Issue - meetings

Cabinet Member: Adult Services  

Forward Plan Ref 2009/145

Contact: Nick Welch, Head of Major Programmes (01865 323575)

Report by Head of Major Programmes (CA12).

This report sets out the arrangements that are required to secure the funding the development of a Primary Health Care Centre in Chipping Norton, which is an integral element to the overall development of community health and care home services. The County Council is undertaking the development of a care home through the existing arrangements between itself and the Oxfordshire Care Partnership but these do not cover the development of the Primary Health Care Centre.  Specific arrangements and guarantees are required of the County Council by the scheme's developers and funders. This report gives the details and of the guarantees that are required, the implications for the Council, and seeks formal agreement for these arrangements.

Cabinet is RECOMMENDED to approve the proposed arrangements with the Oxfordshire Care Partnership, Bedfordshire Pilgrims Housing Association and the Oxfordshire PCT whereby

(a)                                      in the event of the Project Agreement dated 20 December 2001 being terminated, the County Council would meet the outstanding finance charges applicable to both the Care Home and the Community Health Facility and would grant a direct lease of the Community Health Facility to the PCT at a rent sufficient to repay those charges over the remainder of the initial 30 years finance period; and

(b)                                      in the event of the PCT either failing to enter into the Sub-subunderlease with OCP after the Community Health Facility has been constructed or committing a major breach of covenant resulting in forfeiture of the Sub-subunderlease and becoming liable to pay the outstanding finance charges on the Community Health Facility to OCP/BPHA, the County Council would stand as guarantor for the PCT.  This would make the County Council responsible for payment of the outstanding finance charges on the Community Health Facility to BPHA and recovering such payment through a “Compensation Agreement” with the PCT (or by taking legal action if the PCT did not comply with the terms of the Compensation Agreement). 

Councillor Hannaby stated that she was a Trustee of Wantage Community Nursing Home and so had a good understanding of the issues.  Her main concern was about the giving of a financial guarantee to the PCT and the potential implications of this for the council’s balances.

The Cabinet considered a report (CA12) which set out the arrangements that are required to secure the funding the development of a Primary Health Care Centre in Chipping Norton, which is an integral element to the overall development of community health and care home services.

The County Council is undertaking the development of a care home through the existing arrangements between itself and the Oxfordshire Care Partnership but these do not cover the development of the Primary Health Care Centre.  Specific arrangements and guarantees are required of the County Council by the scheme's developers and funders. This report gives the details and of the guarantees that are required, the implications for the Council, and seeks formal agreement for these arrangements.

RESOLVED:            to approve the proposed arrangements with the Oxfordshire Care Partnership, Bedfordshire Pilgrims Housing Association and the Oxfordshire PCT whereby

(a)               in the event of the Project Agreement dated 20 December 2001 being terminated, the County Council would meet the outstanding finance charges applicable to both the Care Home and the Community Health Facility and would grant a direct lease of the Community Health Facility to the PCT at a rent sufficient to repay those charges over the remainder of the initial 30 years finance period; and

(b)               in the event of the PCT either failing to enter into the Sub-subunderlease with OCP after the Community Health Facility has been constructed or committing a major breach of covenant resulting in forfeiture of the Sub-subunderlease and becoming liable to pay the outstanding finance charges on the Community Health Facility to OCP/BPHA, the County Council would stand as guarantor for the PCT.  This would make the County Council responsible for payment of the outstanding finance charges on the Community Health Facility to BPHA and recovering such payment through a “Compensation Agreement” with the PCT (or by taking legal action if the PCT did not comply with the terms of the Compensation Agreement).