Decision details

The contracts for Bath P&R bus services at Newbridge (service 21), Lansdown (service 31) and Odd Down (service 41) expire in September 2012.  Contracts for replacement services are to be awarded following an open OJEU tender procedure.

(1) To AGREE that Appendix A is an exempt item and is not for publication, by virtue of paragraph 3 of Schedule 12A of the Local Government Act 1972.

(2) To NOTE the tender prices received; and

(3) To AGREE the award of contracts as recommended in the report.

The selection of a hybrid powered fleet supports the Bath Air Quality Action Plan, and has the benefit of significantly improving fuel consumption.  There was very widespread support from the consultation exercise for the expansion of the Park & Ride services to operate on Sundays and Bank Holidays.  There is widespread recognition that the appeal of Bath as a retail, tourist, and leisure destination is enhanced by Park & Ride provision.

The award of a net subsidy contract:

·  Offers substantial financial benefits to the Council compared to the best gross cost offers on the services concerned;

·  Incentivises the operator to increase usage of the Park & Ride services, and to promote and market those services effectively;

·  Incentivises the operator to develop and market integrated tickets that promote usage of bus services, including Park & Ride services;

·  Requires the operator to introduce multi-operator tickets at the instruction of the Council;

·  Avoids significant financial risks that would arise under a gross cost contract from the need to commit additional expenditure in the future to increase service levels following the site expansions planned as part of the BTP;

·  Is fully consistent with undertakings made to the DfT as part of the BTP submission;

·  Ensures that no fare increase can take place before 31st March 2013, and that any future fare increases are indexed, using a weighted basket of inflation indices, to the last price increase in September 2010.

The Council will retain a significant degree of control over operating timetables through approval of an operating plan for the service.  The current first/last journey times are a contractual commitment, as is a minimum frequency of 15 minutes (Mon-Sat) between departures for all sites.  The initial operating plan stipulates that there will be no change to the current timetables before 31st March 2013.

There was support for extending the Park & Ride services to operate later in the evening and prices were requested for this service option from bidders.  This option cannot be taken up at the start of the contract due to planning restrictions on lighting of the sites.

Prices were sought for continuing the service using vehicles of the same standard as currently operated.  This would not have required new vehicle purchase and was designed as a low cost option in the event that bids for new vehicles were unaffordable.  It has not been necessary to pursue this option.