Agenda Item 11 Enclosure KPCT/08/162
NHS KIRKLEES Report To:
PCT Board
Title:
New HQ Bradley Business Park
FOI Exemption Category
Open
Lead Director:
Bryan Machin Executive Director of Finance
Author: Key Points to Note:
David Henwood Head of Estates and Facilities PCT Board approved the Outline Business case at its meeting in December 2007. Y&H SHA approved OBC January 2008. Project Team has now concluded negotiations with the preferred developer and the key elements of the Full Business Case (FBC) has been brought to the Board for approval. The PCT has also concluded negotiations with WYCSA who will be occupying space within the building. However at this stage it has not been possible to agree terms with THIS. The PCT has considered the implications of this to the project and decided that it is still viable without THIS. THIS has therefore been removed from the FBC analysis. Should THIS still wish to utilise space within the building then the PCT will recommence negotiations post financial close. As the total cost of the proposed contract exceeds the PCT’s delegated limit of £6m Y&H SHA approval is required before the PCT can enter into any formal contract.
Budget Implications:
Total recurrent cost estimated at £1082k pa. Income from WYCSA for rented space and after deducting current costs converts this into a forecast annual revenue saving of £98kpa. Non recurrent revenue costs for this development are estimated at £530,363
Capital costs are estimated at £2.175m. Risk Assessment:
Full risk assessment included within FBC
Healthcare Benefits
Improved integration and improved working environment for staff.
Staffing Implications
The working environment will mean changes to current ways of working and location of staff across the PCT.
Legal Implications
The PCT will be entering into a binding lease agreement.
Sub Group/Committee:
Estates Sub Group
Recommendation:
The Board is asked to CONSIDER and AGREE the above proposals based on Full Business Case and APPROVE the following: 1. Subject to SHA approval, enter into a legal agreement with the preferred provider. At a rental of £703205pa including VAT. 2. Authorise the use of the PCT’s seal for both the agreement for lease and the lease itself.