Issue - decisions

Matter for Decision

The Council’s third leisure management contract expires at the end of September 2013. A procurement process has taken place to source management arrangements for a fourth contract to start on 30th September 2013 for a period of at least 7 years, with the option of a three year extension period. The report highlighted the procurement process and the resulting recommendation for award of the contract. The evaluation process considered both price and quality and concluded that the contractor with the highest total score was Greenwich Leisure Limited.

 

Decision of Executive Councillor for Community Wellbeing

 

The Executive Councillor resolved to:

 

(i)   In accordance with the Council’s Contract Procedure Rules, award the Leisure Management contract to Greenwich Leisure Limited for a seven year period from 30th September 2013, with the option of a three year extension.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

 

Public Speakers

 

Local residents raised the following points regarding the report:

 

(i)   Supported the change of management.

(ii)   Questioned why the Health Suite at Parkside Pools was being changed to a Fitness Centre, when similar facilities were available at Kelsey Kerridge Sports Centre.

(iii)                  Asked if any changes would be made to the opening hours or entrance fee at Parkside Pools.

 

The Executive Councillor for Community Wellbeing confirmed that the facilities at Parkside Pools and Kelsey Kerridge Sports Centre would complement one another and would not seek to be in direct competition. It was also noted that usage of the Health Suite had decreased recently and all bidders had proposed a change of use.

 

The Head of Arts and Recreation confirmed that entrance fees were scrutinised every year by this Committee and the Council sets a maximum price for swimming in the City. It was also noted that a better solution to the current ‘Leisure Card’ system would be looked at in consultation with users.

 

The Committee received a report from the Head of Arts and Recreation.

 

Members of the Committee made the following comments in response to the report:

 

(i)             Commended officers for their work on this issue.

(ii)            Supported the officer’s recommendation to award the contract to Greenwich Leisure Limited.

(iii)          Supported the bespoke apprenticeship scheme and the capital investment proposed.

(iv)         Expressed concern that the Living Wage had not been made a condition of the contract.

 

In response to Members’ questions the Head of Arts and Recreation and the Recreation Services Manager replied:

 

(i)             Officers undertook a Pre-Qualification Questionnaire (PQQ) process to select 6 appropriately qualified contractors. 3 contractors had subsequently dropped out. As part of the process in 2003, 4 contractors had been selected and 1 had subsequently dropped out.

(ii)            With regard to the Living Wage, and following legal advice, the Invitation to Tender (ITT):

-        Identified strong support for the payment of Living Wage in the contract;

-        Highlight the benefits that the Council believes this will provide;

-        Include evaluation criteria that measure the performance of bidders in areas where the Council believes the benefits of paying the Living Wage will be demonstrated.

-        Amend the previous decision relating to the capped annual fee for the contract and raise this by £25,000 to £675,000 per annum

(iii)          The bespoke apprenticeship scheme would involve a 16-20 week qualification programme followed by employment opportunities. Greenwich Leisure Limited had their own Academies and Colleges of Further Education and worked closely with job centres.

(iv)         Whilst a 16-20 week qualification programme was not as intensive as some service industry apprenticeships (such as plumbers and gas fitters), it was a very good scheme for the leisure industry.

(v)           As is common practice in the leisure industry, the Council did not place restrictions on the sub-contracting out of services such as cleaning and pool maintenance.

(vi)         Quarterly performance management reports would be sent to Councillors and regular meetings held with the contractor.

 

Exclusion of the Press and Public

 

In order to discuss Appendix A of the officer’s report, the Committee resolved to exclude members of the public from the meeting on the grounds that, if they were present, there would be disclosure to them of information defined as exempt from publication by virtue of paragraphs 3 and 5 of Part 1 of Schedule 12A of the Local Government Act 1972.

 

The Committee resolved (by 4 votes to 0) to endorse the recommendations.

 

The Executive Councillor approved the recommendation.

 

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

No conflicts of interest were declared by the Executive Councillor.