Agenda item
Update on Building Schools for the Future Programme including authorisation to issue LGCA Certificates, in connection with the Deed of Variation, to the PFI contract (CAB 031/112).
Decision:
Reasons for Special Circumstances and Urgency Agreed.
Decision
1. That the contents of the report (CAB 031/112), to reaffirm the decisions duly authorised at the January Cabinet (the latter set out at paragraph 6.1), be noted;
2. That the issuance of LGCA certificates to authenticate the Deed of Variation to the PFI contract and the Funders Direct Agreement in the forms provided at Appendix 1 and Appendix 2 to the report (CAB 031/112) be authorised and the Monitoring Officer be authorised to make any final amends to these certificates; and
3. That subject to exceptions set out in the report (CAB 031/112), the Section 151 Officer (Corporate Director of Resources) be indemnified against any claims made whatsoever against him (including costs incurred by and awarded against him) and will not itself make claims against him for any loss or damage occasioned by act, error or omission committed by such officer in the course of any work undertaken preceding as well as for the purpose of the act of certification (whether or not necessarily undertaken in order to certify the contract) and generally in connection with the signing of such certificates or documents as are referred to in decision 2. above. The indemnity will not extend to loss or damage directly or indirectly caused by or arising from the following, fraud, dishonesty or a criminal offence committed by the indemnified person.
Action by:
CORPORATE DIRECTOR DEVELOPMENT AND RENEWAL (A. DALVI)
Service Head Building Schools for the Future Development and Renewal Directorate (A. Sutcliffe)
Minutes:
Special Circumstances and Reasons for Urgency
The Mayor informed members of the Cabinet that the special circumstances and reasons for urgency associated with the proposals were detailed on the front page of the report. The Mayor subsequently agreed the special circumstances and reasons for urgency, as set out on the front page of the report, and also set out below:
“The Authority intends to enter into the Deed of Variation to allow the LEP to refurbish and build new facilities for four schools that are part of the existing PFI contract. Through their due diligence, Lenders have made clear that they require the Authority to provide them with fresh LGCA certificates to authenticate the contracts. The issuance of such certificates requires Cabinet approval.
The Authority intends to sign the Deed of Variation in the first week of August in order to maintain the programme for the delivery of the BSF schools. If Cabinet does not approve the assurance of LGCA certificates, then Lenders will refuse to consent to the variation.”
Ms Cattermole, Acting Corporate Director Children, Schools and Families, at the request of the Mayor, in introducing the report, summarised the key points contained therein.
Ms Freeman, Assistant Chief Executive (Legal Services), advised that cross references, to paragraphs in the body of the report, contained in recommendations 2.1 and 2.3 were currently incorrect, and should the recommendations be agreed the decision would need to reflect their correction.
The Mayor, taking account of the advice of theAssistant Chief Executive (Legal Services), agreed the following:
Decision
1. That the contents of the report (CAB 031/112), to reaffirm the decisions duly authorised at the January Cabinet (the latter set out at paragraph 6.1), be noted;
2. That the issuance of LGCA certificates to authenticate the Deed of Variation to the PFI contract and the Funders Direct Agreement in the forms provided at Appendix 1 and Appendix 2 to the report (CAB 031/112) be authorised and the Monitoring Officer be authorised to make any final amends to these certificates; and
3. That subject to exceptions set out in the report (CAB 031/112), the Section 151 Officer (Corporate Director of Resources) be indemnified against any claims made whatsoever against him (including costs incurred by and awarded against him) and will not itself make claims against him for any loss or damage occasioned by act, error or omission committed by such officer in the course of any work undertaken preceding as well as for the purpose of the act of certification (whether or not necessarily undertaken in order to certify the contract) and generally in connection with the signing of such certificates or documents as are referred to in decision 2. above. The indemnity will not extend to loss or damage directly or indirectly caused by or arising from the following, fraud, dishonesty or a criminal offence committed by the indemnified person.
Reasons for Decisions
These are detailed in paragraph 3.1 of the report (CAB 031/112)
Alternative Options Considered
These are detailed in paragraph 4.1 of the report (CAB 031/112)
Supporting documents:
- Update on BSF Programme, item 7.2 PDF 100 KB
- Update on BSF Programme Appx 1, item 7.2 PDF 74 KB
- Update on BSF Programme Appx 2, item 7.2 PDF 102 KB
- Update on BSF Programme Appx 3, item 7.2 PDF 75 KB
- Update on BSF Programme Appx 4, item 7.2 PDF 94 KB