Decision details

To seek the Cabinet Member's approval.

That the Cabinet Member:

Approves, under Protocol 2B of the Council’s Financial Regulations, the award of the Local Bus Services Contract (PTU 251) for the Crich Services for a period of one year and one month, with the option to extend for up to a further two years, taking the contract up to a maximum term of three years one month, at a maximum cost of £1,620,532.29. 

The Crich Services local bus contract provides vital transport links and additional service frequencies across parts of the County where commercial services do not operate. Childrens Services contribute 15% towards the costs of these services due to entitled scholars travelling to Belper School and Sixth Form Centre, Belper, David Nieper Academy, Alfreton, both Upper and Lower campuses of Highfields School, Matlock and Swanwick Hall School, Swanwick.

Retaining these services will be welcomed by many communities who rely on local bus services as their only means of access to amenities, education, healthcare, work, and leisure.

Furthermore, use of public transport reduces the number of private vehicles on the road and a positive consequence of that is the reduction in CO2 emissions.  With many people becoming increasingly concerned for the wider environment, combined with the rising costs to own, and run a private car, it is anticipated that many travellers will be contemplating more sustainable travel options to benefit the environment and their own living costs.  It is therefore imperative that the public have access to a transport network that works for them.

The Council’s investment in retaining and restoring local supported bus services will ensure the continued viability of the wider network and when this is combined with the projects to be delivered by the BSIP to make bus travel more attractive has the potential to significant increase passenger numbers overall and grow the public transport network in Derbyshire.

Option 1: Abandon the procurement exercise and allow the current contract to end on 24 August 2024 and provide no replacement services.  The Council has a duty under Section 63(1)(a) of the Transport Act 1985 to secure the provision of passenger transport as the Council considers necessary.  The option to do nothing would be difficult as stated in Paragraph 4.17 and 5.2 as the Council would fail in its statutory duty to consult properly and fairly.  This option is therefore not recommended.

Option 2: Award Contracts. Following a compliant procurement exercise, the contracts could be awarded, thus maintaining bus services. However, there is currently insufficient budget to meet the cost of delivering these services beyond October 2025. These costs will form a pressure on the 2025-26 budget and will need to be considered in light of other significant cost increases and service pressures that both the Place Department and the wider Council is facing.  Alternative sources of funding/budget reductions would be required. This would materially affect the other budgets within the Council or lead to a significant overspend on Public Transport.

It is also important to highlight that such a decision would defer any decision on the future of services and thus result in any potential public consultation having to be undertaken in late 2024/early 2025, as highlighted in Paragraph 5.5.

The advantages and disadvantages of the above two options are outlined below in Table 3.

Table 3 – Option Appraisal of the Proposed Reduction of Contracts