Agenda item

For the Committee to monitor the outcome of the review/recommendations made by the O&S Beach Huts and Chalets Task & finish Group.

The LLSM introduced the report and informed Members that a review had been undertaken in 2018 to assess the stock, pricing and practice of the Council’s beach huts and chalets facilities. A summary of the review’s recommendations included, a move to an online booking system, moving annual let chalets from one to five year licenses, and the formation of a new pricing matrix based on location, amenities and desirability.

Questions and Discussion

The LLSM informed Members that unfortunately weekly lets were down £3k on the previous year, which could be due to people not knowing about or struggling with the online booking system. He added that it could also be the result of lower visitor numbers to the district’s beaches this year compared to last.

It was reported that increasing the annual let leases from one to five years had drastically reduced the workload required to manage the huts and chalets, whilst the pricing index, which calculated cost based on the merits of the unit, had increased revenue by approximately £25k. This had resulted in a reduction of the waiting list numbers, though not enough to present any risk to the Council, with a nine year wait still required for Sheringham. The LLSM informed Members that the new licensing arrangements allowed for the license holder to relinquish annually, and for a license review to take place after three years.

The LLSM reported that conditions surveys had been undertaken, and that any work required had gone out to tender for urgent repairs. He added that overall the review had brought good progress, but there was still work to be done in areas such as improving the marketing strategy. Cllr N Housden asked whether the maintenance costings would be seen by the Committee, and whether any significant improvements were made when repairs were undertaken. The LLSM replied that he could bring maintenance costs to a future meeting, and that improvements to the huts could be considered in the future, such as installing solar panels. Cllr G Mancini-Boyle asked if any preventative maintenance surveys had taken place, and suggested that it was a more cost-effective way to manage maintenance. The LLSM replied that repairs were not made on a preventative basis at present, though redecoration of the huts and chalets was done in groups.

Cllr H Blathwayt referred to the nine year waiting list, and asked if there was any chance of increasing the estate. The LLSM replied that there had been some increases over the past few years, but space for further expansion was limited.

Cllr E Spagnola asked how many huts and chalets were accessible, and whether changing places were available to users. The LLSM replied that from his personal experience, he had found the beach huts to have good accessibility. The HFAM added that the Council had recently received funding for improvements to be made to the Edwardian Block adjacent to the disabled parking area, which would include improvements to accessibility, and adding electricity provision.

Cllr N Housden asked if any beach huts had been considered for removal as a result of landslips. The LLSM replied that none were being considered for removal at present. The Corporate Director (SB) added that the resilience of the Council’s assets was under review, as some facilities could be relocated at a cost of approximately £8k-10k, which was generally considered to be cheaper than repair or replacement. It was reported that the movement of leased beach huts was discretionary, as the leaseholders had to bear the costs involved. Members were informed that the Council did lose some chalets as a result of the 2013 storm surge, though this had allowed for an increase in disabled parking spaces. The Corporate Director (SB) stated that beach huts and chalets remained a discretionary area of service for the Council, and whilst investment in the provision had not been directly offset before, it may become a future requirement.

Cllr W Fredericks stated that she had given up her chalet recently due to cost, but understood the need for price increases. She then asked if there would be any further price increases during the five year lease period, and it was confirmed that the prices would be reviewed after three years. Cllr W Fredericks referred to Mundesley specifically, where facilities were only available May to October, and asked if there would be any difference in price as a result. The HFAM replied that rates were cheaper in Mundesley, as the pricing matrix took into account differences in the level of facilities.

Cllr W Fredericks suggested that the Council should advertise its beach huts and chalets on the Visit North Norfolk website.

The Chairman stated that it was good to hear that the Council had avoided any major issues with its beach huts, then asked if the service ran a surplus after taking into account maintenance costs, and whether the financials were available. The HFAM replied that the figures would be included in budget monitoring reports at a high level, and that generally speaking, the beach huts had very little liability as it was now mandatory for leaseholders to insure their huts. He added that income from chalets was more marginal due to higher maintenance costs. The HECD stated that the review did consider a cost-benefit analysis of providing the beach huts and chalets, as it was important that they were self-sustaining, as with all assets. The LLSM added that in the 2017/18 financial year, the beach huts and chalets provided a net surplus of approximately £30k.

The Chairman asked officers if they found the Task and Finish Group review helpful, to which the LLSM replied that he had found it to be a very thorough review with fresh eyes that had been very helpful.

The Chairman asked Committee Members if they felt it would be necessary to undertake an annual review of the service to ensure its ongoing sustainability. The Corporate Director (SB) suggested that if an annual review were to take place, then it should be pre-season, to allow for any marketing recommendations to be implemented. It was proposed by Cllr W Fredericks and seconded by Cllr H Blathwayt that an annual monitoring report on the Council’s beach huts and chalets be provided to the Committee in April.

RESOLVED

That an annual monitoring report on the Council’s beach huts and chalets be provided to the Committee in April.