Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

EXECUTIVE SUMMARY

1) Summary of Decision Area

1.1. To award an emergency contract for bus services following the decision by Bluestar to withdraw both the contracted and commercial C1/C2 bus services from 22 February. In view of the short timescale, a six month contract would provide continuity of service and allow renewal within existing budget limitations. This approach has been agreed with Eastleigh Borough Council which jointly funds the service.

2) Issues Covered in Report

2.1. To ensure continuity of bus services following the announcement by Bluestar to withdraw C1/C2 bus services in Eastleigh Borough and to recommend action within the budget available.

3) Recommendations

It is recommended that:

3.1. The award of an emergency bus service contract for a period of six months to ensure uninterrupted provision of important local bus services be confirmed.

3.2. As the contract is in excess of the EU threshold for tendering, it will be necessary to re-tender the bus service after the six month emergency contract has expired.

MAIN REPORT

1) Contextual Information

1.1. In September 2008 the Executive Member approved the award of a tender until May 2011 for a C1/C2 bus contract operating in the Borough of Eastleigh at a cost of £135,800 per annum.

1.2. The C1/C2 bus routes have been operated by Bluestar (Part of the Go Ahead Group) commercially between Eastleigh Bus Station and Fryern Hill. The contracted part of the service is between Fryern Hill and Asda superstore, Chestnut Avenue. The reason given by Bluestar for the withdrawal of the service is due to insufficient patronage to cover the operating costs. Bus industry costs over the past few years have increased significantly due to the rise in the cost of fuel, drivers wages, insurance and the national issue of the reimbursement of concessionary fares. The C1/C2 service has been deregistered from 22 February.

2) Key Issues

2.1. There is a need to maintain continuity of the bus service for residents of Velmore Estate, Fryern Hill, Chandler's Ford and Valley Park following the announcement by Bluestar to withdraw C1/C2 bus services in Eastleigh Borough.

2.2. Eastleigh Borough Council contributes to the current service C1/C2 and has confirmed that it will continue to contribute at the current funding level.

3) Outline of Options

3.1. Bus operators have been invited to submit tenders for a six month emergency contract for the C1/C2 service. Tenders have been invited for the existing service pattern and for a number of alternative service patterns.

4) Option Analysis / Comparison

4.1. There were two tenders received that were affordable within the current budget, one from David Thompson Tours at £139,000 per annum and another submitted by Black Velvet Travel at £145,000 per annum. The tender which was submitted by David Thompson Tours was non compliant as it would not have been operated with low floor vehicles.

4.2. The tender which best meets existing demand, and covers the areas currently served, albeit with some reduction in frequency, is from Black Velvet Travel at an annual cost of £145,000 which compares with a current cost of £135,800. There is currently a second bus on a school journey funded at a cost of £28,000 per annum as part of the BusIT Home to School Transport (HTST) pilot. The Black Velvet tender includes a maximum capacity 85 seat double-deck bus for this journey enabling the additional bus to be discontinued. It is proposed that the £9,200 tender increase is met from the HTST pilot budget, which will reduce the cost to the HTST pilot and make the option cost neutral for the bus subsidy budget. The pilot budget is available throughout the period of this award. New tender options will need to be considered in August 2009. In addition Eastleigh Borough Council currently provides full year funding of £24,000 as part of the £135,800 and its portfolio holder has confirmed that this will continue. Eastleigh Borough Council also requires some additional Saturday journeys and has agreed to meet the full extra cost of £7,000 for these bringing the full tender cost to £152,000 per annum.

5) Conclusions

5.1. Approval of an emergency contract for a period of six months will ensure uninterrupted provision of important local bus services.

6) Recommendations

Please see Executive Summary for recommendations.

1927Rpt/624/PS

CORPORATE OR LEGAL INFORMATION:

COMPREHENSIVE RISK & IMPACT ASSESSMENT:

1) Equalities Impact Assessment:

a) It is considered that the actions outlined above should not have any detrimental impact on equalities or race discrimination, the recommended option will maintain accessibility to residents of Eastleigh Borough.

2) Impact on Crime and Disorder:

a) The provisions of the Act have no impact on this proposal.

3) Climate Change:

a) How does what is being proposed impact on our carbon footprint / energy consumption?

· Reduce reliance on the private car and actively reducing congestion and promoting green travel options.

b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

· Public transport provides a more sustainable alternative and can use a variety of fuel sources.