Recreational, cultural and sporting services

Tender description

A variation to an existing Contract for the management of two sports and leisure facilities within the district of the Council. Under the existing Contract, the Council pays to the contractor an annual management fee less a proportion of the total income collected by the Contractor for the services delivered under the contact. The Council intends to amend the management fee arrangements so that the Contractor will pay to the Council an annual sum (with provision for any excess surplus over an agreed level to be shared between the Council and the Contractor) in return for its right to manage the sports and leisure facilities. This therefore represents an improved financial deal for the Council. Minor amendments will be made to the payment provisions including the incorporation of the surplus share mechanism. The varied Contract will include a mechanisms to enable future investment in the facilities. The duration of the contract will be extended from the existing 15 years to 21 years (i.e. until 2027). The contractor will be permitted to subcontract to Legacy Leisure Limited (in order to gain the benefit of VAT exemptions).