Agenda item

8.1

To provide an update on the Vehicle Replacement Programme, 2019 to 2025.

This report provides an update on the delivery of the programme to date and the proposals for year 4 of the vehicle replacement programme.

This report seeks approval for the commission of 105 vehicles/mechanical plant equipment, with an estimated value of £2.7m, to replace 105 financially unsustainable and operationally inefficient vehicles/mechanical plant equipment in line with Year 4 of the agreed vehicle replacement programme.

8.2

RESOLVED UNANIMOUSLY: That Finance Sub-Committee approves the commission of 105 vehicles/mechanical plant equipment, with an estimated value of £2.7m, to replace 105 older polluting financially unsustainable and operationally inefficient vehicles/mechanical plant equipment in line with Year 4 of the agreed vehicle replacement programme.

8.3

Reasons for Decision

8.3.1

Continue to purchase new greener vehicles as replacements for the older vehicles within the fleet using the Prudential Borrowing finance model. Purchasing new vehicles will significantly reduce high levels of vehicle exhaust emissions in line with SCC’s target of zero carbon by 2030.

8.4

Alternatives Considered and Rejected

8.4.1

Option 1 - Do nothing.

This is not a realistic option as our vehicles have become financially unsustainable, operationally inefficient, and no longer align to our strategic objectives in terms of the environment and lower emissions.

8.4.2

Option 2 – Lease vehicles.

There is a potential option to lease new vehicles as replacements for the older vehicles within the fleet.

This option is not financially viable in comparison to outright purchase options due to the Council having access to Prudential Borrowing; and the council retaining the residual value of the vehicle on completion of the loan period.

8.4.3

Option 3 - Purchase all zero emission and low carbon vehicles.

Currently, the Council does not have the charging infrastructure required at the depots, nor the home charging infrastructure to charge these vehicles. Furthermore, soft market testing highlights that these vehicles are 3 to 4 times more costly than the low emission vehicles.

8.1

The Director of Direct Services presented a report that provided an update on the Vehicle Replacement Programme 2019 to 2025 and the proposals for year 4 of the vehicle replacement programme. The report sought approval for the commission of 105 vehicles/mechanical plant equipment, with an estimated value of £2.7m, to replace 105 financially unsustainable and operationally inefficient vehicles/mechanical plant equipment, ensuring that the Council’s fleet would be Clean Air Zone complaint and introducing Ultra Low Emission Vehicles where possible.

8.2

RESOLVED UNANIMOUSLY: That Finance Sub-Committee approves the commission of 105 vehicles/mechanical plant equipment, with an estimated value of £2.7m, to replace 105 older polluting financially unsustainable and operationally inefficient vehicles/mechanical plant equipment in line with Year 4 of the agreed vehicle replacement programme.

8.3

Reasons for Decision

8.3.1

Continue to purchase new greener vehicles as replacements for the older vehicles within the fleet using the Prudential Borrowing finance model. Purchasing new vehicles will significantly reduce high levels of vehicle exhaust emissions in line with SCC’s target of zero carbon by 2030.

8.4

Alternatives Considered and Rejected

8.4.1

Option 1 - Do nothing.

This is not a realistic option as our vehicles have become financially unsustainable, operationally inefficient, and no longer align to our strategic objectives in terms of the environment and lower emissions.

8.4.2

Option 2 – Lease vehicles.

There is a potential option to lease new vehicles as replacements for the older vehicles within the fleet.

This option is not financially viable in comparison to outright purchase options due to the Council having access to Prudential Borrowing; and the council retaining the residual value of the vehicle on completion of the loan period.

8.4.3

Option 3 - Purchase all zero emission and low carbon vehicles.

Currently, the Council does not have the charging infrastructure required at the depots, nor the home charging infrastructure to charge these vehicles. Furthermore, soft market testing highlights that these vehicles are 3 to 4 times more costly than the low emission vehicles.