Issue - meetings

Purpose of Report

The purpose of this paper is to seek agreement to extend the existing Portsmouth Park & Ride contract to October 2024.

Recommendations

It is recommended that the Cabinet Member for Traffic and Transportation:

1.    Agrees to extend the current supported Portsmouth Park & Ride contract up to 26 October 2024 with delegated authority to the Director of Regeneration in consultation with the Cabinet Member for Traffic and Transportation and Section 151 Officer to negotiate with the current contractor;

2.    Agrees the increase to the current contract price to an amount identified through the Department for Transport instigated network review process to a maximum increase of £45,000 per annum;

3.    Approves the development and implementation by the Transport Service supported by Procurement and Legal Services, of a procurement strategy to re-tender the contract.  The process will include review of options for the electrification or hydrogen operation of Park & Ride services, either at point of contract award or over the term of the contract.  This process will be informed by the projected impact of recent successful Portsmouth City Council funding applications including South East Hampshire Rapid Transit (SEHRT) and Portsmouth Bus Service Improvement Plan;

4.    Approves that pre-procurement activities may commence, including for peer review with fellow councils and soft market testing with operators.

5.    Notes that waiver approval will need to be sought from Procurement and Legal Services in respect of the proposed extensions to the contracts set out above, in accordance with the Council's Contracts Procedure Rules.

1.    Agreed to extend the current supported Portsmouth Park & Ride contract up to 26 October 2024 with delegated authority to the Director of Regeneration in consultation with the Cabinet Member for Traffic and Transportation and Section 151 Officer to negotiate with the current contractor;

2.    Agreed the increase to the current contract price to an amount identified through the Department for Transport instigated network review process to a maximum increase of £45,000 per annum;

3.    Approved the development and implementation by the Transport Service supported by Procurement and Legal Services, of a procurement strategy to re-tender the contract.  The process will include review of options for the electrification or hydrogen operation of Park & Ride services, either at point of contract award or over the term of the contract.  This process will be informed by the projected impact of recent successful Portsmouth City Council funding applications including South East Hampshire Rapid Transit (SEHRT) and Portsmouth Bus Service Improvement Plan;

4.    Approved that pre-procurement activities may commence, including for peer review with fellow councils and soft market testing with operators;

5.    Noted that waiver approval will need to be sought from Procurement and Legal Services in respect of the proposed extensions to the contracts set out above, in accordance with the Council's Contracts Procedure Rules.

Simon Bell, Principal Public Transport Officer, introduced the report. 

The purpose of this report was to seek agreement to extend the existing Portsmouth Park & Ride contract to October 2024.

Members' questions

In response to Members' questions, officers clarified:

·         A legal challenge, due to the length of the current contract (exceeding the 8-year period), was not anticipated following discussions with both First Bus and Stagecoach, during which neither company expressed concern.   Park and Ride usage had been very low because of the long period of non-operation during Covid and Lockdown.  This had effectively delayed the whole service. 

·         For the current financial year, the deficit on the Park and Ride was approximately £400k.  The deficit had deteriorated over the course of the pandemic.  Officers agreed to provide the exact figures to members as requested.  The Park and Ride was being subsidised from the Parking Reserve.

·         Officers agreed to provide Members with a breakdown of the total of the Parking Reserve, what it is being spent on and allocated to.

·         The cost of purchasing electric buses is substantially more than diesel buses but the running costs of electric buses are substantially less.  The warranty period of an electric bus battery is 10 years whereas diesels buses can run for approximately 16 years with repairs. 

Chair's summary

The Chair thanked officers for the report, noted the questions and responses and noted her approval for the recommendations.

Decision

Councillor Suzy Horton, on behalf of the Cabinet Member for Traffic and Transportation:

1.    Agreed to extend the current supported Portsmouth Park & Ride contract up to 26 October 2024 with delegated authority to the Director of Regeneration in consultation with the Cabinet Member for Traffic and Transportation and Section 151 Officer to negotiate with the current contractor;

2.    Agreed the increase to the current contract price to an amount identified through the Department for Transport instigated network review process to a maximum increase of £45,000 per annum;

3.    Approved the development and implementation by the Transport Service supported by Procurement and Legal Services, of a procurement strategy to re-tender the contract.  The process will include a review of options for the electrification or hydrogen operation of Park & Ride services, either at point of contract award or over the term of the contract.  This process will be informed by the projected impact of recent successful Portsmouth City Council funding applications including South East Hampshire Rapid Transit (SEHRT) and Portsmouth Bus Service Improvement Plan;

4.    Approved that pre-procurement activities may commence, including for peer review with fellow councils and soft market testing with operators;

5.    Noted that waiver approval will need to be sought from Procurement and Legal Services in respect of the proposed extensions to the contracts set out above, in accordance with the Council's Contracts Procedures Rules.