Agenda Item No. 4
The Vale of Glamorgan Council
Scrutiny Committee (Economy and Environment): 3 November, 2015
Report of the Director of Environment and Housing Services
Leisure Management Contract
Purpose of the Report
To provide an update on the performance of the Leisure Management Contract for three years.
That Committee notes the performance of Legacy Leisure.
That a year four performance report be presented to this Scrutiny Committee in 2016.
That a sub group of this Committee continues to regularly visit Leisure Centres to learn more about the performance of Legacy Leisure and to provide constructive comments for future reports on the Leisure Management contract.
Reasons for the Recommendations
To note the performance of the contractor in year 3 of the contract.
To enable the Committee to be regularly updated on the performance of the Leisure Management Contract.
To give greater involvement to Members of the Committee in appraising the performance of the contractor.
Economy and Environment Scrutiny Minute 1093 (14th April 2015) resolved:
(1) T H A T future capital bids be made, in respect of investment for the refurbishment of facilities at the Leisure Centres and that robust business cases be put in place, with Local Authority officers and Parkwood representatives preparing the business cases for consideration.
(2) T H A T a group of up to three Members of the Scrutiny Committee undertake reviews of the Leisure Centres with the Cabinet Member for Visible and Leisure Services, on a quarterly basis.
(3) T H A T the performance report for Parkwood Community Leisure be noted.
(4) T H A T a year three performance report by Parkwood Community Leisure (Legacy Leisure) be presented to the Scrutiny Committee later in 2015.
(5) T H A T representatives from Parkwood Leisure be thanked for their attendance and for responding to the questions of the committee in such detail.
Committee will be aware that the Council's Leisure Management Contract was awarded to Parkwood Community Leisure and commenced on 1st August 2012 for a period of ten years with the possibility of a further five year extension. The award of the contract followed an extensive procurement process and set out to significantly reduce the revenue cost to the Council of its Leisure Centres operation.
Following agreement by Cabinet in October 2014 the contract was sub-contracted to Legacy Leisure, an independent leisure trust.
Relevant Issues and Options
Attached at Appendix 'A' is the year 3 annual report form Legacy Leisure. Committee will note that the annual report follows the format of the monitoring checklist discussed previously, which highlights parts of the contract and specification that Legacy Leisure are required to report on. The information concentrates on the key requirements of the contract documentation and is broken down into four areas, Financial (protecting the investment), Property (protecting the asset), Leisure Service (protecting the customer) and Employment (protecting the workforce). The team approach to monitoring has now also been fully established utilising specific officers within the finance, property and human resources departments, in addition to the leisure department.
The annual report highlights a number of successes achieved during the year including a significant increase in Leisure Centre usage of 13.05%, the return of the 5 star food hygiene rating and good levels of customer satisfaction in the annual survey. The various appendices referred to in the report are available for Members if required, and will be available at the Committee Meeting via the Leisure Services Operational Manager.
The three person Member Group, (together with the relevant Cabinet member), has also now been established and recently they visited two sites. A verbal update of this visit will be given at the meeting by those Members who attended.
The contract with Legacy Leisure has built upon the successes and investment in the facilities that occurred during the first two years of operation and the improvements seen in the service would have been unlikely to have taken place had the service been retained in-house.
Representatives from Legacy Leisure will also be present at the Scrutiny Committee meeting to answer any specific questions Members may have.
Resource Implications (Financial and Employment)
Under the terms of the contract, Legacy Leisure is now paying the Council for the delivery of this service. The sum paid to the Council will further increase at the end of year 3.
Sustainability and Climate Change Implications
Many of the improvements carried out as part of the Condition Survey works increased the effectiveness and efficiency of major items of plant within the Leisure Centres. This is intrinsically linked to the Council's sustainability and climate change objectives.
Legal Implications (to Include Human Rights Implications)
A variation allowing Parkwood Leisure to subcontract to Legacy Leisure has now been completed, which has resulted in further savings being realised for the benefit of the Council.
Crime and Disorder Implications
Access to quality sports and leisure opportunities are proven to have a positive effect on crime and disorder issues. The improvements made to facilities and the additional services now offered in the Leisure Centres can only be beneficial in terms of providing additional constructive opportunities for physical activity.
Equal Opportunities Implications (to include Welsh Language issues)
Legacy Leisure has continued to demonstrate its commitment to equal opportunities during year three of the contract.
The provision of services discussed in this report is integral to the Council's health and wellbeing objectives. The Leisure Management Contract also demonstrates the Council's commitment to working in partnership to deliver high quality services to its customers.
Consultation (including Ward Member Consultation)
No Members have been consulted on the content of this report as the issues are Vale-wide rather than Ward specific.
Annual Report received from Legacy Leisure (3 Year)
David Knevett, Operational Manager, Leisure Services. Tel. 01446 704817
Head of Visible Services and Transport
Head of Finance
Operational Manager, Legal Services
Operational Manager, Property
Operational Manager, Human Resources
Miles Punter, Director of Environment and Housing Services