Agenda item

To consider the report of the Director of City Development on the proposed submission of the final business case to the Department of Culture, Media and Sport and proposed injection into the capital programme for the development of off-site highway works at Morley and Armley leisure centres in addition to a multi-use games area at Armley.

Appendices 1 and 2 to this report are designated as exempt under Access to Information Procedure Rule 10.4(3) and will be tabled at the meeting.

The Director of City Development submitted a report on the proposed submission of the final business case to the Department of Culture, Media and Sport and proposed injection into the capital programme for the development of off-site highway works at Morley and Armley leisure centres in addition to a multi-use games area at Armley.

Following consideration of appendices 1 and 2 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 submission of the Final Business Case to the Department for Culture, Media and Sport be approved. The Final Business Case covers the New Leaf Leisure Centres Armley and Morley, as part of the City Council’s BSF Wave1 Programme and 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 to the maximum affordability ceiling for the City Council in relation to the PFI contract of £3,688,000 as set out in Appendix 1 to the report (but subject to paragraph (g) below should the SWAP rate exceed 5.8% at financial close).

(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, grant delegated powers to the Deputy Chief Executive (or in his absence the Director of Resources) to make any necessary amendments to the Final Business Case and given 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.  Arrangements to appoint an independent certifier to assess the quality of the contractors’ work

  iv.  Appropriate collateral warranties and

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

subject to

(A)  DCMS 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 and

(D)  The Director of Resources (or in his absence the Chief Officer – Financial Management) assessment on the balance sheet treatment in   relation to the PFI contract as set out in paragraph 4 of Appendix 1 of 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), 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 the Assistant Chief Executive (Corporate Governance) (or any other officer of the Council authorised by her) taking any necessary further action following the approval of completion of the Project by the Deputy Chief Executive or Director of Resources referred to in (c) above 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 this minute.

(g)  That the chair of the BSF / PFI Project Board or his nominee be authorised to approve the completion of the project should the SWAP rate exceed 5.8% at Financial Close as set out in Appendix 1 to the report

(h)  (i)  That the Project Brief for the off site highway works as presented be approved.

(ii)  That the Highway Scheme Design as presented be approved.

(iii)  That injection of £280,000, into the Capital Programme, funded by £150,000 from Sport England and £ 130,000 from section 278 receipts, be authorised and that transfer of £80,000 from an existing capital programme scheme be agreed, all to fund the off site highway works.

(iv)  That total scheme expenditure of £360,000 be authorised.

(v)  That the funding plan and the procurement plan as presented be approved.