Agenda item

Report of Corporate Director of Growth and City Development

Chris Carter, Head of Transport Strategy, presented the report and stated the following:

 i.  Nottingham’s e-scooter hire scheme commenced in October 2020 following a joint procurement in partnership with Derby City Council. Initially planned for a 12-month duration involving 30 local authorities, the trial period has been extended each year by the Department for Transport (DfT);

ii.  the DfT have indicated the legalisation of all e-scooters will be forthcoming however, delays have been experienced with securing a Bill slot to take the proposed legalisation through Parliament;

iii.  Nottingham’s e-scooter scheme is one of the most well used in the country with an average of 3,000 rides per day and is particularly popular with young people, students and other low-income groups without access to a car. The fleet has been expanded from an initial roll out of 250 scooters to 1,300 scooters (operating license limit) at the current time. Issues with pavement riding and poor parking are being addressed through the implementation of innovative technology, education/communications, and infrastructure;

iv.  the existing contract for the city’s e-scooter scheme is due to expire on the 31 May 2024. Therefore, there is a requirement to retender for an e-scooter operator to continue the scheme post-May 2024;

v.  the trial has recently been extended to 31 May 2026 by the DfT as work on legalisation of all e-scooters continues. A longer-term contract with a duration of three to five years will be sought to cover the extended trial period and a transition period whilst legislation is being passed.

Resolved to

(1)  approve undertaking a procurement for a concessionaire to operate Nottingham’s public hire e-scooter scheme for a duration of three to five years;

(2)  delegate authority to the Corporate Director of Growth and City Development to award the contract to the successful provider following the tender process.

Reasons for recommendations

 i.  Retendering for an operator will secure commitment to continue the ongoing public e-scooter hire trial in Nottingham. It is proposed that the new contract will cover any extension period set out by the DfT as well as the follow-on period where legislation and long-term arrangements are put in place.

ii.  Continuation of the e-scooter hire scheme assists in meeting a number of strategic objectives. These include supporting access to work, education and other services. Providing an affordable personal transport option for short journeys. A clean and green transport mode, that supports the Carbon Neutral 2028 plan.

iii.  The council will be seeking a revenue share from the operator to offset costs associated with managing and overseeing the contract including planning of supporting infrastructure and ongoing maintenance with any surplus to support Council revenue savings. Any supporting infrastructure, such as parking corals, will continue to be funded by local transport grant funding.

Other options considered

Two other options were considered – i. do nothing and ii. seek a short-term contract to cover trial period only.

 i.  Do nothing. Procurement have advised that it is not possible to extend the contract duration (that is due to expire on 31 May 2024) with the current e-scooter operator. This is due to the scheme hitting the £4.5m revenue threshold over the three and a half years the trial will have been active.

ii.  Seek a short-term contract to cover any extended trial period. A short-term contract was considered but feedback from other authorities and operators is that best value could not be achieved from this option. A contract only covering the duration of the trial (expiring 31 May 2026) would not attract investment from an operator or provide the council with levers to ensure high performance.