Reasons for urgency

The existing fleet of diesel fuelled vehicles has reached the end of its useful life.  The Chairman is of the opinion that this item is urgent due to the existence of a time limited opportunity to secure the best possible value in the procurement of electric vehicles, in pursuance of the Council’s climate change commitments.  It is also important to ensure the continuity of the Meals at Home service, which is used by a number of vulnerable Runnymede Borough Council residents.

Background

The report for this item was published as part of the agenda for the Community Services Committee on 16 March 2023.

The Committee’s approval was sought to enter into a new lease arrangement with Apetito for a fleet of 4 electric vehicles/diesel oven option for a period of 36 months to deliver the Council’s Meals at Home service.  Further, approval was sought to recommend Corporate Management Committee grant a waiver to Contract Standing Orders (CSO 2.6.1) to enable this proposal, Apetito being the only company that could provide the services required.

Officers advised that an opportunity had arisen which would allow the Council moved to using electric vehicles for Meals at Home, through its contractor, Apetito.  This was an important and timely step towards achieving carbon net zero emissions.

A full review of Meals at Home had been undertaken between October 2022 and January 2023.  A number of options had been considered for future provision, all of which had undergone an options appraisal, the details of which were noted by the Committee.

The preferred option (6c), and the one which Members agreed was the best, was to enter into an agreement with the existing suppliers, Apetito, to have 7 electric lease vehicles across Runnymede and Surrey Heath and for Surrey Heath to purchase a small electric van as contingency and to deliver bulk orders and deliveries in close proximity.  The leased vehicles would be under a full maintenance contract.  Officers were currently testing the electric vehicles (Renault Kangoo ZE) for efficiency and quality as well as investigating the necessary electric charging infrastructure.

Members recognised the need to act quickly as the service was currently out of contract and the vehicles were available now as a one-off opportunity without the previously anticipated 13+ months lead in.  This proposals would require a supplementary revenue estimate  increase per annum of £15,717 and a supplementary capital estimate increase of approximately £15,000 to instal the infrastructure required.  This was currently with the Council’s Assets and Regeneration business centre, the assessment not having yet been completed, with no provision for it in the Capital Programme.  The total for the 36 month contract for 7 vehicles was £175,140 excluding VAT, with Runnymede contributing 4/7, totalling £100,080.

Officers did caution that should the proposed option become unviable, the fall back option was to lease 7, 3.5 diesel vehicles with diesel powered ovens.  This was effectively continuation of the current delivery model and replacement of vehicles for which a supplementary revenue estimate increase of £11,139 was required.

The legal implications were noted, including the need for a waiver to Contract Standing Order 2.6.1, as Apetito were the only suitable provider, and a consequential exemption from the Public Contract Regulations 2015 regarding advertising.  Legal advice would also be needed to ensure the contract with Apetito was acceptable.

Members welcomed the possibility of steps being taken to address climate change and were keen for the positive message to be communicated and promoted on the vehicle livery.

Members also asked that the viability appraisal of the infrastructure should include consideration of installing solar panels at the Depot.

The Committee was very supportive of the preferred option and thanked Officers for their dedicated work to deliver Meals at Home.

Recommendations

RESOLVED that –

1.     Members recommend for approval the entry into a new lease agreement with Apetito for 4 x electric vehicles/diesel oven option for the period of 36 months and;

·       A supplementary budget estimate of £15,717 per annum and;

·       Members approve a one off virement of £15,000 from existing Community Services budgets for the infrastructure requirements relating to use of electric vehicles.

In the event that the preferred option of electric vehicles is unviable:

·       Members recommend for approval the entry into a new lease agreement with Apetito for 4 x diesel vehicles, and;

·       A supplementary budget estimate of £11,139 per annum for a period of 5 years

2.     Members recommend to Corporate Management Committee that a waiver to Contract Standing Orders (CSO2.6.1) is approved to direct award a contract for the agreed recommended option to Apetito without advertising requirements as Apetito are the only company that can provide the services required.

The existing fleet of diesel fuelled vehicles had reached the end of its life.  The Chairman was of the opinion that this item was urgent due to the existence of a time limited opportunity to secure the best possible value in the procurement of electric vehicles, in pursuance of the Council’s climate change commitments.  It was also important to ensure the continuity of the Meals at Home service, which was used by a number of vulnerable Runnymede Borough Council residents.

The discussions of the Community Services Committee were noted.

The desire to move the Meals at Home fleet to electric vehicles, in pursuance of the Council’s desire to address climate change, was discussed.  There were however various technical challenges relating to power supplies at the depot.  Consideration also needed to be given to the service’s continuity and the vehicles’ ability to undertake reliable deliveries.  A backup option, that allowed the purchase of diesel powered vehicles, was therefore required.

The Committee noted that, regardless of the vehicle type purchased, other efforts would be made to ensure that the Council continued to deliver towards its climate change commitments.

It was resolved that:

1)    A new lease agreement with Apetito, for 4 x electric vehicles/diesel oven option, for a period of 36 months be agreed.

2)    A supplementary budget estimate of £15,717 per annum be agreed.

3)    A one off virement of £15,000, to be taken from existing Community Services budgets, for the infrastructure requirements relating to use of electric vehicles, be approved.

4)    In the event the preferred option of electric vehicles being unviable:

a)    Entry into a new lease agreement with Apetito for 4 x diesel vehicles be agreed.

b)    A supplementary budget estimate of £11,139 per annum for a period of 5 years be agreed.

5)    A waiver to the Contract Standing Orders (CSO2.6.1) be approved to direct award a contract for the agreed recommended option to Apetito, without advertising requirements, as Apetito were the only company that could provide the services required.