Report attached.

At the request of Members, a report that detailed the financial impact of the ULEZ enforcement that comes into force on the 29 August 2023, impacting across a wide range of council vehicles and departments.

The Sub-Committee was informed that the council operates a fleet of c. 200 vehicles across its various functions and the ULEZ compliance status summarised as follows by service:

Highways – operate vehicles 7500kg > 18,000kg and all are compliant for the up and coming ULEZ changes. The Highways vehicles are manufactured from 2014 > 2018 and the Highways contract is due for reprocurement in April 2024 at which point it is likely that the remaining in-house activities will be outsourced. It was stated that there is a freeze on replacing these operational vehicles which all have an operating life of 7 years. As these vehicles are all Euro 6 and are not subject to daily ULEZ charges.

Passenger Transport Services (PTS) – operate 62 vehicles ranging from 3500kg > 12000kg (15 seats to 73 seats). PTS had intended to replace 27 ‘out of life’, non-compliant buses last year and were at the award stage in November 2022 when they were asked to defer most of the replacements pending a review of Home to School Transport policy. It was agreed that PTS would apply to TfL for Community Grace Period Certificates, which allow a temporary exemption period up to October 2025. This has now been completed. The current PTS fleet which is a mixture of Euro 5 and Euro 6 Vehicles are currently ALL exempt from ULEZ daily charges. 

Grounds Maintenance and Environment/Neighbourhoods – both of these services have been the subject of deferred fleet replacement due to potential inclusion within procurement of larger contracts.

The Environment/Neighbourhoods function (mechanised sweepers) is now within scope of the new waste contract commencing with Urbaser in Autumn 2023.

It was stated that a decision was recently taken, when scoping the forthcoming Highways contract, to retain the grounds maintenance function in-house. A Non-Key ED is being prepared seeking permission to replace these vehicles and a procurement Gateway meeting is taking place this month to establish the agreed route to tender. However, pending delivery of the new grounds maintenance fleet assets, up to 32 vehicles will be subject to the ULEZ charge of £12.50 per day.

Housing – Most of the housing fleet is hired and ULEZ-compliant (Euro 6). There are also 8 x 3.5 tonne vehicles that are due for replacement and they will be subject to the daily ULEZ charge of £12.50 up to the point where replacement vehicles are available. Specifications are being agreed with the Housing service and a business case is being prepared to replace them.

Bereavement Services – The fleet are currently linked to the procurement of the grounds maintenance vehicles and all 4 vehicles are ULEZ non-complaint and are subject to the daily fine of £12.50. All are due to be replaced this year.

Pool Cars – The fleet usage is monitored over time relative to demand and as a result the number of pool cars has been reduced since its introduction from 20 to 10 remaining vehicles. It is proposed replace the remaining ‘owned’ fleet with electric vehicles once the charging infrastructure is in place. In the meantime, the current diesel vehicles are being sold and temporary (Euro 6) hired vehicles are replacing them.

Car Parks and Parking Enforcement – Both sections have been under review including their facilities operational base at Angel Way car park. On-going discussions are taking place regarding their fleet requirements including the possible provision of e-bikes. It was noted that Parking Services have 6 vehicles subject to the ULEZ daily charge of £12.50.

The report detailed a projected cost of replacing non-compliant vehicles. An appendix to the report identified the fleet and the following costs:

·       The daily, monthly and yearly costs of ULEZ fines per vehicle.

·       The ULEZ cost for this current year from 1^St September 2023

·       The estimated cost of replacing non-compliant fleet assets

·       The estimated cost of replacing all vehicles including the buses with TFL community grace period application certificates.

·       Identifies 201 vehicles with 68 ULEZ non-compliant.

The report detailed a projected schedule that identified a worst-case scenario in the unlikely event of no further fleet replacements being achieved during the current financial year and all non-compliant vehicles being used daily, the Council’s potential exposure to ULEZ fines would be approximately £103k in 2023/4.         

It was noted that about 40 vehicles will incur ULEZ charges. The council has now put in place a ULEZ account with TFL to cover charges in order to avoid payment fines.

Members were informed that Transport Services would most likely absorb all the charges than go down the line of individual cost centres as the service was a trading service that brings in an income.

The Sub-Committee noted the current position of the council vehicles.