Agenda item

This report examines options for the procurement of the Park and Ride bus service, and asks Members to decide which option should be progressed to enable a contract to be prepared to operate the service for the next 5 years.

RESOLVED: (i)         That Officers be authorised to negotiate and prepare an interim licence with First York to extend the existing contractual arrangements until the new contract is in place.

REASON:      To ensure the continuation of the service and licence fee income to the Council.

                        (ii)        That approval be given to tender the park and ride service in accordance with the terms detailed in Option 2, as set out in paragraph 46 of the report, and with the specification and responsibilities split, as detailed in Annex D.

REASON:      To enable the provision of an improved service, with the highest opportunity of an increased income to the Council.

                        (iii)       That approval be given for the procurement of the park and ride service in accordance with the restricted route and the programme detailed in paragraph 56 of the report..

REASON:      To ensure that the service is procured in accordance with financial regulations.

Members considered a report which examined options for the procurement of the Park and Ride bus service, to enable the preparation of a contract to operate the service for the next five years, with a possible extension for a further three years. 

The existing 5-year contract with First York had commenced on 1 April 2002.  Transport Consultants (the TAS Partnership) had been commissioned to review the existing service and provide options for the proposed new contract.  Their conclusion was that current service performance was acceptable and the services were well used.  However, there was a need to update the service in terms of vehicles and branding and to address issues of reliability and bus service provision.  Problems relating to the current split of responsibilities could also be resolved in the new contract, by introducing a performance regime or by transferring liability for repairs to the Council.

The report outlined the four main options for the new contract arrangements, as investigated by TAS:

Option 1 – continuation of the present arrangement, whereby the operator paid a fixed licence fee to the Council.  This would provide a guaranteed income but did not enable the Council to benefit from increased patronage.

Option 2 (recommended) – a modification of the present system that retained the licence fee but introduced an element of revenue sharing, dependent on increased patronage.

Option 3 – a contractual arrangement under which the Council would take the revenue risk and income, with the operator providing the service at a fixed price.  This would provide no incentive for the operator to increase patronage.

Option 4 – a contractual arrangement similar to option 3, but with the an element of revenue sharing above an agreed base level.  This would provide an incentive for growth and would signal a partnership approach but would require further investigation if considered worth pursuing.

With regard to procurement options, it was recommended that the service be tendered using the European Union (EU) restricted route, whereby a select list was first prepared before inviting tenders.  An open route was not recommended as it would permit any suitable operator within the EU to tender, leading to an unmanageable process.  Approval was sought to negotiate with First to extend the existing contract, which terminated in March, to cover the interim period prior to establishment of a new arrangement.

With reference to recent Press reports in respect of comments in Annex E to the report, Members stressed that the Council had no intention of excluding pensioners from concessionary fares on park and ride services.

RESOLVED: (i)         That Officers be authorised to negotiate and prepare an interim licence with First York to extend the existing contractual arrangements until the new contract is in place.

REASON:      To ensure the continuation of the service and licence fee income to the Council.

                        (ii)        That approval be given to tender the park and ride service in accordance with the terms detailed in Option 2, as set out in paragraph 46 of the report, and with the specification and responsibilities split, as detailed in Annex D.

REASON:      To enable the provision of an improved service, with the highest opportunity of an increased income to the Council.

                        (iii)       That approval be given for the procurement of the park and ride service in accordance with the restricted route and the programme detailed in paragraph 56 of the report..

REASON:      To ensure that the service is procured in accordance with financial regulations.