Hence we will need to ensure that the process is transparent and that any decision is fully supported and justified. May be this is one area where external (independent) expertise would be useful.
Questions are now being made on why we need to recruit so much external expertise. There are times when we do not have the in house speciality to complete some work, there are also cases where it is more cost efficient to recruit temporary expertise rather than recruit permanent members of staff. I still feel there is scope for this to be reviewed further and identify those areas where similar consultancy is brought in across different parts/services of the Council. External tendering seems to be an example where we seem to perform a lot of this, would it not be better to bring this type of function to a central function and build up expertise internally ? More on this and similar issues on a future post.