Issue - meetings

The Portfolio Holder for Housing and Communities to submit a report confirming the proposed terms of the contract extensions, resulting from negotiations and recommending the extension of the contracts.

Cabinet

1)     NOTED the decisions taken to date in respect of the interim support provided to the Leisure Operator, Sports Leisure Management (SLM) during closure & remobilisation periods, and the Deed of Variation agreed for the period September 2020 to March 2021;

2)     APPROVED the extension of the contracts for Waterfield Leisure Centre (WLC) and Melton Sports Village (MSV) for a period of 2 years, on the basis of the contract terms detailed in the report and the financial information in Appendix A;

3)     DELEGATED authority to the Chief Executive, in consultation with the Leader of the Council, to finalise and enter into any contract / property documentation necessary to affect the extension within the parameters set out in this report;

4)     APPROVED further work to be undertaken on:

(a)   the options around the Council’s offer to residents in respect of leisure services from April 2024;

(b)   an options appraisal of Council-owned leisure sites in the context of the Council’s Corporate Asset Management Strategy;

(c)   the recommendations from 2.4.a and 2.4.b to be submitted for Cabinet’s consideration in February 2022.    

Andrew Cotton, Director for Housing and Communities, introduced the report, the purpose of which was to update Members on the Council’s leisure contract and consider continued support to the leisure service in light of the pandemic and seek approval for a Deed of Variation.

Councillor Pearson, Portfolio Holder for Housing and Communities, moved the recommendations and explained that the Council was committed to providing good quality leisure and had a statutory responsibility to support the leisure provider and had taken a pragmatic and considered approach to reach the recommendations in this report. The Leader seconded the motion.

There was a query relating to the number of years of the contract and aligning this with previous arrangements. It was noted these would be aligned to end at the same time.

Councillor Higgins lost visual connection during this item however he was able to contribute to the debate and vote by phone.

DECISIONS (KEY)

Cabinet unanimously

1)     NOTED the decisions taken to date in respect of the interim support provided to the Leisure Operator, Sports Leisure Management (SLM) during closure & remobilisation periods, and the Deed of Variation agreed for the period September 2020 to March 2021;

2)     APPROVED the extension of the contracts for Waterfield Leisure Centre (WLC) and Melton Sports Village (MSV) for a period of 2 years, on the basis of the contract terms detailed in the report and the financial information in Appendix A;

3)     DELEGATED authority to the Chief Executive, in consultation with the Leader of the Council, to finalise and enter into any contract / property documentation necessary to affect the extension within the parameters set out in this report;

4)     APPROVED further work to be undertaken on:

(a)   the options around the Council’s offer to residents in respect of leisure services from April 2024;

(b)   an options appraisal of Council-owned leisure sites in the context of the Council’s Corporate Asset Management Strategy;

(c)   the recommendations from 2.4.a and 2.4.b to be submitted for Cabinet’s consideration in February 2022.    

Reason for the decision

1.1.a       The government enforced closure of leisure centres affected the viability of SLM to generate any revenue to cover the costs of the period of closure.

1.1.b       The government's guidance was that local authorities should act to ensure leisure operators at risk are in a position to resume normal contract delivery once the outbreak is over and, by implication, seek ways of providing support. Public sector outsourcing contracts such as the two leisure services contracts typically include a provision to apportion the cost risk of specific ("qualifying") changes in the country's laws. This means that contractors do not have to include a risk premium for these changes in their pricing which the public sector would pay even if that risk does not materialise. On balance these clauses result in better value for money for the public sector, however if the risk does materialise – as has been the case with the various Coronavirus Regulations in force since March 2020 – then the  ...  view the full minutes text for item 167