Meeting documents

The Executive
Tuesday, 14 May 2002

140502-14E

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ITEM EX14E

EXECUTIVE – 14 MAY 2002

BUS SUBSIDIES

Report by Director of Environmental Services


Introduction

  1. This report and the associated Annexes deal with a number of public transport items that need decisions by the Executive. In summary these are:

    2. Section A – Review of subsidised bus services in Oxford and Abingdon areas.

    Section B – Review of services operated by Thames Travel.

    Section C – Commercial withdrawals of bus services.

    Section D – Changes in arrangements for subsidised services.

    Background information on all these items is included in Annex 1. Confidential information on prices of existing short-term contracts (section C) is included in Exempt Annex 2.

    Tender prices obtained for contracts specified in all four sections will be contained in a supplementary Annex 3, to be circulated later.

    Reasons why this Item is Exempt

  2. Financial information associated with this report (in Annexes 2 and 3) is exempt because its discussion in public might lead to the disclosure to members of the public present of the amount of expenditure proposed to be incurred by the County Council under particular contracts for the supply of services. All prices must be treated as strictly confidential until such time as the Executive decides whether or not to provide financial support for each service, because revealing operators’ prices before then would prejudice the Council’s position if tenders or propositions have to be sought again for any of these services.

    3. Financial Position

  3. The County Council can draw from the two separate sources for bus subsidy funding; the Main Budget and the Rural Bus Subsidy Grant (RBSG). With effect from 2001/2, the Government has relaxed the requirement that RBSG can only be used for new services. Now, up to 20% of RBSG can be used for pre-existing services. This opens up the possibility of using RBSG to fund some services that the Executive might otherwise have agreed to be funded from the main budget.

  4. The services under review at this meeting are funded by a mix of RBSG and main budget. I propose that, at least unless and until the pre-existing services funded from RBSG approach 20% of the total, the two budgets be treated as one. This will simplify consideration of which tenders to accept.

  5. The out-turn spend in 2001/2 has not yet been finally calculated, but is expected to result in an underspend of around £165,000. This underspend was all incurred in the first part of the year; bus subsidy costs have risen during the year.

  6. The total amount available for bus subsidies in the current year, 2002/3 is therefore:

    7.  

    £000s

    Base budget 2001/2

    1,757

    Inflation to 2002/3

    42

    Policy increase

    250

    Expected carry-forward from 2001/2

    _165

    Estimated main budget total for 2002/3

    2,214

    RBSG (Government grant) 2001/2

    1,184

    Additional Government Grant (RBSG)

    _171

    Total RBSG for 2002/3

    1,355

    TOTAL AVAILABLE 2002/3

    3,569

  7. Existing expenditure comments are as follows:

    8.    

    £000s

    Variance

    (1a)

    Forecast out-turn 2002/3 if no replacement when contracts end

    2,492

    -30%

    (1b)

    Forecast out-turn 2002/3 if all contracts replaced at prevailing rate of price change

    3,390

    -5%

    (2)

    Current annual rate of expenditure

    3,235

    -9%

  8. Figure (2) above suggests that the Executive can agree services costing an extra £334,000 a year, whilst remaining within the finance available. However, it would be extremely unwise to take up all this slack at this meeting, right at the start of the financial year. There is a further scheduled retendering later in the year, plus the likely premature surrender by operators of some further subsidy contracts and withdrawal of some commercial bus services. On recent trends these can be expected to lead to further cost rises later in the year. The Executive will wish in any event to avoid committing all of this budget early in the year.

  9. Taking all of these factors into account, your officers suggest that the Executive aim that cost increases associated with this review do not exceed £120,000. My recommendations to be reported subsequently when tender prices have been received, will take this ceiling into account.

    10. Subsidy Prices

  10. Tender prices will not be available until shortly before the Executive meets, and they will therefore be reported in a later report, with my recommendations, to the meeting. Until all tender prices and "de minimis" propositions received have been analysed, I will not know what the overall impact on the public transport budget is likely to be. As agreed with the previous Executive Member for Transport, local members will be advised in advance of recommendations affecting their Divisions, and any written comments received from them will be included in supplementary Annex 3, to be reported later.

  11. If further support for any contract is not agreed at the meeting on 14 May 2002 (except where they have been replaced by alternative arrangements or contracts), then the service or journey concerned will cease after operation on Saturday 6 July 2002 or (in the case of services in Section B) Saturday 26 October 2002. The only exception to this will be if a settlement will be left with no other form of public transport. In any such cases, I shall recommend that contract arrangements be extended until February 2003 to allow time for alternatives such as car-sharing to be explored.

    12. Section A – Review of Subsidised Bus Services in Oxford and Abingdon Areas

  12. Subsidised bus services in the Oxford and Abingdon areas are due for their regular four-yearly review. Details of the services concerned, together with details of the present subsidy cost and any patronage data for each, and any particular requests received from local Councils, are set out in Annex 1.

  13. Where possible, outstanding requests for additional journeys or services within the review area have been incorporated in specifications. These include both those that were placed on the "waiting list" by the Public Transport Sub-Committee, and requests made as a result of the consultation with Parish and other local Councils during this review. In this tender round, the following outstanding "waiting list" requests have been included (dates last considered are shown in brackets):-

    1. A service to Arlington Drive, Marston Estate (19.2.98);

    2. A service between Rose Hill and Cowley Centre (19.2.98);

    3. An improved service for Peachcroft Estate, Abingdon (18.11.99);

    4. Improved (half-hourly) service Oxford – Cumnor – Wootton – Abingdon, plus Sunday service (4.2.99 and 17.5.01);

    5. Oxford – Boars Hill a.m. peak service (17.5.01);

    6. Oxford – Sunningwell early evening service (17.5.01);

    7. Service along Audlett Drive, Abingdon (30.8.01).

  14. The following additional requests have been received from those consulted during the review process (name of requester in brackets), and have also been included in tender specifications sent out:-

    1. Extension of 7B service to Headington Quarry village (North-East Area Committee, Oxford City Council);

    2. Evening and Sunday service on 5A/5B to Greater Leys (Blackbird Leys, Iffley and Littlemore Area Committee, Oxford City Council);

    3. Longer operating day including peak periods on Abingdon Town Services (Vale of White Horse District Council);

    4. 0825 (or similar) journey on Oxford – Boars Hill – Abingdon service to be re-routed to serve Sunningwell (Sunningwell Parish Council);

    5. Improved service to Littlemore Hospital (County Councillor McIntosh-Stedman).

  15. Officers from Public Transport and Education Transport have checked thoroughly for any opportunity to carry schoolchildren on public bus services, and several possibilities were considered. Additionally as part of the consultation process Parish Councils were asked whether they were aware of any flows of non-entitled schoolchildren (possibly using coaches hired by groups of parents) who could transfer to existing bus services if suitably timed.

  16. No such flows were identified by Parish Councils. However, one major change has been made by Education Transport, and one possibility has been discussed between the two departments, which would have the effect of transferring flows of schoolchildren from dedicated school transport to "mainstream" public transport. These are:-

    1. Education Transport have decided to withdraw four school buses to and from Cardinal Newman RC and St Augustine’s RC Schools in Oxford, with effect from the end of the Summer Term. 55 entitled and 112 non-entitled schoolchildren will travel instead to school on ordinary service buses, and the entitled pupils will receive season tickets from the Education Department.

    2. A possible integration of schoolchildren with "mainstream" public transport has been discussed, affecting the Henwood – Wootton – Abingdon area. These children could use commercial services 4/4B, but only if it was appropriately retimed and re-routed to serve the schools which Oxford Bus Company do not wish to do. Tenders have been invited for extra journeys to meet a request to increase this service to half hourly, which could include providing for schoolchildren in the morning, but in the afternoon a special school bus would still be needed to avoid clashing with a commercial journey.

      Section B – Review of Services Operated by Thames Travel

  17. A number of contracts held by Thames Travel are due to terminate on 26 October 2002. At the last Public Transport Sub-Committee Meeting held on the 30 August 2001, it was resolved that:-

    18. " in view of the complexity of the Wallingford area contracts and the need to include service 132 in the printed railway timetable to commence in September 2002 to begin consultations with affected local authorities immediately with a view to finalising the new contracts by May 2002".

  18. Consequently, following consultation (in which the majority of responses urged retention of the existing service levels), the contracts concerned were included within this tender round. A list of the services concerned is set out in Annex 1. Tender prices obtained will be contained in Supplementary Annex 3 to be circulated later.

    19. Section C – Commercial Withdrawals of Bus Services Service X59 (Oxford – Banbury)

  19. Stagecoach South Midlands proposed to reduce the daytime frequency of their mainly commercial service X59 (Oxford – Tackley – Deddington – Banbury) from hourly to every 90 minutes with effect from 10 February 2002. In addition they proposed to withdraw a number of early morning and late evening journeys which had only been introduced the previous August. I did not feel it appropriate to use my delegated powers to replace the latter journeys, in view of their short life, and they were accordingly withdrawn as proposed in February. However, the proposal would have led to withdrawal of convenient journey times from both ends of the route in the evening peak. Accordingly, following negotiation with the company and with the concurrence of the Executive Member, I concluded short-term contracts with the company which restore the hourly frequency from about 1445 onwards each day.

  20. Pressure continues from some Parishes and individuals to restore the hourly frequency throughout the day, which was not felt to be affordable when the present contracts were set up. Accordingly I have invited tenders for an hourly service throughout the day, as well as for continuation of the "hybrid" 90/60 minute frequency presently operated. If neither of these are attractively priced, it would be possible to fall back on the company’s commercial offer of a 90 minute frequency throughout, albeit at the risk of further protests.

    21. Service 488 (Banbury – Chipping Norton)

  21. Apart from one County Council contracted early morning journey (awarded to Cheney Coaches), the remainder of this service was provided commercially by Stagecoach Midland Red until being de-registered from 10 February 2002. The County Council entered into a short-term contract with Stagecoach to continue the previous level of service until 6 July 2002

  22. Following consultation with parishes, tenders have been sought for three variants as listed in Annex 1. The price of the short-term contract is given in Confidential Annex 2. Prices obtained for the longer-term contract will be given in Confidential Annex 3 to be circulated later.

    23. Section D – Changes in Arrangements for Subsidised Services Ridgeway Explorer service X47/X48 (Reading – Wantage – Swindon)

  23. In accordance with the decision of the Public Transport Sub-Committee in February 2001 I have awarded a two-year contract for the summer period in 2002 and 2003 to Weavaway Travel for the above services. Following confirmation of continued funding by the six participating authorities, the service commenced on 29 March 2002 and will operate on Sundays and Bank Holidays until 27 October 2002. The National Trails Office sought a longer-term arrangement to allow more advance publicity especially for the 2003 operation (which will be from 18/4/03 to 26/10/03). All the authorities concerned have also entered into two-year commitments.

  24. The National Trails Office is also keen to provide a similar level of service on Saturdays, for which an application for funding from the Countryside Agency (through the various Rural Transport Partnerships) is being processed. Oxfordshire Rural Community Council is leading on this application which is supported by the other funding authorities. In view of the timescale, if funding is granted, then the Ridgeway Explorer will only operate on 11 Saturdays in 2002 (from 6 July until 14 September). For 2003 it is proposed (and funding sought) for the same period of operation as for Sundays.

  25. Prices were obtained for both the Sunday and proposed Saturday services and these are given in confidential Annex 3. In view of the hoped for 75% funding of the Saturday service by the Countryside Agency the County Council contribution would be significantly less than for Sundays. The Saturday service will only operate if the RTP application is successful.

    26. Premature Surrender/Non-Continuation of Contracts:-

  26. A number of contracts included within the Banbury area review in Spring 2001 were only awarded for one year in the expectation that they might be affected by the introduction of the Cherwell Valley Taxibus Service for which the County Council has received dedicated Rural Bus Challenge funding. This project has not proceeded as quickly as expected but the existing contractors of the services shown below have indicated that they are not prepared to agree a contract extension (at the prices awarded in 2001 plus inflation) until such time as the taxibus can be introduced. Accordingly these contracts have been retendered.

    27. PT/C 15 Middle Barton – Banbury (Thur/Sat)

    PT/C 20 Banbury (Bridge St) – Easington/ Bodicote & Hardwick (Eves Fri/Sat).

    PT/C 34 Middle Barton – Oxford (Peaks)

  27. Additionally the required three months notice has been given by the current operators of the following contracts to prematurely surrender them.

    28. PT/C 10 Hornton – Banbury (Thurs)

    PT/S 9 Watlington – Thame (Tues/Sats)

    PT/S 10 Chalgrove – Thame (Tues)

    PT/S 106 Drayton St. Leonard – Abingdon (Mon/Wed/Fri)

  28. There was no time available to consult on these contracts so they have been offered for tender on the basis of the existing service. The prices obtained will be contained in confidential Annex 3 to be circulated later.

    29. Contract Renewal – Rural Bus Subsidy Grant Service

  29. Following a comprehensive review of Rural Bus Subsidy Grant funded services undertaken in autumn 2000, an extension of contract PT/S 131 (Sunday service Henley – Reading as part of a through route from High Wycombe) was agreed with the Wycombe Bus Company until 6 July 2002. This was on the basis that the Company was hopeful of generating additional passengers such that they could declare the operation to be commercial. Wycombe Bus were subsequently taken over by Arriva the Shires Ltd. Arriva has indicated that they are not prepared to operate the Oxfordshire section without subsidy but are willing to continue at the existing price until the next Henley area contract review due in July 2004. I am therefore proposing a new ‘de minimis’ contract at the (existing) price as given in confidential Annex 3.

    30. Contract PT/S 73 - Tappins Coaches (Upton – West Hagbourne - Didcot)

  30. Tappins Coaches has given notice of premature termination of this contract, which was awarded until July 2004, with effect from 6 July 2002. It provides for a Wednesday only shopper’s service (consisting of one journey in each direction during both the morning and afternoon off-peak periods) from Upton, West Hagbourne and Coscote to/from Didcot. Upton is also served on Mondays to Saturdays by Thames Travel service 134 (Chilton – Upton – Blewbury – Didcot). This generally provides an hourly frequency although there is at present a two-hour gap in the morning at the time when then the Tappin’s service offers a facility into Didcot (but this only runs on a Wednesday).

  31. In connection with the introduction of the new Astons & Moretons shuttle service, it has been agreed with Thames Travel that an additional journey to fill the gap in the morning service on route 134 from Upton can be provided (on Mondays to Saturdays) from approximately mid June 2002 (at no change in contract price). With the surrender of PT/S 73 this will result in West Hagbourne and Coscote being unserved unless some replacement facility can be procured.

  32. Surveys have shown that the main usage of the Tappin’s service is actually from Upton whilst there are on average only 3 passengers per day from West Hagbourne (and none from Coscote) who will lose their service to/from Didcot if contract PT/S 73 is not replaced

  33. At the last review of this service in July 2000 this contract was only initially awarded to Tappin’s on a short term basis whilst officers from Oxfordshire Rural Community Council investigated whether it would be possible to set up some form of local voluntary minibus scheme to replace the scheduled bus. Regrettably nothing came from this initiative despite discussions with the Parishes concerned so the Tappin’s contract was amended to run for the standard a four-year term.

  34. Officers will continue to investigate possible options of serving West Hagbourne on a low cost basis and any developments will be reported to the Executive at the meeting. Ultimately however it may not prove possible to continue to provide a direct service to/from Didcot from this village. West Hagbourne and Coscote also have a Friday only shopper’s bus to/from Wallingford (which is also included in the review of Thames Travel services detailed above) but usage of this facility from West Hagbourne is also very low.

    35. RECOMMENDATIONS

  35. The Executive is RECOMMENDED to make its decisions on subsidy for services described in this report on the basis of the tender prices contained in exempt Annex 3 to be reported subsequently.

 

DAVID YOUNG
Director of Environmental Services

Background papers: Correspondence with local councils, public transport representatives and transport operators (refer to contact officer)

Contact Officers: Alan Witton – Tel: Oxford 815683 (Section A and Service X59).
John Wood – Tel: Oxford 815802 (Section B and Service 488).
Allan Field – Tel: Oxford 815826 (Section D).

May 2002


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