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Portfolio Environment_ Sustainability and Transport Car Club Protocol

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Portfolio Environment_ Sustainability and Transport Car Club Protocol Powered By Docstoc
					                                                    Portfolio: Environment,
                                                Sustainability and Transport

24th July 2008

Car Club Protocol

Report by:            Director of Strategic Housing, Planning and
                      Transportation

Ward Implications:    All wards


      For Decision



1.     Summary

1.1    This report outlines proposals to introduce a Car Club into Newcastle. The
       protocols for the contract, timescales, and operations are included in this
       report.
2.     Recommendations
2.1    Members are recommended to agree to:
         • The introduction of a Car Club operator into the City of Newcastle.
         • The procurement of a suitable operator for a minimum contract period
           of seven years.
         • £10,000 capital expenditure to be taken from the Local Transport Plan
           08-09 allocation to implement the scheme.
         • The Car Club Protocol (Appendix A)

3.     Background
3.1    The basic idea of a Car Club is that members can have access to a car in
       their neighbourhood without having to own it. Members pay an annual fee to
       an operator who provides and maintains a number of vehicles. They then pay
       by the hour and mile for each trip that they undertake. The combined costs of
       membership and use are intended to be cheaper than personal car
       ownership.

3.2    Car Clubs decouple car use from ownership, by providing members with cars
       when they need them. They operate through having cars parked in reserved
       parking spaces close to homes and/or workplaces, and these can be used,
       and paid for on an hourly, daily or weekly basis. As Car Club members have
       to book and pay for a car for each trip, it encourages individuals to consider
       the most efficient form of transport to be used for each individual trip.

3.3    Other major conurbations in the country already operate commercially viable
       Car Clubs. In Newcastle this could be a key measure within the sustainable
      transport policy for the city.

3.4   A Car Club in Newcastle upon Tyne must be provided, marketed and
      operated on the basis that it will serve to reduce the demand for car
      ownership and not act as a means of reducing the demand for public
      transport use or other more sustainable forms of transport, namely walking
      and cycling.

4.    Policy Context

4.1   Regional Spatial Strategy: The promotion of travel plans and the provision
      of pricing for parking are seen as core demand management tools within the
      RSS. Such mechanisms fit comfortably with Car Clubs, as they ensure that
      vehicles are used better, and encourage alternatives to individuals owning
      their own car.
4.2   Tyne and Wear Local Transport Plan underlines that a major challenge for
      Tyne and Wear is the growth of car ownership at a significant level above the
      national average, which is likely to increase the onset of congestion across
      the region. Car Clubs are key to this, as they can combat the growth of car
      ownership by ensuring that individuals do not need to purchase their own car
      to make car journeys, but still have a car available for essential trips.
4.3   Congestion Reduction Plan suggests that a major barrier to the expeditious
      movement of traffic can often be vehicles parked alongside the road, and
      obstructing traffic flows. As Car Clubs seek to diminish the need for vehicles
      to be owned, and encourage a higher use of each vehicle, they can play a
      key role in reducing this form of congestion.
4.4   Sustainable Community Strategy: One stated policy within the LAA is to
      influence personal behaviour in line with sustainable environment principles
      via the city’s environmental awareness activity. Car Clubs are a key part of
      this, as they encourage behavioural change to more sustainable modes of
      transport through encouraging individuals to consider the true costs of each
      trip made. The LAA also promises to not only encourage individuals to make
      trips by modes other than the private car, but to actively encourage them to
      do so. This entails improvements to a range of alternatives to the private car,
      of which Car Clubs is one.
4.5   Residents Parking Strategy: Newcastle City Council is seeking to introduce
      Civil Parking Enforcement (CPE) within the Authority’s area inline with the
      Traffic Management Act 2004. This will mean that Newcastle City Council is
      responsible for enforcing on street parking controls instead of the police. CPE
      gives local authorities greater control over the reduction of illegal or
      inconsiderate parking. By using their own parking attendants, local authorities
      can tailor patrols to suit each area, varying them when necessary and
      responding to one off events where additional attendants may be needed.

4.6   City Centre Developer Contribution Model recognizes that significant
      levels of development are envisaged around the current core cover the next
      15 years and issues of connectivity and accessibility are likely to affect all
      developments. The developer contributions model is used to promote and
      enhance sustainable modes of travel and to manage parking demand in such
      a way that is reduces, over time, reliance on the private car as a mode of
      travel to the city centre. Contributions are used to ensure that wider impacts
      of city centre development can be managed to ensure that sustainable travel
      can be promoted.

5.    Best Practice Review

5.1   At present, there are 42 Car Clubs operating in 37 towns and cities across
      the UK. These Car Clubs currently serve 29,000 members with 1,200 cars.
      With new Car Clubs emerging weekly, accessibility to and the use of Car
      Clubs are set to continue rising.
5.2   The best practice ‘Car Club Report’, commissioned by Newcastle City
      Council externally, identified that each of the northern cities where a Car Club
      is in operation has gone along the single operator approach, whereby one
      operator has been provided with land owned by the council to operate a Car
      Club. This underlines the high level of risk that would be associated with
      piloting a multi-operator approach, where many of the benefits of economies
      of scale would be lost. Car Club operators have found that the benefits of
      exclusivity enable clarity when communicating with the user, and being able
      to focus on providing the best service rather than ‘competing’ with a rival. Car
      Clubs are themselves competing against other modes – particularly the
      privately owned car, and this offers a more constructive incentive than inter-
      operator rivalry.
5.3   The most successful schemes entail close liaison between the authority and
      the chosen operator in order to agree on requirements such as location. This
      is to ensure that a range of objectives are met both in terms of accessibility
      and viability. Generally, best practice has tended to be where initial schemes
      have been introduced in close proximity to city centres, where individuals are
      generally more receptive to such schemes. Standard practice is for the loss
      of parking income and requisite Traffic Regulation Orders tends to be borne
      by the local authority.

6     Corporate Implications:

6.1   Financial: Newcastle City Council will commit £10,000 capital expenditure for
      the purchase of Traffic Regulation Orders and the implementation of signing
      and linage arising as a result of the initial Car Club locations. As Car Clubs
      operate as a business, the risk will be assumed by the chosen operator.

      A pre qualification questionnaire will be utilised to determine the suitability of
      a range of operators interested in operating the scheme in Newcastle upon
      Tyne, this will be in addition to a quotation exercise which will be used to
      ascertain the level of charging proposed by the operator (incorporating both
      annual fee and pay as you go charge).

6.2   Any additional views of The City Treasurer: The City Treasurer has been
      consulted and has nothing further to add

6.3   Legal: The Head of Legal Services has been consulted on this report. The
      proposals in the report are considered to be compliant with the requirements
      of human rights legislation. A contractual agreement will be made between
      Newcastle City Council and the chosen Car Club operator. The length of
      service is proposed to be for an initial period of seven years and the proper
      procurement process will need to be followed.

6.4    Environmental and Sustainability: A key goal of Car Clubs is to encourage
       members to consider more closely the mode of transport used for each
       journey, through the cost that they pay being more accurately reflective of
       the true costs, rather than an initial outlay for the purchase of the vehicle. As
       a result, modal shift away from cars could take place for a number of
       journeys, especially when complemented by a range of other measures.
       Research in the UK and overseas has found significant changes in travel
       behaviour once the link between car use and car ownership is broken. Car
       Club members typically drive less and make more use of public transport,
       cycling and walking. Thus implementation of a Car Club within the Newcastle
       fits within the Council’s strategic objectives to promote and awareness of
       and commitment to and sustainability issues.

6.5   Risk: The implementation of a Car Club in the city is low risk given that the
      Council is not committing revenue to its operation. While there will be funding
      made available, this is in the form of initial kick staff capital expenditure
      amounting to £10,000 from the LTP allocation. The Car Club Operator will be
      responsible for:

          •   Keeping Newcastle City Council fully indemnified against all actions,
              costs, claims, damages, losses, expenses, charges and liabilities in
              respect of or resulting from any accident or injury to any person or
              property including fatal injury arising out of or in relation to the use
              and/or operation of the Car Club.

          •   Maintaining all appropriate insurances to cover its potential liabilities
              under the proposed contract agreement including but not necessarily
              restricted to Public Liability Insurance and Employers Liability
              Insurance with a minimum amount of cover in accordance with
              Newcastle City Council requirements.
          •   All other necessary financial, accounting and legal obligations
              associated with the operation of the Car Club.
      If the Car Club operator was to violate the terms of conditions of the contract
      it would be possible to appoint another operator to run the Car Club operation
      for the city.

6.6   Equalities: Implementation of a Car Club in the city will assist in congestion
      reduction which will benefit all residents in Newcastle, particularly those who
      suffer from the affects of high traffic volumes. The introduction of a Car Club in
      the Newcastle can help socially excluded people by enabling access to
      facilitates they can’t easily access by other modes.
      The following target groups are most likely to benefit from Car Clubs:

         •    Lower income households with no car, or struggling to run a car.

         •    Households where the only car is used for the daily commute, leaving
              others with no access to a car.

         •    Less mobile or less active people e.g. disabled people or older people.
6.7   Ward, Community Impact and Engagement Implications

      At this moment in time it is unclear which wards will be affected. This is
      because Car Club locations are to be agreed and confirmed when the chosen
      operator is appointed. When this information is known an appropriate
      consultation process will take place in the wards identified for the scheme.

6.8   Scrutiny
      To date no scrutiny committee has been consulted on this report.
      The appropriate Scrutiny Committee is: Environment.
6.9   Partnership
      This report recommends that a Car Club Steering Group be created with the
      chosen operator to oversee the development and performance of the Car
      Club. The Steering Group should include Member representation along with
      representation from relevant City Council departments including Transport
      Policy, Transportation Development, Technical Services and Parking and
      Highways.

      The City Council will require regular performance information from the
      operator which subject to scrutiny by the Car Club Steering Group on a
      quarterly basis will be required for the duration of the contract. In addition to
      this the group will oversee the ongoing development of Car Club vehicles in
      the city. This group will also investigate the possibility of whether the City
      Centre Developer Contribution Fund will be used to provide financial
      assistance in the establishment of Car Club vehicles in new developments.
7.    What Happens Next

7.1   The expected timetable for implementation if the report is approved is as
      follows:

      Pre Qualification Questionnaire and Quotation Exercise: July - Aug 2008
      Preferred operator selected:                         Aug - Sept 2008
      Identification and processing of on-street spaces:   Sep-Nov 2008
      Pre-launch development and promotion work:           Nov 2008
      Full-scale launch:                                   Jan 2009
8.    Further Information

8.1   Contact Officer:- Sally Herbert, Travel Plan Officer, 0191 211 6032
Appendix A: Establishing a Car Club Supporting Document: Car Club Protocol

Newcastle City Council Car Club Objectives

1.1   The Car Club operation within the city will need to fully complement the policy
      frameworks outlined above. More specifically, the following objectives
      underpin Newcastle City Council’s interest in exploring the potential to
      establish a Car Club:

a)    The need to contribute to developing an integrated transport strategy, by
      offering an alternative to private car ownership. This objective should clearly
      link with opportunities to maximise the use of public transport, walking and
      cycling by encouraging individuals to resort to Car Club use for those journeys
      which can only reasonably be made by car. We would therefore be looking for
      how an operator would approach this issue.

b)    The need to address traffic volumes, in particular contributing towards limiting
      growth in car journeys into the city centre during the morning peak. A Car
      Club which encourages commuters to travel to work by sustainable transport
      but then to have available a Car Club for necessary business journeys during
      the day should contribute to reducing congestion.

c)    The need to address rising parking demands resulting primarily from
      continued economic expansion and improved living stands within the city
      centre and surrounding areas, and a reduction in the availability of temporary
      surface car parks due to ongoing regeneration and development.

d)    The need to complement City Centre parking schemes and support the
      Council’s approach to parking.

e)    The potential to enhance investor/occupier confidence in the city centre by
      adding to the total transport/environmental offer. This objective contributes to
      raising the economic competitiveness of Newcastle compared with key
      competitor locations in the UK and overseas.

f)    To provide flexibility and enhance accessibility through affordable alternatives
      to car ownership.
2.1    Car Club Protocol

       The detailed terms and conditions of the proposed partnership agreement will
       be subject to negotiation with the selected operator, but the broad scope is
       outlined below for information

2.11   Procurement Procedure

       A pre-qualification questionnaire will be utilised to determine the suitability of a
       range of operators interested in operating the scheme in Newcastle upon
       Tyne, this will be in addition to a quotation exercise which will be used to
       ascertain the level of charging proposed by the operator (incorporating both
       annual fee and pay as you go charge).

2.12   Expenditure

        Newcastle City Council will commit capital expenditure for the purchase of
       Traffic Regulation Orders and the implementation of signing and linage arising
       as a result of the initial Car Club locations. As Car Clubs operate as a
       business, the remaining risk will be assumed by the chosen operator.

2.13   Operational Procedure

       The length of service is proposed to be for an initial period of seven years.
       The operator will provide a membership-based pay-as-you-go Car Club within
       Newcastle upon Tyne targeted at both residents and businesses.

2.14   Responsibilities of the Operator

       Newcastle City Council will require the following type of Car Club operation;
       including but not restricted to:

          •   The Operator will provide a membership based pay as you go Car Club
          •   Car Club vehicles will be made available for hire by members 24 hours
              a day, seven days a week. Car Club vehicles will be located either in
              designated on street parking bays and/or within off-street car parks or
              other suitable accessible locations
          •   The minimum period for hire for a Car Club vehicle should be at least
              one hour
          •   Car Club members should be able to make a hire booking through
              either the telephone or the internet, with an online booking service plus
              emergency telephone helpline available 24 hours a day

       The selected Car Club operator will be responsible for (please note this list is
       not exhaustive and is for indication only): -

          •   All vehicle and technology purchases, leasing, ownership, maintenance
              and insurance of the Car Club fleet.
          •   Establishing and running a membership and booking system which will
              include a procedure for verifying prospective Car Club members.

          •   Day to day operation and management of the Car Club.

          •   Providing locally-based staff to manage the Car Club vehicles and
              respond to any site or vehicle-specific incidents.

          •   Keeping Newcastle City Council fully indemnified against all actions,
              costs, claims, damages, losses, expenses, charges and liabilities in
              respect of or resulting from any accident or injury to any person or
              property including fatal injury arising out of or in relation to the use
              and/or operation of the Car Club.

          •   Maintaining all appropriate insurances to cover its potential liabilities
              under the proposed partnership agreement including but not
              necessarily restricted to Public Liability Insurance and Employers
              Liability Insurance with a minimum amount of cover in accordance with
              Newcastle City Council requirements.

          •   All other necessary financial, accounting and legal obligations
              associated with the operation of the Car Club.

          •   In conjunction with Newcastle City Council and other partners,
              marketing and promoting the Car Club to encourage maximum growth
              of membership base, and Car Club usage.

          •   Working with private developers to identify and deliver opportunities for
              the Car Club to address car parking needs associated with new and
              existing developments.

          •   Target major employers in the city centre, in order to maximize
              business travel membership/usage.

          •   Actively pursuing opportunities to integrate the Car Club with wider
              public transport networks, through linkages with Tyne and Wear
              Passenger Transport Executive (NEXUS), bus and train operators and
              walking / cycling facilities.

          •   Satisfying the national Carplus Accreditation criteria, and maintaining
              full accredited status.

2.15   Responsibilities of Newcastle City Council

       Newcastle City Council will be responsible for:-

          •   Working in partnership to promote the Car Club as an element of the
              Integrated Transport Strategy for Newcastle
          •   Providing, where feasible and subject to relevant City Council
              approvals and Traffic Regulation Orders, on-street parking bays
              designated for Car Club vehicles (the number of bays is to be
              determined jointly with the City Council, and reviewed regularly as part
              of on-going reviews of the Controlled Parking Zone in Newcastle city
              centre).

          •   Supporting the Car Club operator in negotiation for possible off-street
              Car Club parking bays

          •   Providing support in progressing opportunities with private developers,
              potential business users and other key target markets

          •   Establishing a Car Club Steering Group to oversee development and
              performance of the Car Club, with representation from relevant City
              Council departments including Transport Policy, Transportation
              Development and Parking and Highways.

2.16   Monitoring

       The City Council will agree with the selected operator a range of appropriate
       performance targets, likely to include

          •   Growth of membership numbers
          •   Growth of number of vehicles available for hire
          •   Modal shift achieved
          •   Reduction in car ownership amongst Car Club members
          •   Rate of member utilisation of Car Club cars
          •   Member satisfaction with the Car Club service
          •   Private developer schemes supported


       The City Council will require regular performance information from the
       operator, which subject to scrutiny by the Car Club Steering Group on a
       quarterly basis will be required for the duration of the contract.

2.17   Car Clubs and New Developments

       There are a number of potential benefits to developers arising from the
       introduction of car clubs into new developments. These mainly arise from
       Councils being prepared to accept lower levels of on-site parking or those
       developers as a result of the introduction of a Car Club as part of the
       development.

       In collaboration with the appointed operator new developers will be
       considered for the introduction of Car Club vehicles.
         3     Assessment Criteria and Weighting

3.1      The successful operator will be those which are the most economically
         advantageous and demonstrates strong awareness to the need to reflect
         social inclusion priorities.

Criteria        Evidence required                               Weighting (%)
(i) General        • Understanding of the strategic
approach and          transport context for Newcastle
implementation     • Potential for implementation model to
model                 meet the City Councils specific
                      objectives
                   • Range/variety of vehicle types and
                      parking locations in accordance with
                      the City Council’s preferred approach
                   • Robust operational
                      structures/systems
                   • Growth potential
(ii)               • Demonstration of positive contribution
Environmental         to environmental objectives, including
impact and            air quality, energy saving and
benefits              reduction of private car ownership
                      and/or associated journeys
                   • Fleet composition maximizes fuel
                      efficiency and reduce emissions
                   • Potential for alternative fuels/vehicles
                      types with the fleet
                   • Potential to reduce company car
                      ownership/use by major employers in
                      the city
(iii) Funding      • Demonstration of best value in terms
proposals             of amount of funding required in
                      relation to the level of Car Club profile
                      (number of cars/growth potential)
                      provided
                   • Potential to become self sustainable
                      in financial terms
(iv) Experience    • Successful delivery of similar
and track             schemes including annual growth
record                rates achieved, financial
                      sustainability, contribution to modal
                      shift etc
(v) Added          • Potential to offer additional
value                 complementary schemes to promote
                      public transport, walking and cycling
                      and a reduction in car use

Total:                                                         100%

				
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