Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: October 29, 2024

Purpose:

Content: 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.