Purpose

This
report seeks approval to award contracts for the supply of
replacement vehicles for the streets and Grounds services within
E&ST.
 

The paper requests delegated Authority to award
finance lease contracts for 49 vehicles at an
estimated cost of £483,410 per annum for 5 years,
totalling £2,417,052
 

Decision

Decision
 
For the reasons set out in the
report and its appendices Cabinet RESOLVED to Agree to:
 

i) 
Order the 49
replacement vehicles listed in paragraph 3.3 of this
report;

ii) 
Delegate to
the Corporate Director of Environment & Sustainable Transport,
in consultation with the Corporate Director of Resources to approve
the award of vehicle finance leases, which will be subject to
tender through the Council’s finance broker Link Assets. This
will include finalizing all documentation, noting that the final
cost of leases may fluctuate as set out in paragraph 4.2.3, and in
that case award will be subject to budget availability.
Alternatives Considered
 
Note
that the service has chosen to extend the lease agreement for the
existing Grounds fleet. There is a risk the vehicles are out of
warranty after year 5 and so any repairs would cost the council
whereas under the leases, we only incur Fair Wear and Tear costs.
It is expected this will option economically advantageous however
given the significant increase in costs of vehicles as set out in
4.3.5.
 

a) 
Option 1: Do
nothing. The Street Scene fleet of vehicles was part of the
insourcing of Street Cleansing which originally purchased a used
(not new) fleet. Since 22/23 repairs and maintenance costs have
increased by 130% year on year. 6.3

b) 
Option 2:
Replacement of current fleet with hired vehicles, this is the
current option for part of the existing fleet and does ensure we
have a compliant fleet but would increase costs by approximately
25-50% in comparison to the option requested for approval. 7
6.4

c) 
Option 3: To
replace the existing fleet with fully electric vehicles. This has
been rejected due to lack of infrastructure within the Central
Depot and additionally significant cost implications.