Issue 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.