Agenda item
Housing and social care non HRA PFI authority to award phase 2 of contract
The Housing and Social Care PFI was developed to provide social housing and replacement residential facilities for people with learning disabilities with the aid of a government grant. Approval is now sought for the next phase of the contract.
Decision:
(i) that the progress on delivery of Phase 1 of the scheme in paragraphs 3.3 to 3.5 of the report from the Director of Housing and Community Care be noted;
(ii) that approval be given to the revised total of 165 units at Phase 2 of the scheme – taking total units for Phase 1 and Phase 2 to 384 – as set out in paragraph 4.6 of the Director’s report;
(iii) that authority be delegated to the Director of Housing and Community Care, in consultation with the Director of Finance and Corporate Resources and the Borough Solicitor, to agree the variation to the PFI Project Agreement and all other related documents including those which shall be entered into by the Council with any of Brent Co-Efficient's funders or subcontractors, in order to enable financial close on Phase 2 of the project;
(iv) that the Borough Solicitor, or a delegate on her behalf, be authorised, to execute all of the legal agreements, contracts and other documents on behalf of the Council in relation to Phase 2 of this project (and such other legal agreements and documentation which may be necessary to give full effect to the variation to the PFI Contract), subject to her receiving confirmation of credit approval from the Department for Communities and Local Government or, executing such contracts and other documentation with a pre-condition that they shall only come into full effect upon the issuing of such PFI credit approval by the CLG;
(v) that the Director of Finance and Corporate Resources can issue, on behalf of the Council, such certificate or certificates under the Local Government (Contracts) Act 1997 in respect of:
a. the Deed of Amendment to give effect to the variations to the PFI Project Agreement;
b. the Direct Agreement Amendment Deed to give effect to the variations to the Direct Agreement entered into between the Council, the funders and Brent Co-Efficient; and
c. the Residual Value Amendment Deed to give effect to the revised Residual Value Deed to be entered into between the Council, Hyde Housing Association and the funders;
(vi) that the Director of Finance and Corporate Resources will be fully indemnified by the Council in the event of any claim against him arising from the provision of any Certificate he may issue in accordance with recommendations/decisions in (v) above;
(vii) that the Director of Finance and Corporate Resources can issue, on behalf of the Council, a Certificate under the Local Government (Contracts) Act 1997 in respect of the Procurement Deed to be entered into between the Council, Brent Co-Efficient and Hyde Housing Associaton;
(viii) that the Director of Finance and Corporate Resources will be fully indemnified by the Council in the event of any claim against him arising from the provision of any certificate he may issue in accordance with recommendation/decision in (vii) above.
Minutes:
The report from the Director of Housing and Community Care reminded the Executive that financial close on Phase 1 of the Housing and Social Care PFI project was reached in December 2008. This included the provision of 195 housing units and 20 units for people with learning disabilities. The project was developed to provide social housing and replacement residential facilities for people with learning disabilities with the aid of a government grant. Since December 2008, there have been negotiations on the provision of further housing units as part of Phase 2 of the scheme. Changes to interest rates and bank margins since December 2008 have required measures to be taken, as part of these negotiations, to ensure Phase 2 of the scheme remains affordable. One of these measures was a reduction in the number of planned units for Phase 2 from 185 reported previously to 169, reducing total units for both phases of the scheme from 400 to 384. Financial close on Phase 2 was scheduled for 31 March 2010.
Circulated in advance of the meeting was a supplementary report advising that the funders have requested that an additional Contract Act Certificate be given in respect of the proposed Procurement Deed and the Executive was therefore also asked to agree additional recommendations. The Executive also had before them an appendix to the report which was not for publication as it contained the following category of exempt information as specified in Schedule 12 of the Local Government (Access to Information Act) 1972:
i) Information relating to the financial or business affairs of any particular person (including the authority holding that information);
ii) Information in respect of which a claim to legal professional privilege could be maintained in legal proceedings;
and the public interest in maintaining the exemption outweighs the public interest in disclosing the information.
RESOLVED:-
(i) that the progress on delivery of Phase 1 of the scheme in paragraphs 3.3 to 3.5 of the report from the Director of Housing and Community Care be noted;
(ii) that approval be given to the revised total of 165 units at Phase 2 of the scheme – taking total units for Phase 1 and Phase 2 to 384 – as set out in paragraph 4.6 of the Director’s report;
(iii) that authority be delegated to the Director of Housing and Community Care, in consultation with the Director of Finance and Corporate Resources and the Borough Solicitor, to agree the variation to the PFI Project Agreement and all other related documents including those which shall be entered into by the Council with any of Brent Co-Efficient's funders or subcontractors, in order to enable financial close on Phase 2 of the project;
(iv) that the Borough Solicitor, or a delegate on her behalf, be authorised, to execute all of the legal agreements, contracts and other documents on behalf of the Council in relation to Phase 2 of this project (and such other legal agreements and documentation which may be necessary to give full effect to the variation to the PFI Contract), subject to her receiving confirmation of credit approval from the Department for Communities and Local Government or, executing such contracts and other documentation with a pre-condition that they shall only come into full effect upon the issuing of such PFI credit approval by the CLG;
(v) that the Director of Finance and Corporate Resources can issue, on behalf of the Council, such certificate or certificates under the Local Government (Contracts) Act 1997 in respect of:
a. the Deed of Amendment to give effect to the variations to the PFI Project Agreement;
b. the Direct Agreement Amendment Deed to give effect to the variations to the Direct Agreement entered into between the Council, the funders and Brent Co-Efficient; and
c. the Residual Value Amendment Deed to give effect to the revised Residual Value Deed to be entered into between the Council, Hyde Housing Association and the funders;
(vi) that the Director of Finance and Corporate Resources will be fully indemnified by the Council in the event of any claim against him arising from the provision of any Certificate he may issue in accordance with recommendations/decisions in (v) above;
(vii) that the Director of Finance and Corporate Resources can issue, on behalf of the Council, a Certificate under the Local Government (Contracts) Act 1997 in respect of the Procurement Deed to be entered into between the Council, Brent Co-Efficient and Hyde Housing Associaton;
(viii) that the Director of Finance and Corporate Resources will be fully indemnified by the Council in the event of any claim against him arising from the provision of any certificate he may issue in accordance with recommendation/decision in (vii) above.
Supporting documents:
- H&CC Hsg & Social Care PFI, item 17. PDF 191 KB
- Restricted enclosure View the reasons why document 17./2 is restricted