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Ilfracombe Dotto Report By Open NORTH DEVON COUNCIL REPORT TO: STRATEGY & RESOURCES DATE: 6th January 2020 TOPIC: ILFRACOMBE DOTTO REPORT BY: ECONOMIC DEVELOPMENT OFFICER 1 INTRODUCTION 1.1 This report seeks to secure a future way forward for the Ilfracombe Dotto train. 1.2 An open procurement process failed to secure an operator for the train for the 2019 season. 1.3 Trying to work with Ilfracombe Town Council to enable it to run the service proved challenging. 1.4 Without an operator, the condition of the Dotto is likely to deteriorate quickly, so a way forward for it needs to be agreed. 2 RECOMMENDATIONS 2.1 That S&R agree to lease the Dotto to Ilfracombe Town Council and delegate power to the Chief Executive to agree the terms of the lease in consultation with the Lead Member for Economy and failing any agreement to delegate power to the Chief executive to dispose of the Dotto with receipts being earmarked for capital projects within Ilfracombe 3 REASONS FOR RECOMMENDATIONS 3.1 To secure the future of the Dotto within Ilfracombe or to secure its disposal before its condition and value deteriorates 4 REPORT 4.1 The Ilfracombe Dotto train was purchased in 2013 with grant funding from Leader 4. The train service has been tendered twice since then, on both occasions Filers were the only bidder, and therefore have run the service since the train arrived. Filers now no longer want to run the service. It is more of a sideline for their business, and they do not always have the resources to focus on it. They also object to having to pay the business rates on the container which is used for storing the Dotto. All of the Dotto expenses are the responsibility of the operator, but there is no charge made for the use of the train, and any profit goes directly to the operator. 4.2 A procurement exercise in Feb/March ’19 received no responses. The train has therefore been sitting in the container for most of the year. The town council used it briefly at the end of the season to provide a free service for visitors just to get it out and about. 4.3 The town council could not agree a way forward for running the Dotto, despite agreement from town council members to do so. It is possible that Ilfracombe Town Council (ITC) may be able to get organised for next season, but will need a fair amount of input from NDC in order to achieve this. 4.4 There has been little or no interest from operators in the meantime. A brief conversation with industry experts suggests that Dotto services work in larger towns and cities where there are larger visitor numbers to make it viable, but in towns such as Ilfracombe, it would always be a ‘hobby’ business. 4.5 The supplier that imported the Dotto train on our behalf have valued the train at around £110/115k. 4.6 Therefore, the options are: 1. Retender the opportunity in early 2020 and hope for a more positive response. 2. Retender the opportunity in early 2020, with the Council agreeing to pay the business rates on the container (in the region of £980) and hope for a more positive response having addressed the issues of the previous operator. 3. Put resource in to helping the Town Council to operate the service in the hope that it may succeed this time. 4. Lease the Dotto to the Town Council for a certain period for it to run as it sees fit. A clause would need to be added to prevent the Dotto being left unused in the container for any length of time. 5. Sell the Dotto and ring-fence the funds for other Ilfracombe projects (e.g. implementing the seafront masterplan etc.) 6. Offer the Dotto to other towns within the District (Barnstaple, South Molton etc.) to run a service. 7. Another option to be suggested by this committee None of these options are guaranteed to be implemented quickly, or will necessarily provide a long term solution, but guidance is needed in order to prevent the deterioration of this Council asset. 4.7 It is recommended that negotiations take place with Ilfracombe Town Council over a lease of the Dotto to it in order for it to run the service as it sees fit. The exact terms will be agreed between the two Councils but it is felt that this option best secures the future of the Dotto in Ilfracombe. 4.8 However in order to plan for the eventuality of this not being achieved, it is also recommend that the Dotto be sold to achieve the best capital receipt which can then be re-invested in capital improvement projects in Ilfracombe. 5 RESOURCE IMPLICATIONS 5.1 Financial There would be no financial cost to the procurement exercise There would be no financial cost to assisting ITC The potential capital receipt from the sale of the Dotto would be in the region of £115/110k less fees. The cost to North Devon Council of the Dotto whilst it is not under contract is roughly £2,000 (insurance, business rates, depreciation etc.) 5.2 Staff Procurement would be carried out by the Economic Development Officer (EDO) with help from Parks, Leisure and Culture, and input from Legal to draw up contracts, leases, and easements. Assisting ITC would involve a fair amount of input from the EDO with input from Legal to draw up contracts, leases, and easements. The sale of the Dotto would involve input from the EDO, Parks, Leisure and Culture, and Legal. 6 EQUALITIES ASSESSMENT 6.1 (Please detail if there are/are not any equalities implications anticipated as a result of this report. If so, please complete the Equality Impact Assessment Summary form available on Insite and email to the Corporate and Community Services Team at [email protected] ). N/A 7 CONSTITUTIONAL CONTEXT Article or Annexe and paragraph Referred or delegated power? Part 3, Annexe 1, paragraph (d) Delegated 8 STATEMENT OF CONFIDENTIALITY 8.1 This report contains no confidential information or exempt information under the provisions of Schedule 12A of 1972 Act. 9 BACKGROUND PAPERS 9.1 The background papers are available for inspection and kept by the author of the report. 10 STATEMENT OF INTERNAL ADVICE 10.1 The author (below) confirms that advice has been taken from all appropriate Councillors and officers. Executive Member: Cllr Malcolm Prowse Author: V. Harrison Date: 12th December 2019 .
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