Agenda item

To consider the recommendations of the Community and Leisure Overview and Scrutiny Panel, following evaluation of options by a task and finish group, that a formal procurement process be undertaken to engage a partner for the future operation of the Council’s five health and leisure centres.

RESOLVED:

That a formal tendering process be undertaken to identify a preferred partner for the future operation of the Council’s five health and leisure centres.

The Cabinet considered the recommendations of the Community and Leisure Overview and Scrutiny Panel with respect to the future management and delivery of the Council’s health and leisure provision.  The Panel had appointed a Task and Finish Group which had undertaken extensive research on the various options that were available in order to formulate their findings and recommendations.

The strategic objectives and key drivers to the process were set out in Section 2 of Report item 10 to the Cabinet.  It was emphasised that the retention and improvement of social and community benefits, such as improved physical and mental wellbeing for local people, had been an essential part of the evaluation process.  It was however also important to achieve additional savings.  The current operational review would achieve savings of £600,000 by 2020/21, and the review of future delivery models would need to achieve at least an additional £400,000 by that time.

The Task and Finish Group’s findings in respect of the potential delivery options were set out in Section 4 of the report.  The Panel had concurred with their conclusion that maintaining the status quo was not a viable option and would lead to the loss of the existing level of service as health and leisure remained exposed to the continuing financial constraints upon the Council and consequent restrictions on future business planning and investment.  Of the other options available, entering into a partnership arrangement with one of the established third party private providers already operating in this area would offer the greatest benefits and safeguards for the service and should open opportunities for greater investment and business development.  The Council’s aspirations for social and community benefits could be secured through a detailed specification and contract for the arrangement.  The establishment of an “arms-length” Council owned company would also bring a number of benefits, although it was likely there would be less access to additional investment or the expertise in this field already developed by the private partners.  A market engagement exercise had established that there was potential interest from third party private providers in entering into a partnership arrangement with this Council and that such an arrangement had the potential to achieve all the Council’s objectives.

The Cabinet was advised of the comments submitted by Unison on behalf of the Employee Side. They raised objections to the proposal to seek a partnership arrangement and considered that this represented privatisation that would prejudice the future services for local residents and the conditions of service of the employees in the health and leisure centres.  They also raised concerns about some procedural aspects.

The Cabinet concurred with the conclusions of the Community and Leisure Overview and Scrutiny Panel that a partnership arrangement, based upon a carefully developed specification and contract, had the potential to offer the most benefits for the future.  The only way to establish whether the Council’s own specific requirements could be met by such an arrangement would be to initiate a procurement exercise to establish exactly what could be achieved, which could only be properly established through the negotiations that formed part of the procurement exercise.  This process would also provide the essential preparatory work for the establishment of an arms-length council owned company should the partnership proposal not, in the event, meet the Council’s requirements.

The Cabinet was advised of the next stages that would be necessary in the process, which included the preparation of a contract specification that met this Council’s objectives.  It was also proposed that a staff representative from each of the health and leisure centres and trade union representatives would be involved in the procurement process.

RESOLVED:

That a formal tendering process be undertaken to identify a preferred partner for the future operation of the Council’s five health and leisure centres.