Agenda item

Councillor Dempster submits a report.

Councillor Dempster submitted a report that updated the Cabinet on the progress towards financial close.  A schedule of issues that need to be resolved before reaching financial close was circulated.

RESOLVED:

(1)That the current position on phase 1 of the BSF programme be noted, in particular the benefits to the Council, the risks and the outstanding issues remaining to be resolved before contracts are signed;

(2)That the Town Clerk, in consultation with the Leader, the Cabinet Lead for Children’s Services, the Corporate Director of Children’s Services and the Chief Finance Officer, and subject to the conditions in the Approvals List schedule circulated at the meeting, be authorised to enter into the following agreements for phase 1 (and to make any subsequent consequential amendments):

a)A Strategic Partnering Agreement to create a 10 year strategic partnership with the Miller Consortium through the contractual framework of a Local Education Partnership.

b)A Shareholders Agreement to take a minority (10%) stake in the Local Education Partnership.

c)A Shareholders Agreement to establish a PFI Company and holding company for the purposes of the PFI Project Agreement.

d)A 25 year PFI agreement to cover the design, build, finance and operation of the new Judgemeadow and Soar Valley schools.

e)Design and build contracts for the construction of Beaumont Leys and the rebuild/refurbishment of Fullhurst.

f)A facilities management agreement to provide caretaking and cleaning maintenance services to the schools delivered through design and build contracts.

g)A 5 year ICT managed service contract, with the option to extend for a further 5 years;

h)The other related agreements referred to in the legal implications section of the report.

i)All related notices, authorities and approvals.

(3)that for the purposes of the PFI Project Agreement, the Funders Direct Agreement, the ICT Services Contract and the Strategic Partnering Agreement, the  certificate under section 3 of the LGCA (that states that the contract is lawful and for discharge provisions should the contract be held to be unlawful by the courts) be given by the Town Clerk, and that the Town Clerk be indemnified for this purpose as set out in the Cabinet Resolution of 15 May 2006 as amended in this present meeting.

(4)that it be noted that the Council on 31 May 2007 approved a capital programme provision for Phase 1 of £60.79m, (which only represented building costs), and gave Cabinet delegated authority to increase this subject to being satisfied that the scheme was affordable.

(5)That the capital programme provision be increased to £72.9m (noting that this now includes all elements of the scheme); and that a further £0.5m be added if necessary to meet changes prior to financial close.

(6)That the financing of the capital expenditure be approved as described in the financial implications in the report

(7)that it be noted that Council on 31 May 2007 authorised Cabinet to enter into future commitments on the revenue budget, and that the following additions to the Council’s budget to pay for Phase 1 are affordable and can be approved (or such lesser sum as may be needed at financial close):-

(8)that It be noted that authority to incur costs for the development of later phases, to the extent needed, will be brought to Members as part of the 2008/09 budget process.

(9)That the potential impact on schools’ budgets, the affordability difficulty this may create, and the longer term action proposed to resolve this be noted.

(10)that the following be approved:

a)capitalisation of the development elements of the Council’s client function, to be written down over the life of the project;

(b)investment in a data centre which will benefit all four phases of BSF, noting that £2.0m may be at risk should later phases not proceed (the costs of this being within the capital provision above).

(11) that under the provisions of Cabinet Procedure Rule 12 d, noting the support of a majority of Group Leaders, no call in of this decision be allowed due to the urgency and need to continue on site.