Decision Details

1.  That the virement of £300,000 from the capital budget 24/25 Bath Tap Terrace allocation to the £2 million capital budget allocated to operational vehicles and equipment for 24/25 be approved. 

2.  That the expenditure of £2.3 million from the 24/25 capital programme for the purchase of 10 new RCV’s from the operational vehicles and equipment budget be approved.

To ensure continuity of service and an efficient, adaptable and resilient waste & recycling collection service for East Suffolk.

Whilst this report recommends the purchase of 10 RCV’s there is also an option to hire these vehicles. It costs approximately £1,300 per week to hire an RCV, this would therefore equate to £67,600 per RCV per year. A total of 10 RCV’s per year would cost £676,000.

Using an estimated life of 7 years for an RCV, hire cost for 10 RCV’s would be substantially more compared to the purchasing costs. Also, at the end of the 7 years an owned vehicle will have a residual value.

In conclusion, the preferred method of replacement would be to purchase, this provides better value for money, however this requires a comprehensive vehicle replacement programme to be worked up to ensure that peak levels of future replacement are avoided in the future. ESSL are working on such a strategy. 

Mr Jarvis, Strategic Director, and Mr Khan, Strategic Director, both declared that they were Directors of ESSL.