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To meet the urgent plant replacement needs of
the Construction Works Team, to dispose of an aging and
increasingly unreliable Telehandler, and to purchase a nearly new,
suitably specified replacement machine. 
Additionally, to dispose of 2 excavators and to purchase a single
nearly new replacement machine. In both cases, to increase
resilience, reduce repairs and maintenance costs and overcome
health and safety concerns and to meet the requirements of the
service.
 
Replacement
telehandler:
Prudentially borrow up to a maximum of
£46,000 to cover the funding gap requirement. The borrowing
cost will be a maximum of £17,863 per annum funded from
recharges included in works income recharged to customers.
 
Replacement
excavator:
There is no borrowing requirement for the
excavator as it can be self-financed through the sale of existing
machines.
 
These purchases will be formally reflected in
a report to Cabinet in due course, but for reasons of urgency the
decision is being made to progress replacement immediately.
 

Reasons for the decision

The deterioration in the condition of the
existing 10 year old Telehandler creates
risks for safe operation, along with its lack of modern health and
safety features and insufficient reach (to provide access to higher
level buildings). This means that it is no longer fit for purpose
or reliable.
The existing excavators are either
increasingly subject to costly repairs and maintenance, or no
longer suitable for the pipeline of work coming forward for
CWT.
Whilst a report is scheduled for Cabinet and
Audit & Governance committees to cover the wider fleet and
plant requirements for the in-house repairs and maintenance, and
constructions teams, it is necessary to progress the specific
procurement of a Telehandler and Excavator more quickly due to
concerns around the current machines’ condition and/or
suitability. 
This decision will be taken under urgency
powers provided in the constitution.
 

Alternative options considered

Option 1 –
Temporary Hire
Temporary hire comes with increased costs as
no capital gain is received from the expenditure.  The cost per month will also be greater than the
borrowing repayment, even for a negotiated long-term hire. The
specification of hire machines does not always meet the
particular requirements of the service,
thereby presenting a sub optional and expensive solution.
 
Option 2
–Purchase of nearly new machine - RECOMMENDED OPTION
Recommended option mitigating some of the risk
of long lead times and cost of a new machine, ensuring a capital
gain from expenditure and that the right machine can be procured
for long term use. It is anticipated a purchased nearly new
machines would have a life of approximately 9 years before needing
replacement.