Minutes:
The Committee scrutinised a joint report of the Assistant Director (Youth, Leisure and Communities) and of the Chief Executive of Oldham Community Leisure (OCL), which detailed the progress of Oldham Community Leisure coming out of Covid-19 operating restrictions. The report also provided a financial year end position, together with commentary of the current financial year to date ending October 2022.
In December 2012 the Council’s Cabinet had approved a recommendation to appoint OCL following a competitive process as the preferred bidder for a new 10 plus 5-year contract to operate and manage the Council’s leisure facilities. The contract became operational in April 2013. The current contract, without the 5-year optional extension, was due to end on 31st March 2023. Ongoing work was being carried out to extend the contract.
Under normal circumstances, prior to the onset of Covid-19, the Leisure contract was performing well. The outcome and outputs stipulated in the contract were being met. In addition, memberships were high, the external inspections of the centres were all very good or excellent, and customer feedback was also good. The overall financial performance was also positive. The Covid-19 situation had presented various significant issues to all Leisure providers across the country, not just OCL, and sport generally due to the two forced closures and a restriction on activity in our Leisure Centres when they have been open. In addition, strict guidance on all team sport activity and cancellations of all National Governing Body of sport has further impacted, resulting in cancellation of block bookings, a reduction in the use of facilitates and an impact on income.
To support the monitoring of the performance of OCL, in addition to the contracted quarterly performance meetings, monthly monitoring meetings are also in place specifically to look at the OCL overall financial performance. The Council supported OCL’s ambition to get as many people back into physical activity as quickly as restrictions would allow, following their well-received flexing of service provision, such as outdoor classes, over the enforced site closures.
The Leisure contract extension, which is a 10 plus five years, is due for consideration at the end of the current financial year. An initial agreement had already taken place prior to Covid-19 to look at extending this but with some changes to the contract and additional social value activity and measures added. Work is advanced on development of these revised arrangements and it was anticipated that the contract extension would be signed before the end of this financial year; the contract extension would take the partnership through to the end of March 2028.
OCL had continued to work with members to build their confidence to return and to maximise the number of sessions that they have on offer. A comparison to similar time periods, because of COVID, though does show a fall in memberships and this could be directly linked to Covid-19.
Resolved:
1. The Committee notes the updated performance of Oldham Community Leisure for the period specified in the submitted report.
2. The Committee notes the current work in progress to ratify the 5-year contract extension and the intent to explore a longer partnership beyond 2027.
3. That a further update report, detailing the performance of Oldham Community Leisure be submitted to the Committee in approximately 12 months.