Decision Maker: Executive

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: November 4, 2024

Purpose: To review the Council’s five -year rolling Vehicle Replacement Programme (VRP) and make recommendations for capital expenditure to continue to move to a modern fleet of commercial vehicles and ensure that the Council has a resilient and cost-effective fleet, as well as reducing its carbon emissions.   In May 2023, the Executive approved a £3.8M rolling five-year Vehicle Replacement Programme for the Council’s vehicle fleet, to be updated each Autumn to inform budget setting for the following year and the Medium-Term Financial Strategy.   The 2023 Programme proposed the replacement of 57 vehicles over the five years to 2028.  To date, 19 vehicles have been replaced at a cost of £845,000.  Eight were new vehicles, with the remainder used.  As at the end of September 2024, two of the replacement vehicles were electric and HVO is used in around one third of the vehicle fleet.   The 2024 Annual Review proposes a new rolling five-year Vehicle Replacement Programme to 2029/30, estimating that 50 vehicles will need to be replaced at an estimated maximum cost of £4.68M.  All available replacement vehicle options will be considered and assessed against estimated whole life costs, impact on fleet carbon emissions and availability of capital budget.  The lifetime cost analysis, which takes account of capital purchase and running costs over a 10-year period, highlights that diesel vehicles remain the cheapest vehicle type at present for most of our fleet.   The recommended Vehicle Replacement Programme will reduce the carbon emissions of the Council’s fleet in line with the Council’s aspiration to become net zero by 2030.  Subject to other decisions, the five new food waste vehicles will be duelled with HVO when the service commences in March 2026, which will effectively negate the carbon impact of these additional fleet vehicles.  The use of HVO in the whole diesel fleet to reduce carbon emissions needs to be balanced against the additional cost.

Content: RESOLVED that the Executive:   (a)  endorses the 2025-2030 Vehicle Replacement Programme;   (b)  agrees to take forward a sum of £693,900 for consideration in the General Fund capital budget for 2025/26, funded from capital reserves, for the purchase of nine vehicles; and   (c)  agrees to take forward a sum of £83,800 for consideration in the Housing Revenue Account (HRA) capital budget for 2025/26, funded from capital reserves, for the purchase of two vehicles.