Decision details

To note the outcome of negotiations and agree any proposed changes to the PFI contract in response to government changes to housing benefit and social housing rents which are expected to reduce the income to the project over coming year and to agree the revised contractual provisions.

(i)         that the proposed revisions to the Project Agreement (and related documents) as set out in paragraphs 4.1 to 4.15 of this report be noted and authority to agree of the final terms of revision to the Project Agreement (and related documents) contract be delegated to the Strategic Director for Regeneration and Growth in consultation with the Chief Finance Officer and the Borough Solicitor;

(ii)        that authority be authority to the Strategic Director for Regeneration and Growth, in consultation with the Chief Finance Officer and the Borough Solicitor, to agree the variation to the PFI Project Agreement and all other related documents, in order to enable the contract revisions to be properly documented;

(iii)       that the Borough Solicitor, or an authorised delegate acting on her behalf, be authorised to execute all of the legal agreements, contracts and other documents on behalf of the council and such other legal agreements and documentation which may be necessary to give full effect to the variation to the PFI Project Agreement, subject to her receiving confirmation of continuing credit approval from the Department for Communities and Local Government, through the Homes and Communities Agency (HCA) 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 HCA/DCLG;

(iv)       that the Chief Finance Officer can issue, on behalf of the council, such certificate or certificates under the Local Government (Contracts) Act 1997 to:

a.            Brent Co-Efficient in respect of the Deed of Amendment (or such other document) to give effect to the variations to the PFI Project Agreement;

b.            Brent Co-Efficient's funders in respect of any the Direct Agreement Amendment Deed (or such other document) to give effect to the variations to the Direct Agreement entered into between the council, such the funders and Brent Co-Efficient; and

c.            Hyde Housing Association and the Brent Co-Efficient’s funders in respect of a the Residual Value Amendment Deed (or such other document) to give effect to the revised Residual Value Deed to be entered into between the council, Hyde Housing Association and the funders.

(v)        Agree that the Chief Finance Officer 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 (iv) above.