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ITEM EX8

PRIMING AND THE PRIVATE FINANCE INITIATIVE

Introduction

1. In 1998 a report was submitted to the former Strategy & Resources Committee on the possibility of the Council entering into a 'Priming' type contract. Priming was the name given to an arrangement whereby the Department for Social Security transferred 700 buildings to a private sector company which undertook to improve, maintain and manage the buildings for 20 years. Other contracts involving the transfer of large portfolios of property followed for some other government departments and private sector organisations. In 1998 the Strategy & Resources Committee decided not to pursue such an arrangement for the Council's property portfolio.

Why Reconsider?

2. The Council has a large and diverse property portfolio of something approaching 1000 properties including schools, offices, libraries, fire stations, residential homes and depots. For many years there has been inadequate funding for repairs and maintenance or improvements. A substantial amount of funding has been provided by Central Government for works at schools but has been targeted at particular areas related to improvements in educational achievement rather than priority building maintenance needs. As a consequence the condition of the Council's buildings has deteriorated and the Council now spends more money on urgent reactive works than on planned maintenance. This gives poor value, conflicts with advice from the Audit Commission and District Audit, and is unsustainable.
3. It will also be necessary for there to be substantial investment in the portfolio in the future to ensure that the Council's accommodation meets its changing needs particularly in regard to changing service priorities, working practices, E-government and ICT. The Council should therefore consider whether any form of public/private partnership could help to address this problem.
4. Property consultants CB Hillier Parker have been commissioned to give advice to the Council on the Priming and similar contracts which are already in place, whether any other local authorities have entered into or are considering such contracts, what options for Priming or other public/private partnership arrangements could be available for the Council, and what the implications of such arrangements would be. They will give a presentation to members of the Executive at 2.00 p.m. on Wednesday 24 April. The conclusions and recommendations from that presentation will be referred to the Executive for any decisions on 30 April.

RECOMMENDATION

5. The Executive is RECOMMENDED to consider any conclusions and recommendations from the presentation to be given on 24 April by CB Hillier Parker on the options for Priming or other Public Private Partnership arrangements for the Council.

DAVID YOUNG
Director of Environmental Services

Contact Officer: Neil Monaghan, Tel: Oxford 81 5712

April 2002

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