Agenda item

            The Board considered a report of the Strategic Director, Children and Young People which detailed the Outline Business Case (OBC) and sought approval for the submission of the OBC to the DCSF by 22 April 2009.

 

            It was reported that Halton submitted its Strategy for Change Part 1 in July 2008, which had now been agreed.  The Strategy for Change Part 2 was submitted on 19 November 2008.  It was noted that conditional approval was granted on the basis that additional information was provided by 27 February 2009 and the Authority was given permission to develop its OBCase.  It was reported that notification had now been received which confirmed that the outstanding requirements from Strategy for Change Part 2 had now been met.

 

            The Board was advised that the OBC consisted of the following key sections plus associated appendices:

 

• executive summary;
• background;
• the project within the programme;
• value for money;
• affordability;
• readiness to deliver; and
• managing change.

 

Explanations of each section were set out in the report for Members’ consideration.

 

It was reported that the current Funding Allocation Model adjusted for Private Finance Initiative (PFI) credits was £175 million.  Members were advised that this figure would cover the costs of Halton’s BSF Programme.

 

It was noted that the estimated costs to deliver ICT solution for the BSF Programme was £23.5 million and included a 0.5 million contingency.  The available funding was a combination of the BSF funding and a contribution of £200 per secondary pupil per annum, which would be secured for each secondary pupil.

 

It was reported that for the OBC cases the authority must also confirm that sufficient resources were available to meet the procurement and BSF team costs.  It was noted that the total resources available would meet the £4 million requirement for the Authority. 

 

In addition the Board was informed that revenue affordability of the Programme must be confirmed at OBC and in the Halton BSF Programme the building programme was being supported produced in two ways; through PFI where there was more than 70% new build and through the conventional funding solution for Design and Build.

 

Detailed in the report was a table that set out all the additional contributions which would be made to the BSF Programme.  It was noted that the one off (single) contributions had been used to reduce the ongoing annual costs of the PFI schools.  In addition, the funding to reduce the annual affordability gap had been identified.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

 

The Board considered the affordability section and noted the four key issues as follows;

 

·        is the capital expenditure affordable?

·        are revenue consequences affordable?

·        are the costs of the team affordable? and

·        are the costs of IT affordable?

 

Members were advised all the key issues above were affordable based on the model outlined in the report.

 

Arising from discussion Members requested that a breakdown of costs and plans of each site be circulated and presented in the near future.

 

 

REASON FOR DECISION

The Outline Business Case must be completed as part of the BSF Programme.

 

ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

Not applicable

 

IMPLEMENTATION DATE

The Outline Business Case must be submitted to the DCSF and PfS by 22^nd April 2009.

 

RESOLVED: That

 

 

1)     The Executive Board note the progress made in the development of the Outline Business Case due for submission on 22^nd April 2009;

 

 

2)     The Executive Board delegate responsibility to make any changes to the BSF Outline Business Case to the Chief Executive in consultation with the Leader of the Council, Member for Children and Young People, Operational Director Financial Services and Operational Director Legal, Organisational Development and Human Resources;

 

3)     The Executive Board requests the Strategic Director for Children and Young People to submit the Final Outline Business Case to the Department for Children Schools and Families in the form agreed by the Chief Executive in consultation with the Leader of the Council Member for Children and Young People, Operational Director Financial Services and Operational Director Legal, Organisational Development and Human Resources; and

 

1)     The Executive Board request a full report on the outcome of the DCSF assessment of the Outline Business Case in June / July 2009.