A report by the Interim Director of Children’s Services outlined the transfer of the Integrated Transport Unit (ITU) from the Department of Adult Social Services (DASS) to Children and Young People’s Department (CYPD) and the Transfer of Technical Services (TS) Transport Team to CYPD to form an Integrated Transport Unit.

The report also informed the Cabinet of the results of the tendering exercise for private provider transport for vulnerable adults and requested the approval of the award of the individual contracts to the recommended tenderers. These contracts would follow the temporary contracts, awarded in March 2011 and operating from April to July 2011 and ensure continuation of service. The new contracts were proposed to operate from 1 August 2011 to July 2012, with a one year optional extension. The contract had been scrutinised and all detail, including the proposed awarding of contracts, had been agreed by the Corporate Procurement Unit.

The Cabinet noted that the transfer of Council Transport functions required budgets of £2.8m from Technical Services and £5.7m from DASS to be transferred to CYPD.  The new transport contracts would cost £563,113 per annum. The reduction in fleet operating costs was estimated to be £223,000.  It was noted that there was a net additional revenue cost of £340,000 which was not provided within the revenue budget and would need to be met from balances, with a provision for growth in future years.  Comparing this contract (£563,113 per annum) with the current temporary arrangement (£554,753 per annum) there was an increase in cost of £8,360. This increase was related to a current provider not submitting a tender for one route which was priced substantially higher by those tendering.

The overall position regarding transport would be the subject of further reports to future Cabinet meetings.

RESOLVED:  That

(1)  the transfer of DASS and TS Transport functions to CYPD creating an Integrated Transport Unit be noted.

(2)  the transfer of gross budgets of £2.8m from Technical Services and £5.7m from DASS to CYPD be noted;

(3)  approval be given for the recommended tenders set out in Appendix 1 to the report to come into effect on the 1 August 2011;

(4)  the additional re-provision cost of £340,000 as set out above be funded from balances in the current year and provision be made for growth in future years;

(5)  Cabinet notes the continued failure to achieve real savings on an integrated transport policy within the Council, despite repeated urgings to Chief Officers to address this issue, and savings agreed within previous budgets;

(6)  Cabinet recognises the complexity of the issues concerned, and the vulnerability of some of the clients who receive transport from the Council, and therefore agrees to the growth sum of £340,000;

(7)  Cabinet points out, however, that this Council is still facing a budget gap for 2012/13 of £21m and that any such growth will have to be counterbalanced by savings elsewhere as we seek to reduce this gap; and

(8)  Cabinet recognises that responsibility for Transport has just been moved into the Children and Young People’s Department and urges the Interim Director to do everything possible to contain additional pressures within this budget and take measures to make the provision of Transport more efficient and cost effective.