Issue - meetings
Urgent Business - Leisure Contract - Proposed extension to the Deed of Settlement to reflect the ongoing impact of COVID19 on the performance of the Leisure Operating Contract.
Meeting: 10/05/2021 - Cabinet (Item 82)
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Summary:
Options considered: |
Due to the further COVID19 related restrictions on the sports and leisure facilities, and the uncertainty of when the facilities will be able to operate at pre-COVID capacity, the Council has been approached by the Leisure Operating Contract Operator, Everyone Active, for further financial support, in line with Government guidance. The proposal to extend the Deed of Settlement, agreed for the 2020/21 financial year, caps the maximum cost to the Council. These figures have been independently scrutinised by FMG who have confirmed that they are realistic and in line with other local authorities nationwide.
1. Do not extend the Deed of Settlement. 2. Extend the Deed of Settlement but negotiate lower capped monthly figures. 3. Extend the Deed of Settlement based on the proposed figures.
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Conclusions:
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The Leisure Contract is in its third year of a ten-year contract. The contract took significant resource to procure and represented good value for money; it was not possible to foresee the impact that COVID19 would have on the performance of the contract when it was let. Agreeing the extension of the Deed of Settlement is in accordance with current Government guidance and removes the potential for contractual claims by the Operator. Extending on the monthly capped figures proposed by the Operator removes the risk of further contractual claim or failure during the period, limits the financial liability of the Council and provides certainty for the Operator.
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Recommendations:
Reasons for Recommendations:
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That Cabinet extend the Deed of Settlement with Everyone Active based on the proposed figures for the financial year 2021/22.
To finance any financial liability which becomes due from the Delivery Plan Reserve.
To mitigate the risk of claim on the contract and to limit the financial exposure of the Council. |
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report, which do not contain exempt information and which are not published elsewhere)
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Procurement Policy Note - Supplier relief due to COVID-19 (PPN 02/20) https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/874178/PPN_02_20_Supplier_Relief_due_to_Covid19.pdf
Procurement Policy Note – Recovery and Transition from COVID-19 (PPN 04/20)
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Cabinet Member(s) Virginia Gay |
Ward(s) affected All |
Contact Officer, telephone number and email:
Karl Read, 01263 516002, karl.read@north-norfolk.g
Additional documents:
- Exempt Appendix Cabinet Extension Deed of Settlement , View reasons restricted (82/2)
Minutes:
The Leader said that she hoped to keep the discussion in public session but that if any member wished to speak on the exempt appendix, then the meeting would need to move into private business.
She invited Cllr Gay, Portfolio Holder, Portfolio Holder for Leisure, Wellbeing and Culture to introduce the report. Cllr Gay said that agreeing the extension of the Deed of Settlement for the Council’s leisure contract was in accordance with Government guidance and removed the potential for contractual claims by the operator. She thanked the officers for their hard work in preparing the report to a tight deadline.
It was proposed by Cllr V Gay, seconded by Cllr E Seward and
RESOLVED
That Cabinet extend the Deed of Settlement with Everyone Active based on the proposed figures for the financial year 2021/22.
To finance any financial liability which becomes due from the Delivery Plan Reserve.