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ITEM EX10 Addendum
EXECUTIVE
– 11 DECEMBER 2001
TRANSFER
OF THE COUNCIL’S HOMES FOR OLDER PEOPLE:
Supplementary
Report
by Director
of Business Support & County Treasurer,
Assistant Chief Executive & Solicitor to the Council, Director of
Social Services
and Director of
Environmental Services
Introduction
- This report is
the promised addendum to the report published with the papers for the
meetings of the Council’s Executive and full Council to be held on 11
December 2001. The report:
- refers to the
exempt annexes from the County Treasurer (Annex 2), the Council’s
commercial advisors (Annex 3) and the Council’s solicitors for the
transaction (Annex 4);
- summarises the
further work that has been done on the options open to the Council
should the proposed transfer not take place; and
- presents the
conclusions of the Homes for Older People Member/Officer Working Party
held immediately after the seminar which took place on 7 December.
- Three presentations
were made to the seminar: by the Assistant County Treasurer, PKF (the
Council’s commercial advisors) and Trowers and Hamlins (the Council’s
solicitors). The presentations by PKF and Trowers and Hamlins are attached
at Annex A. The presentation by the Assistant County Treasurer is considered
to be commercially confidential and is included in Annex B.
Reasons why Annex B
is Exempt
- Annex B should
be considered in exempt session because its discussion in public might
lead to the disclosure to members of the public present of information
relating to the financial or business affairs of any particular person
(other than the authority); the amount of any expenditure proposed to
be incurred by the authority under any particular contract for the acquisition
of property or the supply of goods or services; and terms proposed or
to be proposed by or to the authority in the course of negotiations
for a contract for the acquisition or disposal of property or the supply
of goods or services.
Alternatives to the
Transfer to the Oxfordshire Care Partnership
- In the main report
the approach that would be required should the transfer to the Oxfordshire
Care Partnership (OCP) not proceed is summarised. To achieve the Government
deadline of April 2007 for all currently unregisterable homes complying
with the new standards, a systematic closure programme will have to
start in 2002. The financial implications of this are summarised in
Annex B. This section will focus on the service issues.
- The closure programme
will have to achieve the closure of 2 homes each year up to 2007. Each
year 80 to 90 old people will have to be found alternative residential
or, in a limited number of cases, nursing accommodation. The department
has considerable experience in closing homes for older people or in
making temporary arrangements as part of a refurbishment programme.
There has been considerable concern on the part of all concerned about
the impact of these changes on the older people involved, and in particular
that such changes or upheavals could hasten the death of vulnerable
old people.
- The department
has therefore developed an approach to this difficult process that has
involved keeping residents and staff together as much as possible; moving
residents to new accommodation in friendship groups of their choice;
and recognising wherever possible the residents’ and their relatives’
preferences for alternative accommodation. Where there is going to be
a refurbished or new home for residents to move into, the temporary
arrangements have kept residents and staff together, and this has been
very beneficial. (It should be noted that there has been discussion
between OCP and the Council’s officers on how these processes can be
managed. The staff whose transfer to OCP is part of the proposed transfer
are the same staff who have put in place and managed these arrangements
successfully in the past, as part of the Council’s own refurbishment
programmes).
- In the closure
programme that would be necessary to comply with the 2007 deadline the
arrangements outlined above would not be possible. Residents would have
to be found new accommodation, in either council or independent sector,
predominantly on an individual basis, meeting as far as possible residents’
and relatives’ preferences but without the capacity to take into account
any friendship groups. As the number of residents reduced, staff would
be made redundant. Only in a very few cases could staff be redeployed
within the department.
- This would be
a massively disruptive process. The anticipated service consequences
are summarised below.
- It would be
very distressing for residents, relatives and staff.
- There would
be a direct impact on the death rate because none of the ‘protective’
measures outlined could be out in place.
- Staff morale
would be undermined. The consequences would be increased levels of
sickness and turnover, with a consequent increase in the use of agency
staff to ensure that the registration requirements for staffing were
met.
- The overall conclusion
is that this run down of the Council’s homes would be a very destructive
process, and one in which it would be very difficult, if not impossible,
to maintain the standards of care in the homes affected.
- Other consequences
must also be considered, and these are summarised below.
- Nearly all of
the c440 replacement places will have to be in the independent sector.
The regular ‘Capacity Planning’ work that the department does with
Oxfordshire Health Authority and the NHS Trusts collects data on a
weekly basis on vacancy levels in the independent residential and
nursing homes sector. Occupancy levels in residential care are between
85% - 90%, and for nursing care 90% - 95%. There is therefore to be
very limited capacity within the independent sector, and there would
be a significant impact on prices.
- There would
be very serious consequences for the NHS with hospital discharges
being very badly affected.
- The reduced
capacity in the residential and nursing care sector would lead to
significantly increased pressures on the domicilliary care services
and on families and informal carers.
- There are two
further issues of concern should this course be followed. The department
would be faced with having to manage a difficult and complex closure
programme, develop alternatives within the independent sector and manage
the limited redevelopment programme. These activities will require considerable
levels of senior management involvement, at a time when there are a
wide range of demands on the department. Finally, the closure programme
would understandably be deeply unpopular and controversial, particularly
with no replacement programme except for one site.
The Conclusions
and Advice of the Member Officer Working Group
- The financial
and commercial issues that the working group considered are set out
in Annexes 1, 2, 3 and 4. On the basis of the briefings given in the
members’ seminar, and further discussion in the working group, the working
group:
- noted the current
funding deficit;
- noted that negotiations
were still proceeding with OCP with the objective reducing the price
of their offer closer to the affordability framework given in the
revised invitation to submit a best and final offer (BAFO);
- noted the unacceptable
nature of the alternative options to proceeding with the proposed
contract with OCP.
- The working group
agreed to advise the Executive, in the light of the outcome of further
negotiations, to recommend Council to agree to enter into a contract
with OCP on the basis of:
- the draft terms
reported to the Members’ Seminar;
- the continuing
provision of 799 places.
Further Issues
- There remain a
number of details outstanding that will require resolution before a
contract can be finally concluded. None of these is considered by officers
or the council’s advisors to be of fundamental significance, as they
are primarily concerned with the ways in which the contract would operate.
- However, within
the evaluation of the property aspects of the transfer, one issue remains
outstanding. The Council’s requirements with regard to the homes that
are currently registerable are that they transfer on a 60 year lease,
with no option to break the lease when the 25 year contract expires.
This has not been agreed to by OCP. This means that it is possible that
in 25 years time the homes that are currently registerable will revert
to the Council, along with the residents. This is not considered to
be necessarily desirable. If OCP were to return these homes at the end
of 25 years it would, in property terms, be best for them to be returned
with vacant possession. However, to achieve this would incur the Council
in extra costs, either through OCP or directly itself.
- Officers have
identified part of the Donnington Middle School site in Oxford as being
very suitable for a replacement home. This would be the case whether
or not the transfer proceeds. It is proposed that this site is appropriated
as a replacement site for a care home for older people.
Concluding the Contract
- If it is agreed
that the proposed contract is concluded, work will continue to allow
signing to take place on 20 December 2001. The transfer would take affect
at midnight on that day. It is proposed that the Project Director meets
with the Council’s Leader and Deputy Leader, or their nominated deputies,
the Chief Executive, the Director of Business Support and County Treasurer,
and the Director of Social Services at an appropriate time before contract
signing to confirm that any outstanding issues have been resolved satisfactorily
and in a way that allows the Council to meet its objectives.
RECOMMENDATIONS
- The Executive
is RECOMMENDED to:
- RECOMMEND
to Council, in the light of the further negotiations, to agree
to enter into a contract with the Oxfordshire Care Partnership
on the basis of the draft terms reported to the members’ seminar
held on 7 December 2001 and the continuing provision of over
790 places;
- agree
to the appropriation of part of the Donnington Middle School
site for a replacement care home for older people.
CHRIS
GRAY
Director of
Business Support & County Treasurer Assistant
C.J.
IMPEY
Chief Executive &
Solicitor to
the Council
MARY
ROBERTSON
Director of
Social Services
DAVID
YOUNG
Director of Environmental Services
Background
papers: Nil
Contact
Officer: Nicholas Welch, Assistant Director 01865 815714
December
2001
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