Agenda item

This report provides financial model options following the decision to proceed with the development of the three sites to replace the council’s existing Elderly Persons’ Homes. The report also seeks approval in principle including borrowing requirements and decisions on the way forward over the next four years.

RESOLVED:   i)   That Cabinet agree in principle to Option 4, to provide the care on the Fordlands and Haxby Hall developments only, with care on the Lowfield site being provided by an independent operator (subject to further financial consideration and Full Council approval), that is:

a)    That the Council fund and operate the new residential care home to be built on the Fordlands Road site by engaging a design team and then entering a formal tender process to procure a builder.

b)     That the Council states its intention to operate the new residential care home to be built on the site of the existing CYC care home at Haxby subject to financial affordability in Autumn 2013 when a firm decision on that particular home is required.

c)    That the Council seeks to procure a partner through a tendering process to fund, build and operate a ‘community village for older people’ (including 90 residential care beds) on the Lowfield site in Acomb.  The council’s own in-house service will be able to compete for this work.

 ii)  That Cabinet receive further reports outlining the outcome of the tenders for both the Fordlands and Lowfield village developments, with updated financial implications on all areas, to assess the affordability of the proposals.

REASON:             The Council’s review of its existing elderly persons homes highlighted the need for changes to the current provision and how the homes could be replaced by modern facilities. There was overwhelming support in the consultation of the need for change and the vision of the new facilities in the city. After conducting a detailed analysis of a number of options both practical and financial along with considering the outcome of the public consultation Option 4 offers the best fit solution with least risk to the Council to create these modern facilities.

Members considered a report which provided financial model options arising from the decision made by Cabinet in January to proceed with the development of the three sites to replace the council’s Elderly Persons’ Homes (EPH).

Further information on progress with the closure of Oliver House and Fordlands Residential Care Home and deployment of the staff was set out at paragraphs 3 to 8 of the report. The Lowfield Care Village proposals including feedback on the soft market testing exercise were set out at paragraphs 9 to 24 and at Annex A of the report.

It was confirmed that a key assumption to the planning had been that the EPH modernisation programme would be self sufficient as there was no new long term money available for the project. The report provided an analysis of the following options put forward for consideration:

Option 1 - the three new developments have care provided by independent sector operators

Option 2 - the council provides the care on the three new developments

Option 3 - the council provides the care on the Fordlands development only.  Care on Lowfield and Haxby Hall is provided by an independent sector operator

Option 4 - the council provides the care on the Fordlands and Haxby Hall developments only.  Care on Lowfield is provided by an independent operator

The Cabinet Member confirmed the significance of the financial undertaking the development of the three sites would be for the authority and to the extensive consultation exercise undertaken. As mentioned the ideal option would have been for the council to provide care on all the developments however this had been found to be the least affordable option.

RESOLVED:   i)   That Cabinet agree in principle to Option 4, to provide the care on the Fordlands and Haxby Hall developments only, with care on the Lowfield site being provided by an independent operator (subject to further financial consideration and Full Council approval), that is:

a)     That the Council fund and operate the new residential care home to be built on the Fordlands Road site by engaging a design team and then entering a formal tender process to procure a builder. ^1.

b)    That the Council states its intention to operate the new residential care home to be built on the site of the existing CYC care home at Haxby subject to financial affordability in Autumn 2013 when a firm decision on that particular home is required.

c)     That the Council seeks to procure a partner through a tendering process to fund, build and operate a ‘community village for older people’ (including 90 residential care beds) on the Lowfield site in Acomb.  The council’s own in-house service will be able to compete for this work. ^2.

 ii)   That Cabinet receive further reports outlining the outcome of the tenders for both the Fordlands and Lowfield village developments, with updated financial implications on all areas, to assess the affordability of the proposals. ^3.

REASON:             The Council’s review of its existing elderly persons homes highlighted the need for changes to the current provision and how the homes could be replaced by modern facilities. There was overwhelming support in the consultation of the need for change and the vision of the new facilities in the city. After conducting a detailed analysis of a number of options both practical and financial along with considering the outcome of the public consultation Option 4 offers the best fit solution with least risk to the Council to create these modern facilities.