Agenda item

1.    The Sandwell Aquatic Centre Energy Cost uplift Business Justification Case for a maximum grant of £1,395,754 funded by the Commonwealth Games Legacy Enhancement Fund and subject to the terms and conditions of the funding agreement in place between DCMS and the WMCA and additional clawback clauses if there is an additional expected underspend be approved;

2.    The release of £604,246 on the back of the previous March 2023 WMCA Board Commonwealth Games Legacy Enhancement Fund (CWGLEF) allocation be approved (such changes are in line with the WMCA’s change control process, enabled by the Single Assurance Framework and signed off by the relevant boards of the WMCA and the change control process confirms that any underspends that emerge from the CWGLEF, are directed first towards the regional Plan for Growth or Community Grants programmes) be approved;

3.    Subject to the approval of this investment, the WMCA pays a grant, quarterly in arrears, to Sandwell MBC from October 2023 based on monthly monitoring reports on actual spend and any additional underspends identified by 30 April 2024 be directed in line with the WMCA’s change control process first towards the regional Plan for Growth or Community Grants programme be noted and

4.    Sandwell MBC funds £515,323 of the energy costs and any overspend above the forecast of £1,911,077 be noted.

The board considered a report of the Interim Director of Employment, Skills

and Communities that sought approval of the Business Justification Case

for the Sandwell Aquatic Centre Energy Costs from the Commonwealth

Games Legacy Enhancement Fund. It was noted that it was agreed by the

WMCA Board that all business justification cases funded from the

Commonwealth Games Legacy Enhancement Fund would be submitted to

Investment Board for approval.

The Assistant Director Borough Economy (Sandwell), Ben Percival,

 outlined the report and advised the board of the need for financial

 support from the WMCA due to the unprecedented rise in energy costs

 which posed significant challenges to the planned successful operation of

 the centre which was of regional importance.

 He added that financial support was only being requested for the actual

 cost pressures and any underspends would result in undrawn funds that

 would be directed towards the regional Plan for Growth or Community

 Grants programme as set out in the WMCA Board report of 17 March 2023.

 Councillor Courts reported that the WMCA Board strongly supports the

 facility but noted that the target objectives in the business case do not refer

 to the centre being a regional facility.

The Head of Health & Communities, Mubasshir Ajaz, reported that the

facility was for the betterment of the region and agreed for the need to

publicise it across the West Midlands.

The Assistant Director Borough Economy (Sandwell), Ben Percival,

reported that from the 46 schools using the facility, 11 schools were non-

Sandwell and advised that regional swimming events have been booked.

Also, it was hoped the national diving competition and other major swimming

events could be hosted at the venue. In relation to the business case not

referencing the facility as a regional one, it was noted that this was not

included as it would impact the modelling; if the funding was not available,

other centres would need to close rather than the Aquatic Centre.

In relation to an enquiry from Councillor Dormer regarding the 46 schools

using the facility and where these came from, Ben Percival undertook to

look into the matter.

      Councillor Andrew considered it was vitally important that regional events

      could be hosted at the Aquatic Centre and enquired whether the facility had

      adversely impacted other swimming facilities, the Assistant Director

      Borough Economy (Sandwell), reported that the detrimental impact was not

      being tracked but facilities had been closed at Langley and Smethwick

      when the Aquatic Centre opened. The modelling with Sports England

      indicated the facility fulfils existing demand not over demand.

      The Chair asked that changes in the demand and usage of the Aquatic

      Centre be tracked.

       Resolved that:

1.    The Sandwell Aquatic Centre Energy Cost uplift Business Justification Case for a maximum grant of £1,395,754 funded by the Commonwealth Games Legacy Enhancement Fund and subject to the terms and conditions of the funding agreement in place between DCMS and the WMCA and additional clawback clauses if there is an additional expected underspend be approved;

2.    The release of £604,246 on the back of the previous March 2023 WMCA Board Commonwealth Games Legacy Enhancement Fund (CWGLEF) allocation be approved (such changes are in line with the WMCA’s change control process, enabled by the Single Assurance Framework and signed off by the relevant boards of the WMCA and the change control process confirms that any underspends that emerge from the CWGLEF, are directed first towards the regional Plan for Growth or Community Grants programmes);

3.    Subject to the approval of this investment, the WMCA pays a grant, quarterly in arrears, to Sandwell MBC from October 2023 based on monthly monitoring reports on actual spend and any additional underspends identified by 30 April 2024 be directed in line with the WMCA’s change control process first towards the regional Plan for Growth or Community Grants programme be noted and

4.    Sandwell MBC funds £515,323 of the energy costs and any overspend above the forecast of £1,911,077 be noted.