The Head of Community Services has submitted a report to recommend the award of a contract to Serco Leisure Ltd to manage and develop Oxford’s three leisure centres, Hinksey Outdoor Pool, and the Oxford Ice Rink.

Cabinet is recommended 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;

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; and

3.      Agree to receive annual reports on the performance of leisure services and the contractor and agree the business plan priorities for the following year.

The Head of Community Services had submitted a report to recommend the award of a contract to Serco Leisure Ltd to manage and develop Oxford’s three leisure centres, Hinksey Outdoor Pool, and the Oxford Ice Rink.

Councillor Chewe Munkonge, Cabinet Member for Leisure and Parks presented the report, thanked all those who had made representations on the proposal, and acknowledged the concerns which had been raised.  Cllr Munkonge reiterated the Council’s commitment to retaining its leisure centres and providing a good quality leisure service, highlighting that a number of options had been considered in relation to the procurement.  This had included considering the option of bringing the service in-house.  However, detailed work undertaken by officers had concluded that this would have required a level of investment which was not an affordable option within the context of the Council’s Medium Term Financial Plan.  Officers had worked hard to ensure that the procurement process had been robust, open and fair: it had also been undertaken in accordance with the legal parameters.  As a result of this procurement process it had been concluded that Serco Leisure’s tender best met the Council’s criteria and requirements.

Councillor Munkonge highlighted some of the benefits of Serco Leisure’s proposal, which included an investment of over £2.7m to enhance Oxford’s leisure centres and facilities; a contribution of annual operative revenue to promote inclusive access; a commitment to increase participation rates and staffing; and an offer which included inclusive activities such as free swimming and youth night activities.

Councillor Munkonge reported that, should Cabinet agree the proposal, officers would complete the due diligence required to finalise the contract, including ensuring that it contained appropriate contractual terms to safeguard Serco Leisure’s delivery of its commitments.  Specialist legal advice would be taken throughout this process.  Officers would also work with Serco Leisure on their mobilisation plan to ensure a smooth transition from Fusion.

Councillor Anna Railton, Cabinet Member for Zero Carbon Oxford and Climate Justice, highlighted the wider financial context relevant to the re-procurement, noting the closure of leisure centres in a number of areas the country - including in areas of high deprivation - with further closures predicted in future years.  As it was not a statutory service, leisure services were often the subject of cuts in order to balance tight budgets.  The proposal before Cabinet would safeguard leisure provision for the people of Oxford; included a commitment to future investment and a commitment to pay staff the Oxford Living Wage; would maintain important schemes such as free swimming for children; and would not require substantial cuts to other services in order to achieve these aims. 

Cabinet also noted that the process for procuring contracts was prescribed in law and the Council would be held financially liable in the event that the lawful process was not followed. 

Cabinet 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;

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; and

3.      Agree to receive annual reports on the performance of leisure services and the contractor and agree the business plan priorities for the following year.