Agenda item

            The Committee was reminded that, at its meeting on 24th April, 2009, it had approved the invitation of tenders and the awarding of contracts for the replacement of the fuel storage facilities and associated infrastructure works at the Duncrue Complex.  There had been complications with the initial procurement process for the fuel management system element of the project in so far as the successful tenderer had been bought over and could no longer meet the specification requirements.  The procurement strategy had been revisited and the works element was subsequently combined with the fuel management element and a contract had been eventually awarded in October, 2012.  The works were currently ahead of programme and it was anticipated that the new facility would be operational by March, 2013.

            The Committee was informed that, additionally, in June, 2012, as part of the Council’s efficiency agenda, the Strategic Policy and Resources Committee had approved a high level corporate wide Fleet Improvement Programme.  That had been based on recommendations from the review of the Council’s fleet provision undertaken by consultants in Autumn, 2011.  One of the key recommendations from that report was that the Council’s fuel management system should be addressed as a corporate issue.

            The Duncrue fuel facility was operated by Cleansing Services but a number of non-Cleansing Services vehicles also used the facility for refuelling.  Refuelling facilities were available at eleven other Council locations, ten operated by the Parks and Leisure Department and two by the Health and Environmental Services Department, including Duncrue.  The contract for the new fuel storage facility had been tendered before the Audit, Governance and Risk Services investigation had been instigated and included on-board devices for all of the cleansing vehicles (180).  Those devices enabled automated data collection without manual intervention and the vehicle specific data was collated by the new Jigsaw fuel management system.  In October, 2012, following an investigation by the Audit, Governance and Risk Services, it had issued key control guidance on the fuel storage and dispensing of fuel.  That guidance included a specific key control measure, that is, “Management should undertake periodic reviews of fuel usage per machine in order to determine whether or not the usage was commensurate with the work the machinery was carrying out.  High or irregular usage levels should be investigated and reported upon”. 

            The existing contract related solely to the 180 vehicles that made up the waste collection and street cleansing part of the Council’s fleet.  However, although it was not impossible, it would be difficult for any non on-board devices to be refuelled at the facility.  Were those types of vehicles to refuel elsewhere, that would raise major concerns both because of potential delays and impact on operations and also because such refuelling would not be recorded against the vehicle.  Cleansing Services had therefore made a request to expand the contract to include on-board devices for 167 other Council fleet vehicles, which would leave just 29 vehicles, the majority of which were mowers and could not accommodate an on-board device.  Of the 167 additional vehicles, 90 had been identified as having refuelled at the Duncrue facility in the period from April till November, 2012.

            There were no available funds within the existing capital budget for the project, as the anticipated final account was expected to be close to the approved project budget of £630,000.  The estimated cost of fitting all 167 additional requested on-board devices was £52,000 and it was proposed that the capital budget for the project should be increased by that amount, with the expenditure financed from the capital financing budget for 2013/14.  As part of the new fuel facility project, the contractor was providing training on the fitting of on-board devices and thus providing a potential future saving.

            The Committee agreed that the current contract for the fuel storage facility should be expanded to include an additional 167 on-board devices as outlined.