Agenda item

To consider a report seeking approval to submit the Final Business Case regarding Holt Park Wellbeing Centre to the Department of Health for approval.

Appendices to this report are designated as exempt under Access to Information Procedure Rule 10.4(3).

Further to Minute No. 189, 12^th February 2010, the Directors of Resources, City Development and Adult Social Services submitted a joint report providing an update on the Holt Park Wellbeing Centre project, and which sought the necessary approvals to facilitate the submission of the Final Business Case (FBC) to the Department of Health and the execution of the project’s contract documentation.

With the Chair’s agreement, an updated set of recommendations for this item were circulated at the commencement of the meeting. The recommendations had been revised in response to the recent announcement by the Government that the Holt Park Wellbeing Centre was one of a number of projects to be suspended pending the Government’s Comprehensive Spending Review.

Following consideration of the appendices to the report, designated as exempt under Access to Information Procedure Rule 10.4(3) which were considered in private at the conclusion of the meeting, it was

RESOLVED –

(a)  That the contents of the submitted report be noted.

(b)  That the final scope of the Holt Park Wellbeing Centre Project (Project), as set out in the submitted report, be noted and confirmed.

(c)  That the submission of the FBC to the Department of Health be approved and that the Director of City Development be authorised to make any necessary amendments to the FBC. (The Final Business Case covers the Holt Park Wellbeing Centre Project financed through the Government’s Private Finance Initiative).

(d)  That the demolition of the existing leisure centre in advance of opening the new Wellbeing Centre, subject to further consultation once the outcome of the spending review is known, be approved in principle.

(e)  That approval be given to the financial implications for the Council of entering into the Project, and agreement be given to the maximum affordability ceiling for the Council in relation to the PFI of £2,428,000 in the first full year of service commencement (2012/13), as set out in exempt Appendix 1 to the submitted report, but subject to resolution (i) (below), should the SWAP rate exceed 5.00%.

(f)  That the balance sheet treatment for the Project be noted.

(g)  That it be noted that the project is one of a number suspended as part of the Government’s Comprehensive Spending Review, but that the Department of Health review of, and the Council input into the FBC continue (together with the progress with the Leeds Local Education Partnership (LEP) of any significant outstanding matters on the new project approval process which impact upon the process for the approval of the FBC).

(h)  That, whilst noting the financial close cannot take place until and unless the Government confirms the availability of PFI Credits and the FBC approval, approval be given to the arrangements for Financial Close and the implementation of the Project to include (but not by way of limitation) the award/entry into a PFI Project Agreement to a special purpose company to be established under terms agreed between the City Council and the LEP, and

in connection therewith, the arrangements at paragraph 5.4 of the submitted report be confirmed, and (for the avoidance of doubt) authorisation be given to the exercising of delegated powers (as set out at Part 3 Section 3E of the Constitution in relation to PPP/PFI and other Major Property and Infrastructure Related projects), in relation to this Project, by the Director of City Development (or delegee) in consultation with the Director of Adult Social Care (or delegee).

(i)  That authority be delegated to the Director of City Development, or her nominee, to approve the completion of the project should the SWAP rate exceed 5.00% but be less than 5.50% at the time of Financial Close up to a maximum affordability ceiling of £2,500,000 in 2012/13 terms.