Active Membership charges from November 2020 due to Covid-19

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A decision made on 28 October 2020

Decision Reference: MD-E-2020-0046
Decision Summary Title :	Active charges due to Covid19	Date of Decision Summary:	15 October 2020
Decision Summary author	Private Secretary	Decision Summary: Public or exempt?	Public
Type of report: Oral or Written?	Written	Person giving Oral Report:	n/a
Written Report title :	Active charges due to Covid19	Date of Written Report:	13 October 2020
Written Report author	Operations Manager – Sport Division	Written Report: Public or exempt?	Public
Subject: Active Membership charges from November 2020 onwards due to Covid19
Decision: The Assistant Minister with responsibility for Sport decided to approve an adjustment in the Active Card sports membership rates with effect from 01 November 2020. After that date, all customers will move to Direct Debit payments and the fee will be set at 75% of the pre-Covid rate.
Reasons for Decision: Sports facilities have been affected by the activity restrictions required to manage the coronavirus pandemic and the services have had to be reduced in order maintain social distancing required to keep customers safe. Following ongoing reviews and assessment by the department – of both the finance and operations, and consultations with its customers – the new membership pricing system is being introduced to ensure payments can me more flexible to adapt quickly to the impacts of Covid.
Resource Implications: The decision will result in a shortfall in predicted budget of approximately £81,000 for 2020 and these financial implications have been considered by the IHE Finance team and included in the year end forecast. Charging 75% of the original fee for 2021, would generate estimated membership income of £1.2 million (based on 2019 income). This represents approximately 63% of 2019 income in membership revenue. Circa £85,000 is refunded to advance paid members (before the end of 2020) currently freezing due to the impacts of Covid.
Action required: Operations Manager of the Sport Division to take the necessary action to apply the new charges to memberships from 01 November. That rate to apply until Public Health guidance no longer restricts free movement and service capacity can increase.
Signature: Senator Steve Pallett		Position: Assistant Minister for Economic Development, Tourism, Sport and Culture
Date signed:		Date of Decision (If different from Date Signed)

Active Membership charges ffrom November 2020 due to Covid-19

Economic Development,

Tourism, Sport & Culture

Ministerial Decision – Written Report

Active Membership November 2020 Onwards

Date: 13th October 2020

Author: Sport Division Head of Operations & Fort Regent Centre Manager

Summary

Restrictions on free movement, limited activity levels and enhanced cleaning requirements have been in place for Sport and Leisure facilities for some time, due to the Covid risks, restricting the ability to offer a full service to Active card members. The Sport Division wants to ensure that the Active membership continues to generate a reasonable income to support operations of Sports facilities, whilst continuing to represent value to its members.

Sports facilities were closed at short notice in response to the Coronavirus pandemic on the 23rd March and the Active Membership fees were frozen.

The centres opened cautiously on the 12th June, under strict Government guidance, with a limited offering and reduced operating times. Access was on a pre-booked arrangement only. The Active memberships were “unfrozen” to allow members to book their preferred activity slot using the Active Jersey App, but charges were held back and only started again from the 1st July at 25% of the pre-covid membership rates.

As the Island moved to level 1 of the safe exit framework, additional activities were added and capacities increased in some areas. Charges were increased to 50% of normal rates from the beginning of September and the equivalent discount was added to the term of the advance paid memberships.

Some customers do not want to return to the Centres until higher intensity activity indoors is available again and many are vulnerable and are not currently using the facility, choosing to freeze their memberships until higher intensity activity is again permitted or until they feel safe to return.

Now it is known that the Pandemic is likely to be affecting activities for a much longer term, this approach is not sustainable. It is confusing to customers, it is increasing the administrative burden on the Active Team and negatively impacting the Active income.

It is proposed that we draw a line and contact customers who are currently freezing, or in credit with pending renewals, and offer them a refund if they no longer wish to return to the facilities due to vulnerabilities or limitations on activities due to Covid.

It is further proposed that all customers due for renewal in the final quarter are also refunded their credit due to the Covid closures and discounted periods.

All Active membership types to be made available, including Student and Monthly memberships, and new Active annual sign ups only to be accepted on a monthly direct debit basis reducing the impact of the freeze options and improving the flexibility for both the Centre and the member, should we need to react quickly to respond to the Covid risk.

All would move forward with a new Membership rate for Covid, removing the need to continually recalculate extensions to the annual and corporate memberships.

It is therefore proposed that a rate of 75% of pre-Covid rates is applied to memberships from the 1st November and that the rate would apply until Public Health guidance no longer restricts free movement and high intensity activity and we are able to increase the capacities.