Issue - meetings

Future Management of Leisure Centres -To finalise any compensation payable with respect to loss of income in relation to the closure of the Leisure Centres

Meeting: 27/01/2021 - Council (Item 87)

Future management of Leisure Centres

Report of the Director of Communities attached.

Minutes:

Councillors Mick Higgins and Jim Marsh left the meeting prior to this item and did not take part in the vote.

 

Council considered a confidential report of the Director of Communities which presented members with several options for the future management of leisure centres in South Ribble.

 

Although acknowledged as an important decision, contrasting opinions on the proposals were expressed by many members. The Leader of the Opposition, Councillor Margaret Smith proposed an amended motion, seconded by Councillor Damian Bretherton, which would deviate from the recommendations and allow a further period of 12 months to fully assess the proposals.

 

A vote was taken on the amendment and was recorded as follows:

 

FOR:Councillors Bretherton, Campbell, Chisholm, Clark, Coulton, Mary Green, Michael Green, Hesketh, Hughes, Moon, Mort, Mullineaux, Ogilvie, Rainsbury, Margaret Smith, Phil Smith, Suthers, Thurlbourn, Walton, Watson, Wharton-Hardman, and Yates;

 

AGAINST:Councillors Adams, Alty, Bell, Bylinski Gelder, Donoghue, Evans, Flannery, Forrest, Foster, Hancock, Howarth, Jones, Lomax, Martin, Melia, Sharples, Shaw, Titherington, Caleb Tomlinson, Matthew Tomlinson, Trafford, Turner, Watkinson, and Wooldridge.

 

The Deputy Mayor declared that the amended motion was lost (For: 22 Against: 24).

 

A vote on the substantive motion, proposed by the Leader Councillor Paul Foster and seconded by Deputy Leader Councillor Mick Titherington, was then taken and recorded as follows:

 

FOR:Councillors Adams, Alty, Bell, Bylinski Gelder, Donoghue, Evans, Flannery, Forrest, Foster, Hancock, Howarth, Jones, Lomax, Martin, Melia, Sharples, Shaw, Titherington, Caleb Tomlinson, Matthew Tomlinson, Trafford, Turner, Watkinson, and Wooldridge;

 

AGAINST:Councillors Bretherton, Campbell, Chisholm, Clark, Coulton, Mary Green, Michael Green, Hesketh, Hughes, Moon, Mort, Mullineaux, Ogilvie, Rainsbury, Margaret Smith, Phil Smith, Suthers, Thurlbourn, Walton, Watson, Wharton-Hardman, and Yates.

 

The Deputy Mayor declared that the substantive motion was carried and it was subsequently

 

RESOLVED: (For: 24 Against: 22)

 

That the confidential recommendations contained within the report be approved.


Meeting: 20/01/2021 - Cabinet (Item 182)

182 Future management of Leisure Centres

Report of the Director of Communities attached.

Decision:

Resolved (unanimously):-

 

1.That Cabinet recommends to Full Council that the future management of the Council’s Leisure Centres be taken back to an in-house management arrangement. This will mean the Council decides not to extend its current leisure management contract with Serco Leisure Operating Ltd at the end of March 2021.

 

2. Subject to approval by Full Council on the above recommendation, officers will bring a further report to Cabinet as to how the proposed new in-house management arrangement will operate. This will balance the requirement for the council to maintain influence over the borough’s leisure services whilst ensuring the most financially efficient approach is undertaken.

 

3.     That Cabinet requests that officers continue working with SERCO to finalise any compensation payable to Serco Leisure Operating Ltd with respect to loss of income in relation to the closure of the Leisure Centres and delegates that decision to the Cabinet Member for Health, Wellbeing and Leisure in consultation with the Section 151 Officer of the Council.

Minutes:

The Cabinet Member for Health, Wellbeing and Leisure presented a report

of the Director of Communities bringing forward options on the future

management of leisure centres in South Ribble.

 

Decision made (unanimously):-

 

1.That Cabinet recommends to Full Council that the future management of the Council’s Leisure Centres be taken back to an in-house management arrangement. This will mean the Council decides not to extend its current leisure management contract with Serco Leisure Operating Ltd at the end of March 2021.

 

2. Subject to approval by Full Council on the above recommendation, officers will bring a further report to Cabinet as to how the proposed new in-house management arrangement will operate. This will balance the requirement for the council to maintain influence over the borough’s leisure services whilst ensuring the most financially efficient approach is undertaken.

 

3.     That Cabinet requests that officers continue working with SERCO to finalise any compensation payable to Serco Leisure Operating Ltd with respect to loss of income in relation to the closure of the Leisure Centres and delegates that decision to the Cabinet Member for Health, Wellbeing and Leisure in consultation with the Section 151 Officer of the Council.

 

Reasons for decision

 

As per the report from the LGA in July 2020, culture and leisure has been among the parts of the economy worst hit by Covid-19. This has meant that councils throughout the country are having to review the current operating models for providing leisure services to residents.

 

As well as the effects of Covid-19, the current contract with Serco Leisure Operating Ltd is due to expire at the end of March 2021 and as such the council is required to review the approach to delivering leisure services.

 

Considerable work has been undertaken on looking at a variety of future options for the management of the council’s leisure centres. This has included setting up alternative in-house delivery models or extending the existing contract with Serco Leisure Operating Ltd (SLOL) and then going through a tender exercise to outsource the management of leisure centres to a third party. The decision is a result of the work undertaken taking on board the current and future impact of the COVID crisis.

 

Alternative options considered and rejected

 

An initial options appraisal procured in March 2020 was considered by officers. The following options were considered:

 

·         extending the existing contract with Serco Leisure Operating Ltd;

·        retendering the leisure contract to the open market; or,

·        to set up a delivery model whereby the council’s leisure services would be delivered internally.

 

The options balanced the requirements for the council to ensure value for money and suitable potential transfer of risk whilst ensuring the council maintained sufficient control over the leisure services provided to its residents.