Cabinet, on 24 January 2024, resolved to:

1.       Award a ten-year contract (with a five-year extension option) for managing and developing the Council’s three leisure centres, Hinksey Outdoor Pool and the Oxford Ice Rink to Serco Leisure Ltd, subject to officers completing necessary due diligence and pre-contract negotiations; and

2.       Delegate authority to the Interim Executive Director (Communities and People), in consultation with the Head of Financial Services (Section 151 Officer), Head of Law and Governance (Monitoring Officer) and the Cabinet Member for Leisure and Parks to:

            i)        complete due diligence, contract negotiation and final contract terms prior to the award of the contract;

           ii)        agree, subject to the limits set by procurement law and the Council’s Constitution and for a maximum period of 2 months from the contract start date, interim arrangements for the delivery of the contract services by Serco Leisure Ltd where necessary to allow them to complete contract mobilisation after 29 March 2024;

         iii)        vary the current contractual arrangements with Fusion to enable them to continue to provide essential members data systems and related back-office support functions for a period of up to 2 months to ensure the continuation of these specific functions and ensure a smooth transition, to the end May 2024, only should the need arise; and

         iv)        establish necessary service and corporate staff arrangements for the effective commissioning, delivery and management of the leisure services contract.

To award a ten-year contract (with a five-year extension option) for managing and developing the Council’s three leisure centres, Hinksey Outdoor Pool and the Oxford Ice Rink to Serco Leisure Ltd.

This will involve Serco Leisure paying the Council a management fee which is £11,177,975 over 10 years.  Should the Council extend by an additional 5 years then the 15 year value increases by an additional £9,401,024 to a total sum of £20,578,999.

The Council’s current contract with Fusion Lifestyle expires on 29 March 2024. The new contract with Serco must be in place by 30 March in order to ensure continuity of service.

This decision will enable the contract to be sealed on Wednesday 27 March 2024.

Please see the report to Cabinet dated 24 January 2024 for further information.

Please see the Report to Cabinet dated 24 January 2024.

Serco has indicated that if the contract were not sealed on 27 March it may propose alternative interim contractual arrangements to cover the negotiation period until the contract is agreed. It is likely that agreeing this documentation would be resource costly and time consuming, and so it is in the best interests of both parties to seal on 27 March. A letter of intent covering some aspects of the service provision is in place and this may also need to be extended if the contract were not sealed on 27 March.

Decision taken by Peter Matthew, Interim Executive Director (Communities and People) in consultation with Emma Jackman, Head of Law and Governance, Nigel Kennedy, Head of Financial Services and Councillor Chewe Munkonge, Cabinet Member for Leisure and Parks.