Agenda Item No
The Vale of Glamorgan Council
Cabinet Meeting: 20 October, 2014
Report of the Cabinet Member for Leisure, Parks, Culture and Sport Development
Purpose of the Report
1. The purpose of this report is to seek approval to permit a subcontract to the Leisure Management Contract (the Contract) to a new Trust Operator, Legacy Leisure Limited.
1. That the Director of Development Services, in consultation with the Managing Director and the Head of Legal Services, be authorised to enter into negotiations with both Parkwood Leisure and Legacy Leisure to authorise a sub-contract of the existing contract to Legacy Leisure.
2. That subject to successful negotiations the Leisure Management Contract be sub-contracted to Legacy Leisure, and consent to the grant of sub leases to Legacy Leisure Limited be granted, in relation to each Leisure Centre and the Head of Legal Services be authorised to negotiate, agree and execute the requisite legal documentation.
Reasons for the Recommendations
1. To investigate the potential for further cost savings to the Council, without affecting the current quality of the service provided.
2. To provide further cost savings to the Council.
2. Parkwood Leisure Limited were awarded a contract to operate the Vale of Glamorgan's leisure centres for a period of ten years', with a potential five-year extension, following an extensive procurement process. The contract commenced on 1st August, 2012.
3. The other private sector bidders for this contract submitted their tenders using a Leisure Trust model. Parkwood Leisure did not use this model at the time but have since developed a similar Trust model using a new organisation, Legacy Leisure.
Relevant Issues and Options
4. Parkwood Leisure have approached the Council recently to discuss the possibility of switching the sub-contractor for the Vale of Glamorgan Leisure Contract from Parkwood Community Leisure to Legacy Leisure. This approach has been successfully completed at Southend-on-Sea Borough Council. Leisure Trusts also operate facilities at a number of other Welsh councils including Neath-Port Talbot, Bridgend, Swansea and Torfaen, although all of these Leisure Trust models are individual to the specific contracts.
5. Legacy Leisure, if appointed as the sub-contractor would still provide the services via Parkwood Leisure. The same brands that currently operate in the leisure centres would continue such as sway dance, Vita cafes and Expressions Fitness. Staff would be required to transfer (under TUPE arrangements) to Legacy Leisure and some Parkwood branding would disappear, notably on the main signs outside the buildings.
Resource Implications (Financial and Employment)
6. The financial employment implications of this report are contained in a part II report.
Sustainability and Climate Change Implications
7. There are none associated with this report.
Legal Implications (to Include Human Rights Implications)
8. There is a requirement under the terms of the Contract with Parkwood Leisure Limited that any sub-contract be the subject of a request for consent by the Council. The Council will also need to consent to the granting of subleases to Legacy Leisure of the Leisure Centres. Grant of consent to the subcontract will require to be set out in a deed of variation, and it will also be necessary for formal consents to sub-lease to be drafted.
Crime and Disorder Implications
9. Quality leisure opportunities are now proven to have a positive effect on crime and disorder.
Equal Opportunities Implications (to include Welsh Language issues)
10. There are no new equal opportunity implications arising from the potential transfer of the contract to Legacy Leisure.
11. The original objective of transferring the operation of the Council's leisure centres to an external organisation was to reduce costs whilst improving quality. This would remain unaffected by the potential transfer to Legacy Leisure.
Policy Framework and Budget
12. This is a matter for executive decision.
Consultation (including Ward Member Consultation)
13. The issues arising in this report are Vale-wide and not Ward specific and, therefore, no Ward Member consultation has taken place.
Relevant Scrutiny Committee
14. Economy and Environment.
David Knevett, Operational Manager - Leisure and Tourism.
Head of Finance
Head of Legal Services
Operational Manager, Human Resources
Operational Manager, Property
Rob Thomas - Director of Development Services