Agenda item

8.1

This report provides an update to the Committee on the outcome of the Leisure procurement. The report outlines the opportunities offered by the new contract with Everyone Active (EA) in terms of achieving Sheffield City Council’s (SCC) ambitious Council Plan and City Goals. The report supports the accompanying presentation to be given by EA at the Committee meeting.

8.2

RESOLVED UNANIMOUSLY: That the Communities, Parks and Leisure Policy Committee:-

1.     notes the contents of this report;

2.     notes the accompanying presentation from Everyone Active; and

3.     notes that future updates will be provided to this Committee outlining the developing partnership between SCC and Everyone Active and the achievements of outcomes as set out in the contract specification.

8.3

Reasons for Decision

8.3.1

A new partnership with Everyone Active will ensure there are robust contract arrangements in place (from January 2025) to continue to operate Sheffield’s Sport and Leisure facilities when the current arrangements with Sheffield City Trust end.

8.3.2

Our partnership with Everyone Active presents an opportunity to build on the excellent work of Sheffield City Trust over the last 30 years by providing opportunities for engagement on a range of health and wellbeing outcomes.

8.3.3

Our work with Everyone Active will continue the work of Sheffield City Trust’s community team which contributes to a whole-system approach to the promotion of physical activity for adults and children, both in our built facilities and in our parks and open spaces.

8.4

Alternatives Considered and Rejected

8.4.1

Alternative Option 1 - do nothing

This option was discounted as the current arrangements with SCT will end in January 2025 and the arrangements with Places will end in August 2026. The Council is therefore unable to continue to operate under existing arrangements.

8.4.2

Alternative Option 2 – Not enter contract in a new contract with Everyone Active and either bring the Facilities back in-house or create a Local Authority Trading Company (LATC)

If the Council had chosen not to appoint a new operator to run the facilities, the alternatives would be either bringing the facilities in house to be run by the Council or, creating a Local Authority Trading Company. Both these options were explored as part of the early procurement development, and both were discounted because they were more expensive and present higher financial risk to the Council. They would not allow for the level of investment needed for the Council to offer significantly improved leisure facilities.

24.1

The Director of Parks, Leisure and Libraries and representatives from Everyone Active attended the meeting to update the Committee on the outcome of the Leisure procurement. The report outlined the opportunities offered by the new contract with Everyone Active (EA) in terms of achieving Sheffield City Council’s (SCC) ambitious Council Plan and City Goals.

24.2

In relation to paragraph 2.8 of the report, the Director of Parks, Leisure and Libraries stressed that the current contractual arrangements with Sheffield City Trust had served the city well for over 30 years and, despite the best efforts of the Council and the Trust, the existing operating model did not allow for the amount of capital investment required. The existing contract would have required the Council to underwrite any loan facility with Sheffield City Trust which, due to austerity, the Council could not guarantee. As a result of the significant period of austerity and rising energy costs, the impacts on the Council’s and the Trust’s ability to invest in facilities had allowed the venues to fall into an unacceptable state. The Director stressed that it was not a reflection on the way that the Trust had run the venues.

24.3

The report was supported by an accompanying presentation given by EA in the meeting that provided the Committee with information about EA, their achievements to date and their ambitions for Sheffield.

24.4

RESOLVED UNANIMOUSLY: That the Communities, Parks and Leisure Policy Committee:-

1.     notes the contents of this report;

2.     notes the accompanying presentation from Everyone Active; and

3.     notes that future updates will be provided to this Committee outlining the developing partnership between SCC and Everyone Active and the achievements of outcomes as set out in the contract specification.

24.5

Reasons for Decision

24.5.1

A new partnership with Everyone Active will ensure there are robust contract arrangements in place (from January 2025) to continue to operate Sheffield’s Sport and Leisure facilities when the current arrangements with Sheffield City Trust end.

24.5.2

Our partnership with Everyone Active presents an opportunity to build on the excellent work of Sheffield City Trust over the last 30 years by providing opportunities for engagement on a range of health and wellbeing outcomes.

24.5.3

Our work with Everyone Active will continue the work of Sheffield City Trust’s community team which contributes to a whole-system approach to the promotion of physical activity for adults and children, both in our built facilities and in our parks and open spaces.

24.6

Alternatives Considered and Rejected

24.6.1

Alternative Option 1 - do nothing

This option was discounted as the current arrangements with SCT will end in January 2025 and the arrangements with Places will end in August 2026. The Council is therefore unable to continue to operate under existing arrangements.

24.6.2

Alternative Option 2 – Not enter contract in a new contract with Everyone Active and either bring the Facilities back in-house or create a Local Authority Trading Company (LATC)

If the Council had chosen not to appoint a new operator to run the facilities, the alternatives would be either bringing the facilities in house to be run by the Council or, creating a Local Authority Trading Company. Both these options were explored as part of the early procurement development, and both were discounted because they were more expensive and present higher financial risk to the Council. They would not allow for the level of investment needed for the Council to offer significantly improved leisure facilities.