Issue - meetings

Purpose of Report

As detailed in the exempt report to the Executive.

Decision

That the recommendation to the Executive, as set out in the exempt report, be approved.

Alternative Options Considered and Rejected

As detailed in the exempt report to the Executive.

Reasons for the Decision

As detailed in the exempt report to the Executive.

(Councillor Donald Nannestad viewed the meeting remotely as an observer via video link. He was not permitted to take part in discussions at the meeting or vote on the matter to be determined, due to his absence in person, according to Constitutional Procedure Rules.)

Purpose of Report

Following the announcement that Active Nation ceased trading on Thursday 3 April 2025, to seek authority to urgently procure a new leisure provider for Yarborough Leisure Centre and Birchwood Leisure Centre, utilising emergency provisions contained within the public procurement regulations governing public sector contracting.

As reported in the January 2025 report to committee, the charity was finding it increasingly difficult to maintain a positive trading position due to the double impact of both dramatically increased energy costs and a client base affected by the cost-of-living crises, necessitating the offer of a support package from the City Council at that time. This package was unfortunately turned down by Active Nation and a series of related events ensued that ultimately led to the charity ceasing to trade. This had left the City Council with no leisure provider and the centres closed.

This report therefore sought urgent approval to commence the procurement of an interim provider for the City Council’s outdoor and indoor leisure centre provision at Yarborough Leisure Centre and Birchwood Leisure Centre for a two-year period whilst longer term options were more fully developed and appraised.

Decision

1.    That the urgent commencement of the procurement process for a new leisure operator for the indoor and outdoor facilities at both Yarborough Leisure centre and Birchwood Leisure centre for a two-year period be approved.

2.    That the outcome of that process prior to entering into the contract and to set out the cost implications and funding package be reported back to Executive.

Alternative Options Considered and Rejected

Various options had been considered including:

1. Urgent procurement of an interim leisure provider for up to two years to replace Active Nation and use this period to pause and reflect on the future of leisure provision

2. Urgent procurement of an interim leisure provider for up to two years to replace Active Nation and then straight after that, start the process of procuring a long-term provider

3. To consider the Council’s role in direct provision of leisure facilities in the city and the role of other providers in the City to see if the mix could change

4. To bring the service ‘in house.’

Reasons for the Decision

The City Council was supported by a very experienced consultancy firm in the leisure industry (Max Associates). They had provided support, advice and financial modelling to help officers navigate the way forward.

A full appraisal of all the options by both Max Associates (financial business case assessment) and officers (high level strategic case) had been undertaken, driven by a very strong desire to see the leisure centres re-opened as quickly as possible. It was noted that the centres played a vital role in supporting the physical and mental health of residents of the city  ...  view the full minutes text for item 111