Purpose

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.

Content

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.