Agenda item

The report of the Executive Manager – Neighbourhoods is attached.

The Service Manager – Neighbourhoods presented the report of the Executive Manager – Neighbourhoods to provide information on, and report performance data for the Private Finance Initiative (PFI) contract for East Leake Leisure Centre for the contract year, January to December 2017.

The Service Manager advised that Carillion, who had been managing the contract had entered into administration in January 2018 and that East Leake School Ltd, who operated the PFI contract had worked closely with the administrators throughout this time to ensure that service delivery and staffing remained consistent throughout this period of uncertainty. It was noted that on 4 June 2018, Mitie had been appointed as the new provider to deliver leisure services at East Leake Leisure Centre. Members of the Board were assured by the Service Manager that services at the Leisure Centre had been “business as usual” whilst the legalities to enable the transfer of the contract had been completed and that there had been no adverse impact on the customer experience during this period. The Service Manager also noted that early monitoring of performance of the contract with Mitie had shown good performance against key performance indicators.

The Manager of East Leake Leisure Centre, Mr Ben Neath and the Senior Facilities Manager – Mitie, Mr Edward Surplice attended the meeting and provided a presentation on the Performance of the Leisure Centre for 2017 and the future delivery of leisure services at East Leake. Mr Neath provided the Board with information on the four key service objectives, as set out in the Leisure Centres service agreement, which were:

·       Usage of no less than 180,000 users per annum

·       Customer satisfaction rating of 80% (very satisfied/satisfied)

·       70% compliance rate at client inspections

·       The provision of a broad range of activities to include children’s holiday activity programmes.

Mr Neath reported that the Leisure Centre was performing well with a steady increase in gym membership and uptake of swimming lessons and advised that average customer satisfaction from monthly returns was 93% from 292 comments. Mr Neath also advised that twenty-three Compliance inspections has been carried out during 2017 by the Leisure Contracts Manager, with an average compliance score of 81.3%.

Mr Edward Surplice provided members with an overview of Mitie and the services that they provided and advised that the transfer of the contract had gone smoothly and that the majority of leisure centre staff previously employed by Carillion had had their employment contracts transferred to Mitie on similar terms and conditions. Mr Surplice advised that improvements to the reception area, changing rooms and all weather pitches were being considered, but that there were no plans to re-brand the facilities as Mitie and confirmed that the “Energise – East Leake Leisure Centre” banner would remain in place.

Members of the Board expressed concerns regarding the lack of information on the financial contract as no information had been provided on whether the facility was running at a profit or loss. The Executive Manager – Transformation and Operations advised that the PFI contract was agreed in 2002 to run for a fixed period of 25 years, with the Council making fixed contributions each year. These contributions had been agreed for the full term of the contract, and are non-negotiable, therefore Mitie as the new provider are contracted to provide leisure services at the site on these terms.

Members questioned the appropriateness and scope of the targets under the service agreement and queried whether the targets should be set at a more challenging level. The Service Manager – Neighbourhoods confirmed that each year, the Centre Manager and the Rushcliffe Contract Manager set targets based on the previous year’s usage and confirmed the target for the contract year 2017 had been set at 224,500 users.  The Leisure Centre Manager - Mr Neath, responding to concerns that increasing targets for the number of users could negatively impact on the customer experience, confirmed that the centre was in a good position to increase membership without compromising on service.

Members of the Board expressed concern with the increase in poolside slips and trips being reported at the leisure centre. Mr Neath advised that this had been addressed with the installation of extra non-slip matting on the poolside. Members of the Board asked how the transfer of staff contracts from Carillion to Mitie had been managed. Mr Surplice confirmed that the majority of staff employed by Carillion had transferred employment to Mitie and that existing rates of pay and pension rights had been honoured.

The Chairman and members of the Board thanked Mr Neath and Mr Surplice for attending the meeting and for answering their questions.

It was RESOLVED that:

a)    the report be endorsed by members.

b)    the Service Manager – Neighbourhoods provides members of the Board with further information on the financial model of the service contract with Mitie.