Agenda and decisions

To approve the minutes of the meeting held on the 23 July 2019.

Lead Member for Adult Services, Health and Wellbeing.

Salford City Council - Record of Decision (CABINET)

I, Paula Boshell, Statutory Deputy City Mayor, in consultation with the Cabinet and in exercise of the powers contained within the City Council constitution do hereby:

• Notes the contents of this report and the progress being made to deliver the IMCU project.
• Approve the allocation of up to £10.4Million (The original budget estimate) to deliver the IMCU, subject to the detailed supporting and financial information as set out within the report.
• Approve officers proceeding with a procurement exercise to secure an appropriate contractor to deliver the IMCU.
• Approve the provisionally agreed Heads of Terms for the lease of the Intermediate Care Unit to Salford Royal Foundation Trust (SRFT) the main element of which is that the costs of capital borrowing costs of up to £10.4Million, are recovered through the ICO pooled budget over a lease term of 25 years.
• Note that if approved it is recommended that the Council procure a construction/cost management expert to oversee the construction of the IMCU and the approval of payments to the contractor. It is estimated this will cost in the order of £100,000 and will be a cost to the project and included within the lease repayment arrangements. 
• That progress with the delivery of the IMCU and all associated matters be the subject of regular update reports to City Issues meetings.

The Reasons are:- Approval to the recommendations in this report will allow the project to be progressed and a suitable construction partner to be procured, which will allow confirmation of a start on site and completion date for the IMCU. It will also assist in delivering Council priorities in the following areas-

Adult Social Care, Integrated Care, Integrated Commissioning, Personalisation

Options considered and rejected were -To not fund the proposed new intermediate care Unit or to maintain /enhance the existing facility at the Limes

Assessment of Risk - Low

The source of funding is - The capital cost of the preferred option was estimated at a maximum of £10.4m which would be met by Council borrowing funded through repayments by the Pooled Budget with the Council receiving annual repayments to cover the full cost of borrowing (i.e. loan repayments and interest) over the 25 year lease term.  This will be cost neutral from a Council perspective in terms of borrowing.

Legal Advice obtained - Tony Hatton, Principal Solicitor, tel. 219 6323

When commissioning contracts for the procurement of goods, services or the execution of works, the Council must comply with the Public Contracts Regulations 2015 (PCR) and its own Contractual Standing Orders (CSO’s), failing which a contract may be subject to legal challenge from an aggrieved provider. CSO’s stipulate that where a suitable framework exists, this must be used unless there is an auditable reason not to do so.

The report sets out the Council’s intention to go out to tender in accordance with OJEU rules, and CSO’s. In following the procedures, any potential challenge to the award of a contract to a  ...  view the full decision text for item 4.