Decision details

1.

This report and associated appendices have been submitted for consideration as a General Exception under paragraph 15 of the Access to Information Procedure Rules in Part 4 of the City Council’s Constitution, notice having been given to the Chair of the relevant Scrutiny Panel and the Public.

2.

A number of options have been considered (see the “Alternative Options Considered and Rejected” section of this report and further detail in confidential appendix 1).

3.

Since it became clear that the extension was not viable, Officers have been working with Max Associates (industry leading leisure specialist) and have consulted them on the best way forward. Max Associates are in agreement that a short-term procurement of three or four years.

4.

Max Associates have agreed to support The Council through the procurement providing expert knowledge and experience.

5.

There is not sufficient time to run a thorough multi-stage procurement process that is required for a long-term contract.

6.

An indicative timeline for a short-term procurement exercise has been detailed below. Cabinet are asked to note that these timescales are challenging and may require adjustment.

7.

This option gives us the best chance of maximising savings opportunities in the short term while still allowing time to develop the best options for the long-term leisure facilities mix and approach. Overall the recommended is the best approach for working towards the target position in the current circumstances.

8.

The Council is in the process of developing longer term investment plans, it is not possible to go out to tender for a long-term contract that will include major investment until the details are known, to ensure submissions can reflect the future facility mix. A short-term contract will enable the Council to finalise its plans, develop a robust procurement strategy, and then procure a long-term contract that enables the delivery of the Councils longer term vision for leisure.

9.

The current financial position and data available from Active Nation is expected to be limited.

10.

Key Performance Indicators (“KPIs”) will be provided within the contract, it may be necessary to give the contractor some time to get this set up, once the contract has started.

11.

Soft market testing has determined there would be interest in the contract.

12.

The Leisure team will work closely with appropriate external support if required through the process to ensure a successful appointment of an operator. The team will also work to ensure a smooth transition, minimising any impact on users, this will involve the transfer of certain bookings and a solid communication plan for users and groups /clubs. The Leisure team will support the new contractor to strengthen relationships with users and key stakeholder groups.