North Yorkshire Council
Environment Executive
Members
28 July 2023
Vehicle Procurement 2023-2024 for
former NYCC Services
Report of the Assistant Director
– Integrated Passenger Transport, Licencing,
Harbours,
Fleet and Operations and Countryside
Access
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1.0
Purpose of
Report
1.1
To seek approval from the Corporate
Director of Environment, in consultation with the Executive Member
for Highways and Transportation to proceed with the replacement
programme for vehicles used by former NYCC services and to procure
additional vehicles as required for additional commitments from
April 2023-March 2024 including short term hire.
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2.0
Background
2.1
The Fleet and Operations team
provides a fleet management function to all Council services. This
service includes the procurement, taxation, and maintenance of
vehicles.
2.2
The current North Yorkshire Council
vehicle fleet consists of 960 cars, vans, refuse collection
vehicles, truck, tippers, minibuses and other agricultural
vehicles.
2.3
This report relates only to vehicle
requirements for former NYCC services. Future reports will be
required to outline the Fleet Replacement Strategy and new Vehicle
Replacement Plan. We cannot proceed with replacements for all
services until the final former district and borough future budget
positions are clear. However, to delay all vehicle procurement
activity until the budget position is clear may affect service
delivery so there is a need to start sourcing vehicles as soon as
possible.
2.4
Former district and borough vehicle
capital allocation already approved will be used to fund former
district and borough replacements needed urgently.
2.5
Vehicles are procured using a mix of
methods including contract hire, lease, purchase, and spot hire.
The most economically advantageous method is chosen in most cases.
Vehicles are replaced in “rounds” that are batches of
vehicles.
2.6
The priorities for vehicle
replacement are to:-
·
enable services
·
maintain safety and
compliance
·
reduce fleet emissions
·
focus on customer
·
achieve best value
2.7
Additional vehicles - there may be
the requirement for additional vehicles in the period 2023-2024 not
included in the financial section. Any additional in-year vehicle
requirements will be authorised by the relevant Head of Service and
Fleet Management will confirm that sufficient budget or other
income is in place to meet this cost.
3.0
Proposed Replacement
Procedure
3.1 For new
additional vehicles directorates must provide a clear indication
that funding is in place and there is a clear need for the vehicle.
For replacement of existing vehicles, the directorate is required
to identify a continuing need for the asset as well as proof of
budget funding.
3.2 The
fleet section and user departments will discuss and agree suitable
replacement vehicles
considering corporate priorities and changing business
need.
3.3 When
replacing or providing a new vehicle, the following will be
included in the consideration:-
·
Condition of vehicle
·
Mileage of vehicle
·
Requirement of the user
department
·
Age of vehicle
·
Whole life costs incurred to
date
·
Projected maintenance occurrences
and costs
·
Existing fleet
utilisation
·
Type of fuel of existing
vehicle
·
Alternative fuels available and
viable
3.4 The
central Government buying standards for vehicles are as follows and
the fleet team use these as guidelines.
For cars:
3.4.1 The default
is zero or ultra-low emission at tailpipe with alternatives
considered only in exceptional circumstances: any diesel car
alternative must be certified as meeting Real Driving Emissions
(RDE) standards (Euro 6d-TEMP or Euro 6d) where possible Euro 6d.
Only compliant vehicles are now procured. Procurement decisions
contribute towards meeting the Government Fleet Commitment 1 to
electrify 25% of cars in central government department fleets by
2022.
3.4.2 Fleet
average of no more than 130 grams/kilometre of carbon dioxide (CO2)
emissions aiming for no more than 95 grams/kilometre from 2020
reflecting Regulation (EC) No 443/2009 setting emission performance
standards for new passenger cars as part of the Community’s
integrated approach to reduce CO2 emissions from light-duty
vehicles.
3.4.3 New cars
must have a minimum Euro NCAP safety rating and a minimum
‘Pedestrian Protection’ score (to be
defined).
For category N1 vans (‘light commercial
vehicles’)
3.4.4 The default
is zero or ultra-low emission at tailpipe with alternatives
considered only in exceptional circumstances: any diesel light
commercial vehicle alternative must be certified as meeting Real
Driving Emissions (RDE) standards (Euro 6d-TEMP or Euro 6d) where
possible Euro 6d.
3.4.5 Fleet
average of no more than 175 grams/kilometre of CO2 emissions aiming
for no more than 147 grams/kilometre from 2020 reflecting
Regulation (EU) No. 510/2011 setting emission performance standards
for new light commercial vehicles as part of the Union’s
integrated approach to reduce CO2 emissions from light-duty
vehicles.
For all vehicles
3.4.6 The default
is zero or ultra-low emission at tailpipe with all vehicles
certified as meeting a minimum of Euro 6 / Euro VI emission
standard.
3.5 North
Yorkshire Council plans to reach carbon neutrality by 2030 and the
fleet management section will always consider the use of ultra-low
emission alternatives that are practicable and
available.
3.6 In any
event, vehicles will be procured that meet the latest emission
standards with low CO2 roadside emissions with the aim
of ensuring the entire fleet meets Euro 6 standards where
applicable.
3.7 When
buying vehicles, we will make an assessment about which fuel type
the vehicle will be. This assessment will be based on the whole
life cost of the vehicle and fuel options, for instance diesel
versus battery electric. Where an alternative fuel vehicle is only
marginally more expensive than a fossil fuel vehicle then then the
alternative fuel vehicle will be chosen if practicable. The margin
cannot be quantified and would be subject to the professional
judgment of the fleet team on a case-by-case basis. Where an
alternative fuel vehicle is significantly worse value for money
then there will be a review
of operational requirements and an options appraisal will be
undertaken.
3.8 The
number of incidences where an internal combustion engine vehicle is
better value than a battery electric vehicle is likely to be low
and the total cost premium of choosing a battery electric vehicle
over a better value internal combustion engine vehicle is estimated
to be low.
3.9
Where an alternative fuel vehicle is
the best value option, but no charging point exists at its parking
location, and where it is not practical or possible to install a
charge point and other
charging options have been explored then a fossil fuel vehicle will
be chosen instead.
3.10 For
vehicles that will be parked overnight at an employee’s home
and a home charger is practical then an electric vehicle will be
chosen, and a charger installed in-line with the Council’s
home charging agreement.
3.11
The Fleet team will work in
collaboration with the Procurement and Contract Management Team in
researching market options and costs to develop replacement
options. All subsequent procurement activity will be
progressed in line with the Public Contracts Regulations 2015 (as
amended) and the Council’s own Financial and Contracts and
Procurement Rules. It is likely that there will be a range of
procurement strategies required dependent on the varying vehicle
types.
3.12
Vehicle utilisation will be
discussed with the requesting service prior to procurement.
Telematics information will be used to review the justification for
new and replacement vehicle(s).
3.13 All
vehicle specifications will be agreed with the requesting service
prior to procurement. The vehicles will normally be of a basic
standard specification meeting the minimum criteria to undertake
the duties required. All vehicles will be fitted with rear parking
sensors, air conditioning and cars will meet 5-star NCAP safety
ratings. Additional specification requirements will require
agreement with the relevant Head of Service.
3.14 The
specification of general vehicles will be agreed with the service
in advance of the tender process. Usually, the assessment will
include the cost of the vehicle and the fuel efficiency for the
estimated mileage and will include a decision on best value
regarding hire, lease, or purchase options.
3.15 The
specification high value or specialist vehicles will be agreed with
the service in advance of the tender process. Usually, the
assessment will include a quality assessment in conjunction with an
assessment of the cost of the vehicle and the fuel efficiency for
the estimated mileage and the assessment will include a decision on
best value regarding hire, lease, or purchase options.
3.16 The
procurement of vehicles for short term spot hire will usually be
undertaken using an open process. The assessment will be based on
fitness for purpose and then price only.
3.17 Prior
to an order being placed confirmation will be sought from the
budget holder that there is sufficient budget available to fund the
vehicles.
3.18
All individual orders will be
approved by the relevant signatory in line with the agreed
delegation scheme.
4.0 Alternative
Options
4.1 We could
continue to operate the existing vehicles, but this may lead to
reliability issues due to the age of the vehicle leading to service
disruption.
4.2 Many of
the vehicles are in or near to the secondary leasing periods and
lease companies can request the return of vehicles with little
notice. This would require expensive short-term hires and may lead
to service disruption.
5.0
Financial Implications
5.1
The vehicle replacement for former
NYCC services for the period April 2023 - March 2024 is estimated
to be 83 vehicles with a whole-life vehicle hire/lease/ purchase
cost of c £1.586m. The contract hire vehicles being replaced
will reach or exceed their primary contract period before March
2024.
5.2 This
procurement is within the Council’s policy framework and
confirmation is sought to ensure appropriate budgets exist within
the requesting service before the order is placed.
5.3 Current
estimated vehicle replacement requirements:
|
Vehicle Type
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Total
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Cars
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40
|
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Vans
|
22
|
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Minibuses
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21
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5.4
Estimated lifetime purchase / contract hire / lease base vehicle
values based on a like-for like funding method:
|
Area of spend
|
Possible future lease costs from
revenue
|
Possible future Invest to Save
requirement
|
Total Cost per area of spend
|
|
Environment
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£718k
|
£138k
|
£856k
|
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Central Services
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£184k
|
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£184k
|
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CYPS
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£58k
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£32k
|
£90k
|
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HAS
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£96k
|
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£96k
|
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Outdoor Education Team
|
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£360k
|
£360k
|
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TOTAL
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£1.056m
|
£530k
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£1.586m
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5.5 The
funding method for the replacement vehicles may change from the
current method on procurement.
5.6 At the
time of procurement an appraisal of possible funding options will
be undertaken to determine the best value funding method. Where
purchasing vehicles is better value, then a request will be made to
secure an invest to save to loan.
5.7
Short-term hire of vehicles may be necessary to cover protracted
maintenance downtime or urgent operational requirements. Short term
hire may also be used if there is no long-term security of funding.
The fleet team will seek confirmation of revenue budget prior to
short term hire award with the relevant service.
5.8
Contracts for contract hire vehicles may be extended into secondary
agreed periods to facilitate an orderly replacement programme,
cover extended replacement lead times or in cases where there is no
long-term guarantee of funding. The Fleet Management Section will
monitor these extensions to ensure best value.
6.0 Legal
Implications
6.1
Procurements will be undertaken for
vehicles in accordance with the Council’s Procurement and
Contract Procedure Rules, and where applicable, the Public
Contracts Regulation 2015. The procurement method proposed will be
agreed with Legal and Democratic Services.
7.0
Equalities Implications
7.1
Due to the large number of
vehicles involved, along with the number of employees who will be
using these vehicles there may be a requirement to apply
appropriate reasonable adjustments for the use of vehicles and this
will be identified and addressed by the service upon order and
receipt of the vehicle on a vehicle-by-vehicle basis.
7.2
Passenger vehicles used on registered local bus services will be
replaced with vehicles that support the enhancement of wheelchair
accessibility on North Yorkshire Council services.
7.3 An
Equality Impact Screening Form is attached as Appendix
A.
8.0
Climate Change
Implications
8.1
A Climate Change Impact Assessment
is attached as Appendix B.
8.2 There
are 11 vehicles that are currently Euro 5 which will be replaced
with Euro 6 emission standard.
8.3 The
default fuel type will be battery electric wherever it is assessed
as a viable option and good value option.
9.0
Reasons for
Recommendations
9.1
The procurement of new vehicles will
allow the Council to maintain an interim vehicle replacement
programme to ensure services have access to reliable, safe, and
sustainable vehicles.
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4.0
10.0
Recommendation
10.1
It is recommended that the Corporate Director of Environment, in
consultation with the Executive Member for Highways and
Transportation, agrees to authorise the commencement of a
procurement process for requirements for former NYCC services and
including short term hire for all services.
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Karl Battersby
Corporate Director of Environment
County Hall
Northallerton
14 July 2023
Report Authors and presenters: Steve Hood,
Area Fleet Manager
Kelly Baxter, Fleet Management
Officer
Background documents:
none
