Archived decisions

Agenda Item: 1

MAIN REPORT

1) Purpose of the Report:

1.1. The purpose of this report is to present the outcome of the recent re-tendering of supported bus services in the Totton and Waterside area and to recommend action within the budget available.

2) Contextual Information:

2.1. On 24 June 2008 the Executive Member approved the award of tenders for new four year bus subsidy contracts for the Totton and Waterside area at a cost of £103,090 per annum in respect of services primarily provided for school children.

2.2. At the same time it was reported that other tenders received on 25 April 2008 included some non-compliant tenders for some routes and therefore it had been decided to re-tender these to commence on 1 September 2008. This also resulted in the receipt of some non-compliant tenders and it was decided to re-tender these again, to commence on 3 November 2008.

2.3. This report now recommends action following this latest re-tendering exercise.

2.4. The present services have a combined value of £400,403 per annum (June 2008 figure), including an increase equivalent to £85,890 per annum from February 2008. Of this total, Southampton City Council contributes £4,127 per annum and Totton and Eling Town Council £7,000 per annum.

2.5. Contracted routes are operated by Bluestar (part of the Go Ahead Group and the new trading name for Solent Blue Line and Marchwood Motorways). Bluestar and First also provide some frontline services commercially, while Wilts & Dorset (also part of the Go Ahead Group) provide commercial journeys and supported journeys that form parts of other tender areas.

2.6. The Totton and Waterside tendering area is bounded by Totton, Cadnam, Marchwood, Hythe, Blackfield, Fawley and Calshot as well as the urban approaches to Southampton. Every effort is made to complement the commercial network, which operates with a mixture of low-floor accessible buses and high-floor vehicles.

2.7. Quality Bus Partnership (QBP) investment in infrastructure and publicity has focused on the Bluestar 8 and 9 services between the Waterside and Southampton. Disappointingly though, Bluestar has substantially reduced the number of commercial journeys on this corridor since February 2007 and, from February 2008, subsidy has had to be increased to retain some of these journeys on a contracted basis, pending the outcome of the re-tendering exercise.

2.8. Department for Transport accessibility software (Accession) shows that accessibility to employment, education, health, shopping and leisure is generally very good, with unconventional transport catering for small numbers of individuals who would otherwise be isolated. This provided background data in the face of the commercial withdrawals by the operators.

2.9. The recent approach across Hampshire has been to undertake an area passenger transport review. In Totton and Waterside the area review was overtaken by commercially-led enhancements in April 2006 and subsequent commercial withdrawals in February 2007 and February 2008. The latter changes led to an increase equivalent to £85,890 per annum for the retention, until re-tendering, of previously commercial services which would otherwise have been withdrawn.

2.10. Against this background a critical aspect of the retendering process has been the engagement of stakeholders.

2.11. This approach is central to the Council's Bus Strategy which advocates the importance of identifying those services most likely to achieve greater bus use, as well as areas where social inclusion objectives may best be achieved.

2.12. As part of a more visionary and flexible approach to providing passenger transport services in Hampshire in the future, greater and more effective use of `unconventional' transport, such as taxis, community transport, shared cars and demand-responsive services, is envisaged where conventional services are no longer appropriate.

3) Key Issues:

3.1. The acquisition of Marchwood Motorways by the Go Ahead group, to trade alongside Solent Blue Line and Wilts & Dorset, has reduced competition and resulted in a noticeable increase in tender prices over the past year.

3.2. Steeply rising industry costs continue to be reflected in increased tender prices on many supported services across Hampshire, and in the surrendering of previously commercial journeys. Bluestar reduced its commercial network in Totton and the Waterside in February 2007 and, more drastically, in February 2008.

3.3. Hampshire County Council responded to Bluestar's February 2008 service withdrawals by temporarily allocating the full year equivalent of an additional £85,890 (adjusted to June 2008 rates) for interim replacement timetables, pending the opportunity to consider a full range of options through the four-yearly retendering exercise. This was originally scheduled for implementation in June 2008.

3.4. Owing to non-compliant tenders being submitted on two occasions, it was necessary to issue tenders three times before a compliant set of submissions could be considered. This has delayed the introduction of new contracts until November 2008 and the temporary additional funding has been extended in the interim.

3.5. Following a public meeting in February 2008, a Marchwood Bus Focus Group was formed to help inform the County Council on residents' aspirations for future bus service provision in the parish. To date the focus group has met twice and the following aspirations were identified at the first meeting in March:

(i) Marchwood should be treated as a special case when the County Council is considering how to allocate its limited resources;

(ii) the level of bus service be restored to that which the village enjoyed prior to the February 2008 changes, including buses in the evening and on Sundays; and

(iii) the needs of people with disabilities and buggy users be addressed by restoring the low-floor easy access vehicles that were previously used on the service through Marchwood.

3.6. Feedback was provided at the second meeting of the group in May as to how these issues had been used to help shape a number of tender options for services through Marchwood.

3.7. More recently, Totton and Eling Town Council had expressed disappointment at the reduction to local services T1 and T2 in Totton from February 2008 and had reduced its contribution to the subsidy for 2007/8 by £1,000. The Town Council asked that the timetable allow more time in the town centre and has agreed that the contribution will revert to £8,000 if the report recommendation is accepted.

4) Consultations

4.1. Those consulted include bus operators; local County Council Members (Councillors Dash, Dunsdon, Harrison, Mrs Heron, Kendal and Weeks); New Forest Hampshire Action Team Members; New Forest District Council, Planning and Transportation Portfolio Holder and appropriate local Ward Members; New Forest National Park Authority; relevant Parish/Town Councils and the Marchwood Bus Focus Group.

4.2. Written consultation took place with stakeholders across the area in March and April 2008 during the re-tendering exercise. Preliminary feedback was provided to stakeholders at the New Forest Transport Forum in May 2008.

4.3. Councillor Dash is relieved there are no further service reductions. Although welcoming the proposed diversion of evening Bluestar 9 journeys via Marchwood, he would have preferred restoration at the pre February 2008 service levels.

4.4. Councillor Dunsdon is also relieved that there are no further reductions in service to South Waterside, although he is concerned that the Bluestar 9 evening diversions will be reviewed after just six months. He remains concerned at the reduction in service to Calshot from February 2008 and is keen to explore alternative non-conventional transport options for residents there.

4.5. Councillor Harrison would like to have seen Totton local bus services T1 and T2 restored to their pre-February 2008 levels and has asked New Forest District Council to explore the possibility of contributing subsidy.

4.6. Councillor Mrs Heron has no detailed comments on the proposals.

4.7. Councillor Weeks expressed the view that funding should not be reduced for any supported bus services, but that increased funds should be made available to encourage greater use of public transport and improve access to services.

4.8. A response from Marchwood Parish Council:

(i) supported the diversion of evening journeys on Bluestar 9, but expressed disappointment at the gap in departures from Southampton between the 1835 Service 8 and the 2010 Service 9;

(ii) noted the continued absence of evening journeys from Hythe towards Marchwood and would like to have seen more Service 8 journeys at peak times;

(iii) expressed concern that there was no obligation for the operator to provide low-floor buses; and

(iv) noted that Marchwood's bus service levels remained below the pre-February 2008 levels, while the County Council was reducing subsidy from its current level (although this is £67,620 higher than the pre-February level).

5) Outline of Options:

5.1. Thirty bus or coach operators were invited to bid for tenders,11 requested and were sent details of the contracts.

5.2. Tenders were invited for the existing pattern of services and for a number of alternative service patterns to explore issues raised in Marchwood and neighbouring parishes following the February 2008 network changes. Some of the tender documents invited price options to incorporate housekeeping measures where particular journeys were found to be poorly used and/or to accommodate potential budgetary pressures from the re-tendering exercise.

5.3. Of the operators invited to bid, three operators submitted tenders. These are Solent Blue Line Limited (trading as Bluestar), First Hampshire & Dorset Limited and Black Velvet Travel Limited. Tenders were received on 28 July 2008.

6) Option Analysis / Comparison:

6.1. The outcome of the tendering exercise to retain the post February 2008 network is as follows:

Existing Recommended

Contracts* Tenders (inc

Bluestar 9

Diversion)

£ £

Total value of contracts 400,403 400,476

Less contribution from 4,127 4,545

Southampton

Less contribution from Totton 7,000 8,000

and Eling

Cost to Hampshire 389,276 387,931

* - June 2008 rates, including annual inflation increase.

The tenders provide a reduction to Hampshire of £1,345 (0.4%) on the existing cost. However, the existing cost includes the £85,890 per annum increase in subsidy for Totton and Waterside services from February 2008. Under the new tenders, this additional amount is reduced to £84,545 per annum.

The successful tenderer would be Solent Blue Line Limited (trading as Bluestar) for all tenders.

6.2. The tenders and options (including extra evening and peak services, and easy access buses) show that to restore the entire Totton and Waterside network to its pre-February 2008 service levels would cost an additional £377,038 per annum, which is not achievable within the budget available. Furthermore, most of the tenders and options did not meet the County Council's value for money criteria.

6.3. The recommended option includes diverting four evening Bluestar 9 journeys via Marchwood which represents best value for money and has the biggest impact on improving accessibility to an isolated community. The journeys concerned are the 2010, 2110, 2210 and 2310 from Southampton. Patronage on these diverted services to be reviewed after six months.

6.4. Southampton City Council is willing to increase its contribution to Service 12 pro-rata to the increase in tender price, although a minor housekeeping measure is proposed (paragraph 6.7), which would reduce both the contract price and the contribution from the City Council.

6.5. Discussions with Totton and Eling Town Council will result in restoring its contribution to the previous level of £8,000 per annum if the tender recommendation is adopted.

6.6. As part of the consultation process, New Forest District Council, New Forest National Park Authority, and local town and parish councils have been invited to consider contributing subsidy to enable more journeys to be contracted. However no offers have been received to date.

6.7. Services 10/11 combined provide two buses an hour between West Totton and Cadnam, Monday to Saturday day-time, as an extension to a commercial service between Southampton and West Totton. The tender price for these services has risen steeply from £43,915 to £70,643 per annum. To mitigate the impact of this, it is proposed that five journeys be withdrawn for a reduction of £16,268 per annum. These journeys are:

(i) 0613 Tatchbury Mount-Cadnam-West Totton-Southampton, Mondays to Fridays (this journey is supported throughout to Southampton; alternative early morning journeys between Totton and Southampton are available on Bluestar 8 and Wilts & Dorset Service 56);

(ii) 1816 and 1846 West Totton-Cadnam (which depart from Southampton at 1750 and 1820); and

(iii) 1802 and 1832 Cadnam-West Totton.

This would affect 1 to 2 passengers per journey at a subsidy of £7.35 per passenger journey, both of which are significantly outside the County Council's standard subsidy criteria.

Buses would still run

(i) from Cadnam to West Totton/Southampton at 0732, 0743, then every 30 minutes between 0902 and 1732; and

(ii) from Southampton via West Totton to Cadnam every 30 minutes between 0820 and 1720.

6.8. A minor housekeeping measure is proposed on Sunday Service 12 between Calmore and Southampton by which the poorly used extensions to Ocean Village and Leisure World would be withdrawn, bringing the route into line with the Monday to Saturday commercial service. This would achieve a saving of £1,310 per annum on the contract price of which the County Council's share amounts to £657. This would affect 0 to 1 passengers per journey at a subsidy of £3.93 per passenger journey.

6.9. The combined effect of paragraphs 6.7 and 6.8 would be to reduce the:

(i) total value of contracts to £382,898 per annum;

(ii) total cost to Hampshire to £371,006 per annum; and

(iii) additional amount allocated in February 2008 to £67,620 per annum.

7) Conclusions:

7.1. Overall, the effect of the tendering process will result in maintaining the current level of service provision on most services in the Totton and Waterside tendering area and reduce the previous cost pressure of £85,890 to £67,620. All areas currently served will continue to be served.

8) Summary Recommendations:

8.1. That approval be given to:

(i) award tenders for the new four year bus subsidy contracts for the Totton and Waterside area at a cost of £382,898 per annum which will result in the current network being largely retained, subject to a review of patronage of the Bluestar 9 evening journeys after six months;

(ii) reduce Services 10/11 between West Totton and Cadnam by five journeys a day to achieve an economy of £16,268 per annum to reduce the budgetary pressures arising since February 2008; and

(iii) make minor housekeeping changes to Sunday Service 12 which will achieve a further economy to Hampshire County Council of £657 per annum.

1655/Rpt/222/CMW

CORPORATE OR LEGAL INFORMATION:

COMPREHENSIVE RISK & IMPACT ASSESSMENT:

It is considered that the actions outlined above should not have any detrimental impact on equalities or race discrimination, and the recommended option will improve evening accessibility to Marchwood over current provision.