Agenda item

To consider the report of the Deputy Chief Executive on the proposed Final Business Case and arrangements to secure the provision of a new school for West Leeds and Wortley under Phase 2 of the Council’s Wave 1 of the Building Schools for the Future programme financed through the Government’s Private Finance Initiative.

Appendices 1 and 2 to this report are 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 to secure the provision of a new school for West Leeds and Wortley (‘the Project’) under  Phase 2 of the Council’s Wave 1 of the Building Schools for the Future programme financed through the Government’s Private Finance Initiative.

It was reported at the meeting that approval of the Outline Business Case was still awaited.

Following consideration of appendices 1 and 2 to the report designated as exempt under Access to Information Procedure Rule10.4(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 Children, Schools and Families and to Partnerships for Schools. The Final Business Case covers the new school for West Leeds and Wortley, as part of Phase 2 of the City Council’s BSF Wave 1 programme financed through the Government’s Private Finance Initiative.

(b)  That approval be given to the financial implications for the Council of entering into the Project and that the maximum affordability ceiling for the City Council in relation to the PFI contract of £3,973,000 as set out in Appendix 1 to the report, be agreed.

(c)  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 under terms agreed between the City Council and the Leeds Local Education Partnership (LEP); and in connection therewith, the Deputy Chief Executive (or in  his absence the Director of Resources) be authorised to make any necessary amendments to the Final Business Case, and 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 and

  vi  Governing body agreement with the Temporary Governing Body of the new school for West Leeds and Wortley

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

  (A)  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 constraints set out in Appendix 1 to the report

  (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 as set out in paragraph 4 of Appendix 1 to the report

(d)  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.

(e)  That, in respect of certification under (d) 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.

(f)  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 to approve 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 to give effect to Members’ resolutions and the delegated decisions referred to in the recommendations of the report.

(g)  That the Chair of the Education PFI/BSF Project Board (in consultation with the Director of Resources and the Assistant Chief Executive (Corporate Governance) be authorised to:

  (i)  authorise preparation, mobilisation and enabling works to be carried out in advance of 1^st March on appropriate terms

  (ii)  subject to being satisfied that the risks of such an approach are appropriate, authorise terms to enable early works on site to be commenced in advance of financial close.

(h)  That a further report be brought to the Board providing general information on the demographic calculations used for the determination of future pupil numbers.

(This decision was exempt from Call In by reasons of urgency as detailed in paragraphs 2.6 and 2.7 of the report)