Agenda item - BTN Bikeshare Reorganisation

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Agenda item

BTN Bikeshare Reorganisation

Report of the Executive Director, Economy, Environment & Culture

Decision:

That the Environment, Transport & Sustainability Committee:

 

1)             Agree to procure a single supplier concession contract which is established as a framework so that neighbouring authorities can enter into call-off contracts with the supplier creating a wider bike network.

 

2)             Agree to grant delegated authority to the Executive Director Economy, Environment &Culture and Executive Lead Strategy Governance & Law to take all necessary steps to implement the recommendation at 2.1.

 

3)             Approve that any surplus revenue from the bikeshare scheme received by the Council is invested back into servicing the borrowing and / or fleet replacement.

Minutes:

49.1      The Committee considered a report of the Executive Director, Economy, Environment & Culture that considered the findings of the independent specialist review of the Brighton Bikeshare (BTN Bikeshare) scheme that had been undertaken by Steer (a specialist transport consultancy). The report considers options for the sustainable future of the BTN Bikeshare Scheme in terms of the business case and a preferred procurement model and also included options for expansion to a city-wide scheme and for a scheme that could expand in the future across the Greater Brighton city region.

 

49.2      In response to a proposal from Councillor Wares to publicly report the subsidy value figure, the Executive Director, Economy, Environment & Culture explained that Officers recommended that the profit share assumptions remain confidential. This was because to bring them into public domain at this stage would show potential bidders the modelling assumptions and may mean that the council receive less competitive bids submitted through the tender process. Therefore, the public interest in maintaining the exemption to disclosure outweighed the public interest in disclosure.

 

49.3      In response to questions raised by Councillor Appich, the Access Fund Manager explained that the procurement process would take some time and therefore, the impact of the terms of the UK’s exit impending exit from the EU would be known later in that process. Community Interest Companies (CiC’s) had been ruled out as concessionaire’s due to the exposure to risk the council then may have in relation to costs for the transfer of staff and legal and governance matters. Finally, there were a number of options for sponsorship and progress on those options was subject to the outcome of the decision on the committee.

 

49.4      Councillor Lloyd welcomed the report and the introduction of e-bikes that would help those residents in the fringe and outskirts of the city and the more challenging topography.

 

49.5      Councillor Wares stated that it was disingenuous to present the concession contract as financially viable or sustainable to it was wrong to say that a surplus would be delivered. Councillor Wares stated that the scheme would operate with an effective subsidy from the council of £116,000 per annum in the best-case scenario.

 

49.6      In response to questions from Councillor Wares, it was explained that it would not be possible to recover some of the costs of the purchase of e-ready bikes following a takeover of the company the purchase had been made from. It was clarified that the council had arranged a payment schedule for the surplus share owed to it by the current operator and the full amount would be cleared by the end of the contract.

 

49.7      RESOLVED- That the Environment, Transport & Sustainability Committee:

 

1)             Agree to procure a single supplier concession contract which is established as a framework so that neighbouring authorities can enter into call-off contracts with the supplier creating a wider bike network.

 

2)             Agree to grant delegated authority to the Executive Director Economy, Environment &Culture and Executive Lead Strategy Governance & Law to take all necessary steps to implement the recommendation at 2.1.

 

3)             Approve that any surplus revenue from the bikeshare scheme received by the Council is invested back into servicing the borrowing and / or fleet replacement.

 

Councillors Brown and Wares requested that their vote against the recommendations be recorded in the minutes

Supporting documents:

 


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