This meeting was scheduled to discuss whether to vary the terms of an existing contract with Greenwich Leisure Limited to manage Hackney's leisure centres and to extend the contract by five years, to 2034.

Contract variation and extension

The meeting was scheduled to consider a proposal to change the way that [Hackney's][1] leisure centres are managed.

Currently, the centres are managed under a contract by Greenwich Leisure Limited (GLL). Under the terms of the contract, GLL is responsible for all aspects of the management of the centres, including staffing, programming and maintenance.

The council was scheduled to consider varying the contract so that GLL would operate the centres as an agent of the council, rather than as a principal. Under this arrangement, GLL would continue to manage the centres on a day-to-day basis, but the council would be responsible for all financial matters, such as setting prices and collecting income.

The proposed Options transfer most of the financial risk of generating surpluses to GLL and provide an assurance to the Council that proposed savings from the Contract will be achieved. The Council still benefits should significant surpluses be generated via the existing surplus share mechanism.

(Paragraph 5.1.6 of the report)

The meeting was also scheduled to consider whether to extend the term of the contract with GLL for a further five years, from 2029 to 2034.

The council report scheduled for consideration by the meeting states that there are a number of benefits to the council of varying the contract and extending its term. These include:

• Guaranteed annual savings
• Continuity of service
• Reduced financial risk

The report scheduled for consideration also states that there are a number of risks associated with varying and extending the contract. These include:

• The risk of a legal challenge from GLL
• The risk that GLL may not be able to meet the terms of the new contract
• The risk that the council may not be able to manage the centres effectively under the new arrangement