Part Two Agenda Item Presenter Procurement Approach Fleet Strategy Assets Integrated Fares & Ticketing Marketing & Customer Information Performance Management General Contract Approach Wrap up and next steps Andrew Cooper, Project Manager PTOM Rhona Hewitt, Manager Bus & Ferry Operations Rhona Hewitt Paul Kos, Manager Public Transport Planning Paul Kos Jonathon Gear, Financial Advisor Samantha Gain, Senior Legal Advisor Andrew Cooper
Procurement Approach Andrew Cooper Project Manager PTOM
Public Transport Operating Model Performance based contracts Partnering relationships Gross cost contracts with incentives Mix of tendered contracts and direct appointments Part of the suite of improvements within GW s PT Transformation Programme
Background and objectives Legislated through amendments to the Land Transport Management Act 2003 (LTMA) Objectives are to: Grow patronage Grow commerciality Grow confidence of efficient pricing Grow confidence of competitive market
Partnering Contract Objectives Quality of operations Value for money and customer satisfaction Smooth transition To new contracts, new operators, new service patterns and new fleet Partnership and transparency Increasing patronage Particularly at peak travel times Improving commerciality
Principles Maximise competition Light touch Value for money short and long term Price / quality balance Risk / reward balance Informed by industry
Unit Design Services allocated to operational units Route based or geographic Each unit is a separate operating contract 16 bus units, 1 rail, 1 ferry Regional Public Transport Plan amendment Bus units some direct appointed, balance to be tendered
Units
Units Available for Tender Unit Estimated PVR Estimated in-service km ( 000) 1. North-South Spine 62 1,471 4. Khandallah 25 876 7. Brooklyn/Owhiro 28 766 9. Lower Hutt 46 1,814 10. Upper Hutt 34 1,185 11. Wainuiomata 21 886 13. Porirua 30 1,129 14. Kapiti 19 820 15. Wairarapa 6 310 Total tendered 271 9,257
Group Bids / Bundling Maximum of 4 units in any bundle Maximum of 3 bundles per operator Must also provide stand-alone price for all units tendered Each unit will be contracted individually
Tender Process Single stage Request for Tender (RFT) All 9 units tendered at the same time Activity Timeframes Industry feedback received September 2015 RFT released April 2016 RFT due Evaluation and appointment 12 weeks from RFT release 12 weeks Contract award October 2016 DAU price negotiation October 2016 Transition 12-15 months Contract commencement October 2017 January 2018
Evaluation Price Quality Method Market concentration will be a consideration
Transition to PTOM Contracts Transition agreements with incumbents Transition plan as part of tender responses Joint transition planning
Fleet Strategy Rhona Hewitt Manager Bus and Ferry Operations
Overview Wellington region is characterised by a relatively old bus fleet Over 50% to be replaced in short term Requirement minimum 50% new fleet for each unit Requirements for Urban Buses All new buses Euro V or better All existing buses Euro III or better Regional fleet: maximum age 20 years, average age 10 years Trolley bus retirement by 30 June 2017
Fleet upgrade outcomes Emissions profile Age profile Current 2018 Current Average age: 13.6 years 2018 Average age: 5 years
High Capacity Buses De-congesting Golden Mile is critical for speed and reliability Move more people on fewer buses Double deckers and higher capacity single decks Investigating options for tunnels and clearances Road weight limits Ideal = 120/hr
High Capacity Buses
Transition to Zero Emissions Ambition for a fully electric fleet in the longer term How do we get there? Hybrid
Specification RUB VQS Outcomes focused Expectations Unit by unit fleet composition right sizing the fleet
Assets Rhona Hewitt Manager Bus and Ferry Operations
Fleet Operators to acquire, own & operate fleet Up to 15 month transition period Minimum of 50% new fleet required for each unit Options over specialist fleet at end of term
Depots No assistance in securing depots in upcoming tender Land access was a consideration in the unit and tender design Up to 15 month transition period Options over new depots at end of term
Interchanges and layovers Most are owned by third parties Open access to all Assistance in securing on-street layover space To be governed by Standard Operating Procedures & Protocols
Lambton Interchange
Staff No assistance in upcoming tender Up to 15 month transition period
Integrated Fares & Ticketing Paul Kos - Manager Public Transport Planning
What is IFT Integrated fares Simplifying the fare structure Rationalising fare products Consistent suite of fares across the network Enabling transfers Electronic ticketing: Improving customer experience Improved data collection A key enabler of integrated fares
Strategic Context RPTP - what we are trying to achieve Convenient and attractive option for customers Increased patronage Value for $ More seamless travel experience across modes Simpler, more integrated fares and ticketing
IFT - part of a broader programme of transformation
GW Policy on Integrated Fares Maintain existing 14-zone fare structure Simplify and standardise fare products across modes & services Remove transfer penalties Provide discounts to reward regular users through consideration of fare capping Provide off-peak discounts to spread peak demand
Electronic Ticketing Aiming for a network-wide solution with a single payment method Likely to be stored value card but also considering complementary payment methods
Phased Transition Bus contracts awarded New contracts start Electronic Ticketing (ETS) goes live Ultimate IFT solution Post-award Transition Phase Pre ETS Transition Phase ETS Goes Live Post ETS Transition Solution Ultimate IFT State Fares and tickets rationalised Operator provides ticketing solution GWRC provides ticketing solution
Considerations for Transition Transition strategy being developed by GWRC Aim to rationalise some products prior to ETS go live Details of implementation, including rationalisation of products, will be finalised with operators
Considerations for Transition Changes to Wellington City bus network and contracting environment require some passengers to transfer Retain existing free transfers (eg Hutt Valley) Free transfers across the zone-based network likely to be introduced at, or prior to, ETS go live date Need for an operator provided interim ticketing system
Next Steps Develop fares transition strategy and implementation plan Confirm approach to integrated ticketing and procurement Finalise investigation phase and business case Develop ticketing system specifications
Marketing and Customer Information Paul Kos -Manager Public Transport Planning
Strategic Context Regional Public Transport Plan Customer focused approach A single consistent brand (currently Metlink) to attract new customers and clearly integrate all elements into a single multi-modal system Customer information to attract new customers and encourage existing customers to expand their use of PT
Branding Considerations A single consistent brand currently Metlink Bringing the Metlink brand to the forefront of all assets, including: Livery Interior Tickets Uniforms
Metlink Concepts
Bus Interior Concept
Ticketing Concepts
Hi-vis vest and jackets concept
Marketing & Information GWRC responsible for all customer service communications channels Metlink service centre Metlink website social media (ie twitter), apps and widgets GWRC responsible for customer complaints management, supported by operators
Advertising GWRC to control on-bus advertising Exterior will be back of bus only
Performance Management Jonathon Gear - Financial Advisor (PTOM)
Payment Model Base service fee Fleet payment Timetable variation rates PVR variation Indexation Price reset
Financial Incentive Mechanism (FIM) Patronage based Projection formula used to establish patronage projection for forthcoming year Payment/deduction based on patronage projection verses actual patronage No cap or collar Applies from year 2 onwards
Reliability KPI Threshold 99.5% Achievement A bus has been allocated within the RTI system (or an alternative provided by GWRC) Running board/rti systems are updated correctly An allocated bus starts the trip at the origin and passes all timing points required by the schedule An allocated bus starts each trip at its origin between 59 seconds and + 29 minutes 59 seconds after the trips scheduled start time The bus reaches its destination within +29 minutes and 59 seconds of its scheduled trip time The correct bus type is used 0.2% of monthly contract fees abated for every 0.1% below the threshold
Punctuality KPI Threshold 95% Achievement Trips which start at their origin and pass all timing points within -59 seconds to + 4 minutes 59 seconds of the schedule 1% of monthly contract fees abated for every 1% below the threshold Abatement capped at 10% of service fees
Performance Payment Pool of $1.5M available annually across all bus units Indicators for forthcoming year set by annual business planning Up to three per unit Indicators may vary by unit Units run by a single operator may be grouped Performance Indicators (PIs) to cover customer, operations and fleet
League Table A tool to incentivise bus operators Commerciality ratio To be published annually under PTOM Use for determining contract negotiation or tender at end of term
General Contract Approach Samantha Gain - Senior Legal Advisor
Contract Approach Approach to development of contract terms Gross contracts, with incentives
Contract Structure Regional Between GW and all operators Partnering Operator A Partnering Operator B Partnering Operator C Unit Unit Unit Unit Unit Unit Unit Unit Unit
Key features of contract Contract term Exclusive right to operate Scope of services Passenger Service Licence Security for performance Performance management Vehicle Quality Standards Asset ownership (vehicles and depots) Cure plan process Transition out Transition in
Contract Management Approach Annual business planning Reporting Meetings Plans
Questions and answers
Next Steps Council Approvals Procurement strategy Finalise RFT/ contract Tender briefing Industry briefing and oneon-ones PTOM Information Pack Draft VQS RPTP variation Draft contracts Industry feedback Industry feedback Industry feedback Industry feedback Industry feedback Release RFT Industry responds August 2015 Sept 2015 Oct 2015 Nov Jan 2015 April 2016 July 2016
Ongoing questions ptombus@gw.govt.nz robert@buchananlaw.co.nz
Thank you