Agenda item

B Report of the Director of Housing Services

1.      The outcome of the Expression of Interest is noted

2.      The Director of Housing is authorised to commence a procurement exercise for external advisors to assist the Council over the coming period through to the award of contracts to deliver the PFI Scheme.

3.      It is noted that the original advisors (Public Private Partnership Programme (“4Ps”), EDAW, Grant Thornton, and Potter Raper) who supported the first bid have been retained to assist in revising the bid for Homes and Communities Agency (“HCA”) approval following the reduced funding received from Communities and Local Government (“CLG”).

4.      The costs of the additional work referred to in 2.3 above may not be contained within the existing budget allocation for 2009/10 and so authority has been given for an additional £100,000 to be transferred from the HRA Earmarked repairs Reserve to the PFI Earmarked Reserve in order to expedite this exercise.

5.      It is noted that a further update on the revised proposal will be given at a future meeting of Cabinet.

The Chair, Councillor Woods, informed Cabinet that although this items was a key decision, it had not been on the Forward Plan.  However, he had been given authority from Councillor Malpas, as the relevant Chair of Overview and Scrutiny to make the decision at this meeting.

Councillor Davies addressed Cabinet explaining that although he had problems with the principle of PFI, there had been some successful schemes so he advised Cabinet to take advantage of whatever money the Government offered in order to make sure all tenants had decent homes.  He was disappointed that more estates could not benefit and stressed the importance of full consultation with the public.  He was particularly concerned that the issue of family homes be addressed as he felt that there were already more than enough flats in the town.

As Portfolio Holder for Housing. Councillor Beardsworth addressed some of the points that had been raised by the public and councillor addresses.  She made it clear that PFI funding was not a loan but cash to pay for improvements over a 30-year period.  She congratulated officers for their success in making Northampton Borough Council one of only ten councils in the country to benefit from the funding. Residents were already being consulted and although the money was not as much as originally anticipated, it was still good news.

Councillor Woods commented that more properties would now be brought up to standard and there was opportunity for improvement in the mix of housing stock to create more family homes.  There was still a need for further plans for other homes and estates outside the current proposal.    It was important that the choice of estate was made quickly so that people’s minds could be put at rest.

Councillor Perkins advised some caution as no definite plans could be made until the exact figures were available.  Councillors accepted that not all problems could be solved but that to do nothing was not an option.  Whatever people’s views were on PFI, it had to be considered as a means of securing funding for housing improvements even though it would be seven years before any work was done.

Councillor Woods requested that Cabinet’s appreciation of the work carried out by officers be noted and conveyed to the team.

RESOLVED

That Cabinet:

1.      Note the outcome of the Expression of Interest

2.      Authorise the Director of Housing to commence a procurement exercise for external advisors to assist the Council over the coming period through to the award of contracts to deliver the PFI Scheme.

3.      Note that the original advisors (Public Private Partnership Programme (“4Ps”), EDAW, Grant Thornton, and Potter Raper) who supported the first bid have been retained to assist in revising the bid for Homes and Communities Agency (“HCA”) approval following the reduced funding received from Communities and Local Government (“CLG”).

4.      The costs of the additional work referred to in 2.3 above may not be contained within the existing budget allocation for 2009/10 and Cabinet is therefore requested to authorise an additional £100,000 being transferred from the HRA Earmarked repairs Reserve to the PFI Earmarked Reserve in order to expedite this exercise.

5.      Note that a further update on the revised proposal will be given at a future meeting of Cabinet.