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London Borough of Sutton The Executive – 3 December 2007

Report of the Executive Head of Environmental Sustainability and Executive Head of Planning and Transport

Car Clubs – Council Usage

Ward Location: NA Author(s) and Contact Phone Number(s): Kathryn McLauchlan, Senior Transport Planner, 020 8770 4508 Area Served: Borough Wide Executive Councillor: Councillor Colin Hall, Deputy Leader and Executive Member for Environment, e-Gov and Efficiency

Report for Decision Summary This report seeks approval to undertake a 6-month trial, involving block booking car club cars for Council use. This report provides details on how the scheme would work and the associated costs of implementation. The cost of the scheme is estimated to be approximately £16,000. It is recommended that the Council fund £3,300 of this trial. This is the estimated saving that would be made from casual car users voluntarily agreeing to use car club cars rather than claiming mileage. The remainder of this trial can be funded through the Smarter Travel Sutton Project. The re-imbursement of casual car user mileage cost the Council £316,000 in 2006. The car club scheme will target casual car users with the view to collective discussions on phasing out casual car user mileage claims. By making car club cars available during work time, this will encourage staff to use more sustainable modes of transport for their journeys to and from work. Recommendations That The Executive agrees: 1. To undertake a 6-month trial involving block booking car club cars for Council use; 2. The funding source for car clubs; including £3,300 pump priming monies to assist in the reduction of future car mileage claims once the trial has been evaluated 3. That senior managers will promote the car club concept to staff 3. To delegate authority to the Executive Head of Planning, Transport & Highways, in consultation with the Executive Councillor for the Environment, to sign off the protocol for how the staff scheme will work. 1. Background 1.1 A successful car club scheme is important in achieving the objectives of the Smarter Travel Sutton Project. This initiative aims to reduce congestion in the Agenda Item 12 Page 2

London Borough of Sutton by up to 10% by March 2009 by encouraging people to consider the most appropriate mode of transport for their journey. In turn this project will make Sutton a cleaner, greener, and healthier place to live, work and study. 1.2 Research by Transport for London has shown each car club vehicle replaces an average of 20 privately owned cars. Therefore, car club cars have the potential to make a huge contribution to reducing congestion in the borough. 1.3 In October 2007, after drawn out contractual negotiations with that could not be resolved, it was decided to terminate their contract and appoint a new car club operator in the borough. 1.4 On 22 October 2007, the Council sent a letter of appointment to . This letter awarded Streetcar the contract for the provision of the car club service in the London Borough of Sutton for a period of 5 years from the 1 November 2007. 1.5 Streetcar intends to get a new car club up and running in the London Borough of Sutton as soon as possible. The following targets have been set for the expansion of the car club: 1. 14 cars by 1 April 2008 2. 40 cars by the 1 June 2009.

1.6 Streetcar has agreed to launch the car club scheme in the week commencing 26 November 2007 with 7 cars in the following locations: - Gibson Road, (Civic Offices) Sutton - Lenham Road, Sutton - Road, Sutton - Melbourne Road, Wallington - Frederick Road, Sutton - Gordon Road, Carshalton Beeches - The Crescent, Belmont. 1.7 If Council usage were guaranteed, Streetcar would be prepared to install cars at two additional locations: - Honeywood Walk, Carshalton - This would serve The Lodge, The Ecology Centre, Stonecourt and The Grove - Denmark Road, Carshalton – This would serve the Denmark Road Offices. 1.8 To ensure Streetcar’s success in the borough, the Council needs to fully support the car club scheme by encouraging staff to use car club cars instead of their own cars for work-related journeys. 1.9 The staff travel survey results indicated that over one fifth of staff required a car while at work. Of these staff, 58% lived within 5 miles, which is a distance that could be easily walked or cycled. Therefore, the car club scheme should form an important element of the Council’s workplace travel plan by reducing the need for staff to drive to and from work. 2. Proposed Procedure for Corporate Car Club Membership 2.1 Streetcar, in conjunction with the Council, is currently devising a protocol to establish exactly how the private/public car club scheme would work. 2.2 Streetcar would arrange for one car club car at each of the following locations to be block booked from 8am -6pm, Monday to Friday: Page 3 Agenda Item 12

- Gibson Road, Sutton - Honeywood Walk, Carshalton - Denmark Road, Carshalton 2.3 The Council would be charged £31 per car per day, which includes 30 free miles per day. After discussions, our insurance department has recommended that we also purchase additional insurance to reduce the cost of the excess to £0. This would cost £8/day per car. The Council would also need to purchase unique smartcards for members of staff taking part in the scheme. These would cost £10 per person. Assuming that 90 staff members sign up to the scheme, the 6-month trial would cost approximately £16,110. 2.4 To join, drivers must have held a full UK driving licence for at least 2 years, be aged between 19 and 75 and have no more than 3 points on their licence. If staff do not comply with these requirements, Streetcar may be able arrange membership. However, this may be subject to additional charges. 2.5 Staff will be able to book a car by telephoning Streetcar on 0845 644 8475. This telephone line is open from 7am -10pm, 7 days a week. 2.6 Staff will also be able to make use of the car club cars in their personal time. However, they will need to pay for any personal use. 3. Financial Implications 3.1 It is estimated that block booking three car club cars for a 6-month period is likely to cost in the region of £16,110. Smarter Travel Sutton will be able to fund £12,810 of this cost. However, this will diminish the budget available for promoting the car club further afield and does not represent a long-term solution. It is proposed to fund the remaining balance of £3,300 from revenue pump priming funding in the expectation that equivalent savings should be achieved in casual user car claims. 3.2 Ideally, the car club cars would be funded from Council budgets split equally between Groups. It should be noted that the some of the cost could be offset by reduced casual car user claims. Assuming that the car club cars would be used for 20 miles per day and using an average mileage allowance of 42p per mile, each car club car would save the Council £8.40/day which equates to £42 a week or £1,092 over a 6 month period. Given there will be 3 car club cars blocked booked for Council use, this equates to a possible £3,300 saving during the period of the trial across all users. 3.3 If the car club cars are used for Council business outside of the block booking times, each business unit will need to pick up the additional costs. 3.4 To ensure that the Council is receiving value for money, senior managers will need to encourage staff to use the car club cars rather than their own cars where their journey cannot be done by other more sustainable modes of transport. 3.5 This scheme will initially be marketed to casual car users with the view that casual car user mileage claims can be phased out. Other staff members will be able to use the scheme provided there is an available budget. 3.6 Once the 6-month trial has been completed, the usage of the car club cars will need to be analysed to determine if the scheme is cost effective and whether the Council would like to continue with this service. 3.7 For the duration of the 6-month trial casual car users will be encouraged to use the car club cars voluntarily rather than their own private cars for work trips. This will Agenda Item 12 Page 4

not require staff to vary the terms or conditions of their existing contracts of employment. 3.8 There will be collective discussions with a view to the phasing out of casual user mileage claims and other changes e.g. to essential user car allowance criteria and possible staff car park charges, as noted in the report on “ Sutton’s Workplace Travel Plan and Staff Travel Guide.” 4. Influence of the Council’s Core Values 4.1 Promoting car clubs and ensuring staff usage is in line with the Council being a leading green borough which hosts the largest travel demand pilot project in the world (i.e. Smarter Travel Sutton). 5. Contribution to the Achievement of the Council’s Policy Aims 5.1 Implementing car clubs will help to achieve environmental sustainability by contributing towards sustainable transport initiatives within the Borough. 6. Background Papers 6.1 None

Committee Rep 2006 V2.0