30 June 2015
Subject:
Status:
Report ref:
Ward(s):
Replacement of council owned vehicles
Open
65/2015
All
Key Decision: Yes
Key Decision / Ref: 929/FR
Report of:
Contact officer:
Appendices:
Head of Community Services
Steve Featherstone, Operations Manager
Tel: 01256 845335
Email: steve.featherstone@basingstoke.gov.uk
A
– 2015/16 vehicle procurement
1 Executive Summary
1.1
The purpose of this report is to seek the Portfolio Holder’s approval to release the capital budget for the replacement of council owned vehicles in 2015/16.
1.2 This budget is primarily required to replace Community Services operational vehicles and plant which are crucial to maintain high standards of cleansing and grounds maintenance within the borough.
1.3 Additional vehicles are also required to fulfil the delegated service agreement for grounds maintenance with Hart District Council and the replacement of two
Community Safety Patrol service vehicles.
2 Recommendation
2.1 It is recommended that:
The Cabinet Member for Finance and Resources, approves the release of the 20 15/16 capital budget of £581,000 for the replacement of council owned vehicles.
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PRIORITIES, IMPACTS AND RISKS
Contribution to Council Priorities
This report accords with the council’s Budget and Policy Framework and directly supports the Council Plan priorities of protecting our environment and creating neighbourhoods where people feel safe and want to to live.
MAIN CONSIDERATIONS
3 The Proposal
3.1
This report seeks the portfolio holder’s approval to release the budget for the replacement of council owned vehicles for
 2015/16 (£581,000)
3.2 The Community Services Operations Team continues to carry out rigorous assessments of the suitability of vehicles in operation within the current fleet.
This helps to ensure the services provided are run as efficiently as possible.
Close monitoring of relative running costs assists with this and informs optimum replacement policy.
3.3 The Operations Team maintains an inventory of all its vehicles and plant and records a range of operational data such as servicing records and information related to the acquisition such as date, cost and expected useful life. The inventory is a live system and is used to plan the replacement of vehicles and plant. The council will endeavour to get the best price for all vehicles through its procurement which is likely to include a tender process and purchase via a framework agreement.
3.4 It is considered best value to purchase vehicles rather than lease because of the often unpredictable, unreasonable and expensive penalties at the end of lease agreements. In budgeting terms capital purchase gives more certainty and the council generally receives income from sales via auction at the end of the useful life.
3.6 The 2015/16 capital budget will mainly be used to purchase up to 24 ride-on grass cutters. 21 of these are used to cut grass within open spaces and residential areas throughout Basingstoke and three are operated by the Hart team. Purchasing these within the same financial year proves to be an efficient and cost effective method.
3.7 The budget also includes funding to replace the two vehicles utilised by the
Community Safety Patrol Team. These vehicles are essential to ensure officers can be deployed to communities which cannot effectively be reached on foot or by bicycle or in circumstances that require a rapid response.
3.8 Details of the vehicles now scheduled and planned for procurement in
2015/16 are listed in appendix A. Eco-friendly vehicles conforming to the highest standards of emission reduction and fuel conservation will be purchased where appropriate.
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4 Options Analysis
4.1 Option 1 - do not replace and continue to operate with current fleet. This will increase associated vehicle running costs whilst decreasing service reliability resulting in reduced service levels for council operations. The council will not be able to deliver the delegated grounds maintenance service with Hart
District Council as proposed, or maintain an effective Community Safety Patrol service.
4.2 Option 2 - the option to lease rather than purchase was considered however as stated in paragraph 1.4 it is felt that purchase offers best value.
4.3 Option 3 (preferred option) - continue to purchase council vehicles and plant as per schedule and release requested capital budget for 2015/16.
5 Corporate Implications
5.1 Financial Implications
5.1.1 The 2015/16 Finance and Resources Portfolio capital programme includes a total budget of £581,000 (£530,000 BDBC and £51,000 Hart) to support the replacement of council owned vehicles .
5.1.2 Appendix A gives an indication of the price and types of vehicles that are to be purchased. The precise details may change depending on the operational needs and procurement process but will be met from the allocated budget.
5.1.3 The costs of the Hart vehicles are factored in to the delegated service agreement for Grounds Maintenance and Street Cleansing.
5.1.4 The costs of running and maintaining these vehicles will be met from within current budgets.
5.2 Risk Issues
5.2.1 None identified.
5.3 HR Issues
5.3.1 None identified.
5.4 Equalities
5.4.1 None identified.
5.5 Legal Implications
5.5.1 None identified.
5.6 Any Other Implications
5.6.1 Two vehicles for the Community Safety Patrol Team will support the council’s objectives with regarding to reducing crime and antisocial behaviour.
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6 Communication and Consultation
6.1.1 None.
7 Conclusion
7.1 To ensure efficient future service provision and lower vehicle running costs, it is requested that the portfolio holder agree to release the budget for the replacement of council owned vehicles for 2015/16.
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