Programme and funding manual

Transcription

1 Programme and funding manual Land Transport New Zealand Third edition, August 2006 Includes amendment 1, November Cover photos: left to right: Stagecoach Wellington, Transit New Zealand, Auckland City Council, Christchurch City Council, Dean Zillwood ISBN

2

3 Page 1-i Contents Chapter 1 Introduction Overview Purpose and structure of this manual Government strategies Legislation Planning and programming land transport activities Role of Land Transport NZ and approved organisations The national land transport account Funding for land transport activities Land transport programme agreements Schedule of key dates 1-25 Chapter 2 Funding categories Overview Funding category structure Activity classes 1 and 2 Maintenance and operation of roads Activity classes 3 and 4 Renewal of roads Activity classes 5 and 6 Improvement of roads Activity class 8 Use of the land transport system Activity class 9 Passenger transport Activity class 10 Administration Activity class 11 Road policing Activity class 12 Research, education and training Activity class 13 Programme management Project cost components 2-63

4 Page 1-ii Contents, continued Chapter 3 Financial assistance Overview Local roads maintenance and renewal Establishment of base rates Local road improvements State highways Special purpose roads Emergency reinstatement Use of the land transport system Passenger transport Administration Multi-party projects 3-28 Chapter 4 Specific determinations Overview Area-wide traffic control systems Betterment Boundary roads and bridges Bridges and other structures Carriageways Cattle stops Closed-circuit television Cycling facilities Off-street parking areas Passenger transport data collection and verification Passenger transport models Pedestrian facilities 4-20

5 Page 1-iii Contents, continued 4.14 Protection planting Quality assurance requirements Rail crossings Revoked or declared state highways Road assessment and maintenance management systems Road network transportation studies Road safety audits Service lanes Services State highway/local road connections Stock crossings Stock truck effluent disposal facilities Stopping roads and bridges Stormwater drainage Subdivisional roads Traffic signals Traffic signs and pavement markings Transport demand management, rail freight and sea freight Uneconomic roading facilities Vegetation control Walking and cycling strategies 4-55

6 Page 1-iv Contents, continued Chapter 5 Programme development Overview Requirements of the Land Transport Management Act General programme preparation requirements Road maintenance and renewal programme Passenger transport programme Improvement projects Community focused activities Regional recommendations on R and C funds Recommendations on the ALTP Recommendations on education and training LTP online 5-73 Chapter 6 Funding allocation process Overview The six stage process Profiling of activities Assessment of NLTP activities by work category Assessment factors Assessment and allocation for NZ Police activities Assessment for research, education and training activities 6-36

7 Page 1-v Contents, continued Chapter 7 Claims and programme review Overview Claims Monthly programme reviews Delegated block allocation transfers Request for approval of category 2 activities End-of-year reconciliation 7-17 Chapter 8 Procurement procedures Overview Requirement for procurement procedures Payments exempt from procurement procedures Business units Minor and ancillary works In-house professional services Community focused activities Research, education and training 8-12 Chapter 9 Reporting Overview Mid-year roading achievement reports Annual roading achievement reports Passenger transport achievement Annual property purchase reports Evaluation and reporting on community focused activities 9-17

8 Page 1-vi Contents, continued Appendix A Consultation and communication process A-1 Appendix B Definition of terms B-1 Index Index-1

9 Page 1-1 Chapter 1 Introduction 1.1 Overview Introduction This chapter sets out the purpose of the manual, the strategic and legislative context within which Land Transport NZ allocates resources and undertakes its functions, the relative roles of Land Transport NZ, approved organisations and other partners, and a general description of planning, programming and funding for land transport activities. In this chapter This chapter contains the following sections: Section Page 1.1 Overview Purpose and structure of this manual Government strategies Legislation Planning and programming land transport activities Role of Land Transport NZ and approved organisations The National land transport account Funding for land transport activities Land transport programme agreements Schedule of key dates 1-25

10 Page Purpose and structure of this manual Purpose This document provides: a summary of the strategic and policy context in which Land Transport NZ will allocate resources and undertake its functions an explanation of the funding allocation process including, in particular: the information requirements for approved organisations to submit recommended activities to Land Transport NZ for inclusion in the NLTP how Land Transport NZ will assist and advise approved organisations to formulate activities that meet the statutory requirements placed on them when they prepare recommended activities for inclusion in the NLTP the methods to assess, prioritise, programme and approve activities for funding through the NLTP, the Authority s Land Transport Programme (ALTP), and research, education and training activities the arrangements Land Transport NZ will use for measuring and monitoring the outcomes from the NLTP the arrangements for co-ordinating funding between Land Transport NZ and its funding partners in local government and the private sector. Manual structure This manual is structured as follows: Chapter 1 sets out the strategic and legislative context within which Land Transport NZ allocates resources and undertakes its functions, the relative roles of Land Transport NZ and approved organisations and other partners, and a general description of planning, programming and funding for land transport activities. Chapter 2 defines work categories for programming and funding and how these are grouped into activities and activity classes. Chapter 3 defines the financial assistance provided by Land Transport NZ Chapter 4 gives specific rulings made by Land Transport NZ relevant to programming and funding of activities. Chapter 5 provides the guidelines for developing the NLTP. Chapter 6 describes Land Transport NZ s funding allocation process. Chapter 7 describes the procedures for claims and review of the NLTP.

11 Page 1-3 Chapter 8 details the statutory requirement for procurement procedures, identifies exempt works and services, and sets out the conditions under which approved organisations may undertake work. Chapter 9 describes reporting requirements. Land Transport NZ s consultation and communication process is described in appendix A. Definitions of terms used in this manual are given in appendix B. Amendments and distribution Copies Funding policy amendments to this manual shall be by resolution of the Land Transport NZ Board. Such amendments, and those that relate to procedural matters, will be distributed free of charge to holders of this manual who are registered with Land Transport NZ. Copies of this manual are available at a cost of $70 each; inclusive of GST, postage, and handling from Land Transport NZ. Phone: order@landtransport.govt.nz Electronic access Contacts and feedback This manual is also available on Land Transport NZ s website: Your Land Transport NZ regional partnership manager should be contacted in the first instance for advice and assistance on the policies and procedures covered by this manual. Contact details are available on Land Transport NZ s website: Comments and feedback on this manual should be sent to: Murray Riley NLTP Manager Partnerships and Programmes Group Land Transport NZ PO Box 2840 Wellington Telephone: Fax: murray.riley@landtransport.govt.nz

12 Page Government strategies Introduction There are several government strategies that provide direction on how national and local government agencies and organisations should work together and provide outputs to achieve outcomes relating to land transport. Each of these strategies needs to be considered in developing an LTP. The new direction for land transport involves: a strategic, sustainable approach with less emphasis on the cost-benefit return from each individual investment decision developing a range of alternatives and options to achieve economic, social and environmental outcomes integrating all modes of transport (motorised and non-motorised) and making better use of existing infrastructure addressing both the supply side (the need for additional transport system capacity) and the demand side (reducing pressure on available capacity) responding appropriately to community aspirations and those affected by potential transport investments. New Zealand transport strategy The multi-modal New Zealand transport strategy (NZTS) was issued by government in December 2002, with the vision that: By 2010 New Zealand will have an affordable, integrated, safe, responsive and sustainable transport system. The NZTS sets out the key government objectives for transport as: assisting economic development assisting safety and personal security improving access and mobility protecting and promoting public health ensuring environmental sustainability. Road safety to 2010 strategy This strategy sets out the government s goals for road safety, which are by 2010 to reduce: road deaths per year to no more than 300 hospitalisations to no more than 4,500. The Road safety to 2010 strategy underpins the NZTS in the area of road safety. The strategy is one of six strategies that come under the umbrella of the New Zealand injury prevention strategy.

13 Page Government strategies, continued National rail strategy The government s National rail strategy to 2015 was published in May The strategy sets out the government s rail policy objectives and priorities for action over the 10 years to Government rail sector agencies are responsible for developing detailed programmes and strategies to achieve the objectives. The strategy focuses on growth in two key areas: freight, especially bulk and containerised; and urban passenger transport. National energy efficiency and conservation strategy The purpose of the National energy efficiency and conservation strategy (NEECS) is to promote energy efficiency, energy conservation and renewable energy and to move New Zealand towards a sustainable energy future. The strategy, launched in September 2001, has two specific targets: a 20 percent improvement in energy efficiency by 2012 increasing our supply of renewable energy by a further 22 percent by Regional land transport strategies, land transport programmes and the national land transport programme must take the NEECS into account when they are being prepared. New Zealand injury prevention strategy The purpose of the New Zealand injury prevention strategy (NZIPS) is to establish a framework for the injury prevention activities of government agencies, local government, non-government organisations, communities and individuals. The strategy sets out the government's vision for a New Zealand where more people can live free of injury while continuing to lead active and challenging lives. The strategy will assist New Zealand to better focus its injury prevention efforts and resources by providing a clear direction to the range of agencies, organisations and communities that have either a direct involvement, or a contributory role to play, in injury prevention activity in New Zealand. The strategy is the umbrella strategy for six independent but linked strategies covering the area of drowning and near drowning, prevention of falls, assault, suicide, workplace injury, and road safety. National walking and cycling strategy The Getting there on foot, by cycle strategy to advance walking and cycling in New Zealand transport was issued by government in February The strategy aims to ensure supportive walking and cycling environments in communities; that safety is improved for pedestrians and cyclists; and that people walk and cycle more as part of their day-to-day transport mix.

14 Page Government strategies, continued NZ Police road policing strategy NZ Police s Road policing strategy sets out the strategy and priorities for road policing. Considerable changes have occurred in road policing since the strategy was published and these will be taken into account in the updated strategy currently being developed. The New Zealand disability strategy The New Zealand disability strategy was published in April 2001 by the Ministry of Health and is available from the Office of Disability Issues, Ministry of Social Development. The strategy sets a framework to ensure that government departments and other government agencies consider disabled people before making decisions. The strategy sits alongside other government strategies and programmes such as the Positive ageing strategy, the New Zealand health strategy and the Reevaluation of human rights protections in New Zealand. The strategy includes 15 objectives, underpinned by detailed actions. One principle relevant to land transport is that community-based services ensure that disabled people are supported to live in their own communities. New Zealand urban design protocol The New Zealand urban design protocol has been prepared by the Ministry for the Environment in conjunction with an urban design advisory group. The protocol is a key part of the government's Sustainable development programme of action and the Urban affairs portfolio. The protocol is a voluntary commitment to specific urban design initiatives by signatory organisations, which include central and local government, the property sector, design professionals, professional institutes and other groups. Good urban design can facilitate safe and sustainable means of travel for neighbourhoods and communities.

15 Page Legislation Introduction The following Acts establish the legislative framework for land transport management, planning and funding. Land Transport Management Act The Land Transport Management Act 2003 (LTMA) and the Land Transport Management Amendment Act 2004 provide the legislative framework to give effect to the NZTS. The overall purpose of the LTMA is to: Contribute to the aim of achieving an integrated, safe, responsive and sustainable land transport system. The LTMA: provides an integrated approach to land transport funding and management which takes into account the views of affected communities improves social and environmental responsibility in land transport funding, planning and management broadens the focus of Land Transport NZ and Transit NZ ensures options and alternatives are given full consideration at an early stage in the development of programmes improves long-term planning and investment in land transport ensures that land transport funding is allocated in an efficient and effective manner improves the flexibility of land transport funding. The requirements of the LTMA in relation to the preparation and adoption of land transport programmes, the ALTP, the NLTP and the approval of activities in the NLTP, are set out in section 5.2. The LTMA also defines the role of Land Transport New Zealand. Land Transport Act The Land Transport Act 1998 sets out the responsibilities of participants in the land transport system and provides for the development of a national land transport strategy (NLTS) and regional land transport strategies (RLTS) and establishment of regional land transport committees (with the function of preparing regional land transport strategies for approval by the regional council). Requirements for regional land transport strategies are set out in Part 13 of the Act. Regional land transport strategies must include any regional passenger transport plan.

16 Page Legislation, continued Transit New Zealand Act The Transit New Zealand Act 1989 deals with the powers and duties of Ministers, Transit NZ and other road controlling authorities, and the provisions relating to roads, access ways and service lanes, state highways, motorways and limited access roads. Transport Services Licensing Act The Transport Services Licensing Act 1989 covers: licensing of transport services registration of road, rail and other passenger services. The Act provides for regional councils, or territorial authorities with the functions, duties and powers of a regional council, to prepare a regional passenger transport plan specifying the passenger services the regional council or territorial authority proposes to be provided in its region or district, both generally and in respect of the transport disadvantaged. A contracted service is a specified service in respect of which a regional council has contracted to pay for the supply of that service. Local authorities can only fund contracted services. Local Government Act 2002 The Local Government Act 2002 (LGA): states the purpose of local government provides a framework and powers for local authorities to decide which activities they undertake and the manner in which they will undertake them promotes the accountability of local authorities to their communities, and provides for local authorities to play a broad role in promoting the social, economic, environmental, and cultural well-being of their communities, taking a sustainable development approach. The stated purpose of local government is: (a) to enable democratic local decision-making and action by, and on behalf of, communities; and (b) to promote the social, economic, environmental, and cultural well-being of communities, in the present and for the future. Requirements for planning, decision-making, and accountability are set out in part 6 of the LGA. Requirements for identifying and reporting on community outcomes are set out in sections 91 and 92 of the LGA. Provisions relating to Long-term council community plans (LTCCP) and annual plans are given in sections 93 and 95 respectively of the LGA. Schedule 10 covers preparation of asset management plans.

17 Page Legislation, continued Local Government Act 1974 Part 21 of the Local Government Act 1974 sets out, among other things, provisions for local roads, limited access roads, private roads, private ways, ferries, drains and road safety. Railways Act The Railways Act 2005 promotes the safety of rail operations by: stating the duty of rail participants and other persons to ensure safety, including licensing of rail participants authorising the Minister to make rules relating to rail activity providing for rail safety systems providing for protection of the rail corridor, interaction of rail and road, and construction and maintenance of railways.

18 Page Planning and programming land transport activities Introduction Developing and implementing land transport activities involves a number of levels of planning and programming as briefly described in this section. Regional land transport strategies Regional land transport strategies (RLTS) are the highest level of land transport planning at the local level. The strategies are prepared by regional land transport committees in all regions for approval by regional councils and unitary authorities. The strategies are the mechanism for the sector to look broadly, and critically at current and future regional conditions; to identify issues, problems and opportunities; and to agree on the strategy for the long-term. Regional land transport strategies must be compatible with relevant national strategies, policies and plans. Land Transport NZ must be consulted when regional land transport strategies are prepared and Land Transport NZ is represented on each regional land transport committee. Every regional council is required to make a copy of their approved regional land transport strategy available for inspection by the public in the area to which the strategy applies. Long-term council community plans Long-term council community plans (LTCCP) provide an integrated picture of all things that a local authority does (both financial and non financial) over a 10- year period to contribute to its agreed community outcomes. The LTCCP has a focus on public consultation and replaces the annual plan in this area. Land Transport NZ expects that most proposed land transport activities, particularly community focused activities, will be identified and consulted on as part of the LTCCP process. Annual plans Every local authority prepares and adopts an annual plan for each financial year setting out the funding for proposed activities. The annual plan is contained within the LTCCP when that plan is prepared.

19 Page Planning and programming land transport activities, continued Land transport programmes [LTMA s12] Land transport programmes (LTP) are developed annually by regional councils, territorial authorities, Transit NZ and other approved organisations and submitted to Land Transport NZ for funding consideration. The LTP details activities for which payment is sought from Land Transport NZ and any activities recommended for inclusion in Land Transport NZ s LTP (see below). When preparing an LTP, an approved organisation must consult the stakeholders listed in the LTMA, which includes affected communities and Maori, unless the required consultation has already been undertaken in the course of preparing the local authority s LTCCP or annual plan. The detailed LTMA requirements relating to LTPs are set out in section 5.2. Use of LTCCP or annual plan in place of an LTP [LTMA s15(5)] The LTMA provides for local authorities to use their LTCCP or annual plan as a substitute for separately preparing and consulting on an LTP, provided that section 12 requirements are met. Land Transport NZ anticipates a significant proportion of local authorities will use this provision for preparation of and consultation on their LTPs.

20 Page Planning and programming land transport activities, continued Land Transport NZ s land transport programme [LTMA s12a] Land Transport NZ also annually prepares a land transport programme (defined in the LTMA as the authority s land transport programme (ALTP)) containing activities to be delivered by the NZ Police. This programme is required to be approved by the Minister of Transport. The requirements of the LTMA with regards to the ALTP are described in section 5.2 National land transport programme [LTMA s19] The National land transport programme (NLTP) is Land Transport NZ s funding programme developed from LTPs submitted by approved organisations together with the ALTP approved by the Minister. The NLTP is the central government planning and funding mechanism for all land transport activities including road maintenance, renewal and improvement, passenger transport, community focused land transport activities, rail freight and sea freight, walking and cycling, transport demand management, and activities delivered by NZ Police. The requirements of the LTMA with regards to the NLTP are described in section 5.2. Research, education and training programme [LTMA s21] Land Transport NZ annually prepares a programme of research, education and training activities, separate from the NLTP development process. Requests for funding for such activities are made separately from the LTP s prepared by approved organisations because funding requests are not restricted to approved organisations. The research, education and training programme includes: research on all aspects of land transport support for education and training to build capability and capacity in the land transport sector nationally managed school education and training related to safe and sustainable use of the land transport system nationally managed advertising other nationally managed promotion (eg, for walking and cycling). The maximum amount of the research, education and training programme is subject to approval by the Minister of Transport. Approved research, education and training activities are shown in the NLTP. Funding for these activities is not restricted to approved organisations.

21 Page Planning and programming land transport activities, continued Land transport issues reports Each year (around July) Land Transport NZ will produce land transport issues reports for each geographical area throughout New Zealand. These reports will provide information on the performance of the land transport system including safety, efficiency and sustainability. Comparisons will be provided of the performance of each area with others with similar characteristics and with national trends. The information in these reports should be used as an input to identify issues to be addressed by LTPs and approved organisation s recommendations on the ALTP. Regional action plans Regional action plans are completed by regional councils, Auckland Regional Transport Authority (ARTA), Transit NZ and regional road safety organisations. The plans address implementation of the high level objectives set out in regional land transport strategies. Road safety action plans Road safety action plans (RSAPs) are plans developed at the local level to address road safety issues in the area. They are developed in a collaborative process led by territorial authorities and involving Land Transport New Zealand, NZ Police, Transit NZ, regional authorities and other representatives. In some locations health agencies and the Accident Compensation Corporation (ACC) are also involved. The spatial areas covered by RSAPs are determined by the partner s perspectives. The RSAPs are a partnership agreement in which the partners accept individual and collective accountability. The joint approach to road safety action planning recognises the combined benefit of education, enforcement and engineering for addressing road safety issues. RSAPs are a key local planning tool for NZ Police together with risk targeted patrol plans (RTPPs). The RSAPs include national educational and enforcement campaigns and community programmes. Safety management systems and road studies provide inputs to RSAPs. Risk targeted patrol plans Risk targeted patrol plans are NZ Police operational tasking documents with the primary objective of allocating approved strategic road policing resources (those allocated to drinking and drugged driver control, speed control, restraint device control and visible road safety enforcement) to known safety risks by location and time where appropriate. RTPPs are the means of implementing enforcement activities identified in RSAPs.

22 Page Planning and programming land transport activities, continued Linkages between strategies and land transport programmes Under the legislation, regional land transport strategies, land transport programmes and the NLTP are linked in a number of ways. For example: approved organisations recommending activities for inclusion in the NLTP must first include them in their land transport programmes in preparing land transport programmes, approved organisations must take into account relevant regional land transport strategies in preparing the NLTP, and in approving individual activities for funding, Land Transport NZ must take into account relevant regional land transport strategies approved organisations preparing regional land transport strategies must take into account how these will contribute to the social, environmental and economic objectives set out in the legislation. The relationship between regional land transport strategies, land transport programmes and the NLTP is illustrated in figure 1.2. Figure 1.2 Mechanisms for developing the land transport system

23 Page Roles of Land Transport NZ and approved organisations Introduction The successful achievement of land transport outcomes requires all partners to fulfil their respective roles successfully. This section briefly sets out the roles of Land Transport NZ and partner organisations. Principal objective of Land Transport NZ [LTMA s68] Land Transport NZ is established by section 66 of the Land Transport Management Act 2003 (LTMA), as amended by the Land Transport Management Amendment Act The statutory objective set for Land Transport NZ is to allocate resources in a way that contributes to an integrated, safe, responsive and sustainable land transport system. Land Transport NZ is also required to exhibit a sense of social and environmental responsibility. Role of Land Transport NZ Land Transport NZ is the Crown entity responsible for allocating government funding for planning, maintaining, managing and developing the land transport system. Land Transport NZ has broad responsibility for ensuring the land transport system (including road, rail, barging and coastal shipping) contributes to the development of New Zealand economically, socially and environmentally. Land Transport NZ is committed to working collaboratively with local government and other organisations to develop the land transport system in a strategic manner. Accordingly, rather than taking an arms-length approach to the development of regional strategies and LTPs, Land Transport NZ now takes considerable interest in the initial planning stages. In addition, Land Transport NZ s role involves working effectively with the Ministry of Transport, Transit NZ, the NZ Railways Corporation (Ontrack), the Energy Efficiency and Conservation Authority, port and airport authorities, and other transport organisations such as passenger transport and freight operators. Wherever possible, Land Transport NZ aims to achieve its objectives by working collaboratively with, and relying on the processes of, other organisations. Statutory independence [LTMA, s69(2)] Land Transport NZ is statutorily independent in determining which activities are included in the NLTP (apart from activities approved through the ALTP) and funded under it, but is required to comply with policy directions given by Ministers. 1 Land Transport NZ must also act in accordance with its current statement of intent 2. 1 Crown Entities Act 2004, Part 3, and LTMA, section Crown Entities Act 2004, Part 4.

24 Page Roles of Land Transport NZ and approved organisations, continued Statutory functions of Land Transport NZ [LTMA s69] The following table lists the statutory functions of Land Transport NZ. Function (a) To promote land transport sustainability in New Zealand. (b) To prepare and adopt a land transport programme under section 12(a) and a national land transport programme under section 19 of the LTMA. (c) To review and revise the national land transport programme in accordance with its most recent statement of intent. (d) To approve activities and activity classes. (e) To make payments from the national land transport account as authorised by the LTMA. (f) To promote safe transport on land in New Zealand. (g) To provide safety information and advice and to foster appropriate information education programmes that promote Land Transport NZ s objective. (h) To investigate and review accidents and incidents involving transport on land in its capacity as the responsible safety authority, subject to any limitations set out in the Transport Accident Investigation Commission Act (i) To approve procurement procedures under section 25 of the LTMA. (j) To maintain and preserve records and documents concerning activities within the land transport system and in particular to maintain the land transport register under the Land Transport Act (k) To audit the performance of approved organisations in relation to activities approved by Land Transport NZ and the operation of the organisation s land transport disbursement account. (l) To assist and advise approved organisations in relation to Land Transport NZ s functions, duties, and powers under the LTMA and the Land Transport Act (m) To fund research, education, and training activities and activity classes. (n) To provide the Minister with any advice relating to Land Transport NZ s functions that the Minister of Transport may request. (o) To cooperate with, or to provide advice and assistance to, any government agency or local government agency when requested to do so by the Minister of Transport, but only if the Minister and Land Transport NZ are satisfied that the performance of Land Transport NZ s functions and duties will not be compromised. (p) To carry out any other functions relating to land transport that the Minister of Transport directs in accordance with section 112 of the Crown Entities Act 2004.

25 Page Roles of Land Transport NZ and approved organisations, continued Approved organisations [LTMA s5 and s10] Approved organisations are Transit NZ, regional councils, territorial authorities and approved public organisations. Each approved organisation annually prepares a land transport programme listing activities and activity classes for which payment is sought from Land Transport NZ. Land Transport NZ provides funds to approved organisations for approved activities. Transit NZ Transit NZ s objective and functions are set out in the Land Transport Management Act The objective is to operate the state highway system in a way that contributes to an integrated, safe, responsive, and sustainable land transport system. Transit NZ is responsible for planning, consulting, programming and implementing land transport activities on state highways. Local authorities Local authorities are funding partners with Land Transport NZ for land transport activities in their areas. Local authorities are responsible for planning, consulting, programming and implementing land transport activities in their region or district. Local authorities are encouraged to have, throughout the year, an active involvement in road safety action planning together with Land Transport NZ, NZ Police, Transit NZ and other parties at the local level. Approved public organisations [LTMA s23(4)] The Auckland Regional Transport Authority (ARTA), Department of Conservation and the Waitangi Trust Board are approved public organisations. These organisations are responsible for planning, consulting, programming and implementing land transport activities in their areas. NZ Police NZ Police provide road policing on state highways and local roads, network-wide policing including traffic management, and associated services including community services and school road safety education. Researchers and education and training service providers Land Transport NZ provides funds to persons and organisations to deliver research, education and training activities.

26 Page The national land transport account The national land transport account [LTMA s10] The LTMA requires that Land Transport NZ must operate a National land transport account (NLTA). All funds received by Land Transport NZ are paid into the NLTA. Approval of activities and activity classes [LTMA s20] Land Transport NZ may approve activities for funding from the NLTA either at the time that the NLTP is published or during the year as detailed funding applications are submitted. Land Transport NZ may approve an activity or activity class as qualifying for payments from the NLTA if: Land Transport NZ has taken into account any current national land transport strategy, relevant regional land transport strategy and the National energy efficiency and conservation strategy, and how the activity contributes to the NZTS objectives. Land Transport NZ is satisfied that: the activity or activity class is included in the NLTP or qualifies by being in the urgent interests of public safety or is necessary to effect immediate or temporary repair of damage caused by a sudden and unexpected event the NLTP continues to contribute to the purpose of the LTMA and to the NZTS objectives, and the Minister of Transport s approval has been given to the ALTP if applicable the activity or activity class contributes to Land Transport NZ s objective, including its social and environmental responsibility in an efficient and effective manner the activity or activity class has, to the extent practicable, been assessed against other land transport options and alternatives the approved organisation seeking the funding has complied with the relevant consultation requirements of the LTMA in preparing its land transport programme expenditure forecast from the NLTA on activities and activity classes included in the NLTP for the relevant financial year will not exceed the following sum: o o o the anticipated amounts the Crown has payable to the Land Transport NZ under section 9(6) of the LTMA, borrowed for that financial year, and carried forward from any previous financial year, plus any other money that may be owing to Land Transport NZ (including any other liability of the Crown to Land Transport NZ under section 9 of the LTMA, less the administrative costs and expenses that are payable under section 10(4)(b) of the LTMA.

27 Page The national land transport account, continued Land transport disbursement accounts [LTMA s24] Every approved organisation that receives funds from the NLTA must operate a land transport disbursement account. All money received from the NLTA by an approved organisation must be paid into its land transport disbursement account. Transit NZ must also pay into its land transport disbursement account all other money received by it from any source other than the NLTA. Whatever form of accounts is adopted by an approved organisation, adequate prime records and working papers must be held to support claims to the satisfaction of the Controller and Auditor-General and Land Transport NZ s performance monitoring team. Payments made from the land transport disbursement account [LTMA s24(5)] Payments may be made from a land transport disbursement account as follows: in the case of funds received by an approved organisation from the NLTA, payments may be made only in respect of approved activities or activity classes in the case of funds received by a person for education, research or training activities or activity classes, payments may be made for activities or activity classes approved under section 21 of the LTMA (funding for land transport research, education or training) in the case of funds received by Transit NZ from any other source, payments may be made in respect of any costs and expenses of Transit NZ that arise out of the performance of its functions and duties, or the exercise of its powers. All payments from a land transport disbursement account: are subject to any relevant conditions imposed by an order made under section 23 of the LTMA (approval of public organisations) must be made in accordance with a procurement procedure approved by Land Transport NZ under section 25 of the LTMA, unless exempt by or under section 26 of the LTMA (payments exempt from procurement procedures).

28 Page The national land transport account, continued Payments may be withheld in certain cases [LTMA s36] As per section 36(2) and 36(3) Land Transport NZ may reduce, refuse or withhold payments if it considers that, in relation to an approved activity, an approved organisation or person: is in breach of a procurement procedure, or has been or is or will be likely to be in breach of any other provision of the LTMA relating to payments from a land transport disbursement account, or has constructed or undertaken the activity, or is proposing to construct or undertake the activity, to standards that are excessively high or unsatisfactory. If Land Transport NZ makes any payment for an approved activity that is based on information that is subsequently found to be erroneous or inaccurate, the payment is recoverable in any court of competent jurisdiction as a debt due to Land Transport NZ.

29 Page Funding for land transport activities Introduction Land Transport NZ has a number of funding streams from which to allocate funds for land transport activities. These funding streams are briefly described in this section. Chapter 6 describes the process used to allocate these funds. Nationally distributed funds (N funds) This is the main funding stream from the national land transport fund. These funds are allocated by Land Transport NZ through the NLTP on the basis of national priority in accordance with the requirements of the LTMA. Regionally distributed funds (R funds) In December 2003, the government announced additional funds for land transport over a 10-year period. The announcement included a five cent per litre increase in fuel excise duty and an equivalent increase in road user charges for light vehicles, to be distributed regionally on the basis of population (with Auckland receiving 35 percent of the total collected) for 10 years from April Land Transport NZ allocates these funds to each region through the NLTP in accordance with the requirements of the LTMA and considering regional recommendations. Regional development funds In October 2002, the Minister of Transport issued a policy direction to Land Transport NZ requiring it to provide 100 percent funding for regional development capital and maintenance for local authorities in Northland and Tairawhiti. This funding 3 is used to meet specific needs where insufficient investment in roads and alternatives to roads is constraining regional development. These funds are allocated by Land Transport NZ through the NLTP in accordance with the requirements of the LTMA and considering regional recommendations. Crown appropriations to specific regions (C funds) In addition to the regionally distributed funding stream, the government has undertaken assessments of the transport needs of particular regions. To date, Auckland, Wellington, Bay of Plenty and Waikato regional transport needs have been assessed and additional Crown funds have been made available for those regions. These funds are allocated by Land Transport NZ through the NLTP in accordance with the requirements of the LTMA and considering regional recommendations within the government s intent for the funds. 3 Activity class 7.

30 Page Funding for land transport activities, continued Additional financial assistance policy The Minister of Transport has approved continuation of Land Transport NZ s policy for additional financial assistance until cessation of R funding in 2014/15. This policy allows Land Transport NZ to deal with affordability constraints for individual local authorities in relation to delivering specific transport improvement projects. This additional financial assistance will be funded from regionally distributed funds. It will be available only where a local authority has increased its expenditure above a baseline level established by Land Transport NZ. Land Transport NZ will assess applications for additional financial assistance on a project-by-project basis against the following criteria: the activity will provide significant national or regional transport benefits relative to local benefits (for example by providing a more direct route for long distance traffic or significantly improving passenger transport infrastructure) the activity is part of a package designed to improve network integration and/or sustainability other approved organisations in the region support the use of regionally distributed funds to provide additional financial assistance for the activity, and the approved organisation involved can demonstrate, to the satisfaction of Land Transport NZ, that the activity will result in a significant affordability problem for the local authority. Flexibility in use of R funds Where an approved organisation can demonstrate a need to undertake a substantially expanded programme of road renewals, unassigned R funds may be allocated provided there is regional agreement for the R funds to be used in this way. Regional advisory groups may also support local authorities that wish to use unassigned R funds to provide additional financial assistance with local share for a programme of road renewals. The maximum amount of additional assistance will not be more than half the local share and the Land Transport NZ Board must be satisfied there is a significant affordability problem.

31 Page 1-23 Supplementary funds Supplementary funds refers to funding contributions that are additional to the standard levels of NLTA and local authority funding specified in Land Transport NZ s published financial assistance rates. The main examples of supplementary funds are: funds generated from toll revenues or capital sums borrowed against projected toll revenues development contributions towards the costs of improving network infrastructure (to the benefit of the development) betterment from landowners receiving value from road improvements additional contributions from local authorities or other parties that reduce the proportion of Land Transport NZ s contribution to the cost of an activity below that specified in Land Transport NZ s normally applicable financial assistance rate (FAR). The LTMA contains provisions to facilitate funding of land transport activities by tolling, borrowing and payments from concession agreements. The Resource Management Act 1991 and the Local Government Act 2002 contain powers for local authorities to require development contributions towards network infrastructure. The Local Government Act 1974 provides for territorial authorities to collect betterment from landowners receiving value from road improvement works refer to section 4.3.

32 Page Land transport programme agreements Introduction Each year, Land Transport NZ will enter into land transport programme agreements with all approved organisations receiving funding. The agreements will formalise the responsibilities of the parties relative to the implementation of their component of the NLTP. Form of agreement Schedules to the agreements will be renewed annually, and will include the following: performance measures and targets conditions of funding Land Transport NZ expectations. Execution of agreements Land transport programme agreements are to be signed and returned to Land Transport NZ s regional partnership managers by 31 July.

33 Page Schedule of key dates Introduction This section provides a schedule of the events that occur throughout the programme year so that approved organisations can plan for and meet the deadlines. The relevant section in this manual is given for reference. Schedule of event and reporting deadlines No later than 7 th working day of each month This event takes place For detail see section Monthly claims to Land Transport NZ th of each month Monthly programme review requests to Land Transport NZ July Land transport programme agreements to be signed and returned to Land Transport NZ s regional partnership manager. 31 July Advice of over-expenditure on approved projects July Final claims and supplemental requests due July Annual roading achievement report and passenger transport achievement. 31 July Road controlling authorities submit roading asset/activity management plan updates. 10 August Advice of under-expenditure on approved projects. 9.3, August/ September Land Transport NZ briefings on preparing LTPs August Annual property purchase report. 9.5 End September Late September 4 Late October 4 Land Transport NZ provides to each road controlling authority the results of the end of year review of performance measures and comments on road asset/activity management plans. Approved organisations submit recommendations on ALTP activities. Regional advisory groups submit draft assessment of regional issues and recommended allocation for R and C funds continued

34 Page Schedule of key dates, continued Schedule of event and reporting deadlines, continued No later than Early November 4 This event takes place Approved organisations submit draft LTPs together with full supporting documentation. For detail see section 5.4, 5.5, 5.6, 5.7 December to February Funding requests discussed, clarified and jointly agreed with Land Transport NZ partnership managers. 5.4, 5.5, 5.6, January Mid-year roading achievement report. 9.2 Late February 4 Early March Early April 4 Early April 4 May May (post budget) Approved organisations submit final road maintenance and renewal and passenger transport programmes. Land Transport NZ issues indicative allocations of N, R and C funding for each region. Regional advisory groups consider these indicative allocations and advise Transit NZ on prioritisation of state highway works. Regional advisory groups submit final recommendations on N, R and C allocations. Approved organisations provide confirmation of LTPs, and submit final LTP. Land Transport NZ advises approved organisations of their road maintenance and renewal and passenger transport allocations. Land Transport NZ advises road policing allocations. 5.4, , 5.6, , By 30 June NLTP published. 5.4, 5.5, 5.6, 5.7, July Approved organisations provide confirmation of programme changes (resulting from consultation) and provide confirmation that consultation requirements have been met. 5.3 Note: Where any of the dates listed above fall on a weekend or public holiday the following working day applies. 4 Specific date to be advised in annual guidelines.

35 Page 2-1 Chapter 2 Funding categories 2.1 Overview Introduction This chapter defines work categories for programming and funding and how these are grouped into activities and activity classes. Land Transport NZ will only fund outputs and capital projects in the defined work categories. In this chapter This chapter contains the following sections: Section Page 2.1 Overview Funding category structure Activity classes 1 and 2 Maintenance and operation of roads Activity classes 3 and 4 Renewal of roads Activity classes 5 and 6 Improvement of roads Activity class 8 Use of the land transport system Activity class 9 Passenger transport Activity class 10 Administration Activity class 11 Road policing Activity class 12 Research, education and training Activity class 13 Programme management Project cost components 2-63 Note: Activity class 7 (regional development) includes work categories from both Improvement of roads, and Use of the land transport system activity classes.

36 Page Funding category structure Activity class 1 Maintenance and operation of local roads Activity class 2 Maintenance and operation of state highways Activity Work category no. Work category name 111 Sealed pavement maintenance Structural maintenance 112 Unsealed pavement maintenance 113 Routine drainage maintenance 114 Structures maintenance 121 Environmental maintenance Corridor maintenance and operations 122 Traffic services maintenance 123 Operational traffic management 124 Cycle path maintenance Level crossing warning devices Emergency reinstatement Network and asset management Property management 131 Level crossing warning devices 141 Emergency reinstatement 151 Network and asset management 161 Property management (state highways) Financial grants 171 Financial grants

37 Page Funding category structure, continued Activity class 3 Renewal of local roads Activity class 4 Renewal of state highways Activity Work category no. Work category name 211 Unsealed road metalling Structural renewals 212 Sealed road resurfacing 213 Drainage renewals 214 Pavement rehabilitation 215 Structures component replacements Corridor renewals Associated improvements Preventive maintenance 221 Environmental renewals 222 Traffic services renewals 231 Associated improvements 241 Preventive works Activity class 5 Improvement of local roads Activity class 6 Improvement of state highways Activity Work category no. Work category name Road studies 311 Road studies 321 Traffic management New road infrastructure 322 Bridge renewals 323 New roads and structures 324 Road reconstruction 325 Seal extension 331 Property purchase (state highways) Property 332 Property purchase (local roads) 333 Advance property purchase Minor improvements 341 Minor improvements

38 Page Funding category structure, continued Activity class 8 Use of the land transport system Activity Studies Travel demand management Community focused activities Rail freight and sea freight Walking and cycling Work category no. Work category name 411 Regional transport studies 412 System use studies 421 Travel demand management 431 Community coordination 432 Community programmes 433 Community advertising 441 Rail freight operations 442 Sea freight operations 451 Pedestrian facilities 452 Cycle facilities

39 Page Funding category structure, continued Activity class 9 Passenger transport Activity Work category no. Work category name 511 Bus services 512 Ferry services 513 Bus and ferry concession fares 514 Bus and ferry facilities maintenance and operations Services and operations 515 Passenger rail services 516 Passenger rail facilities maintenance and operations 517 Total mobility services 518 Total mobility facilities maintenance and operations 519 Replacement wheelchair hoists 520 Passenger transport services management 521 Total mobility flat rate payments New passenger transport infrastructure 531 Bus and ferry infrastructure 532 Passenger rail infrastructure 533 Passenger transport road improvements Activity class 10 Administration Activity Work category Work category name no. State highways 611 State highway administration Territorial 621 Territorial authority administration support 631 Regional land transport planning Regional 632 Passenger transport administration 633 Total mobility administration

40 Page Funding category structure, continued Activity class 11 Road policing Activity Road policing Work category no. Work category name 711 Strategic road policing 712 Incident and emergency management 713 Road policing resolutions Community engagement 714 Community engagement Activity class 12 Research, education and training Activity Research, education and training Work category no. Work category name 811 Research programme 812 National education and training programme Activity class 13 Land Transport NZ programme management Activity Programme management Work category no. Work category name 911 Programme management 912 Performance monitoring 913 Crash analysis system 914 Information on use of the land transport system

41 Page Activity classes 1 and 2 Maintenance and operation of roads Introduction The work defined in this section is eligible for funding within activity class 1: Maintenance and operation of local roads, or activity class 2: Maintenance and operation of state highways, unless explicitly noted otherwise. Notes: Renewal of road pavements, structures and facilities comes under activity classes 3 and 4. Professional services for work categories in this section, except work categories 123: Operational traffic management and 141: Emergency reinstatement are funded under work category 151: Network and asset management, rather than under the individual work categories. W/C 111: Sealed pavement maintenance This work category provides for the routine care of sealed pavements to maintain their structural integrity and serviceability. Examples of qualifying work: pavement dig-outs, patching and pothole repairs pre-reseal repairs unsealed shoulder maintenance on sealed roads the road controlling authority share of pavement maintenance at railway level crossings together with any associated servicing fee. W/C 112: Unsealed pavement maintenance This work category provides for the routine care of unsealed pavements to maintain their structural integrity and serviceability. Examples of qualifying work: grading spot metalling and pot hole repair maintenance of the running course.

42 Page Activity classes 1 and 2 Maintenance and operation of roads, continued W/C 113: Routine drainage maintenance This work category provides for the routine care of drainage facilities to maintain their function. Examples of qualifying work: cleaning of kerbed water channels, sumps, and cesspits in urban areas (30 percent of total cost see below) routine maintenance and repair of surface water channels and sub-soil drains stream clearing and debris removal to maintain water courses through culverts (cross-sectional area less than 3.4 square metres) removal of berms impeding drainage. Rules: Land Transport NZ has determined that financial assistance will be provided on 30 percent of the total cost of cleaning of channels, sumps, and cesspits in urban areas, as an approximation of the benefit to the road and its users. The general sweeping of the carriageway surface on both state highways and local roads is not eligible for financial assistance. Amount of street cleaning eligible for financial assistance continued

43 Page Activity classes 1 and 2 Maintenance and operation of roads, continued W/C 113: Routine drainage maintenance, continued Programming: Approved organisations shall only show the 30 percent of the total expenditure that is eligible for financial assistance in their land transport programmes. The 30 percent component of the total cost of cleaning on state highways in urban areas is to be funded within Transit NZ s land transport programme. The 70 percent balance will remain a territorial authority amenity cost with no financial assistance. The full cost of sweeping to remove surplus chip immediately following resealing is part of the maintenance chip seal project cost funded under work category 212: Sealed road resurfacing. W/C 114: Structures maintenance This work category provides for the routine work necessary to maintain the function, structural integrity and appearance of all bridges and retaining walls. It also includes the maintenance of tunnels, stock underpasses, vehicular ferries, cattle stops and bridge waterways when the bridge itself is directly affected. Examples of qualifying work: repairs to handrails associated with structures repairs to guardrails including wire rope barriers minor repairs to other components all cleaning and painting stream clearing and debris removal to maintain water courses under bridges hire charges for bailey bridges (excluding temporary bridges that are part of emergency reinstatement). Rule: Any bridge constructed by any agency subsequent to 1954, which does not conform to a recognised design code, is not eligible for funding within this work category.

44 Page Activity classes 1 and 2 Maintenance and operation of roads, continued W/C 121: Environmental maintenance This work category provides for the routine care and attention of the road corridor to maintain safety, aesthetic and environmental standards. Examples of qualifying work: snow clearing and ice control vegetation control litter collection on rural roads removal of, and protection against, graffiti on road structures maintenance of, and removal of effluent from, stock truck effluent disposal facilities any special treatment of run-off from the road to maintain water quality sweeping loose chip and detritus from road intersections removal of rocks and minor slip material from the road or catch fences maintenance of rest areas maintenance of protection planting non-recoverable costs arising from clearing the carriageway of damaged vehicles, crash debris and spillages that are not the responsibility of emergency services non-recoverable costs associated with removal of abandoned vehicles from road reserves for safety reasons. Rule: Costs associated with disposal of abandoned vehicles removed from road reserves are not eligible for funding.

45 Page Activity classes 1 and 2 Maintenance and operation of roads, continued W/C 122: Traffic services maintenance This work category provides for the routine care and attention of road furniture, markings and carriageway and pedestrian crossing lighting. This includes the power costs for lighting. Examples of qualifying work: maintenance of: traffic signs as accepted by Land Transport NZ policy refer to section 4.30 road delineation marker posts pavement markings (including bus priority lane and cycleway markings on all non-separated road surfaces) sight rails operation, maintenance and power costs of: carriageway lighting belisha beacons and floodlighting at pedestrian crossings. Programming: Carriageway lighting on local roads is to be funded within the relevant territorial authority land transport programme. Carriageway lighting on motorways and on state highways in both urban and rural areas is to be funded within the state highway programme. The reinstatement of facilities maintained under this work category that is caused by maintenance or construction work shall be charged to the maintenance or construction project. continued

46 Page Activity classes 1 and 2 Maintenance and operation of roads, continued W/C 122: Traffic services maintenance, continued Notes: This work category excludes any capital cost either as a direct charge or by amortisation. This work category also excludes any costs related to amenity lighting. Amenity lighting includes the lighting of: buildings property and reserves under-veranda lighting festive lighting any other lighting not directly related to the operation of a road. Supporting information: For audit purposes, the following information will be required: power costs maintenance costs.

47 Page Activity classes 1 and 2 Maintenance and operation of roads, continued W/C 123: Operational traffic management This work category provides for the operation, maintenance and power costs of traffic signals and other traffic management equipment and facilities. Examples of qualifying work: operation, maintenance and power costs of: traffic signals advanced traffic management systems (ATMS) variable message signs (VMS) area-wide traffic control systems including update of software local area traffic management schemes (LATMS) ramp metering traffic monitoring equipment, such as closed-circuit television systems emergency telephones on motorways weighing facilities owned by a road controlling authority and/or operated as a weight surveillance facility. Programming: The reinstatement of facilities maintained under this work category that is caused by maintenance, renewal or construction/ implementation shall be charged to the maintenance, renewal or construction/ implementation project. W/C 124: Cycle path maintenance This work category provides for the maintenance of the pavement and facilities associated with cycle paths, including the operation of associated lighting. It does not include construction/implementation of new facilities or capital work on existing facilities, such as the provision of new lighting. These come under work category 452: Cycle facilities.

48 Page Activity classes 1 and 2 Maintenance and operation of roads, continued W/C 131: Level crossing warning devices This work category provides for the territorial authority to share the costs associated with maintenance, renewal, upgrading and installation of level crossing warning devices carried out by the relevant rail track authority. Only work that is on a priority list that the relevant rail track authority provides to Land Transport NZ qualifies. Supporting information: An invoice from the relevant rail track authority must back up claims. W/C 141: Emergency reinstatement This work category provides for unforeseen significant expenditure that arises from a defined, major, short duration natural event. It allows for the restoration of roads and road structures to a standard no better than that which existed before any damage occurred. Only damage that has been approved by Land Transport NZ for funding as emergency reinstatement will qualify. Repair of damage that is confined to the following extent shall be programmed either under the appropriate structural maintenance work category or as preventive maintenance and is not eligible for funding from the emergency reinstatement category: minor scour in water channels and other drainage facilities dropouts and/or slips that do not require restriction of a traffic lane, provided they do not need urgent attention to remove a threat to safety or to the road structure scour, degradation, or aggradation threatening roads, bridges, or other road-related structures that has accumulated over time any other deficiency that has developed from events occurring over a period of time (ie greater than one month). Rule: The cost of restoring any damage to work under construction or still within a maintenance period is a charge to that project and not to the emergency reinstatement work category. Note: Where it is clearly evident that an improvement component would be desirable, the improvement work is to be economically justified in terms of Land Transport NZ s Economic evaluation manual, volume 1 and programmed in the appropriate road improvement work category.

49 Page Activity classes 1 and 2 Maintenance and operation of roads, continued W/C 151: Network and asset management This work category provides for the general management and control of the road network and management of road assets. Examples of qualifying work: management of the road network implementation and operation of asset management systems legalisation of existing road reserves project feasibility reports (PFRs) for capital projects preparing asset management plans, safety management strategies and environmental management strategies management of the stock of bailey bridges (Transit NZ only) condition rating surveys traffic count surveys special road maintenance or renewal related studies asset valuations. Note: Legalisation of existing road reserves is limited to: legalisation surveys for the acquisition of land for road purposes legalising the stopping of formed roads plan fees payable to Terralink. No other expenses involved in legalisation surveys are eligible. Refer to section 2.12 for further clarification on this work category.

50 Page Activity classes 1 and 2 Maintenance and operation of roads, continued W/C 161: Property management (state highways) This work category provides for costs associated with the management of property purchased by Transit NZ for future roading. For rental operations, this includes: valuations for rent reviews rates and grants maintenance and renewal management fees forestry. For property disposals, this includes the fees associated with: valuations legal surveys management real estate agents. W/C 171: Financial grants This work category provides for grants to territorial authorities. Such grants may be made, for example, to permit a financial assistance transition from fully funded state highways (which may have been revoked as a result of a state highway review) to the territorial authority s base rate of financial assistance.

51 Page Activity classes 3 and 4 Renewal of roads Introduction The work defined in this section is eligible for funding within activity class 3: Renewal of local roads, or activity class 4: Renewal of state highways, unless explicitly noted otherwise. W/C 211: Unsealed road metalling This work category provides for the planned periodic renewal of pavement layers including top surface metal, on unsealed roads. W/C 212: Sealed road resurfacing This work category provides for the planned periodic resurfacing of sealed roads. Examples of qualifying work: conventional maintenance chip reseals second coat seals, except on sub-division roads thin asphaltic surfacing void filling seal coats texturing seals emulsified bitumen seals commonly known as slurry seals milling old surface and resurfacing other approved special-purpose chip seals. Standard: Thin asphaltic surfacing is not to exceed 40 mm average depth. Programming: Raising service covers and reinstatement of pavement markings and raised pavement markers as a result of resurfacing is to be included in this work category. The cost of any pavement repairs preparatory to carrying out resurfacing is to be a charge against work category 111: Sealed pavement maintenance. The second coat sealing of sub-divisional roads is deemed to be part of subdivisional construction and does not qualify for financial assistance.

52 Page Activity classes 3 and 4 Renewal of roads, continued W/C 213: Drainage renewals This work category provides for the renewal of drainage facilities that is not routine in nature, but which will reduce future maintenance costs. Examples of qualifying work: renewal of culverts having a cross-sectional area less than 3.4 square metres repair and replacement of kerb and channel, provided that the deterioration is likely to adversely affect the performance of the pavement. W/C 214: Pavement rehabilitation This work category provides for the replacement of, or restoration of strength to, pavements where other forms of maintenance and renewal are no longer economic. Examples of qualifying work: granular overlays rip and relay pavement stabilisation thin asphaltic overlays or grader-laid asphaltic material pavement replacement (including the use of recycled materials). Note: No improvements are to be included in this work category. Where it is prudent to carry out some improvements in conjunction with the rehabilitation, this may be programmed under work category 231: Associated improvements. Project evaluations: To qualify for inclusion in this work category the work must be the long-term, least-cost maintenance option for the road controlling authority, calculated in terms of present value (PV), and not include any improvements. Notes: A simplified evaluation method is provided in Land Transport NZ s Economic evaluation manual, volume 1. Road controlling authorities must retain details of individual projects and project evaluations (in terms of net maintenance savings) for audit purposes.

53 Page Activity classes 3 and 4 Renewal of roads, continued W/C 215: Structures component replacements This work category provides for the renewal of components of bridges and other road structures. Examples of qualifying work: replacement of deteriorated structural members replacement of damaged components replacement of bridge decks replacement or modification of gabion baskets replacement of handrails on structures replacement of guardrail components replacement of crib blocks in retaining walls supporting roads. W/C 221: Environmental renewals This work category provides for the renewal of existing environmental control facilities related to roads. Examples of qualifying work: renewal of existing stock truck effluent disposal facilities (50 percent of the cost) refer to section 4.25 renewal of catch fences provided for protection of the carriageway from slip material renewal of any special treatment of run-off from the road to maintain water quality.

54 Page Activity classes 3 and 4 Renewal of roads, continued W/C 222: Traffic services renewals This work category provides for the renewal of existing road furniture, lighting, signs and markings, and traffic management equipment and facilities. Examples of qualifying work: renewal of: traffic signs as accepted by Land Transport NZ policy refer to section 4.30 road delineation marker posts pavement markings (including bus priority lane and cycleway markings on all non-separated road surfaces) sight rails emergency telephones on motorways carriageway lighting including columns belisha beacons and floodlighting at pedestrian crossings traffic signals advanced traffic management systems (ATMS) variable message signs (VMS) area-wide traffic control systems local area traffic management schemes (LATMS) ramp metering surveillance devices traffic monitoring equipment, such as closed-circuit television systems weighing facilities owned by a road controlling authority and/or operated as a weight surveillance facility. Standard: To qualify for funding from this work category, all work must conform to the Manual of traffic signs and markings adopted by Land Transport NZ, where that manual is applicable. Programming: The reinstatement of facilities renewed under this work category that is caused by maintenance or construction/implementation work shall be charged to the maintenance or construction/implementation project.

55 Page Activity classes 3 and 4 Renewal of roads, continued W/C 231: Associated improvements This work category provides for minor improvements mainly carried out in conjunction with road renewal works and installation of new minor traffic management equipment and facilities. Examples of qualifying work: installation of culverts (having a cross-sectional area less than 3.4 square metres), water channels, subsoil drainage, or kerb and channel, where this is shown to be: necessary to protect adjacent property from run-off from the road surface, and necessary to protect the pavement increases to seal width to overcome maintenance problems up to the target seal width accepted by Land Transport NZ for the traffic mix and volume on that section of road provided that the cost of drainage and seal width improvements carried out in conjunction with renewal work does not exceed 20 percent of the cost of the basic road renewal work. Road controlling authorities must be able to show that provision of the improvement in conjunction with the renewal work is necessary and economically prudent installation of new signs and traffic management equipment and facilities or upgrading these to the current standard, up to a limit of $10,000 refer to sections 4.2, 4.8, 4.29 and Project evaluations: Seal widening, installation of new culverts, water channels and kerb and channel as stand-alone projects must be the long-term, least-cost option for the road controlling authority, calculated in terms of PV. Programming: If the proposed work exceeds the above restrictions then the project is to be programmed under either work category 341: Minor improvements or work category 324: Road reconstruction, unless specifically approved otherwise by Land Transport NZ. Notes: A simplified evaluation method is provided in Land Transport NZ s Economic evaluation manual, volume 1. Details of individual seal widening projects, new culverts, water channels and kerb and channel project evaluations (in terms of net maintenance savings) must be held by the road controlling authority for audit purposes.

56 Page Activity classes 3 and 4 Renewal of roads, continued W/C 241: Preventive works This work category provides for non-routine work required to protect the serviceability of roads and road structures from damage likely to result from natural phenomena and to minimise the threat of road closure. The work provided in this work category is not eligible for programming in the maintenance, renewal or emergency reinstatement work categories. Examples of qualifying work: new works that protect existing roads from sea or river damage new drainage to drain incipient slips toe weighting of unstable slopes protection planting refer to section 4.14 work to overcome changes in a river s course or bed level that threaten roads, bridges, or other road related structures, but which is not attributable to one climatic event. Rule: These works must be economically justified. They must be the long-term, least-cost option for the road controlling authority, calculated in terms of PV.

57 Page Activity class 5 and 6 Improvement of roads Introduction The work defined in this section is eligible for funding within activity class 5: Improvement of local roads, activity class 6: Improvement of state highways, or activity class 7: Regional development. W/C 311: Road studies This work category provides for: road network transportation studies road strategy studies crash reduction studies undertaken by road controlling authorities. Road network transportation studies develop transportation models for the arterial road network. These are used to evaluate: land-use strategies transport demand management strategies planning at a network level (but not at an individual route or project level) where road users have the choice of alternative routes transportation policies and strategies a number of projects with network-wide effects using transport models. Note: Road network transportation studies exclude: planning of public passenger transport services parking studies (these should be considered under work category 421: Travel demand management) traffic management studies at a local level walking and cycling strategies project development and evaluation. Note: Further requirements for road network transportation studies are given in section continued

58 Page Activity class 5 and 6 Improvement of roads, continued W/C 311: Road studies, continued Road strategy studies examine existing individual routes or road corridors in order to identify deficiencies from established standards and propose solutions to those deficiencies. This allows a coordinated approach to be undertaken to any upgrading needs instead of treating individual projects in isolation. Terms of reference: A terms of reference must be provided to Land Transport NZ for approval for road strategy studies. The terms of reference shall state as a minimum, the: purpose scope methodology timeframe deliverables/outputs, and cost estimate. Furthermore, the terms of reference shall be tested against the purpose of the LTMA and the objectives of the New Zealand transport strategy. Rule: Any changes of scope of road strategy studies are to be approved by Land Transport NZ before authority to proceed is issued to the professional services supplier. Rule: Two copies of the study report shall be forwarded to Land Transport NZ at the completion of the study. continued

59 Page Activity class 5 and 6 Improvement of roads, continued W/C 311: Road studies, continued Crash reduction studies are designed to identify low-cost road improvements, road policing and education activities that improve road safety. Land Transport NZ: expects that all road controlling authorities will have a regular, though not necessarily annual, programme of crash reduction studies, and requires that crash reduction studies are conducted in accordance with the New Zealand guide to the treatment of crash locations (December 2004). Road controlling authorities can also seek advice from Land Transport NZ engineers. Terms of reference: In order to obtain approval for crash reduction studies, road controlling authorities must submit to Land Transport NZ a terms of reference describing: the roads or area to be studied the timetable for the study the estimated cost of the study, and the personnel to be involved and their qualifications. Monitoring: After completion of work arising from each study, monitoring is to be carried out and reported to Land Transport NZ in accordance with the Land Transport NZ Crash reduction monitoring system (2005). This enables Land Transport NZ and the Ministry of Transport to research the effectiveness of remedial treatments. Standards: Crash reduction studies must be directed by appropriately trained traffic engineering staff.

60 Page Activity class 5 and 6 Improvement of roads, continued W/C 321: Traffic management This work category provides for new facilities and equipment that assist with the management of the road network. Examples of qualifying work: traffic signals advanced traffic management systems (ATMS) variable message signs (VMS) area-wide traffic control systems refer to section 4.2 local area traffic management schemes (LATMS) ramp metering stock truck effluent disposal facilities (50 percent of the cost) refer to section 4.25 surveillance devices traffic monitoring equipment, such as closed-circuit television systems refer to section 4.8 weighing facilities owned by a road controlling authority and/or operated as a weight surveillance facility.

61 Page Activity class 5 and 6 Improvement of roads, continued W/C 322: Bridge renewals This work category provides for complete replacement of existing bridges and other road structures including culverts having a waterway greater than 3.4 square metres. Examples of qualifying work: replacing a structurally inadequate bridge replacing a bridge for non-structural reasons, such as inadequate width or waterway modifying an existing bridge to increase its structural capacity to a level higher than originally provided widening an existing bridge approach work estimated to cost less than $50,000 replacing retaining walls supporting a road sealing bridge approaches on unsealed roads as part of the approach costs, provided that the approach sealing is limited to a maximum distance of 50 metres from each abutment and that the seal continues over the entire structure to ensure consistency of skid resistance. Note: In locations where sealing costs are high, some alternative to sealing should be considered. The use of pavement stabilisers may be used as an economic alternative to sealing and may be included in the cost of the work. Programming: The bridge renewals work category specifically excludes the provision of a new bridge or structure where no structure presently exists. W/C 323: New roads and structures This work category provides for the construction of a new road that is additional to the existing road network and new road structures including retaining walls that form part of a road refer to section 4.5. Programming: This work category does not include a deviation of an existing road.

62 Page Activity class 5 and 6 Improvement of roads, continued W/C 324: Road reconstruction This work category provides for the reconstruction of existing pavements within the existing or widened road reserve, or deviations onto a new road reserve where the original road is closed. Examples of qualifying work: realignment re-grading widening intersection improvements approaches to bridge renewals costing in excess of $50,000 passing lanes thin asphaltic overlays or grader-laid asphaltic material retaining structures, tunnels, all traffic signs, pavement markings, traffic signals, lighting, etc, necessary to bring the improved facility into service (for local roads projects) property purchase costs less than $50,000. W/C 325: Seal extension This work category provides for sealing existing unsealed roads, including any associated reconstruction. W/C 331: Property purchase (state highways) This work category provides the funds which are required by Transit NZ to purchase land for road purposes. This includes: valuation legal surveys acquisitions, and compensation. Supporting information: All costs are to be identified by project and available for audit or upon request of Land Transport NZ s partnership manager. Where property funds are requested, the requesting authority must have a land plan available for audit purposes. The plan must indicate the area of land to be purchased and the part that is to be converted to road reserve. Each individual property should be identified on the plan.

63 Page Activity class 5 and 6 Improvement of roads, continued W/C 332: Property purchase (local roads) This work category provides local road controlling authorities with financial assistance to acquire the portion of land that is to be converted to road where the cost is greater than or equal to $50,000. Where the cost is less than $50,000 per project, the property cost shall be included in the project s construction/implementation cost. The portion of the property acquired in excess of the minimum roading requirements is not eligible. Financial assistance is paid at the time of construction/implementation, based on the greater of the purchase price or current market value. Where an exchange of land is undertaken between a private landowner and a road controlling authority, or where land is vested in a road controlling authority by a private owner as the result of a requirement to do so without monetary payment for the land, the transaction does not qualify for funding. However, where payment of land transfer fees or stamp duty is involved, these can be included as acquisition costs. Legalisation surveys, including plan fees payable to Terralink, are to be treated as part of the land acquisition cost. No other expenses involved in the legalisation process are eligible. Rule: Any payment for betterment recovered in terms of section 326 of the Local Government Act shall be a credit to the cost of the project. Supporting information: Where property funds are requested, the requesting authority must have a land plan available for audit purposes. The plan must indicate the area of land to be purchased and that part which is to be converted to road reserve. Each individual property should be identified on the plan. Programming: Where land is purchased and surveys are undertaken some time before the work appears in the land transport programme, such expenditure becomes a road controlling authority charge until the work is approved for construction/implementation.

64 Page Activity class 5 and 6 Improvement of roads, continued W/C 333: Advance property purchase This work category provides for property acquisition for local roading purposes prior to Land Transport NZ accepting a project into an approved National land transport programme (NLTP). Funding may be provided for property acquisition in advance of construction/implementation where: the land is designated in the district plan for road purposes the land required by the proposed construction/implementation has been accepted by Land Transport NZ for property acquisition the purchase is required for hardship reasons or other situations as specifically approved by Land Transport NZ. Projects proposed for Land Transport NZ approval should be major elements in the improvement of the road system supported by transport planning schemes and indicated by high assessment profiles. Legalisation surveys, including plan fees payable to Terralink, are to be treated as part of the land acquisition cost. No other expenses involved in the legalisation process are eligible. Condition: A condition of financial assistance for advance property purchase is that Land Transport NZ s financial interest is registered on the property title, such that when any property surplus to roading needs is sold, Land Transport NZ s share is reimbursed. Note: In some cases the registration of Land Transport NZ s interest on the title will give Land Transport NZ the opportunity to express a view on the proposed disposal or alteration to the property.

65 Page Activity class 5 and 6 Improvement of roads, continued W/C 341: Minor improvements This work category provides funding for the construction/implementation of the following types of improvements: small, isolated geometric improvements intersection improvements traffic calming measures lighting improvements for safety provision of guardrailing sight benching to improve visibility pedestrian crossings stock underpasses formation of trailer parks safety footpaths that conform to Land Transport NZ policy minor engineering works associated with community programmes. Other projects may be considered upon application to and approval by Land Transport NZ. Rule: The value of individual projects is limited to a maximum of $150,000. Note: All projects require the specific approval of Land Transport NZ regional staff. Details of individual projects must be held by the road controlling authority for audit purposes.

66 Page Activity class 8 Use of the land transport system Introduction Work defined in this section is eligible for funding within activity class 8: Use of the land transport system, or activity class 7: Regional development. Policy being developed Applicants should note that Land Transport NZ is currently developing policy and operational procedures in the area of use of the land transport system. Applicants should discuss proposed activities with Land Transport NZ s regional staff as early as possible. W/C 411: Regional transport studies This work category provides for transport studies undertaken by regional authorities. Applications will be considered on a case-by-case basis. Examples of qualifying work: multi-modal package studies passenger transport studies passenger transport models refer also to section Passenger transport studies and models enable the benefits and costs of potential passenger transport services and infrastructure projects to be predicted with improved confidence. Passenger transport models and studies are generally relevant to: policy issues such as land-use strategies and travel demand management issues modelling at a network level (but not at an individual route or project level), where users have the choice of alternative routes or modes passenger transport policies and strategies projects with network-wide effects. Terms of reference: A terms of reference for the study must be approved by Land Transport NZ. The terms of reference must include: a purpose statement the issues to be addressed (problem definition) the methodology to be used the timeframe the deliverables/outputs, and the cost estimate.

67 Page Activity class 8 Use of the land transport system, continued W/C 411: Regional transport studies, continued Programming: This work category excludes regional land transport strategies, which are funded under work category 631: Regional land transport planning. This work category excludes road network transportation studies carried out by road controlling authorities. These studies are programmed by road controlling authorities under work category 311: Road studies. W/C 412: System use studies This work category provides for studies on use of the land transport system, excluding passenger transport studies. Such studies and strategies should address both safety and sustainability in an integrated manner. Interventions should involve an appropriate package of community coordination, education, improvements to services, improvements to infrastructure, enforcement and, in some cases financial incentives. Examples of qualifying work: travel demand management studies and development of strategies travel behaviour change studies and development of strategies walking and cycling strategies refer to section 4.34 studies for high occupancy lanes (HOL) and tidal flow schemes. Travel demand management activities encourage use of modes of travel other than private motor vehicle and reduce the overall requirement for travel. Travel behaviour change activities do this by encouraging voluntary change in personal or private travel behaviour by providing consumer information and encouragement. These activities should be part of a package that also includes improvement to passenger transport services, walking and cycling facilities, etc. Terms of reference: Funding for system use studies is subject to a terms of reference for the study being approved by Land Transport NZ. The terms of reference must include: a purpose statement the issues to be addressed (problem definition) the methodology to be used the timeframe the deliverables/outputs, and the cost estimate.

68 Page Activity class 8 Use of the land transport system, continued W/C 412: System use studies, continued Programming: Implementation of travel demand management and travel behaviour change activities, except travel planning and neighbourhood accessibility planning, is funded under work category 421: Travel demand management. Travel planning and neighbourhood accessibility planning are funded under work category 432: Community programmes. Passenger transport studies are funded under work category 411: Regional transport studies. Regional walking and cycling strategies are funded under work category 631: Regional land transport planning.

69 Page Activity class 8 Use of the land transport system, continued W/C 421: Travel demand management This work category provides for implementation of travel demand management activities, excluding travel planning and neighbourhood accessibility planning. Travel demand management (TDM) strategies and programmes are described in chapter 2 of Land Transport NZ s Economic evaluation manual, volume 2. TDM has the objective of encouraging private motor vehicle users to use alternative, more sustainable, means of transport when appropriate, while also reducing total vehicle kilometres travelled. Travel demand management funding applications will be considered on a caseby-case basis. Examples of activities: road pricing and tolling parking studies parking pricing land-use change including access management urban design and renewal Refer to section 4.31 for further explanation of the conditions under which financial assistance is provided for travel demand management activities. continued

70 Page Activity class 8 Use of the land transport system, continued W/C 421: Travel demand management, continued Supporting information: Financial assistance under this work category is subject to the following supporting information being provided: risk analysis for projects with a present value of the funding gap of greater than $1 million a detailed outline and costing of a monitoring programme and postimplementation review of effectiveness. Monitoring and evaluation: Monitoring and evaluation of travel demand management activities must be undertaken in accordance with the appropriate Land Transport NZ procedure. Programming: Studies and development of strategies for travel demand management, travel behaviour change, and walking and cycling are funded under work category 412: System use studies. Travel behaviour change, including the preparation of travel plans and associated education and promotion initiatives are funded under work category 432: Community programmes.

71 Page Activity class 8 Use of the land transport system, continued W/C 431: Community coordination This work category provides for community coordination activities. Community coordination has the objectives of: encouraging community participation in land transport decision-making assisting communities to identify their land transport issues and develop their own informed solutions increasing the community s capacity to address local land transport issues transferring expertise to communities developing and motivating local partnerships integrating activities at the local level generating insight on local land transport issues and new ideas that can be further developed for wider application. The activities in this work category should address all aspects of safe and sustainable use of the land transport system. To qualify for funding under the community coordination work category, activities must relate to safe and sustainable use of the land transport system. Territorial authorities are encouraged to cluster for purposes of employing community coordinators. Examples of qualifying activities: ongoing coordination and facilitation (for road safety, neighbourhood accessibility planning (safer routes), travel behaviour change and travel planning) provision of integrated advice, information and support to community groups evaluation and reporting of community focused activities education and training for coordinators and community groups. Note: This work category excludes development of LTPs and LTCCPs. The costs associated for this work is part of work category 621: Territorial authority administration support. Programming: Preparation and implementation of travel plans and neighbourhood accessibility plans (formerly Safer Routes) are funded from work category 432: Community programmes.

72 Page Activity class 8 Use of the land transport system, continued W/C 432: Community programmes This work category provides for implementation of the following community focused activities relating to safe and sustainable use of the land transport system: preparation of travel plans and neighbourhood accessibility plans (collecting information, consultation, identifying issues, deciding on and designing interventions) delivery of education initiatives defined in travel plans or neighbourhood accessibility plans delivery of programmes that have been evaluated and endorsed by Land Transport NZ delivery of education initiatives developed in conjunction with community groups. Travel behaviour change (TBhC) includes activities that encourage voluntary change in personal or private travel behaviour by providing consumer information and encouragement. Travel planning is one technique for TBhC. The Land Transport NZ/EECA Travel behaviour change guidance handbook provides advice on developing and implementing TBhC programmes. Examples of activities: consulting with a specific community to assess safety and accessibility issues, and working with the community to develop appropriate solutions education or awareness-raising activities addressing a clearly identified local land transport safety, accessibility or sustainability issue workshops, seminars and public meetings promoting local land transport safety, accessibility or sustainability issues, for example, presentations by health professionals on child restraint use, or the health gains of walking and cycling awareness-raising media activities, for example, brochures or newspaper articles promoting local road safety, walking or cycling issues or projects road safety, walking or cycling displays small scale information gathering activities about a locally identified land transport issue - for example, attitudes of young people in a specific locality to wearing rear seat restraints promotion and financial assistance for activities such as alternative work schedules, guaranteed ride home, use of non-motorised transport, car pooling, telework and commuter financial incentives.

73 Page Activity class 8 Use of the land transport system, continued W/C 432: Community programmes continued Community programmes should be part of a local strategy that addresses community safety and sustainability outcomes identified in the local authority LTCCP. The following do not qualify for Land Transport NZ funding under this work category: advertising campaigns (these are funded under work category 433: Community advertising) road engineering, signs or markings (these are funded under road improvement work categories). Supporting information: Financial assistance under this work category for non-standard programmes is subject to the following supporting information being provided: description of the individual activities or programmes to be delivered description of the target audience and objective for each activity or programme a detailed outline and costing for a monitoring programme and postimplementation evaluation of effectiveness. Programming: Community programme activities can be packaged with supporting infrastructure or service related activities from other work categories. Supporting walking and cycling facilities that may be associated with travel plans are covered under work category 451: Pedestrian facilities and 452: Cycle facilities. Supporting passenger transport services and facilities that may be associated with travel plans are covered under activity class 9: Passenger transport.

74 Page Activity class 8 Use of the land transport system, continued W/C 433: Community advertising This work category provides for implementation of all forms of advertising to support community initiatives that address safe and sustainable use of the land transport system, including: outdoor advertising, such as billboards local print media advertising local radio advertising local television advertising. This advertising may address the same general issues that are the focus of national advertising (currently speed, drink-driving, safety belts, and failure to give way at intersections, but to be broadened in the future) but should be specific to the local area or community. Community advertising should also address issues identified as being specific to the area (eg, walking and cycling). Programming: Community advertising should support community programmes and also infrastructure or service related improvements funded from other work categories. Technical approval: The content of community advertising is subject to technical approval by Land Transport NZ.

75 Page Activity class 8 Use of the land transport system, continued W/C 441: Rail freight operations This work category provides for the provision of rail freight services that remove freight vehicles from the road and thereby reduce costs to road controlling authorities. Any approved investigation of a rail freight activity will also be funded under this work category. Examples of investigations: identify, investigate the feasibility of, assess and report on the various alternative project or service options for non-roading proposals select a preferred option prepare a preliminary assessed project cost complete a scheme assessment where required prepare an assessment profile and benefit-cost ratio (BCR). Refer to section 3.8 for the financial assistance policy relating to rail freight operations, and section 4.31 for further explanation of the eligibility criteria. continued

76 Page Activity class 8 Use of the land transport system, continued W/C 441: Rail freight operations, continued Terms of reference: A terms of reference for investigation of rail freight proposals must be approved by Land Transport NZ. The terms of reference must include: a purpose statement the issues to be addressed (problem definition) a list of possible alternatives and options the methodology to be used the timeframe the deliverables/outputs, and the cost estimate. Supporting information: Financial assistance for implementation projects under this work category is subject to the following supporting information being provided: risk analysis for projects with a present value of the funding gap of greater than $1 million audit of road user benefits confirmation that the roading alternative is not constrained by the regional land transport strategy a rigorous assessment and economic efficiency evaluation has been undertaken.

77 Page Activity class 8 Use of the land transport system, continued W/C 442: Sea freight operations This work category provides for the provision of sea freight services that remove freight vehicles from the road and thereby reduce costs to road controlling authorities. Any approved investigation of a sea freight activity will also be funded under this work category. Examples of investigations: identify, investigate the feasibility of, evaluate and report on the various alternative project or service options for non-roading proposals select a preferred option prepare a preliminary assessed project cost complete a scheme assessment where required prepare an assessment profile and BCR. Refer to section 3.8 for the financial assistance policy relating to sea freight operations, and section 4.31 for further explanation of the eligibility criteria. continued

78 Page Activity class 8 Use of the land transport system, continued W/C 442: Sea freight operations, continued Terms of reference: A terms of reference for investigation of sea freight proposals must be approved by Land Transport NZ. The terms of reference must include: a purpose statement the issues to be addressed (problem definition) a list of possible alternatives and options the methodology to be used the timeframe the deliverables/outputs, and the cost estimate. Supporting information: Financial assistance for implementation projects under this work category is subject to the following supporting information being provided: risk analysis for projects with a present value of the funding gap of greater than $1 million audit of road user benefits confirmation that the roading alternative is not constrained by the regional land transport strategy a rigorous assessment and economic efficiency evaluation has been undertaken.

79 Page Activity class 8 Use of the land transport system, continued W/C 451: Pedestrian facilities This work category provides for the construction/implementation of new pedestrian facilities. Limitation: To qualify under this work category, the facilities must: form part of a transport network integrating walking and cycling with other transport modes be identified either specifically or generically in a current walking and/or cycling strategy induce higher numbers of pedestrians (or reduce the rate of decline), and not be an integral part of a new improvement project. Examples of qualifying work: new footpaths pedestrian crossings kea crossings kerb ramps signage widening the existing carriageway to improve pedestrian access pedestrian shelters (excluding shelters that are primarily provided for waiting for, or getting to or from, passenger transport) pedestrian overbridges/underpasses. Notes: This work category includes all markings, traffic signals, lighting, etc necessary to bring the facility into service. New and replacement bus and ferry shelters are provided for under work category 514: Bus and ferry facilities maintenance and operations. Refer to section 4.13 for further explanation of the conditions under which financial assistance is provided for pedestrian facilities.

80 Page Activity class 8 Use of the land transport system, continued W/C 452: Cycle facilities This work category provides for the construction/implementation of new cycle facilities. Limitation: To qualify under this work category, the facilities must: form part of a transport network be identified either specifically or generically in a current cycling and/or walking strategy induce higher numbers (or reduce the rate of decline) of cyclists improve safe access for cyclists, and not be an integral part of a new improvement project. Examples of qualifying work: bicycle parking kerb ramps bicycle racks signage cycle lanes on bridges separate cycling carriageways widening the existing carriageway to provide cycle lanes. Notes: This work category includes all markings, traffic signals, lighting, etc necessary to bring the facility into service. Refer to section 4.9 for further explanation of the conditions under which financial assistance is provided for cycle facilities.

81 Page Activity class 9 Passenger transport Introduction The passenger transport activity class provides for bus, ferry and rail passenger transport managed by regional authorities. W/C 511: Bus services This work category provides for contracted bus passenger transport services that are directly part of the service level provision agreed between Land Transport NZ and each regional authority and are consistent with the region s passenger transport plan. Examples of eligible on-bus operational expenditure: existing services new services increased service levels (frequency, comfort and accessibility) electronic ticketing (related specifically to on-vehicle operations only) security systems (related specifically to on-vehicle operations only). Programming: Off-vehicle operational acitivities and bus facility and car park leases and maintenance are all included in work category 514: Bus and ferry facilities maintenance and operations. Bus services administration is funded under work category 632: Passenger transport administration in activity class 10: Administration.

82 Page Activity class 9 Passenger transport, continued W/C 512: Ferry services This work category provides for contracted ferry passenger transport services that are directly part of the service level provision agreed between Land Transport NZ and each regional authority and are consistent with the region s passenger transport plan. Examples of eligible on-ferry operational expenditure: existing services new services increased service levels (frequency, comfort and accessibility) electronic ticketing (related specifically to on-vessel operations only) security systems (related specifically to on-vessel operations only). Programming: Off-vessel operational acitivities and ferry facility and car park leases and maintenance are all included in work category 514: Bus and ferry facilities maintenance and operations. Ferry services administration is funded under work category 632: Passenger transport administration in activity class 10: Administration. W/C 513: Bus and ferry concession fares This work category provides for contracted bus and ferry concession fares that are part of the service level provision agreed between Land Transport NZ and each regional authority.

83 Page Activity class 9 Passenger transport, continued W/C 514: Bus and ferry facilities maintenance and operations This work category provides for maintenance and operation of bus and ferry facilities and equipment associated with the provision of such services and owned by an approved organisation. Examples of eligible maintenance and operational qualifying work: bus and ferry facility maintenance or shelter construction ticketing systems (off-vehicle, operational related) marketing and promotion activities timetable information and displays real-time information for bus and ferry passenger services bus and ferry facility and car park leases, maintenance and general security. Construction of new and replacement shelters and facilities up to a value of $12,000 each may also be included under this work category. Note: Adshell subsidised shelters do not qualify for financial assistance from Land Transport NZ.

84 Page Activity class 9 Passenger transport, continued W/C 515: Passenger rail services This work category provides for contracted passenger services undertaken by rail that are directly part of the service level provision agreed between Land Transport NZ and each regional authority and are consistent with the region s passenger transport plan. Examples of eligible passenger on-rail operational expenditure: existing services new services increased service levels (frequency, comfort and accessibility) electronic ticketing (related specifically to on-vehicle operations only) security systems (related specifically to on-vehicle operations only). Programming: Off-vehicle operational acitivities and rail facility and car park leases and maintenance are all included in work category 516: Passenger rail facilities maintenance and operations. Passenger rail administration is funded under work category 632: Passenger transport administration in activity class 10: Administration. W/C 516: Passenger rail facility maintenance and operations This work category provides for maintenance and operations of facilities and equipment associated with the provision of passenger rail services. Examples of maintenance and operational qualifying work: ticketing systems (off-vehicle, operational related) marketing and promotion activities timetable information and displays real-time information for passenger rail services passenger rail facility and car park leases, maintenance and general security. Rule: Only facilities owned by an approved organisation are eligible for funding. Note: This work category excludes passenger rail facilities in Auckland.

85 Page Activity class 9 Passenger transport, continued W/C 517: Total mobility services This work category provides for contracted discount taxi fare schemes for the disabled. The work category includes the operation of dial-a-ride schemes where: the customers of a service are people whose disabilities are such that they would qualify for assistance under the Total mobility scheme the service has been put out for tender under Land Transport NZ s procurement procedures. Programming: Total mobility administration is funded under work category 633: Total mobility administration. W/C 518: Total mobility facilities maintenance and operations This work category provides for the maintenance and operation of facilities and equipment associated with the total mobility scheme. Examples of eligible expenditure: total mobility ticketing systems purchase and installation of new wheelchair hoists in vehicles. W/C 519: Replacement wheelchair hoists This work category provides for the provision of replacement wheelchair hoists in taxi vehicles used for the provision of total mobility services. W/C 520: Passenger transport services management This work category provides for Auckland Regional Transport Authority s (ARTA) professional services activities associated with the operation and maintenance of bus, rail and ferry services. Professional services are defined in section Programming: General administration for ARTA is programmed under work category 632: Passenger transport administration in activity class 10: Administration.

86 Page Activity class 9 Passenger transport, continued W/C 521: Total mobility flat rate payments This work category provides for the provision of a flat rate payment (in addition to the fare) of $10.00 (GST incl.) to the contracted Total mobility transport operator for each trip taken by a Total mobility scheme member using a wheelchair hoist or ramp mechanism. To be eligible to receive the flat payment, the following criteria must be met by the transport operator: the operator must be providing a commercial transport service (non-profit organisations and community trusts are not eligible for the flat payment) the operator must hold a small passenger service licence or be a member of an approved taxi organisation; the transport operator must be contracted by the regional authority to provide Total mobility transport services the fare meter must not operate while Total Mobility passengers are being loaded into or out of the vehicle only one flat payment may be claimed per wheelchair hoist/ramp trip (the $10.00 payment is per trip, not per passenger). W/C 531: Bus and passenger ferry infrastructure This work category provides for new or improved bus, passenger ferry or multimodal passenger transport infrastructure. Examples of qualifying work: ticketing system infrastructure real-time information system infrastructure multi-modal park and ride improvements bus, ferry or multi-modal passenger interchanges or terminals. Programming: New and replacement facilities up to a cost of $20,000 each may be included under work category 514: Bus and ferry facilities maintenance and operations. Passenger rail infrastructure is funded under work category 532: Passenger rail infrastructure.

87 Page Activity class 9 Passenger transport, continued W/C 532: Passenger rail infrastructure This work category provides for rail passenger transport infrastructure improvements including that owned by the Crown, and passenger rail rolling stock. Examples of qualifying work: rolling stock real-time information system infrastructure station, terminal, shelter and facility improvements park and ride improvements signalling upgrading pedestrian access to rail stations. Note: This work category excludes passenger rail infrastructure in Auckland. W/C 533: Passenger transport road improvements This work category provides for passenger transport related infrastructure on any road constructed or re-designated specifically to enable priority movements by high occupancy road vehicles. Examples of qualifying work: bus ways created for high occupancy road vehicles only road widening to provide a bus priority lane intersection improvements to provide bus priority measures construction of bus bays. Programming: Any other road related improvement is outside of the passenger transport activity class.

88 Page Activity class 10 Administration Introduction The administration activity class provides for administration by approved organisations associated with land transport activities. See section 2.12 of this manual for a description of these activities. W/C 611: State highway administration This work category provides for administration of the state highway system by Transit NZ. W/C 621: Territorial authority administration support This work category provides for support to territorial authorities for a commitment to the following areas: competent management of consultants or their own professional services business units the efficient operation of management systems the timely and accurate provision of the various reports required by Land Transport NZ district land transport programme development and management. W/C 631: Regional land transport planning This work category provides for the following regional council statutory land transport activities: the administration cost of regional land transport programme preparation regional land transport committee servicing regional land transport strategy development, maintenance and reporting. Programming: This category excludes road studies, regional transport studies and regional passenger transport plans. Road studies are programmed by road controlling authorities under work category 311: Road studies. Regional transport studies are programmed by regional authorities under work category 411: Regional transport studies. Regional passenger transport plans are programmed by regional authorities under work category 632: Passenger transport administration.

89 Page Activity class 10 Administration, continued W/C 632: Passenger transport administration This work category provides for the following regional authority activities, other than regional land transport planning: registration of bus, ferry and rail passenger transport services management of bus, ferry and rail passenger transport contracts and monitoring of services provision and evaluation of passenger transport data including those activities put out to tender management of database systems used to assist running the passenger transport system such as a rideline database management of marketing and promotion initiatives used to assist the uptake and retention of passenger transport within the region the administration cost of regional passenger transport plan development, maintenance and reporting. Programming: For ARTA this work category provides for work solely related to general administration as set out in section Operational professional service work for ARTA is programmed under work category 520: Passenger transport services management. Non-admistration related operational expenditure for systems databases and marketing initiatives are programmed by regional authorities under work category 514: Bus and ferry facilities maintenance and operations, work category 516: Passenger rail facilities maintenance and operations or 518: Total mobility facilities maintenance and operations. W/C 633: Total mobility administration This work category provides for the following regional authority administration activities: registration of total mobility agencies, services, users and allocation of total mobility and wheelchair related flat payment trips management of total mobility services, monitoring total mobility users and the allocation of total mobility and wheelchair related flat payment trips implementation and management of database systems used to assist the running of the total mobility scheme.

90 Page Activity class 11 Road policing Introduction This activity class is part of Land Transport NZ s land transport programme (the ALTP) that is approved by the Minister of Transport see section 1.5. Activities to be delivered by NZ Police are required by the LTMA to be included in the NLTP. Activities in this activity class are funded from the national land transport fund rather than from Land Transport NZ s National land transport account. W/C 711: Strategic road policing This work category provides for NZ Police strategic road policing activities. These activities include: Speed control - Detection and deterrence of speed offending, including enforcement activities at identified speed black spots, through: directed patrols using radar and laser speed detection apparatus traffic surveillance using radar and laser speed detection apparatus traffic surveillance using mobile and fixed speed cameras throughout New Zealand evaluation of photographs taken by speed cameras issuing traffic and infringement offence notices and prosecution follow-up by issuing officers. Drinking and/or drugged driver control - Detection and deterrence of drink-drive offending and targeting recidivist drink-drivers through: directed patrols for compulsory breath test (CBT) and mobile breath test (MBT) activities traffic surveillance conducting examinations of alcohol- or drug-impaired drivers and subsequent forensic analysis of blood samples issuing traffic offence notices and prosecution follow-up by issuing officers enhanced alcohol CBT projects covering all Police districts purchase of alcohol and drug intelligence and prevention services across all Police districts. continued

91 Page Activity class 11 Road policing, continued W/C 711: Strategic road policing, continued Restraint device control - Enforcement of breaches of front, rear and child restraint usage law through: directed patrols traffic surveillance issuing traffic and infringement offence notices and prosecution follow-up by issuing officers. Visible road safety and general enforcement Enforcement addressing the road code and traffic laws covering areas such as: intersections overtaking vehicle fitness (including smoky and noisy vehicles) cyclists pedestrians following distances lane-driving discipline driver licensing helmet wearing unauthorised street and illegal drag racing obscured and missing registration plates. continued

92 Page Activity class 11 Road policing, continued W/C 711: Strategic road policing, continued Commercial vehicle investigation (CVI) and road user charges (RUC) enforcement 5 - Risk targeted enforcement of driver and transport licensing, driving hours and log books, passenger safety, vehicle and load dimensions, vehicle road and bridge weight limits, load security and the safe carriage of dangerous substances on land, commercial vehicle fitness, road user charges, heavy vehicle speed, alcohol and drug use by commercial drivers and commercial vehicle driver restraints by the Police commercial vehicle investigation unit (CVIU) through: intelligence and offence data gathering, analysis and dissemination through RTPPs commercial vehicle surveillance and investigation targeted commercial vehicle enforcement delivered at Transit NZ weighbridges targeted mobile commercial vehicle enforcement services delivered at roadsides commercial vehicle safety inspection environmental enforcement (noisy and smoky vehicles) targeted heavy motor vehicle speed operations (supplementary to the Highway Patrol and speed control outputs) issuing traffic and infringement offence notices and follow-up by the issuing officer. 5 This activity is subject to a high level review of CVIU activities currently being undertaken by the Ministry of Transport.

93 Page Activity class 11 Road policing, continued W/C 712: Incident and emergency management This work category provides for NZ Police incident, emergency and traffic management activities. These activities include: Crash attendance and investigation Management of road crash and investigation of cause factors through: management of crash sites, including preservation of life and safeguarding property collection, preservation and forensic examination of physical evidence conducting enquiries with other road users and witnesses, and preparation of files for judicial and coronial hearings support for traffic crash victims prompt resumption of safe traffic flows at crash sites completion of the Large bus and truck crash report for crashes attended by the CVIU completion of traffic crash reports ensuring special attention is focused on the accurate recording and classification of all injuries sustained by any person involved in a crash. Traffic management services Management of road traffic through: evacuation and patrol services during incidents, emergencies and disasters to facilitate resumption of safe traffic flows at affected areas traffic management services at civic and sporting events management of traffic as appropriate, for example: o in metropolitan and provincial cities during holiday periods o arising from vehicle breakdowns o where traffic control devices fail.

94 Page Activity class 11 Road policing, continued W/C 713: Road policing resolutions This work category provides for NZ Police management of sanctions, prosecution and court orders through: processing of traffic infringement and offence notices prosecution of offences against the Transport Act 1962, the Land Transport Act 1998 and the Traffic Regulations, in open court processing of limited licence applications the execution of warrants to arrest, fines warrants and other warrants, and the serving of summonses and other minor offence notices generated under the Transport Act (court documents). W/C 714: Community engagement This work category provides for NZ Police for community engagement activities. These activities include: Police community services - Support for road safety through: community road safety liaison and consultation (attendance at meetings, the provision of information, etc) assisting with the development and delivery of road safety action plans participation in the Community road safety programme as agreed and planned at the local level. School road safety education Management and delivery of Police school road safety education services to schools, including the development of road safety education programmes. School road safety education services and training of school traffic safety teams are delivered by trained, sworn Police education officers (PEOs). Monitoring of school traffic safety teams can be delivered by PEOs or other sworn Police staff who have completed school patrol monitoring training.

95 Page Activity class 12 Research, education and training Introduction This activity class covers research, education and training activities approved by Land Transport NZ under section 21 of the LTMA. These activities are required by the LTMA to be shown in the NLTP. W/C 811: Research programme This work category provides for research activities managed by Land Transport NZ. The research is contracted out to external researchers. Research is conducted in the following areas in accordance with Land Transport NZ s research strategy: asset management natural hazard risk management safety and personal security environmental effects travel behaviour change traffic management sustainable land transport. W/C 812: National education and training programme This work category provides for national education and training activities managed by Land Transport NZ. The activities, which are contracted out to external service deliverers, include: national advertising on land transport related issues national promotion of walking and cycling and other land transport related issues nationally managed school-based education on land transport issues other land transport education and training eg, professional development support associated with community focused activities, bursaries for postgraduate studies, and support of land transport related academic programmes. Education and training activities managed and delivered at the local level are included in the NLTP under the community programmes work category rather than in the research, education and training activity class. Advice and assistance to approved organisations is part of the Land Transport NZ programme management activity class rather than the research, education and training activity class.

96 Page Activity class 13 Programme management Introduction This activity class covers Land Transport NZ activities associated with preparation and management of the ALTP, the NLTP, the research programme, and the national education and training programme and associated matters. W/C 911: Programme management This work category provides for management of: the national land transport account (NLTA) the NLTP the ALTP the research programme the national education and training programmes procurement procedures, policies and guidelines funding agreements with approved organisations. W/C 912: Performance monitoring This work category provides for monitoring and reporting on the performance of the land transport system. W/C 913: Crash analysis system This work category provides for management of the crash analysis system (CAS). W/C 914: Information on use of the land transport system This work category provides for provision of information and education to users of the land transport system.

97 Page Project cost components Introduction Land Transport NZ makes a distinction between: administration, and professional services. Rule: Output-based agreements with in-house professional services business units and contracts for network and professional services must clearly identify the separation of these activities. Refer to chapter 8 for procurement procedures relating to administration and professional services. Inclusion in project cost Administration is not part of the cost of a project for Land Transport NZ funding purposes. It is funded separately under activity class 10: Administration. Professional services are part of the cost of a project and are included within each of the work categories defined in this chapter (except Administration ).

98 Page Project cost components, continued Professional services Professional services are technical inputs to an approved activity undertaken by persons skilled in fields relevant to that activity. Professional services include the following: developing activities for inclusion in land transport programmes coordination and facilitation with community groups project development (data collection, risk identification, assessment of components and options, establishment and operation of working groups, consultation and communication with stakeholders) project design for education projects (preparation of action plan, preparation of detailed plan for education and advertising components, obtaining community agreements) planning, investigation and design of maintenance, renewal and improvement projects preparing contracts and evaluating tenders managing and administering project delivery (performance and quality monitoring, managing and administering contracts) investigating and resolving public enquiries project evaluation (data collection, outcome evaluation, submission of project specific information to Land Transport NZ) undertaking: system use studies transport planning, traffic management and strategy studies safety audits and crash reduction studies road network and road corridor studies continued

99 Page Project cost components, continued Professional services, continued preparing: project feasibility reports asset/activity management plans project development reports project management plans safety management strategies environmental management strategies gathering information: for activity management systems (carrying out ratings, and ensuring all data on completed work is kept up to date) obtaining building and resource consents legalising existing transport corridors providing: road condition information contract dispute resolution services management consultancy services property management services specialist advice related to activities funded by Land Transport NZ consulting landowners and affected parties (project specific) reporting: on activity based contracts on physical and financial performance of physical works contracts on the physical condition and performance of the land transport system and its components, including recommendations for maintaining, enhancing, or disposing of assets.

100 Page Project cost components, continued Administration Administration activities that are approved by Land Transport NZ for purposes of section 26(b) of the LTMA are: approving and administering policy and standards, risk and levels of service approving, administering and monitoring activity management plans owning management systems and databases managing a land transport disbursement account preparing financial assistance claims preparing, collating, editing and reviewing LTCCPs, annual plans, LTPs, RPTPs, RSAPs, and longer-term programmes administering database of tenderers providing data and information to Land Transport NZ, Audit NZ, etc managing and administering communications plans and strategies preparing and administering service agreements or contracts with professional services providers (internal and external) evaluating and accepting tenders for professional services undertaking financial processes, management accounting and reporting developing and operating land transport business support systems meeting statutory responsibilities, including audit fees and tax advice fees managing and administering registered commercial services under the Transport Services Licensing Act 1989 accepting physical works tenders servicing democracy, including providing customer/ ratepayer interface. Funding for these activities is provided for under activity class 10: Administration. Note: Any administration activity must be related to land transport. Programming: For regional authorities, excluding ARTA, administration activities are set out in work category 632: Passenger transport administration.

101 Page 3-1 Chapter 3 Financial assistance 3.1 Overview Introduction This chapter explains Land Transport NZ s financial assistance policies. In this chapter This chapter contains the following sections: Section Page 3.1 Overview Local road maintenance and renewals Establishment of base rates Local road improvement State highways Special purpose roads Emergency reinstatement Use of the land transport system Passenger transport Administration Multi-party projects 3-28

102 Page Local road maintenance and renewals Introduction This section sets out Land Transport NZ s financial assistance policy for maintenance and renewal activities on local roads, except special purpose roads. Financial assistance All qualifying work in activity classes 1 and 3, other than: work on special purpose roads refer to section 3.6 work category 141: Emergency reinstatement refer to section 3.7 work category 131: Level crossing warning devices work category 171: Financial grants receives financial assistance from Land Transport NZ at a base rate determined for the territorial authority involved. Note: The following conditions apply: the base rate varies from one territorial authority to another the minimum base rate is 43 percent. Level crossing warning devices The relevant rail track authority and the territorial authority share equally the cost of installation and maintenance of crossing alarms and barriers. Where under a deed of grant by the relevant rail track authority, a territorial authority is required to pay the full cost, this cost is accepted for financial assistance. Land Transport NZ reimburses the territorial authority for its share of the cost. Financial grants A financial grant is a lump sum payment by Land Transport NZ.

103 Page Establishment of base rates Introduction The base rate of financial assistance for a territorial authority takes into account: the size of the territorial authority s land transport programme, and the financial resources available to the territorial authority. Base rate determination When determining a base rate, Land Transport NZ uses, for its indicator of financial assistance, the relationship between programme size and net equalised land value. The programme taken into account is the block road maintenance allocation refer to section 5.4. The relationship used is shown in figure 3.1 on the next page. Net equalised land value Land Transport NZ has adopted the net equalised rateable land value as an indication of the financial resources available to a territorial authority. This decision was made after extensive research and discussion and is considered to most fairly reflect the relativity between territorial authorities. Land Transport NZ recognises that rapid movement in land value can occur and, to allow for this effect, has adopted the arithmetic average of the five most recent valuations. Other information considered In making decisions on financial assistance rates, Land Transport NZ also takes into account such other information as it has available which has a bearing on the level of assistance needed, noting that: all territorial authorities are considered on the same basis each territorial authority receives the level of assistance that Land Transport NZ considers appropriate to the size of its land transport programme and the relative circumstances that apply.

104 Page Establishment of base rates, continued Figure 3.1 Base rate formula Indicated Financial Assistance Base Rate (%) P/LV Formula: IBR = k 1 + k 2 log (P/LV) Where: IBR = indicated financial assistance base rate for the following year (%) P = current year s initial block road maintenance allocation ($ thousands) LV = five-yearly averaged net equalised rateable land value ($ millions) k 1 k 2 } = constants which are established to give a national indicated FAR of 50%

105 Page Establishment of base rates, continued Other factors considered in base rate determination Land Transport NZ stresses that the base rate formula provides only an indication of the level of assistance. To this is added Land Transport NZ s judgement of the circumstances of each territorial authority. The factors taken into account in deciding on the base rate are: base rate indicators for the current and previous two years approved base rates for the current and previous two years the base rate indicator for the following year changes in the initial block road maintenance allocation from one year to the next the change in net equalised land value the resultant change in local share. Base rate reviews Land Transport NZ reviews all base rates of financial assistance in November each year. This allows six months notice to be given to territorial authorities before the start of the financial year in which the new rates apply. Of necessity, this means the current year s initial block allocation is used to determine the following year s approved financial assistance rate. Once set, the financial assistance rate will remain unchanged until the full review is again carried out. Only in exceptional circumstances will Land Transport NZ consider a review of financial assistance rates at other times. Any supplementary funds approved at monthly programme reviews will be at the financial assistance rate previously set. Note also that the formula provides an initial indication of the relative level of assistance to be provided. Land Transport NZ will then exercise its discretion in making its decision on the financial assistance rate to be set. Minor changes Land Transport NZ wishes to retain a degree of stability in the financial assistance rates set and therefore will avoid making minor changes to base rates. As a general guide, Land Transport NZ does not respond to differences of up to ± 2% between existing base rates and those indicated unless there has been a trend occurring for two successive years. Significant changes Where a significant change is indicated, either up or down, phasing of the effects is considered. An exception is where territorial authorities with normally small programmes have introduced work into their programmes that causes a large but temporary change in the appropriate level of assistance.

106 Page Establishment of base rates, continued Summary of base rate policy In summary, the base rate policy is applied as follows: Where: Then: no specific margin is recommended the base rate indicator for the following year is greater than ±2% from the current year s base rate. a move is made towards the indicated rate by half the difference, or such as to be within ±2% of the indicator, whichever is the lesser adjustment. Note: Territorial authorities are generally given the advantage of the odd ½%. less than or equal to ±2% from the current year s base rate. no change is made unless the same trend has been shown for two successive years. Note: Some discretion is exercised if the resultant change in local share is more than ±20%, or if the change in net equalised land value is greater than three times the national average.

107 Page Local road improvements Introduction This section sets out Land Transport NZ s financial assistance policy for improvement of local roads. Financial assistance All qualifying work in activity class 5: Improvement of roads, other than on special purpose roads, receives financial assistance from Land Transport NZ at a construction rate equal to the base rate plus 10 percent. Note: The following conditions apply: work under work category 341: Minor improvements receives financial assistance at the construction rate once the construction rate is set for an individual project, or phase of a project, it will remain constant until the project or phase is completed. Investigation and design phases The financial assistance rate for the investigation and design phases of an improvement project will be the same as the rate applicable to the construction phase. Special financial assistance for local road improvement projects that benefit state highways Local road improvement projects that meet the following criteria may, at Land Transport NZ s discretion, be partly funded as a state highway improvement project in activity class 6: Improvement of state highways. The criteria are that: greater state highway benefits can be purchased per dollar when compared to upgrading the state highway Transit NZ and the local authority, in consultation with Land Transport NZ, have agreed that the project is the best investment option Transit NZ and the local authority, in consultation with Land Transport NZ, have agreed on attribution of benefits and construction costs the project is unlikely to proceed if left to the local authority ie, funded at normal financial assistance rates. Rule: Normal financial assistance rates shall apply to each party s share of the cost of improvements. Arrangements for maintenance and renewal may differ on a case-by-case basis.

108 Page State highways Introduction This section sets out Land Transport NZ s financial assistance policy for state highways. State highways are those roads declared as such under: section 11 of the National Roads Act 1953, or the Transit New Zealand Act Financial assistance Qualifying work relating to state highways receives financial assistance from Land Transport NZ at a financial assistance rate of 100 percent.

109 Page Special purpose roads Introduction This section sets out Land Transport NZ s financial assistance policy for special purpose roads. Special purpose roads are those local roads that were accepted as such under section 104 (now repealed) of the Transit New Zealand Act. For the purposes of the LTMA the public body having control of the road shall be deemed to be the relevant approved organisation. Financial assistance Qualifying work relating to special purpose roads receives financial assistance from Land Transport NZ at a financial assistance rate of: 100 percent if the work is funded from activity class 1: Maintenance and operation of local roads 75 percent if the work is funded from activity class 5: Improvement of local roads 100 percent if the work is funded from work category 341: Minor improvements, unless approved otherwise by the Land Transport NZ Board. Note: The financial assistance rate for the investigation and design of improvement projects on special purpose roads is the same as for local roads refer to section 3.4.

110 Page Emergency reinstatement Introduction This section outlines: what qualifies for funding as emergency reinstatement the process for applying for financial assistance. Land Transport NZ may approve any project where in its opinion the project is necessary to effect immediate or temporary repair of damage caused by a sudden and unexpected event. Repair of such damage is usually undertaken in two separate phases: immediate response, then permanent reinstatement. Immediate response The immediate response phase covers the work necessary to reopen a road, where practicable, to at least a single lane facility for safe use by traffic or to minimise risk of further damage. This may include: slip clearance construction of temporary detours temporary reinstatement of the roadway including emergency bridging, etc restoration of roadside drainage. Note: Work undertaken in this phase is exempt from Land Transport NZ s procurement procedures. Permanent reinstatement The permanent reinstatement phase involves work that is required to restore the road to its former, or a similar, condition. As the work is of a long-term nature, it generally involves an engineering appraisal of options and may require design input. Rule: Land Transport NZ s policy on uneconomic roading facilities applies refer to section Note: Work undertaken in this phase is subject to Land Transport NZ s procurement procedure. However, if the cost of permanent reinstatement is $50,000 or less, a territorial authority has the option of undertaking the work through the contractor or business unit that is on site carrying out the immediate response work.

111 Page Emergency reinstatement, continued Damage to recently constructed/ implemented work Improvements associated with emergency reinstatement The cost of restoring any damage to work under construction/implementation or still within a maintenance period is to be a charge to that construction/ implementation work and not to the emergency reinstatement work category. Any improvements undertaken in conjunction with emergency reinstatement are subject to normal programme development and project evaluation procedures. Improvements include, for example: road widening beyond the original width easing of bends pavement strengthening seal extension upgrading of road supporting structures, such as replacing a one-lane bridge with a two-lane bridge. Notification Within one week of the events causing the damage, the asset manager should notify Land Transport NZ s regional partnership manager of such damage and request that an inspection be made. Inspection The regional partnership manager will accompany the asset manager to inspect the damage and agree on the scope of work and estimated cost necessary to repair the damage. Unless there are exceptional circumstances, this inspection and agreement shall be completed within four weeks from the date the damage occurred. Note: The regional partnership manager may use discretion in deciding whether or not an inspection is warranted.

112 Page Emergency reinstatement, continued Application Applications for emergency reinstatement funding are now to be entered via LTP online using the emergency reinstatement project type. Information requirements are stated both below and in LTP online. All applications for emergency reinstatement funding must include: a schedule showing the location and details of the damage and restoration proposed at each site the estimated cost of work the actual expenditure to be allocated in each year. Rules: Any application must be made within six weeks of the date the damage occurred, and No funds are authorised until the application is approved. Note: General rates are defined in this manual to be any rates levied on a local authority wide basis. This includes general rates and uniform annual charges (as defined in the Rating Powers Act) and any separate roading rate. Approval of allocation Land Transport NZ s partnership manager will notify the asset manager of an approved allocation of funds. Funds programmed into the following year If it is necessary to programme funds into the following year, the road controlling authority is to advise the partnership manager of the total cash flow when making the original application. A review of the following year s allocation must be made prior to the closing of the current year s accounts. Limitation to allocation of funds Financial assistance provided by an emergency reinstatement allocation must be used within two years from the date of the event unless approved otherwise. Note: Allocations for bridge renewals must be used within three years. Unexpended funds It is essential to the efficient management of the national land transport account that funds which are unexpended, or anticipated to be unexpended, by the road controlling authority are identified at the earliest review of the National land transport programme.

113 Page Emergency reinstatement, continued Advance of funds to territorial authorities Land Transport NZ has adopted the following policy for payment of advances for emergency reinstatement to territorial authorities: no advance is payable if the estimated total emergency reinstatement expenditure for a three-month period is less than 10 percent of the territorial authority s total general rate if expenditure on emergency reinstatement is in excess of the above limit, then advances will be made such that payments are in advance of claims from the funds applicable to three months emergency reinstatement expenditure (rounded to the nearest $10,000). Financial assistance rate Land Transport NZ will provide financial assistance to a territorial authority on the total cost of the emergency reinstatement within a financial year at the financial assistance rate obtained from figure 3.2 on the next page. Note: Requests falling within the shaded area of the graph may be approved by Land Transport NZ s regional partnership manager up to $500,000 Land Transport NZ share. Adjustment for underexpenditure Land Transport NZ may adjust the financial assistance rate for a financial year if actual expenditure is less than the approved allocation. Note: If the unexpended allocation is carried into the following year, another application is to be made. A new financial assistance rate will then be determined for that year.

114 Page Emergency reinstatement, continued Figure 3.2 Emergency reinstatement financial assistance rate Emergency work financial assistance rate (%) ƒ (%) Formula: ƒ = (F R) 100% Where: F = Total cost of current emergency work application plus any existing emergency work allocation (current year only) R = Total general rates for territorial authority (exclusive of GST)