MEETING OF THE LIVERPOOL CITY REGION TRANSPORT COMMITTEE
To: The Members of the Liverpool City Region Transport Committee
Dear Member,
You are requested to attend a meeting of the Liverpool City Region Combined Authority to be held on Thursday, 16th January, 2020 at 2.00 pm in the Authority Chamber - No.1 Mann Island, Liverpool, L3 1BP.
In the event that any Member has any specific issues or questions about the Budget item on the agenda that they wish to understand before the meeting then they are urged by the Chair to please seek to make contact with the Treasurer, John Fogarty, as soon as possible so that their question can be answered. Democratic Services will be pleased to facilitate any such liaison.
If you have any queries regarding this meeting, please contact Shauna Phillips on telephone number (0151) 330 1086.
Yours faithfully
Chief Executive WEBCASTING NOTICE
This meeting will be filmed by the Combined Authority for live and/or subsequent broadcast on the Combined Authority’s website. The whole of the meeting will be filmed, except where there are confidential or exempt items.
If you do not wish to have your image captured or if you have any queries regarding the webcasting of the meeting please contact the Democratic Services Officer on the above number or email [email protected]
A Fair Processing Notice is available on the Combined Authority’s website at https://www.liverpoolcityregion-ca.gov.uk/wp-content/uploads/Fair-Processing- Notice-CA-Meeting-Video-Recording.pdf
(Established pursuant to section 103 of the Local Democracy, Economic Development and Construction Act 2009 as the Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral Combined Authority)
TRANSPORT COMMITTEE
AGENDA
1. APOLOGIES FOR ABSENCE
2. DECLARATIONS OF INTEREST
3. MINUTES OF THE LAST MEETING To consider the minutes of the last meeting held on 7 November 2019. (Pages 1 - 8)
4. MERSEY TUNNELS TOLLS 2020/21 To consider a report of Merseytravel concerning the Mersey Tunnel Tolls 2020/21. (Pages 9 - 18)
5. MERSEYTRAVEL BUDGET SETTING REPORT 2020/21 To consider a report of the Director of Corporate Services providing the Members of the Transport Committee with Merseytravel's revenue and capital budgets and proposals for prices for consideration. (Pages 19 - 36) 6. QUARTERLY BUS UPDATE To consider a report of Merseytravel to update Members of the Transport Committee on key issues relating to bus in the third quarter of 2019/20. (Pages 37 - 44)
7. LONG TERM RAIL STRATEGY UPDATE To consider a report of Merseytravel providing an update on the Long Term Rail Strategy. (Pages 45 - 54)
8. LIVERPOOL CITY REGION GREEN SUSTAINABLE TRANSPORT CORRIDORS PROJECT - UPDATE To consider a report of the Interim Director of Integrated Transport – Merseytravel providing members with an update on progress, 8 months after receiving funding. (Pages 55 - 62)
9. PUBLIC QUESTION TIME Members of the public will be given the opportunity to ask questions which have been submitted in accordance with Meetings Standing Orders No. 11.
A period of 30 minutes will be allocated for this item and copies of valid questions will be circulated at the meeting.
Members of the public who wish to submit questions are asked to contact Democratic Services by either:
Email: [email protected] Telephone: 0151 330 1086 In writing: Democratic Services, LCR Combined Authority, No.1 Mann Island, PO Box 1976, Liverpool, L69 3HN
A pro-forma will be supplied which, for this meeting must be returned by 5.00pm on Monday 13 January 2020. In this respect, return details are set out in the pro-forma.
10. PETITIONS AND STATEMENTS Members of the public will be given the opportunity to submit a single petition or statement in accordance with Meetings Standing Orders No. 11.
Members of the Public who wish to submit a single petition or statement are asked to contact Democratic Services by either:
Email: [email protected] Telephone: 0151 330 1086 In writing: Democratic Services, LCR Combined Authority, No.1 Mann Island, PO Box 1976, Liverpool, L69 3HN
All petitions and statements for this meeting should be submitted to Merseytravel, using the contact details above, by 5.00pm on Monday 13 January 2020.
11. ANY OTHER URGENT BUSINESS APPROVED BY THE CHAIR
This page is intentionally left blank Agenda Item 3
TRANSPORT COMMITTEE
7TH NOVEMBER 2019
Present: Councillors L Robinson, Chair, G Friel, Deputy Chair, P Cleary, J Dodd, S Foulkes, P Hayes, H Howard, A Jones, N Killen, A Lavelle, M O'Mara MBE, K McGlashan, P McKinley, L Mooney, N Nicholas, C Rowe, J Stockton, H Thompson, M Uddin, J Williams, J Wiseman and F Wynn.
______
The Chair, Councillor Robinson informed the Committee that Councillor Paul Pritchard had resigned and on behalf of the Committee wanted to thank him for his attendance and contribution to the Transport Committee. ______
47. APOLOGIES FOR ABSENCE
Apologies for absence were received from Councillor Ged Philbin.
48. DECLARATIONS OF INTEREST
There were no declarations of interest.
49. MINUTES OF THE LAST MEETING
RESOLVED that the minutes of the last meeting of the Transport Committee held on 10th October 2019, be approved as a correct record.
50. PRESENTATION - FIRST GROUP
The Committee received a presentation from Mr Cameron Jones, Mobilisation Stakeholder, West Coast Partnership, First Group in relation to the replacement West Coast franchise partnership between Trenitalia and First Group.
Mr Jones highlighted the following: -
Partnership between First Group and Trenitalia is a 70/30 split representing the operator status and high speed credentials respectively; West Coast Partnership will commence on 8th December 2019 to 2031 with a discretionary 3 year extension; The franchise will have three phases – o operate and improve West Coast services from December 2019; o shape future HS2 and West Coast services in partnership with our stakeholders; and o run the first HS2 services from 2026, alongside West Coast services for 5 years.
Page 1 To appoint a Partnership Directorate with 7 Regional Growth Managers reporting directly to the Chief Executive to run the programme of external engagement and to ensure a fully integrated business is in operation; The Directorate will also establish independently-chaired forums to deepen strategic collaboration with stakeholders and will include the: o Economic Development Forum o Integrated Transport Forum o Regional Customer Panels – to deal with complaints, pricing and ticketing Trains will be refurbished including the entire Pendolino fleet, with 25,000 standard class seats being replaced and the 20 Voyager trains being replaced with 23 electric trains including 13 bi-mode trains to improve capacity and reduce carbon emissions.
Fares To restore trust in fares for passengers the franchise will be working with Transport Focus to redesign the fares to understand what passengers are buying and improving flexible fares including off-peak travel; Automatic refunds within 15 minutes of delays directly to bank accounts within 48 hours; and An Italian customer service system called “Pico” will be introduced which operates as a back office technology platform to support passengers who have purchased a ticket either at a ticket station window, online, or using the mobile app to change tickets and simplify ticket purchasing through combined ticket purchasing etc.
Train Stations There will be an investment into the first class lounges at Rugby, Stockport and Preston stations and ticket offices in Preston, Glasgow and Rugby will be modernised; An increase and improvement to car parking spaces at 16 stations on the network will be introduced and improvements to bicycle spaces and storage will be looked at together with spaces for electric vehicles to be charged will also be introduced; Bus information screens will be installed at stations for passengers to inform about the next leg of journeys; and Funding will be made available to community rail partnerships for 19 that exist across the network for local station community projects.
Staff An Employee Director will be appointed to the business who will be nominated by the staff and will sit on the franchise Board and represent the employees; 50,000 training days will be provided for the 3,500 staff members including modules focusing on customer service, leadership and change management for the length of the franchise; and Zero hour contracts will be stopped and real living wages will be introduced for staff and extended to suppliers from year 1.
Accessibility An Accessibility and Inclusion Manager will be introduced who will oversee training for frontline staff particularly on how to work with passengers with both visible and invisible disabilities; Specific toilet changing facilities will be introduced for disabled staff if required; A “passenger assist app” which is currently being developed and trialled will be utilised and there will also be the introduction of the “digital chaperone” in the third year of the franchise; and Improvements to the franchise website will be made for the visually and hearing impaired passengers.
Page 2 Sustainability The aim is to become the most sustainable option for intercity travel; Water fountains will be installed at stations; Discounts will be given to passengers who bring their own coffee cups; There is a target to reduce CO2 emissions by 62%; There is another target for Non-traction energy to be reduced by 23%; These committed targets will be enforced by the Secretary of State; and The aim is to produce zero waste to landfills by the end of the franchise.
Liverpool Build a brand new relationship with the City Region; Memorandum of Understanding (MoU) is already in place following the bid process in 2018; Focussed improvements to the provision of services between Liverpool and London; By 2022 about 263 new services will be introduced each week once the new trains are introduced; Extra services from Liverpool to London will be introduced with 2 services per hour with a stop at South Parkway Station for one of the services; Improvements to the connectivity between Liverpool and the rest of the country once the consultation on the timetable is complete in 2021; Looking at restrictions with peak/off peak tickets to improve passenger journeys; MoU with LJLA to improve passenger journeys, baggage and travel information; and Letter of support with University of Liverpool setting out a “knowledge transfer partnership” to work with innovative teams using their skills and news ways of approaching traditional challenges.
Members raised the following: -
Councillor McGlashan enquired about the franchise commitments for smart ticketing solutions and if they would be prepared to work with the City Region.
Mr Jones stated that the smart ticketing programme already exists and would not be prepared to do anything to disrupt the existing programmes.
Councillor Friel enquired about the new rolling stock that the franchise would be getting and the accessibility specifications. He also enquired about the plans by the franchise to restore trust in the fares for passengers.
Mr Jones stated that an announcement would be made in the next week or so about the contract for the delivery and building of the new trains, but it is planned to be compliant with standards, but also to go beyond in every aspect. He also spoke about the fares and making it more affordable by no more than 70% on an advance single journey as well as making upgrades more affordable.
Councillor Uddin asked about the plans for young persons’ ticketing.
Mr Jones said that the franchise would honour all the existing schemes, but will look at the plans for future enhancements and provide information back to the Committee.
Councillor Cleary spoke about the combining of tickets referred to in the presentation relating to rail, bus and air travel and enquired about those people who didn’t want to fly and if there were any initiatives being planned for long distance journeys e.g. Liverpool to Paris. He also enquired about the investment of the bicycle storage at stations and on trains.
Page 3 Mr Jones informed the Committee that the franchise were working with the Tourist Authority UK to improve services across the UK and improve additional services e.g. to Llandudno. He also said that he would have to speak to the Marketing team to enquire about making journeys easier to the continent and report back, but it is focussed on UK travel at the moment. He also stated that he would be happy to look at the example of the Merseytravel secure cycling, but would need to see what the plans are for the franchise and provide feedback to the Committee.
Councillor Allan Jones enquired about the on board catering improvements. He also asked for clarity regarding the refund for late trains.
Mr Jones informed the Committee that discussions were underway with a high street retailer to enhance on board catering and that local products will be showcased on the networks together with the suppliers and SMEs and the on board cafes and at seat services will be kept. He further stated that it would not be a full refund but a % of the fare would be refunded.
Councillor Foulkes enquired about the Chester network and the plans for services for Chester.
Mr Jones informed the Committee that he would need to provide the details for services relating to Chester to the Committee at a later date. He spoke about the existing timetable with small changes being made, but nothing considerable would be done until the national timetable change in 2022 following the consultation in 2021, but there are guarantees that nothing would be done to the detriment of the existing services.
Councillor Stockton enquired about the journey times between Liverpool and London and if any consideration had gone into reducing the journey times to support the economy in the City Region. He also enquired about the Runcorn station and future plans for services and what the carbon reduction strategy plans were.
Mr Jones commented that the new trains would have 125mph capability which will be the beginning of reducing those times and carbon emissions, with faster acceleration and improved braking, but further details can be provided to the Committee. He also said that he would provide additional information relating to the Runcorn Station. He also informed the Committee that there were plans to rain water harvest and install solar plans, but once the Sustainability Plan was produced that contained a delivery schedule it would be shared with the Committee.
Councillor Wiseman enquired about the service disruptions and engineering works the diversionary routes to Liverpool are via Warrington, Earlestown and electrified Chatsmoss, best way to retain train crew competency is to have at least one service up and down the route would consideration be given to calling at St Helens Junction.
Mr Jones said that he would need to look at the detail and provide a response at a later date.
Councillor Thompson enquired about more jobs being made available in the local area with the increase in services.
Mr Jones confirmed that there would not be any loss of jobs, but there would be job creation through apprenticeships and other areas but would need to clarify about specifics and get back to the Committee.
Page 4 Councillor Rowe enquired about the number of staff involved in providing the West Coast services and if the car parking issues at Runcorn Station could be looked at together with the car parking charges to encourage passengers to use the car park and not the roads.
Mr Jones confirmed that the staff would be TUPE over with all their rights, which would be preserved. He also stated that an additional 900 car parking spaces would be created, but would need to clarify if there would be a review of the car parking charges.
Councillor Nicholas enquired about the two trains each hour from Liverpool to London, what can the City Region do to support these services to operate and would there be any services around the holiday period. She also asked about the impact of Brexit with an Italian train company being involved.
Mr Jones confirmed that there would be new trains with more services and better fares for passengers. He guaranteed the extra services to Liverpool from 2022, but regarding the engineering works, he spoke about the difficulty of taking services away when people needed it most. He confirmed that there would not be any problems or impact with Brexit even with the Italian company on board.
Councillor Howard spoke about the increase to two trains per hour between Liverpool and London, with a stop at Runcorn and Liverpool South Parkway and enquired about the infrastructure constraints regarding platforming and signalling problems with an 11-car Pendolino service and what the City Region could do to support the franchise.
Mr Jones confirmed the additional services calling at the South Parkway Station but was unable to confirm how the platform and signalling arrangements would be done and offered to provide the Committee with details at a later time.
Councillor Wynn enquired about the new trains and wheel chair accessibility for the new trains.
Mr Jones confirmed that the new trains would not have the type of accessibility like the new rolling stock coming to the City Region, but that staff would be on hand to assist and support passengers. He did confirm that the trains would be accessible and would have wheelchair access.
Councillor McKinley spoke about the City Region being committed to regeneration and adopting a community wealth building model and enquired if the franchise would be interested in working with the City Region to contribute to community wealth building.
Mr Jones confirmed that through the MoU the franchise is committed to set up a formal partnership and governance with shared objectives and would hope that a meeting could be held in early 2020 to put things in place.
The Chair, Councillor Robinson commented about the bus/rail integration and hoped that the commitments referred to in the presentation came to fruition. He also spoke about the difficulties with the bus division not signing up to the “Smart in the North” ticketing scheme.
The Chair also enquired about the upgrades to the Pendolino fleet and if it was being done at the Alstrom Plant in Widnes which would underpin a number of well-paid engineering jobs in the region and how the franchise would support the city region to achieve its aspirations of a full high speed type service rail for the Northern Powerhouse Rail Network for direct connections going forward.
Page 5 Mr Jones confirmed that the Pendolino fleet would be upgraded at the Widnes Plant. He also confirmed that the franchise would be happy to work with the city region to create a strategic partnership to deliver the best economic outcome for the region. He informed the Committee that there was a review underway to act collaboratively with heavy expectations from Government to deliver. The Chair, on behalf of the Committee commented that the City Region would be looking forward to working with the franchise and welcomed the increase in services between Liverpool and London. He also stated that the city region would be committed to working very closely to maximise services for Smart Ticketing at Runcorn, Liverpool South Parkway and the wider city region.
RESOLVED that the Transport Committee notes the contents of the presentation and thanked Mr Jones for his attendance and for answering the questions.
51. TRANSFORMING CITIES FUND UPDATE
The Committee considered a report from the Interim Director of Integrated Transport, Shane Fitzpatrick relating to the Transforming Cities Fund (TCF) update who highlighted the following: -
The Liverpool City Region Combined Authority (LCRCA) has secured £172.5 million in capital grant from the TCF for local transport investment over a 5-year period. The aim of the fund is to support programmes of interlinking interventions, which will transform sustainable transport connectivity in key commuter routes in major city regions. Three priority themes were agreed to set parameters for the funding:- o Theme 1: Improving and expanding the public transport network to meet new areas of demand; o Theme 2: Improving the appeal of public transport, and particularly bus, against private transport; and o Theme 3: Intervening for health and wellbeing. Shane Fitzpatrick has been appointed to lead on the delivery of the overall TCF programme and reports to the TCF Board; Funding has been brought forward for three schemes identified as follows: o Funding for the launch of a smart ticketing portal and new ticketing media as a successor to “Walrus”; o Support for a new, low carbon and low emission vessel(s) to replace the ageing Mersey Ferries; and o Match funding in respect of the priority European Regional Development Fund Sustainable Urban Development (SUD) programme of green travel routes for cyclists. 17 interventions have been identified with 8 related to Theme 1, Theme 2 has 4 interventions and Theme 3 has 5 schemes identified. Programme delivery and monitoring is continued to be developed and is challenging with a significant challenge to rail which makes up about two thirds of the programme expenditure.
Councillor Foulkes spoke about accessibility at stations and moving to 100% accessibility at platform levels despite it currently being at 62%. He enquired about how the city region could encourage the other half of the money to match the other fund to come forward from Government. He also spoke about Wirral Waters and being able to join schemes through the themes and transform it into other blocks of funding.
Page 6 Shane Fitzpatrick informed the Committee that in relation to the “Access for all” schemes it has a £15m budget that will improve 5 stations at £3m each which is a long-term programme. There is also a mid-tier programme which has been introduced for smaller scale improvements are being made year on year. In relation to Wirral Waters there are two corridors, Phase 1 and 2, but that investment is also linked to three other transport improvement schemes split into 3 phases for the wider connectivity. It is already made up from different blocks of work including public realm, walking and cycling etc.
Councillor Stockton commented about the timeframe for the disbursement of the funding up to 31 March 2023 and enquired about the details of the timeframe for development of the scheme.
Shane Fitzpatrick had informed the TCF Board that work was underway to establish the base programme and pull together the planned packages, cash flow and expenditure, but further updates would be provided as that programme work emerges.
Councillor Mooney commented that the Headbolt Lane, Kirkby was really welcomed by the residents and would be a “game-changer” for the area and thanked everyone involved for making it happen.
Shane Fitzpatrick commented that it is a challenging project and work was underway with some interventions including rolling stock and battery technology which may benefit the building of a mile of track within the business case going forward to which potentially could reduce the costs at Headbolt Lane.
Councillor Williams enquired about the accessibility to stations in Wirral South, and could criteria be provided relating to TCF.
Shane Fitzpatrick informed the Committee that more information would be provided relating to the guidance and criteria used for TCF. He also spoke about it was important to note that in relation to Access for All, there were in inputs from Network Rail, Merseytravel and the Train Operator companies in a joint contribution to achieve the programme.
The Chair commented that it should be noted that the City Region was investing more than £500m in the new trains and infrastructure and the challenge back to Government would be to find another £100m, then the whole network could be completely step-free in the City Region.
Councillor Cleary sought clarification on Wirral Waters relating to the significant planning approval starting in January 2020 and the Eureka project as well and how it would be transported in the future relating to the street car proposal.
Shane Fitzpatrick stated that the early stages of feasibility work was underway together with the work being done with the Eureka project to replace Spaceport. The Seacombe landing stage and bridges would need to be renewed and all parties were represented in an existing steering group. He also spoke about the connectivity and the discussions with Peel for better transport options to be identified in the medium and long term in regard to transport connectivity to rail infrastructure. This incorporated investment currently ongoing with regard to the new rolling stock alongside a short to medium term bus strategy for Wirral Waters which was previously developed and approved for development.
The Chair commented that the Wirral Water development would be huge for the City Region and how it would be linked to the rest of the city region would be important.
Page 7 Councillor McKinley enquired about the cycle network that runs through Sefton and the Health and Wellbeing agenda relating to clearing the bridle ways that could be used for the disabled.
Shane Fitzpatrick commented that he would need to look into it and would provide a response to the Committee.
RESOLVED that the Transport Committee notes the contents of the report and requests further information as appropriate.
52. PUBLIC QUESTION TIME
The Committee received no questions from the public.
53. PETITIONS AND STATEMENTS
The Committee received no petitions from the public.
54. ANY OTHER URGENT BUSINESS APPROVED BY THE CHAIR
National Award a) Councillor Gordon Friel informed the Committee that the Bus Team had won a National Award and thanked the Bus Team for their achievements.
Vote of Thanks b) The Chair on behalf of the Committee extended best wishes to Charles Yankiah (Democratic Services) as it was his last meeting and thanked him for his work and contributions to the Transport Committee.
Chair of the Transport Committee
(The meeting closed at 3.30 pm)
Page 8 Agenda Item 4
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Chair and Members of the Transport Committee
Meeting: 16 January 2020
Authority/Authorities Affected: All Areas
EXEMPT/CONFIDENTIAL ITEM: No
REPORT OF MERSEYTRAVEL
Mersey Tunnel Tolls 2020/21
1. PURPOSE OF REPORT
1.1 The Liverpool City Region Combined Authority ("the LCRCA") is responsible for determining the level of tolls ("the tolls") payable for use of the Mersey Tunnels ("the Tunnels").
1.2 This report is intended to assist the LCRCA by allowing the following to be explained and discussed by the Transport Committee and for a recommendation to be made to the LCRCA on the level of tolls. This report will:
(a) outline the legal procedure for revising the level of the tolls;
(b) summarise how the current level of tolls was arrived at; and
(c) make proposals for the level of tolls payable in 2020/21.
2. RECOMMENDATIONS
2.1 Balancing the different factors associated with setting the Mersey Tunnel tolls, the Transport Committee is recommended to:
(a) note the contents of this report;
(b) note the level of “authorised tolls” for the Mersey Tunnels as determined by the County of Merseyside Act 1980 (as amended by the Mersey Tunnels Act 2004), with details on calculation methods explained in section 3 of this report;
(c) recommend that the Liverpool City Region Combined Authority(LCRCA) implement a schedule of tolls contained in Table 1 below with effect from Wednesday 1 April 2020: -
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Vehicle Authorised 2020/21 2020/21 Fast 2020/21 Fast Class Toll Cash Toll Tag Toll – Tag Toll – 2020/21 LCR Non LCR (November Resident* Resident RPI) 1 £2.10 £1.80 £1.00 £1.80 2 £4.20 £3.60 £2.40 £2.40 3 £6.30 £5.40 £3.60 £3.60 4 £8.40 £7.20 £4.80 £4.80 *Liverpool City Region (LCR) resident defined as living within the electoral boundaries of Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral;
(d) recommend that the LCRCA continue to offer the previously agreed discounts set out in paragraphs 3.18 and 3.19 of this report for 2020/21; and
(e) recommend that the LCRCA allocate up to £500k as per paragraph 3.20 and to instruct officers to explore the opportunities of implementing toll discounts as a trial with the specific aim to encourage cross river public transport use, with the final approval of any specific trial discount be delegated to the Director General, Merseytravel in consultation with the LCRCA Treasurer and the Monitoring Officer.
3. BACKGROUND
3.1 The Kingsway (Wallasey) and Queensway (Birkenhead) tunnels are an essential part of the Liverpool City Region’s strategic highway network with over 27 million vehicles travelling through them each year.
3.2 The tunnels were built as a joint venture by the local authorities and, as such, their upkeep and maintenance remains outside of the national highway network and so is not funded through road tax or general taxation.
3.3 The County of Merseyside Act 1980 ("the 1980 Act"), as amended by the Mersey Tunnels Act 2004 ("the 2004 Act"), sets out the procedure for revising the tolls. Under Section 91(7) of the 1980 Act, the LCRCA must make an Order in February of each year ("a Section 91 Order") fixing the amount of tolls payable by each class of vehicle from the following April. There are four prescribed classes of vehicles, each with subcategories, as follows:
Class Subcategories 1. (a) Motor cycle with side car and 3 wheeled vehicle. (b) Motor car and goods vehicle up to 3.5 tonnes gross weight. (c) Passenger vehicle other than a motor car with seating capacity for under 9 persons. 2. (a) Motor car and goods vehicle up to 3.5 tonnes
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gross weight, with trailer. (b) Goods vehicle over 3.5 tonnes gross weight, with two axles. (c) Passenger vehicle with seating capacity for 9 or more persons, with two axles. 3. (a) Goods vehicle over 3.5 tonnes gross weight, with three axles. (b) Passenger vehicle with seating capacity for 9 or more persons, with three axles. 4. Goods vehicle over 3.5 tonnes gross weight, with 4 or more axles.
3.4 The overriding presumption in the Act (as amended) is that tolls rise in line with inflation, so preserving their value in real terms. The increase in the tolls authorised by the Act (the "authorised tolls") is calculated by:
(a) taking the "base" toll amounts set out in Section 91(6) of the Act for each class;
(b) increasing them by the same percentage increase as the rise in the Retail Prices Index ("RPI") from November 1999 ("the base month") to the November immediately preceding the making of the Section 91 Order; and then
(c) rounding the new value up or down to the nearest ten pence.
3.5 Section 92C of the 1980 Act also gives the LCRCA discretion to reduce the amount of actual tolls payable by any particular class of traffic to less than the authorised toll where it is deemed necessary or appropriate to do so having regard to matters of an economic or social nature within the City Region.
3.6 When making decisions on the amount of tolls to be levied, it is very important that the LCRCA must consider the purpose of the legislation with respect to the level of toll. In particular:
(a) the relative costs of using the Mersey Tunnels must keep pace with other transport alternatives;
(b) it ensures that sufficient funds are available to cover the costs of operating and maintaining the Mersey Tunnels, including the repayment of the historic debt relating to the construction and operation of the Mersey Tunnels
3.7 Following the discharge of these financial responsibilities, the Tunnels Act allows the City Region to generate a surplus of income over immediate expenditure. The purpose of this is to provide sufficient resources for long term asset management of the tunnels, including capital financing requirements related to major schemes to ensure business continuity and safe operation.
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3.8 In addition, the Tunnels Act allows the City Region to benefit from tunnel revenue by making any surpluses not identified for the tunnels themselves to be made available to finance other transport infrastructure priorities across the region.
Authorised Tolls – 2020/21
3.9 In determining a schedule for tolls in any given year, the legislation is clear that the starting point must be the authorised toll. The level of the authorised toll is calculated each December based on the retail price index for the previous November.
3.10 The RPI in November 2019 dictates the following levels of “authorised tolls” for the Mersey Tunnels from 1 April 2020. For the benefit of Members, the table below shows the difference from the previous year also:
Vehicle Class Authorised Toll 2019/20 Authorised Toll 2020/21 1 £2.00 £2.10 2 £4.10 £4.20 3 £6.10 £6.30 4 £8.20 £8.40
3.11 The following table shows the tolls payable over the past six years and compares the amount of toll that could have been levied (i.e. the “authorised toll”, being that reflecting the rise in inflation) against the “actual” tolls, as well as the additional discount for Fast Tag users:
Class Toll Apr Apr Apr Apr Apr Apr ‘19 ‘14 ‘15 ‘16 ‘17 ‘18 1 Authorised £1.80 £1.90 £1.90 £1.90 £2.00 £2.00 Actual Cash £1.70 £1.70 £1.70 £1.70 £1.80 £1.80 Fast Tag £1.40 £1.40 £1.40 £1.20 £1.20 £1.80/£1.00 2 Authorised £3.50 £3.70 £3.70 £3.80 £4.00 £4.10 Actual Cash £3.40 £3.40 £3.40 £3.40 £3.60 £3.60 Fast Tag £2.80 £2.80 £2.80 £2.40 £2.40 £2.40 3 Authorised £5.30 £5.60 £5.60 £5.70 £6.00 £6.10 Actual Cash £5.10 £5.10 £5.10 £5.10 £5.40 £5.40 Fast Tag £4.20 £4.20 £4.20 £3.60 £3.60 £3.60 4 Authorised £7.10 £7.40 £7.50 £7.60 £7.90 £8.20 Actual Cash £6.80 £6.80 £6.80 £6.80 £7.20 £7.20 Fast Tag £5.60 £5.60 £5.60 £4.80 £4.80 £4.80
3.12 The table shows that the level of the cash toll has fallen behind the authorised toll over a number of years and the discount aimed at Fast Tag, used in the main by local users, has significantly increased. This is further demonstrated this year when inflation levels have increased, triggering a further increase in the level of authorised toll.
Local Economic Factors
3.13 In determining toll levels for 2020/21, Members should consider local economic indicators and in particular, the relative cost of a tolled river crossing in relation to
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other river crossing options and the need for these to be kept broadly consistent over time.
3.14 The table below is a range of comparative costs for rail bus and ferry commuter fares, as well as tunnel tolls since 2012:
Year Rail Bus Ferry Tunnel Discounted Commuter Toll Fast Tag 2012/13 £2.63 £2.27 £2.10 £1.50 £1.30 2013/14 £2.72 £2.35 £2.20 £1.60 £.130 2014/15 £2.78 £2.30 £2.30 £1.70 £1.40 2015/16 £2.84 £2.24 £2.50 £1.70 £1.40 2016/17 £2.89 £2.22 £2.60 £1.70 £1.40 2017/18 £2.96 £2.26 £2.70 £1.70 £1.20 2018/19 £3.07 £2.28 £2.80 £1.80 £1.20 2019/20 £2.80 £1.80 £1.00 Total % 16.7% 0.5% 33% 20% -23% increase
3.12 It should be noted that the bus and rail fares quoted above are based on average, not actual fares. The rail and bus fare data for 2019/20 is only available at financial year end.
3.13 It should also be noted that the Tunnel Toll level detailed is the full actual class 1 cash toll, not the discounted Fast Tag toll.
3.14 The fares quoted for Ferry, Bus and Rail are charged per person in all cases. The Tunnel toll charge is the cost per vehicle, regardless of the number of occupants. The average vehicle occupancy using the Mersey Tunnels, based on survey data, is 1.51 persons per vehicle.
3.15 Finally, it should be noted that the cost of Tunnel tolls are just one element of costs associated with use of a vehicle. Other costs such as fuel, insurance and car parking also influence a person’s choice to travel via car and are rising in line with or above inflation.
Current Tunnel Usage Data
3.16 A key indicator for Members to consider when determining toll levels is the existing usage data for the Mersey Tunnels. Attached as Appendix A is a line graph showing total toll paying vehicles through the Tunnels since January 2000. This data tracks actual usage and average trends, taking out specific factors such as large events and other seasonal impacts. This data helps to demonstrate that average usage of the Mersey Tunnels has started to reduce over the last 12-month period.
3.17 Another key factor for members to consider is the percentage of customers who use either cash or Fast Tag as payment methods through the Tunnel. The table below sets out the percentage of Cash and Fast Tag customers across all classes as at November 2019. Following the toll changes made in April 2019, introducing the
Page 13
Liverpool City Region discounted Fast Tag toll, the table shows more than 50% of all users pay the discounted rate of £1.00 per journey: -
Cash Bank Card LCRCA Standard Fast Discount Tag Tag 26.5% 12.5% 50.75% 8.6%
** Details above are based on week commencing 9 December 2019
Additional Discounts
3.18 As part of the on-going Tunnel tolls review process, a number of discounts are offered as part of the Tunnel tolls setting process for 2019/20. These are: -
all emergency service liveried vehicles to be allowed free travel through the Mersey Tunnels; travel through the Mersey Tunnels between 10pm on 24th December and 6.00am on 26th December each year be allowed free in recognition that public transport services are not available during these times; a reduced Fast Tag charge for Fast Tag account holders who are resident within the Liverpool City Region. This discount will be available for class 1 vehicles and applicable to just private Fast Tag accounts, not business account Tag holders; and . the existing Tunnels disabled concessionary travel scheme.
3.19 It is proposed that these discounts/ concessions remain in place during 2020/21.
3.20 It is also proposed that officers explore the opportunities of offering further toll discounts as a trial with the specific aim of encouraging cross river public transport use, with final approval of any specific discounts for 2020/21 be delegated to the Director General, Merseytravel, in consultation with the LCRCA Treasurer and Monitoring Officer.
4. RESOURCE IMPLICATIONS
4.1 Financial
4.1.1 The measures outlined above have been accommodated in the budget setting process for 2020/21 and will see income from toll revenue for 2020/21, based on an expected same level of usage during 2020/21 as the previous financial year. It must be stressed that this figure will vary dependent upon the level of usage. The additional discounts summarised in section 3.20 have been considered in the revenue budget setting process.
4.2 Human Resources
There are no specific HR related issues associated with this report.
4.3 Physical Assets
There are no specific Asset related issues associated with this report.
Page 14
4.4 Information Technology
Any change to the toll levels will require modification of the electronic toll system. As there are no changes proposed for 2020/21, there are no IT implications associated with this report.
5. RISKS AND MITIGATION
The risks associated with this report have been considered and mitigated through effective budget planning.
6. EQUALITY AND DIVERSITY IMPLICATIONS
An Equality Impact Assessment has been completed in respect of this recommendation and there are no impacts as result of this decision to retain toll levels at their existing rates.
7. COMMUNICATION ISSUES
The detailed proposals within this report will be accompanied by stakeholder and media communications activity to ensure key points are summarised.
8. CONCLUSION
In considering a suitable recommendation for the LCRCA, Members must balance a range of relevant information associated with the usage and pricing of the Mersey Tunnels, along with the details of the 2004 Act. This report sets out the details around each of these issues and recommends to Members the most appropriate toll levels for 2020/21, in effect remaining unchanged for the next financial year.
Frank Rogers – Director General Merseytravel
Contact Officer(s):
Gary Evans, Assistant Director of Customer Delivery, Merseytravel, 0151 330 4502 Joanna Sawyer, Corporate Communications Manager 0151 330 1129
Appendices:
Appendix 1 – Mersey Tunnels Historic Usage
Background Documents:
None
Page 15 This page is intentionally left blank Appendix 1
Mersey Tunnels Monthly Traffic Trends. January 2000 to October 2019 Total Toll Paying Vehicles
2400
2300
Thousands 2200
2100 Page 17 Page
2000
Monthly Totals Monthly Total Moving 1900 Average
1800 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
This page is intentionally left blank Agenda Item 5
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Chair and Members of the Transport Committee
Meeting: 16 January 2020
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
REPORT OF THE DIRECTOR OF CORPORATE SERVICES
MERSEYTRAVEL BUDGET SETTING REPORT 2020/21
1. PURPOSE OF REPORT
1.1 Members will be aware the Liverpool City Region Combined Authority (LCRCA) has a statutory duty to agree a Levy for 2020/21 before 14 February 2020. To assist the LCRCA in its deliberations, the Transport Committee will consider Merseytravel’s financial situation and recommend budget options.
1.2 This report details the draft revenue budget and capital programme for Merseytravel for 2020/21.
1.3 The budget report also provides details of the price/ fare increases proposed for 2020/21 to which approval is sought.
1.4 To allow Members to determines the revenue grants payable to Merseytravel in respect of general operations and Mersey Tunnels for 2020/21 and to recommend these to the LCRCA.
2. RECOMMENDATIONS
2.1 It is recommended that the Transport Committee:
(a) request LCRCA to approve 2020/21 operating grants for both public transport and Mersey Tunnels operating activities as detailed in section 4 of this report; (b) consider and approve the fare/ price increases included within this report and, subject to approval, seek that the financial implications of these fare increases are included within the draft budget for 2020/21; and (c) request LCRCA to approve the capital programme as detailed in section 4.
Page 19 3. BACKGROUND
3.1 The Merseytravel Committee approved the budget for 2019/20 at its meeting on 31 January 2019. This budget was subsequently approved by the LCRCA at its meeting on 1 February 2019 and the Merseytravel levy was set at £95.4m. The Merseytravel operating grant was agreed at £93.9m and the Mersey Tunnels operating grant at £23.7m. The approved budget for 2019/20 has been used as the starting point from which to develop the 2020/21 estimates. No allowance has been made for growth within the budget.
3.2 In accordance with the medium term financial strategy approved by Merseytravel at its meeting on 28 February 2018, increases to the base budget have been limited to contractual inflation, the impact of pay award and the reduction in Special Rail Grant from Government. .
3.3 Whilst Merseytravel is funded predominantly through grant there are a number of areas in which services have the ability to generate income. As part of the budget setting process, services with the ability to generate fees and charges review the levels at which these should be set for the forthcoming year.
4. MERSEYTRAVEL REVENUE BUDGETS 2020/21
MERSEY TUNNELS
4.1 Whilst the Mersey Tunnels are assets of the Combined Authority, day to day operation of the tunnels has been formally delegated to Merseytravel. Gross income from the tunnels for 2020/21 is forecast to be £40m, subject to the LCRCA approving the recommendation made by the Transport Committee on 26 January 2020 in respect of the schedule of tolls applicable in 2020/21.
4.2 From this revenue, an operating grant will be made to Merseytravel to fund the day to day operation of the tunnels alongside necessary capital investment. The estimated grant for the operation of the Mersey Tunnels for 2020/21 is £23.88m.
4.3 As the Tunnels are the assets of the LCRCA, any income generated over that required to meet the operational costs of the Tunnels is passed back to the LCRCA. Tunnels revenues are also used by the LCRCA to fund its other transport priorities, such as the Mersey Ferries in accordance with the County of Merseyside Act 1980 (the 1980 Act) as amended by the Mersey Tunnels Act 2004.
4.4 Although Merseytravel has delegated authority for the day to day operation of the Tunnels, it is not a Merseytravel service and consequently responsibility for determining the level of tolls payable for the use of Mersey Tunnels rests with LCRCA. Consequently this report does not cover the setting of tolls for 2020/21 as this is subject to a separate report to the LCRCA.
MERSEYTRAVEL TRANSPORT ACTIVITIES
4.5 The table below details the proposed revenue budget for Merseytravel for 2020/21. A detailed breakdown of the revenue budget is included at Appendix A.
Page 20 Table 1 Merseytravel Summary Budget 2020/21
Forward Estimate 2020/21 £'000 Corporate Management 703 Transport Services 122,673 Total Expenditure 123,376
Funded by Merseytravel Operating Grant (94,114) Mersey Tunnels Operating Grant (23,883) Rolling Stock Project Costs Grant from the LCRCA (4,545) Use of Reserves –Merseytravel (834) Total Income (123,376)
Net Requirement 0
4.6 The proposed Transport levy for 2020/21 is £97.4m, an increase of 2.1% when compared to 2019/20. To reflect some of the financial challenges faced by Merseytravel, primarily arising from pay and contract inflation and reductions in Special Rail Grant, it is proposed that the grant to Merseytravel to support service provision for 2020/21 is £94.1m. A more detailed breakdown of the revenue budget is included at Appendix 1.
4.7 To reflect the increased demands and cost pressures placed on Merseytravel arising from the requirements to deliver on Combined Authority and Mayoral priorities, an additional £1.4m has been allocated to Merseytravel from the Combined Authority to support delivery. These costs are recharged from the services impacted to the Combined Authority.
4.8 To support the project costs associated with the delivery of the replacement Rolling Stock, a grant of £4.54m has been made by the Combined Authority to Merseytravel. Both organisations had earmarked reserves to support the costs associated with the project and, having extinguished those held by Merseytravel, the funding to support the project is now flowing down from the Combined Authority.
4.9 The Tunnels Operating grants for 2020/21 is £23.88m, which is largely static when compared with the budgeted grant for 2019/20, having been adjusted solely for the impact of pay and where appropriate, contract inflation. In keeping with the treatment adopted in 2019/20 the debt servicing element of Tunnels expenditure are budgeted and accounted for within the Combined Authority budget.
4.9 The table below details the distribution of the Levy over the constituent districts. Note that any changes in distribution between 2019/20 and 2020/21 are solely as a result of population changes. Note also that arrangements in respect of Halton recognise that Halton is responsible for delivering transport services within its own boundaries and therefore sits outside of the main transport levy mechanism.
Page 21 Table 2 Distribution of Merseytravel Levy
2019/20 2020/21 £’000 £’000 Knowlsey 10,006 10,240 Liverpool 33,095 33,869 Sefton 18,490 18,851 St Helens 12,073 12,321 Wirral 21,736 22,123 Total 95,400 97,404
4.10 The proposed increase in levy of 2.1% represents the first increase in the Levy since 2013/14. Between 2013/14 and 2017/18, the Merseytravel Levy reduced by £31.6m, an overall reduction that exceeded the corresponding reduction in Revenue Support Grant over the same period. In real terms the Levy has remained flat since. Reducing the Merseytravel Transport Levy has had significant benefits to constituent districts, allowing a greater share of scarce resources to be made available to fund other services. The reduction is the equivalent of £100 per Band D Council Tax on average across the constituent districts.
4.11 The reduction in Levy has been managed by Merseytravel through a combination of efficiencies, alternative funding options and use of reserves, however non earmarked reserves have now reached a position whereby it is not prudent to seek recourse to these to fund the ongoing revenue budget of the organisation.
4.12 As a consequence of this position and in light of increasing cost pressures, the decision has been taken that the Levy can no longer be held at the level it was in 2017/18 and an increase of 2.1% is being recommended to the Combined Authority for approval at its budget setting meeting on 26 January 2020.
4.13 The increase in Levy and subsequent grant to Merseytravel means that with the exception of the application of specific reserves to mitigate the reduction in SRG, Mersyetravel is able to set a balanced budget without recourse to general application of reserves.
4.14 Whilst the budget position for the they year is more positive than it has been in previous years, this is due to the application of additional resources (as detailed above) and a reduction in pension costs arising from negotiations with the pension fund and actuary to mitigate the implications of the triennial valuation on the budget position. It is likely that over the medium term there will continue to be upward cost pressures on the budget and an element of uncertainty around future pensions costs. In light of the above, Merseytravel’s financial strategy will continue to be to reduce its costs of operation while protecting front line services wherever possible.
5.0 MERSEYTRAVEL CAPITAL PROGRAMME
5.1. The revised 2018/19 and draft 2020/21 capital programme are summarised below. The total revised capital programme for 2018/19 is £171.18m and for 2020/21 is £129.30m including tunnels. A detailed breakdown of the capital programme is included at Appendix B.
Page 22 Table 3 Merseytravel Summary Capital Programme
Service Area 2019/2020 2020/2021 £’000 £’000
Bus 3,079 1,718 Rail 7,421 16,512 Rolling Stock 99,355 124,434 Ferries 863 8,500 Tunnels 8,869 7,965 Hubs 200 - IT 558 1,220 Smart Ticketing 1,071 1,140 Corporate Strategy/Policy 4,654 200 Corporate Services 151 70 Total 126,221 161,759
5.1.2 Direct grant funding for the Merseytravel capital programme has reduced significantly over a number of years as substantially all capital funding flows through the Combined Authority. Notwithstanding this Merseytravel has a significant capital programme for the next twelve months arising from the rolling stock replacement project and commissions from the Caombined Authority for Mersyetravel to develop projects in support of the Transforming Citied funding.
6. FEES AND CHARGES
MERSEY FERRIES
6.1 The 2019/20 allowed budget for Mersey Ferries (excluding The Beatles Story) showed a deficit of £0.25m excluding recharges. As Mersey Ferries is a company limited by guarantee, this means that a grant is required from Merseytravel to allow the company to break even. This grant is met through the Merseytravel operational grant, which in turn is funded by the Levy.
6.2 Mersey Ferries prices were referred to in the Mersey Ferries Long Term Strategy, endorsed by Merseytravel Committee in January 2016, indicating that prices should increase annually by RPI plus 1%. However in setting prices for what is primarily a leisure attraction, it does not present a clear pricing arrangement unless increased in multiples of 50p or more. For 2020/21 the RPI plus 1% increase does not trigger an increase so it is proposed that prices are held at the level approved in 2019/20.
6.3 In the commuter market tickets, prices are proposed to be increased from the 2019/20 level. Commuter child fares are 50% of the adult fare.
6.4 A full schedule of Mersey Ferries fares are attached at Appendix C. These changes result in additional income of £20k for 2020/21.
SUPPORTED BUS SERVICES FARES
6.5 Currently Merseytravel operates its own fares policy on the supported bus service network. The adult single cash fare is £2.10 whereas the average commercial fare Page 23 is circa £2.34. Similarly Merseytravel charges £1.00 for a single child fare (age 5- 18) whereas commercial fares are usually half of the adult price.
6.6 Merseytravel has consistently expressed a desire to maintain fares at an affordable level for passengers. At the same time commercial operators have applied higher than inflationary increases on their services. This has led to the current differential between commercial and supported bus fares. To address this fares have been subject to annual increase over the last couple of years.
6.7 For 2020/21 it is proposed to freeze fares at their 2019/20 level. This approach is felt appropriate for the year as it aligns with the organisation’s vision for Bus which reflects the importance of simple and affordable bus fares.
BUS STATION DEPARTURE CHARGES
6.8 Bus station departure charges relate to commercial bus operators’ use of Merseytravel bus station facilities. The current bus station agreements allow for charges to be increased by a maximum of RPI plus 2%. This is a maximum and there is flexibility to propose increases below this level. For 2020/21 it is proposed that an increase of RPI only is adopted. The table below details the charges to be applied across all staffed and unstaffed locations.
Table 4 Bus Station Departure Charges
2020/21 Rate Period £ Applicable Staffed bus station departure rates Standard rate 0.493 Per departure Rate 1 0.247 Per departure Rate 2 0.296 Per departure Rate 3 0.321 Per departure Rate 4 0.395 Per departure Rate 5 0.987 Per departure Unstaffed bus station departure rates Standard rate 0.175 Per departure Rate 1 0.087 Per departure Rate 2 0.105 Per departure Rate 3 0.114 Per departure Rate 4 0.140 Per departure Rate 5 0.350 Per departure
7. RESOURCE IMPLICATIONS
Finance
As detailed in the report above
Human Resources
None as a direct result of this report. Page 24
Physical Assets
This report will provide resources to Merseytravel to undertake its asset management function in respect of the Mersey Tunnels and other LCRCA assets.
8. Information Technology
None as a direct result of this report.
9. RISKS AND MITIGATION
None as a direct result of this report.
10. EQUALITY AND DIVERSITY IMPLICATIONS
Members are reminded that under Public Sector Equality Duty, Merseytravel has a duty to eliminate discrimination, advance equality of opportunity and foster good relations between people who share a protected characteristic and those who do not. Whilst the level of detail contained within this budget does not lend itself to a full appraisal of the operational implications with respect to equality and diversity, it is possible that there could be resultant implications for people who share a protected characteristic, for example older disabled people. Therefore whilst there are no issues with the budget itself, any actions undertaken as part of the management of any savings, the equalities consequences will be fully appraised and any negative implications for any of the protected characteristics will be mitigated, where possible, subject to available resources.
11. COMMUNICATION ISSUES
Any fare changes will be communicated to users through appropriate channels ahead of their introduction.
12. CONCLUSION
12.1 The proposed budget for Merseytravel for 2020/21 presents a balanced and robust budget which has limited recourse to reserves. Additional resources have been allocated from the Combined Authority on the back of the proposed Levy increase and to reflect additional resource requirements to support the delivery of key priorities, both for revenue and capital.
JOHN FOGARTY Director of Corporate Services
Contact Officer(s): Sarah Johnston, Assistant Director of Finance (0151 330 1015) Joanna Sawyer, Corporate Communications Manager (0151 330 1129) Page 25
Appendices: Appendix One – Detailed Service Revenue Budgets 2020/21
Appendix Two – Deatiled Capital Programme 2020/21
Background Documents: None
Page 26 APPENDIX ONE: MERSEYTRAVEL DETAILED REVENUE BUDGET 2020/21 EXCLUDING RECHARGES
Original Budget Proposed BUS SERVICES 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 1,871 2,346 475 Premises 115 129 14 Transport 56 75 19 Supplies & Services 805 1,607 801 Third Party Payments 18,778 19,830 1,052 Total Expenditure 21,625 23,988 2,362
Income: Fees and Charges -2,778 -2,730 48 Other External Income -165 -128 37 LCRCA 0 -500 -500 Revenue Grants -1,516 -1,516 0 Total Income -4,459 -4,874 -416
Net Total - Bus 17,166 19,113 1,947 Original Budget Proposed RAIL SERVICES 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 820 1,005 185 Premises 333 347 14 Transport 8 8 0 Supplies & Services 209 755 546 Third Party Payments 79,923 99,513 19,590 Total Expenditure 81,293 101,628 20,335
Income: LCRCA 0 -146 -146 Income -78,042 -96,652 -18,610 Total Income -78,042 -96,798 -18,756
Net Total - Rail 3,251 4,831 1,580 Original Budget Proposed ROLLING STOCK 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 628 576 -53 Premises 0 0 0 Transport 29 18 -11 Supplies & Services 2,725 720 -2,005 Third Party Payments 9,018 6,525 -2,494 Total Expenditure 12,401 7,838 -4,562
Income 0 -3,293 -3,293
Net Total - Rolling Stock 12,401 4,545 -7,856 Original Budget Proposed CONCESSIONARY TRAVEL 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 0 0 0 Premises 0 0 0 Transport 0 0 0 Supplies & Services 0 0 0 Third Party Payments 74,096 71,867 -2,229 Total Expenditure 74,096 71,867 -2,229
Total Income -22,132 -19,903 2,229 Page 27 Net Total - Concessionary Travel 51,964 51,964 0 Original Budget Proposed CORPORATE MANAGEMENT 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 673 639 -34 Premises 0 0 0 Transport 6 2 -4 Supplies & Services 277 272 -5 Total Expenditure 955 913 -43
LCRCA -176 -210 -34 Total Income -176 -210 -34
Net Total - Corporate Management 779 703 -77 Original Budget Proposed CUSTOMER DELIVERY 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 4,298 4,230 -68 Premises 2,037 1,984 -53 Transport 8 10 2 Supplies & Services 828 814 -14 Fees & Charges (excludes recharges) 203 0 -203 Total Expenditure 7,374 7,038 -336
Income -1,877 -1,894 -17 Total Income -1,877 -1,894 -17
Net Total - Customer Delivery 5,497 5,144 -353 Original Budget Proposed POLICY & LTP DEVELOPMENT 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 1,126 394 -732 Premises 6 0 -6 Transport 7 2 -5 Supplies & Services 78 6 -72 Third Party Payments 0 0 Total Expenditure 1,217 401 -816
Income: LCRCA -75 0 75 Other Fees & Contributions -10 -46 -36 Total Income -85 -46 39
Net Total - Policy & LTP Development 1,132 355 -777 Original Budget Proposed MERSEY FERRIES 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 2,202 2,183 -19 Premises 985 897 -88 Transport 111 110 -1 Vessels 1,045 1,049 4 Supplies & Services 345 250 -95 Total Expenditure 4,688 4,489 -199
Income: Income -4,435 -4,238 197 Total Income -4,435 -4,238 197
Net Total - Mersey Ferries 254 251 -3 Page 28 Original Budget Proposed THE BEATLES STORY 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 1,691 1,810 119 Premises 1,005 1,052 47 Transport 21 19 -2 Supplies & Services 1,985 1,997 12 Other Costs 513 756 243 Total Expenditure 5,215 5,635 420
Income: Income -6,364 -6,632 -268 Total Income -6,364 -6,632 -268
Net Total - The Beatles Story -1,149 -997 152 Original Budget Proposed PEOPLE DEVELOPMENT 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 1,340 1,610 269 Premises 0 0 0 Transport 5 4 -1 147 251 104 Total Expenditure 1,493 1,865 372
Income: LCRCA - -388 -388 Total Income - -388 -388
Net Total - People Development 1,493 1,477 -16 Original Budget Proposed CUSTOMER DEVELOPMENT - TRANSFERRED TO LCRCA 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 1,219 0 -1,219 Premises 2 0 -2 Transport 6 0 -6 Supplies & Services 655 0 -655 Third Party Payments 455 0 -455 Total Expenditure 2,337 0 -2,337
Income: Other income -35 0 35 Grant Income -385 0 385 Total Income -420 0 420
Net Total - Customer Development 1,917 0 -1,917 Original Budget Proposed MERSEY TUNNELS - DIRECT COSTS ONLY 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 4,862 5,085 223 Premises 3,529 3,630 101 Transport 170 159 -12 Supplies & Services 1,445 1,281 -164 Fees & Charges (excludes recharges) 7,500 7,500 0 Total Expenditure 17,506 17,655 149
Net Total - Mersey Tunnels (Direct costs only) 17,506 17,655 149
Page 29 Original Budget Proposed ASSET MANAGEMENT 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 6,927 7,247 319 Premises 5,069 5,014 -54 Transport 235 275 40 Supplies & Services 316 307 -9 Total Expenditure 12,546 12,843 297
Income: LCRCA 0 -369 -369 Other Income -1,522 -1,668 -146 Total Income -1,522 -2,037 -515
Net Total - Asset Management 11,024 10,806 -218 Original Budget Proposed IT 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 1,807 2,082 275 Premises 0 0 0 Transport 9 10 1 Supplies & Services 2,353 2,290 -64 Total Expenditure 4,170 4,382 212
Income: LCRCA -215 -456 -241 Other Income -121 -144 -23 Total Income -336 -600 -264
Net Total - IT 3,833 3,781 -52 Original Budget Proposed FINANCE 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 1,133 1,339 206 Premises 0 0 0 Transport 0 1 1 Supplies & Services 29 29 1 Total Expenditure 1,162 1,369 207
Income: LCRCA -186 -376 -190 Total Income -186 -376 -190
Net Total - Finance 976 992 17 Original Budget Proposed AUDIT 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 392 452 60 Premises 0 0 0 Transport 1 1 0 Supplies & Services 30 200 170 Fees & Charges (excludes recharges) 0 0 0 Total Expenditure 422 652 230
Income: LCRCA -121 -166 -46 Total Income -121 -166 -46
Net Total - Audit 302 486 184
Page 30 Original Budget Proposed LEGAL, PROCUREMENT & DEMOCRATIC SERVICES 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 1,220 1,301 81 Premises 0 0 0 Transport 12 3 -9 Supplies & Services 134 88 -46 Fees & Charges (excludes recharges) 0 0 Total Expenditure 1,366 1,392 26
Income: LCRCA -173 -360 -187 Other Income -32 -6 26 Total Income -205 -366 -161
Net Total - Legal, Procurement & Democratic Services 1,161 1,026 -135 Original Budget Proposed PROGRAMME MANAGEMENT OFFICE 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 596 628 32 Premises 0 0 0 Transport 2 2 0 Supplies & Services 6 6 1 Fees & Charges (excludes recharges) 1 0 -1 Total Expenditure 604 637 33
Income: LCRCA -166 -175 -9 Other Income 0 0 0 Total Income -166 -175 -9
Net Total - Programme Management Office 438 462 24 Original Budget Proposed CORPORATE COSTS 19/20 Budget 20/21 Variance Expenditure (£'000) (£'000) (£'000) Employees 4,112 870 -3,242 Premises 0 0 0 Transport 0 0 0 Supplies & Services 455 200 -255 Fees & Charges (excludes recharges) 20 30 10 Total Expenditure 4,587 1,100 -3,487
Sub Company Management Recharges 0 -219 -219 Other Income 0 -100 -100 Total Income 0 -319 -319
Net Total - Corporate Costs 4,587 781 -3,806
Page 31 This page is intentionally left blank MERSEYTRAVEL CAPITAL PROGRAMME 2020/21
20/21 £'000 Bus Stop Upgrades 154 General Bus Stops 80 Bus Priorities 150 Bus Stop Accessibility Improvements 300 RTPI @ Bus Stations 200 Bus/Rail Interchange 139 RTI Back Office Systems - Life Expired 150 Bus Scheduling Software 150 RTI Management Performance Analytics 150 Infrastructure for Electric Vehicles 60 Old Roan Interchange 100 Green Bus Routes 85 Total Bus Capital 1,718
Actora Development & Implementation 50 Smart Ticketing Data Warehouse & Reporting Solution 100 Warrington ETM 100 QR Ticketing 100 Metrosmart Portal 100 Programme Support 220 Business Case -FBC 20 Bus Multi Operator EMV Solution 50 ITSO Card on Mobile 50 Ferries solution 250 Ticketer Transport App 50 ITSO Based ABT Solution 50 Total Smart Ticketing 1,140
Naval Architect Build Supervision incl £30k expenses 100 Marine Architect " Critical Friend" 20 New Vessels Interfaces works at 3 Terminals 750 Seacombe Dry Docking & Super Structure works 7,000 Specialist Marine Engineer - Consultant re Landing Stages/Terminals 200 Stages & Pontoons inspections & remedial works 120 Woodside Accessibility Lifts Capital Costs to keep existing Vessels in the water 150 Eureka Terminal Works - Remedial Works to support Eureka Legal Agreement 160 Total Ferries Capital 8,500
Page 33 UTC Traffic Signals 150 LCR Cycle Network -Phase 2 50 Total Corporate Strategy Capital 200
Data Storage Refresh 400 Remote Access Appliances 20 Cisco UCS M3/M4 Blade Refresh 150 Scada Firewall Refresh 40 SQL Licencing 140 Data Network Refresh 300 Desktop Refresh 80 Rail Reimbursement System 90 Total ICT 1,220
Agresso 30 Mann Island 20 Mersey Tram Compensation 20 Total Support Services 70
Liverpool Central Development 882 Station Validators 685 Spital (STEP) 25 Prescot Lifts & Car Park 3,320 Access for All - Major Schemes 3,000 St James New Station 800 Headbolt Lane 3,250 HS2 Station Commission 450 Bromborough Station P&R 1,000 LSP Renewals 150 LSP Car Park Expansion 200 LSP Platform Extension 200 Studies LTRS & Manifesto Proposals 500 Sandhills Capacity Enhancement (Early Grip Stages) 500 Rail Devolution 400 Widnes P&R 750 Renew Station Totems 250 Kirby Car Park Refurbishment 150 Total Rail Budget 16,512
Page 34 Various Tunnels Inspections & Assessments 100 Replace police vehicles 75 CCTV 200 Kingsway Replace Sump Pump Drainage Pipework System 2,840 Vent Station Interior Refurbishment Programme 100 Queensway Tunnel Rewire/Interventions 300 Kingsway Transformers & HV Switch Renewals 800 Queensway Carriageway Soffit Works 900 Kingsway Jet Fans 450 Kingsway refurb Tunnel Entrances 250 Kingsway Vauxhall Road Eldonian Regeneration 100 Queensway Jet Fan Electrical Infrastructure 400 Decant Wallasey Elevated Control Building 150 Queensway Jet Fan 300 PA System in Queensway & Kingsway 400 Toll System Enhancements 600 Total Tunnels 7,965
Total Before Rolling Stock 37,325
MSA 75,059 Depot 532 NR - Power 11,140 NR Train Lengthening 30,000 Connectivity 7,703 Total Rolling Stock 124,434
Total Merseytravel Capital Programme 161,759
Funded by: Grants -37,063 Revenue Contribution to Capital Outlay -7,965 Other Sources of Funding 0 Borrowing -116,731 Total Funding -161,759
Page 35 This page is intentionally left blank Agenda Item 6
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Chair and Members of the Transport Committee
Meeting: 16 January 2020
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
REPORT OF MERSEYTRAVEL
QUARTERLY BUS UPDATE
1. PURPOSE OF REPORT
1.1 The purpose of this report is to update the Transport Committee on key bus issues relating to the third quarter of 2019/2020.
1.2 Specifically, the report will provide Members with information on progress to deliver the Bus Alliance Business and investment plan in the third quarter of 2019/20, progress on developing the commitment of the LCR Devolution Deal in respect of improving bus services and other key deliverables of the Bus Team.
2. RECOMMENDATIONS
It is recommended that the Transport Committee note the contents of the report.
3. BACKGROUND
3.1 LCR Bus Alliance
3.1.1 The milestones and Key Performance indicators of the LCR Bus Alliance are laid out in the Performance Management framework 2019/2020, along with the 2019/20 investment plan.
3.1.2 In quarter three of 2019/20, the following milestones have been completed or there has been significant progress made:
(a) Consultants Waterman continue to progress the Green Routes Commission and this quarter have held a number of workshops with Bus operators and the Local Authorities of Sefton, St Helens, Knowsley and Liverpool to review routes and discuss the long list of bus priority interventions proposed, along with bus interchange requirements, where applicable. A scope for additional works required to reach Outline Business Case (OBC) has been agreed, with the proposed date for its completion being 20 April 2020. Page 37
(b) Work is progressing on the implementation of Intelligent Traffic Signalling (ITS) bus priority on route 10A between St Helens and Liverpool City Centre. Benefits of this project will begin to be realised by the end of quarter four, before reviewing lessons learnt and rolling out the technology on route 53 in 2020/21.
(c) Work is continuing with the implementation of the Bus Rerouting Strategy as part of the LCC Connectivity Programme.
(d) A six week „Opportunity to Comment‟ was launched to enable stakeholders, bus users & general public to feedback on the proposed changes. There was a high level of interest in the proposals and they attracted over 1700 comments and key stakeholder interest. These comments have been used to help inform the finalised rerouting strategy.
(e) Work has commenced on Duke Street to remove traffic calming measures and some loading and parking to provide the required alternative route through the city centre. This milestones is on track to be completed by the end of Quarter three. Construction of the City Bus Hub is largely complete and subject to leasing arrangements and testing will be available for buses to use in Quarter four.
(f) Due to further consideration of bus priority measures on Hanover Street the changes to city centre routes planned to be introduced in January 2020 will now take place at a later date in 2020.
(g) The LCR Planning Team are in the process of contacting the Bus Alliance members to seek their views on the potential inclusion of public transport requirements and issues that may need to be reflected or considered within the developing Spatial Development Strategy (SDS).
(h) New real time information screens have been installed at each stand in Queen Square bus station with a further rollout out of screens planned stage for Liverpool One Bus Station.
(i) The Better by Bus campaign “We cannot wait to tackle climate change” continues to raise awareness of the local and global environmental benefits travelling by bus can bring and has been pursuing ideas around living and edible bus stops.
3.1.3 Development of the 2020/21 LCR Business and Investment Plan began on Wednesday 25 September and is due to be signed off by the Joint Alliance Board on Tuesday 3 March 2020.
3.2 The LCR Devolution Deal – alternative delivery model for bus
3.2.1 A vision for bus has been developed which intends to tackle issues identified by customers, further support the aims of the Bus Strategy, capture new innovations and technology in the sector and region, and better recognises Page 38 the important role of bus services in supporting the LCR‟s economic and social priorities along with improving air quality through greener buses and modal shift from car. This vision for bus was approved by the Liverpool City Region Combined Authority in July 2019.
3.2.2 The focus of quarter three has been to continue engagement with operators in order to understand to what extent the vision for bus could be delivered through an enhanced partnership or the LCR Bus Alliance (the Reference Case). This has been progressed through a series of 1:1s and group meetings with operators supported by written returns. Development of the five cases of the Outline Business Case has been progressing.
3.2.3 A draft of the OBC has been received by Merseytravel on 18 December 2019. It is anticipated that a report seeking endorsement of a leading option for bus reform and to seek approval to progress to the next phase of the process will be considered by the Members of the Combined Authority on 28 February 2020.
3.3 Other key work areas and achievements
Electronic Ticket Machine (ETM) Roll out
3.3.1 The use of contactless as a method of payment on bus has risen steadily since the installation of new Electronic Ticket Machines (ETMs) in July on all buses operating across the LCR Network. Initial uptake has been very positive and, as of the end of November, the total EMV (Electronic MasterCard and Visa) sales on bus across supported services on the LCR network has reached 13.28% of all transactions. Within the same period, Arriva have seen a 25% per cent uptake in contactless payments and Stagecoach a 29.3% percent uptake in contactless payments as a percentage of all transactions.
3.3.2 On bus vinyls have been produced and distributed to operators of supported bus services to ensure that the option of contactless payment is clearly communicated to bus users.
3.4 RTI Punctuality and Reliability
RTI System Accuracy has improved dramatically since the installation and roll out of the new ETMs. The average figure for November was 95.2%.
3.5 TravelSafe initiatives
3.5.1 Operation Banger is a long standing initiative which TravelSafe delivers in partnership with bus operators and Merseyside Police to tackle antisocial behaviour on and around the bus network during the week around Halloween, a period where high levels of vandalism and Anti-Social Behaviour are observed. The operation includes dedicated patrols and diversionary activities designed to keep passengers and drivers safe and to reduce incidents on the network. Activates for this year‟s operation banger have now concluded. It was a difficult series of operations this year that resulted in several routes being suspended or temporarily withdrawn. An Page 39 official debrief is planned for the end of November and the agreed outcomes of this will be shared.
3.5.2 Operation Mosca is a joint Merseytravel and Merseyside Police initiative which has been running for two years through the TravelSafe scheme. It targets illegal parking by motorists in bus stops and layover facilities that would otherwise create safety and operational difficulties for the travelling public and bus drivers. The Scheme uses children from local schools as with a mini court on a dedicated bus. A magistrate is in session on each bus and drivers can be issued with fines and / or warnings on the spot. There have been three successful operations since the return of the schools in September and a total of nine drivers have been cautioned with regards to illegal parking in bus stops. The next operation will be of a high profile as it falls within the Christmas Enforcement period in the city centre on 13 December.
3.5.3 Red Umbrella is a new project which works with Merseyside Police Federation (Merpol) and a local charity to tackle hate crime and improve the health and wellbeing of communities in the Anfield area. The first operation took place in October and resulted in a significant positive intervention for the charity and Merseyside Police, the plan has been reviewed and the second operation successfully undertaken. A total of six interventions were made during the November operation.
3.6 Stops and Shelters Inspection Programme
3.6.1 An enhanced programme of checks on the cleanliness and standards of the stops and shelters on the LCR bus network infrastructure is now carried out. These stops and shelters are predominantly on the key route network or well patronised locations. The monthly resource for this inspection programme has doubled since originally implemented and now over 40% of this infrastructure is part of a regular audit regime. A review of the standards of compliance checks to ensure they are correct and fit for purpose takes place with asset management in November.
3.6.2 Bus is averaging 1600 checks on shelters per month and on average 38% of those inspected require some form of rectification works to be completed or resolved. These have predominately been cleaning issues, maintenance issues (mostly burning to poly carbonate within the timetable frames) or customer information issues (ie missing timetables).
3.7 Christmas Traffic Enforcement
The implementation of the Christmas Traffic Enforcement plan commenced on 28 November andmirrored last year‟s activities to keep the bus network moving in and around the city centre during the festive period and tackle illegally parked vehicles.
3.8 Contract Management Procurement
Procurement for the new system closed on the North West Procurement Portal on 23 December, with four bids received. Evaluation took place on 6th and 7th January
Page 40 and a report for approval, subject to successful bids is expected to go to Merseytravel for approval on 13 January 2020.
3.9 Customer Information
3.9.1 The Customer Information team have been continuing the work on processing the updating of information due to bus service changes as part of the calendar of change dates along with preparation of material detailing the public transport offer over the festive period. This information was available from 4 December through all channels.
3.9.2 Work implementing the outcome of the provision of information update report continues as expected with 28 outlets retaining bus timetable leaflets until April 2020. Progress continues on introducing alternative information sources at bus station locations.
3.10 Bus and Customer Information Comments
3.10.1 A total of 149 comments were received by Bus in the first month of quarter three (October) with 138 of them being replied to within the 14 day window. 10 were still outstanding at the end of the month. Customer Information received 41, of which 39 were responded to within 14 days, and the other 2 remaining open.
3.10.2 Comments and feedback received have been grouped around the following themes:
(a) Continuing feedback from the Bus Rerouting opportunity to comment;
(b) diversion of the 133 due to the closure of Boyes Brow;
(c) diversion of school buses around Wirral due to tree issues ;
(d) Huyton Travel and Selwyns journeys which had not operated;
(e) missing timetables; and
(f) disruption notices and alternative operating arrangements in relation to Victoria Street and Sir Thomas Street works.
3.11 National Transport Awards 2019
The LCR Bus Alliance was the winner of the “Improvements to Bus Services” award at the National Transport Awards 2019 in London in October.
4. RESOURCE IMPLICATIONS
4.1 Financial
There are no financial implications resulting from this report.
Page 41 4.2 Human Resources
There are no human resources implications resulting from this report.
4.3 Physical Assets
There are no implications for physical assets resulting from this report.
4.4 Information Technology
There are no implications for information technology resulting from this report.
5. RISKS AND MITIGATION
5.1 The Combined Authority‟s Programme Management Office ensures that milestones, risk and impact of each improvement that is delivered and is outlined in the Performance Management Framework 2018/19, is measured, monitored and reported.
5.2 The Alternative Delivery Options Business case process is led by an advisory team of Addleshaw Goddard (lead), Price Waterhouse Cooper and Steer and managed by a Governance structure lead by the Director of Resources.
5.3 To ensure compliance, the Legal and Procurement teams have been heavily involved in the reform of the supported bus services contract and remain and integral part of the procurement process.
6. EQUALITY AND DIVERSITY IMPLICATIONS
The equality and diversity implications of individual activities have been and will continue to be fully considered as part of developing the Bus Alliance Investment plans, bus service reviews and considerations as part of the Business Case for alternative bus delivery models in alignment with the Bus Services Act 2017.
7. PRIVATE IMPLICATIONS
There are no potential privacy implications as a result of this report.
8. COMMUNICATION ISSUES
8.1 A communications plan to support City Centre Bus Routing is in place, which will include bus operators and Liverpool City Council.
8.2 The LCR Bus Alliance has a joint communications strategy and the Bus Team works closely with colleagues in Corporate Communications and Corporate Engagement. Some of the items mentioned above have been subject to separate communications
Page 42 9. CONCLUSION
This report has highlighted activities delivered in quarter three of 2019/20 by the LCR Bus Alliance and the Bus Team, and the commitment of the LCR Devolution Deal in respect of improving bus services.
MATT GOGGINS Assistant Director of Bus
Contact Officer(s): Matt Goggins, Assistant Director of Bus, [email protected]
Laura Needham, Bus Strategy Programme Manager, [email protected]
Joanne Sawyer, Corporate Communications Manager, [email protected]
Appendices: None
Background Documents: None
Page 43 This page is intentionally left blank Agenda Item 7
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Chair and Members of the Transport Committee
Meeting: 16 January 2020
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
REPORT OF MERSEYTRAVEL
LONG TERM RAIL STRATEGY UPDATE
1. PURPOSE OF REPORT
The purpose of the report is to inform the Transport Committee of the progress of delivery of the Liverpool City Region Long Term Rail Strategy.
2. RECOMMENDATIONS
2.1. It is recommended that the Transport Committee note the report and continue to support the implementation of the Liverpool City Region Long Term Rail Strategy.
3. 2014 STRATEGY
3.1. The Liverpool City Region Long Term Rail Strategy (LCR LTRS) was initially published in 2014 and subsequently updated and endorsed by the Metro Mayor in 2018. (The strategy can be found at the following hyperlink: https://www.merseytravel.gov.uk/about-us/local-transport- delivery/Documents/10399%20Merseytravel%20LongTermRail_Stratergyweb.pdf )
3.2. The principle aim of the LTRS was to provide a clear focused evidence based approach to improvements on the rail network both within the LCR but also the links into the LCR. One of the key benefits of the strategy was the review of all the potential improvements on the network and refining these down to a series of packages which focused on those projects which would deliver the best improvements to the network.
3.3. 12 work packages were developed which set out proposed enhancements to the network. These are detailed in Appendix Two of the updated Long Term Rail Strategy.
4. SUMMARY OF ACHIEVEMENTS WITHIN WORK PACKAGES
4.1. The summary below sets out what has been achieved against each of the packages: Page 45
(1) Improving National Passenger and Freight Connections
As part of the development of the TPE franchise new services will be in place from December 2019 providing direct connections from Liverpool to both Glasgow and Edinburgh.
(2) Merseyrail Growth Enabling
The key component of this package was the replacement of the Class 507/508 rolling stock with new high capacity high performing units. The new rolling stock is due to be phased in from 2020.
(3) Liverpool City Centre Capacity
Work has commenced on the upgrade of Liverpool Central station. Lime Street capacity enhanced.
(4) City Line Enhancements
Newton-le-Willows has been the subject of a major upgrade in conjunction with the improvement of services on the line provided by Transpennine Express. Work has also commenced on a study to investigate improvement of rail links to Liverpool John Lennon Airport.
(5) Cheshire Lines Route Enhancements
The LCR has undertaken a study on the line in conjunction with Transport for Greater Manchester and Warrington Borough Council to consider what improvements can be made on the line. This is being used as a basis by Network Rail for its Continuous Modular Strategic Planning output.
A study into the re-opening of the Wapping Tunnel has been undertaken which identifies how City Line service could be brought into Liverpool Central.
(6) Halton Curve
The Curve has been reinstated and services have been operating on the line between Liverpool and Chester since May 2019. This provides improved links to Chester and also Frodsham and Helsby. It also improves services into North Wales and beyond.
(7) Improved Connections to Chester and Ellesmere Port
Service frequency has been increased with Chester now having 4 trains an hour throughout the day. Study work has been undertaken with Growth Track 360 into potential improvements at Chester which would allow a Merseyrail service to operate through to Crewe and with Cheshire West and Chester into extending the Ellesmere Port service through to Helsby.
The new service operating from Chester through Newton-le-Willows to Leeds is now Page 46 in place.
(8) Ormskirk-Preston Enhancements
A study into the re-opening the Burscough Curves has been undertaken which does not have a good business case. The potential for improvements on this line is likely to be dependant on the development of battery operation of the new Merseyrail units. A study is being undertaken to consider battery operation.
(9) Kirkby-Wigan Line
The LCR has worked with Lancashire County Council and Network Rail on the potential extension of the Merseyrail line through to Skelmersdale. A GRIP 3 study will be completed in 2020. Transforming Cities Funding has been made available to extend the Merseyrail services through to a new station at Headbolt Lane. GRIP 4 work is expected to commence early in 2020 on the Headbolt Lane option.
(10) Borderlands Line Enhancements
The LCR has worked with Transport for Wales and Growth Track 360 on the development of this line. New units (Class 230’s) will be introduced to the line in 2020. In addition to this the service will be increased to a half-hourly service from December 2021.
(11) Mixed Passenger & Freight use on Current Freight Only Lines
Study work is being undertaken to assess the feasibility of reopening the Bootle branch top passenger services.
(12) Selected New Stations
Maghull North new station was opened in June 2018. Work has commenced on the re-opening of St James station and is expected to be complete in 2023. The LTRS identifies other station which could be brought forward in the future. The extension from Kirkby with a new station at Headbolt Lane is also expected to be delivered by 2023.
A summary of the level of development of each package is detailed at Appendix 1 of this report.
5. 2018 UPDATED STRATEGY
5.1. In 2018 the Strategy was updated to take account developments on the railway which were likely to have a direct impact on the LCR.
Page 47 5.2. The LCR Devolution Deal outlined a range of funds and responsibilities that have passed to the control of the LCR Combined Authority. The Devolution Deal ultimately means the LCR has greater potential to support the planning and delivery of the rail offer within the LCR. This is chiefly demonstrated through the procurement of the new rolling stock and which also continues through discussions with Government about the potential transfer of control of the local rail network to the LCR.
5.3. The LCR continues to work closely with TfN regarding the development of the railway across the north of England. TfN is a statutory Sub-national Transport Body and has a pan-Northern remit which includes the development of Northern Powerhouse Rail, a plan to provide faster links between northern cities. It has subsumed the role of Rail North and has direct responsibility in conjunction with the DfT for the management of the Northern and Transpennine Express franchises.
5.4. The revised strategy also updated the evidence base to take account of recent changes and projected these changes through to 2040.These looked at expected changes in population, employment and GVA for the City Region.
5.5. The poor level of connectivity of Liverpool was highlighted in comparison with other towns and cities across Britain and how this could be improved if key links were reinstated. It also highlighted the importance of HS2 in reducing journey times to and from London.
5.6. The key highlight in the updated strategy was the role Liverpool Central plays in the operation of the network and the economic activity around the railway. In excess of 60% of journeys start or finish in Liverpool with Liverpool Central being the most used station on the network. Liverpool Central ranks as the 3rd highest used station in the north behind Manchester Piccadilly and Leeds, considering there are only 3 platforms it is not surprising that it is has the most congested platforms outside of London.
5.7. The implications of this are important as any development of the network will have a direct impact on the use of Liverpool Central. Increased use of the network will lead to greater levels of patronage at Central. The new rolling stock while increasing the capacity of trains are also likely to attract greater passenger numbers which again will lead to great use at Central.
5.8. With the issue of Liverpool Central passenger capacity in mind the revised strategy changed the focus on the propose work to 3 specific packages of work. Appendix 2 details the projects identified within each group.
Group 1: Projects that have been delivered or are committed These are summarised in section 4 above.
Group 2: Projects which are linked to, or require an upgrade at Liverpool Central At the heart of this group is the recognition that Liverpool Central needs to be expanded to cater for the levels of patronage expected to use the station in the future. This is based on the general increase in patronage anticipated through latent growth and also the expected increases in demand that improvements to the rail network would bring. Such improvements includes any new stations on the Merseyrail network and identified major projects such as Skelmersdale Rail Link or Page 48 improvements to routes which link into the Merseyrail network.
Group 3: Projects that have limited impact on Liverpool Central This group includes main line improvements along with freight improvements.
5.9. The number of projects identified within group 2 highlight the importance that improvements are made at Liverpool Central to ensure Merseyrail continues to play an important role in the development of the Liverpool City Region.
5.10. Transforming Cities Funding is being used to take forward a number of projects. Funding has been allocated to the development and delivery of the Headbolt Lane extension and St James new station. Funding has also been allocated to the development of improved park and ride facilities which will cater for the increased demand for rail services into the future and as matched funding with DfT Access for All funding.
6. RESOURCE IMPLICATIONS
6.1. Financial
The implementation of the strategy will require specific levels of funding depending on which projects are taken forward.
6.2. Human Resources
Additional resources may be required to deliver the projects identified within the LTRS. If required approval will be sought on a project by project basis.
6.3. Physical Assets
The projects identified will have a significant impact on the rail infrastructure. In the main this will be the responsibility of Network Rail.
6.4. Information Technology
There are no IT issues to be addressed.
6.5. Programme Management Office (PMO)
Individual projects will be reported through the PMO. This is already the case with Liverpool Central, Headbolt Lane extension and St James new station.
7. RISKS AND MITIGATION
7.1. Each potential project has its own specific risks and required mitigations. These could impact on the ability to deliver the LTRS. These will be reported within each individual project.
Page 49
8. EQUALITY AND DIVERSITY IMPLICATIONS
8.1. The importance of equality and diversity is recognised and is assessed within each project taken forward.
9. PRIVACY IMPLICATIONS
7.1 There are no privacy implications with the LTRS.
10. COMMUNICATION ISSUES
10.1. Each project identified within the LTRS will be addressed as it is taken forward.
11. CONCLUSION
11.1. The LTRS is ambitious and sets out the projects which are needed to ensure that the rail network within the Liverpool City Region is capable of providing the service required by the population of the LCR and that it also supports the economic development of the region as a whole.
The LTRS highlights the importance that improvements are made at Liverpool Central
The strategy reviews the projects which have been identified in the past and provides a solid basis for the justification of projects to be delivered in the future.
FRANK ROGERS Director General Merseytravel
Contact Officer(s): David Jones, Rail Development Manager, 0151 330 1108 Joanna Sawyer, Corporate Communications Manager, 10451 330 1129
Appendices: Appendix One – Package Development Appendix Two – LTRS Groups Available at the link: https://www.merseytravel.gov.uk/about-us/local-transport- delivery/Documents/10399%20Merseytravel%20LongTermRail_Stratergyweb.pdf
Background Documents: Liverpool City Region Long Term Rail Strategy
Page 50 Appendix 1
Package Components Completed/Developed Completion Level
Improving National Passenger Liverpool-Scotland services in place from 25% and Freight Connections Dec 19
Merseyrail Growth Enabling Replacement of Merseyrail rolling stock 85% underway Upgrade of power supply underway Increase capacity of network through delivery of Class 777’s Introduce operational efficiencies through delivery of Class 777’s
Liverpool City Centre Capacity Implementation of Liverpool Central 35% enhancement scheme commenced Improving capacity at Lime Street completed
City Line Enhancements Capitalising on the opportunities of 20% substantially enhanced services between Liverpool, Manchester and Wigan as a result of Northern Hub and electrification investment Newton-le-Willows upgraded with 405 space car park and lifts Study work on improved links to Liverpool John Lennon airport commenced
CLC Route Enhancement Study work has been undertaken in 15% conjunction with Network Rail and TfGM Study work on the development of the Wapping Tunnel has been completed
Halton Curve Halton Curve Link restored allowing two 95% way operation Increased frequencies of services to Chester Direct links provided to Frodsham and Helsby Alternative route through to Cardiff/Shrewsbury provided (although a change is required at Chester)
Improved Connections to Liverpool – Chester services is now 4 15% Chester/Ellesmere Port trains an hour throughout the day Chester – Leeds service via Newton-le- Willows delivered
Page 51 Much of remaining work in package is related to electrification which may be superseded by Class 777’s allowing battery operation
Ormskirk-Preston Study into the reopening of the 10% enhancements Burscough Curves is completed although the business case is poor Proposed electrification superseded by potential battery operation of Class 777’s
Kirkby-Wigan Line Development work (GRIP 3) undertaken 40% on link through to Skelmersdale. Extension to Headbolt Lane being delivered separately and expected to be in place by 2023
Borderlands Line Service level to be enhanced to two 50% Enhancement trains an hour from December 2021 as part of Wales and Borders franchise Electrification superseded by potential battery operation of Class 777’s. Flintshire are developing new station at Deeside
Mixed Passenger & Freight Multi-modal study being undertaken on 15% Use on Freight LInes potential use of Bootle branch for services. LCR working in conjunction with Transport for North regarding new freight routes into the LCR
Selected New Stations Maghull North delivered 75% St James development commenced Headbolt Lane development commenced
Page 52 Appendix 2: Revised LTRS Groups
Group 1: Projects that have been delivered or are committed
Merseyrail Rolling Stock Halton Curve reinstatement Newton-le-Willows refurbishment Maghull North new station New rail service between Chester and Leeds via Newton-le-Willows Improved links from Liverpool to Scotland
Subsequent to the development of the revised strategy two additional projects can be included as committed, these are:
Headbolt Lane rail extension St James new station
Group 2: Projects which are linked to, or require an upgrade at Liverpool Central
Liverpool Central Lime Street/City Centre station expansion Wapping Tunnel Development Skelmersdale extension (note that the extension to Headbolt Lane is committed) Extending Merseyrail services to Liverpool John Lennon Airport Cheshire Lines Route Enhancements Electrification of the Chester-Shrewsbury and Chester-Warrington Lines Electrification of Ellesmere Port to Helsby Line Ormskirk-Preston enhancements Borderlands Development Bootle Branch Electrification North Mersey Branch Other New Stations
Group 3: Projects that have limited impact on Liverpool Central
Development of Liverpool – London services Freight Proposals Development of Long Distance Service Connections
Page 53 This page is intentionally left blank Agenda Item 8
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Chair and Members of the Transport Committee
Meeting: 16 January 2020
Authority/Authorities Affected: All Authorities
EXEMPT/CONFIDENTIAL ITEM: No
REPORT OF MERSEYTRAVEL
Liverpool City Region Green Sustainable Transport Corridors Project – Update
1. PURPOSE OF REPORT
1.1. The purpose of this report is to provide an update to the Transport Committee on the delivery of the European Regional Development Funding (ERDF) and Transforming Cities Funding (TCF) funded LCR Green Sustainable Transport Corridors Project.
2. RECOMMENDATIONS
2.1. It is recommended that the Transport Committee:
(a) Note progress on the delivery of the Liverpool City Region (LCR) Green Sustainable Transport Corridors Project ; and (b) request annual updates on delivery of the Liverpool City Region Green Sustainable Transport Corridors Project until January 2022.
3. BACKGROUND
3.1. In October 2016 Merseytravel submitted an application for ERDF funding that would link housing and workplaces through new cycling corridors, enhanced green infrastructure and habitat improvements. Supported by the development of sensors and a mobile app that could monitor and communicate cycling route usage and environmental factors such as air quality.
3.2. In January 2019 Liverpool City Region Combined Authority (LCRCA) was successful in its application and awarded £8.4m ERDF funding following an application in October 2017. Matched with £8.5m of local contribution funding including £4.3m TCF latterly approved in July 2019. From April 2019 to December 2022 the project will be delivering 52.8km of cycleway plus 49 hectares of habitat improvements across 9 work packages delivered through our 6 LCR local authorities and Liverpool John Moores University (LJMU) delivering sensor and mobile application development.
3.3. Project delivery is staggered across the programme with some work packages delivering while others are still waiting for approval to begin. Those that are Page 55 delivering are doing so according to agreed financial profile and project milestones. Those awaiting approval are not in delivery due to legal and funding issues. Of those with issues there is mitigation in place with expected resolution for end of February 2020. A more detailed summary of the current position of each work package can be found in Appendix 1.
4. RESOURCE IMPLICATIONS
4.1. Financial
The project is funded from multiple funding pots including ERDF and TCF. LCRCA can now claim quarterly from the managing authority “Ministry of Communities and Local Government” (MHCLG). LCRCA first claim expected to be made in January 2020.
The project team are also looking to access £390k extra ERDF PA6 funding for habitat improvements to improve the scope of the current project.
4.2. Human Resources
There are no known human resource issues.
4.3. Physical Assets
As part of the ERDF funding regulations all development delivered is to be retained and maintained for a period of 15 years by the local authority partners and any respective third party land owners. The development will be protected through a Deed of Covenant that would pass between land owners in case of any transfer. An asset log will be created for the project and we are currently confirming criteria for this log with the managing authority MHCLG.
4.4. Information Technology
There is sensor software and a mobile application being developed as part of the project although these have no implications on LCRCA resources. Although learning will be available for insight into potential future investment.
5. RISKS AND MITIGATION
5.1. The key risks and associated mitigation are set out in Appendix 1.
6. EQUALITY AND DIVERSITY IMPLICATIONS
6.1 There are no known equality and diversity implications. As part of our quarterly reporting to MHCLG reporting is required on cross cutting themes one of which is equality and diversity. This allows partners to plan, review, manage and communicate the impact of their delivery on a quarterly basis.
7. PRIVATE IMPLICATIONS Page 56
7.1 After consultation with the Senior Information Management Officer it was deemed that a Privacy Impact Assessment is not required for the project at this moment in time. As good practice the Project Officer will complete a Privacy Impact Assessment to ensure compliance.
8. COMMUNICATION ISSUES
8.1. There are no communication issues within the project at this moment. This is monitored on a monthly basis as part of the projects risk register and reported to both the Transforming Cities Board and the Project Delivery Group.
9. CONCLUSION
9.1. Seven of the work packages have begun delivery with 3 still not in delivery due to funding eligibility or legal issues. Those not delivering have mitigation in place that would still allow delivery of the outputs. Those in delivery are on track with some phases already being completed. The project is delivering within its financial forecast.
Shane Fitzpatrick – Interim Director of Integrated Transport
Contact Officer(s): Barbara Wade - LTP Development Manager - 0151 330 1852 Joanna Sawyer – Communications Manager – 0151 330 1129 Thomas Foulkes – SUD Project Officer – 0151 330 1925 Appendices: Appendix One – Project delivery update
Background Documents:
None
Page 57
Page 58 Page Appendix 1
Work package Update RAG Status Issue/risks Mitigation WP 1 Liverpool – Garston Procurement process Green Some re-routing was Route redesigned in order Liverpool City Council started for both habitat required from initial bid not to make any material £2,146,600 and highways design. due to potential impact changes to the outputs and of future highways outcomes. development. WP 2 Southport – Crosby Technical design completed Green Some third party land Advanced talks with third Sefton Council for phase 1 completed and ownership which will party land owners have £3,820,000 formally agreed by MHCLG. require development taken place with no Procurement completed rights. expected issues. for construction and contractor to be appointed Some works rely on the Rescheduling of in January as scheduled. input/delivery from third construction phases will party organisations with appease any delays allowing Page 59 Page no influence under this delivery to continue project e.g Network Rail elsewhere on the work and energy companies package. WP 3 Prescot – Widnes Knowsley Council Green Some third party land Talks are on-going with land Knowsley Council - Prescot to ownership in Knowsley owners no issues as yet and Cronton On track for technical which will require the route can be altered to £1,610,870 design to be completed development rights. deliver same outcomes and and submitted as outputs if land issues scheduled. become problematic.
Halton Council - Cronton – Halton Council Widnes £1,306,114 First of 5 phases delivered with path and habitat improvements in Victoria Park. Other WP 4 Liverpool Loop Line Failed Single Tender Amber Unable to identify a In order to mitigate this risk LCRCA Justification attempt to delivery partner for this LCRCA are looking at the £499,926 appoint Sustrans to deliver work package feasibility of delivering this the work package. This has project. resulted in reallocating work package to Liverpool City Council. This decision is awaiting cabinet approval. Expected resolution March 2020. WP 5 St Helens Central - On track. Project manager Green Some third party land Preliminary talks with third St Helens Council appointed. All technical ownership which will party land owners have £1,515,000 design for the work require development taken place with no package to be completed in rights. expected issues. Jan as scheduled. Looking to access extra ERDF funding to increase scope of flooding works. Page 60 Page WP 6 Leasowe – Seacombe Issues with land ownership Amber Land issues related to After negotiations we have Wirral Council has delayed signing the plans crossing Network agreed that an Option B £1,233,220 legal agreement. This is Rail Land which is classed along the highway can be now close to being as live rail. This will need included in the legal resolved and resolution to be decommissioned agreement if a solution for expected in February 2020. and the land either developing on the Network acquired by the council rail land cannot be found. or development permissions obtained from Network Rail. WP 7 LCWIP Route Advanced talks are with Red The ERDF funding was New scheme is being LCRCA (Wirral Council TBC) Wirral to take on the not eligible for spend in designed to fit within the £2,893,523 funding and detail being Halton which the initial timeframes available. prepared for reappraisal project was allocated for. Although the scheme will from both LCRCA and This has caused delays as need appraising and MHCLG. Expected we find an alternative approvals so still risk in resolution Spring 2020. route. reaching deadlines.
WP 8 Sensor and app All sensors procured and Green Unforeseen sensor Working with local development initial testing taken place. installation costs not authorities and LCRCA to Liverpool John Moores Installation of the sensors previously allocated to limit this spend were University has begun and engagement the work package. possible or find alternative £1,359,232.00 on the app development funding. Not expected to has started. delay the installation of sensors. WP 9 LCRCA Project Project manager appointed Green Programme manager In depth project management in May 2019 and other management dashboards LCRCA staffing resources allocated are available for wider team £310,500 to the project. The members to fully summative assessment understand each work procurement process has package. started. Scheme ready to claim from MHCLG. WP10 Bridgewater canal cycle This is sole TCF Scheme Green No risks or issues No mitigation needed. way nearly complete expected Halton Council for completion in Page 61 Page £289,000 (TCF only) December.
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