Purpose

To consider proposals to extend the leisure
management contract beyond 2025.

Decision

To authorise a Deed of Variation to extend the
term of the Leisure contract with the Basingstoke and Deane
Community Leisure Trust (the Trust) and its agent Serco Leisure Ltd
(Serco) for a period up to 31 December 2027 with a 6 month notice
period.
 
And to authorise leases between the Council
and Trust relating to the Leisure contract sites to cover the
current and prospective periods of tenancy between 31 December 2022
– 31 December 2027 with a 6 month notice period, in order to
coincide with the terms of the Deed of Variation.

Reasons for the decision

The February 2024, report to Cabinet
containing the Outline Business Case for the replacement of the
Aquadrome concluded that the opportunities presented by the
proposed redevelopment of the Leisure Park, including the prospect
of a replacement leisure centre for the Aquadrome, had created
uncertainties around the Facilities which were to be included in a
new, long term management contract. Authority was therefore given
to negotiate an extension to the existing Leisure contract to
ensure continuity of the service provided by the Facilities whilst
a tender for a DBOM contract for a new leisure centre is
undertaken.

Alternative options considered

Not to extend the Leisure Contract beyond 2025
or the Council to bring the facilities in house.  Both of these options would lead to major
disruption to the Facility to the detriment of the public and the
risk profile to the council through additional cost of tender and
possible transfer of TUPE liability for staff on contract (approx.
160), therefore the option of a two-year extension is to be
preferred whilst the council tenders for a DBOM contract for a new
Leisure Centre.