Wednesday 12 June 2024
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Nottingham

Council to spend £1.1 million in purchase of Nottingham City Homes vehicle fleet

Nottingham City Council (NCC) has agreed to purchase the fleet of vehicles from Nottingham City Homes (NCH) at a total value of £1.12 million.

The decision is part of the transfer of the Housing Service from NCH to the Council, which took effect on March 31, 2023.

Key Decision and Details

The purchase encompasses a fleet of 288 vehicles primarily used for repairs, maintenance service, independent living service, and pool vehicles.

The decision to purchase rather than lease was made after considering the age and condition of the vehicles, and the need for replacement within a few years.

The value of the fleet was assessed by NCC, who has extensive knowledge of the vehicles as they have held the contract for maintaining them.

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Other options such as assignment of fleet assets were dismissed due to legal constraints, and leasing was rejected due to the varying conditions and mileages of the vehicles.

Reasons and Implications

The decision to purchase the fleet was driven by the need for a smooth transition of the Housing Service Operation to NCC. The legal ownership of the vehicles has already been transferred, and the purchase is seen as securing the best value in the circumstances.

The Housing Revenue Account (HRA) Capital Programme approved in February 2023 included an indicative amount for the purchase and replacement of the fleet at £2.0 million. Following this decision, £1.12 million will move into the approved Capital Programme for the purchase of the vehicles.

Legal and Financial Advice

Legal advice confirmed that the proposal presents no significant legal issues, and the exceptional circumstances warranted the decision. Finance advice noted that the expenditure is funded by HRA Capital Receipts, and procurement advice stated that the purchase raises no significant procurement issues.

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