Decision details

•Update on the Oldham Community Leisure (OCL) current position as a result of Covid 19 and recognise the value of the leisure offer.
•Outline the contractual support offered to OCL to date and note that a Cabinet report was previously approved on the 24th August 2020 which provided OCL financial support for the period the 1st April through to the 24th July. The report outlined the payment mechanism for funds to be released up to the 31st March 2021.
•Seek agreement to pay OCL a further loss of income without prejudice, based on a contractual position, due to a forced closure of its facilities as a result of Covid-19 for the period of the 5th November 2020 through to the 3rd December 2020 and thus ensuring OCL can survive until the 31st March 2021 and provide them some certainty in the short term.
•Agree that ongoing dialogue with OCL is required during operational recovery to ensure it continues as a going concern in the medium term and mitigates any financial ask on the Council in the most efficient and effective manner.
•A further options paper will follow with more a detailed plan on financial survival and options on the future of the contract.

RESOLVED - That:
It is recommended that option 1 is approved which would allow an immediate survival of OCL and a further paper will follow shortly with more detailed plan on financial survival and options on the future of the contract.

Option 1 - Agree to pay OCL loss of income without prejudice, based on a contractual position and, due to a forced closure of its facilities as a result of Covid 19 for the period of the 5th November 2020 through to the 3rd December 2020 at a sum of £395K. Taking into account funding received from other sources, appropriate mitigations have reduced the financial ask and OCL as per the contract agreement of a ‘no better or no worse’ position.
Option 2 - Not to approve any funding and bring the leisure stock in house. OCL would not survive and the management of the leisure centres would be the responsibility of the council.
Option 3 -Not to approve any funding and put the contract out to tender as OCL go into administration. This would be a minimum of an 18-month process and without funding there would be no leisure provider in the meantime.

Option 2 - Not to approve any funding and bring the leisure stock in house. OCL would not survive and the management of the leisure centres would be the responsibility of the council.
Option 3 -Not to approve any funding and put the contract out to tender as OCL go into administration. This would be a minimum of an 18-month process and without funding there would be no leisure provider in the meantime.

The rule 13 has had approval from Councillor McLaren (Chair of O