Background

In December 2001, Oldham Metropolitan Borough Council [OMBC], as part of its Best Value review process, faced four fundamental factors of concern with the continuation of in-house arrangements with its Operational Services Team:

• Lack of development programme
• No immediate access to short and medium term capital finance
• Increasing risks associated with under-achieving income targets
• Failure to achieve revenue budget

Officers conducted a Market Testing Exercise and discounted:

• Open competition
• Management buy-out
• In-house leisure trust

Council sought Queen's Counsel Opinion on its Part B Service and opted to waive its Contract Procedure Rules to enable negotiations to take place with D C Leisure Management Limited [DCLM] and its in-house team [who proposed to establish an Industrial & Provident Society].

In March 2002, OMBC outlined a timetable and schedule of requirements for a "competition between DCLM and the in-house team [IPS]. OMBC subsequently consulted with both groups to explore whether they could/would together as joint service providers.

Contract structure approved work in April/May 2002 in principle. It was agreed that DCLM would provide a strategic role to/for IPS. Due diligence undertaken. Cost effect of/on Management Fee calculated.

Finally in November 2003, their "Joint & Several Contract" commenced with a term of five years. IPS occupy/operate OMBC facilities under lease agreement. DCLM provides strategic support to the IPS [Oldham Community Leisure Limited] under a Collaboration Agreement].

Council Objectives

In seeking to transfer its Sport & Recreation Service, OMBC staked out eight objectives for the arrangements to:

• Ensure that employment needs/security were assured
• Make a "step change" in service provision
• Create, over time, a "centre of excellence" for local leisure provision through the development/delivery of a comprehensive and visionary Community Leisure & Facilities Strategy
• Be quickly implemented and "hit the ground running"
• Retain a role in governance for Councillors, and for the Council's Partners in pursuit of Community Leadership activity
• Guarantee proper treatment of the Health and Social Inclusion aspects of Leisure provision
• Have a network of support and expertise from a source other than the Council, especially about the sourcing of revenue grants and other developmental funding [including capital]
• Make NNDR and VAT savings

Overall Outcomes

An innovative, locally-led, tripartite agreement was made - bringing together "what mattered most" for the Council and its former employees, with the proven/practical strategic planning support of the private sector.

Employees transferred to the IPS [Oldham Community Leisure Limited]. IPS occupy/operate the Council's fifteen facilities [including Sports Centres, Swimming Pools, Athletics Track, Pitch & Putt, Synthetic Pitches].

IPS and DCLM are joint and several service providers under a five year management contract with OMBC.

IPS and DCLM have a Collaboration Agreement in place. This defines the scale and scope of the partnership, including its Partnership Board structure and schedule of services to be provided by DCLM for IPS, including the development of:

• Community Leisure & Facilities Strategy [Mapping Supply/Demand, Stakeholder Consultation, Facility Rationalisation/Replacement Requirements, etc]
• Performance Management Frameworks [Benchmarking, KPI's, Pricing Policy, Business Planning]
• Operational Audits [including health/safety, food/beverage, sales/marketing, membership sales/administration, etc]
• Investment Strategy [including cost:benefit and options analysis, funding sources and return on capital modelling]
• ICT Systems Review
• Training & Development
• Sales & Marketing

This public:private partnership is agile enough to be adapted and amended as local needs change and the IPS continues to increase its impact over the course of its five year contract.

DCLM has advised and assisted the IPS on a number of business/service critical issues, including:

• IPS Management Structure
• Recruitment of IPS Chief Executive
• Provision of interim Managing Director
• Procurement of Fitness Equipment
• Procurement of Vending Machines
• Design, Build & Operate options for Fitness Facilities
• Budget & Performance Reporting
• Food & Beverage Stock Valuations

Now in its second year of operation, DCLM and IPS have reviewed/revised their respective roles, responsibilities and relationships to ensure that their collaboration agreement delivers planned improvements across the objectives outlined in the Council's Contract, Community Leisure & Facilities Strategy, and IPS Strategic Performance Plan.