Decision Maker: Chief Executive Officer
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
That NYC, acting as Shareholder of NY Highways
Limited (the “Company”), has approved the Company
entering in to a lease for 31 gritters with anticipated effect from
1st September 2024.
Due to the Company being a
“teckal” compliant company, the Company’s
articles of association includes various reserved matters, which
are decisions that must be taken by the Company’s
shareholder. As NYC is sole shareholder of the Company, NYC’s
approval was required to enable the Company to enter into the
lease. In particular Reserved Matter 20 within the Company’s
articles of association requires shareholder approval for
“Agreeing to enter into or entering into agreements or
arrangements in respect of the hire/purchase or acquisition or
disposal of any material assets by the company the total value of
which exceeds £250,000 per annum.” Due to the value of
this lease, this falls within the remit of this reserved
The winter gritting fleet is required to undertake the treatment of 57 Priority 1 gritting routes on the North Yorkshire road network to prevent the formation of ice and snow. The current 2023/24 fleet consists of 78 vehicles of varying ages, the two older vehicles leases have come to an end and have had lease extensions to maximise their efficient use. The two expired leases account for 40No vehicles, a review has taken place within NYC and NYH to enable a suitable level of resilience, it has been determined that only 31No new vehicles are required to replace these. The reduction in fleet size from 78No to 70No is due to a reduction in the number of gritting routes from route optimisation (same km treated as previously), also because the fleet is newer and more reliable with less downtime experienced with the newest vehicles on the fleet that were purchased in 2021.
Extending existing gritter leases – the
existing leases have already been extended and the gritters
provided under these leases are at the end of their reliable life
for NYC. The maintenance costs of these vehicles are becoming
expensive and their reliability is not at the required level to
provide an effective service, therefore, it is not recommended to
continue extending these leases.
Purchase vehicles – This option has been considered and due to the cost of new gritter vehicles (cira £200k each), it is not affordable for NYH to purchase the vehicles. An options paper was presented to NYH Board and it was agreed that NYH would lease the required vehicles.
Publication date: 25/10/2023
Date of decision: 25/10/2023