Decision details

Funding requirement for Authority Financed Assets for waste, recycling and street cleansing contract

That the Strategic Director of Environment, in consultation with the Cabinet Member for Public Realm instructs the waste, recycling and street cleansing contractor to procure new street cleansing vehicles on behalf of the Council, at a total one-off capital cost of £1.153m, to be funded from borrowing.

The decision will allow the Contractor to deliver their proposed street cleansing solution in a way that garners the greatest financial benefit to the Council and delivers the services with the minimum possible carbon emissions possible bearing in mind the current market for such assets.

Option 1 – To not approve the capital requirement for the purchase of the Authority Financed Assets. This is not the recommended option. Without approval for purchase the Contractor’s street cleansing solution could not be enacted without recourse to hired vehicles, the costs of which would over time be greater than the purchase cost and would be passed through to the Council.

Option 2 - To approve the capital requirement to enable the services to be delivered. Should approval be granted the capital budgets will be adjusted as necessary through the quarterly capital reporting framework, per the Finance comments to this report. The annual financing costs and associated capital budgets will need to be considered as part of the Council’s MTFS Strategy in the relevant year.