Content

Salford
City Council - Record of Decision
 
I,
Paul Dennett, City Mayor, in consultation with the Cabinet
and in exercise of the powers contained within the City
Council constitution do hereby
approve:
 

Subject to
approval by the Department for Levelling Up Housing and Communities
(DLUHC), the Council executing a series of new and amended PFI
contract documents for the purpose of facilitating additional funds
into the project for the delivery of the further works
programme;

 

Authorisation for
the Council to enter into a deed of variation to the Amended and
Restated Project Agreement (or similar legal agreement to be
agreed) enabling the Private Finance Initiative (PFI) Contractor to
deliver the Councils Building Safety Act duties as set out for the
Accountable Person and Principal Accountable Person for an agreed
annual cost; and

 

Authorisation for the City Solicitor to execute all legal
formalities and documents needed by electronic means if
permitted.

 
The Reasons are
that entering into revised legal agreements will unlock a package
of funding to enable the programme of
required fire safety works to be delivered to the nine blocks
Council owned in Pendleton.
 
Options considered and rejected were:N/A
 
Report Executive Summary:
In
June 2020 the Council agreed to a new financial close alongside a
series of new and amended Private Finance Initiative (PFI) contract
documents.  The main reason for a
further financial close was to recognise the package of fire safety
works to the nine council owned tower blocks in Pendleton and the
associated increase in funding required to deliver these
works. 
 
As
works progressed the extent of remediation required to blocks prior
to installing a new cladding system has been extensive, adding
significant cost and time to the works programme.  To complete the remaining works, it is essential
that further funding is brought into the project.  This funding has been secured subject to all
parties entering into another financial close, which requires a
wide range of new and amended contractual documentation. This
report outlines the key changes to the proposed funding structure
and changes to key commercial and legal positions.
 
Assessment of
Risk:
High
 
Increasing pressure
from Government for landlords to complete any required building
safety work.  Delays in completing the
Further Works programme could lead to an enforcement / prohibition
notice being issued from Greater Manchester Fire and Rescue
Service.
 
Growing
reputational risk as residents have already had to wait a
considerable period to time whilst a funding solution and works
programme were development.
 
Legal Advice
obtained:Addleshaw Goddard (external advisors) / Jason Scott
(Shared Legal Services)
 
The Council has
taken advice throughout the process from external Solicitors and
the Council's in-house legal team. The legal implications are
contained within the body of the report.
 
Whilst the Council
has made several concessions, which would limit the Council's
rights under the original Project Agreement largely in respect of
Contractor Default whilst the Further Works take place, they are
broadly a continuation of the waivers documented in the Claims
Management Agreement and Further Works Agreement agreed in March
2018. They were negotiated and agreed in 2020 and remain in place
in the 2024 documentation.
 
The amendments made
to the Project Agreement are required to reflect the agreed
procurement strategy and to reflect the extension to the Planned
Completion Date (and therefore the Longstop Date). The Council has
agreed to this extension as the priority is for the remedial works
to be carried out for the benefit of the residents.
 
Financial Advice
obtained : David Mills (Strategic Finance
Manager)
 
The finance team have been involved in all
aspects of this project and comments included in the body of the
report.
 
The finance team undertook a review of the
proposals with the use of Dow Schofield Watts as independent
advisors in this matter, and their advice is contained in the
report.
 
Procurement Advice
obtained: N/A
Procurement of the required works will need to be compliant with
the relevant procurement regimes in place for PTOL.  All works are to be procured as part of the PFI
agreement, including the requested Authority Change for the
provision of sprinklers.
 
The
following documents have been used to assist the decision process:
N/A
(if
the documents disclose exempt or confidential information, they
should not be listed, but the following wording shall be inserted :
"(The relevant documents contain exempt or confidential information
and are not available for public inspection)":-

Contact
Officer: Jane Barlow                            
Tel No 0161 793
2372
 

*          
This matter is also subject to consideration by the Executive
Lead             
Member for/ Director of and,
accordingly, has been referred to that            
Executive Lead Member / Director for a decision.

*          
This decision is not subject to consideration by another Executive
           
Lead Member /Director

*          
This document records a key decision, but the matter was not
           
included in the Council's Forward Plan and it has been dealt with
           
under the emergency procedure.

*          
This decision is urgent and is not subject to call-in, in
accordance with             
the Decision Making Procedure Rules

*          
The appropriate scrutiny committee to call-in the decision is the
           
Growth & Prosperity Scrutiny Panel.

 

 

 

Signed:
   Paul
Dennett                              
 Dated: 17.06.24
                       
City Mayor, Paul Dennett
 
 
 

FOR DEMOCRATIC
SERVICES USE ONLY

 

*          
This decision was published on 17.06.24                                             .

*          
This decision will come in force at 4.00 p.m. on
24.06.24                                   
    unless it is called-in in accordance with the
Decision Making Process Rules.