Issue - meetings

RESOLVED:

That Cabinet:

1.    Accept the tender from Greenwich Leisure Limited and, subject to the delegation in recommendation 6, enter into the Management Agreement and all related and ancillary documents, for the provision of Leisure Centre Management to the London Borough of Hillingdon from the period 23rd February 2020 to 1st March 2030 (with permitted contract extensions up to a maximum of a further 5 years as referred to in recommendation 4 below) and at the management fee value set out in the report.

2.    Agree that this includes the operating sites of Hillingdon Sports and Leisure Complex, Botwell Green Sports and Leisure Centre, Highgrove Pool and Queensmead Sports Centre.

3.    Authorise the grant of a 10 year lease for the same period of time of the contract (including any agreed extension periods), in respect of the properties detailed in recommendation 2 above (excluding Queensmead Sports Centre), and upon terms finalised by the Head of Property and Estates under delegated authority, in consultation with the Leader of the Council and Cabinet Member for Finance, Property and Business Services.

4.    Furthermore, agree that this includes the provision to extend the contract and lease with Greenwich Leisure Limited for a further period or periods of up to five years, and delegates approval for any extensions to the Leader of the Council and Cabinet Members for Finance, Property and Business Services and Central Services, Culture and Heritage, in consultation with the Deputy Chief Executive and Corporate Director of Residents Services and subject to satisfactory performance and commercial terms.

5.    Agree that, subject to the agreement of a suitable proposal and management fee between the Council and Greenwich Leisure Limited, the option to vary the contract and lease to include the planned new leisure centre in West Drayton. That on the Council’s side, that such a decision be agreed by the Leader of the Council and Cabinet Members for Finance, Property & Business Services and Central Services, Culture & Heritage, in consultation with the Deputy Chief Executive and Corporate Director of Residents Services.

6.    Delegates authority to the Deputy Chief Executive and Corporate Director of Residents Services and the Corporate Director of Finance authority to finalise the management agreement and all associated and ancillary documents (including the Agency Agreement referred to in recommendation 8) required to be entered into to give effect to the proposed arrangements, whilst noting the continued engagement of a specialist advisors.

7.    Agree in principle the application of capital investment of £2.25m for the projects detailed in the capital investment proposal appendix, Table 1, noting that capital projects remain subject to the Council’s established capital release process.

8.    Delegates authority to the Deputy Chief Executive and Corporate Director of Residents Services and the Corporate Director of Finance authority to finalise the Agency Agreement and all related warranties and construction documents to give effect to Greenwich Leisure Limited’s capital works proposals.

9.    Delegates any further necessary decisions required on the implementation of the new leisure management contract and transitional arrangements to the Deputy Chief Executive and Corporate Director of Residents Services, in consultation with the Leader of the Council and Cabinet Members for Finance, Property & Business Services and Central Services, Culture & Heritage.

Reasons for decision

Cabinet received a comprehensive report, detailing the outcome of the tendering exercise for the management of all the Council’s Sports & Leisure facilities across the Borough. Cabinet reviewed the tender evaluation process undertaken, the financial implications, the outcome and the recommended bid put forward by officers. After due consideration of all the information, Cabinet agreed to accept the tender from Greenwich Leisure Limited for an initial ten year period, with the option for a further five years.

Cabinet agreed to delegate the later decisions required for the efficient operational implementation of the new contractual and lease arrangements with Greenwich Leisure Ltd. Cabinet welcomed the proposed new capital investment in all the Borough’s leisure centres, along with the ability for contractual arrangements to later incorporate the planned new state-of-the-art facility in West Drayton.

Cabinet noted that the provider would support the sport and health priorities of the Council and continue the provision of core community services, such as free swimming for older residents, disability groups and medical referrals.

Cabinet welcomed the Council’s continuing investment in sport and leisure.

Alternative options considered and rejected

Cabinet could have decided to bring all such services in-house, but considered this not a viable option economically in the current climate. Having multiple operators for the Leisure sites was discounted by Cabinet in order for the Council to achieve economies of scale and generate a better financial return whilst delivering a consistency of service to residents across all sites.

Officers to action:

Paul Richards & Nicky McDermott - Residents Services

Classification: Private

Whilst the Cabinet's decisions above are always made public, the officer report relating to this matter is not because it was considered in the private part of the meeting and contained information relating to the financial or business affairs of any particular person (including the Authority holding that information) and the public interest in withholding the information outweighed the public interest in disclosing it (exempt information under paragraph 3 of Part 1 of Schedule 12A to the Local Government (Access to Information) Act 1985 as amended.