19/10

DECISION UNDER DELEGATED POWERS

DECISION CANNOT BE TAKEN BEFORE TUESDAY, 20 APRIL 2010

Title HIGHWAYS & TRANSPORT FEES AND CHARGES 2010/11

Report Author REPORT TO THE CABINET MEMBER FOR ENVIRONMENT & TRANSPORT

PURPOSE

1. To recommend increases in fees and charges by more than inflation of 1.5% and to introduce new fees and charges with effect from 1 April 2010.

OUTCOMES

2. A decision whether or not to increase specific fees and charges by more than inflation.

BACKGROUND

3. The constitution states that it is the responsibility of Directors and Heads of Services to maximise income through charging and trading as well as any other sources of additional funding.

4. Fees and charges must be applied consistently to all and be in accordance with Council Policies. These should be reviewed annually to ensure they remain current and take into account proper inflationary increases and other new charges.

5. Where an increase in fees or charges by more than the inflationary rate is thought appropriate authority must be sought from the cabinet portfolio holder to bring those increases into effect

STRATEGIC CONTEXT

6. This report proposes increases of existing or introduction of new charges in the following areas that align with the Council’s Value for Money strategy and contribute to the Corporate Theme of Delvering Better Services:

Fees for lost or replacement bus passes

7. Currently the charges made for the replacement for all types of bus pass, whether they be scholars term tickets or free passes for senior citizens or people with disability, are set at £5. It is proposed to increase this charge to £10.

8. In the case of scholar’s term tickets, the fee for provision of a replacement for a lost or damaged pass has not been increased for at least twenty years, despite the fact that these passes are valuable items with a unit cost to the Council of over £500 incurred in their provision. Currently, around 300 replacement passes generating £1,500 income are issued annually.

9. By law, no charge may be made for a first application for a national free bus pass. Fees for replacement of lost or damaged free bus passes for senior citizens and people with disability have been set by the Council at £5 since the inception of the national free fares scheme in April 2006. Currently around 500 replacement passes, generating £2500 income, are issued annually.

Coastal Fees and Charges

10. There is a range of fees and charges associated with Newport Harbour and the Coastal Visitors Centre which are detailed in Appendix 1 together with proposed increase for 2010/11.

11. In many cases the proposed charge increase associated with activities at Newport Harbour is below the inflationary rate, although in several the effect of rounding of the charge increase causes it to rise by more than 1.5% and consequently requiring a formal authority to bring those into effect.

12. Charges relating to coastal visitor centre courses are proposed to be increased and rounded upwards to the nearest 50 pence. This results in a proportionally greater percentage increase although the scale of the charges is small in absolute terms.

Highway Maintenance Fees and Charges

13. There are a series of activities undertaken on the highway which are commonly charged for by other authorities although hitherto have not been charged on the island. These are detailed in appendix 2 together with proposed charging rates for these. The introduction of these charges would bring the charging regime more inline with other authorities in the region.

14. It is also proposed to increase the scaffold licence application fee from £23 per week to £30 per week for scaffolds erected on the highway which is more in line with the charges made by other authorities.

Wightbus Vehicle Hire Charges

15. Wightbus makes vehicles available for private hire for schools and community use. The Council’s budget strategy assumed a 7.5% increase in those hire charges although subsequently launched a 2 for 1 deal on vehicle hire which significantly undercuts Wightbus’ rates. To maintain a viable business model in the current market conditions it would seem prudent to defer any increase in private hire charges until market forces change or charges are next routinely reviewed as part of the budget strategy for 2011-12.

Tourist Parking Permits

16. The recent budget decision provided for the withdrawal of all concessionary parking rates. Subsequent representations have been received from accommodation providers to the effect that their publicity material trails the tourist parking permit and that reservations have been made on the basis of the availability of such a permit. In that light it would seem prudent to defer withdrawal of the tourist permit until the end of the summer season although to increase the cost of those to mitigate against the effect of any financial loss. Proposed increases are detailed in Appendix 3.

Long Stay Parking Permit

17. The recently approved budget strategy ratified by full council presumed replacing the previous business permit with a long stay permit valid in our off street car parks and increasing the cost from £481 to £500. However, this increase was not formalised in the amended resolution tabled at full council. There is now a need to formalise the authority to introduce that long stay parking permit at a cost of £500.

CONSULTATION

Fees for lost or replacement bus passes

18. There has been no formal consultation with user groups on this proposed increase. However, a survey of 173 local authorities published in January 2009 regarding replacement free bus pass fees, revealed that 40% charged £5, 35% charged more than £5, and in some cases up to £20, for a replacement pass. Increasing the charge as proposed would not be out of step with the approach taken by many authorities nationally

Coastal Fees and Charges

19. Comprehensive discussions have taken place with the Newport Harbour Master to assess the likely impact of these proposals and it is felt the proposed charges are fair and will not deter patronage.

Highway Maintenance Fees and Charges

20. None

Wightbus Vehicle Hire Charges

21. Whilst there has been no formal consultation the increased charged rates have been discussed with a user sample and compared with those offered by the commercial sector. This indicated a likelihood that users would choose to use a different operator if charges were substantially increased.

Tourist Parking Permits

22. Consultation with accommodation providers indicate that their publicity has trailed the availability of tourist parking permits for the coming season. It is felt that withdrawal of this concession for tourists only in the lead up to the season would undermine the tourist economy.

Long Stay Parking Permit

23. There has been no formal consultation on replacing the previous business permit with a long stay permit valid in all of our off street car parks and increasing the cost from £481 to £500 although comparisons have been made with the cost of similar permits in neighbouring authorities.

24. Some local authorities allow people the ability to pay for parking in a single nominated car park and the table below indicates a range of charges in place elsewhere. This kind of discount is not universally available.

Local Authority Price £ (per annum)

Bristol City Council 1848 Southampton 1664 Eastleigh Borough Council 1120 Bournemouth Borough Council 1089 Hart District Council 1050 Salisbury 1045 Portsmouth 1040 West 900 East Hants District Council 783 Horsham 800

FINANCIAL/BUDGET IMPLICATIONS

25. The overall effect of this package of increases to fees and charges which also provides for the retention of the tourist parking permit for the summer season is a net increase in income in the order of £2,000 as detailed below, based on existing usage. All figures are net of VAT.

Fees for lost or replacement bus passes

26. The increased charge for a replacement pass from £5 to £10 will generate an additional £4,000 annually, with the annual total for all replacement passes rising from £4,000 to £8,000, of which scholars passes represent £3,000 income and free bus passes £5,000 income.

Coastal Fees and Charges

27. Additional income generated from these proposed increases in fees and charges is estimated to be less than £1,000. Prudently an increase in income of £200 is assumed.

Highway Maintenance Fees and Charges

28. The introduction of the range of new fees and charges detailed in Appendix 2 is estimated to generate an additional income of £32,000.

29. The increase of scaffold license fees from £23 per week to £30 per week would generate an additional income of £2,800 assuming 200 licences are issued per annum for a maximum of two weeks at a time.

Wightbus Vehicle Hire Charges

30. Deferring the proposed increase in Wightbus vehicle hire charges would reduce the budget strategy income assumption by £7,000. The subsequent changes in the market place have established a significant risk that this strategy would undermine market share such that the anticipated increase in income would not be achieved.

Tourist Parking Permits

31. Retaining tourist parking permits for tourists only would reduce the net anticipated increase in income assumption in the budget strategy through ticket machines by in the order of £50,000 although this would be off set by the proposed increases in charges and reduce the impact to £30,000.

Long Stay Parking Permit

32. The effect of replacing the previous business permit with a long stay permit valid in our off street car parks and increasing the cost from £481 to £500 has already been assumed in the council’s budget strategy and consequently will have no further impact.

LEGAL IMPLICATIONS

Fees for lost or replacement bus passes

33. The Greater London Authority Act 1999 and the Transport Act 2000 (as modified by the Concessionary Bus Travel Act 2007); The Travel Concessions (Eligibility) Act 2002 and The Travel Concessions (Eligibility) () Order 2010 need to be considered in relation to national free bus passes. The Concessionary Bus Travel Act 2007 ('the 2007 Act') provides for a statutory guarantee of free off-peak travel for eligible older and disabled people on local bus services anywhere in England ('the national concession') Section 111 of the Local Government Act 1972 can be used in relation to the increase in fees for replacement or lost of damaged free bus passes.

34. The concessionary fares pass for the statutory minimum is to be issued free of charge. The 2008 guidance suggests that the obligation to issue a pass free of charge would be limited to the first pass only. However, if a person applies for a replacement it is doubtful whether the authority would have the right to refuse to issue one without good reason or to charge more than a sum representing roughly the cost of producing it.

Coastal Fees and Charges

35. The Council has the right to charge for use of Newport Harbour under section 26(2) of the Harbours Act 1964 being the right to ‘demand, take and recover such ship, passenger and goods dues as they think fit.’

36. Under section 40 of the 1964 Act, ‘a harbour authority shall have the power to make the use of services and facilities provided by them at a harbour…which ...they are… managing subject to such terms and conditions as they think fit except with respect to charges as to which their discretion is limited by statutory provision (whether by specifying or providing for specifying, charges to be made, or fixing or providing for fixing charges, or otherwise.’

37. Further, under article 6 of the 1968 HRO, the Council may demand a reasonable charge for the use of ‘any moorings, buoys or like apparatus or convenience provided be the Corporation under this article or moored tom land owned or leased by the Corporation in or adjoining the harbour.’

38. The Council is therefore able to amend the fees and charges associated with Newport Harbour.

Highways Maintenance fees and charges

39. The Highways Act 1980 and Local Government (Transport) Regulations 1998 and New Roads and Street Works Act (NRASWA) 1991 have been considered.

Charge for the deposit of building materials on public highway

40. Under The Local Authorities (Transport Charges) Regulations 1998 the Council has the Power to impose charges in relation to the consideration of an application for deposit of building materials on a public highway to consent temporarily to the deposit of building materials, rubbish or other things in a street that is a highway and for consideration of a request in respect of a highway maintainable at the public expense to execute such works as are specified in the request for constructing a vehicle crossing over a footway or verge in that highway pursuant to section 184 of the 1980 Act. Such charges are at the local Authority’s discretion but the council shall have regard to the cost to itself of dealing with the matters in question.

• Licence for temporary heavy weight crossing or carting

• Charge for confirmation of the status of a vehicle crossing

• Inspection of vehicle crossing in order to advise a prospective purchaser

• Charge for commercial businesses to use Newport and Town Squares

• Licence for a crane on a public Highway

• Retain 50% of the fee currently paid as a deposit for a vehicle crossing

41. The Council has the power to allow charges under the Local Government and Housing Act 1989 in respect of anything which is done by any relevant authority or by any relevant authority of a prescribed description and which is prescribed or falls within a prescribed description in respect of which there is no power or duty to impose a charge apart from the regulations, and which is not done in the course of exercising an excepted function.

42. The regulations may be made as regards services rendered, documents issued, or any other thing done by an authority (whether in pursuance of a power or a duty); and may provide that the amount of a charge (if imposed) is to be at the authority’s discretion or to be at its discretion subject to a maximum.

43. Further under section 111 of the Local Government Act 1972, a Local Authority shall have power to do anything ( whether or not involving the expenditure, borrowing or lending of money or the acquisition of any property or right) which is calculated to facilitate, or is conducive or incidental to, the discharge of any of their functions.

Wightbus Vehicle Hire Charges

44. This report does not proposes variation of the charges and the existing situation will prevail

Tourist Parking Permits Long Stay Parking Permit

45. The variation of parking charges is made under s35C and 46A of the Road Traffic Act 1984. The Local Authorities’ Traffic Orders ( Procedure) ( England and Wales) Regulations 1996 requires publicity of variations in the local press and where we consider necessary, in the parking areas where the changes have effect. A further notice would give 21 days notice to be given of the variation prior to it being implemented. Notices will need to be re-advertised.

OPTIONS

46. Option 1 - Increase fees and charges and introduce new charges as set out in paragraphs 7,14,17 and in the appendices to this report, defer increases to Wightbus hire charges, but do not retain the tourist permit for the summer season although introduce new charges as set out in Appendix 2. This would realise a net increase in income in the order of £32,000

47. Option 2 - Do not increase fees and charges by more than 1.5%, or retain the tourist permit for the summer season, although provide a long stay parking permit, defer increase to Wightbus hire charges and introduce new charges as set out in Appendix 2. This would realise a net increase in income in the order of £25,000

48. Option 3 - Increase fees and charges and introduce new charges as set out in paragraphs 7,14,17 and in the appendices to this report, defer increases in Wightbus hire charges and retain the tourist parking permit, for tourists only, for the summer season. This would realise a net increase in income in the order of £2,000

49. Option 4 - Do not increase fees and charges by more than 1.5% or introduce new charges as set out on the attached appendices, although provide a long stay parking permit, defer increases in Wightbus hire charges and withdraw the tourist permit with effect from 1st April 2010. This would reduce the income assumptions in the budget strategy by £7,000.

50. Option 5 - Increase fees and charges as set out in paragraphs 7,14, 17 and in appendices 1 and 3 to this report and retain the tourist permit, for tourists only, for the summer season, defer increases to Wightbus hire charges although do not introduce new charges detailed in appendix 2. This would result in a net reduction in income of £30,000 compared with the budget strategy

RISK MANAGEMENT

51. These options have an increasing risk that income will not be maximised through appropriate fee levels as is required of Directors and Heads of Service in the constitution

52. Options 1, 2 and 4 have a risk that the withdrawal of the tourist parking permit in advance of the summer season will change the basis of the island’s publicity material for the summer season. This could have a negative impact on accommodation bookings although the scale of that is difficult to quantify.

53. Option 3 resolves that risk and mitigates the financial cost of retaining the tourist parking permit, for tourists only, for the summer season though the other proposed changes to fees and charges resulting in a net increase in income in the order of £2,000.

54. Option 4 resolves the risk associated with retaining the tourist permit, for tourists only, for the summer season although does not mitigate the financial cost

RECOMMENDATION

55. Option 3 - Increase fees and charges and introduce new charges as set out in paragraphs 7, 14, 17 and in the appendices to this report, defer increases in Wightbus hire charges and retain the tourist parking permit, for tourists only, for the summer season. This would realise a net increase in income in the order of £2,000

APPENDICES ATTACHED

56. APPENDIX 1 - Coastal Fees and Charges 57. APPENDIX 2 - Highway Maintenance Fees and Charges 58. APPENDIX 3 - Tourist Parking Permits Charges

BACKGROUND PAPERS

59. None

Contact Point: Peter Hayward, Head of Transport and Environment  01983 821000. e-mail [email protected]

STUART LOVE COUNCILLOR EDWARD GILES Strategic Director - Economy and Environment Cabinet Member for Environment and Transport

Decision Signed Date