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.