Agenda item - BTN Bikeshare Reprocurement and In-house options

Report of the Executive Director, Economy, Environment & Culture

That the Committee: 

1)      Agrees in principle to delegating authority to the Executive Director to procure and award a new concession contract to operate a mixed fleet of pedal, pedalec (e-bikes) and e-scooters in the city from March 2022

2)      Following the preparation of a financial model, that would detail the extent of any potential Council funding required to subsidise the contract, a further report will be brought to this Committee seeking permission to procure and award a new concession contract with delegated authority based on the prepared financial model.

3)      Agrees that this report will provide further detail on the modelling and business case underpinning the in-house and alternative delivery vehicle (e.g CIC) options, including any updates in the availability of suitable premises space, or spare capacity to deliver aspects of the project ‘in-house,’ should this be necessary in future.

9.1          The Committee considered a report of the Executive Director, Economy, Environment & Culture that set Bikeshare scheme reprocurement options following approval to do so at the meeting of the Environment, Transport & Sustainability Committee Urgency Sub-Committee meeting of 24 March 2020.

9.2          Councillor Wares moved a joint Conservative Group and Green Group motion as shown in bold italics and strikethrough below:

That the Committee: 

2.1      Agrees in principle to delegating Grants delegated authority to the Executive Director to procure and award a new concession contract to operate a mixed fleet of pedal, pedalec (e-bikes) and e-scooters in the city from March 2022

2.2      Notes that if  Following the preparation of a financial model, that would detail the extent of any potential prior to the commencement of the procurement, Council funding is required to subsidise the contract, a further report will be brought to this Committee seeking permission to procure and award a new concession contract with delegated authority based on the prepared financial model.

2.3   Agrees that this report will provide further detail on the modelling and business case underpinning the in-house and alternative delivery vehicle (e.g. CIC) options, including any updates in the availability of suitable premises space, or spare capacity to deliver aspects of the project ‘in-house,’ should this be necessary in future.

9.3          Introducing the motion, Councillor Wares explained that whilst he was agreement with the majority of the proposals made within the report, it was absolutely necessary for the committee to see and approve a full business case before proceeding and that was precisely what the motion sought to do.

9.4          Councillor West formally seconded the motion stating that he agreed that it was necessary to see the full information for all options before agreeing a preferred option. Councillor West stated that each option required detailed modelling based on evidence, so that conclusions and recommendations could be properly drawn to inform Members decision. The report before the committee did not do that and in his view, rested heavily on frankly unsubstantiated opinion. Councillor West stated that he was very disappointed with the report recommendations. Substantial investment was in e-bikes to widen their reach across the Greater Brighton region so it could meet its potential as a form of public transport.

9.5          Councillor Brown agreed with statements made adding that it would be an error by the committee to agree to awarding a new contract based on information from a 2014 business case.

9.6          Councillor Wares stated that the issue was a complex one, mainly relating to the fact the LEP had assessed the 2014 business case as not fit for purpose and the council had entered into a poor contract that effectively realised a subsidised scheme. On that basis, Councillor Wares deemed it essential that the committee receive and agree a full business case for the re-procurement of the contract.

9.7          Councillor Wilkinson stated his full support for the Bikeshare scheme and the benefits to public health adding that there was a fine balance between making the scheme attractive and affordable. Councillor Wilkinson agreed that it was important for the committee to receive a full business case and on that basis, he would be supporting the motion. Councillor Wilkinson stated his support for the expansion of the Bikeshare scheme, particularly in deprived socio-economic areas where choices on car ownership and access to public transport was more limited.

9.8          Councillor Lloyd supported the comments made by Councillor Wilkinson adding that the increase roll-out of e-bikes was a necessity given the topography of Brighton & Hove.

9.9          The Chair then put the motion to the vote that passed.

9.10      The Chair then put the recommendations as amended to the vote that were agreed.

9.11      RESOLVED- That the Committee: 

1)      Agrees in principle to delegating authority to the Executive Director to procure and award a new concession contract to operate a mixed fleet of pedal, pedalec (e-bikes) and e-scooters in the city from March 2022

2)      Following the preparation of a financial model, that would detail the extent of any potential Council funding required to subsidise the contract, a further report will be brought to this Committee seeking permission to procure and award a new concession contract with delegated authority based on the prepared financial model.

3)      Agrees that this report will provide further detail on the modelling and business case underpinning the in-house and alternative delivery vehicle (e.g. CIC) options, including any updates in the availability of suitable premises space, or spare capacity to deliver aspects of the project ‘in-house,’ should this be necessary in future.