Decision details

Hawth Management Contract - Change of Sub-Contract from Parkwood Community Leisure to Lex Leisure

Decision Maker: Head of Major Projects and Commercial Services

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

Parkwood Leisure has recently approached the Council with a proposal to terminate their existing sub contract to Parkwood Community Leisure and replace this with a new sub contract to Lex Leisure (a Community Interest Company). The existing sub contract would terminate on 31st March 2020 and the new sub contract would commence on 1st April 2020.
The proposal provides specific VAT efficiencies and as a community interest company, increases the potential for the Hawth to attract grant aid and trust funding for community programmes. The proposals replicates the change made at Tilgate Golf Centre when the sub contract transferred from Glendale Golf Ltd to Lex Leisure in 2014. This change will be of slight financial benefit to the Council and it is not anticipated that any the change will result in any negative affect.
Parkwood Leisure will have a Professional Services Agreement (PSA) in place that will enable Lex Leisure to access central services including HR, finance, marketing and promotions, procurement and payroll. The site operational teams will TUPE transfer from Parkwood Community Leisure to Lex Leisure with all the existing terms and conditions protected as part of the transfer.
As per the current sub contract arrangement to Parkwood Community Leisure, Crawley Borough Council would still be in contract with Parkwood Leisure for the entire service and Parkwood Leisure would have ultimate responsibility for the performance of the contract. The length of the contract between Parkwood Leisure is unaffected.

Decision:

The Head of Major Projects and Commercial Services in consultation with the Portfolio Holder for Wellbeing has agreed that Parkwood Leisure terminate their existing sub contract to Parkwood Community Leisure and replace this with a new sub contract to Lex Leisure (a Community Interest Company). The existing sub contract would terminate on 31st March 2020 and the new sub contract would commence on 1st April 2020.

Alternative options considered:

Option 1 -
Option 2 -
Option 3 -

Publication date: 02/03/2020

Date of decision: 19/02/2020