Decision details

The purpose of the report is to seek Cabinet approval to proceed with the expenditure of:

·       £21.7m from the agreed Capital Plan for the VRP (years 2025/26 – 30/31), supporting critical fleet replacement and transformation models over the next 7-year forecast; an invest to save approach to managing fleet efficiencies.

·       £3.26m to replace Waste and Recycling hired fleet with Capital purchase, supporting the reduction of the Councils expensive fleet hire costs by generating a fleet whole-life cost saving model (offsetting hire costs Vs. Capital), removing reliance on unreliable hired fleet and providing frontline operational stability by Capitalising fleet requirements.

£2.93m to replace the current fleet of hired Bulk Gritting Vehicles (hired on an annual basis for the Winter Service gritting operation) with Capital purchase fleet, to achieve a financial saving from year 5 and add flexibility for the future in terms of how the service could be delivered.

Background papers

Fleet Replacement and Investment - Transport Services Capital Investment Vehicle Replacement Programme (VRP) - £21.7m, Invest to Save Waste and Recycling Fleet - £3.264m and Winter Service Review Bulk Gritters - £2.93m.

Engagement process

The Vehicle Replacement Programme (VRP) is a running Capital commitment programme, managed by Transport Services, a Corporate enabling service. The VRP is an investment in the Council’s fleet of the future, a fleet that enables and supports Council operations.

Engagement with services regarding specific fleet requirements is a rolling commitment, including services reviewing their individual operational delivery models; to ensure that the fleet required and procured is efficient, fit for purpose, the latest emissions standards and provides value for money for the people of Kirklees.

RESOLVED –

1)    That approval be given to proceed with expenditure of (i) £21.7m from the agreed Capital Plan for the Vehicle Replacement Programme (years 2025/2026-2030/2031), supporting critical fleet replacement and transformation models over the next six year forecast (ii) £3.26m to replace Waste and Recycling hired fleet with capital purchase, supporting the reduction of the Council’s expensive fleet hire costs by generating a fleet whole-life cost saving model (offsetting hire costs v capital), removing reliance on unreliable hired fleet and providing frontline operational stability by capitalising fleet requirements and (iii) £1.8m to replace the current fleet of hired bulk gritting  vehicles with capital purchase fleet to achieve a financial saving from year 5 and add flexibility for the future in terms of how the service could be delivered.

2)    That approval be given to the procurement and award purchase contracts for the replacement of critical fleet and hired fleet assets outlined within the three capital scheme proposals (£26.76m over three years).

3)    That authority be delegated to the Service Director (Highways and Streetscene) in consultation with the Cabinet Member, to commence procurement activity for Vehicle Waste Replacement, Waste and Recycling hired fleet and hired bulk gritters replacements in line with UK procurement regulations and Contract Procedure Rules.