Agenda item

The report of the Executive Manager – Neighbourhoods is attached.

It was RESOLVED that:

a)    subject to the agreement and completion of appropriate legal documentation to safeguard the Council’s position, the proposal made by Parkwood Leisure Ltd to subcontract the delivery of leisure service to Lex Leisure CIC be approved.

b)    the Executive Manager – Neighbourhoods and the Executive Manager – Finance and Corporate Services, in consultation with the Portfolio Holder for Community and Leisure, be delegated authority to finalise the required legal variations to effect this change.

c)     Lex Leisure CIC brings a report to an appropriate Scrutiny Committee of the Council within the first six months of its operation in respect of both financial and community outcomes and benefits.

The Deputy Leader and Portfolio Holder for Community and Leisure presented the report of the Executive Manager – Neighbourhoods. The Deputy Leader explained that the Council had agreed to permit Parkwood Leisure Limited to sub-contract the delivery of leisure services to Parkwood Community Leisure, a non-profit distributing organisation. It was noted that the Council had since received a proposal from Parkwood Leisure Ltd to vary the contract to replace the non-profit distributing organisation with a Community Interest Company operating model. It was noted that if approved by Cabinet, Parkwood Leisure Limited would end their sub contract arrangements with the non-profit distributing organisation and transfer staff and undertakings under a new sub-contract with Lex Leisure CIC.

The Deputy Leader noted that the advantages of a Community Interest Company included the ability for profits being reinvested into the community. It was also noted that Lex Leisure were particularly keen to provide activities for those with physical and mental health disabilities who currently faced difficulties that limited their ability to access leisure, physical activities and sporting opportunities.  The Deputy Leader noted that Parkwood Leisure Ltd had offered the Council an incentive of up to £70,000 in year one and £120,000 per year thereafter to ensure that the Council would be able to deliver its leisure strategy objectives.

The Deputy Leader proposed an additional recommendation to those included in the officer’s report which proposed that an appropriate scrutiny committee should scrutinise the work of Lex Leisure in terms of financial and community outcomes within the first six months of operation. The Deputy Leader believed that this would make the Council more transparent in its decision making.

In seconding the recommendation Councillor Edyvean noted that even though there were concerns raised by Councillors that Community Interest Companies were VAT exempt he was reassured that this exemption meant that these types of companies could reinvest their profits into facilities and to reach out to those who may currently struggle to access suitable leisure facilities.

Councillor Robinson reiterated the importance of empowering scrutiny to analyse the financial and community outcomes of Lex Leisure and stated that it was important to note that the Council’s primary contract arrangement would remain with Parkwood Leisure Ltd and that they would retain all liability for the delivery of the contract and the actions of the proposed sub-contractor.

It was RESOLVED that:

a)    subject to the agreement and completion of appropriate legal documentation to safeguard the Council’s position, the proposal made by Parkwood Leisure Ltd to subcontract the delivery of leisure services to Lex Leisure CIC be approved.

b)    the Executive Manager – Neighbourhoods and the Executive Manager – Finance and Corporate Services, in consultation with the Portfolio Holder for Community and Leisure, be delegated authority to finalise the required legal variations to effect this change.

c)    Lex Leisure CIC brings a report to an appropriate Scrutiny Committee of the Council within the first six months of its operation in respect of both financial and community outcomes and benefits.

Reason for decision

The proposal will contribute to and assist the Council with the delivery of its Transformation Plan and Medium Term Financial Strategy.