Issue - meetings

Report No: CAB/FH/17/011

Portfolio Holder: James Waters                Lead Officer: Alex Wilson

RECOMMENDED TO COUNCIL: (22 February 2017)

That:-

1.                  The funding model, with estimated project budget and cash flow, as set out in Report No: CAB/FH/17/011 and its Appendix, be agreed and the Mildenhall Hub Project be approved to proceed to its planning and delivery stages.

2.                  A funding/partnership agreement with the project partners be prepared and signed by the Director, in consultation with the Leader and Portfolio Holder for Resources and Performance, on the basis set out in Section 6 of Appendix A to Report No: CAB/FH/17/011.

3.           Cabinet be authorised to approve a separate business case for an investment of up to £4m in renewable energy provision in the Hub provided that this business case is in line with the Council’s Medium Term Financial Strategy.

4.                  The Council’s Section 151 Officer make the necessary changes to the Council’s prudential indicators as a result of recommendation 1. above.

(Report No: CAB/FH/17/011)

The Director presented this report which set out recommendations regarding the funding and delivery of the Mildenhall Hub Project, reflecting the outcome of the scrutiny process and further activity.

The report explained that on 12 January 2017, the Overview and Scrutiny Committee had considered Report No: OAS/FH/17/001 in respect of the funding for the Mildenhall Hub project.  The Committee had endorsed the report and had referred it on for formal consideration by Cabinet and Council in February 2017.  The scrutiny report was attached as Appendix A to Report No: CAB/FH/17/011.

Section 2 of Report No: CAB/FH/17/011 also provided the Cabinet with an update since the Overview and Scrutiny Committee meeting on 12 January 2017, particularly in relation to the latest estimate of the Forest Heath District Council share of the capital costs.

Section 3 of Report No: CAB/FH/17/011 set out the recommendations and next steps for the project which explained that, if approved, the project would proceed, subject to planning consent being achieved, and to procurement resulting in a cost to FHDC, which was within the agreed budget of £20m.  A separate business case for renewable energy provision would also be prepared, which was likely to entail an additional investment of £2m to £4m.

The Director explained that the key decision for the Council, at this point, was to authorise the signing of a funding agreement for the project, which set out the governance and financial responsibilities of each partner.  As the agreement must be prepared within the framework (as set out in Section 6.2 of Appendix A), it was also being proposed that Officers, in consultation with the Leader of the Council and Portfolio Holder for Resources and Performance, be authorised to prepare and sign this agreement during the Spring of 2017.

With the vote being unanimous, it was

RECOMMENDED TO COUNCIL: (22 February 2017)

That:-

1.           The funding model, with estimated project budget and cash flow, as set out in Report No: CAB/FH/17/011 and its Appendix, be agreed and the Mildenhall Hub Project be approved to proceed to its planning and delivery stages.

2.           A funding/partnership agreement with the project partners be prepared and signed by the Director, in consultation with the Leader of the Council and the Portfolio Holder for Resources and Performance, on the basis set out in Section 6 of Appendix A to Report No: CAB/FH/17/011.

3.           The Cabinet be authorised to approve a separate business case for an investment of up to £4m in renewable energy provision in the Hub provided that this business case is in line with the Council’s Medium Term Financial Strategy.

4.           The Council’s Section 151 Officer makes the necessary changes to the Council’s prudential indicators as a result of Recommendation 1. above.