Agenda item - Older Persons’ Accommodation Programme: The Business Case

This report asks Members to agree to proceed with the Older Persons’ Accommodation Programme as set out in the report.

Resolved: That the Executive agree to:

(i) Proceed with the Older Persons’ Accommodation Programme (the Programme) as set out in the report, including:

· funding 24/7 care support at Glen Lodge and Marjorie Waite Court Sheltered Housing with Extra Care schemes;

· building a 27 home extension to Glen Lodge;

· seeking the building of a new Extra Care scheme on the site of an existing Older Persons' Home (OPH);

· procurement of a new residential care facility as part of the wider Health and Wellness Campus at Burnholme; and

· encouraging the development of additional residential care capacity in York including block-purchase of beds to meet the Council’s needs.

(ii) Approve the Financial Plan for the Programme including:

· use of the £3.554m OPH annual budget for the achievement of the Programme and with the intention of generating annual savings of £284k from 2019/20 rising to £553k by 2023/24 and £9.6m over 25 years;

· allocation of up to £1.2m from the venture fund over the first four years of the Programme to fund the early years costs of achieving change including £88k of design and pre-planning costs associated with new Extra Care provision and £241k Programme management costs; the investment will be repaid from 2019/20 onwards over a 5 year period being fully repaid by 2023/24; the £88k of design and pre-planning costs would be funded from the Programme management budget and then repaid once the Glen Lodge extension is added to the capital programme with these costs chargeable to revenue should the capital scheme fail to progress and that revenue budgets would be needed to address this; and

· ring-fence the reinvestment of up to £4m of capital receipts from the sale of the surplus to requirements existing older persons assets listed in the report for use on this Programme, subject to further approval regarding capital expenditure.

(iii) Undertake a six week period of consultation, this autumn, with the residents, family, carers and staff of two of the Council’s OPHs to explore the option to close each home with current residents moving to alternative accommodation and that a further report on the outcome of this consultation be received at the Executive before a final decision to close is made.

(iv) Note that a recommendation to Council for the £4.15m investment in the Glen Lodge extension be added to the Capital Programme through the appropriate Capital Monitor once the outcome of the funding bid has been confirmed, noting that some of the expenditure may require prudential borrowing with the associated revenue costs being funded through additional rental income.

(v) Note that a further report will be brought to Executive in the autumn to agree the preferred approach to the development of the Burnholme site in order to deliver a Health & Wellness Campus including residential care provision.

(vi) Receive regular written updates of the progress of the Programme.

Reason: (i) To provide suitable accommodation, ideally in a community setting, for the city’s older residents including those with complex care needs, those with dementia and those moving out of, or diverted from moving to, existing Council-run OPHs which are no longer fit-for-purpose.

(ii) So that the project can progress.

(iii) So that the Executive may decide which homes may close having been fully informed of the views of and options available to existing residents.

(iv) So that 27 additional homes can be added to the Glen Lodge Extra Care facility, providing safe and secure accommodation for older people including those with complex needs and dementia.

(v) So that the building of the Burnholme Health and Wellbeing Campus can progress.

(vi) So that the Executive can be assured that the Programme is progressing according to plan and will be delivered.

[See also Part B minute]

Consideration was given to a report which provided the Business Case for investment in Older Persons’ Accommodation to equip the city for the changing needs of its older population. The Programme sought to address these needs by replacing council run Older Persons’ Homes (OPH’s) with a range of provision including Extra Care housing and independent sector provided registered residential and nursing accommodation.

Members noted that, on current projections in the financial model, the Programme was affordable and should deliver financial savings of £284k per annum from 2019/20 rising to £553k by the end of 2023/24 and £9.6m over 25 years. It was also anticipated delivery of capital receipts of £3.6m from the sale of the Council’s existing OPH’s. Members also noted the risks associated with the proposals, and the mitigating action required, which would be kept under review.

The Executive Member welcomed the report and the proposals to move the programme forward highlighting the need for early consultation with OPH residents and relatives.

Concern was raised by a Member that, as residents often wished to remain in their locality, the majority of accommodation appeared to be concentrated in the east of the city and he hoped that, in the longer term, there would be a better balance.

Following further discussion it was