Decision details
Safe and Viable Re-opening of Leisure Centres
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Purpose:
This report sets out the impact of the
government’s closure of leisure centres on 20th March to
mitigate Covid-19, on the council’s leisure service contract
provider, GLL. This is an industry wide issue, affecting all
leisure centre operators, giving rise to financial instability in
the leisure market.
There are two leisure contracts in operation in Tower Hamlets, the
main leisure management contract for the borough’s six
centres, in which the Council is in direct contract with GLL and
The Poplar Baths contract, in which the Council is in a direct
contractual relationship with Folera, a special purpose vehicle
(SPV), which sub-contracts the leisure centre management and
operation to GLL.
This report seeks approval to allocate a loan to GLL for the main
leisure management contract for the period March – August
2020 to ensure the continued operation of the leisure service
within Tower Hamlets. This loan payment will be subject to
‘open book’ review.
Decision:
The Pre-Decision Scrutiny Questions and officer responses were noted.
The recommendations were amended and then approved.
DECISION
1. To authorise the Corporate Director Resources to negotiate and agree a management fee sum of up to £181k for Poplar Baths.
2. To authorise the Corporate Director Resources to negotiate and agree the removal of the Leisure Management service element from the main Poplar Baths PPP agreement, to bring it in line with the main leisure management contract or as a continuation of the current arrangements between LBTH and Folera.
3. To approve a contract variation to the main leisure management contract to provide a management fee of up to £593k to GLL, pending further negotiation of the repayment schedule and share of surplus and following further consultation with the Mayor and Lead Member.
4. To approve the proposed pricing schedule at paragraph 3.2 of the report.
5. To approve the phased restoration of safe and viable leisure centre activities in three phases with decisions upon implementation of each phase to be determined following a review of guidance, implementation, demand and lessons learned and following consultation with the Mayor and Lead Member in advance of each phase of restoration.
6. To note that a detailed Equalities Impact Assessment has not been conducted at this stage, however, if the leisure services were to cease, or some centres not to reopen, there would be loss of service provision for protected characteristics including single sex provision, older people and disability
Action by:
CORPORATE DIRECTOR, CHILDREN AND CULTURE (J. THOMAS)
(Divisional Director, Sports, Leisure and Culture (J. St John)
Report author: Judith St John
Publication date: 31/07/2020
Date of decision: 29/07/2020
Decided at meeting: 29/07/2020 - Cabinet
Effective from: 08/08/2020
Accompanying Documents:
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