Agenda Item No. 7
The Vale of Glamorgan Council
Scrutiny Committee (Economy and Environment): 4th November 2014
Report of the Director of Development Services
Leisure Contract Monitoring
Purpose of the Report
1. The purpose of this report is to advise the Committee of new monitoring arrangements for Year 3 of the Leisure Management Contract.
1. That Committee notes the proposals for future monitoring of the Leisure Management Contract
2. That a training session be arranged for all Councillors as recommended by the Monitoring Plan attached to this report at Appendix A.
Reasons for the Recommendations
1. To ensure that the performance of the contractor is being adequately monitored.
2. To provide an opportunity to all Councillors to be better informed to scrutinise the performance of the contractor.
2. The Leisure Management Contract is one of the most significant partnership arrangements the Council has in place for the delivery of services by an external organisation. Significant work was carried out to ensure that the comprehensive procurement process led to the appointment of a competent and cost-effective contractor, Parkwood Leisure Limited.
3. The Council's Annual Governance Statement published in September 2013 highlighted, amongst other issues, concerns regarding the adequacy and effectiveness of the financial and quality monitoring arrangements surrounding partnership arrangements within the Leisure Management Contract.
4. The Council's external auditors, Grant Thornton, were subsequently requested to produce a report on contract monitoring within the Vale of Glamorgan Council, which included the Leisure Management Contract. This report was published in June 2014 and presented to the Council's Audit Committee on 7th July 2014 (Audit Committee Minute 166).
5. A further report was presented to the Council's Audit Committee on 22nd September 2014 by the Director of Development Services to update on proposals to address the concerns raised. Part of that report included a plan setting out an approach to be followed when monitoring the contract. This plan sets out a series of actions that are required to effectively monitor the Leisure Contract and has been informed by the various preceding auditing reports. It also sets out the frequency of reporting to Scrutiny Committee.
Relevant Issues and Options
6. Attached at Appendix A is the proposed "Parkwood Leisure Contract Monitoring Plan" presented at the Audit Committee on 22nd September 2014 which was subsequently agreed by the Audit Committee.
7. In terms of progress against the monitoring plan, Members are advised that the monitoring group proposed in the plan has now been established and that plans are being made for a presentation on monitoring arrangements which all Members will have the opportunity to attend. A presentation specifically for members of this Committee will form part of the discussions on this report at the Committee meeting.
8. A comprehensive checklist of all clauses included in the contract that requires monitoring as well as the Key Performance Indicators (KPIs) against which the contract will be judged. This checklist will be used as a basis for ongoing discussions with the contractor in relation to the monitoring of the contract. That checklist includes reference to a variety of schedules and clauses including quality assurance measures, financial and property clauses and employment-related clauses.
Resource Implications (Financial and Employment)
9. The monitoring arrangements detailed in the monitoring plan require no additional resources, except for an increase in officer time.
Sustainability and Climate Change Implications
10. There are no sustainability or climate change implications associated with this report.
Legal Implications (to Include Human Rights Implications)
11. There are no legal implications associated with this report at present.
Crime and Disorder Implications
12. Meaningful sports and leisure opportunities are now proven to have a positive effect on crime and disorder issues.
Equal Opportunities Implications (to include Welsh Language issues)
13. Members will note that ensuring that the Leisure Centres' contractor complies with the Council's Equal Opportunities Policy is an area that is presently monitored and will continue to be so in the future.
14. The provision of services discussed in this report is integral to the Council's health and wellbeing objectives. It is, therefore, essential that the Leisure Management Contract is monitored adequately to ensure that the Council's objectives are being achieved.
Policy Framework and Budget
15. This report is a matter for Executive decision by Cabinet.
Consultation (including Ward Member Consultation)
16. No Members have been consulted on the content of this report as the issues are Vale-wide rather than Ward specific.
Relevant Scrutiny Committee
17. Economy and Environment.
Wales Audit Office: Contract Monitoring Report: June 2014.
David Knevett, Operational Manager, Leisure and Tourism. Tel. 01446 704817
Head of Finance
Operational Manager, Finance
Operational Manager, Legal Services
Operational manager, Property
Operational Manager, Audit
Rob Thomas, Director of Development Services