RESOLVED: That

1.  The current proposals from Maidstone Leisure Trust and Serco Leisure for a contract extension be noted;

2.  The leisure services contract for Maidstone Leisure Centre, Mote Park Outdoor Adventure and Lockmeadow Health Club for the period August 2024 onwards be extended for a period of five years, with up to three one-year extensions thereafter;

3.  Delegated authority be given to the Director of Finance, Resources and Business Improvement, in consultation with the Cabinet Member for Communities, Leisure and Arts, to finalise details of the contract extension;

4.  An additional £250,000 for minor capital improvements be included in the capital programme;

5.  £1,000,000 for bringing forward plans for a new or refurbished leisure centre be included in the capital programme, with a view to a final decision on the way forward by August 2026; and

6.  Delegated authority be given to the Head of Legal Partnership to negotiate, execute and complete all necessary agreements, deeds and documents arising from or ancillary to the decisions.

(See Record of Decision)

The Cabinet Member for Communities, Leisure and Arts introduced the report and advised that the team had worked hard to re-negotiate the extension of Serco Leisure’s contract for Maidstone Leisure Centre, including Lockmeadow Health Club and the Adventure Zone at Mote Park, for five years with the option of one-year extensions if required. This mitigated the need to go out to tender or take on an in-house operation, which were not recommended options.

The committee expressed support for the proposal, referencing that it would provide a consistency of service, that the other options presented too much risk, with no guarantee that tenders would be forthcoming or provide better prices, and the building’s age. The proposed new facility and the £2 million to be spent on improvements was highlighted. It was requested that a further breakdown of the in-house option costs be circulated to the Committee for information.

RESOLVED to RECOMMEND to the CABINET: That

1.  The current proposals from Maidstone Leisure Trust and Serco Leisure for a contract extension, be noted;

2.  The leisure services contract for Maidstone Leisure Centre, Mote Park Outdoor Adventure and Lockmeadow Health Club for the period August 2024 onwards be extended for a period of five years, with up to three one-year extensions thereafter;

3.  Delegated authority be given to the Director of Finance, Resources and Business Improvement, in consultation with the Cabinet Member for Communities, Leisure and Arts, to finalise details of the contract extension;

4.  An additional £250,000 for minor capital improvements be included in the capital programme; and £1,000,000 for bringing forward plans for a new or refurbished leisure centre be included in the capital programme, with a view to a final decision on the way forward by August 2026.

Councillor Russell, the Cabinet Member for Communities, Leisure and Arts, introduced the report relating to the leisure services contract for the operation of Maidstone Leisure Centre, Mote Park Outdoor Adventure and Lockmeadow Health Club.  It was noted that:

·  Although the report was titled Maidstone Leisure Centre – Operator Contract, it related to the leisure services contract for the Maidstone Leisure Centre, Mote Park Outdoor Adventure and Lockmeadow Health Club, and this was reflected in the recommendations.

·  The first sentence of the Biodiversity and Climate Change section of the report should read ‘The implications of this report have been considered and there are multiple opportunities to greatly reduce utilities and carbon emissions through the minor practical improvements that can be delivered.’  This was because the minor practical improvements were a Council-led initiative and were possible with a new leisure operator or with an extension of the existing contract.

·  In February 2023, the Executive agreed to proceed with minor practical improvements to the Leisure Centre and pursue a contract extension with Maidstone Leisure Trust (MLT) and Serco Leisure Ltd (Serco) for the continued operation of the Centre until 2031.  The Council’s contract was with MLT, an independent not-for-profit community benefit society.  Day to day running of the Leisure Centre was carried out by Serco who operated as agent for MLT.

·  Since the meeting of the Executive in February 2023, the Council had acquired the Lockmeadow Health Club and the Government had announced capital funding for swimming pool upgrades to mitigate the rising cost of managing public swimming pools.

·  Discussions and negotiations with MLT and Serco included incorporating the delivery of the minor practical improvements as part of the contract extension; building upon Serco’s experience of delivering similar cost-saving and income-generating schemes in other leisure centres; and the submission of a bid by the Council to the new Sport England Swimming Pool Support Fund.

·  It was proposed that the contract, if extended, should continue to include the Lockmeadow Health Club which had been operating under the leisure services contract since June 2023 and shared the same termination date.

·  Accepting the current proposal from MLT and Serco and extending the existing contract was not recommended as the Council would incur additional expenditure and need to make changes to its budgets which would impact other priority areas across the Council.  The recommendation was to put the leisure services contract for the Leisure Centre, Mote Park Outdoor Adventure and Lockmeadow Health Club out to tender and invite offers from other operators as this would provide flexibility if a more acceptable offer was not received from MLT and Serco.

·  By contracting with MLT, the Council had access to significant tax exemptions and other benefits.

During the ensuing discussion reference was made to the need to undertake the minor practical improvement works to the Leisure Centre as soon as possible to reduce the costs of running the building and increase revenue.

In response to questions, the Cabinet Member/Director of Finance, Resources and Business Improvement advised the Committee that:  ...  view the full minutes text for item 52