CROSS BOUNDARY BUS COLLABORATION AGREEMENT HEADS OF TERMS
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1 CROSS BOUNDARY BUS COLLABORATION AGREEMENT HEADS OF TERMS Between Tyne and Wear Integrated Transport Authority, Northumberland and Durham County Councils and Hartlepool Borough Council. 1. Introduction 1.1. To recognise that Tyne and Wear Integrated Transport Authority (ITA), intends to establish a Quality Contracts Scheme (QCS) covering its area. Under a QCS local bus services crossing the ITA boundary would only be permitted to operate within Tyne and Wear by means of being excluded from the Scheme; through an agreed contract procured on behalf of the ITA to a specification agreed with Northumberland and/or Durham County Council and/or Hartlepool Borough Council (referred hereafter to as the Councils); or by a specific clearance certificate being granted by the ITA This will affect bus services in Northumberland, Durham and one service Hartlepool as well as in Tyne and Wear. It will also potentially affect local bus companies whose operations in Northumberland, Durham and Hartlepool may suffer adverse consequences as a result of the award of quality contracts under a QCS. 2. Purpose of agreement To ensure: 2.1. The introduction of a QCS in Tyne and Wear does not result in worse services or other adverse effects for users of services in Northumberland, Durham and Hartlepool or increased financial outlay for Hartlepool Borough Council, Northumberland and Durham County Councils; 2.2. Where possible, the benefits of a Tyne and Wear QCS are extended to residents of and visitors to Northumberland, Durham and Hartlepool; and Appendix V Draft Cross Boundary Collaboration Agreement 1
2 2.3. A change management process is introduced to ensure that future changes to the QCS are fair and equitable for residents of the Councils as well as those in Tyne and Wear. 3. Scope of QCS 3.1 The QCS will regulate local bus services in the geographical areas of Gateshead, Newcastle, North Tyneside, South Tyneside and Sunderland ( Tyne and Wear ). Under the regulations the Traffic Commissioner will not accept registrations for local bus services operating in Tyne and Wear without first consulting the ITA. 3.2 The bus market will remain deregulated in Northumberland, Durham and Hartlepool, so there will be no such restriction on the registration of bus services wholly operating within or between those areas. 3.3 The majority of local bus services in Tyne and Wear will be provided by quality contracts let by Nexus on behalf of the ITA. Under a quality contract the ITA, with Nexus acting on its behalf, will be responsible for all aspects of service specification, including fares and ticketing, timetables, vehicle standards, and customer service standards. All revenue earned will accrue to the ITA, and the ITA will be responsible for payment to the contractors. 3.4 A small number of services operating in Tyne and Wear will be provided without contract, but by obtaining a Clearance Certificate from the ITA. For these services the service specification and revenue risk will be the responsibility of the operator, although the Clearance Certificate will impose certain conditions such as the acceptance of QCS tickets for travel within Tyne and Wear. 3.5 A large number of bus routes in Tyne and Wear also provide services to residents of and visitors to Northumberland and Durham and one bus route to Hartlepool. Some of these services will be procured under the quality contracts let by the ITA (although they may be exposed to competition outside the ITA area), and others will Appendix V Draft Cross Boundary Collaboration Agreement 2
3 be provided without contract but will be granted permission to operate within Tyne and Wear under the conditions of a Clearance Certificate. 4. Fares and Ticketing 4.1 A consistent system of fares and tickets will be applied to all bus services procured under the terms of the QCS throughout its duration, regardless of whether the customer is boarding inside Tyne and Wear or in an adjacent local authority area. 4.2 Fare zone boundaries affecting Northumberland, Durham and Hartlepool will be agreed jointly with the Councils. 4.3 Future changes to fare levels, fare products and zonal boundaries will subsequently be covered by an agreed change management process (see below), but the principle will be that changes will be applied equitably to all users throughout the fare zoning area. 4.4 All buses procured under the terms of the QCS will be equipped with smart ticket machines using the ITSO standard. Applicable smart ticket products using the NESTI infrastructure will be accepted. 5. Concessionary Travel 5.1 Passengers carrying ENCTS cards will be accepted for travel free of charge. 5.2 The ITA will be reimbursed for concessionary travel in accordance with the Councils existing CT reimbursement arrangements, applying the relevant adult fares in place for the relevant period. 5.3 A variety of local enhancements to the ENCTS scheme are currently applied by the Councils. The Councils will determine what enhancements are applicable on QCS services provided under the Scheme, but where enhancements do apply they will Appendix V Draft Cross Boundary Collaboration Agreement 3
4 subject to reimbursement arrangements being specified that will apply in accordance with the relevant legislation. 5.4 All ENCTS card holders will be eligible to purchase a Gold Card which will permit allday travel on any QCS bus service, the Tyne and Wear Metro and the Shields Ferry. No reimbursement will be sought from the Councils for these journeys. 6. QCS Network 6.1 A number of bus services covered by the QCS provide service to residents of NCC/DCC (and one to Hartlepool) as well as Tyne and Wear. It is intended to operate those services continuously to/from their origin/destination in the Councils, traversing between the regulated environment in TW and the deregulated environment that will remain in Northumberland, Durham and Hartlepool. The cost for the portion of the service operated in the Councils will be borne by the ITA and the revenue earned on that portion of service will accrue to the ITA, together with any additional financial expenditure which may result (unless the additional expenditure arises from a specific requirement of the Councils that goes beyond the scope of the service that is currently provided). 6.2 The initial QCS network to be provided will be established in consultation with the Councils with a principle aim of no services or links being lost in Northumberland, Durham or Hartlepool. 6.3 Any proposed future network changes will be covered by the change management process (see below). 7. Non QCS network 7.1 The Councils have highlighted a number of risks that may occur to non QCS services that may arise as a result of the introduction of a QCS. These principally relate to: Appendix V Draft Cross Boundary Collaboration Agreement 4
5 consequences for routes served by depots whose main business is removed through the introduction of a QCS the introduction of the QCS fare structure and frequencies that may have competitive effects on non QCS services that operate in parallel with QCS services for part of their route. bus operators being successful in bidding for work in Tyne and Wear, which may have a distortionary effect on their existing operations elsewhere in the local area 7.2 Immediately prior to the date of any decision in principle to proceed with a QCS in Tyne and Wear, a snapshot of the networks, frequencies and fares in the Councils will be taken. 7.3 Where non QCS routes are served by an operator who is directly affected by the introduction of the QCS: If the service operates as commercial (i.e. without a secured service contract in place) and the route is subsequently withdrawn, Nexus will pay the net cost of reinstating the service through a competitive process provided that it can be evidenced that the withdrawal was as a consequence of the introduction of the QCS. If the service operates as a secured service, and the contract is terminated by the operator, the ITA will pay to Northumberland, Durham or Hartlepool any increase in net cost resulting from the contract being re let provided that it can be evidenced that the withdrawal was as a consequence of the introduction of the QCS. In a situation where it can be evidenced that the implementation of a QCS is a significant contributory factor in an operator s decision to reduce commercial services, raise fares or increase tender prices, Nexus will contribute to costs of Appendix V Draft Cross Boundary Collaboration Agreement 5
6 restoring services to the state that would have otherwise been, to a degree that is consistent with the significance of the impact of the QCS. 7.4 Where non QCS services operate in parallel with QCS services for some or all of their route outside Tyne and Wear, and the non QCS service provides unique links outside Tyne and Wear, if it can be evidenced that the implementation of a QCS was a significant contributory factor in an operator s decision to reduce commercial services or raise fares on the non QCS service, Nexus will contribute to costs of restoring services to the state that would have otherwise been, to a degree that is consistent with the significance of the impact of the QCS. 7.5 Wherever, possible, new and existing cross boundary services will be granted Clearance Certificates by the ITA provided that they meet the relevant conditions set out in the QCS. In the event that these services conflict with the ITA s objectives for the QCS, every attempt will be made to negotiate amendments to the registration that preserves the value of the operator s registration to the service provided in the Councils. There will be no charge levied on operators of cross boundary services for clearance certificates. 8. Vehicle and customer service standards 8.1 A Customer Charter will be applied to all routes in the QCS network, setting out the service levels and standards that customers can expect. This will cover punctuality, reliability, and customer satisfaction. There will be no difference in the standards in different areas. All buses contracted under the QCS will be low floor, unless by specific exemption or because a specialist vehicle type has been specified. 8.2 The delivery of the customer charter for passengers in Northumberland, Durham and Hartlepool, including any non QCS services that the Councils deem appropriate to be included, will be the subject of an appropriate agreement that ensures that appropriate lines of accountability are established and without financial detriment to the Councils authorities as regards QCS services.. 9. Voluntary enhancements by the Councils Appendix V Draft Cross Boundary Collaboration Agreement 6
7 9.1 The Councils may have requirements for bus services that enhance that which is provided as standard under the QCS. This may include concessionary or other fare schemes, route extensions, timetable enhancements, or participation in marketing initiatives. 9.2 Nexus will engage with the Councils to provide such enhancements in a transparent and financially efficient manner. 10. Change process and governance of change 10.1 Adherence to the terms of this Agreement will be overseen by Cross Boundary Groups', one for each of the Councils, made up of elected Members from the relevant Council and the ITA and supported by officers from the relevant Council and Nexus. The purpose of each Cross Boundary Group is to ensure that any proposed changes to the Scheme, or any consequences arising from the introduction of the Scheme, adhere to the terms of this Collaboration Agreement, and that the development of the Scheme will support the achievement of the local transport policies of the Councils in addition to those of the ITA and its constituent Councils The ITA will establish an ITA Bus Committee with delegated powers to oversee and manage the QCS bus network. The Cross Boundary Groups will provide advice to the ITA Bus Committee regarding the development of services affecting Durham, Northumberland and Hartlepool within the context of this Agreement The ITA will be bound by this Agreement to take the reasonable requirements of the Cross Boundary Groups into account. Failure to do so may have financial consequences for the ITA as set out below Each year, Nexus will put forward a draft Bus Network Business Plan to the ITA Bus Committee, containing proposals for fares and services for the following financial year. The ITA Bus Committee will then formally consult with the Cross Boundary Groups regarding any aspect of the proposal that may affect NCC, DCC or HBC, before adopting a final business plan in the context of the ITA s main budget. Appendix V Draft Cross Boundary Collaboration Agreement 7
8 10.5 Wherever possible, reasonable adjustments will be made to the draft Plan in order to respond to the views of the Councils. Where it is not considered possible to make such adjustments the ITA will respond to the Councils in writing, and the matter will be referred to the ITA Chair and the relevant Council Leader(s) for guidance, before a final proposal is made A process will be put in place to manage unforeseen events that may occur outside the annual planning cycle but which require immediate intervention in order to continue delivering the QCS bus service within available resources, such as major road works, significant operator performance issues, and force majeure events such as national economic disruption and security issues. The Councils will be fully involved in such discussion and every attempt will be made to accommodate their views in resolving these issues Over the initial 12 month period of operation of QCS services in Northumberland, Durham and Hartlepool will be protected from any reductions or increases in fares, except by mutual consent. Appendix V Draft Cross Boundary Collaboration Agreement 8
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