Issue - meetings
Release of Capital Programme – Development Pool allocation for the purchase of an electric van for the Engineering Team within Property, Investment and Regeneration
Meeting: 13/07/2021 - Cabinet (Item 22)
PDF 538 KB(Cabinet Members with Special Responsibility Cllrs Hamilton-Cox & Whitehead)
Report of Director for Economic Growth & Regeneration (report published on 6 July 2021)
Minutes:
(Cabinet Members with Special Responsibility Councillors Hamilton-Cox & Whitehead)
Cabinet received a report from the Director for Economic Growth & Regeneration to request the release of £15K of allocated budget within the Capital Programme – Development Pool.
The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:
Options Analysis Option 1 – Continue with current diesel van hire arrangement (do nothing)
Advantages: Current van is fit for purpose for transportation, maintenance, and monitoring activities.
Disadvantages: Takes no action to tackle climate emergency and the goal of being net zero carbon by 2030.
Risks: The approach is different to that being applied to other fleet/hire vehicles and the Council is not seen to lead by example by switching to EV.
Options Analysis Option 2 – Switch to a EV hire vehicle
Advantages: Helps to achieve the Councils zero carbon priorities
Disadvantages: Hire of like for like EV vehicle would be a substantial increase in current annual hire costs for a diesel vehicle.
Risks: The approach is different to that being applied to other fleet/hire vehicles and the Council is not seen to lead by example by switching to EV.
Options Analysis Option 3 – Purchase a EV hire vehicle from the Council Capital Programme
Advantages: Helps to achieve the Councils zero carbon priorities
Utilises revenue savings on current contract hire budget within 5 years
Leaves residual value at the end so more cost effective than hiring
Disadvantages: None
Risks: n/a
The officer preferred option was Option 3.
Councillor Hamilton-Cox proposed, seconded by Councillor Whitehead:-
“That the recommendation, as set out in the report, be approved.”
Councillors then voted:-
Resolved unanimously:
(1) That Cabinet approves the release of £15,000 from the development pool section of the general fund capital programme for the purchase of an electric van for the Engineering team and notes that the purchase cost is likely to be in the region of £18,000.
(2) That the general fund revenue and capital budgets are updated as appropriate, as part of the forthcoming budget exercise.
Officer responsible for effecting the decision:
Director for Economic Growth & Regeneration
Chief Finance Officer
Reasons for making the decision:
The decision is consistent with Council Priorities as switching from diesel aligns with the Council’s aim towards carbon zero. The engineering team currently have access to a Peugeot Partner diesel van on a long-term hire agreement. Transferring to its electric van equivalent on hire is not cost effective so an allocation was made in the GF Capital Programme Pool of £15,000 to purchase a van outright as part of the council’s vehicle capital programme. This will generate annual revenue savings within the coast protection budget area of approximately £3,000 per annum, subsequently leading to a minimal cost over the life expectancy of the vehicle.