Minutes:
Members considered a report which proposed and sought agreement to a deed of variation to the existing Leisure Contract with Sports and Leisure Management (SLM) the Council’s contracted leisure provider.
The Section 151 Officer, in presenting the report, outlined the reasons the deed of variation was sought and the circumstances which had arisen both during and post Covid, swiftly followed by significant inflation in utility costs, noting the Government’s guidance and advice in such situations, and as contained in the legal implications of the report.
Members were advised of how the deed of variation would impact budgets and how it was proposed these impacts would be funded, referring Members to the financial implications section of the report.
The negotiations which had taken place were outlined to the Committee and the final negotiated position being proposed was set out at Section 2.7. It was stressed that the negotiated position was based on a number of key principles again these were detailed in the report at Section 2.7 and were highlighted to Members. Furthermore, these principles would be set out within the “variation to contract” document once finalised.
Debate ensued during which Members expressed concerns about historic contract management issues. It was also questioned as to whether the provider was doing all it could to encourage people to return to the centres. The Committee understood that given the circumstances, a variation to contract would need to be agreed but given the historic issues that had been raised and continuing concerns regarding the offer and its attractiveness, it was with reluctance.
Members were clear that they expected the provider to be doing more to encourage use, making sure the offer was attractive and what the local community wanted. There were a number of examples cited of activities, that through local knowledge, the Committee knew had proved popular – even oversubscribed yet had been discontinued. It was suggested more needed to be done by the provider to look after and enhance those activities which did engage users.
The principles to be included in the “variation to contract” document were welcomed, and allowed for greater oversight, but given the comments from Committee Members and statements made by the provider during negotiations regarding the longevity of one site it was proposed and seconded that: -
(ii) the Provider be asked to outline how they would like to see the sites developed in the future from environmental, sustainability and profitability aspects.
On being put to the vote the amendment was accepted. Members confirmed the deed of variation would be accepted and signed but that the Committee wished to have sight of the requested information before the variation to contract was signed.
Members also indicated they expected greater and more effective contract management moving forward. Members again requested a workshop in order that they may understand which elements of the current service they may affect under the current contract and which matters would fall outside of scope.
Officer undertook to arrange such a workshop in due course, noting the pressures and Members diaries at present.
Members also requested that Officers liaise with the providers regarding roller discos, and the indoor cricket referred to seeking to understand why the activities had ceased.
On that basis it was RESOLVED that:
(a) the Section 151 Officer, following consultation with the Chairman of Corporate Policy and Resources Committee, be authorised to enter into a funding agreement under a Contract Deed of Variation, with Sports and Leisure Management Ltd, of up to £277,824 for the period 1 April 2022 to 31 March 2024, (exact funding representing the actual deficit to be agreed separately for each month under open book accounting from 1 April 2022 to 31 March 2024);
(b) the amount agreed under (a) above be funded from the Covid Earmarked Reserve; and
(c) the funding agreement under the Contract Deed of Variation, referred to above at (a), only be entered into once the Committee are in receipt of the information requested through the debate, namely: -
(i) the Provider submit to the Committee further details of their financial and management recovery plans, setting out how they intend to bring about change to the current sports centres; and
(ii) the Provider outline how they would like to see the sites developed in the future from environmental, sustainability and profitability aspects.