Agenda and minutes

(Director of Neighbourhoods) To consider the attached report (LMC-001-2015/16).

The Deputy Chief Executive and Director of Neighbourhoods presented a report on the proposed terms of reference for the Group.

The Deputy Chief Executive reported that the District Council provided a range of Leisure and Cultural services, which included Arts, Community and Sports/Health Development, as well as the District Museum Service. The most significant direct investment in Leisure however, was the provision of four Sports Centres across the District managed under contract by Sports and Leisure Management Limited (SLM) on behalf of the Council. The current 10-year contract with SLM was due to expire in January 2016, and the Council needed to consider the future level of service and the Leisure Management procurement and contract options it wished to pursue.

The Deputy Chief Executive stated that the Council had agreed to appoint a Portfolio Holder Advisory Group to offer advice and guidance to the Portfolio Holder for Leisure & Community Services in determining the scope and specification of the new contract. As such, the proposed terms of reference was outlined for the Group to consider. As a non-executive body, whose role it was to advise the Portfolio Holder, the Group could reconsider and amend its terms of reference at any time to reflect changing circumstances.

For the benefit of the Group, the consultant engaged to assist the Council with this process gave a brief explanation of the competitive dialogue process that it was envisioned would be used to procure the new Leisure Management contract. The Group agreed the draft terms of reference as proposed.

Resolved:

(1)        That the proposed terms of reference for the Portfolio Holder Advisory Group be agreed as outlined below:

            (i)         To assist in ensuring that the Council is in the best position to obtain a       competitive and effective tender to deliver the desired outcomes of the            Leisure and Cultural Strategy.

            (ii)        To review the current services provided under the Leisure   Management   Contract and consider any changes to the programme of            activity offered, how the contract may be packaged and the length of any             contract period.

            (iii)       To critically review the 4 Sports and Leisure Centres owned by the             Council, giving consideration to their location, age, condition, costs/subsidy,           and make recommendations on future provision/investment.

            (iv)       To advise the Council’s Client Officer Team as they undertake the competitive dialogue process, considering options that may emerge as part of        any bidders’ proposals.

            (v)        To provide input into the appointment process for any potential        contractor, and in particular, to participate in a Member Presentation and      Interview Panel.

            (vi)       To support the Portfolio Holder in recommending any successful    Leisure Management Tender to the Cabinet, taking into consideration the       Service and Financial implications for the Council.

(Director of Governance) To agree the notes of the last meeting of the Portfolio Holder Advisory Group on the Development of a Leisure and Cultural Strategy for the District, held on 2 October 2014.

Resolved:

(1)        That the notes of the last meeting of the Portfolio Holder Advisory Group on the Development of a Leisure and Cultural Strategy for the District held on 2 October 2014 be agreed and signed by the Portfolio Holder as a correct record.

(Director of Neighbourhoods) To consider the attached report (LMC-002-2015/16).

The Deputy Chief Executive and Director of Neighbourhoods presented a report concerning the procurement of the next Leisure Management contract.

The Deputy Chief Executive reminded the Group that, as part of the Council’s initial decision to seek an alternative provider in 2005, consideration was given to the management options available, i.e. direct management, private sector operator, an in-house trust, or established trust. Following an thorough evaluation exercise, the firm conclusion was that outsourcing to a private sector partner or external trust would be the preferred option. A recent review of these options, which included visits to other authorities who had recently re-let Leisure Management contracts, had reached the same conclusion. The review also noted the development in the leisure contracting market of private sector companies being willing to invest capital or enter into joint development arrangements for new or extensively extended leisure facilities.

The Deputy Chief Executive stated that the procurement of a new Leisure Management contract was a very complex operation. The Council could replicate the previous approach whereby it specified its requirements in detail in the contract specification, but this would have a limiting effect on the contractor. The current contractor, Sports & Leisure Management Limited (SLM), had already alluded to this restriction and had suggested an alternative approach of competitive dialogue would be preferable. Braintree District Council and Hinkley Borough Council had both recently let their Leisure Management contracts by competitive dialogue, with considerable benefits in terms of reduced revenue costs and increased capital investment. It was hoped to achieve similar outcomes for this Council.

The Deputy Chief Executive reported that the Council had engaged a specialist consultant to assist with the procurement process, due to the complexity of the competitive dialogue approach and the amount of resource required to successfully complete the process in the required timescale. After a competitive process, RTP Consultancy had been appointed. It was highlighted that the process would require a short-term extension to the current contract with SLM.

The Consultant from RTP Consultancy presented the draft Project Plan for the procurement process. Phase I revolved around devising the Business Case, which would include different options and the financial implications of each; it was suggested that no more than two or three options be presented to the market. The options for tender could include the capital risk being undertaken by the contractor, or the Council being responsible for capital investment. The evaluation criteria would need to be agreed, and this was usually a mixture of price and quality factors.

The Consultant explained that Phase II was the Procurement phase and consisted of three stages. The first stage was Pre-Qualification, whereby a shortlist would be drawn up of a maximum of five bidders, and the OJEU (Official Journal of the European Union) notice would be issued. The second stage was the Invitation to Submit Detailed Solutions (ISDS), which should include the key Method Statements from the bidders for the delivery of the service. At the end of this stage, the shortlist would be reduced  ...  view the full minutes text for item 3.

(Director of Neighbourhoods) To consider the future schedule of meetings for the Portfolio Holder Advisory Group.

The Deputy Chief Executive and Director of Neighbourhoods stated that the draft Project Plan showed meetings of the Advisory Group being held every two months until June 2016, where there would be monthly meetings during the Contract Handover Phase. The Group was asked to consider their preferred start time.

The Portfolio Holder suggested that meetings of the Group could be scheduled for Thursday evenings, starting at 7.00pm, and the Group agreed with this.

Resolved:

(1)        That future meetings of the Group be arranged on Thursday evenings starting at 7.00pm, in line with the draft Project Plan for the Leisure Management Contract Procurement.