Contact: Kevin Ings, ext 6986

1. Summary

1.1 The following decision is sought:

That, subject to confirmation of Basingstoke and Deane Borough Council funding, approval be given for the purchase of four new Optare Alero vehicles to be used on contracts for the operation of new Cango services in the East Hampshire and Basingstoke and Deane areas of Hampshire."

2. Reason

2.1 Approval is needed to release the funds to introduce new Cango services in the East Hampshire and Basingstoke and Deane areas.

3. Other Options Considered and Rejected

3.1 Taking no action.

4. Conflicts of Interest Declared by the Decision Maker or a Member or Officer consulted - None.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the Matter being dealt with if Urgent - Not applicable.

Approved by: Date:

Councillor K B Estlin

7. Background

7.1 The introduction of the first Cango services around Andover involved converting four existing bus services to demand responsive services and integrating these with school contracts. With an initial passenger base to build upon and the finance used to support the previous services the longer term sustainability of these services is now looking promising.

7.2 With over 700 registered users and 500 passenger trips per week now being provided there is no doubt that the Cango experience is proving to be very successful. By the fifth month of operation, 68% more passengers were travelling on the Cango services than on the previous network of services they replaced.

7.3 A similar approach has been used more recently to introduce services in Leigh Park and the New Forest. It is now proposed to role this process out to the East Hampshire and Basingstoke and Deane areas of Hampshire as part of the County Council's new approach to providing public transport in rural areas.

8. Rural Bus Challenge Bid 2002

8.1 Hampshire County Council's efforts to improve access to public transport in rural villages through the introduction of the Cango services have been recognised by the Government with the award of more than £736,000 from the Rural Bus Challenge Fund. The award was announced at the end of January 2003.

8.2 The successful bid `Hampshire Cango Further' set out the County Council's detailed strategy for introducing flexible, demand responsive services which are integrated with conventional, statutory and community services. By combining accessibility analyses, consultation feedback and local market knowledge the bid identified further areas that were suitable for the introduction of Cango services, together with a strategy for rolling out these services in Hampshire.

8.3 The money awarded through this year's Rural Bus Challenge bid will be used to introduce three new Cango vehicles with one of these vehicles broadly operating in each of the following areas:

(i) the settlements of Greywell, Upton Grey, South Warnborough, Long Sutton, the Foyles, Blacknest and Binsted;

(ii) Farringdon, East Tinsted and Newton Valence; and

(iii) Broadmere, Farleigh Wallop, Ellisfield, Axford, the Candovers, Bradley, the Wields, Bighton and Gundleton.

8.4 The sum awarded will cover the purchase cost of three new Optare Alero vehicles, the additional call centre costs which will arise from operating these new services and new bus stop infrastructure, together with the majority of the contract prices for operating these services. The sum awarded is as follows:

Capital Costs

Three Accessible Vehicles 210,000

Livery and destination boards 4,500

Bus stop infrastructure 30,000

Mobirouter software 14,500

Setting up costs 15,750

Contribution to Quality Network Review 15,000

Total 289,750

Revenue Costs

Staffing 72,234

Call centre costs 21,000

Revenue support net 301,500

Management 29,498

Publicity 22,000

Total 446,232

The revenue support will be supplemented by contributions from the County Council and fare revenue from the services themselves. The County Council's contribution will come from the subsidies currently going into the existing bus services which are converted into Cango services and the school contracts which are placed on the services.

8.5 Approval is sought for the purchase of three new Optare Alero vehicles to be used on contracts for the operation of these new Cango services in East Hampshire and Basingstoke and Deane. The costs of this exercise can be funded through the successful Rural Bus Challenge bid `Hampshire Cango Further' and the monies which the County Council can recycle from existing transport arrangements which will be incorporated into these new Cango services.

9. Burghclere Cango Service

9.1 Basingstoke and Deane Borough Council commissioned consultants, Peter Brett Associates, to develop proposals for a rural flexible scheme in the Burghclere area of Basingstoke and Deane. The results of the feasibility study were considered by its Cabinet on 29 October 2002 when agreement in principle was sought to implement the scheme.

9.2 The feasibility study identified issues of social inclusion and rural accessibility in the Burghclere area with existing public transport links, which were poor and largely confined to infrequent off-peak daytime services. The settlements included Burghclere, Old Burghclere, Bishops Green, Ecchinswell, Newtown, Sydmonton, Whitway and Litchfield. Further analysis has identified similar accessibility issues in Penwood, Woolton Hill, Broad Laying and Ball Hill. This covers the areas around services 20 and 123/124 towards which the County Council provides a subsidy.

9.3 At the invitation of the County Council the costs of introducing the Burghclere scheme was included in the recent Rural Bus Challenge bid, as it was considered that this particular scheme could contribute to the overall strategy for rolling out Cango services in Hampshire. It was envisaged that the scheme would be designed, operated and marketed as a Cango service.

9.4 Whilst the Rural Bus Challenge bid was successful this did not include the award of monies for the Burghclere service. The total monies applied for was £1,041,182 with the actual award being £736,000. Subsequently, officers from the County Council and Basingstoke and Deane Borough Council have been working together to determine how this scheme can be progressed.

9.5 The total cost of introducing and operating the Burghclere service for a 12-month operating period would be as follows:

Capital Costs

Purchase of Optare Alero 59,000

Vehicle livery 1,500

Bus stop infrastructure 15,000

Two-way communication 5,700

Total 81,200

Revenue Costs (Over three years)

Revenue support 90,000

Publicity and promotion 5,000

Total 95,000

9.6 Following discussions with Basingstoke and Deane Borough Council it is proposed that these costs should be jointly funded as follows:

Hampshire County Council

Purchase of Optare Alero 59,000

Vehicle livery 1,500

Two-way communication 5,700

Revenue support 40,000

Total 106,200

Basingstoke and Deane Borough Council

Bus stop infrastructure 15,000

Revenue support 50,000

Publicity 5,000

Total 70,000

Basingstoke and Deane Borough Council is currently considering its contribution.

9.7 From the County Council's perspective the costs of purchasing the vehicle, vehicle livery and communication equipment, which amounts to £66,200, can be financed from within the Passenger Transport budgets in this current financial year. Optare, the suppliers of the Alero, have confirmed that they have one vehicle available at present which could be delivered in this financial year and an order has been placed for the vehicle. This will be a one-off expenditure. If the Basingstoke and Deane contribution is not agreed and plans for the Burghclere service not progressed, this vehicle would be one of the three vehicles purchased with funds from the Rural Bus Challenge bid.

9.8 The revenue support required from the County Council will be provided through the fare revenue from the services themselves, together with subsidies currently going into the existing bus services which are converted into the Burghclere Cango service and the school contract placed on this. This will be recurring annual expenditure.

9.9 The costs of operating the call centre for the Burghclere service can be covered from the successful part of the Rural Bus Challenge bid. The bid also included setting-up staff costs of £15,750, but these will be absorbed within existing staffing resources.

9.10 Approval is sought for the purchase of one new Optare Alero vehicle to be used on the contract for the operation of a new Cango service in Burghclere. The cost of introducing this new service will be jointly met by the County Council and Basingstoke and Deane Borough Council. The County Council's contribution can be met from within existing Passenger Transport budgets.

10. Conclusion

10.1 Hampshire County Council's efforts to improve access to public transport in rural villages have been recognised by the Government with the award of £736,000 from the Rural Bus Challenge Fund.

10.2 The money will be used to extend the demand-responsive Cango services to East Hampshire and Basingstoke and Deane. Two new vehicles will be introduced around the Alton and Alresford area, with a further new vehicle serving the Candovers in Basingstoke and Deane. Funding for these services is available until March 2006. The services are expected to come on line towards the end of this year.

10.3 Officers from the County Council and Basingstoke and Deane Borough Council have been working together on a proposal for implementing a Cango service in the Burghclere area of Basingstoke and Deane. The introduction of this new service will cost £176,200, of which the County Council will fund £106,200 and Basingstoke and Deane Borough Council £70,000. This scheme will be introduced in the summer.

10.4 This report requests that approval be given for the purchase of four new Optare Alero vehicles to be used on contracts for the operation of new Cango services in the East Hampshire and Basingstoke and Deane areas of Hampshire.

7810/KI