Purpose

To consider and approve future options for the management of
Leisure Services

Content

RESOLVED

 

KEY DECISION

 

That the Executive:

 

a)        
Agreed that the following options
are not
progressed further:

•        
Asset Transfer;

•        
A Local Authority Trading
Company;

•        
A new NNC-owned Charitable Leisure
Trust;

•        
All services to be outsourced
through an external contract.

 

b)    Approved the remaining following options
be further progressed
so as to develop a comprehensive
appraisal to inform a future Executive decision:

•        
All services to be brought
in-house;

•        
A mixed model approach whereby
Active Communities, Leisure Management functions and leisure
capital programmes remain in-house, and all leisure centres and
facilities are outsourced through a single external
contractor;

•        
A mixed model approach whereby
Active Communities, Leisure Management functions and leisure
capital programmes remain in-house, leisure facilities in more
deprived or targeted areas are in-house and the rest are outsourced
through a single external contractor.

 

c)      Delegated authority to the Assistant Director,
Communities and Leisure in consultation with the Executive Member
for Health and Leisure to take any action necessary to extend the
existing contracts to align with an implementation date for the new
agreed management model of 1st
April 2028.

 

d)      Delegated authority to the Assistant Director,
Communities and Leisure in consultation with the Executive Member
for Health and Leisure to take any actions necessary to further
develop the remaining options and to bring a further report to
Executive once this work has been completed.

 

 

Reasons for Recommendations: To
support the Council and its partners to prioritise activities which
will increase physical activity levels, which in turn will help to
improve health outcomes, reduce health inequalities, improve
community connectedness and cohesion and promote a sense of pride
in place. 

 

To enable Executive to make an
informed future decision based on further analysis of costs and
benefits, about which leisure management model will:

•        
best meet the ambitions set out in
the Corporate Plan, which puts prevention at the heart of what the
Council does;

•        
create a consistent, high quality
active communities service across the North Northamptonshire
area;

•        
provide equality of access and
experience to all residents;

•        
which best meets the objectives of
the Active Communities Strategy;

•        
whilst also providing best value
for the Council. 

 

Alternative Options Considered:
Sections 5.29 to 5.50 of this report sets out in detail the
different management models considered. These include:

•        
Single External
Contractor

•        
Asset Transfer

•        
Local Authority Trading
Company

•        
Charitable Trust

•        
In-House service
delivery

•        
A mixed model approach

 

Asset Transfer is not recommended
to be progressed further due to the inability to control the type
and quality of services delivered and limited ability to ensure
delivery under this model meets the Council’s strategic
priorities. It could also result in negative publicity for the
Council if the facility is not run as residents might expect. It is
also unlikely the Council will be able to secure an asset transfer
for multiple facilities.

 

A Local Authority Trading Company
is not recommended to be progressed further largely due to likely
higher central costs than an in-house model because an independent
management structure would be needed and a board of trustees would
need to be recruited and supported. In addition, set up costs are
highest for this model as a significant medium-term budget would
need to be allocated for either capital investment, or cash flow to
get the organisation up and running.

 

A Council-owned charitable trust
is not recommended to be progressed further as under Procurement
Regulations introduced in 2015 a new charitable trust cannot be
'given’ a leisure contract; it would have to tender for it
alongside all other operators. If the Council were to set up a new
charitable trust for this purpose, as a new entity it would be
unlikely to pass the procurement processes as it will not have the
financial standing and history to pass the financial
evaluation

 

The remaining options will be
subject to further detailed analysis based on a visioning exercise
for a future service specification for active communities and
leisure services for North Northamptonshire.