(a)       Decision(s)

That Council be recommended to:-

(1)  Make a provision of £3.6 million within the Capital Programme for the procurement and purchase of a new waste collection fleet, subject to OJEU and the satisfactory conclusion of negotiations.

(2)  Approve a capital budget of £9.2 million for option 1 and option 1a in the report submitted for the depot development project in order to provide certainty of compliance with statutory and regulatory obligations relating to waste collection, waste transfer and fleet parking.

       (It being noted that a review of the depot development project will be undertaken before the implementation of option 1 to ensure that the requirements have not significantly changed regarding staff parking and waste storage at the site, and to identify other improvements or use of this area of the site following expiry of the tenancies of the existing units in December, 2018).

(3)  Permit additional borrowing up to a maximum of £12,860,000 in order to fund these schemes, whilst recognising that these amounts may be reduced when a review of capital resources takes place later this financial year as part of the normal budget development process.

(4)  Require officers to make the necessary adjustments to the Council’s Treasury Management Strategy and Medium Term Financial Plans for 2017/18 and beyond, consistent with the above.

(b)       Reason(s) for Decision(s)

            Full depot and waste transfer infrastructure will give the Council certainty regarding health and safety and environmental compliance in the mid term and will allow for growth in households and accommodate additional waste during this period.

            The enhanced waste workshop will give the Council flexibility in managing its own fleet and improve operations by reducing vehicle down time.  In addition, the workshop allows for income generation from HGV testing and expansion for taxi and privately owned vehicle MOTs.

            Changing the procurement approach for the fleet from leasing to outright purchase will save the Council around £300,000 per annum from reduced borrowing costs and will contribute to paying off the capital loan for the depot infrastructure.

(c)       Alternative Options Considered

            To do nothing.  However, currently the site is not fit for purpose and has been identified through the business risk assurance assessment as the Council’s primary health and safety risk.

Alternative sites to which the depot might possibly be transferred have been researched.  However given growth and land constraints, no suitable alternative site was identified that met the Council’s requirements.

(d)       Relevant Scrutiny Committee

            Finance and Services.  That Committee received a similar report at its meeting on 4 October, 2016 and supported the proposals.  However as the recommendations will be considered by full Council, they are not subject to call-in. 

(e)       Conflicts of Interest / Dispensation(s)

None.