West Midlands franchise: franchise agreement, attachment B

784 Pages·2016·10.88 MB·English

Dated [INSERT DATE]

(1) The Secretary of State for Transport

(2) [INSERT NAME OF FRANCHISEE]

ITT DRAFT WEST MIDLANDS FRANCHISE
AGREEMENT

Page 1 of 784
TABLE OF CONTENTS

1. INTERPRETATION................................................................................... 17
2. AGREED DOCUMENTS............................................................................. 20
3. DEFINITIONS ........................................................................................ 21
4. COMMENCEMENT ..................................................................................123
5. DURATION OF THE FRANCHISE AGREEMENT ............................................125
6. GENERAL OBLIGATIONS ........................................................................126
7. ASSIGNMENT .......................................................................................126
8. CHANGE OF CONTROL AND FACILITATION FEE .........................................127
9. COMPLIANCE WITH LAWS ......................................................................128
10. CUMULATIVE RIGHTS AND REMEDIES .....................................................128
11. DISPUTE RESOLUTION PROCEDURE ........................................................129
12. NOTICES..............................................................................................131
13. SET-OFF ..............................................................................................132
14. MISCELLANEOUS PROVISIONS ...............................................................132
15. COMPETITION ......................................................................................135
16. ENTIRE AGREEMENT..............................................................................137
17. GOVERNING LAW AND JURISDICTION .....................................................137
SCHEDULE 1 PASSENGER SERVICE OBLIGATIONS .............................................140
SCHEDULE 1.1 FRANCHISE SERVICES AND SERVICE DEVELOPMENT ....................141
1. Franchise Services ................................................................................141
2. Restrictions relating to Franchise Services ................................................141
3. Restrictions on Closures of Railway Passenger Services or Railway
Facilities ..............................................................................................143
4. Subcontracting any Passenger Services ...................................................144
5. Station Services ....................................................................................145
6. Light Maintenance Services ....................................................................145
7. Ancillary Services ..................................................................................146
8. Royal Train...........................................................................................149
9. Train Service Requirement - Purpose and Responsibility ............................150
10. Train Plan ............................................................................................150
11. Consultation on Significant Alterations to the Timetable .............................151
12. Timetable Development Rights ...............................................................153
13. Certification and Notification by Franchisee of Exercising Timetable
Development Rights ..............................................................................156
14. Planning to meet Target Passenger Demand .............................................157
15. Capacity Mitigation Plan .........................................................................158
16. New or amended Train Service Requirement by the Secretary of State and
Franchisee Informed Opinion ..................................................................160
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17. Procedural Arrangements and Timescales ................................................161
18. Obligations in relation to other Train Operators .........................................162
19. Provisions relating to Access Agreements and Property Leases ...................163
20. The Timetable and Network Rail's Working Timetable ................................164
SCHEDULE 1.2 OPERATING OBLIGATIONS ........................................................165
1. Daily Operating Obligations ....................................................................165
2. Timetabling and Train Planning Compliance Investigation ...........................165
3. Timetable changes proposed by Network Rail ...........................................167
4. Timetable changes proposed by the Franchisee.........................................168
5. Timetable changes requested by the Secretary of State .............................169
6. Obligations of the Franchisee in the event of disruption to railway
passenger services ................................................................................169
7. Obligation to use all reasonable endeavours under this Schedule 1.2 ...........170
SCHEDULE 1.3 NOT USED ...............................................................................174
SCHEDULE 1.4 PASSENGER FACING OBLIGATIONS ............................................175
1. Publishing the Timetable ........................................................................175
2. Communicating Late Timetable Changes ..................................................177
3. Fares Selling Restrictions .......................................................................177
4. Passenger's Charter ..............................................................................180
5. End to End Journeys and Cycles ..............................................................182
6. Statutory Notices ..................................................................................182
7. Train and Station Cleaning .....................................................................182
8. Publication of Performance Data .............................................................183
9. Publication of Complaints and Faults Handling Data ...................................184
SCHEDULE 1.5 INFORMATION ABOUT PASSENGERS ...........................................186
1. Passenger Numbers Information .............................................................186
2. Manual Passenger Counts ......................................................................188
3. Technology for Obtaining the Information referred to in paragraph 1.2 ........188
4. CRM Data.............................................................................................189
5. Yield Management Data .........................................................................190
6. Personal Data - General Provisions ..........................................................190
7. Rail Passenger Counts Database .............................................................192
8. Intellectual Property Rights and General Provisions ...................................195
SCHEDULE 1.6 THE ROLLING STOCK ................................................................198
1. Purpose ...............................................................................................198
2. The Composition of the Train Fleet ..........................................................198
3. Changes to the Train Fleet .....................................................................199
4. Rolling Stock Testing and Commissioning .................................................200
5. Controlled Emission Toilets .....................................................................200
6. Baby Changing Facilities ........................................................................201
7. Metered Train Operator Status ................................................................201
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APPENDIX 1 TO SCHEDULE 1.6 THE COMPOSITION OF THE TRAIN FLEET .............202
SCHEDULE 1.7 STATIONS ...............................................................................205
1. Station Asset Management .....................................................................205
2. Grey Assets ..........................................................................................209
3. Station Social and Commercial Development Plan .....................................210
4. Consultations .......................................................................................211
5. NOT USED ...........................................................................................211
6. Security at Stations ...............................................................................211
7. Information about Station Improvement Measures ....................................213
8. Not used ..............................................................................................213
9. Station Investment ...............................................................................213
APPENDIX 1 TO SCHEDULE 1.7 LIST OF STATIONS AND CAR PARKS WITH
SECURE STATIONS ACCREDITATION AND SECURE CAR PARKS
ACCREDITATION ...................................................................................215
APPENDIX 2 TO SCHEDULE 1.7 INFORMATION ABOUT STATION IMPROVEMENT
MEASURES ...........................................................................................218
APPENDIX 3 TO SCHEDULE 1.7 NOT USED ........................................................219
APPENDIX 4 TO SCHEDULE 1.7 NOT USED ........................................................220
SCHEDULE 2 ASSETS, LEASES, OTHER FRANCHISEES AND SCHEMES ..................221
SCHEDULE 2.1 ASSET VESTING AND TRANSFER ................................................222
1. Not Used..............................................................................................222
2. Vesting of Property Leases during the Franchise Term ...............................222
SCHEDULE 2.2 SECURITY OF ACCESS AGREEMENTS, ROLLING STOCK LEASES,
STATION AND DEPOT LEASES ................................................................224
1. Novation of Access Agreements during the Franchise Term ........................224
2. Rolling Stock Related Contracts and Insurance Arrangements .....................225
3. Cascaded Rolling Stock and Delayed Cascade Mitigation Plan......................226
4. Assignment of Property Leases during the Franchise Term .........................229
5. Station and Depot Leases.......................................................................230
6. Station Subleases .................................................................................231
SCHEDULE 2.3 OTHER FRANCHISEES ...............................................................232
1. Other Franchisees .................................................................................232
SCHEDULE 2.4 NOT USED ...............................................................................233
SCHEDULE 2.5 TRANSPORT, TRAVEL AND OTHER SCHEMES................................234
1. Local Authority Concessionary Travel Schemes .........................................234
2. Multi-modal Fares Schemes ....................................................................235
3. Discount Fare Schemes..........................................................................237
4. Inter-Operator Schemes ........................................................................238
APPENDIX 1 TO SCHEDULE 2.5 LIST OF TRANSPORT, TRAVEL AND OTHER
SCHEMES .............................................................................................239
SCHEDULE 3 .................................................................................................241
PART 1 TO SCHEDULE 3 ..................................................................................242
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PART 3 TO SCHEDULE 3 ..................................................................................246
SCHEDULE 4 ACCESSIBILITY AND INCLUSIVITY ................................................252
1. Relationship with other obligations relating to persons with disabilities ........253
2. Physical Alterations and Accessibility of Stations .......................................253
3. Dealing with Claims relating to Stations ...................................................257
4. Specific additional obligations relating to persons with disabilities ...............258
APPENDIX 1 TO SCHEDULE 4 MINOR WORKS ....................................................260
APPENDIX 2 TO SCHEDULE 4 ACCESSIBLE TRANSPORT ARRANGEMENTS .............261
SCHEDULE 5 FARES AND SMART TICKETING .....................................................262
SCHEDULE 5.1 PURPOSE, STRUCTURE AND CONSTRUCTION ...............................263
1. Purpose of Schedule 5 ...........................................................................263
2. Structure of Schedule 5 .........................................................................264
3. Construction .........................................................................................264
SCHEDULE 5.2 FRANCHISEE'S OBLIGATION TO CREATE FARES ...........................267
1. Creation of London Commuter Fares, West Midlands Commuter Fares and
Protected Fares.....................................................................................267
2. Restrictions on Creation of Fares .............................................................267
SCHEDULE 5.3 ALLOCATION OF FARES TO FARES BASKETS ................................268
1. Allocation of Fares to Fares Baskets ........................................................268
2. Designation of Non Fares Basket Fares ....................................................268
SCHEDULE 5.4 REGULATION OF FARES BASKET VALUES ....................................270
1. Value of Fares Basket not to exceed Regulated Value ................................270
2. Value...................................................................................................270
3. Projected Revenue ................................................................................270
4. Regulated Value....................................................................................270
SCHEDULE 5.5 REGULATION OF INDIVIDUAL FARES ..........................................272
1. Price not to exceed Regulated Price .........................................................272
2. Regulated Price.....................................................................................272
3. Compulsory Inter-available Flows............................................................273
SCHEDULE 5.6 EXCEEDING THE REGULATED VALUE OR REGULATED PRICE ..........274
1. Exceeding the Regulated Value ...............................................................274
2. Exceeding the Regulated Price ................................................................275
SCHEDULE 5.7 CHANGES TO FARES AND FARES REGULATION ............................277
1. Changes to Fares Baskets ......................................................................277
2. Changes to the 2015 Nominal Ticket Sales ...............................................278
3. Changes to the Reference Revenue, Gross Revenue, 2015 Nominal Ticket
Sales and/or 2015 Ticket Revenue ..........................................................279
4. Changes to Prices .................................................................................280
5. Changes to Fares Regulation ..................................................................280
6. Changes to Compulsory Inter-available Flows ...........................................280
7. Change of Lead Operator/Major Flow Operator .........................................281
8. Changes to Fares Documents .................................................................281
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SCHEDULE 5.8 FARES REGULATION INFORMATION AND MONITORING .................282
1. Information ..........................................................................................282
2. Monitoring............................................................................................282
SCHEDULE 5.9 SMART TICKETING ...................................................................283
1. Smart Ticketing ....................................................................................283
SCHEDULE 6 FRANCHISE SPECIFIC OBLIGATIONS AND COMMITTED
OBLIGATIONS ......................................................................................286
SCHEDULE 6.1 FRANCHISE SPECIFIC OBLIGATIONS ..........................................287
1. Digital Railway Programme.....................................................................287
2 Branding WCSBU ..................................................................................288
4. Potential Devolution of West Midlands Separable Business Unit Passenger
Services to WMR ...................................................................................293
5. Service Option Schemes ........................................................................296
6. Not used. .............................................................................................299
7. Rail/Bus Interchange .............................................................................299
8. Franchisee obligations regarding NRPS dissatisfaction plans .......................302
9 Transferring Stations .............................................................................303
10 Enabling Fund.......................................................................................304
11 Fleet Refurbishment ..............................................................................306
12 Not used ..............................................................................................307
13 Requirement to lease and operate certain trains .......................................307
14 Co-operation with third party promoted franchise schemes ........................307
15 TSR Enhancement Services ....................................................................309
16 Development of proposals for service enhancements .................................312
17 Boxing Day Services ..............................................................................314
18 Infrastructure Projects ...........................................................................315
19 Euston Passenger Services .....................................................................316
20 Railway Heritage ...................................................................................316
21 The Depots, Stabling and Ancillary Works Fund.........................................317
SCHEDULE 6.2 COMMITTED OBLIGATIONS........................................................321
PART 1 - COMMITTED OBLIGATIONS ................................................................321
PART 2 - SPECIAL TERMS RELATED TO COMMITTED OBLIGATIONS ......................322
1. Continuation of Availability .....................................................................322
2. Expenditure Commitments .....................................................................322
3. Liaison and Co-Operation .......................................................................323
4. Nature of Commitment ..........................................................................324
5. Review of Compliance ............................................................................324
6. Remedy for Late Completion or Non-Delivery of Committed Obligations .......324
7. Specimen Schemes ...............................................................................324
8. Third Party Consents, Agreement and Conditions ......................................325
9. Definition of "all reasonable endeavours" or "reasonable endeavours" .........326
10. Designation of Assets comprised in COs as Primary Franchise Assets ...........326
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SCHEDULE 6.3 NOT USED ...............................................................................327
SCHEDULE 7 PERFORMANCE BENCHMARKS .......................................................328
SCHEDULE 7.1 OPERATIONAL PERFORMANCE ....................................................329
1. Definitions, Changes to Benchmarks and Annual Benchmarks and Notice
of Performance Results ..........................................................................329
2. Reporting Requirements ........................................................................340
PART A – NON-FINANCIAL ENFORCEMENT REGIME ............................................341
3. West Coast Separable Business Unit Cancellation Calculation: Value of A ....341
4. West Coast Separable Business Unit Cancellation Calculations during the
Initial Reporting Stage ...........................................................................341
5. West Coast Separable Business Unit Cancellation Calculation during the
Breach Reporting Stage .........................................................................342
6. West Coast Separable Business Unit Cancellation Calculations during the
Subsequent Reporting Stage ..................................................................342
7. West Midlands Separable Business Unit Cancellation Calculation: Value of
A ........................................................................................................343
8. West Midlands Separable Business Unit Cancellation Calculations during
the Initial Reporting Stage .....................................................................344
9. West Midlands Separable Business Unit Cancellation Calculation during the
Breach Reporting Stage .........................................................................344
9A. West Midlands Separable Business Unit Cancellation Calculations during
the Subsequent Reporting Stage .............................................................345
10. TOC Minute Delay Calculations during the Initial Reporting Stage ................345
11. TOC Minute Delay Calculations during the Breach Reporting Stage ..............346
12. TOC Minute Delay Calculations during the Subsequent Reporting Stage .......346
13. NOT USED. ..........................................................................................347
14. West Coast Separable Business Unit Short Formations ...............................347
15. West Midlands Separable Business Unit Short Formations ..........................350
16. Calculations..........................................................................................352
17. Service Recovery Plans and Force Majeure ...............................................352
18. Consequences for Poor Performance – Benchmarks ...................................353
PART B – FINANCIAL REGIME ..........................................................................354
19. Annual Cancellations Calculations............................................................354
20. Annual TOC Minute Delay Calculations .....................................................354
21. Annual Short Formation Calculations .......................................................355
22. Performance Sum Payments – Annual Benchmarks and Annual Measures ....355
23. Determination of the Annual Benchmarks and Annual Measures for
Franchisee Years that are less than thirteen Reporting Periods but are six
(6) Reporting Periods or more ................................................................370
24. Determination of the Actual CaSL Performance Level and the Actual PPM
Performance Level for Franchisee Years that are less than 13 Reporting
Periods but are six (6) Reporting Periods or more. ....................................377
25. Network Rail Claim ................................................................................378
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26. Consequences for Poor Performance – Annual Benchmarks and Annual
Measures .............................................................................................378
27. Payments made by Secretary of State .....................................................380
28. NOT USED. ..........................................................................................380
29. Payments in respect of the Final Franchisee Year ......................................380
PART C – MISCELLANEOUS PROVISIONS ..........................................................381
30. Allocation of Disputed Cancellations/Disputed Partial Cancellations ..............381
31. Allocation of Disputed Minutes Delay .......................................................382
APPENDIX 1 TO SCHEDULE 7.1 CANCELLATIONS BENCHMARKS AND ANNUAL
CANCELLATIONS BENCHMARKS ..............................................................384
PART 1A – CANCELLATIONS BENCHMARK TABLE (WEST COAST SEPARABLE
BUSINESS UNIT) ..................................................................................384
PART 1B – CANCELLATIONS BENCHMARK TABLE................................................393
(WEST MIDLANDS SEPARABLE BUSINESS UNIT) ................................................393
PART 2 - ANNUAL CANCELLATIONS BENCHMARK TABLE .....................................402
PART 3 - ANNUAL CANCELLATIONS PAYMENT TABLE ..........................................403
APPENDIX 2 TO SCHEDULE 7.1 TOC MINUTE DELAY BENCHMARKS AND ANNUAL
TOC MINUTE DELAY BENCHMARKS ..........................................................404
PART 1 - TOC MINUTE DELAY BENCHMARK TABLE ..............................................404
PART 2 - ANNUAL TOC MINUTE DELAY BENCHMARK TABLE .................................413
PART 3 - ANNUAL TOC MINUTE DELAY PAYMENT TABLE ......................................414
APPENDIX 3 TO SCHEDULE 7.1 SHORT FORMATION BENCHMARKS AND ANNUAL
SHORT FORMATION BENCHMARKS ..........................................................415
PART 1A - SHORT FORMATION BENCHMARK TABLE ............................................415
(WEST COAST SEPARABLE BUSINESS UNIT) .....................................................415
PART 1B - SHORT FORMATION BENCHMARK TABLE ............................................424
(WEST MIDLANDS SEPARABLE BUSINESS UNIT) ................................................424
PART 2 - ANNUAL SHORT FORMATION BENCHMARK TABLE .................................433
PART 3 - ANNUAL SHORT FORMATION PAYMENT TABLE ......................................434
APPENDIX 4 TO SCHEDULE 7.1 CASL MEASURE .................................................435
PART 1 - ANNUAL CASL TABLE .........................................................................435
PART 2 - ANNUAL CASL PAYMENT TABLE ..........................................................436
APPENDIX 5 TO SCHEDULE 7.1 PPM MEASURE...................................................437
PART 1 - ANNUAL PPM TABLE ..........................................................................437
PART 2 - ANNUAL PPM PAYMENT TABLE ............................................................438
SCHEDULE 7.2 NATIONAL RAIL PASSENGER SURVEYS, CUSTOMER REPORT AND
CCIF SCHEME .......................................................................................439
2. Conduct of National Rail Passenger Surveys .............................................439
3. NRPS Benchmarks.................................................................................440
4. Performance Review ..............................................................................441
5. Required Improvement and NRPS Action Plans .........................................441
6. Additional Expenditure ...........................................................................442
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7. Payments on Termination ......................................................................443
8. Consultations .......................................................................................443
9. Customer and Stakeholder Engagement Strategy......................................443
10. Customer Report...................................................................................444
11. CCIF Scheme........................................................................................445
12. Customer Service and Satisfaction Data ...................................................447
APPENDIX 1 TO SCHEDULE 7.2 NRPS BENCHMARK TABLE ...................................450
SCHEDULE 7.3 WEST MIDLANDS FRANCHISE SERVICE QUALITY REGIME .............453
1. Introduction .........................................................................................453
2. The Service Quality Management Arrangements .......................................453
3. Franchisee Service Quality Inspections ....................................................455
4. Mystery Shopper Inspections ..................................................................457
5. Independent Service Quality Audits/ SoS Audits .......................................457
6. Requirements for access in relation to SoS Service Quality Inspections,
SoS Audits and witnessing Independent Service Quality Audits and Service
Quality Inspections ...............................................................................461
7. Maintenance of Records .........................................................................462
8. Reporting Arrangements ........................................................................462
9. Calculation of the Service Quality Payments .............................................466
10. Requirements for Service Quality Re-inspections and other consequences
of performance falling below the SQR Benchmark .....................................470
11. Variations to the Service Quality Regime ..................................................472
APPENDIX 1 TO SCHEDULE 7.3 SERVICE QUALITY SCHEDULES ..........................474
PART 1 – STATIONS .......................................................................................474
PART 2 – TRAINS ...........................................................................................486
PART 3 – CUSTOMER SERVICE.........................................................................492
PART 3 – CUSTOMER SERVICE.........................................................................492
APPENDIX 2 TO SCHEDULE 7.3 SERVICE QUALITY AREAS /SQR
BENCHMARKS/SERVICE QUALITY INDICATORS/WEIGHTINGS ....................497
PART 1 – STATIONS .......................................................................................497
PART 2 – TRAINS ...........................................................................................499
PART 3 – CUSTOMER SERVICE.........................................................................501
SCHEDULE 8.1 FRANCHISE PAYMENTS .............................................................503
1. Franchise Payments ..............................................................................503
2. Payment of Franchise Payments..............................................................507
3. Interest ...............................................................................................508
4. Disputes under Schedule 8 .....................................................................508
5. Industrial Action ...................................................................................509
6. No Double Recovery ..............................................................................509
7. Force Majeure.......................................................................................509
APPENDIX 1 TO SCHEDULE 8.1 ANNUAL FRANCHISE PAYMENTS ..........................510
SCHEDULE 8.2 PROFIT SHARE MECHANISM ......................................................514
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1. Profit Share ..........................................................................................514
2. Additional Compensation or Settlement Payments .....................................518
3. Relevant Profit Report ...........................................................................520
4. Payment of Profit Share and Determination by the Secretary of State ..........521
APPENDIX 1 TO SCHEDULE 8.2 PROFIT SHARE THRESHOLDS ..............................522
APPENDIX 2 TO SCHEDULE 8.2 COMPONENTS OF AFA AND DFR ..........................525
SCHEDULE 8.3 TRACK ACCESS ADJUSTMENTS AND STATION CHARGE
ADJUSTMENTS......................................................................................527
1. Track Access Adjustments ......................................................................527
2. Station Charge Adjustment ....................................................................528
SCHEDULE 8.4 GDP ADJUSTMENT PAYMENTS ....................................................531
1. Purpose and Application of Schedule .......................................................531
2. Definitions ...........................................................................................531
3. GDP Adjustment Payment ......................................................................532
4. GDP Adjustment Payments (GDPA) .........................................................534
5. GDP Reconciliation Payments (GDPR and GDPR ) .....................................535
1 2
6. Final Adjustments/Reconciliations ...........................................................537
APPENDIX 1 TO SCHEDULE 8.4 DFT RW .........................................................539
GDP
APPENDIX 2 TO SCHEDULE 8.4 ADJUSTED TARGET GDP INDEX ...........................541
SCHEDULE 8.5 CLE ADJUSTMENT PAYMENTS .....................................................542
1. Purpose and Application of Schedule .......................................................542
2. Definitions ...........................................................................................542
3. CLE Adjustment Payment .......................................................................543
4. CLE Adjustment Payments (CLEA) ...........................................................545
5. CLE Reconciliation Payment (CLER) .........................................................547
6. Final Adjustments/Reconciliations ...........................................................548
APPENDIX 1 TO SCHEDULE 8.5 DFT RW .........................................................549
CLE
APPENDIX 2 TO SCHEDULE 8.5 ADJUSTED TARGET CLE INDEX ............................550
SCHEDULE 9 CHANGES AND VARIATIONS .........................................................551
SCHEDULE 9.1 FINANCIAL AND OTHER CONSEQUENCES OF CHANGE ..................552
1. Purpose and Application of Schedule .......................................................552
2. Timescales ...........................................................................................553
3. How any adjustments to Franchise Payments will be established .................553
4. How Model Changes and/or Revised Inputs will be established....................554
5. Changes to Benchmarks and/or Annual Benchmarks .................................554
6. Run of the Financial Model following agreement or determination of the
Revised Inputs and Model Changes .........................................................555
7. Certification or Audit of the New Results ..................................................556
8. Costs of Audit .......................................................................................557
9. Restatement of Annual Franchise Payment Components and/or
Benchmarks and/or Annual Benchmarks and/or Profit Share Components ....557
10. Estimated Revisions ..............................................................................560
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