Meeting documents
Executive (I)
Friday, 11th October, 2013
| REPORT TO: | 84 |
| DECISION NUMBER: | PH/106/2013 |
| EARLIEST DATE FOR DECISION: | 11th October 2013 |
NEW PUBLIC CONVENIENCE FACILITY ON CENTRAL PROMENADE | |
| Matter for Consideration: To consider the installation of a new public convenience facility on the Promenade close to Central Pier. | |
| Information: It has been an ongoing issue that there are no public toilets between Central Pier and Starr Gate. As more events are delivered and with in excess of potentially 12 million visits this year, it continues to be an issue that no public toilets are available. Subsequent to discussions and agreement with Danfo in relation to savings on the contract they have agreed to fund the siting of a new toilet block on the Promenade, south of Central Pier. Danfo are prepared to fund this additional provision at a cost of £125,000, which will be made up of the unit that was originally at Talbot Road Bus Station prior to the commencement of works on the Central Business District and toilets from Starr Gate, resulting in a new block that will contain nine units. As part of this relocation the license for the unit at Starr Gate will be terminated. The new facilities will be clad appropriately, in order to satisfy ultimately planning requirements. Danfo will recoup their investment by retaining the coin income collected from the facility. Although, once the investment has been recouped, the income will be shared between Danfo and the Council. Danfo have agreed an open book policy on all costs. Danfo are investing their own money into the facility, with business rates and utility costs being required to be paid for by Blackpool Council under the contract. In terms of the latter, business rates and utilities are £2,000 and £15,000 respectively. There is budget to recycle from the two units that will be moved as part of this project (Talbot Road and Starr Gate) which is Starr Gate £4,752 and Talbot Road £475; total £5,227. Therefore the net anticipated revenue cost to Blackpool Council will be £11,773 per year and this will result in a financial pressure until Danfo have recovered their investment. Current assumptions of the income generation expected from the new facility, suggests that the initial investment will be recouped within 32 months of the opening date. It is therefore reasonable to assume that the financial pressure in the first stage of the facilities life will be no more than £32,000. Based on projected figures for this year, Blackpool is expecting around 12 million visits to the resort with a large proportion of those visitors using the promenade during their visit. If only 2% of the 12 million visitors use these new toilets the new facility will generate £48,000 annual income from a charge of 20p per visit, giving Danfo an opportunity to recover their investment over two years and 8 months. In future years going forward, Blackpool Council will share the income generated from the facility with the potential to collect £24,000 annually. This income would not only recover the revenue costs for the facility of £11,773 but off-set costs during the period of no income to the Council. The additional £12,227 income after all additional costs of the new facilities are covered means that the £32,000 additional costs absorbed in the first phase of the facilities life will be fully recouped within 2 years and 8 months of entering into the income share arrangement. Effectively, the initial cost pressure from covering the additional cost of the facilities will be absorbed by savings in Leisure and Operational Services during the first phase of the facilities lifecycle, and then be recouped from the income share arrangements during the second phase: the total initial outlay of £32,000 to be fully recouped within 5 years 4 months of the facility opening. It should be noted that if this proposal progresses then the intention would be to encourage Danfo to provide further toilets close to South Pier | |
| Does the information submitted include any exempt information? | NO |
| Legal Considerations: At the end of the Danfo contract with the Council, the facility will transfer to Council ownership. | |
| Personnel Considerations: Maintenance and cleaning of the new facility will be carried out daily by Danfo’s own in-house staff. The block will contain a fully accessible toilet in order that the facility is accessible to all. | |
| Financial Considerations: Danfo will fund and retain the income from usage until their investment is returned, at which point income will be shared and off-set previous revenue costs of the council. | |
| Performance Management Considerations: To enable Danfo to make a full year return and maximise their income, the facility will need to be fully operational for the 2014 season. | |
| Risk Management Considerations: To not provide the facility will have a detrimental effect on Blackpool's visitor experience. | |
| Relevant Officer: Stephen Thorley-Baines, Head of Facilities Management, Capital and Regeneration | |
| Relevant Cabinet Member: Councillor J. Jones | |
| Consultation Undertaken: Consultation has taken place with Stay Blackpool, who support and welcome this approach. | |
| Background Papers: None | |
| Is this a key decision? | NO |
| Is the decision required in less than 5 days? | NO |
| Recommendations: To agree to enter into an agreement with Danfo, in order to provide a toilet block on the Promenade south of Central Pier, which is funded by Danfo with income retained by them in full until their investment has been recouped. | |
| Reasons for Recommendations: In order to provide public toilets close to the south side of Central Pier. | |
| Is the recommendation contrary to a plan or strategy adopted or approved by the Council? | NO |
| Is the recommendation in accordance with the Council’s approved Budget? | YES |
| Other alternative options to be considered: Options in relation to public using hotels, however this raised a great deal of questions and concerns. | |
| Policy, Overview, and Scrutiny Committee Chairman (where appropriate) Date Informed: N/A Date Approved: N/A | |
| DECLARATION(S) OF INTEREST (if applicable) None | |
| Decision: The Cabinet Member agreed the recommendation as outlined above namely: To agree to enter into an agreement with Danfo, in order to provide a toilet block on the Promenade south of Central Pier, which is funded by Danfo with income retained by them in full until their investment has been recouped. | |
| Date: | 11th October 2013 |
| Reason for Decision: In order to provide public toilets close to the south side of Central Pier | |
Date of Publication: | 11th October 2013 |
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