Decisions

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Decisions published

26/03/2019 - Capita Simms Software (Free School meals) ref: 280    Recommendations Approved

Decision Maker: Deputy Executive Leader (Children and Families)

Decision published: 27/03/2019

Effective from: 26/03/2019

Decision:

SERVICE AREA:

Finance Directorate

SUBJECT MATTER:

Capita SIMMS Software (Free School meals)

DECISION:

Under rule A2: to approve the use of Risk Based Sourcing by waiving the requirements of rule C6 of the Council’s Procurement Standing Orders in order to award a contract of £60k or more without open advertisement.`

DECISION TAKER(S):

Director of Governance & Pensions

Director of Finance

Deputy Executive Leader

Executive Member for Lifelong Learning

VALUE OF CONTRACT

£80,280

DATE OF DECISION:

26 March 2019

REASON FOR DECISION:

Exchequer cannot provide this service without full recovery costs which is not value for money when there is a DfE system that provides the same process nationally.  Running a formal competitive exercise is not considered prudent on this occasion due to the results of the soft market test meaning that time will be wasted going to market when the outcome is already known because:

1.    There are only two commercial organisations offering a suitable system on the market;

2.    The DfE will not respond to a tender process as they offer their system on a ‘take it or leave it’ basis without entering a tender process.

ALTERNATIVE OPTIONS REJECTED (if any):

As set out in the submitted report

CONSULTEES:

STaR procurement

FINANCIAL IMPLICATIONS:

(Authorised by Section 151 Officer)

As set out in the submitted report

LEGAL IMPLICATIONS:

(Authorised by Borough Solicitor)

As set out in the submitted report.

CONFLICT OF INTEREST:

There were no declarations of interest.

DISPENSATION GRANTED BY STANDARDS COMMITTEE ATTACHED:

Not applicable.

REFERENCE DOCUMENTS:

The background papers relating to this report can be inspected by contacting the report author,:

Tom Wilkinson, Assistant Director of Finance, Tameside

Metropolitan Borough Council

Telephone:0161 342 5609

e-mail: tom.wilkinson@tameside.gov.uk

 

Lead officer: Tom Wilkinson


18/03/2019 - Tosca Debt Capital Fund III ref: 279    Recommendations Approved

Decision Maker: Director of Governance and Pensions

Decision published: 18/03/2019

Effective from: 18/03/2019

Decision:

EXEMPT - GMPF - EXECUTIVE DECISION NOTICE

SUBJECTMATTER:

TOSCA DEBT CAPITAL FUND III

DECISION:

DETERMINED that as part of the 1.5% Impact Portfolio allocation approved by Panel on 21 July 2017, to approve a commitment of £20m to Tosca Debt Capital Fund III subject to satisfactory completion of outstanding legal documentation.

DECISION TAKER:

Sandra Stewart

DESIGNATION OF DECISION TAKER:

Director of Pensions

DATE OF DECISION:

18 March 2019

REASON FOR DECISION:

An allocation of 1.5% to the Impact Portfolio was ratified by Panel 21 July 2017.

 

An annual pacing strategy has been agreed by Policy & Development Working Group on 20 December 2018, which outlines the pacing of commitments necessary to meet the target allocation within a reasonable and sensible time frame, whilst also prescribing appropriate diversification targets for the portfolio. The Local Investments team are responsible for selecting managers and funds consistent with the approved strategy.

 

The Director of Pensions has delegated authority to sign off investments of this nature.

ALTERNATIVE OPTIONS REJECTED (if any):

The Local Investments team regularly review private debt funds and Managers on an on-going basis. Recent competitor funds have been assessed but not progressed at this stage.

CONSULTEES:

The Local Investment team has discussed the opportunity internally, have taken appropriate reference calls with relevant parties and consulted with GMPF’s Investment Committee. There was a consensus on Tosca Debt Capital being a credible manager and this being an appropriate investment for GMPF’s local investments portfolio.

FINANCIAL IMPLICATIONS:

GMPF allocated 1.5% to Impact Portfolio investments, to date £327.5m has been committed from this allocation. It is proposed that the investment into the Tosca Debt Capital Fund III will come from this allocation and will be within the Impact Portfolio’s target allocation for investment theme ‘loans to SME businesses’.

LEGAL IMPLICATIONS:

A subscription Agreement and, as necessary, a side letter will be entered into to formalise the commitment to the Fund, subject to approval by Pension Fund Legal. The Limited Partnership Agreement is the main controlling document and is subject to review by GMPF officers and review by Pension Fund Legal.

RISK MANAGEMENT:

Associated risks with private debt investing have been discussed in the due diligence paper. The associated mitigants to some of the risks have also been considered and deemed appropriate. The Fund manager is an established, regulated AIFM (FCA registration number 764023) which provides some comfort in that the Fund will be managed suitably and the Fund strategy provides diversification to the portfolio.

CONFLICTOF INTEREST:

None

DISPENSATION GRANTED BY STANDARDS COMMITTEE ATTACHED:

N/A

ACCESS TO INFORMATION:

Not for Publication: This report contains exempt information relating to paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended). On balance, under paragraph 10 of Part 2 of Schedule 12A, it would not be in the public interest to disclose this information to the public because disclosure would, or would likely to, prejudice the commercial interests of the Fund and/or its agents which, in turn, could impact upon the interest of the local taxpayer and/or the beneficiaries of the Fund.

REFERENCE DOCUMENTS:

Any further information can be obtained by contacting: Andrew Hall, Investment Manager by phone on 0161 301 7203 or by email: Andrew.hall@tameside.gov.uk

 


18/03/2019 - Owen Street Phase 2 - Development Loan - Executive Decision ref: 278    Recommendations Approved

Decision Maker: Director of Governance and Pensions

Decision published: 18/03/2019

Effective from: 18/03/2019

Decision:

EXEMPT - GMPF - EXECUTIVE DECISION NOTICE

SUBJECTMATTER:

OWEN STREET (DEANSGATE SQUARE) PHASE 2

DECISION:

DETERMINED that as part of the 3% allocation to Greater Manchester Property Venture Fund (GMPVF) approved by Panel on 12 September 2014, to approve a £30m debt facility for phase 2 of the Owen Street / Deansgate Square development. This loan replaces the £30 loan previously agreed for phase 1.

DECISION TAKER:

Sandra Stewart

DESIGNATION OF DECISION TAKER:

Director of Pensions

DATE OF DECISION:

18 March 2019

REASON FOR DECISION

An allocation of 3% of Fund assets to GMPVF, was ratified by Panel 12 September 2014.

 

Renaker is an experienced developer with a strong presence in Manchester and with a proven track record. Phase 1 of the Owen Street / Deansgate Square residential development (close to Manchester City Centre), is due to complete shortly with the practical completion and sale of Tower D to Legal & General. Following the sale, phase 2 will commence, to complete Tower A and the amenity building, as well as progressing the remaining tower blocks (B and C).

 

The £30m loan facility is part of a £100m debt facility with the balance coming from Greater Manchester Housing Investment Fund. As work has started on site, the developer has already committed a substantial equity sum into progressing the phase 2 buildings. The value of work in progress at December 18 for phase 2 being £110m.

 

A red book valuation has been completed which reports a GDV for Tower A of £188.2m. It is intended that the sales achieved from Tower A will be sufficient to repay both GM HIF and GMPVF. Security is also held by the lenders over the wider site, should the sale proceeds from Tower A not cover both lenders.

 

To ensure funding is utilised to complete Tower A, the amount required to achieve practical completion will be held in an escrow account for this purpose only.

 

The development loan is secured on the site/development, at no greater than 55% of development costs or 35% of development value.

 

Following due diligence, Avison Young (AY) in their role as non-discretionary manager to GMPVF, have recommended entering into the phase 2 loan agreement. Please refer to the AY report attached which supports this recommendation.

 

ALTERNATIVE OPTIONS REJECTED (if any):

The Local Investments team and AY review development debt opportunities on a regular basis. Recent competitor development debt opportunities have been assessed, but not progressed at this stage.

CONSULTEES:

The Local Investment team has discussed the opportunity internally, with Avison Young as Fund Managers to GMPVF and consulted with GMPF’s Investment Committee. There was a consensus that Renaker are a credible developer, Owen St / Deansgate Square being a viable development and this being an appropriate investment for GMPVF’s investments portfolio.

FINANCIAL IMPLICATIONS:

The loan will be made from GMPF’s 3% allocation to the GM Property Venture Fund. The £600m investment approved by BDWG on 31 July 2014 and ratified by Panel on 12 September 2014.

LEGAL IMPLICATIONS:

An external firm of lawyers have been appointed by the Fund to prepare a market standard LMA lending agreement, inter-creditor agreement, review the construction documents and ratify the title of the site to be held as security for the loan.

Legal due diligence is close to completion and no significant issues have been raised by the lawyers. All documents are in final form and have been substantially agreed by all parties.

A conditions precedent checklist has been prepared, which shows the remaining documents required to be provided by the borrower, in advance of the loan agreement being completed.

RISK MANAGEMENT:

Associated risks with providing development debt have been discussed in the due diligence paper. The associated mitigants to some of the risks have also been considered and deemed appropriate. Renaker is an experienced developer and has committed substantial sums in progressing the works to date, the funding required to complete Tower A is to be held in escrow, to ensure its practical completion. The strategy for GMPVF provides diversification to the portfolio, both in sector and type of financial instrument.

CONFLICTOF INTEREST:

None

DISPENSATION GRANTED BY STANDARDS COMMITTEE ATTACHED:

N/A

ACCESS TO INFORMATION:

Not for Publication: This report contains exempt information relating to paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended). On balance, under paragraph 10 of Part 2 of Schedule 12A, it would not be in the public interest to disclose this information to the public because disclosure would, or would likely to, prejudice the commercial interests of the Fund and/or its agents which, in turn, could impact upon the interest of the local taxpayer and/or the beneficiaries of the Fund.

REFERENCE DOCUMENTS:

Appendix 1- GVA Recommendation dated 12 March 2019

Further background papers relating to this report can be inspected by contacting: Andrew Hall, Investment Manager by phone on 0161 301 7203 or by email: andrew.hall@tameside.gov.uk