Agenda item

Members considered a report on the conclusion of the leisure procurement project.

This report followed on from papers that had been to Prosperous Communities on 8 December 2015, 19 July 2016 and 2 May 2017.  It outlined the principles of a new leisure contract.  These included:

·         Refurbishment of West Lindsey Leisure Centre;

·         The provision of a new dry centre at Market Rasen;

·         Provision of a district wide outreach service, should this be affordable.

The Communities and Commercial Programme Manager ran through the whole of the report, highlighting that:

·         West Lindsey District Council’s (WLDC’s) leisure advisers had worked with Officers to prepare a shadow bid; this helped to put an affordability clause in the contract which guaranteed the Council a minimum of £1.5 million income over the lifetime of the contract;

·         Contractors were asked to supply a variant bid for the outreach service.  This was completed as a separate price so that the Council could assess whether this was affordable;

·         The Sport and Leisure Management Bid (SLM) provided for a 15 year contract, with a full transfer of risk from WLDC in terms of maintenance and utilities.  WLDC will have a known financial position for the next 15 years;

·         There was £2 million of positive income over the lifetime of the contract;

·         £1.4 million of the capital set aside would be used to refurbish the West Lindsey Leisure Centre; this would be paid back to WLDC plus an additional 4% interest;

In summary, the current contract costs WLDC circa £300,000 a year; the new arrangements would transform the leisure service, provide a new centre and district wide outreach service, and, even taking into account the cost of borrowing, would provide WLDC with a surplus of £2.477 million over the 15 years of the contract.  By way of example, if the current arrangements were continued, the cost to WLDC would have been £4.5 million over the same 15 year period.

In terms of the timeline, the proposed scheme of refurbishments at West Lindsey Leisure Centre would commence in June 2018.  The first year of the new contract would involve design, and planning of the new centre at Market Rasen, and it was anticipated that this new centre would be operational from June 2020.

Note – Cllr John McNeill declared a personal interest at this point in proceedings as his wife and youngest sister in law’s husband both worked at the current site of the facility in Market Rasen.                                       

Following the overview of the report, Members provided comment.  The response to these comments are highlighted below;

·         There have been press releases around the current facility in Market Rasen.  WLDC have spoken to Market Rasen and Caistor Town Councils, as well as the schools involved, around the provision from two ‘chance to share’ schools ending this year.  The new centre will take some time to build; the district outreach service was designed to plug any gaps with that loss of leisure;

·         The new facility in Market Rasen was due to include a four-court Sports Hall, changing rooms, an exercise room and a 3g pitch.  Other funding will not be affected as there was no external funding for these provisions;

·         The centre would need to be well used, and with this in mind, extensive feasibility reports have been carried out by WLDC;

·         If the right mix of activities was not provided, then the risk sits with the contractor, not WLDC;

·         The areas of most need will be prioritised for the outreach programme; it was hoped that activities would be taken out to those who cannot access them;

·         There would be engagement sessions with Members which will include the contractor;

·         The real focus of the contract is that it wouldn’t just be a leisure facility; it was more a ‘health and wellbeing centre; with specialised facilities.

It was then moved, and seconded, and upon voting:

RESOLVED to appoint Sports and Leisure Management (SLM) Ltd. As the Council’s preferred partner and award them a 15 year contract to include the provision of a District wide sports outreach service; the contract is to commence on the 1 June 2018.