Decision details

To consider proposals for an extension to the current contract for the management of Fareham Leisure Centre including a £1.5m investment in the refurbishment of the wet side facilities.

The contract for the management of Fareham Leisure Centre was awarded to Sport & Leisure Management Ltd (SLM) in May 2005. Under the terms of the contract SLM manage and operate the Leisure Centre in return for a fixed income revenue stream paid to the Council. 

The contract has been very successful and SLM have made significant improvements to the building and equipment. The exceptional standard of service provided by SLM at Fareham Leisure Centre has been recognised with a number of national industry awards.

Due to the success of the contract, the swimming pool and wet side facilities have been operating at near capacity. This has put pressure on these facilities and they now look tired and the 30 year old pool filtration plant urgently needs replacing.

With the contract due to expire in April 2015, SLM have put forward a proposal to address the refurbishment of the wet side facilities and the urgent need to replace the pool water filtration plant.

In exchange for capital investment by the Council and a five year contract extension, SLM will undertake the works on behalf of the Council and provide the Council with an improved fixed income revenue stream.

The proposed programme of works will prolong the life of Fareham Leisure Centre well beyond the proposed contract extension period and will provide a long term revenue benefit for the Council.

RESOLVED that the Executive agrees:

(a)       to provide £1.5m from the Council’s capital reserves in 2014 to address the refurbishment of the Fareham Leisure Centre wet side facilities and pool water filtration plant; and

(b)       a five year extension to the current management contract with Sport & Leisure Management Ltd until May 2020 (as per the conditions set out in paragraph 35 of the report).