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The Cabinet considered a report of the Director of Economy and
Place which sought approval of the amendments to the Vehicle
Replacement Strategy with the view to streamline processes for
vehicle provision and replacement operated under the Environmental
Management Service.

 

The Head of Environmental Services was in
attendance to present the information and to address the
questions and the comments of the Cabinet Members. The Officer
informed that new processes included in the policy would ensure the
Council contributed to its carbon reduction and emissions targets
as well as avoiding the financial pressures that would come into
effect for non-compliant vehicles used as part of Council’s
activities when the GM ULEZ (Ultra Low Emissions Zone) charges come
into effect.

 

Resolved:

1.           
That the adoption of the amended processes outlined in the proposed
five-year strategy be agreed, including for the Rochdale Borough
Council (RBC) Vehicle Replacement Programme (VRP) Board to consult
with the relevant service areas to secure a model of procurement
for RBC wherein all vehicles will be procured and managed under a
single structure within that ongoing programme of work in
consultation with the RBC VRP Board;

 

2.           
That authority be delegated to the Director of Economy and Place in
consultation with the Director of Corporate Services  to vire budgets up to
the value of £250,000 between service areas to integrate RBC
wide vehicle procurement and management/ maintenance spend into one
programme of work overseen by the VRP Board;
 

3.           
That it be agreed that the VRP Board proceed with the formal
procurement of the vehicle fleet supply contracts in line with the
Constitution’s Scheme of Delegation and Contract Procedure
Rules;

4.           
That authority be delegated to the Director of Economy & Place
in consultation with the Portfolio Holder for Climate Change &
Environment and the Portfolio Holder for Highways and Facilities to
approve any minor developments and amendments to the current
Vehicle Procurement Strategy and any changes to schedule for
vehicle replacements up until 2029/30;
 

5.           
That authority be delegated to the Director of Economy & Place
in consultation with the Portfolio Holder for Climate Change &
Environment and the Portfolio Holder for Highways and Facilities to
conduct the procurement exercise, award and enter into the
contracts outlined in this report and all other necessary or
ancillary agreements with the successful bidder(s) for this
year’s replacement schedule and future years up until and
including the 2029/ 30 scheduled replacements;
 

6.           
That it be noted that re-profiling of
the capital budgets to cover the estimated costs of the vehicles
for the next 5 years is needed. Capital budgets were previously agreed at Budget Council in February
2024.
 
Reason for decision:
To procure several fleet requirements across
the Council, which  required to be let over the next 5
years.
 
Alternatives considered and rejected:
Failure to approve the
current replacement schedule would lead to the inability of
operational services within the council to operate its fleet safely
and in line with council aspirations and service delivery
responsibilities. This would contribute to higher vehicle
maintenance costs due to the age of fleet, extended vehicles
“down time” and the need to hire extra external
replacement vehicles. All these risk factors can be incorporated as a cost to the Council and not
just a monetary cost but also a reputational cost should the
Council not be able to continue to provide services to its
residents.
 
Continue to procure
vehicles in a fragmented manner across services as-is.  This would fail to meet the requirements of
ensuring value for money for our residents and adds additional
burden on management across the council in failing to deliver a
coordinated approach to its responsibilities towards environmental
and financial responsibilities and targets. In future procurement
processes will need to focus on more detailing several factors such
as environmental quality target achievement, exploration of
beneficial industry related- technology for more efficient working
and work to ensure necessary supporting infrastructure is in place
or planned to meet sustainability, and carbon reduction
requirements. It would also fail to consider the economies of scale
and considerations which a council-wide joint procurement,
management/maintenance approach will secure.