Archived decisions

Contact: Kevin Ings, ext 6986 email: [email protected]

1. Summary

1.1 The following decisions are sought:

(i) That approval be given to continue the existing Leigh Park Cango contract for a period of up to three months to allow for consultation on the options outlined in this report.

(ii) That approval be given for the operation of a one vehicle demand-responsive service in Leigh Park beyond this period.


(iii) That authority be delegated to the Director of Environment, in

consultation with the Executive Member for Environment, to further adapt the scheme within the overall Department for Transport funding available in response to consultation with local Members.

2. Reason

2.1 This decision supports Aim 1 (Maximising life opportunities) and Aim 5 (Improving services) of the Corporate Strategy by maintaining a demand-responsive fully accessible bus service in Leigh Park, Havant.

3. Other Options Considered and Rejected

3.1 Two other options considered are listed in paragraph 9 of this report. They are that:

(i) existing services be withdrawn; or

(ii) the existing two vehicle operation be maintained.

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. Introduction

7.1 The County Council successfully bid for funding from the Urban Bus Challenge competition in 2001 to implement the Leigh Links Project. This resulted in the introduction of three new demand-responsive Cango services in the Leigh Park area of Havant. Two new wheelchair-accessible vehicles are used to provide these services, which allow access to employment at Broadmarsh Business Park, doctors' surgeries on Leigh Park and health facilities at the Queen Alexandra and St Mary's hospitals.

7.2 Leigh Park is an area which registers high on the deprivation indices and consequently affordability is very much an issue for many people. The successful submission to the Urban Bus Challenge competition also included funding for a concessionary fare scheme for unemployed residents in Leigh Park, which was introduced in May 2003.

7.3 The Urban Bus Challenge funding officially expires on 31 March 2004 and therefore there is a need to determine the arrangements for any future support and operation for these services.

8. Scheme Performance

8.1 The Leigh Park Cango services were introduced in November 2002 and overall the patronage figures have been disappointing, considering the success of Cango in other areas of Hampshire. Taking into account the fare income and the children that are carried on the school contracts, some 8,456 passenger trips have been provided over the last 12 months and this would equate to subsidy level of approximately £15.52 per trip.

8.2 Noticeably there has been an increase in the number of passenger trips over the last six weeks (1,015 passengers in one month which includes 400 school trips). If these numbers were maintained throughout a 12 month period then the subsidy level would reduce to £11.73 per passenger trip. Whilst the exact reasons for this increase are unknown, it may be that this is because the First Bus services is no longer going onto the hospital site at the Queen Alexandra Hospital.

8.3 There would seem to be a number of reasons why the patronage on these services has been lower than on the other Cango services introduced in Hampshire:

(i) In other parts of Hampshire the emphasis has been on converting an existing supported bus service - in Leigh Park a new service was introduced and therefore there was no existing passenger base to build on.

(ii) Secondly, there are alternative frequent commercial bus services operating in Leigh Park, unlike in the more rural areas where Cango services general offer the only public transport option. Consequently, in Leigh Park Cango does not serve the majority of the public transport market.

(iii) Lastly, the daytime services are targeting only health facilities. Whilst they provide important additional opportunities to travel to these facilities, this does not, because of the nature of the journeys themselves, attract the regular patronage which the rural Cango services achieve.

8.4 Even though the patronage is disappointing, the services are enabling a number of journeys to be made, particularly to health facilities, which people were previously finding it either difficult or unable to make.

9. Options

9.1 With the Urban Bus Challenge funding officially expiring on 31 March 2004 there is a need to determine the arrangements for any future support and operation for these services. There would appear to be a number of options with regard to the future of the Leigh Park Cango services.

Option 1

9.2 The existing services could be withdrawn. Of all the options this would have the most impact. In view of the current usage, most of which is related to accessing health facilities, this is option is likely to promote the most negative response.

Option 2

9.3 The existing two vehicle operation could be maintained. Whilst this might be the least controversial of all of the options, the level of patronage across the existing services would not seem to justify the levels of resources required to maintain the existing service provision. The annual cost of maintaining the services is approximately £135,000.

Option 3

9.4 Maintain the Cango presence in Leigh Park but reduce the two vehicle operation down to a one vehicle operation. Preliminary service design on this option would suggest that because of the hours available:

(i) only a two hourly service could be provided to the hospital (four times a day) as opposed to the seven trips at present;

(ii) journeys to the employment parks would not be possible as part of the revised timetable. It would be difficult to justify the additional costs of providing this on the basis of the patronage figures recorded by the call centre - an average of three passengers on the busiest journey. There would be a need to determine what, if any, alternatives could be put in place to address employment journeys.

9.5 A tendering exercise was recently undertaken and established that the cost of operating a one vehicle Cango operation would be £62,000, less any fare revenue. Clearly, it is difficult to estimate what the usage might be on any revised service because operating only one vehicle instead of two would result in some loss of flexibility. However, if the most recent patronage figures were maintained and transferred to the revised one vehicle service, it is estimated that this might generate some 1,800 trips per annum. This figure excludes journeys undertaken by schoolchildren as there will no longer be a suitable school contract to put on any revised operation. This would work out at a subsidy of approximately £33.16 per passenger trip. However, had it been possible to maintain the current school contract then the subsidy could have been reduced to £10.66 per passenger trip.

Option 4

9.6 Maintain a one vehicle operation in Leigh Park and use this to supplement the existing Havant Dial-A-Ride service and enable journeys to health facilities. This could be run along the same lines as the approach taken in Hart which would mean that:

(i) anyone with a disability who was unable to use public transport could use the service to travel anywhere in Havant, eg this would not conflict with the existing bus services, and potentially would increase the number of journey opportunities, for example to the local shops; and

(ii) anyone who needed to travel to hospital/health centres and could not make this journey by existing public transport could use the service - potentially this could maintain the health journeys which are currently being made on the existing services.

9.7 As this would not be a registered bus service, like the existing Cango service, the operator of the existing Havant Dial-A-Ride service could be approached with a view to negotiating a price for operating this vehicle. Based on the prices being paid for similar services in other locations, it is estimated that this might cost in the region of £30,000, although this would need to be confirmed with the operator.

9.8 Clearly, it is difficult once again to estimate what the patronage levels might be. On the basis of 1,800 passenger trips predicted for the previous option, the subsidy would be reduced to £16.66 per passenger trip, although it should be possible to reduce this even further as the Dial-A-Ride side of the service develops because the potential user base will be larger. There would also be a need to consider how the vehicle is marketed in the future, eg is it still a Cango of some sort.

9.9 New arrangements are being considered for the Havant Dial-A-Ride service for the next financial year, which will see the scheduling of the service undertaken by the call centre in Winchester, with the actual service delivery provided by a local operator. There would therefore be the opportunity to operate this vehicle in a more integrated way with the existing Dial-A-Ride vehicle in the future.

10. Proposal

10.1 From the options available it would seem that the most viable approach is likely to be the last of the options considered, although even the initial costs involved in continuing this service may be considered too high. This would involve retaining one of the existing Cango vehicles and using it to supplement the existing Havant Dial-A-Ride service. It would also encompass as many as possible of the journeys which people are currently wishing to make to access the health facilities on Leigh Park and at the Queen Alexandra hospital. Accessing the facilities at the Queen Alexandra hospital is seen as being a continuing issue, particularly for older and disabled people, as services operated by the First Bus companies are no longer going onto the hospital site. The service could operate on Monday to Friday for 40 hours each week. If this approach is considered to be the best way to proceed then this should be monitored and reviewed after six months.

10.2 Consultation with interested parties on the possible approaches is currently taking place. Discussions are also taking place with the existing operator of the Havant Dial-A-Ride service to determine the actual costs for operating this service.

10.3 In order for there to be time for these approaches to be consulted on with interested parties it may not be possible for any new arrangements to commence before 1 May 2004. Therefore, it is proposed that the existing contract be continued for a further period of up to three months to allow sufficient time for consultation with local Members on the future options for the service. The cost of continuing the contract for the full three months would be approximately £34,000. The cost of maintaining a one vehicle service to supplement Dial-A-Ride for 10 months would be approximately £25,000. These costs could be met from remaining Urban Bus Challenge funding.

11. Funding

11.1 The Urban Bus Challenge funding, which expires on 31 March, is currently predicted to show a surplus in the revenue funding made available of some £71,000. This is largely because the contract prices were eventually lower over the period than had originally been assumed. The Department for Transport (DfT) has agreed that this money can be carried forward to finance the operating costs of the one-vehicle operation in the next financial year, and any other associated costs, such as publicity. Alternatively, the service could be funded through the additional monies which have been allocated for Cango in the next financial year.

11.2 The Urban Bus Challenge funding is also predicted to show a surplus of approximately £29,000 at 31 March 2004. This is because capital spending on the service was less than originally anticipated. There is currently a need to update the infrastructure for the Mobisoft scheduling system used by the call centre and to ensure that a reliable and adequate backup system is developed. Approval has also been obtained from the DfT to utilise the capital funding underspend for this purpose.

12. Vehicle

12.1 The continued operation of one vehicle in Leigh Park would leave one of the existing Leigh Park Cango vehicles spare. Approval is also being sought from the DfT for this vehicle to be relocated on an alternative Cango service in Hampshire.

13. Concessionary Fare Scheme

13.1 The Urban Bus Challenge bid also included funding for a concessionary fare scheme for unemployed residents in Leigh Park, which was introduced in May 2003. The concessionary fares scheme started in Leigh Park in May 2003 and is administered by the employment centre on Leigh Park. However, the take up of the scheme has been disappointing. The DfT concession to utilise the remaining Bus Challenge funding would ensure that the scheme could be continued for a further period and the criteria amended to encourage more people to take advantage of this.

8592/KI