Decision details

To confirm the award of the new Leisure Management Contract, to start on 1 April 2017.

The Portfolio Holder for Leisure & Community Services presented a report on the award of the contract for the management of the Council’s Leisure Facilities.

The Portfolio Holder reminded the Cabinet that, in December 2014, the Council had adopted a new Leisure and Cultural Strategy, which identified future need and the role that the District Council should play in the provision of opportunities for people to lead healthier lives, contribute to community wellbeing and provide social cohesion. The most significant direct investment in Leisure by the District Council, was the four Sports/Leisure Centres managed under contract on the Council’s behalf, by Sports and Leisure Management Ltd (SLM).  As the 10 year contract with SLM was due to expire in January 2016 (subsequently extended to April 2017), the Council had been engaged in a competitive procurement exercise to appoint a new external management partner, in order to deliver the Council’s Key Objectives, with respect to the management of its Leisure Facilities.

The Portfolio Holder detailed the procurement process followed, including the establishment of a Portfolio Holder Advisory Group and the use of Competitive Dialogue as a methodology. The Council had appointed an external consultant to assist with the procurement process, which consisted of three distinct phases. On considering the results of the final evaluation, the Advisory Group was recommending to the Cabinet that Places for People Leisure (Bidder B) be awarded preferred bidder status and that SLM Everyone Active (Bidder C) be designated reserve bidder. The Cabinet was requested to recommend accordingly to the Council to make the Final Award decision at its meeting scheduled for 20 December 2016.

The Portfolio Holder stated that the Council had previously decided to replace Waltham Abbey Swimming Pool, which despite being a popular community facility, had reached the end of its economic life. A project team involving representatives from the District Council, Essex County Council and NHS England had been developing a proposal for a new Community Hub, comprising of a new Leisure Centre, Health Centre and Independent Living Scheme for the Elderly at Hillhouse. The Leisure Management Contractors have been tasked with the Design, Build, Operation and Management of the new facilities, and all three bidders had produced exciting designs for the new Leisure Centre. Outline Planning Permission for the whole Community Hub (to include the Leisure Centre) was granted on 30 November 2016. As part of the consultation on the Hillhouse planning application, Sports England had required a Section 106 Legal Agreement to be entered into to provide compensatory facilities for the loss of some of the open space;  the Council’s share of this cost was £137,000 which would be found from within the Capital Programme.

The Portfolio Holder reported that the bidders were also asked to submit a variant bid which identified the cost to the Council of free Parking for one hour at Loughton Leisure Centre. This had resulted from the concerns raised by users as parking was free at all of the Council’s other leisure facilities. The cost proposals of the preferred Bidder was £90,000 per annum, which the Advisory Group felt was not justifiable at the current time. However, discussions could still be undertaken with the preferred bidder following thier appointment, to see if some concessions could be granted at no cost to the Council.

The Cabinet welcomed this report as the new contract would be beneficial to residents, especially those in Waltham Abbey, and justified the use of competitive dialogue as the procurement methodology. The Portfolio Holder confirmed that the existing swimming pool in Waltham Abbey would remain open until the new facility was constructed. The Director of Neighbourhoods reassured the Cabinet that he expected co-operation from both parties during the transition period as this was a familiar occurrence in the Leisure market, and that the TUPE regulations would apply to all staff transferring from SLM Limited to Places for People Leisure Management Limited. It was also highlighted that there was a requirement to have at least one of the Centres open on each bank holiday; but more could be open.

The Portfolio Holder reiterated that the provision of free parking at Loughton Leisure Centre was considered but the cost to the Council would be £90,000 per annum and the Advisory Group had rejected this option. However, this issue would be referred again to the new provider but any provision of free parking had to be at no cost to the Council. The Leader of Council concluded that the new contract would be beneficial for both the Council and residents, and that there had been a vast improvement in the management of the Leisure Centres over the past decade since the Council first outsourced their management.

Decision:

(1)        That the recommendation of the Portfolio Holder Advisory Group to award Places for People Leisure Management Ltd preferred bidder status, and Sports and Leisure Management Ltd (SLM Every One Active) to be designated reserve bidder, be agreed;

(2)        That, on the basis of the Final Evaluation of the Tender Submissions and Financial Implications for the Council, the Award of the Contract for the management of the Council’s Leisure Facilities to Places for People Leisure Management Limited be recommended to the Council for approval;

(3)        That, following the granting of outline Planning Permission for the new Waltham Abbey Leisure Centre at Hillhouse, the funding of the Section 106 Legal Agreement contribution of £137,000 to re-provide off-site compensatory playing pitch provision from within the Council’s Capital Programme be agreed; and           

(4)        That the option to provide users with one hours free car parking at Loughton Leisure Centre at a cost of £90,000 per annum be rejected, but further discussions be entered into with the preferred Bidder to ascertain if any future parking concessions were possible at no cost to the Council.

Reasons for Decision:

The Council’s contract with the current Leisure Management Partner SLM, was due to terminate on 31 March 2017. In order to ensure the continuation of a safe and effective service and to deliver significant investment in new and enhanced facilities, a new contractor offering the best combination of price and quality, needed to be appointed.

Other Options Considered and Rejected:

To reject the three external bids received; this would require either the procurement process to be re-run or the management of the Leisure Centres to be brought back in-house, under direct management by the Council.