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    • Issue - meetings

    Vehicle Sinking Fund

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    Meeting: 05/03/2019 - Planning, Environment & Sustainability Policy Development Group (Item 60)

    60 Vehicle Sinking Fund (00.37.31) pdf icon PDF 61 KB

    To receive a report from the Deputy Chief Executive (S151) to update the Environment PDG on the position of the Earmarked Reserve in the Vehicle Sinking Fund and suggest plans for the use of the residual funds.

    Minutes:

    The Group had before it the *report of the Group Manager for Finance explaining that the Council had been prudently putting aside funds to replace waste vehicles.

     

    She explained that the Group Manager for Street Scene and Open Spaces had agreed with Exeter City Council to tender a joint Vehicle Contract Hire contract. If agreed the new contract would eliminate the need for the Council to buy vehicles. The Cabinet were due to make a decision on the contract at its next meeting on 7th March 2019.

     

    She explained that the Council were due to replace some very expensive waste vehicles in the next year which was why the fund was significant.

     

    She confirmed that the sinking fund currently held approximately £2m and of this £1.3m was uncommitted; however £250k of this would be set aside for the servicing of the new contract going forward. The residual amount should be set aside to provide a source of funding should the Council decide to explore relocating or changing the service model.

     

    In response to members questions the Group Manager for Street Scene and Open Spaces explained that under the terms of the new contract as each vehicle came up for renewal it would be replaced on a supply and maintenance contract and those vehicles which were weren’t yet due for renewal would go on a maintenance contract only until they were replaced. The current fleet would be sold at the end of their term and would be replaced by the contract company, removing the need for the Council to buy vehicles outright.

     

    Members discussed if £250k, which would be available from the sinking fund to service the new contract, would be sufficient funding.

     

    The Group Manager for Finance explained that the £250k was a prudent estimate which could be reconsidered if found not to be sufficient.

     

    Note:  *Report previously circulated and attached to the minutes