Decision details

Leisure Partnering Agreement

Decision status: For Determination

Is Key decision?: Yes

Is subject to call in?: Yes

Decisions:

Summary

 

The Economy, Culture and Leisure Portfolio Holder presented a report seeking consideration of amendments to the Leisure Partnering Agreement in response to the Coronavirus emergency.

 

The Legal, Governance and Democracy Lead Specialist (Monitoring Officer) drew attention and explained the need for an amendment to the recommendation at 2.1 (3) of the report, to read as follows:-

 

“2.1 3) subject to approval of the recommendations 2.1 (2) and 2.1 (4) contained in the public part of this report…” (the public part of the report being Agenda Item No.11 Finance Update – Impact of COVID-19).

 

The Economy, Culture and Leisure Portfolio Holder, the Chief Executive and the Operational Lead Commercial and Delivery Services responded to questions raised by Members.

 

Members expressed strong support for the proposals.

 

A vote was taken on the proposals during which all Cabinet Members confirmed that they had, without interruption, heard the full presentation and discussion on the item.

 

Decision

 

RESOLVED - That

 

(1)        the management fee payment of Quarters 1 and 2 to Greenwich Leisure Limited (Quarter 2 in advance) be approved, subject to the conditions outlined within the report;

 

(2)        the Director Customer and Commercial Services be delegated authority, in consultation with the Portfolio Holder, the Operational Lead for Delivery and Commercial Services, the Legal, Governance and Democracy Lead Specialist and the Finance Lead Specialist:-

 

(a)        to work with Council’s Leisure Partner with an open book approach, ensuring full transparency on the costs and savings to establish the financial impact on the service and its continued future; and

 

(b)       subject to the conditions outlined within the report, to authorise future payments of the 2020/21 management fee to best ensure the re-establishment of service delivery;

 

(3)        subject to approval of the Recommendations 2.1 (2) and 2.1 (4) contained in the next item on the Agenda (Finance Update – Impact of COVID-19), and subject to the conditions outlined within this exempt report, the Director Customer and Commercial Services be delegated authority, in consultation with the Portfolio Holder, the Operational Lead for Delivery and Commercial Services, the Legal, Governance and Democracy Lead Specialist and the Finance Lead Specialist, to agree additional payment to the contract above the management fee on an open book basis which is within the revised budget for Leisure Services for 2020/21 up to a value of £120,000, to include any associated contractual amendments or variations; and

 

(4)        updates on the Leisure Partnership arrangements be provided through the financial update reports.

 

Reasons for Decision

 

To assist in the delivery of the Council Plan – delivering a balanced community and reducing health inequality in the District.

 

Alternative Options Considered and Rejected

 

Not to continue to make contract payments to Greenwich Leisure Limited, this is not recommended as this will inevitably lead to failure of the service and the contract to be terminated.  This will have a greater impact on the Council’s financial resource and capability to continue providing a leisure service for the District.

 

To continue with contract payments in line with contract requirements.  This is not recommended as this will likely lead to cash flow issues for the leisure provider.  This will have a greater impact on the Council’s financial resource and capability to continue providing a leisure service for the District.

Publication date: 22/05/2020

Date of decision: 20/05/2020

Decided at meeting: 20/05/2020 - Cabinet

Effective from: 02/06/2020

Current call-in Count: 0

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