In 2006, KKP delivered a complex management options appraisal covering the 17 dual use facilities operated by Somerset County Council with a range of partners; districts, schools and local trusts.

In response to the challenges faced by rural communities accessing sports facilities, the County Council's Leisure Services managed all dual use facilities (i.e. based on school sites) with district authorities servicing their own freestanding wet and dry sports provision.

Recognising the need for improvement, it had developed a clear standard of operational practices and via better co-ordination of its systems and processes had been able re-align budgets and re-focus investment. This resulted in increased throughput and income at some facilities. Keen to maintain this momentum, the County Council appointed KKP to: "provide an independent assessment of all the service delivery options for leisure management, to compare them with current forms of service delivery and to identify the advantages, disadvantages and key issues associated with them."

We delivered:

• An outline appraisal of the range and scope of Council's Leisure Service provision.
• Identification of the criteria against which to evaluate the options for service delivery. 
• A financial and non-financial appraisal of the options for all of the services.
• Recommendations on overall 'best fit' as well as for each of the options.

In so doing, KKP visited and interviewed staff at all facilities, conducted a desk review of pertinent documents and analysed financial information. Additionally, our consultants met with key officers from Leisure, Personnel, Legal, Education, Asset Management and Procurement.

Six potential options were identified for the Council to consider as part of the appraisal:

• Option 1 - Status quo. All services managed in-house, but within an enhanced framework which enables the service to maximise income especially from health and fitness facilities.
• Option 2 - Mixed economy of schools providing the management function of the facilities.
• Option 3 - Establishment of new non-profit distributing organisation (NPDO). 
• Option 4 - Private sector partnership (Concession contracts/PPP).
• Option 5 - Private sector 'hybrid trust'.
• Option 6 - Partnership with an existing non-profit distributing organisation.

Our recommendation was that the Council should progress with Option 3 and establish a new sport and leisure trust to manage its stock. This option was considered to offer the best value route for the Council with regard to the operation of facilities and delivery of its corporate objectives. It also:

• Offers favourable VAT and NNDR savings.
• Brings and embeds community involvement through the board of trustees.
• Has potential to secure capital expenditure (loans) if savings are ring-fenced for the service.
• Offers best value for money and a good fit with the Council's ISIS project.
• Can be implemented via the current, strong service management team supported by strong existing relationships with key partners.
• Offers the most economically advantageous option to the Council.

In progressing with the set up of a trust, KKP identified a number of issues that needed further consideration:

• How to get buy-in from head teachers at the schools.
• Intricacies as not all seventeen facilities were proposed for externalisation, some being transferred across to allow, at least in the short-term, management by the schools themselves.

The County Council followed KKP's advice and in November 2008, the Executive Board approved the creation of a new Trust partner for the County Council, Somerset Leisure Trust Limited. This went ‘live' in April 2009.