Decision Maker:

Outcome: For Determination

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: November 4, 2024

Purpose:

Content: RESOLVED:   Cabinet Procurement & Insourcing Committee awarded the purchase of twenty four (24) 26 tonne ‘narrow track’ 6x2 rear steer refuse collection vehicles to Supplier C through the Halton Housing framework - lot identification ‘Medium & Commercial Vehicle Conversions’.   Twenty (20) of these RCV’s will be fitted with ‘trade’ bin lift systems for the collection of trade bins. Four (4) will be fitted with ‘split’ bin lift systems for the collection of a variety of wheeled bins.   All RCV bodies to be fitted with fire hydrant connections.   REASONS FOR DECISION   Environmental Operations use a large number of refuse collection vehicles (RCV’s) to deliver their waste collection service to Hackney's local community encompassing an ever increasing population.   There is an obligation to separate waste into several categories all requiring separate vehicles to enable the different waste streams to be collected without contamination. Many years ago these separate waste streams were collected in the same vehicle but now many more are required.   The existing vehicles are working much harder than ever before incurring more wear & tear. The 24 older vehicles were scheduled to be replaced at year 7 but are now 8 years old and suffering high levels of unreliability and consequential downtime. They will be 9 years old by the time new vehicles are delivered.   This is impacting on Environmental Services ability to deliver their service and costing the service more through high repair costs and the use of rental vehicles to cover downtime.   For more than 20 years the service has used ‘narrow track’ RCV’s to enable the vehicles to access Hackney’s inner city road network with many narrow residential streets and its dense traffic conditions.   Only one supplier manufactures the ‘narrow track’ refuse collection vehicle and this supplier is accessible through several frameworks.   Market testing identifies the supplier as being accessible through TPPL, Crown Commercial Services, ESPO, YPO and Halton Housing Framework.   Each of these frameworks will charge a commission for using them but Halton Housing charges the lowest cost at a fixed £50.00 per vehicle. All the others charge a percentage of the contract spend. See Appendix 1 for a breakdown of charges, under 15.2.   The vehicles are specified to the highest technical, environmental and safety standards available at this time. They will be Ultra Low Emission Zone (ULEZ) and Direct Vision Standard (DVS) compliant. They will also meet the newest EU standards known as ‘General Safety Regulations’ (GSR2) which are mandatory from 1st January 2025.   The vehicles will be compatible with operating on HVO contributing to the Councils fleet environmental strategies.   The quotations attached at Exempt Appendix 2 demonstrates that the supplier can meet our vehicle specification requirements and are happy to provide the vehicles via the Halton Housing Framework. KPI’s based on delivery timings can not be agreed until an order is actually placed with them via the framework.   DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED   This is a simple asset purchase so there is no option of ‘insourcing’.   Option 1 is to do nothing, i.e. try to maintain the service with the existing vehicles which is already proving to be problematic as they regularly break down.   Option 2 is to lease the vehicles instead of purchasing them which will prove more expensive. An independent financial options appraisal is attached at Exempt Appendix 3 that demonstrates the costs associated with purchase, PWLB borrowing, operating lease (residual based leasing) and Finance lease (non residual based leasing).