Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

The Appendix to this report is not for publication as it contains exempt information within Paragraphs 3 and 6 of Part 1 of Schedule 12A to the Local Government Act 1972, being:

(i) information relating to financial or business affairs of any particular person (including the authority holding that information); and

(vi) information which reveals that the authority proposes a) to give under any enactment a notice under or by virtue of which requirements are imposed on a person, OR b) to make an order or direction under any enactment.



1. Executive Summary

1.1. The purpose of this paper is to detail the outcome of tenders for renewal of four year bus subsidy contracts in the Fareham/Gosport tendering area which include routes to town, to rail services, to the Gosport Ferry and to a school.

1.2. It proposes a plan of action to ensure value for money, and seeks to enable transport services which give access to employment, education, health, retail and leisure facilities for the widest section of the community, therefore enhancing well being.

1.3. The proposal responds to rising costs and reduced passenger numbers by revising timetables to meet value for money so as to maintain services for as all areas currently served within affordable budget levels.

1.4. It responds to the residents' petition to reinstate a service to Elmore Road.

2. Contextual information

2.1. Tenders were designed with one or more timetable options for which prices were sought. Tenders were invited for the existing pattern of services and for alternative service options aimed at achieving a lower overall cost. The tenders invited price options to incorporate housekeeping measures where use of particular journeys had declined.

2.2. Five operators submitted bids. All tenders were the subject of at least one bid.

2.3. Tender prices received were significantly higher than the current cost of the tenders included in this round. The increase is a result of inflationary budget pressures in the bus industry and reduced fare income for some services.

2.4. Community transport options were explored but passenger numbers made these impracticable.

3. Finance

3.1. The current Fareham and Gosport contract received an additional 3.4% inflationary increase when the contract was extended in April 2009. The current contract cost is £597,004 including the 29/30 service awarded from September 2009.

3.2. The lowest compliant combination price received is £710,010 per annum. This represents a 19% increase on the current expenditure for the equivalent services. The combination was not felt to best meet local needs and an alternative combination was selected at a cost of £734,695 before the actions proposed below which brought the cost to £695,160 but retained the preferred levels of service.

3.3. Authority is sought, after award, to enter into negotiation with the successful tenderer on three contracts for which only one tenderer has supplied prices, and which in their original format do not meet value for money criteria. This will enable services to be maintained for an area which would suffer hardship if services were withdrawn.

4. Performance

4.1. The proposed tenders meet value for money criteria and provide services to the widest area within affordable budget levels, subject to the timetable revisions described in this report.

4.2. Careful redesign of individual timetables and discontinuing particular journeys which no longer achieve value for money has enabled all services to be retained.

5. Other key issues

5.1. The Service 87/87A operates between Gosport and Stubbington via Rowner and would have a cost per passenger of £3.66 if the current timetable was retained. This is in excess of the value for money criterion. Rowner is a disadvantaged area where some of the housing stock is being refurbished, reducing passenger usage. To maintain this vital transport link, it is proposed to introduce a revised timetable which retains the main 30 minute headway to Rowner and offers some journey time savings by shortening the route to no longer run via Bridgemary, a section of route which attracts an average two passengers per journey and has its own ten minute bus service. This would meet travel demand and enable the service to meet value for money criteria.

5.2. Service 88 currently operates seven days a week between Gosport and Fareham via Rowner. The last three journeys on a Monday to Saturday are financially supported. It is proposed to withdraw the very last journey which is used by an average of four passengers making the new last journey 22.00 from Gosport Bus Station. The 88 is also financially supported on Sundays and bank holidays, and it is proposed to reduce the service from 11 journeys to six, which will match the current levels of demand -11 passengers per trip -and reduce costs by £5,021.

5.3. Service 34 operates between Gosport, Stubbington and Fareham; the last two journeys are financially supported. The last journey carries an average of nine passengers, resulting in a cost per passenger of £3.00 which is in excess of the value for money criterion. It is proposed to withdraw the last journey making the final journey 18:51 from Gosport.

5.4. Timetable changes shown at 5.1 to 5.3, apart from the change to 88 on Sundays and Bank Holidays, are on the basis of negotiation after award of tender.

5.5. The 63 bus service provides a valuable link to Queen Alexandra hospital from Fareham and Havant. Saturday buses run under contract and, although the lowest tender price was submitted by Stagecoach, it is proposed to award the contract to First Group, which operates the Monday to Friday service, to maintain common weekly ticketing for workers.

5.6. The 26/28 bus services operate between Fareham-Hedge End and Fareham-Whiteley respectively. Black Velvet submitted a tenderer's alternative at a lower cost but, as this offered significantly fewer journeys to Whiteley, it was felt that the level of service offered was not an adequate replacement so that it is proposed to award the contract to First Group.

5.7. The proposal to award the tenderer's alternative option for service 29/30 on Sunday and Bank Holidays will provide a saving of £4,220.

5.8. The award of the tenderer's alternative for Sunday and Bank Holiday journeys on 93/95 and Monday to Saturday service 94 will result in some minor timetable changes. In future the services will be operated with a single driver shift, which makes the operation much more efficient. As a result one journey will be withdrawn at lunchtime on the 93/95 and 94 to allow for the driver's break. This will affect seven passengers on the 93/95 and 12 passengers on the 94 who will have an alternative journey one hour earlier or later. The timetable changes provide a saving of £19,962.

5.9. The 80 bus service is financially supported on a Sunday and it is proposed to reduce the service from nine return journeys to six, which will match the current level of demand - nine passengers per trip - and reduce costs by £6,576.

5.10.It is proposed to award the tenderer's alternative option on service 36, which will be diverted to serve Elmore Road in Gosport and so respond to requests received from residents. This option will also save £3,756.

6. Consultation

6.1. Details of the proposed tenders were circulated to local County Councillors and appropriate parish and borough councils. Fareham Borough Council and Gosport Borough Council have been briefed of the proposals in this report and a meeting has been arranged with Fareham Borough Council.

6.2. Gosport Borough Council has requested that this decision be delayed until after the Borough Council meets on 24 November 2009 when it will consider whether it wishes to retain some or all of those journeys which it is proposed to curtail as they do not meet value for money criteria or stay within affordable budget limits. Although it is not possible to do this due to the time needed for bus operators to mobilise for the start of the new tenders on 6 December, this is addressed in Recommendation 8.2 which proposes that authority be delegated to the Director of Environment to negotiate to retain any journeys which Gosport Borough Council wishes to retain at its own expense and that this be done, if at all possible, without interruption of service.

7. Future direction

7.1. The award of these tenders and revised timetables proposed represent the best means to meet the public transport travel needs of the local community.

8. Recommendation

8.1. That approval be given to award tenders for new four year bus subsidy contracts for the Fareham/Gosport area, up to a cost of £695,160 per annum (subject to the negotiations in recommendation 8.3.) which will result in the continuation of vital local bus services.

8.2. That authority be delegated to the Director of Environment to negotiate retention of any journey which it is proposed to curtail (to meet value for money criteria or to stay within affordable budget limits) which may be requested by Gosport Borough Council following its meeting on 24 November 2009 subject to any additional cost being met by the Borough Council.

8.3. That authority be delegated to the Director of Environment to negotiate, after award, with the successful tenderer on three contracts for which only one tenderer has supplied prices, and which in their original format do not meet value for money criteria as set out in the exempt section of this report.

2214Rpt/1031/SW

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

1.1. The proposals in this report maintain accessibility for the widest section of the community.

2. Impact on Crime and Disorder:

2.1. No impact.

3. Climate Change:

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

· Maintaining journey opportunities by bus will result in fewer journeys being made by private car.

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

· This recommendation will have a significant positive effect on sustainable transport provision.