Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

1. Executive Summary

1.1. The purpose of this paper is to consider the award of tenders for four year bus subsidy contracts in the Basingstoke tendering area (Basingstoke town routes, routes between Basingstoke and local towns/villages - Bramley, Dummer, North Waltham, Oakley, Old Basing, Sherborne St John - Overton village service and a school service).

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, so enhancing well being.

1.3. The proposal responds to rising costs and changes to travel patterns through community transport provision to maintain services for as many areas as possible within affordable budget levels.

2. Contextual Information

2.1. Tenders were invited for the existing pattern of services and for alternative service options aimed at ensuring continued service provision within value for money criteria. Some of the tenders invited price options to incorporate housekeeping measures where particular journeys were found to be poorly used.

2.2. Basingstoke bus services have performed well in recent years, supported through Quality Bus Partnership investment from Hampshire County Council, but the economic downturn has led to recent reductions in commercial services. Some routes have been combined to balance demands and costs and this is reflected to some extent in the proposals for tendered services.

2.3. Community transport has been considered for five routes where this seemed to offer a better alternative and is proposed for three of those routes.

2.4. Seven operators submitted tenders and all tenders were subject to at least one bid.

3. Finance

3.1. The current tender cost is £746,321 following contract cost rises of 1.5% or 2% from August 2009. Services costing £198,000 are secured on behalf of Basingstoke and Deane Borough Council, making a cost of £548,321 to Hampshire County Council.

3.2. The lowest combination of compliant conventional bus tender prices with de minimis contracts is £754,881 per annum. This is £8,560 more than the current expenditure for the equivalent services.

3.3. A number of the services tendered can best be provided by community transport and this gives better value for money reducing the overall cost of tenders to £679,461. Much of the saving relates to services secured on behalf of Basingstoke and Deane Borough Council. The cost to Hampshire County Council of the proposed tenders will be £534,000.

3.4. Basingstoke and Deane Borough Council has indicated that it will continue to support the services proposed on the current basis for the present but may wish to review this approach in the new financial year.

4. Performance

4.1. The proposed tenders meet value for money criteria and provide services to the widest area within affordable budget levels.

4.2. Some re-linking of services, evaluation and implementation of community transport alternatives where appropriate, and close working with funding partner Basingstoke and Borough Council have helped ensure effective service provision which responds to current travel patterns.

5. Other key issues

5.1. The impact of the tendering exercise will be greatest in the rural areas where three conventional bus services will be replaced by community transport to better match capacity to use and so maintain value for money.

5.2. Service 12 currently operates three return journeys between Basingstoke and Old Basing via Chineham. Passengers wishing to travel between Basingstoke and Old Basing or Chineham have frequent commercial services available to them. The unique section between Old Basing and Chineham is used by few passengers whose needs can be more cost effectively provided by a community transport alternative costing a maximum of £1,836 per annum.

5.3. Service 36 provides one daily return journey between Basingstoke, Sherborne St John, Ramsdell, Baughurst and Stoney Heath, with additional journeys on Wednesday and Saturday. It is run as a conventional bus service but carries just 36 passengers per week. The lowest acceptable conventional bus service tender produces a cost per passenger far in excess of the value for money criterion. Regrettably, no bids were received for the community transport tender option but further attempts will be made to find a community transport solution. For the present, an estimate of £18,000 per annum has been included in the cost calculations. It is proposed that further negotiations take place to secure appropriate taxi-share arrangements, provided the cost does not exceed this figure.

5.4. Service 54 operates on Wednesdays only between Hannington and Basingstoke and carries five passengers each way. The most cost effective option is a community transport taxi-share to replace the current conventional bus service - annual cost £2,754.

5.5. Service 55 Steventon - North Waltham - Dummer - Basingstoke is a lightly used rural service. Part of the role of this service is to deliver the County Council's statutory obligation for Home to School Transport (HTST) taking Secondary school children from the villages to Brighton Hill Community College. Although a taxi-share scheme would be a more cost-effective means of meeting shopping trips, the HTST element could not be accommodated in this way. As a result, the HTST element would require a more costly separate school contract. It is therefore proposed that service 55 will remain a conventional bus service but a larger portion of the cost can appropriately be attributed to HTST and bring the cost per passenger down from £3.41 to or below £2.50.

5.6. The Overton village service (74) operates as a conventional bus service on Tuesdays, Thursdays and Saturdays. The cost per passenger is currently £2.75. Thursday is the most popular day followed by Tuesday and Saturday. It is proposed that savings elsewhere be directed to retaining the Saturday journey if Basingstoke and Deane Borough Council agree to redirect some of its savings to meet the cost above £2.50 per passenger trip. A community transport option was considered but offered no advantage.

6. Consultation

6.1. Details of the proposed tenders were circulated to local Members and relevant parish and district councils for comments before tenders were issued. The tendering exercise was included in the Basingstoke Passenger Transport Forum meeting on 6 July 2009 prior to the issue of tenders and on 26 October 2009 after the tenders were returned. Details of the proposals in this report have been discussed with Basingstoke and Deane Borough Council which has agreed to continue its funding.

7. Future direction

7.1. The award of these tenders and the greater use of community transport 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 Basingstoke area, at a total cost of £679,461 per annum, which will result in changes to the current bus network and to the mix of conventional bus and community transport operation. A number of services are provided on behalf of Basingstoke and Deane Borough Council, making a cost of £534,000 to Hampshire County Council.

8.2. That the Saturday timetable be retained on service 74, subject to the excess cost above £2.50 per passenger trip being met by Basingstoke and Deane Borough Council.

8.3. That the Director of Environment be given delegated authority to negotiate provision of a taxi-share service to replace service 36 between Basingstoke, Sherborne St John, Ramsdell, Baughurst and Stony Heath at a cost not exceeding £18,000 per annum.

2210Rpt/1037/SK

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, whilst greater use of community transport matches supply to use.

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.