Agenda item

To consider the report of the Deputy Chief Executive on the proposed Final Business Case and arrangements under the Council’s Independent Living PFI Project to secure the building and maintenance of 75 properties with 343 bed spaces in the form of new independent living accommodation for adults with learning disability and mental health needs.

Appendix 1 to this report is designated as exempt under Access to Information Procedure Rule 10.4 (3).

The Deputy Chief Executive submitted a report on the proposed Final Business Case and arrangements under the Council’s Independent Living PFI Project (‘the Project’) to secure the building and maintenance of 75 properties with 343 bed spaces in the form of new independent living accommodation for adults with learning disability and mental health needs.

Following consideration of appendix 1 to the report designated as exempt under Access to Information Procedure Rule 10.4(3), which was considered in private at the conclusion of the meeting it was

RESOLVED –

(a)  That approval be given to the submission of the Final Business Case to the Department for Communities and Local Government (DCLG), Department for Health (DoH) and the Department for Children, Schools and Families (DCSF).

(b)  That the submission of this report and subsequent minutes to DCLG, DoH and DCSF be approved.

(c)  That the financial implications for the Council of entering into the Project be approved and that the maximum affordability ceiling for the City Council of £5,113,000 as set out in appendix 1 to the report be agreed.

(d)  That approval be given to the arrangements to Financial Close and 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 by the Leeds Independent Living Accommodation Company Consortium (LiLAC); and in connection therewith the Deputy Chief Executive (or in his absence the Director of Resources) be authorised to give final approval to the completion of the Project, including (but not by way of limitation) the terms of the following:

  i  The Project Agreement

  ii  The Funders Direct Agreement

  iii  The Pensions Admission Agreement

iv  Arrangements to appoint an independent certifier to assess the quality of the contractors’ work

v  Appropriate collateral warranties

together with any other documentation ancillary or additional to the above necessary for the completion of the Project (‘Project Documents’) subject to

  (A)  DCLG, DoH and DCSF approval of the Final Business Case

(B)  The Deputy Chief Executive (or in his absence the Director of Resources) being satisfied that the Project remains within the affordability constraint set out in (b) above.

(C)  Receipt of a report satisfactory to the Deputy Chief Executive (or in his absence the Director of Resources) from the Council’s external legal advisers, as described in paragraph 5.4 of the report

(D)  The Director of Resources (or in his absence the Chief Officer – Financial Management’s) assessment on the balance sheet treatment in relation to the PFI contract.

(e)  That the Director of Resources, as the statutory officer under section 151 of the Local  Government Act 1972, or in his absence the Chief Officer – Financial Management, be authorised to sign any necessary certificates under the Local Government (Contracts) Act 1997 in relation to the Project

(f)  That, in respect of certification under (e) above and subject to the advice of the Assistant Chief Executive (Corporate Governance), a contractual indemnity be provided to the Director of Resources (or the Chief Officer – Financial Management as appropriate) in respect of any personal liabilities arising from the certification.

(g)  That approval be given to the execution of the Project Documents, by affixing the Council’s common seal and / or signature (in accordance with Articles 14.4 and 14.5 of  Part 2 of the City Council’s Constitution) and that the Assistant Chief Executive (Corporate Governance) (or any other officer of the Council authorised by her) take any necessary further action to complete the Project including any final amendments to the Project Documents and give effect to Members’ resolutions and delegated decisions referred to in these recommendations.

(h)  That a further report be brought to this Board following completion of the affordability analysis of the Children’s element of the PFI Project.