Policy and Strategy Committee

Wednesday 13 November 2002 at 3.30 pm

Present:  Provost Roach, Councillors Blair, Calvert, Jackson, McCabe, McGhee, Mitchell, Morrison (M), O'Rourke, Rebecchi, Robertson (A) and Robertson (Y).

Chair:  Councillor Jackson presided.

In attendance:   Chief Executive, Depute Chief Executive, Director of Education Services, Director of Finance, Director of Legal and Support Services, Head of Personnel Services, Head of Property Services and Managing Solicitor (Committees/Contracts).

926

Remit from Education & Lifelong Learning Committee on Revised Outline Business Case and Financial Implications

926

There were submitted (1) report dated 13 November 2002 by the Director of Legal & Support Services advising that the Education & Lifelong Learning Committee on 13 November 2002 had approved, subject to confirmation by the Inverclyde Council, a revised Outline Business Case for an Inverclyde Schools Public Private Partnership project for submission to the Scottish Executive including recommendations in respect of funding and (2) report dated 6 November 2002 by the Director of Finance (with amended page 6) setting out the financial implications resulting from the project, identifying an alternative option utilising a comparable funding level and outlining the recommendations of the Corporate Management Team in this regard. (Councillor Morrison (M) entered the meeting during consideration of this item of business).

Following discussion Councillor Jackson moved:

(1)      that it be noted that whilst the public sector comparator allowed a view to be formed on the value for money aspect of the procurement mechanism, it was not a true alternative;

(2)      that the alternative proposal to the Public Private Partnership model contained within the report be noted and that it be noted that whilst it could be contained within the financial implications derived from the PPP proposal, it spread the backlog over the next 12 years and modernisation over 11 years thereafter;

(3)      that approval be given to the Option 1 Public Private Partnership project in line with the recommendation of the Corporate Management Team and that the revised funding gap of £4.928 million rising by £140,000 per annum be met from the General Services Capital Programme;

(4)      that Officers be instructed to seek the Scottish Executive’s approval to transfer the further £2.122 million Section 94 consent, rising per annum, for the revised Outline Business Case; and

(5)      that it be noted that significant effort would be expended in investigating other potential funding sources to assist in closing the funding gap and thereby limiting the impact on the Council’s capital consent including the options detailed at paragraph 5.7 of the revised Outline Business Case.

As an amendment, Councillor Mitchell moved that the report be rejected on the grounds that it is based on too many hypothetical presumptions.  On a vote 3 Members voted for the amendment and 9 for the motion which was declared carried.í

Decided:

(1)      that it be noted that whilst the public sector comparator allowed a view to be formed on the value for money aspect of the procurement mechanism, it was not a true alternative;

(2)      that the alternative proposal to the Public Private Partnership model contained within the report be noted and that it be noted that whilst it could be contained within the financial implications derived from the PPP proposal, it spread the backlog over the next 12 years and modernisation over 11 years thereafter;

(3)      that approval be given to the Option 1 Public Private Partnership project in line with the recommendation of the Corporate Management Team and that the revised funding gap of £4.928 million rising by £140,000 per annum be met from the General Services Capital Programme;

(4)      that Officers be instructed to seek the Scottish Executive’s approval to transfer the further £2.122 million Section 94 consent, rising per annum, for the revised Outline Business Case; and

(5)      that it be noted that significant effort would be expended in investigating other potential funding sources to assist in closing the funding gap and thereby limiting the impact on the Council’s capital consent including the options detailed at paragraph 5.7 of the revised Outline Business Case.