Issue - meetings

To receive an update on the application for funding for the Round 5 Extra Care Housing PFI and consider the future of Joint Extra Care Housing Management Board.

Consideration was given to a report which detailed the position with the application for funding for Round 5 Extra Care Housing PFI.

On 22 November 2010 the Department for Communities and Local Government (DCLG) and the Homes and Communities Agency (HCA) had announced the withdrawal of funding support for PFI pipeline projects and stated that they were not able to offer continued support for the Round 5 Extra Care Housing Project.  It was also stated that the HCA would work with Authorities to consider future options.

Cheshire East Council and Cheshire West and Chester Council had incurred considerable costs in the development of the Outline Business Case and provision of information for the HCA.  The costs were currently estimated at £400k and would be shared 50/50 between both Councils.  Discussions were ongoing with the HCA with regard to these costs.  It was agreed that the Board would write to the HCA, outlining their concerns about the withdrawal of the financial support.

The future role of the Joint Extra Care Housing Management Board was discussed and it was agreed that the Board should meet in 6 months time to receive a report on the progress with the Round 3 Extra Care Housing Scheme.

The contracts for the Round 3 Scheme were held jointly and severally by Cheshire East Council and Cheshire West and Chester Council.  Serving the contracts was not an option as it would constitute a substantial change to the terms and conditions and could be open to challenge under the Public Contracts Regulations 2006.  In order to facilitate the efficient management of Round 3 Schemes it was agreed that an Inter Authority Agreement be drawn up. 

RESOLVED:

1          The withdrawal of funding for the Round 5 Extra Care Housing Project be noted and a letter be sent to the HCA.

2          The Joint Extra Care Housing Management Board to meet in 6 months time and the current terms of reference be updated.

3          An Inter Authority Agreement to cover the management of the Round 3 PFI Scheme be agreed and entered into by the respective Councils.