Issue - meetings

To receive a report from the Operations Manager for Street Scene and Open Spaces and Head of People, Performance & Waste considering an extension to its current contract regarding its fleet provision with SFS (Specialist Fleet Services Limited).

The Group had before it a report * from the Operations Manager for Street Scene and Open Spaces and the Head of People, Performance and Waste considering the extension of the Council’s current contract regarding its fleet provision with Specialist Fleet Services Limited (SFS).

The contents of the report were outlined with particular reference to the following:

·         Vehicles were a crucial part of the entire waste operation. They were large complex vehicles.

·         A contract with SFS had been in place since 2019 and had been agreed for 7 years. The Council needed to plan ahead and work needed to be done now to think about what happens after 2026. The report therefore sought an extension to the contract of a further 7 years taking it to 2033.

·         A summary of the ‘pro’s’ and ‘con’s’ regarding the recommendation to extend the contract with SFS as provided at section 2.7 of the report. The company’s extremely good position within the supply and purchase chain as well as the excellent relationship that existed between them and the Council was emphasised.

·         Quarterly meetings were held with them in an atmosphere of openness and honesty.

At this point in the meeting, the Group agreed to continue the discussion under Part II arrangements as it wanted to discuss confidential matters.

Returning to open session, it was:

RECOMMENDED to the Cabinet that it considers what additional supplier benchmarking or other market testing information might be made available to help inform a decision regarding the fleet contract.

Following this, it was FURTHER RECOMMENDED that:

a)    The decision to extend the contract with SFS (Specialist Fleet Services Limited) for a further seven year period to cover 2026-2033 at the earliest possible opportunity be approved.

b)    Lease borrowing in the Capital Programme be included.

c)    The negotiation of  the removal of the indexation rate from the master contract for all new vehicles as soon as possible and replace it with a fixed rate for the term of the individual contract be authorised.

(Proposed by the Chair)

Reason for the decision

The current contract provided for lease and maintenance contracts until June 2026, thereafter lease only for the remainder of the individual vehicle contract term. This exposes the authority to an increased financial risk in terms of the significantly increased costs associated with maintaining an aging fleet.

Note:  (i)         * Report previously circulated

(ii)        Cllr M Binks requested that his vote against the decision be recorded.