DRAFT TRANSPORT ACT The Tyne and Wear Quality Contracts Scheme for Buses [date] ARRANGEMENT OF THE SCHEME ARTICLE

Transcription

1 DRAFT TRANSPORT ACT 2000 The Tyne and Wear Quality Contracts Scheme for Buses [date] Made [date] ARRANGEMENT OF THE SCHEME ARTICLE 1. CITATION AND COMMENCEMENT 2. INTERPRETATION 3. THE QCS AREA 4. DESIGNATION OF SERVICES WITHIN THE QCS AREA 5. EXCLUSIONS FROM THE QCS 6. CLEARANCE CERTIFICATES 7. PROCUREMENT OF QUALITY CONTRACTS 8. DURATION AND TRANSITION 9. TICKETING AND ZONES 10. ALLOCATION ARRANGEMENTS 11. CONCESSIONARY TRAVEL 12. NET PROCEEDS DERIVED FROM THE QCS 13. GOVERNANCE OF THE QCS 14. TIME ANNEXES ANNEX 1: SERVICES INCLUDED ANNEX 2: TICKETING ANNEX 3: FARE ZONES ANNEX 4: QUALITY CONTRACT STANDARDS ANNEX 5: ALLOCATION ARRANGEMENTS ANNEX 6: EXCLUDED AND EXEMPTED SERVICES ANNEX 7: GOVERNANCE ARRANGEMENTS ANNEX 8: TENDER FEATURES NTB/NTB/334208/1/UKM/

2 WHEREAS: A B C The Transport Act 2000 (as amended) ("2000 Act") makes provision for a local transport authority to make a quality contracts scheme covering the whole or part of its area. Pursuant to the provisions of the Durham, Gateshead, Newcastle upon Tyne, North Tyneside, Northumberland, South Tyneside and Sunderland Combined Authority Order 2014 (the "Order"), the Durham, Gateshead, Newcastle upon Tyne, North Tyneside, Northumberland, South Tyneside and Sunderland Combined Authority (the "NECA") is the successor transport authority to the Tyne and Wear Integrated Transport Authority ("ITA") and has by operation of the Order had transferred to it the powers and responsibilities of the ITA and has assumed responsibility for the making of this Scheme; The NECA is satisfied that the requirements of: (i) (ii) (iii) Section 125 of the 2000 Act relating to notice of and consultation on the Scheme have been satisfied; [section 126A of the 2000 Act relating to approval of the Scheme by a QCS board have been satisfied and due account of the QCS board's findings has been taken by the NECA] [Note: To be revised and amended as appropriate following conclusion of the QCS board procedure.]; and section 124(1) of the 2000 Act will be met by the making of this Scheme in respect of the Tyne and Wear Area which forms part of the area of the NECA. D E F G H Sections 127(2) and (3) of the Act make provision for certain matters that the Scheme must specify and certain matters that the Scheme must outline, and section 127(4) and (6) of the 2000 Act make provision for certain matters that the Scheme may provide. Section 127(5) of the 2000 Act makes provision for the Scheme to contain such ancillary provisions as the NECA thinks fit. Section 102B of the Local Transport Act 2008 ("2008 Act") makes provision for the NECA to do anything it considers appropriate for the purpose of carrying out any of its functions or for purposes incidental (directly or indirectly) to its functions. Section 102B(5) of the 2008 Act makes provision for the NECA to delegate to Nexus its function of taking action under section 102B(1) of the 2008 Act (but not the function of determining what action to take). Pursuant to section 102B(5) of the 2008 Act the NECA has determined that Nexus should carry out certain actions pursuant to the terms of the Scheme. I Pursuant to section 162(4) of the 2000 Act, references to the NECA in sections 124(4)(a), (5) and (7), section 127(3A), section 127A(7), section 129(4), section 130 and section 131 of the 2000 Act are to be construed as references to Nexus. Now, therefore, the NECA, in exercise of the powers conferred on it by sections 124 to 134B of the 2000 Act, and of all other powers enabling it in that behalf, hereby makes the following Scheme: NTB/NTB/334208/1/UKM/

3 1. Citation and commencement 1.1 This Scheme may be cited as the Tyne and Wear Quality Contracts Scheme for Buses [date] and is made on. 2. Interpretation 2.1 In this Scheme: "16-18 Scheme" means the travel scheme provided by the NECA which offers discounts on adult season ticket prices for travel on; (i) the Metro, (ii) the Shields Ferry or (iii) the Sunderland Newcastle local rail service or (iv) the Quaylink bus; "1985 Act" means the Transport Act 1985; "2000 Act" means the Transport Act 2000 (as amended); "2008 Act" means the Local Transport Act 2008; "2000 Act Concessionary Travel Reimbursement Scheme" means the concessionary travel reimbursement scheme made (from time to time) by Nexus pursuant to the Transport Act 2000 in respect of the Tyne and Wear Area; "4-weekly ticket" means a ticket which entitles the holder to make an unlimited number of valid journeys within a four week period, and may be either a singlemode ticket or a multi-mode ticket; "Affected Local Services" has the meaning given in regulation 2 of the QCS TUPE Regulations; "all-day ticket" means a ticket which entitles the holder to make an unlimited number of valid journeys on a day, until the end of operation of Local Services other than Night Local Services, and may be either a single-mode ticket or a multi-mode ticket; "all modes add-on" means a supplement to a multi trip ticket which is a singlemode ticket, which entitles the holder to make valid journeys by all of the following modes of transport; (i) bus, (ii) the Metro, (iii) the Shields Ferry or (iv) the Sunderland Newcastle local rail service; "Allocation Arrangements" means the allocation arrangements set out in Annex 5; "Annual Development Cycle" means the process set out in Part 3 (Annual Development Cycle) of Annex 7; "annual ticket" a ticket which entitles the holder to make an unlimited number of journeys within a twelve month period, and may be either a single-mode ticket or a multi-mode ticket; Appropriate Representatives has the meaning given to it in regulation 13 (3) of TUPE; NTB/NTB/334208/1/UKM/

4 "Category A Excluded Service" means a Local Service specified in Part 1 of Annex 6; "Category B Excluded Service" means a Local Service specified in Part 2 of Annex 6; "Certificate of Professional Competence" has the meaning given to it in regulation 2(1) of the Vehicle Drivers (Certificates of Professional Competence) Regulations 2007; "Child Concessionary Travel Scheme" means a Discretionary Concessionary Travel Scheme in respect of concessionary travel by children under the age of 16 years; "Clearance Certificate" has the meaning given to it in section 6B(8) of the 1985 Act; "Coach Local Service" means a Local Service: primarily designed for journeys in excess of 15 miles; which does not permit point-to-point travel within the QCS Area, even where they are registered as Local Services within the QCS Area, but which may have designated stops less than 15 miles apart within the QCS Area; and which uses vehicles which are not licensed to carry standing passengers; "Commencement Date" has the meaning ascribed to it in Article 8.1; "Community Transport Local Service" means a Local Service which has been granted a community bus permit in accordance with section 22 of the 1985 Act; "Constituent Councils" means the councils for the local government areas of Durham, Gateshead, Newcastle upon Tyne, North Tyneside, Northumberland, South Tyneside and Sunderland; "DBS certificate" means the certificate issued by the Disclosure and Barring Service following completion of a Disclosure and Barring Service check; "Discretionary Concessionary Travel Scheme" means a concessionary travel scheme made by the NECA pursuant to its powers under the 1985 Act; "Emergency Service Subsidy Agreement" has the meaning ascribed to it in regulation 4(3) of the Quality Contracts Schemes (Tendering Requirements) (England) Regulations 2009; "ENCTS" means the English National Concessionary Travel Scheme which entitles eligible older and disabled people to free off peak travel on eligible local buses within England; "ETM" means Electronic Ticket Machine; NTB/NTB/334208/1/UKM/

5 "Euro III emissions standard" means the emission standard in respect of the gaseous and particulate pollutants and opacity of smoke from the engine of the vehicle, complying with the limit values set out in row A of the table in section of Annex I to Directive 1999/96/EC; "Euro V emissions standard" means the emission standard in respect of the gaseous and particulate pollutants and opacity of smoke from the engine of the vehicle, complying with the limit values set out in row B2 of the tables in section of Annex I to Directive 2005/55/EC; "Excluded Service" means a Category A Excluded Service or a Category B Excluded Service; "Excursions and Tours Local Service" means a Local Service where passengers travel together on a journey, with or without breaks, from one or more places to one or more places and back, which operates once a week or more for at least 6 weeks in a row and shall include sightseeing services operated by open-top or heritage vehicles; "External Cross Boundary Bus Collaboration Agreement" has the meaning given to it in paragraph 2.2 of Part 1 of Annex 7; "Franchise Agreement" has the meaning given to it in section 23(3) Railways Act 1993; "Gold Card Plus" means a product available to eligible ENCTS pass holders, which for an annual fee permits all-day travel on (i) Quality Contract Services, (ii) Category B Excluded Services, (iii) Local Services granted a Clearance Certificate, (iv) Metro Services, (v) Shields Ferry Services and (vi) Sunderland- Newcastle local rail services; "Governance Arrangements" means those arrangements specified in Annex 7; "Highways Agency" means the executive agency of the Department for Transport which is responsible for operating, maintaining and improving the strategic road network in England on behalf of the Secretary of State for Transport; "Impacted Council" means any local authority that is not a Tyne and Wear Council whose area is served by QCS Services and that may be affected by the introduction of the Scheme; "Local Bus Board" has the meaning given to it in Part 2 of the Governance Arrangements; "Local Service" has the meaning given to it in section 2 of the 1985 Act; "Metro" means the light rapid transit system operating in Tyne and Wear; "multi-mode ticket" means a ticket which entitles the holder to make journeys by all of the following modes of transport; (i) bus, (ii) the Metro, (iii) the Shields Ferry or (iv) the Sunderland Newcastle local rail service; NTB/NTB/334208/1/UKM/

6 "multi-trip ticket" means an all-day ticket, a weekly ticket, a 4-weekly ticket or an annual ticket; "NECA" has the meaning given to it in Recital B; "NECA Cross Boundary Bus Collaboration Protocol" has the meaning given to it in paragraph 2.1 of Part 1 of Annex 7; "NELB" means the means the Leadership Board of the NECA; "Nexus" means the executive body of the NECA for the purposes of Part 5 of the Local Transport Act 2008 and Part 6 of the Local Democracy, Economic Development and Construction Act 2009, known as the Tyne and Wear Passenger Transport Executive; "Night Local Service" and night bus means a Local Service which operates only at night time (typically between the hours of 2330 and 0500 when other types of service are not operational), which commences service following cessation of operation of a Standard Local Service, and which shall operate with an N prefix to its allocated service number; "Operator" means a person operating local services or quality contract services, and references to an Operator shall be construed in accordance with section 137(7) of the 1985 Act; "Peak Vehicle Requirement" or "PVR" means in respect of a Quality Contract Service the total number of Public Service Vehicles required to operate such Quality Contract Service in accordance with the terms of the relevant Quality Contract; "Public Interest Criteria" means the public interest criteria specified in section 124(1)(a) to (e) of the 2000 Act; "Public Service Vehicle" has the meaning given to it in the Public Passenger Vehicles Act 1981; "Prescribed Time" means the prescribed time as defined in regulation 10 of the QCS Registration Regulations; "Quality Contract" means an agreement entered into between Nexus and an Operator pursuant to Article 7; "Quality Contract Services" mean Local Services provided pursuant to a Quality Contract; "QCS Area" means the Tyne and Wear Area on the date of this Scheme; "QCS board" has the meaning given to it in section 126A of the 2000 Act; "QCS TUPE Regulations" means the Quality Contracts Schemes (Application of TUPE) Regulations 2009; "QCS Network" means the network of local services to be provided by Nexus in accordance with Article 4; NTB/NTB/334208/1/UKM/

7 "QCS Registration Regulations" means the Public Service Vehicles (Registration of Local Services) (Quality Contracts Schemes) (England and Wales) Regulations 2009; "Relevant Employee" has the meaning given in regulation 2 of the QCS TUPE Regulations; "Relevant Information" has the meaning given in regulation 2 of the QCS TUPE Regulations; "Relevant Operator" has the meaning given in regulation 2 of the QCS TUPE Regulations; "Replacement Local Service" means a Local Service provided to replace other modes of public transport which have been temporarily suspended including Metro, national rail or Shields Ferry replacement services; "Round 1 Quality Contracts" has the meaning given to it in paragraph 2.1 of Annex 8; "Round 2 Quality Contracts" has the meaning given to it in paragraph 2.2 of Annex 8; "Scheme" means this quality contracts scheme; "Scholars Local Service" means a Local Service providing transport for pupils to and/or from schools within the QCS Area provided that a Scholars Local Service may also provide transport to the general public; "Scholars and Works Quality Contract" shall mean a Quality Contract let in respect of Scholars Local Services and/or Works Local Services; "season ticket" means a weekly ticket, 4-weekly ticket or annual ticket, or any other ticket which Nexus may specify with a validity longer than that of an allday ticket; "Shields Ferry" means the commuter ferry operating a daily passenger service across the River Tyne between North Shields and South Shields, operated by Nexus; "single-mode ticket" means a ticket which entitles the holder to make valid journeys by one of the following modes of transport only: (i) bus, (ii) the Metro, (iii) the Shields Ferry or (iv) the Sunderland Newcastle local rail service; "single-trip ticket" means a ticket which entitles the holder to make a single journey, and may be either a single-mode ticket or a multi-mode ticket; "Smartcard" means an ITSO enabled plastic card that may or may not contain a photo, which has an embedded microchip to store product and customer information; NTB/NTB/334208/1/UKM/

8 "Special Event Local Service" means a Local Service procured by Nexus specifically for the purpose of providing additional capacity to the Standard Local Service network for a one-off special event; "Standard Local Service" means a registered Local Service which is available to the general public and has stopping places no further than 15 miles apart, and which is not a Coach Local Service, Community Transport Local Service, Excursions and Tours Local Service, Night Local Service, Replacement Local Service, Scholars Local Service, Special Event Local Service, Taxibus Local Service or a Works Local Service; "Sunderland-Newcastle Local rail service" means any national rail services operated pursuant to franchise agreements or otherwise agreed to accept multimode tickets between Sunderland and Newcastle; "Taxi Bus" means a licensed taxi used to operate a Local Service under a restricted PSV operator's licence pursuant to section 12(1)(b) of the 1985 Act, where licensed taxi shall have the meaning ascribed to it in section 13(3) of the 1985 Act; "Taxibus Local Service" means a Local Service where a licensed taxi is used to operate a Local Service under a restricted PSV operator s licence pursuant to section 12(1)(b) of the 1985 Act, where licensed taxi shall have the meaning ascribed to it in section 13(3) of the 1985 Act; "Taxi Bus Quality Contract" means a Quality Contract let in respect of Local Services to be provided by one or more taxi buses; "Taxi Bus Service" means a Local Service which is provided by a Taxi Bus; TNEC means the Transport North East Committee, a joint committee of the Constituent Councils and the NECA; "Traffic Commissioner" has the meaning given to it in the Public Passenger Vehicles Act 1981; "Transitional Period" has the meaning given to it in regulation 2(1) of the QCS Registration Regulations; "TUPE" means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (as amended by the Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014); TWSC means the Transport North East (Tyne and Wear) Sub-committee, a sub-committee of TNEC comprising representatives from the Tyne and Wear Councils only; "Tyne and Wear Area" means the area consisting of the areas of the metropolitan district councils for Newcastle, Gateshead, North Tyneside, South Tyneside and Sunderland; "Tyne and Wear Councils" means the councils for the metropolitan district areas of Gateshead, Newcastle Upon Tyne, North Tyneside, South Tyneside and Sunderland; NTB/NTB/334208/1/UKM/

9 "Tyne and Wear Council Area" means each of the metropolitan district areas of Gateshead, Newcastle Upon Tyne, North Tyneside, South Tyneside and Sunderland; "Tyne and Wear User Consultative Forum" means a public forum to be established by Nexus for the purposes of facilitating dialogue between Nexus, passenger representatives, local business, stakeholders and the general public in relation to the Scheme; "valid journey" means a journey which is valid within the terms of the relevant ticket; "weekly ticket" means a ticket which entitles the holder to make an unlimited number of valid journeys within a seven day period, and may be either a singlemode ticket or a multi-mode ticket; and "Works Local Service" means a Local Service providing transport to or from work places or other places which are not served by a Standard Local Service, which require a Local Service only at specified times of the day, or on specific days, provided that a Works Local Service may also provide transport to the general public. 2.2 In this Scheme, except where the context otherwise requires: reference to a statutory provision shall include a reference to: the statutory provision as modified or re-enacted or consolidated from time to time whether before or after the date of this Scheme; any subordinate legislation made under the statutory provision whether before or after the date of this Scheme; reference to a "person" or "persons" includes bodies corporate, unincorporated associations and partnerships and that person's or those persons' legal personal representatives, successors and permitted assigns. 3. The QCS Area 3.1 The QCS Area is hereby designated as the area to which the Scheme relates Designation of Services within the QCS Area 4.1 The Local Services to be provided under the Scheme shall include: Night Local Services; Scholars Local Services; Standard Local Services; Taxibus Local Services; and 1 S 127(2)(a). NTB/NTB/334208/1/UKM/

10 4.1.5 Works Local Services. 4.2 Where a Local Service is to be provided pursuant to a Quality Contract both inside and outside the QCS Area, any part of the service which is to be provided outside the QCS Area shall be treated as a separate service for the purposes of this Scheme if there is any stopping place for that part of the service outside of the QCS Area, and the Operator shall be required to operate such service as a Local Service. 4.3 Where a Quality Contract Service falls within Article 4.2, the provisions of Part 6 of the Governance Arrangements shall apply in respect of any variation to such Quality Contract Service. 5. Exclusions from the QCS 5.1 Category A Excluded Services shall be excluded from the Scheme in accordance with section 127(4) of the 2000 Act provided that where an Operator makes an application to vary or cancel the registration of such Category A Excluded Service in accordance with the Transport Act 1985, it shall provide Nexus with written notice on the date on which the traffic commissioner accepts such application together with details of the Category A Excluded Service to be varied or cancelled, which shall be no less than 56 days before such variation or cancellation shall become effective. 5.2 Category B Excluded Services shall be excluded from the Scheme in accordance with section 127(4) of the 2000 Act provided that such Local Services at all times meet the following conditions: the services shall have been in operation as registered Local Services prior to the date of this Scheme; the Operator of such Local Service shall notify Nexus that the Operator intends to operate such Local Service following the Commencement Date no less than 112 days prior to the Commencement Date; the route, timetable and stopping locations of each such service continues to reflect the route, timetable and stopping locations of that service which have been registered by the Operator under the registration number listed in Schedule 1 of Part 2 of Annex 6 in respect of that service save that: a Local Service which has not varied from those specified in paragraph 1.1 of Part 2 of Annex 6 shall be deemed to comply with this Article 5.2.3; a Local Service shall be deemed to comply with this Article where the NECA has determined that any variation to the route, timetable or stopping locations will not adversely affect services provided pursuant to the Scheme; the Public Service Vehicles used to provide the services shall have been issued with all certificates required pursuant to regulation 3(8) of the Public Service Vehicles Accessibility Regulations 2000, as if such vehicle had been manufactured on the later of: the Public Service Vehicle's date of manufacture; and NTB/NTB/334208/1/UKM/

11 st October 2004; the Operator of such Local Service shall notify Nexus no less than 56 days prior to the cancellation of the service and/or variation to such Local Service which is not in accordance with Article 5.2.3, and following the date of such cancellation or variation, such service shall no longer be a Category B Excluded Service; and the Operator of such Local Service shall accept all valid tickets: 6. Clearance certificates listed in paragraphs 3.2, 3.4, 3.5 and 3.6 of Annex for trips made by passengers within the QCS Area; in respect of entitling travel in accordance with Discretionary Concessionary Travel Schemes available within the Tyne and Wear Area which are in addition to the requirements of the ENCTS including but not limited to Gold Card Plus, 6.1 Where, following the Commencement Date, either: provided that the Operator is reimbursed for such trips by the NECA or other party responsible for distribution of ticket revenue in respect of such tickets, in respect of such trips provided that, from the Commencement Date, the Operator submits supporting evidence of such trips to the NECA every four weeks in the form of ETM data an Operator proposes to register a Local Service with one or more stopping places within the QCS Area, which is not subject to a Quality Contract and is not excluded pursuant to Article 5; 2 or an Operator proposes to vary a Local Service with one or more stopping places within the QCS Area, which is not subject to a Quality Contract and is not excluded pursuant to Article 5; 3 then, following consultation by the Traffic Commissioner with the NECA pursuant to section 6B(4) of the 1985 Act, the NECA shall consider the registration or variation proposal and, where the NECA considers that such registration or variation will not have an adverse effect on Local Services provided under Quality Contracts in the QCS Area, the NECA shall issue a Clearance Certificate to the Traffic Commissioner in respect of such service within the Prescribed Time. 7. Procurement of Quality Contracts 7.1 Subject to Article 7.8, Nexus shall invite tenders for the provision of the services to which this Scheme relates for the periods and on the basis specified in an invitation to tender in the form specified in Article section 6B of the 1985 Act pursuant to section 6(2B) of the 1985 Act 3 section 6B of the 1985 Act pursuant to section 6(7A) of the 1985 Act NTB/NTB/334208/1/UKM/

12 7.2 Nexus shall issue invitations to tender 5 for each Quality Contract: [date to be specified by reference to timetable, once date for making of scheme is determined]and, in any event, on a date no later than 15 months prior to the Commencement Date in respect of the Round 1 Quality Contracts which are to be let to commence on the Commencement Date; [date to be specified by reference to timetable, once date for making of scheme is determined] and, in any event, on a date no later than 10 months prior to the Commencement Date in respect of the Round 2 Quality Contracts which are to be let to commence on the Commencement Date; save where, in an emergency, a shorter time period is required in order to ensure continuous provision of services, at least 9 months prior to the date for commencement of any Round 1 Quality Contracts for which an invitation has not been issued in accordance with Article 7.2.1; save where, in an emergency, a shorter time period is required in order to ensure continuous provision of services, at least 8 months prior to the date for commencement of any further Round 2 Quality Contracts for which an invitation has not been issued in accordance with Article 7.2.2; and subject to Article 7.8, where, in an emergency, a shorter time period is required to ensure continuous provisions of services, as soon as reasonably practicable following Nexus determining that such a Quality Contract is required to be let. 7.3 Nexus shall issue each invitation to tender: in such a manner as Nexus considers appropriate for bringing it to the attention of persons that may be interested; in accordance with the requirements of the Utilities Contracts Regulations 2006; and to all persons who have given Nexus written notice pursuant to section 130(4) of the Transport Act 2000, specifying the address to which the invitation to tender should be directed. 7.4 Each invitation to tender for a Quality Contract shall specify: the Local Services to be provided under that Quality Contract; the period specified for such Quality Contracts, which shall be no greater than 10 years; the minimum standards applicable to such Quality Contract, as specified in Annex 4 to this Scheme; 4 S 130(1) 5 Section 127(3A) requires the date/dates for ITTs to be specified. We have split this between the initial ITTs, and any future ITTs for re-let services. Absolute dates do not make practical sense, as there may be early termination or services, and/or Nexus may choose to exercise the extension provisions within the quality contracts to extend them from 7 to 8, 9 or 10 years 6 Section 130(2) NTB/NTB/334208/1/UKM/

13 7.4.4 the other requirements for a tender in respect of such Quality Contract as specified in Annex 8 to this Scheme, including: any pre-qualification criteria specified for such Quality Contract; the evaluation criteria for each Quality Contract; any specified contract requirements for such Quality Contract; the deadlines for responding to such Quality Contract; 7.5 Nexus shall only accept tenders submitted by persons belonging to a category listed in section 130(5) of the Transport Act Nexus shall keep under review the extent to which the Quality Contracts entered into by Nexus pursuant to this Scheme are complied with After entering into a Quality Contract Nexus shall give notice to the Traffic Commissioner of: the Quality Contract Services to be provided in accordance with that Quality Contract; and the duration of that Quality Contract, and Nexus shall also notify the Traffic Commissioner of any changes in the Quality Contract Services in accordance with the terms of the Quality Contract, and any early termination or extension of the term of the Quality Contract, in accordance with its terms. 7.8 Nexus shall not be required to tender for Quality Contract Services where either: section 131(1) of the 2000 Act applies, provided that any Quality Contract let without inviting tenders has a duration of no more than 12 months from the day on which such services are first to be provided, and that Nexus then invites tenders for such services as soon as practicable after the Quality Contract is entered into; 8 or Regulation 5(1) of the Quality Contracts Schemes (Tendering Requirements) (England) Regulations 2009 applies, provided that the Quality Contract for such services has a maximum duration of no more than two years, commencing with the day on which services are first provided pursuant to that Quality Contract Nexus shall publish the information required by regulation 7 of the Quality Contracts Schemes (Tendering Requirements) (England) Regulations 2009 in respect of each tender and Quality Contract. 7 S 124(7) 8 Regulation 6 Quality Contracts Schemes (Tendering Requirements)(England) Regulations Regulation 5(1) and 5(2) Quality Contracts Schemes (Tendering Requirements)(England) Regulations 2009 NTB/NTB/334208/1/UKM/

14 7.10 Nexus shall publish the information required by Article 7.9 in accordance with the requirements of regulation 8 of the Quality Contracts Schemes (Tendering Requirements) (England) Regulations Duration and Transition 8.1 This Scheme shall come into operation on [date to be determined which will reflect an 18 month procurement period and six months of transition]] ("Commencement Date") and shall remain in operation for a period of 10 years from the Commencement Date. 8.2 Part 2 of the QCS Registration Regulations shall apply to any application to register or vary or cancel a registration of a local service with stopping places in the QCS Area, during the Transitional Period. 8.3 Where pursuant to regulation 6(3)(a) of the QCS Registration Regulations the Traffic Commissioner consults with the NECA in respect of a proposal to register, or vary or cancel the registration of, a Local Service during the Transitional Period, the NECA shall consider the registration or variation proposal and, the NECA shall notify the Traffic Commissioner whether: the NECA considers that such registration or variation will have a significantly detrimental effect on persons using such service, or a significant proportion of such persons, taking into account any Quality Contract Service which would replace such Local Service; or such Local Service would be an Excluded Service from the Commencement Date. 8.4 Where a Local Service which is to be wholly or materially replaced by a Quality Contract Service is varied or cancelled during the Transitional Period, or prior to, the Commencement Date, and the NECA, acting reasonably, believes that the variation or cancellation of that service will have a detrimental effect on persons using the service or on the anticipated benefits to be derived from the Scheme then Nexus may procure an Emergency Service Subsidy Agreement in respect of such Local Services, or any part of such Local Services. 9. Ticketing and Zones 9.1 Each Quality Contract shall require the Operator to accept each of the ticket types specified in Annex which are applicable to each service provided pursuant to that Quality Contract. 9.2 The fare zones for tickets accepted pursuant to Article 9.1 shall be those specified in Annex The maximum fare payable in respect of the ticket types specified in Annex shall be determined in accordance with the governance arrangements. 10. Allocation Arrangements 10.1 The Allocation Arrangements for the Scheme shall be as set out in Annex Concessionary Travel 11.1 During the term of this Scheme the NECA shall maintain a Concessionary Travel Scheme pursuant to section 93 of the 1985 Act which provides comparable concessionary travel to concessionary passengers using Excluded Services and local services subject to a clearance NTB/NTB/334208/1/UKM/

15 certificate as the concessionary travel provided to concessionary passengers using Quality Contract Services and the NECA shall procure that the Operators of such Local Services are reimbursed for the carriage of such concessionary passengers in accordance with the 1985 Act During the term of this Scheme Nexus shall, pursuant to section 149 of the Transport Act 2000, either: maintain a 2000 Act Concessionary Travel Reimbursement Scheme; or enter into agreements with operators of Excluded Services and Local Services subject to a clearance certificate, to reimburse Operators of Excluded Services and Local Services subject to a clearance certificate for the provision of concessions under section 145A(1) of the Transport Act 2000 in respect of eligible journeys. 12. Net proceeds derived from the QCS 12.1 Where Nexus receives revenues or other payments pursuant to the terms of a Quality Contract entered into pursuant to this Scheme, Nexus shall use such monies to meet the running costs of the Scheme, including, without limitation, any costs incurred by Nexus in respect of the Scheme which shall include the operational costs of the Scheme and payments made to Operators of Quality Contract Services Following the application by Nexus of any revenues or other payments that Nexus receives pursuant to the terms of a Quality Contract in accordance with Article 12.1, Nexus will retain any excess monies which will be spent at the direction of the NECA for the purposes of the Scheme or for the purposes of payments under the Quality Contracts entered into pursuant to the terms of this Scheme, in accordance with the terms of such Quality Contracts and the Governance Arrangements, including: Nexus varying existing Quality Contract Services and/or Quality Contracts in accordance with this Scheme; Nexus procuring additional services through new Quality Contracts in accordance with Article 7; Nexus increasing the standards of existing or new Quality Contract Services; Nexus providing other facilities or benefits to users of Quality Contract Services; Nexus reducing (including reducing any required increase in) the fares payable by passengers using Quality Contract Services. 13. Governance of the QCS 13.1 The Governance Arrangements for the Scheme set out in Annex 7 shall apply. 14. Time 14.1 From the Commencement Date and for the duration of this Scheme, the NECA shall ensure that those steps that it considers necessary to procure all those things that ought reasonably to NTB/NTB/334208/1/UKM/

16 be done to ensure that Operators can deliver the Quality Contract Services (including compliance with the minimum standards required under Annex 4) as required under the terms of this Scheme are taken within a reasonable time frame In any case where an Operator is, for whatever reason, unable to deliver some or all of the Quality Contract Services effectively or to meet one or more of the minimum standards required under Annex 4 by the Commencement Date and/or unable to do so during the term of a Quality Contract the NECA may, notwithstanding any other provision within this Scheme or the relevant Quality Contract(s), in its sole discretion, direct Nexus to allow the Operator a reasonable time to rectify such default provided that the NECA is satisfied that: the Operator will be able to rectify the default in the additional time allowed; any extension of time will not materially impede or prevent the overall achievement of some or all of the benefits intended to be delivered by the Scheme or the Operator has provided Nexus with a viable mitigation plan setting out how any adverse impacts will be properly ameliorated: and that the Operator will for the duration of any default duly compensate Nexus for the default through a commensurate reduction in charges under the relevant Quality Contract and/or the payment of a sum that reflects the proportionate value of the services that have not been delivered and/or the delivery of other services free of charge or at a reduced charge. NTB/NTB/334208/1/UKM/

17 ANNEXES TO THE SCHEME ANNEX 1: SERVICES INCLUDED Article 4 An indicative list of the services included in this Scheme as at the [Commencement Date] is set out below for information purposes only: [Note: The lists below are indicative based on the current network as at 3 November 2013 and will be updated to reflect the current network at the time of the making of the Scheme.] NTB/NTB/334208/1/UKM/

18 Part 1: Round 1 Services NTB/NTB/334208/1/UKM/

19 NTB/NTB/334208/1/UKM/

20 NTB/NTB/334208/1/UKM/

21 NTB/NTB/334208/1/UKM/

22 NTB/NTB/334208/1/UKM/

23 Part 2: Round 2 Services NTB/NTB/334208/1/UKM/

24 NTB/NTB/334208/1/UKM/

25 NTB/NTB/334208/1/UKM/

26 NTB/NTB/334208/1/UKM/

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29 ANNEX 2: TICKETING Article 9 Part 1: Fares 1. Ticketing structure 1.1 On and from the Commencement Date, the fares for each ticket type specified in paragraph 2 for the QCS Area shall be determined as set out in this paragraph 1 (Ticketing structure), and shall remain at such level until revised in accordance with the provisions of this Annex. 1.2 For each fare specified in paragraph 3, the fare chargeable on the Commencement Date shall be calculated as follows: 2. Nexus shall recalculate each fare level specified in paragraph 3 no later than two (2) months prior to the Commencement Date ("Initial Fares Adjustment Date") in accordance with the following methodology: 2.1 Nexus shall review and calculate the weighted average commercial fares charged by Operators in the QCS Area in the period immediately prior to the Initial Fares Adjustment Date ("Average Commercial Fares"), save that in calculating the Average Commercial Fare Nexus shall be entitled to: discount any unusually high or low fares charged by Operators, where in Nexus' reasonable opinion this would distort the overall calculation of Average Commercial Fares; adjust the Average Commercial Fares to reflect any fare changes made by Operators which, in Nexus' reasonable opinion have the object or effect of materially distorting the Average Commercial Fare compared to that which would have been calculated based on the weighted average commercial fares charged by Operators in the preceding 5 (five) years before the date of the Scheme. 2.2 Nexus shall recalculate each fare level specified in paragraph 3 such that the weighted average fare expected to be charged on services provided pursuant to Quality Contracts is at least 1% lower than the Average Commercial Fare and that: The fares in respect of adult season tickets ("Adult Season Ticket Fares") shall be such that: weekly tickets are 3.5 times the relevant adult all-day ticket which is a single-mode ticket ("Adult Multi- Trip Day Fare"); weekly tickets are 3.5 times the relevant weekly ticket fare calculated in accordance with paragraph ; annual tickets are 11 times the relevant 4-weekly ticket fare calculated in accordance with paragraph ; NTB/NTB/334208/1/UKM/

30 2.2.2 The cost of an all modes add-on as specified in paragraph 3.2 shall be proportionate to the fare levels specified for the equivalent Adult Multi-Trip Day Fares; The fares in respect of adult night bus tickets as specified in paragraph 3.3 shall be proportionate to the fare levels specified for the equivalent adult single-trip ticket which is a single-mode ticket ("Adult Single Fare"); The fares in respect of child single-trip tickets and child all-day tickets specified in paragraph 3.5 (part of the Child Concessionary Travel Scheme ), where the child is carrying a valid photocard, shall be set at the level charged on the day prior to the Initial Fares Adjustment Date. The fares in respect of such tickets where the child is not carrying a valid photocard shall be determined at Nexus' discretion, provided that such fares shall be no greater than 1.5 times the fare charged where a child is carrying a valid photocard; The fares in respect of a child weekly ticket (part of the Child Concessionary Travel Scheme )shall be no greater than seven (7) times the fare for a child all-day ticket; The fares in respect of a child 4-weekly ticket (part of the Child Concessionary Travel Scheme )shall be no greater than four (4) times the fare for a child weekly ticket; The fares for year olds (the Scheme ) specified in paragraph 3.4 shall be set at the level of the equivalent child ticket in accordance with paragraph and above; and The fares for students specified in paragraph 3.6 shall be set at a level below the equivalent adult weekly or 4-weekly fare for a single-mode ticket and at a level no greater than 3.25 times the 4- weekly fare for the term ticket. 2.3 Nexus shall be entitled to adjust any of the fares specified pursuant to paragraphs to Error! Reference source not found. either up or down, provided that: any increase in a single trip ticket or all-day ticket is capped to a fare which is the next multiple of ten (10) pence; any increase in a week ticket is capped to a fare which is the next multiple of one (1) pound; any increase in any ticket other than a single trip, all-day ticket or week ticket shall be capped to a fare which is no more than 10% higher than the revised fare; any decrease to a fare shall be in consultation with the NECA, on the basis that Nexus reasonably considers that such reduction would remain affordable; and following all such adjustments the weighted average fare expected to be charged on services provided pursuant to Quality Contracts is at least 1% lower than the Average Commercial Fare. NTB/NTB/334208/1/UKM/

31 3. Fare levels The fare levels set out in this paragraph 3 shall be used as the basis for calculation of the fare levels on the Commencement Date, as set out in paragraph 1 above. 3.1 Adult Single-Trip, Single-Mode Tickets Single-Trip Tickets on Single-Mode Number of zones Adult Multi-Trip, Single-Mode Tickets Multi-trip Ticket on Single Mode Number of zones All modes add-on to Time period 1 or any ticket Day Week Week Annual Adult Single-Trip Tickets: Night Bus No discounts, price cap or multi-trip tickets will be valid for travel on night buses. Single trip on night buses Number of zones NTB/NTB/334208/1/UKM/

32 3.4 Fares for year olds (the Scheme ) The fares set out in this paragraph 3.4 (as revised in accordance with this Annex) shall apply to travel on any form of public transport under the NECA s control, including Quality Contract Services operating in Northumberland, Durham and Hartlepool. Time period (multi-modal, all zones) Week Week Fares for children under the age of 16 ( Child Concessionary Travel Scheme ) The fares set out in this paragraph 3.5 (as revised in accordance with this Annex) shall apply to travel on any form of public transport under the NECA s control, including Quality Contract Services operating in Northumberland, Durham and Hartlepool. Ticket type Under 16 with photocard (multi-modal, all zones) Under 16, no photocard (multi-modal, all zones) Single Day Week week Fares for students in full time education The fares set out in this paragraph 3.6 (as revised in accordance with this Annex) shall apply to passengers who apply in advance for a Smartcard (with a photo) and provide evidence to the NECA that they are in full-time education at an educational establishment which is recognised by the NECA. Number of zones Time period 1 or Week Week Term NTB/NTB/334208/1/UKM/

33 4. Revision of fares and ticket types 4.1 The fare structures and levels set out in this Annex (as amended from time to time in accordance with this Annex) may be amended annually on the first Sunday in April each year ("Annual Fares Adjustment Date") by the NECA in consultation with the Local Bus Board, provided that: any such increases shall be such that the weighted average increase of fares since the previous Annual Fares Adjustment Date is no greater than the increase in the retail prices index from October in the year prior to the last Annual Fares Adjustment Date to October following the last Annual Fares Adjustment Date the NECA shall calculate the weighted average increase of fares for the purposes of this paragraph 4.1 by reference to a basket of fares reflecting the tickets used within the Scheme Area over the previous year. 4.2 The references in this Annex to the retail prices index means the monthly United Kingdom index of retail prices (for all items) published by the Office of National Statistics. If that index is not published for any month those references shall be references to any substituted index or index figures published by that Office for that month, or in the absence of such an index, such other index as the NECA shall determine, acting reasonably, is appropriate. 4.3 Notwithstanding paragraph 4.1 of this Annex, the NECA may determine from time to time, at its discretion, that it will: amend the tickets or fares currently available in the QCS Area; and/or introduce additional categories of tickets or fares in the QCS Area. 4.4 Whenever the NECA proposes to revise the fares that apply in respect of any journey within the QCS Area pursuant to this paragraph 4, the NECA will publish in at least one local newspaper circulating in the QCS Area and on the Nexus website, a notice setting out details of the fare revisions proposed. 5. Other Ticketing matters 5.1 Price capping Nexus shall use reasonable endeavours to ensure that where a passenger uses a Smartcard to store or purchase their ticket, a cap shall be applied in respect of fares paid using such Smartcard, such that the total cost of any passenger s daily travel when using pay as you go credit on a Smartcard will not exceed the price of the relevant all-day ticket for the journeys undertaken. 5.2 Gold Card Plus Nexus shall use reasonable endeavours to ensure that at all times whilst it is required to reimburse Operators for providing concessionary travel on eligible journeys pursuant to the ENCTS that it shall also provide a Discretionary Concessionary Travel Scheme in respect of the Gold Card Plus or a similar Discretionary Concessionary Travel Scheme which provides materially the same benefits to eligible ENCTS pass holders, and provided that Nexus shall be entitled to require eligible ENCTS pass holders to pay an annual fee in respect of travel pursuant to such Discretionary Concessionary Travel Scheme, which may be increased in each year in accordance with paragraph 4 of this Annex. NTB/NTB/334208/1/UKM/

34 1. Transitional Arrangements Part 2: Transitional Arrangements Each Quality Contract shall require the Operator to accept the following tickets for travel on Quality Contract Services: 1.1 all Network One season tickets (weekly, 4-weekly and termly paper tickets); and 1.2 all weekly and four weekly tickets issued by Operators in respect of valid journeys within the QCS Area, in each case where such tickets were issued prior to the Commencement Date and remain valid for the proposed journey. NTB/NTB/334208/1/UKM/

35 ANNEX 3: FARE ZONES Article 9 Part 1 The fares zones for the purposes of Annex 2 shall be those specified on the maps in Part 2, and shall cover the bus stops specified in a table to be published electronically by Nexus, specifying the name, location and co-ordinates of each bus stop. Where any new bus stop is built within a fare zone, Nexus shall update such table accordingly. A ticket for travel in a single zone is a ticket valid for travel in any single zone specified in this Annex 3. A ticket for travel in a number of zones is valid for travel across that number of adjacent zones. Zones A, B and C cover all of Tyne and Wear (although some parts of zone C extend into Northumberland), and zones D and E cover services operating in Durham and Northumberland. The outer boundary of zone E will be the furthest geographic point to which Quality Contract Services will run and includes Hartlepool. Part 2 Figure 1: Zone A [Attached at the end of this document as Annex 3 Part 2 Figure 1 ] Figure 2: Zones A to E [Attached at the end of this document as Annex 3 Part 2 Figure 2 ] NTB/NTB/334208/1/UKM/