(Leisure & Wellbeing Portfolio Holder) To consider the restricted report (C-083-2009/10).
Decision:
(1) That detailed negotiations be entered into with Sports Leisure Management to extend the existing management contract from January 2013 to January 2016;
(2) That Sports Leisure Management be requested to act as the delivery agent for the proposed works at the Loughton Leisure Centre;
(3) That a capital supplementary estimate in the sum of £980,000 for 2009/10 be recommended to the Council for approval;
(4) That a further report be considered by the Cabinet following the progression of the proposed new sports hall at Waltham Abbey Swimming Pool to the pre-planning stage concerning:
(a) whether to proceed to the Design & Build stage; and
(b) whether Sport Leisure Management be requested to act as the delivery agent for the Design & Build stage or the scheme be competitvely tendered.
Minutes:
In the absence of the Portfolio Holder for Leisure & Wellbeing, the Director of Environment & Street Scene introduced a report on the contract extension negotiations with Sports Leisure Management Limited.
The Director reminded the Cabinet that the current contract for the provision of leisure services with Sports Leisure Management (SLM) would expire in January 2013, although there was provision for a 3 year extension with the approval of both parties. As part of the consideration of funding for the proposed new sports hall at Waltham Abbey Swimming Pool, the Cabinet had previously requested that discussions be held with SLM regarding an early extension to the existing contract, with a view to the provision of the new sports hall being cost neutral to the Council. The details of those preliminary discussions were outlined to the Cabinet along with the proposals made by SLM. Authority had been granted to take the new sports hall proposal to the pre-planning application stage, and it was proposed that a further report be considered at that point as to whether to proceed to the Design & Build stage, and whether SLM be requested to act as the delivery agent for this stage or whether it be competitively tendered.
The Director advised the Cabinet that the management fee would increase if SLM ran the proposed new sports hall in Waltham Abbey. There was still a possibility that Epping Sports Centre would be relocated to an alternative site which could be an issue when considering capital expenditure at the current site, and SLM did not feel that large-scale catering facilities were required at sports centres.
The Cabinet felt that the proposed investment had the potential for good returns, although further flexible negotiations were required with SLM as there were still some outstanding issues to be resolved. The Cabinet were alerted to the fact that capital projects tended to overrun and it would take eight years to pay back the proposed investment at Loughton Leisure Centre.
Decision:
(1) That detailed negotiations be entered into with Sports Leisure Management to extend the existing management contract from January 2013 to January 2016;
(2) That Sports Leisure Management be requested to act as the delivery agent for the proposed works at the Loughton Leisure Centre;
(3) That a capital supplementary estimate in the sum of £930,000 for 2009/10 be recommended to the Council for approval;
(4) That a further report be considered by the Cabinet following the progression of the proposed new sports hall at Waltham Abbey Swimming Pool to the pre-planning stage concerning:
(a) whether to proceed to the Design & Build stage; and
(b) whether Sport Leisure Management be requested to act as the delivery agent for the Design & Build stage or the scheme be competitively tendered.
Reasons for Decision:
To comply with the decisions made at the meeting of the Cabinet on 13 July 2009.
Other Options Considered and Rejected:
To reject the proposals and re-open discussions with SLM, or to seek modifications to existing proposals, or to reject the proposals in their entirety and not continue negotiations with SLM regarding an early extension of the existing contract.