Decision details

Matter for Decision

This report was being presented to update Members and conclude the on ongoing work to review the Council’s leisure provision of facilities and services and gain authority to retender Council leisure services.

The review highlights the opportunities to deliver even more cost-effective services in the future and the rationale behind this, as well as the opportunities for contract update, modernisation and expansion, all of which contribute to improved cost efficiencies, and drive the delivery of even greater social value.

 

This review of leisure services has required consideration of:

·       What the Council’s core leisure offer should comprise.

·       Rationalisation of current facilities and provision if these were no longer required, or assessed not to be fit for purpose.

·       Opportunities for alternative and modernised service provision to inform future capital investment and to meet the city and sub regions’ changing demands or growth in demand.

·       Opportunities for education, community, and commercial providers to join in the future for management of their leisure facilities.

·       Models that could help the council to achieve financially sustainability, and accessible leisure provision, in a challenging financial climate.

·       Different operating models and management options where appropriate, including community asset transfer, in-house delivery, arms- length trust and external contract (s), and any other arrangements that could be considered.

·       In the context of changing leisure trends and demands, the need to make savings to the Council’s revenue budgets.

·       The need to increase levels of physical activity in the community and contribute to a reduction in health inequalities.

·       Partnership opportunities for engaging and delivery of interventions and health improvement programmes with Public Health.

 

Decisions were needed on:

·       To continue with an outsourced contract arrangement.

·       The principles and ethos underpinning future contract scope and timescales.

·       The length and scope of the immediate next contract.

·       Financial envelope available.

·       To extend opportunities both inside and outside of the city boundaries to other local providers, school academies and local authority facilities to join the contract for facilities management.

 

Decision of Executive Councillor for Community Safety, Homelessness and Wellbeing

Agreed:

      i.          To retain a core physical activity and leisure service within the City Council.

     ii.          The future of leisure services should be focussed on where investment and resources will have most impact on reducing health inequalities and increasing levels of physical activity.

   iii.          Development and adoption of a strategic Vision for future provision of physical activity facilities and services across the city.

 

Facilities

   iv.          Authorise Officers to go to the marketplace and procure an outsourced leisure management model for a term of up to 15 years to 31^st March 2041, embedding in strategic breaks.

    v.          Retain an “Agency Model” within the new contract to realise benefits of changes to reclamation of irrecoverable VAT on leisure services.

   vi.          Reduce the financial impact of the leisure portfolio on the Councils finances to:

a.    Lower the management costs towards a break even position.

b.    Seek to increase income from the leisure management contract.

c.    Seek partnership opportunities for investment in facilities.

d.    Explore opportunities for community asset transfers.

 vii.          Ensure any new Contractor will adopt a Real Living Wage renumeration within the local workforce.

viii.          Adopt Community Wealth Building opportunities within the Contract.

   ix.          Allow Officers to engage and negotiate an extension of the scope of the new outsourced contract to include:

a.    Educational establishments sports and leisure facilities within the City Council boundaries.

b.    Sports and Leisure Facilities within South and East Cambridgeshire District Councils boundaries, including any District Council, Parish Council and Educational Establishment Facilities.

c.    Any third party operators or clubs facilities in either Local Authority boundaries.

    x.          Develop an investment plan reflecting the findings of the Built Facility Strategy. Priority investments for:

a.    Decarbonisation of the portfolio to reach the Council’s Net Zero aspirations by 2030.

b.    Improvements to Jesus Green Lido.

c.    Improvements and expansions of fitness suites and studio provision.

   xi.          Include Health outcomes aligned with Public Health and NHS Commissioning Boards within the specification with clear KPIs and outcomes to be delivered.

 xii.          Allow the procured Contractor to be able to deliver some elements of social prescribing.

xiii.          Work with developers in relation to strategic sites identified in the emerging Local Plan to 2041 for: 

a.    Allocation of offsite funds to new pool locations and existing pool and indoor and outdoor sports improvements.

KPIs

xiv.          Develop a suite of relevant leisure KPIs that reflect and align to corporate priorities which enable the impact of service outcomes to be evaluated and develop a regular reporting process to update and be reviewed by Members.

 

Partnerships

xv.          Review all grant aid support including National Non Domestic Rate Relief (NNDR); focussing on where it will have most impact on reducing inequalities and decreasing inactivity and improving healthy lifestyles.

xvi.          Work with Public Health and NHS Commissioning Boards to determine areas of investment and collaborative partnerships to deliver Health outcomes aligned to both organisations objectives and with clear KPIs to be delivered.

xvii.          Consider options for asset transfer and report back to Scrutiny committee should there be any changes or requests to transfer assets.

xviii.          Develop the relationship with Friends of Jesus Green Lido for capital investment and fund raising opportunities through their charitable status.

Devolution

xix.          To consider and build in flexibility within the contract term to adjust to any impacts on the Leisure Management Contract that may develop across the District as a result of devolution.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

See Officer’s report.

 

Scrutiny Considerations

The Committee received a report from the Community, Sport & Recreation Manager.

 

The Community, Sport & Recreation Manager said the following in response to Members’ questions:

      i.          The future expansion of the city’s population size was factored into the new leisure contract considerations. Contract provision matched expected city size in the future along with the new growth areas and the additional leisure facilities these would provide.

     ii.          Various sustainability features were in place such as decarbonising swimming pools and replacing boilers with air source heat pumps. The intention was to get to net zero by 2030 and details were to be set out in the contract specification for investments needed and collaborative working on the proposed district heating network.

   iii.          Strategic Break clauses were in place if contactors did not meet their obligations.

   iv.          Contractors were responsible for training their staff to keep up to date on current regulations and legislation.

 

Councillor Ashton sought clarification if current outsourced leisure facilities would be brought in-house? The Executive Councillor said in-sourcing was considered as part of the options appraisal but the City Council did not have the skills to do this currently, and there would be a significant additional ongoing costs to the City Council if this were to be brought back in-house.

 

The Committee unanimously resolved to endorse the recommendations.

 

The Executive Councillor approved the recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

No conflicts of interest were declared by the Executive Councillor.