Issue - meetings

Housing PFI - Agreement to Enter into Contract

Meeting: 22/06/2010 - Cabinet (Item 110)

Housing PFI - Agreement to Enter into Contract

Confidential report by the Corporate Director, Neighbourhood and Planning.

Minutes:

Cllr John Brady, Cabinet member for Economic Development, Planning and Housing presented a confidential report which sought approval to conclude negotiations and enter into a contract with Silbury Housing Ltd to provide 350 homes. The homes would be delivered on a phased basis with 242 homes being delivered in Phase 1 and the balance in Phase 2. If approved, it was proposed to sign the contract by the end of July 2010 and start building later in the year. It was noted that delivery of this project was a major contribution to meeting Local Area Agreement targets.

 

Cllr Brady explained that there had been close contact with scrutiny through the Environment Select Committee which had been supportive of the project. Cllr Brady offered to attend a future meeting of the Environment Select Committee should it require any further explanation of the project.

 

Cabinet considered various confidential appendices relating to value for money, affordability and the views of Internal Audit.

 

The Solicitor to the Council presented and explained preliminary advice from Counsel which had been sought on certain aspects of the project.  The Council’s PFI Project Manager also reported on the project and answered Councillors’ questions.

 

The Leader requested that she and Cllr Fleur de Rhe Phillipe as the Cabinet member for Finance, Performance and Risk be consulted in addition to the Cabinet member for Economic Development, Planning and Housing in progressing the project.

 

After careful consideration it was unanimously

 

Resolved:

 

That Cabinet:

 

a)     notes the contents of this report as to the current position reached in negotiations in respect of the proposed private finance initiative (PFI) transaction in respect of 350 homes in total on a phased basis where 242 homes are to be provided in Phase 1 and the balance in Phase 2;

 

b)     notes the cost of the project as laid out in the Financial Implications section of the report and the project is both affordable and provides Value for Money;

 

c)     notes the maximum anticipated PFI credit is £83m;

 

d)     accepts that as a result of the transaction the Council will make an annual index linked revenue contribution to the scheme of approximately £220,000 at current prices for 30 years for Phase 1 and an additional £150,000 annual contribution may be required for Phase 2;

 

e)     authorises the Director of Resources and Director of Neighbourhood and Planning after consultation with the Cabinet Member for Economic Development, Planning and Housing, the Leader of the Council and the Cabinet member for Finance, Performance and Risk, the Chief Finance Officer and the Solicitor to the Council, to conclude negotiations on and agree all project documentation relating to the PFI transaction and to enter into the PFI Contract and associated agreements on behalf of the Council;

 

f)       require the Director of Resources and Director of Neighbourhood and

planning in consultation with the Cabinet Member for Economic Development, Planning and Housing, the Leader of the Council and the Cabinet member for Finance, Performance and Risk and the Solicitor to the Council to  ...  view the full minutes text for item 110