Decision details

RESOLVED:

1)    That Council approve the proposal, as set out in the report, to finalise the negotiated resolution related to the Transition Year deficit, in accordance with the procedure set out in the Council’s contract.

REASONS FOR DECISION:

As set out in the report.

KEY DECISION:

Report to Cabinet and Full Council.

PORTFOLIO:

Partnering and Wellbeing.

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST:

None.

DISCUSSION:

The Portfolio Holder introduced the report on the Freedom Leisure partnership and the negotiated resolution relating to the Transition Year deficit.

Cabinet was mindful of the position that the Council and Freedom Leisure found themselves in regarding the impact that the COVID-10 pandemic, energy costs and cost of living crisis had had on Year 1 of the contract

The Section 151 Officer explained that the deficit incurred in the Transition Year stood at £1,866,650.  Cabinet acknowledged the work that had been undertaken between the Council’s Officers and Freedom Leisure, in accordance with provisions within the contract, to negotiate an increase in the Management Fee from £1.23 million to £1.5 million. This was considered to be a reasonable outcome taking into account the bid parameters of the original tender exercise and it was explained that Freedom Leisure had accepted this proposal.

Cabinet noted that, had the project and the partnership agreement not been undertaken, the Council would have been required to meet the entire deficit. It was heard that, following a question on whether the Council should bring the leisure centres back into Council control, that despite the challenges faced over the last year, the District’s leisure centres remain open and did not close any swimming pools, due to the partnership with Freedom Leisure. Recognition was also given to the improvements that Freedom Leisure have made.

It was noted that the process to outsource the management of the Leisure Centres had been formally scrutinised by Council Panels and that a dedicated Task & Finish Group had both monitored and input into the process.

Executive Management Team, Cabinet Members