Decision details

To consider a report of the Cabinet Member for Children’s Services and Learning seeking approval to submit the Final Business Case to Partnerships for Schools, complete financial close of the project and to add £16million to this project within the Capital Programme. 

Following the appointment of Carillion as the preferred bidder for both of the authority’s academies projects in March 2010, a significant amount of design work has been undertaken on the Lord’s Hill scheme, in order to develop it to a stage upon which financial close can be reached.  With the design now nearing completion and with a view to achieving financial close on this project in the first quarter of 2011, the project team now seeks a Cabinet Decision to secure the necessary internal Council consents required to take this forward.  

(i)  To delegate authority to the Executive Director of Resources, following consultation with the Cabinet Member for Resources, to agree the final affordability position and to take any action necessary to complete financial close of the Lord’s Hill Academy project, or as otherwise required by Partnerships for Schools in this regard.

(ii)  To delegate authority to the Executive Director of Children’s Services & Learning, following consultation with the Executive Director of Resources, Solicitor to the Council and Cabinet Member for Children’s Services & Learning, to submit a Final Business Case (FBC) for the Lord’s Hill Academy Project.

(iii)  To delegate authority to the Solicitor to the Council, following consultation with the Executive Director of Resources and the Executive Director of Children’s Services, to complete commercial and contractual close and to enter into all necessary contracts/agreements and other legal documentation, including (but not limited to) the Development Agreement and Design and Build Contract, to construct the Lord’s Hill Academy.

(iv)  To delegate authority to the Solicitor to the Council, following consultation with the Executive Director of Children’s Services and Learning and the Head of Property Services to grant and execute a 125 year lease to the Academy provider of the Lord’s Hill Academy site at 5 Acres, Southampton.

(v)  To add, in accordance with Financial Procedure Rules, a sum of £15,856,400 to the Children’s Services & Learning Capital Programme, to carry out works at the Lord’s Hill Academy.

(vi)  To approve, in accordance with Financial Procedure Rules, capital expenditure in the sum of £15,856,400 (including fees) from the Children’s Services & Learning Capital Programme, to carry out works at the Lord’s Hill Academy.

The matter requires a decision because planning permission has now been granted (21 December) and the design completed, meaning that the project is, to all intents and purposes, ready to be closed financially and contractually. Any delay in securing the delegated authorities required in order to execute the contract would have a consequent impact on the project programme and could potentially delay delivery of new buildings. The recommendations are necessary in order to implement previous Cabinet and council decisions to support and enable the construction of the City’s new academies, using the National Framework for Academies Procurement.

The option of not reaching financial and contractual close with the preferred bidder on this scheme would result in a substantial delay to the project and would expose the Council to the risk of losing the £16 million worth of funding allocated to it by Government. As such, this option has been rejected.