Agenda item

This report relates to the purchase of vehicles and plant to fulfil service delivery requirements.  Vehicle purchase as opposed to lease or rental will ensure best value for money, and also allows for vehicles to be fitted out to meet essential health and safety, and operational requirements.

The building maintenance service currently has fifteen vehicles on long term hire in order to meet the longer term demand resulting from the insourcing of services for;

·       Damp and Mould investigation and treatment

·       Water quality testing

·       Repairs and maintenance for the Poole area (previously Poole Housing Partnership)

·       Increased budget for kitchen and bathroom refurbishments

·       Requirement to meet EPC to C standard

The service has also expanded it’s disabled adaptations fitters in order to meet demand and delivery targets within Grant funded disabled adaptations work.

Additionally, the Construction Works Team currently have one hire vehicle for a bricklaying post that has now been filled.

The need for vans is based on the longer-term needs of BCP Homes, which are supported by budget provision within the HRA (20 vehicles) and the requirement for an extra vehicle for the Construction Works Team (CWT).

These purchased vans will replace the currently rented vehicles and also provide for additional posts necessary to fulfil service requirements. Each operative typically requires a van to satisfy the requirements of their role, including safe tool and materials transportation and storage, and out of hours response.

The Construction Works Team plant replacement strategy recommends the purchasing of a JCB 535/125 or equivalent Telehandler and 9 Tonne Excavator, partly funded by the sale of three existing, older items of plant that are nearing the end of their usable life.  There is a requirement to prudentially up to £46,000 to meet the funding shortfall.  This will be repaid over the next three years from income generated by the team through the work it delivers. This will ensure that the service avoids high rental costs, have the right specification plant for the works undertaken, can partly fund the new vehicles through resale of old plant and have reliable safe plant for future development.

The repayment of the prudential borrowing required for both areas will be fully funded by the service and included within its recharging rates to services and customers. Both the Building Maintenance and Construction Works Team operate on a full cost recovery basis.

It is RECOMMENDED that Cabinet recommends that Audit and Governance Committee:

(a)            Approves the use of prudential borrowing not exceeding £525,000 for 21 vehicles to be purchased by fleet management to support the work of the Building Maintenance and Construction Works Team service. These vehicles to then be managed within the council’s fleet management strategy.

It is RECOMMENDED that Cabinet and Audit and Governance Committee:

(b)            Note that CWT plant purchases with up to £46,000 prudential borrowing requirement have been progressed under urgency powers due to health & safety considerations.

Voting: Unanimous

Portfolio Holder: Finance

Reason

To ensure the vehicle and plant requirements of the council’s maintenance and construction teams is provided in a cost effective and safe way, allowing the services to contribute to the council’s wider aims, whilst being self-funded.

The Portfolio Holder for Finance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'I' to these Minutes in the Minute Book.

Cabinet was advised that the report related to the purchase of vehicles and plant to fulfil service delivery requirements, and that vehicle purchase as opposed to lease or rental will ensure best value for money, and also allows for vehicles to be fitted out to meet essential health and safety, and operational requirements.

Cabinet was informed that the building maintenance service currently has fifteen vehicles on long term hire in order to meet the longer term demand resulting from the insourcing of services for;

·       Damp and Mould investigation and treatment

·       Water quality testing

·       Repairs and maintenance for the Poole area (previously Poole Housing Partnership)

·       Increased budget for kitchen and bathroom refurbishments

·       Requirement to meet EPC to C standard

Further to this Cabinet was advised that the service had also expanded it’s disabled adaptations fitters in order to meet demand and delivery targets within Grant funded disabled adaptations work.

Additionally, the Construction Works Team currently have one hire vehicle for a bricklaying post that has now been filled.

In relation to this Cabinet was informed that the need for vans is based on the longer-term needs of BCP Homes, which are supported by budget provision within the HRA (20 vehicles) and the requirement for an extra vehicle for the Construction Works Team (CWT), and that these purchased vans will replace the currently rented vehicles and also provide for additional posts necessary to fulfil service requirements. Each operative typically requires a van to satisfy the requirements of their role, including safe tool and materials transportation and storage, and out of hours response.

Cabinet was advised that the Construction Works Team plant replacement strategy recommends the purchasing of a JCB 535/125 or equivalent Telehandler and 9 Tonne Excavator, partly funded by the sale of three existing, older items of plant that are nearing the end of their usable life and that there is a requirement to prudentially borrow up to £46,000 to meet the funding shortfall.  It was advised that this will be repaid over the next three years from income generated by the team through the work it delivers, and that this will ensure that the service avoids high rental costs, have the right specification plant for the works undertaken, can partly fund the new vehicles through resale of old plant and have reliable safe plant for future development.

In addition Cabinet was informed that the repayment of the prudential borrowing required for both areas will be fully funded by the service and included within its recharging rates to services and customers, and that both the Building Maintenance and Construction Works Team operate on a full cost recovery basis.

It is RECOMMENDED that Cabinet recommends that Audit and Governance Committee:

(a)            Approves the use of prudential borrowing not exceeding £525,000 for 21 vehicles to be purchased by fleet management to support the work of the Building Maintenance and Construction Works Team service. These vehicles to then be managed within the council’s fleet management strategy.

It is RECOMMENDED that Cabinet and Audit and Governance Committee:

(b)            Note that CWT plant purchases with up to £46,000 prudential borrowing requirement have been progressed under urgency powers due to health & safety considerations.

Voting: Unanimous

Portfolio Holder: Finance

Reason

To ensure the vehicle and plant requirements of the council’s maintenance and construction teams is provided in a cost effective and safe way, allowing the services to contribute to the council’s wider aims, whilst being self-funded.