Decision

A contract be awarded to Addlestone Commercials Ltd. for the supply of 2 No. Used OAF LF 18t Skip Loaders @ £39,500.00 each plus VAT

Total Capital Expenditure for 2 vehicles: £79,000.00 plus VAT

Reasons for the decision

Ubico, on behalf of Cheltenham Borough Council, deliver waste and recycling collections across the Borough, including recycling bring banks.
The current fleet of 18 tonne skip vehicles is now due for replacement on the 2026/27 vehicle replacement plan. The replacement of these vehicles will support the continuation of the bring bank service in Cheltenham, reduce maintenance/hire costs for the existing old fleet and reduce operational risks/cost. Due to the increasing volumes at bring banks and the operational costs and risks with hiring in specialist vehicles, it is recommended that a third vehicle is purchased to cover when existing vehicles are off the road for servicing, MOT's and breakdowns to ensure service continuity. This third vehicle is still being sourced and is expected to be put forward for purchase in the next few months. To reduce capital expenditure the 3 vehicles recommended are all 3 years old and much cheaper than new vehicles. A full mechanical inspection by the fleet workshop has taken place to ensure no mechanical issues and professional advice confirms that, given the low mileage done in Cheltenham and the 3 month warrant, this would be the preferred option for immediate replacement without waiting for build times and delivering a significant budget saving of approximate £150,000.

This procurement is in line with the cabinet decision dated 30 November 2021 approving the move to alternative fuels or away from internal combustion engines for all our fleet and plant as quickly as practicable where alternatives are available and within available resources to support our climate change ambitions of net zero by 2030.

The vehicles that are being proposed to be purchased will have a Euro 6 Diesel Engines, which are the cleanest and greenest diesel engines, currently available in this market sector. The manufacturer of this vehicle also permits the use of HVO fuels, which is now being used by most of the current Council fleet. In addition, these vehicles will be fitted with eco-driving telematics to enable drivers to be taught more efficient driving techniques to further reduce carbon emissions and raise mpg.

Whilst there are electric vehicles of this type available on the market to purchase, these are significantly more expensive when costed against conventional ICE models, and the depot would also need significant financial investment in additional infrastructure to support the power requirement to re-charge such vehicles.

Ubico have sourced available vehicles via the open market and compared against quotes for new vehicles to ensure best value.

Alternative options considered

Officers have considered whether the service could continue to be delivered without these vehicles and concluded that it could not given the authority's requirement to deliver kerbside food recycling. These ICE vehicles will be fuelled by HVO not diesel to reduce carbon emissions. Not replacing these vehicles at this point in time will not deliver the benefits set out above and will have a negative impact on the budget.