Programme & Funding Manual PDF

Programme and
funding manual
Land Transport New Zealand
Published in September 2005
www.landtransport.govt.nz
Cover photos: left to right: © Stagecoach Wellington, Transit New Zealand, Auckland City
Council, Christchurch City Council, Dean Zillwood
ISBN 0–478–28946–4
Page i
Contents
Chapter 1 Introduction 1-1
Chapter 2 Work category definitions 2-1
Chapter 3 Programme development procedures 3-1
Chapter 4 Programme review procedures 4-1
Chapter 5 Reporting requirements 5-1
Chapter 6 Procurement procedures 6-1
Chapter 7 Funding policy for road controlling authorities 7-1
Chapter 8 Funding policy for regional authorities 8-1
Appendix A Consultation and communication process A-1
Index Index-1
Land Transport NZ’s Programme and funding manual Amendment 1 2nd ed

Effective from 1 August 2005
Page ii
Detailed table of contents
Chapter 1 Introduction 1-1
1.1 Purpose of this manual 1-2
1.2 Overview of Land Transport New Zealand 1-4
1.3 The National Land Transport Account 1-5
1.4 National Land Transport Programme agreements 1-8
1.5 Schedule of key dates 1-9
1.6 Definition of terms 1-10
Chapter 2 Work category definitions 2-1
2.1 Work category/activity structure 2-2
2.2 Activity classes 1 and 2 – Roading maintenance 2-6
2.3 Activity classes 3, 4 and 7 – Improvement and replacement of roads 2-24
2.4 Activity classes 5 and 7 – Transport demand management, rail and sea
2-36
freight
2.5 Activity class 6 – Passenger transport 2-44
2.6 Activity class 8 – Walking and cycling 2-52
2.7 Activity class 10 – Administration and project control 2-56
Chapter 3 Programme development procedures 3-1
3.1 Requirements of the Land Transport Management Act 3-2
3.2 Programme preparation requirements for approved organisations 3-13
Chapter 4 Programme review procedures 4-1
4.1 Monthly programme reviews 4-2
4.2 End-of-year reconciliation 4-14
Chapter 5 Reporting requirements 5-1
5.1 Achievement reports 5-2
5.2 Annual property purchase reports 5-25

Page iii
Detailed table of contents, continued
Chapter 6 Procurement procedures 6-1
6.1 Payments exempt from procurement procedures 6-2
6.2 Business units 6-3
6.3 Minor and ancillary works 6-4
6.4 In-house professional services 6-8
Chapter 7 Funding policy for road controlling authorities 7-1
7.1 Policy overview 7-2
7.2 Financial assistance policy for local roads 7-7
7.3 Emergency work policy 7-21
7.4 Specific determinations 7-30
Chapter 8 Funding policy for regional authorities 8-1
8.1 Financial assistance policy for regional authorities 8-2
Appendix A Consultation and communication process A-1

Page 1-1
Chapter 1 Introduction
Overview
Introduction This chapter provides a general introduction to this manual and describes:
• the manual’s purpose
• Land Transport New Zealand (Land Transport NZ) and its functions
• terms used in this manual.
It also sets out a timetable that identifies the key deadlines for developing and
managing the National Land Transport Programme (NLTP).
In this chapter This chapter contains 25 pages and covers the following sections:
Section Page
1.1 Purpose of this manual 1-2
1.2 Overview of Land Transport New Zealand 1-4
1.3 The National Land Transport Account 1-5
1.4 National Land Transport Programme agreements 1-8
1.5 Schedule of key dates 1-9
1.6 Definition of terms 1-10

Page 1-2
1.1 Purpose of this manual
Introduction This manual sets out policy and procedures for developing and managing the
National Land Transport Programme (NLTP).
If any clarification is required, your partnership manager should be contacted in

the first instance.
Manual structure This manual is structured as follows:
• Chapter 1 introduces Land Transport NZ, the Crown entity established under
section 66 of the Land Transport Management Act 2003 (LTMA), as amended
in 2004.
• Chapter 2 identifies the activities and defines the work categories found
within each activity class.
• Chapter 3 provides the instructions for developing the NLTP.
• Chapter 4 describes the procedure to be followed when reviewing the

funding levels of the NLTP.
• Chapter 5 identifies the reporting requirements necessary for properly

managing the financial resources, which are provided by the LTMA.
• Chapter 6 details the statutory requirement for procurement procedures,

identifies exempt works, and sets out the conditions under which approved
organisations may undertake work.
• Chapter 7 sets forth specific policy determinations of Land Transport NZ

applicable to those organisations receiving funds from the National Land
Transport Account.
• Chapter 8 outlines programme procedures and Land Transport NZ’s funding

policy for regional authorities.

Page 1-3
1.1 Purpose of this manual, continued
Amendments Funding policy amendments to this manual shall be by resolution of the Land
and distribution Transport NZ Board. Such amendments, and those which relate to procedural
matters, will be distributed free of charge to holders of this manual who are
registered with Land Transport NZ.
Copies Copies of this manual are available at a cost of $70 each; inclusive of GST,
postage, and handling from Land Transport NZ.
Phone: 0800 699 000
Email: order@landtransport.govt.nz
Electronic access This manual is also available on Land Transport NZ’s website at
www.landtransport.govt.nz

Page 1-4
1.2 Overview of Land Transport New Zealand
Principal Land Transport NZ is established by section 66 of the Land Transport

objective of Management Act 2003, as amended in 2004. The objective of Land Transport
Land Transport
NZ is to allocate resources in a way that contributes to an integrated, safe,
NZ
responsive and sustainable land transport system.
Statutory
functions and The following table details the statutory functions of Land Transport NZ.
powers of Land
transport NZ
[LTMA s69] No Function
1 To prepare and adopt a National Land Transport Programme under

section 19 of the LTMA.
2 To review and revise the National Land Transport Programme in

accordance with its most recent performance agreement.
3 To approve activities and activity classes.
4 To make payments from the National Land Transport Account as

authorised by the LTMA.
5 To approve procurement procedures under section 25 of the LTMA.
6 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.
7 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 1998.
8 To fund research, education, and training activities and activity classes.
9 To provide the Minister with any information and advice relating to Land
Transport NZ’s functions that the Minister may request.
10 To carry out any other functions relating to the funding of land transport
that the Minister requests or directs.

Page 1-5
1.3 The National Land Transport Account
The National The Land Transport Management Act (LTMA) requires that Land Transport NZ
Land Transport must operate a National Land Transport Account (NLTA).
Account
[LTMA s10]
Approval of Land Transport NZ may approve an activity or activity class as qualifying for
activities and payments from the NLTA if:
activity classes
[LTMA s20] • 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 Land Transport NZ
is satisfied that the activity class:
− assists economic development
− assists safety and personal security
− improves access and mobility
− protects and promotes public health
− ensures environmental sustainability.
In approving a proposed activity or activity class, Land Transport NZ must be

satisfied that:
• the activity or activity class is included in the National Land Transport

Programme (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
• its 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:
− the anticipated amounts the crown has payable to the authority 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.

Page 1-6
1.3 The National Land Transport Account, continued
Land transport • every approved organisation that receives funds from the NLTA must
disbursement operate a land transport disbursement account.
accounts
[LTMA s24] All money received from the NLTA by an approved organisation must be paid
into its land transport disbursement account.
Transit New Zealand (Transit NZ) must also pay into its land transport
disbursement account all other money received by Transit NZ 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 Payments may be made from a land transport disbursement account as follows:
from the land
transport • in the case of funds received by an approved organisation from the NLTA,
disbursement payments may be made only in respect of approved activities or activity
account
[LTMA s24(5)] 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 unless exempt

by or under section 26 of the LTMA (payments exempt from procurement
procedures).

Page 1-7
1.3 The National Land Transport Account, continued
Payments may As per section 36(2) and 36(3) Land Transport NZ may reduce, refuse or
be withheld in withhold payments if it considers that, in relation to an approved activity, an
certain cases
approved organisation or person:
[LTMA s36]
• 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.

Page 1-8
1.4 National Land Transport Programme agreements
Agreements Each year, Land Transport NZ will enter into National Land Transport
Programme (NLTP) 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.
Schedules to the agreements will be renewed annually, and will include the
following:
• general conditions
• performance measures and targets
• conditions of funding.

Page 1-9
1.5 Schedule of key dates
Introduction This section provides a summary of the events, which occur throughout the
programme year so that asset managers can plan for and meet deadlines. The
appropriate section in this manual is given for reference.
Note: All reports are to be sent to Land Transport NZ’s partnership manager.
Table of activity For further

No later
and reporting This activity takes place… information see
than…
deadlines section…
the 15th of Monthly programme review requests to

4.1
each month Land Transport NZ’s partnership manager
15 July National Land Transport Programme (NLTP)

agreements schedules to be signed and 1.4
returned to the partnership manager
31 July Advice of overexpenditure on approved

4.2.1
projects
31 July Final and supplemental claims due 7.2.4
31 July Annual achievement report 5.2
10 August Advice of underexpenditure on approved

4.2.2
projects
31 August Annual property purchase report 5.3
The date Submission of proposed land transport

3.2
specified* programmes from approved organisations
31 January Mid-year achievement report 5.1
The date Confirmation of proposed land transport

3.2.1
specified* programmes
The date
Confirmation of the approved NLTP 3.2.8
specified*
*The date specified means the date specified in Land Transport NZ’s annual
instructions for developing land transport programmes.
Note: Where any of the dates listed above fall on a weekend or public holiday
the following working day applies.

Page 1-10
1.6 Definition of terms
AND applies to
The term… IS defined as… the following
activities…
AADT Annual average daily traffic. Roading
Abutment An end support of a bridge or similar structure. Roading
Activity A land transport output or capital project, or both. All
Activity class A group of activities. All
Administration The activities or components of activities that in the opinion All

of Land Transport NZ are, or reasonably ought to be,
provided in administering the delivery of land transport-
related activities.
Administration Administration of passenger services covers all the functions Passenger

(passenger necessary to ensure the provision of those services. transport
services)
Affected In relation to a proposed activity, means a group of people All

community who are affected by the proposed activity because of living,
studying, or working in close geographical proximity to the
proposed activity.
Alignment The horizontal or vertical geometric form of the centreline of Roading

the carriageway.
ALTP The Authority’s Land Transport Programme ALTP
Approved Transit New Zealand (Transit NZ), the Auckland Regional All
organisation Transport Authority (ARTA), a regional council, a territorial
authority or other approved public organisations.
Area-wide traffic A linked system of traffic signals which allows a road Roading
control controlling authority to regulate traffic flow.
Auditor-General The Auditor-General of the New Zealand Audit Office. All
The Authority Land Transport New Zealand (Land Transport NZ) All
established by section 66 of the Land Transport Management
Act 2003, as amended in 2004.
The Authority’s The Land Transport Programme prepared by Land Transport ALTP
Land Transport NZ in accordance with section 12A of the Land Transport
Programme Management Act 2003, as amended in 2004.

Page 1-11
1.6 Definition of terms, continued
AND applies to
activities…
Bailey bridge A temporary bridge of lattice steel designed for rapid Roading
assembly from prefabricated standard parts.
Base programme An agreed underlying level of maintenance, which is Roading

relatively constant from year to year.
Basecourse The layer of material constituting the uppermost structural Roading

element of a pavement, immediately beneath the wearing
course; or the graded aggregate that can be used in such a
layer.
Benefit-cost A ratio, which compares the benefits accruing to road users All
ratio (BCR) and the wider community from constructing a project with
that project’s costs.
Berm The edge of a road reserve between the kerb or surface Roading
water channel and property boundary, exclusive of footpath.
Betterment The increased value of land arising from improved access. Roading
Block allocation The base programme plus short-term annual variations, Roading
which may be required from time to time. The block
allocation excludes the minor safety projects allocation.
The Board The Land Transport NZ Board. All
Bridge A structure designed to carry a road or path over an obstacle Roading

by spanning it. This includes culverts with a cross-sectional
area greater than or equal to 3.4 square metres.
Business unit A management unit within an approved organisation that Roading

marshals physical and human resources to provide services
and undertake works.

Page 1-12
AND applies
to the
The term… IS defined as…
following
activities…
Capital project An individual land transport-related activity of a capital All

nature including:
• planning, design and supervision related to the particular

capital project
• construction and reconstruction
• any activity of a capital nature the purpose of which is to

improve public safety in relation to land transport
• administration related to a particular capital project.
Carriageway That portion of the road devoted particularly to the use of Roading
travelling vehicles, including shoulders.
Carryover The unexpended allocation for an approved project in any All

year, which is required in the next year.
Cattlestop A grid across the road to prevent stock movement. Roading
Causeway A raised road across water or a swamp. Roading
Centre line Pavement marking on a road, which delineates opposing Roading

traffic flows.
Centreline The basic line, at or near the centre or axis of a road or other Roading
work, from which measurements for setting out or
constructing the work can conveniently be made.
Channelisation A system of islands or markings on a carriageway to direct Roading

traffic into predetermined paths usually at an intersection or
junction.
Chevron board A patterned reflective sight board with chevrons that Roading
indicates an abrupt change in road direction.
Chip seal A wearing course consisting of a layer or layers of chips Roading

originally spread onto the pavement over a film of freshly
sprayed binder and subsequently rolled into place.
Cluster A grouping of territorial authorities who have come together ALTP

for the purpose of planning and delivering road policing
resources across their combined area.

Page 1-13
AND applies to
activities…
Commissioner The Commissioner of the New Zealand Police. All
Commitments The balance of financial allocation required to complete an All

approved project in future years.
Community Road A Land Transport NZ programme that provides for the ALTP
Safety delivery, at the local level, of community development for
Programme road safety and community road safety programmes.
Community Passenger transport services funded under the community Passenger

services services activity that are not social services. transport
Concession road A formed or unformed road to which a concession agreement Roading

applies.
Concessionary Payments to operators for reduced fares for targeted groups Passenger
fares such as school children and beneficiaries and funding urban transport
school bus services with dedicated school contracts.
Concessionary fares does not relate to multi-trip ticket
discounts.
Corrugations Closely spaced ripples running across the line of traffic, Roading
generally where braking and acceleration of vehicles occurs.
Crash reduction Studies of crash sites aimed at identifying low cost remedial Roading
studies works that improve road safety.
Crib wall A retaining wall made of interlocking concrete or timber Roading

sections with earth or gravel fill between.
Culvert One or more adjacent pipes or enclosed channels running Roading

across and below road formation level having a cross-
sectional area less than 3.4 square metres.
Cycle lane That portion of the carriageway devoted to the use of pedal Roading
cycles only and marked accordingly (but which may
occasionally be crossed by motor vehicles, turning at
intersections or driveways or manoeuvring into parking
spaces).
Cycle path A separately formed carriageway designed specifically for the Roading
use of pedal cycles, which motor vehicles do not have access
to.

Page 1-14
AND applies to
activities…
Direction sign A sign placed usually at an intersection to direct traffic along Roading
a route or toward a destination.
Divided highway A road with physically separated carriageways for traffic Roading
travelling in opposite directions.
Edge break A road fault where the edge of the seal has broken away. Roading
Edge line A line painted on a road to indicate the outer edge of the Roading
traffic lane.
Effective The financial assistance rate to be paid during the transition Passenger
financial period to the full patronage funding scheme. transport
assistance rate
Embankment A construction work (usually of earth or stone), which raises Roading

the ground (or formation) level above the natural surface.
Emergency work The restoration work required to restore a roading facility Roading
damaged by a sudden and unexpected event.
Existing services Passenger transport services provided by a regional authority Passenger

prior to their adoption of the patronage funding scheme. transport

Page 1-15
AND applies to
activities…
Financial The percentage of the total cost of an approved activity that All
assistance rate Land Transport NZ pays.
(FAR)
First coat seal The initial seal placed on a prepared base course. Roading
Flanking The removal of excess material, between the shoulder and Roading
water channel, which is inhibiting drainage.
Footpath That portion of the road reserve set aside for the use of Roading
pedestrians only.
Ford A shallow place in a watercourse, stream or river where the Roading

bed may be crossed by traffic.
Furniture A general term to describe features placed on or near the Roading

road to improve safety and assist drivers. Furniture includes
barriers, guard rails, lighting, parking meters, poles, posts,
signs, lights, etc.
Gabion A rectangular wire-mesh cage filled with boulders, used to Roading

retain embankments and riverbanks.
Granular Material with a particle size no smaller than sand. Roading

material
Grit A fine granular material passing a 4.75 mm sieve. Roading
Ground water Water flowing or lying under the natural surface of the Roading
ground.
Guard rail A rail erected to restrain vehicles from physically leaving the Roading
road.

Page 1-16
AND applies to
activities…
Information sign A sign for the purpose of giving information, not being a Roading
warning or regulatory sign.
Judder bars Rounded ridges on the road surface positioned to encourage Roading
drivers to restrain vehicle position or speed.
Kerb A border of rigid material, usually raised, which is formed at Roading

the edge of a traffic lane or shoulder.
Kerb and Combined kerb and drainage channel. Roading

channel
Land drains Those drains whose main purpose is to drain adjacent land Roading
rather than road reserve.
Lane line A line other than the centre line or edge line painted on the Roading
road, which divides adjacent traffic lanes.
Legalisation Surveys related to the formal acquisition and documentation Roading

surveys of land for roading.
Local authority Any regional council or territorial authority within the All
(LA) meaning of the Local Government Act.
Local An area within the administrative jurisdiction of a regional All

government council.
region (LGR)
Local road Any road other than a state highway. Roading
The LTMA The Land Transport Management Act as amended from time All
to time.

Page 1-17
AND applies to
activities…
Maintenance A system that assists a road controlling authority manage Roading

management the maintenance of its roading asset and its related features.
system
Marker post A post placed at the edge of the road, equipped with a Roading
reflector to assist night driving.
Median A raised or flush divider separating traffic. Roading
Median barrier A device used on multi-lane roads to keep opposing traffic in Roading
prescribed carriageways.
Minister Minister of Transport. All
The National A mechanism through which Land Transport NZ allocates All

Land Transport funds across the programme.
Programme
New road Includes a lane that is added to an existing road. Roading
New services Passenger transport services to a geographical area not Passenger

previously serviced. transport
Outputs Goods or services. All
Overpass A grade separation where the traffic passes over an Roading

intersecting highway or railway.

Page 1-18
AND applies to
activities…
Package Inter-related and complementary group of activities – can All

span more than one work category, and more than one
activity class, eg a package could include a road
improvement activity and a rail improvement activity.
Paratransit Financial assistance for discount taxi fare schemes for the Passenger
(total mobility) disabled, installation of new wheelchair hoists and the transport
operation of dial-a-ride-schemes that qualify for financial
assistance from the total mobility programme.
Passenger Passenger kilometres are the total number of passengers Passenger

kilometres carried over the relevant period multiplied by their average transport
distance travelled on that service.
Passenger Any bus service, harbour ferry service, passenger rail Passenger
service service, cable car, hovercraft, monorail, tramway, or other transport
form of public transport (other than air transport) that is
available to the public generally.
Passing bay A widened length on a narrow bridge or road at which Roading

vehicles travelling in opposing directions can pass each
other.
Passing lane An additional lane on a road to allow one to overtake Roading

vehicles travelling in the same direction.
Patronage Patronage funding provides funding for contracted and Passenger

funding commercial passenger services where the financial Transport
assistance is based on the numbers of passengers carried.
Pavement The road structure that is constructed on the subgrade and Roading
supports the traffic loading.
Pavement Any markings on the road to control traffic movement or Roading

markings parking.

Page 1-19
AND applies to
activities…
Pedestrian A specially marked area giving right of way to pedestrians Roading

crossing crossing the road.
Phase in period The phase in period for the new patronage funding scheme is Passenger
from 1 July 2004 to 30 June 2006. transport
Pothole A hole in the pavement, frequently rounded in shape and Roading

greater than 70 mm in diameter, resulting from loss of
pavement material.
Present value A future cost or benefit at its discounted value at the present All
(PV) day. Net present value (NPV) is the present value of a future
benefit less the present value of its future cost.
Primer A bituminous material applied to a prepared base in Roading

preparation for sealing.
Project Used to describe activities of a capital nature. All
Project A report, which provides a simple, rapid method of analysis All

feasibility report to facilitate the identification of economically viable projects.
(PFR)

Page 1-20
AND applies to
activities…
Railway Safety The act makes provision for railway safety and corridor All rail activities
and Corridor maintenance with the intention to clarify the legal
Management Act
environment for rail services operators.
1992 (RSCMA)
RAMMS A computer-based maintenance management system Roading

including an inventory, which helps to manage the
maintenance and rehabilitation of pavements and related
features. RAMMS stands for Road Assessment and
Maintenance Management System.
Recreational The riding of pedal cycles for enjoyment or fitness (ie the Roading
cycling main purpose of the trip is the ride itself).
Regional Any regional council or unitary authority, or a territorial All

authority (RA) authority that has formally had some of the powers and
functions of a regional council transferred to it.
Regional council Any regional council within the meaning of the Local All
(RC) Government Act.
Retaining wall A wall constructed to resist lateral pressure from the Roading
adjoining ground or to maintain in position a mass of earth.
Road An area formed for vehicular traffic to travel on. The term Roading
‘road’ describes the area between kerbs or surface water
channels and includes medians, shoulders and parking areas.
Road controlling The Minister, Department of State, Crown entity, state Roading
authority (RCA) enterprise, or territorial authority that controls the road.
Road reserve A legally described area within which facilities such as roads, Roading
footpaths and associated features may be constructed and
maintained for public travel.
Road type The classification of a road relating to the type of financial Roading
assistance applying. Local roads, state highways, and special
purpose roads are the three currently established road types.

Page 1-21
AND applies to
activities…
Roughometer An instrument, which measures the roughness of a road’s Roading

surface.
Roundabout An intersection of two or more carriageways at a common Roading

level where all traffic travels around a central island, which
induces weaving movements in lieu of direct crossings.
Route marker A sign indicating by means of a number, a device, or a Roading

colour, the course of a particular route.
Rural An area within a permanent speed limit greater than Roading

70 km/h.
Running course A thin layer of loose stone which protects the basecourse of Roading
an unsealed road.

Page 1-22
AND applies to
activities…
SCATS A computer-linked system of traffic signals, the purpose of Roading

which is to enhance traffic flows. SCATS stands for Sydney
Co-ordinated Adaptive Traffic System.
Scheme A detailed report which includes a precise problem definition, All

assessment a description of options available to address the problem, a
report (SAR) project evaluation, an assessment of environmental impacts,
and a recommendation.
Second coat seal A chip seal placed on top of a first coat sealed surface. Roading
Shoulder That portion of the carriageway outside the traffic lanes. Roading
Sight rail A timber of metal rail (usually reflective or painted white) Roading
placed to highlight a change in road direction or some other
hazard.
Slow vehicle bay A shoulder constructed with sufficient width and strength to Roading
allow slow vehicles to pull aside to permit other vehicles to
pass.
Slurry seal A road surface treatment consisting of a mixture of bitumen Roading

emulsion and fine aggregate.
Social services Provision of passenger transport services to categories of Passenger

persons that depend on public transport including the transport
carriage of passengers by bus, rail, ferry and paratransit for
health, education and social welfare purposes.
Special purpose A local road that was historically accepted as a special Roading
road purpose road in terms of section 104, now repealed, of the
Transit New Zealand Act.

Page 1-23
AND applies to
activities…
Stabilise The modification of any material to improve or maintain its Roading

load carrying capacity. Usually lime or cement is used as the
modifier.
Strategic road Enforcement activities delivered by NZ police covering speed ALTP

policing control, drinking or drugged driver control, restraint device
activities control, visible road safety enforcement and commercial
vehicle investigation and road user charges (RUC)
enforcement.
Street A road within an urban locality. Roading
Subway A structure constructed to permit the passage of pedestrians, Roading

cycles or stock beneath the road.
Substructure The piers and abutments (including wing walls) of a bridge, Roading
which support the superstructure.
Superstructure That part of a bridge structure that is supported by the piers Roading
and abutments.
Surface water An open drain or ditch along the side of the road which Roading
channel collects water running off the road’s surface.
Sweeping The removal of loose material from the carriageway. Roading

Page 1-24
AND applies to
activities…
Technical The approval in principal of a project, which makes it eligible All

approval for inclusion in the national land transport programme.
Technical The review of outputs and general operations of road Roading

reviews controlling authorities that receive funds from the NLTA.
Territorial A territorial authority within the meaning of the Local All

authority (TA) Government Act. This is usually taken to refer to city and
district councils.
Total mobility Financial assistance for discount taxi fare schemes for the Passenger
(paratransit) disabled, installation of new wheelchair hoists and the transport
operation of dial-a-ride-schemes that qualify for financial
assistance from the total mobility programme.
Traffic lane A portion of the carriageway allotted for the use of a single Roading
line of vehicles.
Traffic island A defined area within a road, usually at an intersection, from Roading
which traffic is intended to be excluded and which is used for
control of vehicular movements and for pedestrian refuge.
Traffic Activities/devices that facilitate management of the road Roading

management network (see work category 33).
Traffic volume The number of vehicles flowing in both directions past a Roading
particular point in a given time (for example, vehicles per
hour or vehicles per day).
Transitional Passenger transport payments made during the phase-in Passenger

payments period through to the new patronage funding scheme. transport
Transport Transport demand management is a generic classification of Transport

demand strategies that encourage more efficient and sustainable demand
management travel and transport behaviour. Transport demand management,
(TDM) management has the objective of encouraging motor vehicle rail and sea
users to sue alternative means of transport when appropriate freight
while also reducing total vehicle kilometres travelled. This
includes freight transport as well as personal travel.
Transport Those who do not have access to a private means of All

disadvantaged transport and who face actual or potential obstacles in using
traditional public transport by living in areas not served by
public transport, or by being unable to afford public
transport, or by being unable to access public transport due
to having a permanent or temporary disabling condition.

Page 1-25
AND applies to
activities…
Travel demand This is a subset of transport demand management related to Transport

management personal travel. demand
management,
rail and sea
freight
Underpass A grade separation where the traffic passes under an Roading

intersecting highway or railway.
Unitary A territorial authority carrying out the additional functions of All

authority (UA) a regional council.
Urban An area within a permanent speed limit of less than or equal Roading
to 70 km/h.
Utility services Services such as gas, water, electricity, telephone, sewer Roading
and storm water.
Vehicle crossing A formed area where vehicles can cross over channel and Roading
footpath.
Void-fill seal An emulsion seal, usually consisting of grit or small chips, for Roading
filling the voids in an existing coarse textured chip-seal
surface.
Water table The level at which ground water will finally stand in an Roading
unpumped bore hole, well or other depression.
Wearing course The surface layer of a pavement intended for skid and Roading
abrasion resistance.
Windrow The long ridge of material formed by a grader or earth Roading

moving machine.
Wing wall A wall extending an abutment, as in a bridge, for retaining Roading

the side slopes of earth fill.
Work category A type of activity – not confined to a particular activity class, All
eg new roads and bridges (work category 38) appears in:
• activity class 3 – improvement and replacement of local

roads
• activity class 4 – improvement and replacement of state

highways.

Page 2-1
Chapter 2 Work category definitions
Overview
Introduction Land Transport NZ will only fund activities (outputs and capital projects) that
fall within specified activity classes.
This chapter identifies the activities and provides definitions for the work
categories found within each activity.
Activities, work The table on the following pages identifies how activities and work category
categories, and numbers and names relate to activity classes.
activity classes
Section Page
2.1 Work category/activity structure 2-2
2.2 Activity classes 1 and 2 – roading maintenance 2-6
Activity classes 3, 4 and 7 – improvement and replacement of

2.3 2-24
roads
Activity classes 5 and 7 – transport demand management

2.4 2-36
(TDM), rail and sea freight
2.5 Activity class 6 – passenger transport 2-44
2.6 Activity class 8 – walking and cycling 2-52
2.7 Activity class 10 – administration and project control 2-56
Note: Activity class 7 (regional development) can include activities within both
‘improvement and replacement of roads’, and ‘TDM, rail and sea freight’.
Note: Information on activity class 9 (research, education and training) can be

found on Land Transport NZ’s website.

Effective from 1 July 2005
Page 2-2
2.1 Work category/activity structure
Activity Work Roading maintenance

cat no.
Activity class 1 – Activity class 2 –

local roads state highways
Work category name Work category name
1 Pavement maintenance Pavement maintenance
2 Area-wide pavement treatment Area-wide pavement treatment
3 Major drainage control Major drainage control

Structural
4 Maintenance chip seals Maintenance chip seals
maintenance
5 Thin asphaltic surfacing Thin asphaltic surfacing
6 Seal widening Seal widening
7 Bridge maintenance Bridge maintenance
10 Amenity/safety maintenance Amenity/safety maintenance
11 Street cleaning Street cleaning
12 Traffic services Traffic services

Corridor
maintenance
13 Carriageway lighting Carriageway lighting
14 Cycleway maintenance Cycleway maintenance
15 Level crossing warning devices
Professional
17 Professional services Professional services
services
Financial
18 Financial assistance grants
assistance
Preventive work 20 Preventive maintenance Preventive maintenance
Property 25 Property management
Emergency work 30 Emergency reinstatement Emergency reinstatement

Page 2-3
2.1 Work category/activity structure, continued
Activity Work Improvement and replacement of roads

cat no.
Activity class 7 –
regional
local roads state highways
development
Work category Work category Work category

name name name
33 Traffic management Traffic management
Crash reduction
34
studies
35 Bridge renewals Bridge renewals Bridge renewals
New roads and New roads and New roads and

38
bridges bridges bridges
Construction
39 Road reconstruction Road reconstruction Road reconstruction
40 Pavement smoothing Pavement smoothing
42 Seal extension Seal extension Seal extension
Transportation Transportation
43
studies studies
44 Strategy studies Strategy studies
Property purchase
45
(state highways)
Property purchase
Property 46 Property purchase
(local roads)
Advance property
47
purchase
Minor safety 60 Minor safety projects Minor safety projects

Page 2-4
Activity Work Transport demand management (TDM), rail and sea freight
cat no.

TDM, rail and sea freight regional development
Work category name Work category name
70 Regional studies
Transport
demand 71 Travel demand management
management
74 Travel behaviour change
72 Rail freight operations Rail freight operations

Rail and sea
freight
75 Sea freight operations Sea freight operations
Activity class 6 – passenger transport (PT)

Work
Activity
cat no.
Work category name
66 Passenger rail facility maintenance

Community
78 Bus and ferry services
services
83 Passenger rail services
77 Replacement wheelchair hoists

Social services
87 Paratransit
Roading
84 PT roading improvements
improvements
67 Passenger rail infrastructure

Infrastructure
85 PT infrastructure

Page 2-5
Activity Work Activity class 8 – walking and cycling

cat no.
Work category name
Strategy 50 Walking and cycling strategies
55 Pedestrian facilities
Infrastructure
58 Cycle facilities
Note: Information on activity class 9 – research, education and training can be found on Land
Transport NZ’s website: http://www.landtransport.govt.nz/research.html
Activity Work Activity class 10 – administration and project control

cat
no.
Work category name
91 Administration (state highways)

State highways
92 Project control
Territorial 95 Administration support (territorial authority)
96 Regional land transport planning

Regional
98 Passenger rail administration

Page 2-6
2.2 Activity classes 1 and 2 – Roading maintenance
Overview
Introduction The work defined in this section is eligible for funding within activity class 1 –
local roads, or 2 – state highways.
In this section This section covers the following activities:
Activity Page
2.2.1 Structural maintenance 2-7
2.2.2 Corridor maintenance 2-14
2.2.3 Professional services 2-19
2.2.4 Financial assistance 2-20
2.2.5 Preventive work 2-21
2.2.6 Property 2-22
2.2.7 Emergency work 2-23

Page 2-7
2.2.1 Structural maintenance
Introduction The structural maintenance activity includes the following work categories:
Name W/C no.
• Pavement maintenance 1
• Area-wide pavement treatment 2
• Major drainage control 3
• Maintenance chip seals 4
• Thin asphaltic surfacing 5
• Seal widening 6
• Bridge maintenance 7
W/C 1: The pavement maintenance category provides for the normal care and
Pavement attention of the roadway to maintain its structural integrity and serviceability.
maintenance
Examples of qualifying work include:
• pavement patching and repairs, including potholes
• shoulder maintenance, including flanking
• routine maintenance and repair of surface water channel and subsoil

drainage
• stream clearing and debris removal to maintain water courses through

culverts
• renewal or installation of culverts with a diameter less than or equal to

600 mm
• replacement of wearing and running course metal on unsealed roads
• grading of unsealed roads
• the road controlling authority share of pavement maintenance at railway

level crossings together with any associated servicing fee.

Page 2-8
2.2.1 Structural maintenance, continued
W/C 2: The area-wide pavement treatment category provides for all pavement
Area-wide maintenance techniques where the least-cost maintenance option is an area-
pavement
wide treatment.
treatment
• overlays
• rip and relay
• chemical stabilisation.
Work in this category may also include increases to the seal width to overcome
maintenance problems provided that:
• the increased width does not exceed a target width accepted by Land
Transport NZ for the traffic mix and volume on that section of road, and
• the cost of widening does not exceed 20 percent of the cost of the basic
area-wide pavement treatment (AWPT) unless specifically approved by the
partnership manager of Land Transport NZ.
Rule: To qualify for inclusion in this work category the work must:
• be the long-term, least-cost option for the road controlling authority,

calculated in terms of present value (PV), and
• not include any geometric improvements, except for seal widening to reduce
edge break and shoulder maintenance.
Note:
• Road controlling authorities must, for audit purposes, retain details of

individual projects and project evaluations (in terms of net maintenance
savings) for the basic AWPT.
• A simplified evaluation method is provided in Land Transport NZ’s Project

evaluation manual volume 1.
• A flow chart defining the difference between AWPT and pavement smoothing
is provided on the next page.

Page 2-9
Flow chart defining the difference between area-wide pavement treatment and
pavement smoothing
Primary problem
Rough ride High maintenance section
No Can we justify
on agency
costs alone?
Yes
Does it need
No
wider seal for
maintenance
purposes?
Yes
Pavement Basic Include widening

smoothing AWPT with AWPT

Page 2-10
W/C 3: The major drainage control category provides for drainage work which is not
Major drainage routine in nature, but which is clearly demonstrated to reduce future
control
maintenance costs to the roading agency.
• renewal or installation of culverts with a diameter greater than 600 mm, but
having a waterway less than or equal to 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
• installation of 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.
Rule: Installation of new culverts, water channels and kerb and channel must
be the long-term, least-cost option for the road controlling authority, calculated
in terms of PV.
Note: Details of individual 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.

Page 2-11
W/C 4: The maintenance chip seals category provides for pavement resurfacing when
Maintenance the reseal is to be applied to an established sealed road.
chip seals
• conventional chip reseals, including second coat seals
• void filling seal coats
• texturing seals
• milling top surface and resealing
• other approved special-purpose chip seals.
Rule: Raising service covers and reinstatement of pavement markings and

raised pavement markers as a result of resealing is to be included in this work
category. However, the cost of any pavement repairs preparatory to carrying out
resealing is to be a charge against pavement maintenance.
Note: The second coat sealing of sub divisional roads is deemed to be part of
sub-divisional construction and not financially assisted.

Page 2-12
W/C 5: The thin asphaltic surfacing category provides for a surfacing treatment
Thin asphaltic which may be technically necessary as an alternative to conventional chip
surfacing
sealing.
Examples where such treatment may be required include:
• locations of high stress from turning or accelerating traffic or high traffic

volume
• locations requiring a noise-reducing surfacing
• a new wearing course on a structural asphaltic pavement.
Note: This category includes emulsified bitumen seals commonly known as

‘slurry seals’.
Rule: Raising service covers and reinstatement of pavement markings and

raised pavement markers as a result of thin asphaltic surfacing is to be included
in this work category. However, the cost of any pavement repairs preparatory to
carrying out thin asphaltic surfacing is to be a charge against pavement
maintenance. Thin asphaltic surfacing is not to exceed 40 mm average depth.
W/C 6: The seal widening category provides for widening existing seals where this is
Seal widening the least cost maintenance treatment necessary to overcome edge break or to
reduce shoulder maintenance. Seal widening undertaken for safety purposes is
to be programmed in the road reconstruction category.
Work may include shoulder strengthening and/or formation widening where this
is necessary to maintain the structural integrity of the pavement.
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.
Note:
• Where possible, seal widening should be completed one or two years before
the road’s scheduled reseal.
• Road controlling authorities must for audit purposes retain details of

individual projects and project evaluations (in terms of net maintenance
savings).

Page 2-13
W/C 7: The bridge maintenance category provides for all work necessary to maintain
Bridge the structural condition and appearance of all bridges and retaining walls. It
maintenance
also includes the maintenance of tunnels, stock underpasses, vehicular ferries,
and bridge waterways when the bridge itself is directly affected.
• repairs to hand rails
• replacement of timber decks
• replacement of damaged or deteriorated structural members
• sand blasting and painting of structural members
• foundation protection
• repair of retaining walls
• stream clearing and debris removal to maintain water courses under

bridges
• hire charges for bailey bridging.
Rule: Any bridge constructed by any agency subsequent to 1954, which does
not conform to a recognised design code, will not be eligible for funding within
this category.

Page 2-14
2.2.2 Corridor maintenance
Introduction The corridor maintenance activity includes the following work categories:
Name W/C no.
• Amenity/safety maintenance 10
• Street cleaning 11
• Traffic services 12
• Carriageway lighting 13
• Cycleway maintenance 14
• Level crossing warning devices 15
W/C 10: The amenity/safety maintenance category provides for the normal care and
Amenity/safety attention of the road corridor to maintain the safety and aesthetic standards
maintenance
other than works covered by the pavement maintenance category.
• snow clearing and ice control
• vegetation control
• litter collection on rural roads
• removal of, or protection against, graffiti on roading structures
• removal and cleaning up crash debris and spillages, excluding hazardous

substances which are the responsibility of emergency services
• maintenance of, and removal of effluent from, stock truck effluent disposal
facilities.

Page 2-15
2.2.2 Corridor maintenance, continued
W/C 11: The street cleaning category provides for the cleaning of channels, sumps,
Street cleaning and cesspits in urban areas.
Land Transport NZ has determined that financial assistance will be provided on

30 percent of the total cost of these cleaning activities as an approximation of
the benefit to the road and its users.
Rule: The claim form shall only show the 30 percent of the total expenditure
that is eligible for financial assistance.
Rule: 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.
Rule: The general sweeping of the carriageway surface on both state highways
and local roads is not eligible for financial assistance.
Note: The full cost of sweeping to remove surplus chip immediately following
resealing qualifies for financial assistance in the maintenance chip seal
category.
Amount of street cleaning eligible for financial assistance

Page 2-16
W/C 12: The traffic services category provides for the normal care and attention of
Traffic services roading furniture and traffic control devices that promote a safe and efficient
roading system.
• provision and maintenance of:
− signs as accepted by Land Transport NZ policy
− road markers
− pavement markings (including bus priority lane and cycleway markings

on all non-separated road surfaces)
• operation and maintenance of:
− traffic signals
− traffic monitoring equipment, such as area-wide traffic control systems

and closed circuit television systems
− emergency telephones on motorways
• maintenance of guard rails and sight rails
• replacement of traffic signal and surveillance equipment with an equivalent,

but state-of-the-art facility.
Rule: To qualify for funding from this category, all work must conform to the
Manual of traffic signs and markings adopted by Land Transport NZ, where this
manual is applicable.
Note: The reinstatement of facilities maintained under this category that is as

a result of maintenance or construction work shall be programmed to that
activity.

Page 2-17
W/C 13: The carriageway lighting category provides for the maintenance and power
Carriageway costs associated with the operation of carriageway lighting. This includes the
lighting
provision and maintenance of, and power costs associated with, belisha beacons
and floodlighting at pedestrian crossings.
Carriageway lighting on local roads is to be funded within the relevant district

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.
This category also includes the cost of conversion of existing mercury vapour
and fluorescent fittings to high-pressure sodium or the renewal of an existing
system to ANS1158 standards as the existing lamps become due for
replacement.
Rule: The capital cost of installing new lighting, or upgrading lighting to the
current standard, is to be programmed as a minor safety or road reconstruction
project.
Note: This category excludes any capital cost either as a direct charge or by
amortisation. It also excludes any costs related to amenity lighting. Amenity
lighting includes the lighting of:
• buildings
• property and reserves
• under-verandah lighting
• festive lighting
• any other lighting not directly related to the operation of a road.
Note: For audit purposes, the following information may be required:
• energy costs
• maintenance costs
• professional services (costs and source).

Page 2-18
W/C 14: The cycleway maintenance category provides for the maintenance of the
Cycleway pavement and furniture associated with cycleways, including the operation of
maintenance
associated lighting.
It does not include construction of new facilities or capital work on existing

facilities, such as the provision of new lighting.
W/C 15: The level crossing warning devices category provides financial assistance to
Level crossing territorial authorities for the costs associated with maintenance, upgrading and
warning devices
installation of level crossing warning devices.
The only purpose of this category and allocation is to reimburse territorial

authorities for their share of the cost of work carried out by the relevant rail
track authority. The financial assistance is only for work that is on a priority list
that the relevant rail track authority provides to Land Transport NZ. An invoice
from the relevant rail track authority must back up claims.

Page 2-19
2.2.3 Professional services
W/C 17: The professional services category provides for the professional services fees
Professional and maintenance management activities relating to the block maintenance
services
allocations.
It also includes fees for the professional services necessary to:
• manage a roading network
• undertake crash reduction studies (state highways only)
• legalise existing road reserves
• produce project feasibility reports (PFRs) for capital projects
• manage Transit NZ’s stock of bailey bridges
• investigate rehabilitation
• manage preventive maintenance
• manage a computerised pavement management system including pavement

deterioration models
• undertake roughness and rating surveys
• undertake traffic counting surveys.
Note: Fees for legalisation of existing road reserves are limited to:
• legalisation surveys for the acquisition of land for roading purposes
• legalising the stopping of formed roads
• plan fees payable to Terralink.
No other expenses involved in legalisation surveys are eligible.
Rule: Professional services fees for developing projects post PFR, including
minor safety projects and pavement smoothing, are to be included in the
project’s allocation.

Page 2-20
2.2.4 Financial assistance
W/C 18: The financial assistance grants category provides for funds to be granted to
Financial territorial authorities. Such grants may be made, for example, to permit a
assistance
financial assistance transition from fully funded state highways (which may
grants
have been revoked as a result of a state highway review) to the territorial
authority’s base rate of financial assistance.

Page 2-21
2.2.5 Preventive work
Introduction The preventive work activity provides for work required to protect roads and
roading structures from damage likely to result from natural phenomena.
W/C 20: The preventive maintenance category provides for non-routine work required
Preventive to protect the serviceability of the roading network and to minimise the threat
maintenance
of road closure. The work provided in this category is not eligible for
programming in general maintenance or emergency reinstatement categories.
• new works which protect existing roads from sea or river damage
• drainage installed to drain incipient slips
• toe weighting of unstable slopes
• protection planting projects
• work to overcome changes in a river’s course or bed level that threaten

roads, bridges, or other roading 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.

Page 2-22
2.2.6 Property
Introduction The property activity in the roading maintenance activity class is used to monitor
property management costs and revenues accruing to Transit NZ.
W/C 25: The property management category provides for costs associated with the
Property management of property purchased by Transit NZ for future roading.
management
(SH) For rental operations, this includes:
• valuations for rent reviews
• rates and grants
• maintenance
• management fees
• forestry.
For property disposals, this includes the fees associated with:
• valuations
• legal surveys
• management
• real estate agents.

Page 2-23
2.2.7 Emergency work
Introduction The emergency work activity provides for work required in order to reinstate
roads and roading structures from damage resulting from natural phenomena.
W/C 30: The emergency reinstatement category provides for unforeseen significant
Emergency expenditure which arises from a defined, major, short duration natural event. It
reinstatement
allows for the restoration of roads and roading structures to a standard no
better than that which existed before any damage occurred.
Repair of damage which is confined to the following extent shall be programmed

as either pavement maintenance or 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 the road
structure
• scour, degradation, or aggradation threatening roads, bridges, or other

roading-related structures which has accumulated over time
• any other deficiency which has developed from events occurring over a
period of time (ie greater than one month).
Only damage which has been reported to and accepted by the partnership
manager for funding as emergency work will qualify.
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 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 Project evaluation manual volume 1 and programmed in the
appropriate construction category.

Page 2-24
2.3 Activity class 3, 4, and 7 – improvement and

replacement of roads
Overview
Introduction The work as defined in this section is eligible for funding within activity class 3 –
local roads, 4 – state highways or 7 – regional development.
Activity Page
2.3.1 Construction 2-25
2.3.2 Property 2-32
2.3.3 Minor safety 2-35

Page 2-25
2.3.1 Construction
Introduction The construction activity applies to the following work categories:
Name: W/C no.
• Traffic management 33
• Crash reduction studies 34
• Bridge renewals 35
• New roads and bridges 38
• Road reconstruction 39
• Pavement smoothing 40
• Seal extension 42
• Transportation studies 43
• Strategy studies. 44
W/C 33: The traffic management category provides for projects which assist with the
Traffic management of the road network.
management
• advanced traffic management systems (ATMS)
• variable message signs (VMS)
• area-wide traffic control systems
• local area traffic management schemes (LATMS)
• ramp metering
• stock effluent facilities
• surveillance devices
• weighing devices.

Page 2-26
2.3.1 Construction, continued
W/C 34: The crash reduction studies category provides for studies designed to identify
Crash reduction low-cost roadworks on local roads that improve road safety.
studies
Land Transport NZ:
• expects that 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 a

New Zealand guide to the treatment of crash locations (December 2004).
Road controlling authorities can also seek advice from Land Transport NZ
road safety engineers.
Rule: In order to obtain approval for funding under this category, local 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.
Rule: After completion of work arising from each study, monitoring is to be

carried out and reported to Land Transport NZ in accordance with the Transit
NZ/Land Transport Safety Authority manual Accident investigation monitoring
system (1994). This enables Land Transport NZ and the Ministry of Transport to
research the effectiveness of remedial treatments.
Note: The investigations must be directed by appropriately trained traffic

engineering staff.

Page 2-27
W/C 35: The bridge renewals category provides for the following work:
Bridge renewals
• replacing a structurally inadequate bridge
• replacing a bridge for non-structural reasons, such as inadequate width or

waterway
• structurally modifying an existing bridge to increase its structural capacity to

a level higher than originally provided
• widening an existing bridge.
The category includes approach work estimated to cost less than $50,000.
Sealing bridge approaches on unsealed roads is allowed 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.
Rule: The bridge renewals category specifically excludes the provision of a new
bridge where no structure presently exists.

Page 2-28
W/C 38: The new roads and bridges category provides for the construction of a new
New roads and road which is additional to the existing roading system and may include new
bridges
bridges.
It does not include a deviation of an existing road.
W/C 39: The road reconstruction category provides for the reconstruction of existing
Road pavements within the existing or widened road reserve or deviations onto a new
reconstruction
road reserve where the original road is closed.
• realignment
• re-grading
• widening
• intersection improvements
• approaches to bridge renewals costing in excess of $50,000.
This category includes retaining structures, tunnels, all signs, pavement

markings, traffic signals, lighting, etc, necessary to bring the improved facility
into service. Road reconstruction also includes (for local roads projects)
property purchase costs less than $50,000.

Page 2-29
W/C 40:
The pavement smoothing category provides for the smoothing of pavements
Pavement
smoothing for the benefit of road users.
• thin asphaltic overlays or grader-laid asphaltic material
• unbound granular overlays
• treatments involving ripping and/or reshaping, including stabilisation of the

existing pavement material
• certain urban treatments, where this is the most cost-effective option for
pavement smoothing, including:
− replacement of the kerb
− removal and replacement of the existing pavement material.
Work in this category may also include:
• drainage improvements that are essential for the structural integrity of the
pavement
• increases to seal width for safety reasons 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 does not
exceed 50 percent of the cost of the basic pavement smoothing.
Rule: If the proposed work exceeds the above restrictions then the project is
to be programmed in the road reconstruction category.
Note: The allocation in this work category will be programmed as a block

allocation. Details of individual projects and project evaluations must be held by
the road controlling authority for audit purposes.
W/C 42: The seal extension category provides for sealing existing unsealed roads,
Seal extension including any reconstruction.

Page 2-30
W/C 43: The transportation studies category provides for projects undertaken by road
Transportation controlling authorities that develop transportation models related to the arterial
studies
roading network and which evaluate and produce transportation policies and
plans related to strategic planning of the arterial roading network.
Transportation studies are generally relevant to evaluating:
• policy issues such as land use strategies and transport demand management
issues
• 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: Transportation studies exclude:
• planning of public passenger transport services
• parking studies
• traffic management studies at a local level
• walking and cycling strategies
• project development and evaluation.
Note: Further requirements for transportation studies are provided in

section 7.4.26.

Page 2-31
W/C 44: The strategy studies category provides for projects undertaken by road
Strategy studies controlling authorities that examine existing individual routes or road corridors
in order to identify deficiencies from established standards and propose
solutions to those deficiencies. This allows a co-ordinated approach to be
undertaken to any upgrading needs instead of treating individual projects in
isolation.
Rule: A terms of reference must be provided to Land Transport NZ for

approval, and 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 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.
Note: Land Transport NZ will check the findings and recommendations of

strategy studies against their agreed terms of reference.

Page 2-32
2.3.2 Property
Introduction The property activity applies to the following categories:
Name: W/C no.
• Property purchase (state highways) 45
• Property purchase (local roads) 46
• Advance property purchase 47
Rule: 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.
W/C 45: The property purchase (state highways) category provides the funds which
Property are required by Transit NZ to purchase land for roading purposes.
purchase (state
highways) This includes:
• valuation
• legal surveys
• acquisitions, and
• compensation.
Rule: All costs are to be identified by project and available for audit or upon
request of the partnership manager.

Page 2-33
2.3.2 Property, continued
W/C 46: The property purchase (local roads) category provides local road controlling
Property authorities with financial assistance to acquire that portion of land that is to be
purchase
converted to road where the cost is greater than or equal to $50,000. Where
(local roads)
the cost is less than $50,000 per project, the property cost shall be included in
the project’s construction cost. That portion of the property acquired in excess
of the minimum roading requirements is not eligible.
Financial assistance is paid at the time of construction 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.
Note: Where land is purchased and surveys are undertaken some time before
the work appears in the programme, such expenditure becomes a road
controlling authority charge until the work is approved for construction.

Page 2-34
2.3.2 Property, continued
W/C 47: The advance property purchase category provides for property acquisition
Advance for local roading purposes prior to Land Transport NZ accepting a project into
property
an approved National Land Transport Programme (NLTP).
purchase
Funding may be provided for property acquisition in advance of construction

where:
• the land is designated in the district plan for roading purposes
• the land required by the proposed construction 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 roading system supported by transport planning
schemes and indicated by high benefit-cost ratios.
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: 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
contribution 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.

Page 2-35
2.3.3 Minor safety
Introduction The minor safety activity is used to programme small safety projects. They are
typically those remedial projects identified by crash reduction studies.
W/C 60: The minor safety projects category provides funding for the construction of
Minor safety the following types of safety projects:
projects
• small, isolated geometric improvements
• intersection improvements
• traffic calming measures
• lighting improvements
• provision of guard railing
• sight benching to improve visibility
• pedestrian crossings
• stock underpasses
• formation of ‘trailer parks’
• safety footpaths which conform to Land Transport NZ policy.
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.

Page 2-36
2.4 Activity class 5 and 7 – transport demand

management, rail and sea freight
Overview
Introduction The work as defined in this section is eligible for funding within activity class 5 –
transport demand management, rail and sea freight, or 7 – regional
development.
Note: The activity class that was alternatives to roading, is now part of the
transport demand management, rail and sea freight activity class.
Policy being Applicants should note that Land Transport NZ is currently developing policy in
developed the areas of transport demand management, and operational financial
assistance for rail and sea freight operations. Applicants should discuss
proposed activities with Land Transport NZ’s regional staff as early as possible.
Activity Page
2.4.1 Transport demand management 2-37
2.4.2 Rail and sea freight 2-40

Page 2-37
2.4.1 Transport demand management
Introduction This activity is for general transport demand management activities, excluding
specific activities for passenger transport and walking and cycling which are
covered under activity classes 6 and 8 respectively.
This activity includes the following work categories:
Name: W/C no.
• Regional studies 70
• Travel demand management 71
• Travel behaviour change 74
W/C 70: The regional studies category provides financial assistance to regional
Regional studies authorities for regional transportation studies.
Applications will be considered on a case-by-case basis. Examples of activities

that may qualify for funding include:
• multi-modal package studies
• passenger transport studies
• passenger transport models.
The following procedures must be followed in order to qualify for financial

assistance:
• 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.
Note: Regional land transport strategies are separate from regional studies
and should be funded under work category 96, regional land transport planning.
Note: This category excludes similar studies carried out by road controlling
authorities. These studies are programmed by road controlling authorities under
work category 43, transportation studies.

Page 2-38
2.4.1 Transport demand management, continued
W/C 71: The travel demand management category provides financial assistance to
Travel demand approved organisations for travel demand management activities excluding
management
travel behaviour change activities.
Travel demand management applications will be considered on a case-by-case

basis, but examples of activities that may qualify for funding include:
• parking and land use change, including access management
• pricing and financial incentives including financial assistance for activities

such as:
− alternative work schedules
− guaranteed ride home
− use of non-motorised transport
− car pooling
− telework
− commuter financial incentives.
Rule: Financial assistance under this work category is subject to the following
constraints:
• risk analysis for projects with a present value of the funding gap of greater
than $1 million
• post-implementation review of benefits
• submission of a detailed outline and costing of the monitoring programme
• evaluations for travel demand management proposals being undertaken in

accordance with Land Transport NZ’s evaluation procedures for transport
demand management activities.
Note: Any approved investigation of a travel demand management activity will

also be funded under this work category.

Page 2-39
2.4.1 Transport demand management, continued
W/C 74: The travel behaviour change category provides financial assistance to
Travel behaviour approved organisations for activities that encourage voluntary change in
change
personal or private travel behaviour by providing consumer information and
encouragement for people to utilise modes of travel other than private car and
to reduce the overall requirement for travel.
Travel behaviour change applications will be considered on a case-by-case

basis, but examples of activities that may qualify for funding include
preparation and implementation of:
• travel plans (business, school, household and community)
• education, promotion and/or marketing techniques to encourage changed

travel behaviour, including alternative mode use on a voluntary basis
(excluding those explicitly associated with promotion of passenger
transport). Examples include promotion of:
− alternative work schedules
− guaranteed ride home
− use of non-motorised transport
− car pooling
− telework
− walking school buses
− walking and cycling.
Rule: Financial assistance under this work category is subject to the following
constraints:
than $1 million
• submission of a detailed outline and costing of the monitoring programme in

accordance with section 5.0 of the Land Transport NZ/EECA Travel behaviour
change guidance handbook
• evaluations for travel behaviour change proposals, being undertaken in

accordance with Land Transport NZ’s evaluation procedures for evaluation of
education, promotion and marketing.
Note: Any approved investigation of a travel behaviour change activity will also
be funded under this work category.
Travel behaviour change activities can include or be packaged with supporting

infrastructure or service related activities from other activity classes. Financial
assistance for supporting walking and cycling facilities that may be part of travel
plans is covered under activity class 8. Financial assistance for supporting
passenger transport services that may be part of travel plans is covered under
activity class 6.

Page 2-40
2.4.2 Rail and sea freight
Introduction This activity is for the provision of freight services using rail or sea freight as an
alternative to road transport.
Name: W/C no.
• Rail freight operations 72
• Sea freight operations 75
W/C 72: The rail freight operations work category provides financial assistance for the
Rail freight provision of rail freight services that remove freight vehicles from the road and
operations
thereby reduce roading costs to road controlling authorities.
Any approved investigation of a rail freight activity will also be funded under
this work category.
Examples of investigations include:
• identify, investigate the feasibility of, evaluate and report on the various
alternative project or service options for non-roading proposals
• select a preferred option
• complete a scheme assessment where required
• prepare a preliminary assessed project cost and benefit-cost ratio (BCR).
Note: Evaluations for rail freight proposals must be undertaken in accordance

with Land Transport NZ’s evaluation procedures for transport services. The
evaluation will take into account the savings in road maintenance, rehabilitation
and construction costs to roading organisations as well as the road user charges
foregone.

Page 2-41
2.4.2 Rail and sea freight, continued
W/C 72: The following procedures must be followed in order to qualify for financial
Rail freight assistance for investigations:
operations,
continued • a terms of reference for the investigation must be approved by Land
Transport NZ. The terms of reference must include:
− a list of possible alternatives and options
− the timeframe
• the evaluation of alternatives and options must be undertaken in accordance

with Land Transport NZ’s evaluation procedures for rail freight proposals
• the evaluation shall be staged as follows with the calculated BCR reported to
Land Transport NZ at the end of each stage:
− Stage 1
Feasibility report with a rough order of costs and preliminary BCR
calculated.
− Stage 2
Further investigation to identify and evaluate the merits of each option.
The report at the end of this stage shall include a list of alternatives and
options evaluated together with a preliminary assessed cost and updated
BCR for the preferred option.
Rule: Financial assistance for implementation projects under this work

category is subject to the following constraints:
than $1 million
• audit of road user benefits
• confirmation that the roading alternative is not constrained by the regional

land transport strategy
• a rigorous evaluation has been undertaken.

Page 2-42
W/C 75: The sea freight operations category provides financial assistance for the
Sea freight provision of sea freight services that remove freight vehicles from the road and
operations
thereby reduce roading costs to road controlling authorities.
Any approved investigation of a sea freight activity will also be funded under
this work category.
Examples of investigations include:
• identify, investigate the feasibility of, evaluate and report on the various
alternative project or service options for non-roading proposals
• select a preferred option
• complete a scheme assessment where required
• prepare a preliminary assessed project cost and BCR.
Note: Evaluations for sea freight proposals must be undertaken in accordance

with Land Transport NZ’s evaluation procedures for transport services. The
evaluation will take into account the savings in road maintenance, rehabilitation
and construction costs to roading organisations as well as the road user charges
foregone.

Page 2-43
W/C 75: Sea The following procedures must be followed in order to qualify for financial
freight assistance for investigations:
operations,
continued • a terms of reference for the investigation must be approved by Land
Transport NZ. The terms of reference must include:
− a list of possible alternatives and options
− the timeframe
• the evaluation of alternatives and options must be undertaken in accordance

with Land Transport NZ’s evaluation procedures for rail freight proposals
• the evaluation shall be staged as follows with the calculated BCR reported to
Land Transport NZ at the end of each stage:
− Stage 1
Feasibility report with a rough order of costs and preliminary BCR
calculated
− Stage 2
Further investigation to identify and evaluate the merits of each option.
The report at the end of this stage shall include a list of alternatives and
options evaluated together with a preliminary assessed cost and updated
BCR for the preferred option.
Rule: Financial assistance for implementation projects under this work

category is subject to the following constraints:
than $1 million
• audit of road user benefits
• confirmation that the roading alternative is not constrained by the regional

land transport strategy
• a rigorous evaluation has been undertaken.

Page 2-44
2.5 Activity class 6 – passenger transport
Overview
Introduction The work as defined in this section is eligible for funding within activity class 6.
Activity Page
2.5.1 Community services 2-45
2.5.2 Social services 2-47
2.5.3 Roading improvements 2-49
2.5.4 Infrastructure 2-50

Page 2-45
2.5.1 Community services
Introduction The community services activity provides for road, rail and ferry passenger
services contracted by regional authorities that are neither transport demand
management, rail and sea freight, nor social services. Administration and
concessionary fares for bus and ferry services are included in the bus and ferry
services work category only.
Name: W/C no.
• Passenger rail facility maintenance 66
• Bus and ferry services 78
• Passenger rail services 83
Financial To qualify for financial assistance, services must comply with one of the
assistance following:
• Land Transport NZ’s procurement procedures
• a specifically approved regional alternative procurement procedure
• an approved sole-supplier procurement procedure.
W/C 66: The passenger rail facility maintenance category provides funding for
Passenger rail maintenance of facilities associated with the provision of passenger rail services.
facility
maintenance Examples of qualifying work include:
• passenger rail car park rental leases
• passenger rail car park maintenance
• passenger rail station maintenance.
Rule: Only facilities owned by an approved organisation are eligible for funding.

Page 2-46
2.5.1 Community services, continued
W/C 78: The bus and ferry services category provides funding for bus and ferry
Bus and ferry passenger transport services that are part of the service level provision agreed
services
between Land Transport NZ and each regional council.
Examples of eligible bus and ferry expenditure include the following items:
• new services
• increased service levels
• facilitating access and transfers
• electronic ticketing
• off-bus ticketing
• integrated ticketing
• simpler, cheaper fares
• free transfer (time limited)
• free bus services
• fare caps
• marketing and promotion
• timetable information
• real-time information for bus and ferry passenger services
• improved comfort, access and security
• security systems
• bus and ferry services administration
• total mobility administration
• maintenance and operation of bus/ferry shelters/facilities owned by an
approved organisation, (including new and replacement shelters up to a
value of $10,000 each)
• minor bus/ferry facilities (refer to note below)
• bus/ferry concessionary fares.
Note: As an interim policy for 2005/06 and 2006/07, Land Transport NZ will
also consider applications for capital funding of passenger transport
infrastructure projects or packages with a total cost of up to $400,000 within
this work category.
W/C 83: The passenger rail services category provides funding for contracted
Passenger rail passenger services undertaken by rail.
services
Note: Rail car park leases, rail car park maintenance or station maintenance
are all included in work category 66. Passenger rail administration is covered by
work category 98 under activity class 10.

Page 2-47
2.5.2 Social services
Introduction The social services activity provides for persons dependent on public
transportation. Services include the carriage of passengers by bus, rail, and
paratransit for health, education, and social welfare purposes.
Name: W/C no.
• Replacement wheel chair hoists 77
• Paratransit 87
Financial To qualify for financial assistance, services must comply with one of the
assistance following:
• a specifically approved regional alternative procurement procedure
W/C 77: The replacement wheelchair hoists category provides funding for the
Replacement provision of replacement wheelchair hoists in taxi vehicles used for the
wheelchair
provision of paratransit services.
hoists

Page 2-48
2.5.2 Social services, continued
W/C 87: The paratransit category provides funding which supports discount taxi fare
Paratransit schemes for the disabled, including the operation of vehicles equipped with
wheelchair hoists.
The category includes the purchase and installation of new wheelchair hoists in
vehicles. It also 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 programme
• the service has been put out for tender under Land Transport NZ’s
procurement procedures.

Page 2-49
2.5.3 Roading improvements
Introduction The roading improvements activity provides for passenger transport roading-
related capital improvements.
W/C 84: The passenger transport roading improvements category provides funding
Passenger for passenger transport capital improvements including provision of passenger
transport
transport related infrastructure on any road constructed or re-designated
roading
improvements specifically to enable movements by high occupancy road vehicles.
• bus lanes or bus ways created for high occupancy road vehicles only.
Note: Any other road-related improvement is outside of the passenger

transport activity class.

Page 2-50
2.5.4 Infrastructure
Introduction The infrastructure activity provides for local road passenger transport capital
improvements.
Name: W/C no.
• Passenger rail infrastructure 67
• Passenger transport infrastructure 85
W/C 67: The passenger rail infrastructure category provides funding for rail
Passenger rail passenger transport capital improvements including rail infrastructure owned by
infrastructure
the Crown and passenger rail rolling stock.
• passenger rail rolling stock
• passenger rail real-time information system infrastructure
• passenger rail station, terminal, shelter and facility improvements
• passenger rail park and ride improvements
• passenger rail signalling upgrading
• footbridge improvements.

Page 2-51
2.5.4 Infrastructure, continued
W/C 85: The passenger transport infrastructure category provides funding for bus,
Passenger ferry or multi-modal passenger transport capital improvements over $400,000.
transport
infrastructure
Note: Bus and ferry infrastructure under $400,000 is eligible for funding under
work category 78, bus and ferry services. Passenger rail infrastructure is funded
under work category 67.
• real-time information system infrastructure
• multi-modal park and ride improvements
• bus, ferry or multi-modal passenger interchanges or terminals.

Page 2-52
2.6 Activity class 8 – walking and cycling
Overview
The walking and cycling activity class provides for activities that will encourage
these two modes of transport in order to:
• reduce the number of short car trips
• encourage safe and friendly roading networks for walking and cycling
• enhance public health, fitness and tourism
• integrate walking and cycling with other transport modes.
This activity class will not be used to assist any pedestrian or cycle facilities that
form an integral part of a new road construction project, and therefore, would
have been provided without the creation of this new activity class.
Promotional activities are funded from the travel behaviour change work
category in activity class 5.
Activity Page
2.6.1 Strategy 2-53
2.6.2 Infrastructure 2-54

Page 2-53
2.6.1 Strategy
Introduction The strategy activity includes the following work categories:
Name: W/C no.
• Walking and cycling strategies 50
W/C 50: The walking and cycling strategies category provides for the cost of fees
Walking and incurred by territorial authorities in the preparation (including reviews) of
cycling
approved strategies for walking and/or cycling as a viable mode of transport.
strategies
Rule: A terms of reference must be provided to Land Transport NZ for

approval, and shall state as a minimum, the:
• purpose
• scope
• methodology
• timeframe
• deliverables/outputs, and
• cost estimate.
Note: Regional walking and cycling strategies are funded under work category
96, regional land transport planning.

Page 2-54
2.6.2 Infrastructure
Introduction This activity includes the following work categories:
Name: W/C no.
• Pedestrian facilities 55
• Cycle facilities 58
W/C 55: The pedestrian facilities category provides for the construction of facilities
Pedestrian that:
facilities
• will form part of a transport network
• are identified either specifically or generically in a current walking and/or

cycling strategy
• will induce higher numbers of pedestrians (or reduce the rate of decline), and
• are not an integral part of a road construction project.
Examples of qualifying activities are:
• 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. Work categories 78 and 66
provide for passenger transport shelters).
This category includes all markings, traffic signals, lighting, etc necessary to
bring the facility into service.

Page 2-55
2.6.2 Infrastructure, continued
W/C 58: The cycle facilities category provides for the construction of facilities that:
Cycle facilities
• will form part of a transport network
• are identified either specifically or generically in a current cycling and/or

walking strategy
• will induce higher numbers (or reduce the rate of decline) of cyclists
• improves safe access for cyclists, and
• are not an integral part of a road construction project.
Examples of qualifying activities are:
• bicycle parking
• kerb ramps
• bicycle racks
• signage
• cycle lanes on bridges
• separate cycling carriageways
• widening the existing carriageway to provide cycle lanes.
This category includes all markings, traffic signals, lighting, etc necessary to
bring the facility into service.
Note: Maintenance of the pavement and fixtures associated with cycleways,

including the operation of cycleway lighting is provided for under work category
14, cycleway maintenance.

Page 2-56
2.7 Activity class 10 – administration and project

control
Overview
Activity Page
2.7.1 State highways 2-57
2.7.2 Territorial 2-58
2.7.3 Regional 2-59

Page 2-57
2.7.1 State highways
Introduction The state highways activity applies to the following categories:
Name: W/C no.
• Administration 91
• Project control 92
W/C 91: The definition for the administration category (state highways) will be advised
Administration by separate amendment when policy is developed and approved by Land
Transport NZ.
W/C 92: The definition for the project control category (state highways) will be advised
Project control by separate amendment when policy is developed and approved by Land
Transport NZ.

Page 2-58
2.7.2 Territorial
Introduction The territorial activity provides funding support for administration of district
land transport programmes.
W/C 95: The administration support category provides financial assistance to

Administration territorial authorities which support a commitment to the following areas:
support
• 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.

Page 2-59
2.7.3 Regional
Introduction The regional activity provides funding support for administration of regional
programmes and strategies. This activity includes the following categories:
Name: W/C no.
• Regional land transport planning 96
• Passenger rail administration 98
W/C 96: The regional land transport planning category provides financial assistance
Regional land to regional councils to undertake the following statutory land transport
transport
activities:
planning
• the administration cost of regional programme preparation
• regional land transport committee servicing
• regional land transport strategy development, maintenance and reporting.
Note: This category excludes both transportation studies and regional studies.
Transportation studies are programmed by road controlling authorities under
work category 43, transportation studies. Regional studies are programmed by
regional authorities under work category 70, regional studies.
W/C 98: The passenger rail administration category provides financial assistance to
Passenger rail regional councils to undertake the following:
administration
• registration of passenger rail services
• management of passenger rail contracts and monitoring of services.

Page 3-1
Chapter 3 Programme development

procedures
Overview
Introduction This chapter describes how land transport programmes are to be prepared and
submitted to conform with the requirements of the Land Transport Management
Act (LTMA).
National Land Land Transport NZ considers the programmes in a national context and ensures
Transport that only those activities and activity classes that support Land Transport NZ’s
Programme
principal objectives are included in the National Land Transport Programme
(NLTP).
Section Page
3.1 Requirements of the LTMA 3-2
Programme preparation requirements for approved

3.2 3-13
organisations
Approved organisations’ recommendations on the

3.3 Authority’s Land Transport Programme (including 3-41
NZ Police activities)

Page 3-2
3.1 Requirements of the Land Transport Management Act
Overview
Introduction This section describes the requirements of the Land Transport Management Act
(LTMA) in relation to the development of the National Land Transport
Programme (NLTP).
In this section This section covers the following topics:
Topic Page
3.1.1 Land transport programmes 3-3
3.1.2 Land transport programme consultation 3-6
3.1.3 Approval of the National Land Transport Programme 3-12

Page 3-3
3.1.1 Land transport programmes
Introduction Each financial year, every approved organisation shall prepare a land transport
[LTMA s12] programme (LTP) for the next financial year. This consists of the approved
organisation’s recommendations concerning their land transport needs.
Consistency with An approved organisations must, in preparing a LTP take into account:
other strategies
[LTMA s12(5)] • any current national land transport strategy
• the National energy efficiency and conservation strategy
• relevant regional land transport strategies, except in the case of the

Auckland Regional Transport Authority (ARTA) which must give effect to the
Auckland regional land transport strategy unless it is required to do
otherwise by operational considerations that affect the sequencing and
timing of activities, the funding available to it, or its statutory functions or
powers.

Page 3-4
3.1.1 Land transport programmes, continued
What shall be
Every LTP must contain the following information:
included in the
LTP [LTMA
• Activities
schedule 1 part
1]
− List all activities and activity classes, for which any payment is sought in
the current financial year from Land Transport NZ, in order of the priority
that the organisation thinks should be given to those activities or activity
classes.
− For activities and activity classes, indicate their total cost, proposed
starting date, and duration.
− Indicate the options and alternatives (including demand management)

considered for the activities and activity classes.
− Include any activities or activity classes that the organisation

recommends for inclusion in the Authority’s Land Transport Programme.
• Expenditure funded by tolling revenue
− Include expenditure funded by tolling revenue.
− In the case for Transit NZ, also include all significant expenditure (as
indicated in its performance agreement) from sources other than Land
Transport NZ.
− In the case of ARTA, also include all significant expenditure from sources
other than Land Transport NZ.
• Objectives of activities and how they contribute to the purpose of the LTMA
− State the objective or objectives to be achieved by each activity and

activity class.
− State how each activity or activity class contributes to the purpose of the
LTMA.
• Assessment of activities
− Every LTP must include an assessment of how each activity and activity
class:
o assists economic development
o assists safety and personal security
o improves access and mobility
o protects and promotes public health, and
o ensures environmental sustainability.

Page 3-5
3.1.1 Land Transport Programmes, continued
What shall be • Consultation

included in the
LTP [LTMA − Include a summary of the consultation carried out in the preparation of
schedule 1 part the LTP as prescribed in section 3.1.2.
1] continued
• Steps for developing options and alternatives
− Include the steps the organisation intends to take in developing land

transport options and alternatives.
• Long-term financial forecast
− Include a long-term financial forecast that contains a forecast of

anticipated revenue and expenditure on activities for the current financial
year and the nine following financial years.
• Form
− An LTP must be in the form prescribed by Land Transport NZ both in this

manual and in its annual instructions for developing LTPs.

Page 3-6
3.1.2 Land transport programme consultation
Introduction This section covers the consultation requirements of the LTMA.
Consultation Consultation must be undertaken in accordance with the following principles:

principles
[LTMA schedule • that persons who will or may be affected by, or have an interest in, the
2 part 1(1)] decision or matter should be provided by the approved organisation with
reasonable access to relevant information in a manner and format that is
appropriate to the preferences and needs of those persons
• that persons who will or may be affected by, or have an interest in, the
decision or matter should be encouraged by the approved organisation to
present their views to the approved organisation
• that the persons who are invited or encouraged to present their views to the
approved organisation should be given clear information by the approved
organisation concerning the purpose of the consultation and the scope of the
decisions to be taken following the consideration of views presented
• that persons who wish to have their views on the decision or matter
considered by the approved organisation should be provided by the
approved organisation with a reasonable opportunity to present those views
to the approved organisation in a manner and format that is appropriate to
the preferences and needs of those persons
• that the views presented to the approved organisation should be received by

the approved organisation with an open mind and should be given by the
approved organisation, in making a decision, due consideration
• that persons who present views to the approved organisation should be

provided by the approved organisation with information concerning both the
relevant decisions and the reasons for those decisions.
Discretion on The principles set out above are to be observed by an approved organisation in
consultation such manner as the approved organisation considers, in its discretion, to be
requirements
appropriate in any particular instance.
[LTMA schedule
2 part 1(2)]

Page 3-7
3.1.2 Land transport programme consultation, continued
Application of An approved organisation must, in exercising its discretion have regard to:
discretion
[LTMA schedule • the views and preference of persons likely to be affected by, or to have an
2, part 1(3)] interest in, the matter
• the principle that consideration must be given at:
(i) the stage at which the problems and objectives related to the matter
are defined
(ii) the stage at which the options that may be reasonably practicable
options of achieving an objective are identified
(iii) the stage at which reasonably practicable options are assessed and
proposals developed
(iv) the stage at which proposals of the kind described in subparagraph (iii)
are adopted
• the extent to which the current views and preferences of persons who will or
may be affected by, or have an interest in, the decision or matter are known
to the approved organisation
• the nature and significance of the decision or matter, including its likely
impact from the perspective of the persons who will or may be affected by,
or have an interest in, the decision or matter
• the provisions of Part 1 of the Local Government Official Information and

Meetings Act 1987 (if the organisation is a local authority) or the provisions
of the Official Information Act 1982 (in any other case), and
• the costs and benefits of any consultation process or procedure.

Page 3-8
Consultation • An approved organisation that is required to consult Maori in the course of

with Maori preparing an LTP must use the special consultation procedures set out in
[LTMA s18]
part 2 of schedule 2 of the LTMA.
• Part 2 of schedule 2 of the LTMA applies to all approved organisations but is

subject to section 15(5) of the LTMA.
• In addition to complying with part 2 of schedule 2, an approved organisation

must do everything reasonably practicable to separately consult Maori
affected by any proposed activity that affects or is likely to affect:
− Maori land
− Land subject to any Maori claims settlement Act, or
− Maori historical, cultural, or spiritual interests.
• In addition to complying with part 2 of schedule 2 of the LTMA the

responsible approved organisation must consult the land holding trustee (as
defined in section 7 of the Waikato Raupau Claims Settlement Act 1995)
about any proposed activity that affects or is likely to affect land registered
in the name of Pootatau Te Wherowhero under section 19 of that Act.
• Land Transport NZ, Transit NZ and approved public organisations other than
local authorities must:
− establish and maintain processes to provide opportunities for Maori to

contribute to the organisation’s land transport decision-making processes
− consider ways in which the organisation may foster the development of

Maori capacity to contribute to the organisation’s land transport decision-
making processes, and
− provide relevant information to Maori for the purposes of the above two
points.
• The bullet point above does not limit the ability of Land Transport NZ,
Transit NZ, or an approved public organisation to take similar action in
respect of any other population group.
Consultation If an approved organisation is authorised or required by the LTMA or any other

required under enactment to undertake consultation in relation to any decision or matter and
other legislation
those consultation requirements are not consistent with the consultation
[LTMA schedule
2, part 1 (4)] principles above, then the approved organisation may vary its process to
comply with the legislation.

Page 3-9
Transit NZ When preparing its land transport programme, Transit NZ must consult:
consultation
[LTMA s15(1)] • Land Transport NZ
• every affected local authority
• every affected approved public organisation
• the Accident Compensation Corporation
• the Commissioner of Police
• the Ministry of Health
• the New Zealand Historic Places Trust
• land transport users and providers
• affected communities
• Maori, and
• the public.
Regional council When preparing a land transport programme, a regional council (or a territorial
consultation authority having the powers of a regional council) must consult:
[LTMA s15(2)]
• Land Transport NZ
• Transit NZ
• the territorial authorities in the region
• the adjoining regional councils and territorial authorities
• the district health boards in the region
• Maori of the region, and
• the public in the region.

Page 3-10
Territorial When preparing a land transport programme, a territorial authority must

authority consult:
consultation
• Transit NZ
• all regional councils whose jurisdiction includes the district
• the adjoining territorial authorities
• the district health boards in the district
• Maori of the district, and
• the public in the district.

Page 3-11
Other approved When preparing a land transport programme, any other approved organisation
organisation must consult:
consultation
• Transit NZ
• every affected regional council
• every affected territorial authority
• every affected approved organisation
• affected district health boards
• Maori, and
• the public.
Local authority A local authority need not consult any organisation or person referred to above
consultation in regional council consultation or territorial authority consultation above, about
[LTMA s15(5)]
any matter if it has already consulted that organisation or person about the
matter in the course of preparing its current long-term council community plan
or annual plan in accordance with the Local Government Act 2002.
Distribution of By a date appointed by Land Transport NZ, every approved organisation shall
the LTP [LTMA make a copy of its completed LTP available to the public in written form, and
s12(1)(b)(c)]
also forward a copy to:
• Land Transport NZ
• Transit NZ
• the Commissioner of Police, and
• the Secretary for Transport.

Page 3-12
3.1.3 Approval of the National Land Transport Programme
NLTP approval Land Transport NZ shall, for each financial year:

[LTMA s19]
• prepare and adopt an NLTP, and
• make it available to the public in a written form.
In preparing the NLTP, Land Transport NZ shall include:
• identification of any significant upcoming national land transport issues

reasonably known
• approved activities and activity classes
• activities that Land Transport NZ anticipates approving under section 20 in

the next financial year
• a forecast of Land Transport NZ’s anticipated revenue and expenditure for

the current financial year and the 9 following financial years, and
• relevant policy directions of the government in relation to land transport.
Before adopting an NLTP, Land Transport NZ must be satisfied that the

programme contributes to the purpose of the LTMA and to the following:
• assisting economic development
• assisting safety and personal security
• improving access and mobility
• protecting and promoting public health, and
• ensuring environmental sustainability.
Land Transport NZ must also take into account any current national land
transport strategy, relevant regional land transport strategy, and the National
energy efficiency and conservation strategy.
Changes to NLTP In relation to the NLTP, Land Transport NZ:

[LTMA s19 (5)]
• may add, suspend, or abandon any activities or activity classes, and
• must from time to time amend the NLTP to reflect such decisions, but
• need not make an amendment available to the public in a written form

unless it is satisfied that the amendment is significant.

Page 3-13
3.2 Programme preparation requirements for approved

organisations
Overview
Introduction Programmes shall be prepared on the basis of the work categories defined in
this manual. This section describes the elements to be considered when
preparing the programme.
Note: This section covers the requirements for all approved organisations
including road controlling authorities and regional authorities. However, not all
topics, nor blocks of information within topics, are applicable to all approved
organisations.
Topic Page
3.2.1 Programme submissions 3-14
3.2.2 Allocation process 3-15
Regional co-ordination for regionally distributed

3.2.3 3-23
funds
3.2.4 Road maintenance 3-25
3.2.5 Escalating future years’ costs 3-29
3.2.6 Status of estimates for improvement projects 3-30
3.2.7 Project development status 3-32
3.2.8 Professional services and administration 3-34
3.2.9 The approved National Land Transport Programme 3-37
3.2.10 Multi-party projects 3-38

Page 3-14
3.2.1 Programme submissions
Introduction The Land Transport Management Act (LTMA) requires programmes to be

submitted to Land Transport NZ by a date appointed by Land Transport NZ, and
advised in its annual instructions for developing land transport programmes
(LTPs).
Rules for Rule: Proposed LTPs are to include all activities and activity classes proposed
proposed for inclusion in the National Land Transport Programme (NLTP), complete with
programmes
supporting project evaluations.
Rule: Proposed LTPs are to include local authority recommendations on

activities and activity classes to be included in the Authority’s Land Transport
Programme.
Rule: Proposed LTPs for road controlling authorities are to include justification
of road maintenance requests.
Rule: Proposed LTPs for regional authorities are to include:
• requested 10-year programmes for passenger transport community and

social services, and
• indicative bids for transport demand management, rail and sea freight
proposals, together with an indicative ten-year forward programme.
Note: A late submission of supporting documentation may result in Land

Transport NZ’s inability to include proposed projects in the NLTP.
Variation of LTPs The organisation responsible for preparing an LTP may, by agreement with Land
[LTMA s14] Transport NZ, vary the programme from time to time during the financial year
in which it applies.
Any variation to a programme must comply with all the requirements for the
preparation of the initial programme.
Note: Land Transport NZ may (without limitation) decline to agree to a

variation of an LTP if it is reasonably satisfied that the subject matter of the
variation could reasonably have been included in the organisation’s land
transport programme.
Confirmed The approved organisation’s chief executive or delegated representative is to

programmes confirm the organisation’s proposed programme in writing to Land Transport
NZ’s partnership manager no later than the date specified in Land Transport
NZ’s annual instructions for developing LTPs.
Note: Transit NZ will submit their proposed programme directly to Land

Transport NZ’s national land transport programme manager.

Page 3-15
3.2.2 Allocation process
Introduction The LTMA sets a challenging new framework for Land Transport NZ to follow in
allocating funding. It reflects a new multi-modal approach, encourages long-
term planning and allows funding flexibility to achieve an integrated, safe,
responsive and sustainable land transport system. Land Transport NZ has
adopted a six-stage approach, which is summarised on the following page. The
overall aim of the approach is to provide the opportunity for all the key
information about each activity – both quantitative and qualitative – to be
brought together within a framework that allows the Land Transport NZ Board
to determine:
• which projects should be included in an indicative programme of expenditure

for the next 10 years
• the relative priority and programming of the projects over the 10-year period
• which projects in the indicative programme should be listed in the NLTP as

likely to start in year one
• which projects should be give immediate approval to start.

Page 3-16
3.2.2 Allocation process, continued
Introduction, Rule: For all activities in the construction activity classes (including transport
continued demand management, rail and sea freight, passenger transport infrastructure,
regional development, and walking and cycling, but excluding transportation
studies, crash reduction studies, strategy studies and walking and cycling
strategies) that are submitted for inclusion in the NLTP, a project evaluation
and project evaluation checklist shall be completed by the proposer in
accordance with the current issue of Land Transport NZ’s Project evaluation
manual volumes 1 and 2, whichever is appropriate, prior to requesting funding
approval.
Rule: Activity requests shall be submitted into Land Transport NZ’s Land
transport programmes (LTP) online system. The project evaluation worksheets
and checklist are supporting documents which should be submitted
electronically in LTP online.
Note: Land Transport NZ’s Project evaluation manual volume 1 and volume 2
both provide instructions and guidance on how to undertake economic
evaluations.
For activities with a total cost less than $3 million, the first year rate of return
(FYRR) may be used as an indicator of optimal project timing. For activities with
a total cost greater than or equal to $3 million, FYRR will be considered in
conjunction with the potential impacts of delaying the activity, including impacts
such as planning timetables, land and property purchase options, land
development, and costs of construction. Further information on FYRRs can be
found in section 3.6 of Land Transport NZ’s Project evaluation manual
volume 1.

Page 3-17
Land Transport NZ’s six-stage allocation process
Stage 1
Formulation
Formulation of land transport programmes
by approved organisations (including
strategic packages)
Funding options identified
Stage 2
Stage 6
Monitoring Assessment
Review and optimisation of proposals
Overall programme monitored - including against LTMA requirements
delivery of packages and activities Alternative funding options
considered
Stage 5 Stage 3
Approval Prioritisation
Funding approved if activity meets Ranking of optimised proposals
LTMA requirements and funds using assessment factors
available from relevant Cost to NLTF is considered
funding sources
Stage 4
Programming
Forward 10-year programme prepared
Availability and timing of funding
taken into account
Stage one – In stage one:

formulation
• approved organisations formulate land transport programmes (including
strategic packages)
• approved organisations identify funding options
• Land Transport NZ encourages approved organisations to discuss and seek

funding for proposals that contribute to the process of the LTMA.
Stage two – In stage two, approved organisations are required to assess their proposals in
assessment terms of the LTMA. Land Transport NZ will review the assessment and assign a
profile to each proposal covering:
• the seriousness and urgency of the issue or problem being addressed
• the effectiveness of the proposed solution in contributing to Land Transport

NZ objectives and the outcomes of the LTMA
• the economic efficiency of the proposal.

Page 3-18
Stage three – In stage three, Land Transport NZ uses the profiles to assist the prioritisation,
prioritisation having regard to the provisional allocation of funds to each activity class and
the specific prioritisation processes applying to certain activity classes.
Stage four – Programming (in stage four):

programming
• is the final step leading to the production of the NLTP
• involves a balancing by Land Transport NZ of the priority order of proposals

with the estimated revenue and proposed allocation to activity classes
• requires a consideration by Land Transport NZ that the programme as a

whole is meeting the requirements of the LTMA by being balanced across
activity classes and ensuring integration between major transport projects
and services.
Stage five – Before approving funding of an activity or activity class, Land Transport NZ in
approval stage five verifies the assessments made in stage two and ensures all other
requirements are met.
Stage six – In stage six, Land Transport NZ will monitor the implementation of the NLTP
monitoring through:
• assisting, advising and co-ordinating the development of performance

monitoring tools for approved organisations
• performance monitoring of selected elements of the transport system
• monitoring the effectiveness of the overall programme at the strategic

outcome level
• auditing packages of integrated proposals where appropriate
• monitoring of individual activities within the NLTP.
As a result of its monitoring process, Land Transport NZ will assist and advise
approved organisations to review their land transport programmes to make
them more effective in future years.

Page 3-19
Allocation for Requests for allocations in the property activity class shall be included in the
the property proposed programme as a project phase of the project to which the property
activity class
purchase relates.
Allocation for Funding for this activity class is eight percent of each road controlling
the minor safety authority’s block maintenance allocation.
activity class
Fees only Transit NZ may submit requests for the investigation phase and the design
requests phase of projects prior to requesting funds for the construction phase.
Territorial authorities may submit separate requests for the investigation and
design phases of projects with an estimated total project cost of $400,000 or
more, provided that the territorial authority has made a commitment to proceed
with the project once the investigation and design phases are complete.
For other projects, territorial authorities may either:
• request a lump sum amount for advance fees in order to develop those
projects for possible construction funding within the next three years, or
• claim those fees when the construction project is approved.
Accountability The approved organisation is accountable for the accuracy, completeness and
for quality of appropriateness of the information provided, and of the assumptions made in
project
determining the benefit-cost ratio (BCR).
evaluations
Land Transport NZ encourages approved organisations to have their project

evaluations independently peer reviewed, to increase their confidence in the
quality of the evaluations and give greater certainty that their projects will be
approved. Land Transport NZ prefers that independent peer reviews be carried
out by an organisation other than that responsible for the initial economic
analysis.
Note: Approval of a project in the NLTP does not necessarily mean that Land
Transport NZ has validated the information or economic analysis provided by
the approved organisation. The approval of a project means that the economic
evaluation is only verified in terms of the checklist for project evaluations.

Page 3-20
Review of Land Transport NZ will review the submitted project evaluations on the basis of
project risk and project value as follows:
evaluations
• all projects involving more than $3,000,000 in construction costs
• all projects involving more than $1,000,000 in construction cost where the
approved organisation has not provided an independent peer review.
Note: Land Transport NZ will also review a sample of other submitted projects.
Committed Commitments arising from approved activities do not have to be prioritised.

activities This is because they will have already been accepted by Land Transport NZ as
approved activities.
LTP online Activity information for each new activity being promoted by an approved
system organisation must be submitted to Land Transport NZ using Land Transport
NZ’s LTP online system.
LTP online will remain the base source of data from which information is
extracted to present the various reports for decision makers. Therefore,
information entered into LTP online for activities that are submitted for funding
approval must be complete, current and accurate to enable programme and
funding decisions to be made. Incomplete submissions may result in delay to
processing of applications.
Note: Activities can be entered into LTP online and remain with draft status
until the information requirements have been completed and the activity
included in a LTP submitted to Land Transport NZ.
Note: Guidelines for using LTP online will be provided on Land Transport NZ’s
website as on-line help.

Page 3-21
Profiling of The following text outlines how Land Transport NZ will treat activities in
activities compiling the NLTP and how they will be treated throughout each year.
When compiling the NLTP, Land Transport NZ develops profiles for all activities,
as outlined in Land Transport NZ’s funding allocation process. Profiling involves
scoring the activity across each of the three factors: seriousness and urgency of
the problem; effectiveness of the proposed solution; and efficiency of the
proposed solution. Therefore, a profile of HMM, means the activity was scored
high for seriousness and urgency, medium for effectiveness and medium for
efficiency. These profiles form the basis of activity prioritisation.
On the basis of funds allocated to the road construction activity classes,

threshold profiles may be established for different work categories. Those
category 2 activities that, on the basis of information supplied, have profiles at
or above the indicative threshold will be listed as indicative priority activities.
We anticipate these activities will proceed to funding approval once preparatory
issues, such as resource consents, property purchase and completion of design,
have been completed (ie, the activity has achieved category 1 status) and
provided the original profile continues to be validated by subsequent
information.
Those activities that, on the basis of information supplied, have profiles below
the threshold (or there was insufficient information to assess the profile) are
listed as reserve activities. These activities could proceed to funding approval
only if the characteristics of the activity change such that its profile meets the
threshold profile for its work category, or Land Transport NZ’s ability to fund
these activities changes.
Note: Land Transport NZ will review its funding threshold profiles each year as
it develops its NLTP using its allocation process.
Note: Land Transport NZ may use different thresholds for activities funded
using regionally distributed, or Crown funds than those funded using nationally
distributed funds.

Page 3-22
Profiling of For the majority of local road construction work categories, the threshold profile
activities for including activities as indicative priority projects in the NLTP was either MMH
or HMM. Effectively, this meant that for generic activities with medium
seriousness and urgency and effectiveness, only those with relatively high
efficiency would be funded. However, activities that addressed a very serious or
urgent problem may have had lower efficiency and still have been approved for
funding.
Consequently for an activity on the reserve list to proceed to funding approval,

it needed to demonstrate that either the activity’s efficiency had improved to
meet the threshold or there were features of the activity that mean it should
rate more highly than the generic profile on the factors for seriousness and
urgency or effectiveness.
Assessing each Further information on assessing each NLTP activity class is in attachment 2 of
NLTP activity Land Transport NZ’s funding allocation process.
class

Page 3-23
3.2.3 Regional co-ordination for regionally distributed funds
Introduction In December 2003, the government announced additional funds for land
transport over a 10-year period, to be distributed regionally on the basis of
population.
These regionally distributed funds are to be allocated through the NLTP by Land
Transport NZ in accordance with the requirements of the LTMA. Making the best
use of the additional funds will require good co-ordination and agreement within
each region.
Regional Land Transport NZ wishes to see processes established for ensuring the
advisory groups relevant organisations in each region have the opportunity to give their co-
ordinated views about the priority for the use of the additional levels of funding.
The following mechanism for seeking regional input is suggested:
• Approved organisations in each region establish a regional advisory group of

elected members drawn from the relevant approved organisations. A
regional officers group will support the regional advisory group.
• The purpose of the regional advisory group – and the supporting officer
group – will be to develop an assessment of problems and preferred
solutions to inform the allocation of the regionally distributed funds to
activities or activity classes. Land Transport NZ will use this assessment, in
conjunction with land transport programmes, to allocate the regionally
distributed funding.
• The assessment would cover activities expected to start in the next financial
year, with an indication of priorities for activities likely to start in any of the
remaining years that the regionally distributed funds are available. Land
Transport NZ’s regional staff will be available to work with the regional
officers group to provide advice and assistance.
• How the advisory group is convened will be a matter for each region to
decide. Some regions have indicated that the regional land transport
committee will undertake the role of regional advisory group.
• In Land Transport NZ’s view a key requirement for each advisory group will
be representation by all approved organisations to ensure that the
assessment of regional priorities is consistent with the land transport
programmes of the approved organisations.

Page 3-24
3.2.3 Regional co-ordination for regionally distributed funds, continued
Timing for input Land Transport NZ:

from the
regional • will prepare a draft NLTP showing the nationally and regionally distributed
advisory groups allocations for each region based on the draft land transport programmes,
and send this to each regional advisory group for comments to be made by a
date to be determined by Land Transport NZ. The regional advisory group
would also finalise its assessment of regional priorities during this period,
using the draft land transport programmes
• will finalise and announce the NLTP in June. Also in June, regional advisory
groups will be requested to begin reviewing their priorities for use in the
preparation of the next year’s NLTP
• would also welcome an assessment of regional priorities for future financial

years where this is built into local authority long-term council community
plans (LTCCPs).

Page 3-25
3.2.4 Road maintenance
Block allocation A block allocation for basic maintenance activities comprises the activities:
• structural maintenance
• corridor maintenance
• professional services.
Determination of The annual funding level for an approved organisation’s block maintenance
annual allocation will be determined by Land Transport NZ, which will consider the
maintenance
outcomes of negotiations with approved organisations, other funding
programme
applications it has received and other allocations it expects to make from the
available funds. Land Transport NZ will use the following information to assess
maintenance funding requests:
• the approved organisation’s submission for maintenance funding
• the approved organisation’s road asset management plan
• Land Transport NZ’s Maintenance guidelines for local roads
• recommendations from Land Transport NZ’s treatment selection algorithm

and/or pavement deterioration modelling reports
• trends in network condition
• benchmarking comparisons with other approved organisations
• committed programmes
• balance between routine maintenance, renewals and capital improvement

activities
• LTMA purposes and objectives
• the approved organisation’s LTCCP and any relevant annual plan
• previous levels of investment
• the condition of the road network derived from physical inspections
• findings from technical audit reports.

Page 3-26
3.2.4 Road maintenance, continued
Maintenance The negotiation process will be carried out between Land Transport NZ’s
negotiation regional staff and the road controlling authority representatives. The
process
negotiations will proceed as outlined below, in accordance with a timeframe
determined by Land Transport NZ and advised in its annual instructions for
developing land transport programmes:
Step Process Time frame
1 The approved organisation forwards a copy of their current road asset By 1 July of the
management plan and provides a statement on the completeness of their year prior to the
RAMMS (or equivalent) inventory database. If there is a significant financial year
difference between an approved organisation’s levels of service and Land for which the
Transport NZ’s Maintenance guidelines for local roads, then this should be maintenance
discussed in their asset management plan. funding request
is being made.
2 Land Transport NZ presents to each approved organisation the results of By 30
the end of year review of performance measures and comments on road September
asset management plans.
3 The approved organisation presents its funding request supported by By 11
RAMMS (or equivalent) outputs. If there is a significant difference between November
an approved organisation’s request and their asset management plan, the
reasons for the difference should be given in the approved organisation’s
request to Land Transport NZ.
4 Funding requests are discussed, clarified and agreed with Land Transport December/
NZ’s partnership managers. January/
February
5 Land Transport NZ’s partnership managers recommend allocations for each By 15 March
approved organisation. Land Transport NZ’s maintenance advisory group,
in consultation with the approved organisation, will review any difference
of views.
If agreement is not possible, an industry group on road maintenance
funding will consider the approved organisation’s case and advise Land
Transport NZ of the appropriateness of the approved organisation’s
standards and intervention levels.
Where an approved organisation wishes to maintain a maintenance activity
to a higher standard than that agreed to in step 4, the portion of
expenditure receiving financial assistance will be based on the expenditure
required to achieve the agreed standards and intervention levels.
Where an approved organisation wishes to maintain a maintenance activity
to lesser standards and intervention levels than Land Transport NZ’s
guidelines, financial assistance will be based on the least expenditure. If
the lower standards and intervention levels cause deferred maintenance,
Land Transport NZ reserves the right to not financially assist any future
cost greater than the equivalent optimal life-cycle cost.
6 Land Transport NZ and the approved organisation will reconsider their By early April
positions based upon the industry group’s advice.
7 Land Transport NZ staff will then recommend maintenance allocations for By early April
each approved organisation for Board approval.
8 The Land Transport NZ Board considers the staff recommendations for April meeting
approval of the final allocations.

Page 3-27
3.2.4 Road maintenance, continued
Allocations for Requests for emergency work allocations should not be made during the
emergency work programme preparation process. These will be handled at programme reviews.
Allocations for Approved organisations should use Land Transport NZ’s LTP online system to
preventive inform Land Transport NZ of their forward budgets for preventive maintenance.
maintenance
However, actual applications for preventive maintenance:
• will be handled at programme reviews, and
• should be made on the following form.
Form 3.1 Form 3.1, for applications for preventive maintenance on local roads, is
provided on the following page.

Page 3-28
Form 3.1
Preventive maintenance
Application for financial assistance
1 Name of road controlling authority:
2 Name of project:
3 Problem definition and location (continue on separate sheet if necessary):
4 Preferred remedial option:
5 Estimated total cost of work ($000):
6 Programming of expenditure ($000):
Current Year Year 2 Year 3 Total

/ / /
7 Certified correct (engineer’s signature): Date:
For Land Transport NZ use only-
8 Site inspected and preferred remedial option confirmed as being appropriate and eligible for
financial assistance:
Signature of partnership manager: Date:

Page 3-29
3.2.5 Escalating future years’ costs
Guidelines for Escalation need not be applied to future years’ costs or budgets, but if it is
applying applied then it shall be applied consistently in each work category to the related
escalation
projects and budgets in the same manner as escalation is reflected in the most
recent LTCCP or annual plan for those activities. When escalation is applied the
land transport programme shall include the rate of escalation applied year on
year.
Rule: All costs are to be shown exclusive of GST.

Page 3-30
3.2.6 Status of estimates for improvement projects
Introduction Note: The status of estimates information below only applies to:
• non-state highway projects
• projects with a total cost less than $3 million.
Three types of cost estimates are used for the purposes of project development.
These suggest the estimate’s accuracy based on the amount of information
available when the estimate is prepared.
For non-state highway projects, with a total cost less than $3 million, these
estimates are:
• rough order of cost (ROC)
• preliminary assessed cost (PAC)
• firm estimate of cost (FEC).
For state highway improvement projects, or projects with a total cost of $3

million or greater, the requirements of Transit New Zealand’s Cost estimation
manual (SM014) shall apply.
A copy of SM014 can be obtained from Transit NZ’s website:

www.transit.govt.nz
Rough order of The ROC estimate is an early estimate based on limited knowledge of a project
cost (ROC) before a specific brief is prepared or a site is secured. There may be little known
of the possible type of construction or of the possible layout of the project. No
preliminary site information may be available.
The ROC estimate should only be used for:
• the broad and long-term planning of expenditure
• preparing a project evaluation to justify funds for developing a more detailed

cost estimate.
Note: The ROC estimate has a probable accuracy of between –30%

and +50%.

Page 3-31
3.2.6 Status of estimates for improvement projects, continued
Preliminary The PAC estimate is based on a complete brief for the project. This brief would
assessed cost be based on the preferred option and sketch plans that show the dimensions
(PAC)
and extent of construction. Basic preliminary site investigations and design
would have been done to determine a feasible form of construction for the
project.
Detailed working drawings and quantities for the components of the facility
would not be available.
Note: The PAC estimate has a probable accuracy of between –25% and +25%.
Firm estimate of The FEC estimate is based on construction drawings, specifications, and a
cost (FEC) schedule of quantities as detailed for pricing by tenderers. Where ground
conditions are not fully known, provisional quantities might be needed for some
items.
All significant construction operations and costs must be covered.
Note: The FEC estimate has a probable accuracy of between -5% and +10%.
Rules The following rules apply:
• Projects for which investigation fees are being sought must be supported by
a BCR identified in a project feasibility report based on an ROC estimate.
• Funds for design fees must be supported by a BCR identified in a scheme

assessment based on a PAC estimate.
• Construction allocations may be sought on the basis of the scheme

assessment. However, the allocation is provisional and subject to
confirmation of the BCR based on an FEC estimate.
• When the project cost is re-estimated at each stage of the project

development process for the purpose of project evaluation, the current
property value is to be included in the project cost.

Page 3-32
3.2.7 Project development status
Introduction To provide certainty that approved projects will utilise the funds allocated,
funding approval is conditional on projects having progressed to certain fixed
points on the project development flow chart.
Category 1 A project phase will only be included in the NLTP as category 1 when the prior
projects phase has been completed and the project has been assessed as meeting the
funding criteria applying to the next phase. Approved organisations must
confirm that these projects have substantially reached the specified point before
Land Transport NZ will consider funding approval.
Category 2 A project phase will be listed in the NLTP as category 2 when either the prior
projects phase has not been completed or the project not assessed as meeting the
funding criteria. Projects accepted in this category will be listed in the NLTP
book and considered for funding approval at monthly programme reviews once
they have reached the appropriate point to allow them to progress to
category 1.
Land Transport Land Transport NZ expects that construction projects submitted as category 1
NZ’s expectation and subsequently approved in the published NLTP will be advertised for tender
by 30 September and contractually committed (ie tender awarded) by 30
November. Land Transport NZ also expects that projects approved at monthly
NLTP reviews will be advertised for tender by the end of the following month (ie
four weeks after approval) and contractually committed within a further two
months.
Unless Land Transport NZ decides otherwise (after receiving a status report

from the approved organisation), those projects not contractually committed by
the above dates will revert back to category 2 status and will therefore need to
be re-submitted for funding approval.

Page 3-33
Project development flow chart for physical works projects
Identify potential projects

Project
feasibility Complete project feasibility report (PFR) and rough
report order of cost (ROC)
Provide supporting information, incl. preliminary BCR

to Land Transport NZ
Land Transport NZ confirms project meets

allocation process funding criteria
Land Transport NZ lists design as a cat. 2 project

in NLTP and confirms investigation funding
Prepare project proposals
Complete scheme assessment report and preliminary

Investigation assessed cost (PAC)
and
reporting Assess project against Land Transport NZ’s allocation
process
Define land requirements and initiate land purchase

or entry agreements
Provide supporting information, including recalculated

BCR to Land Transport NZ

Land Transport NZ lists construction as a cat. 2

project in NLTP and confirms funding of design
Complete design, contract documents, and firm

Design
estimate of cost (FEC)
and
planning
Obtain required consents and land entry
Provide supporting information, incl. recalculated BCR

to Land Transport NZ

Land Transport NZ confirms funding for

construction/implementation
Construction/
implementation Evaluate tenders
Recalculate BCR

Page 3-34
3.2.8 Professional services and administration
Introduction Land Transport NZ makes a distinction between:
• professional services, and
• administration activities.
Administration activities consist of two sub-groups:
• general administration, and
• project control.
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.
Note: Administration activities that are directly related to outputs or capital

projects are identified as project control. Those which are not, are identified as
general administration.
Professional Professional services activities include the following:

services
• planning, investigation, design, performance, and quality monitoring of
physical works activities (maintenance and construction)
• preparing:
− project feasibility reports
− asset management plans
− safety management strategies
− environmental management strategies
• reporting to the asset manager:
− on physical and financial performance of physical works contracts
− on the physical and safety condition of road assets, including

recommendations for maintaining, enhancing, or disposing of assets
(including costs)

Page 3-35
3.2.8 Professional services and administration, continued
Professional • gathering information:

services,
continued − for computerised pavement management system (carrying out ratings,
and ensuring all road data on completed work is kept up to date)
− for bridge rating systems (to ensure all bridge data on completed work is
kept up to date)
• undertaking:
− transportation planning, traffic management and strategy studies
− safety audits and crash reduction studies
• developing, managing, and administering physical works contracts
• evaluating physical works tenders
• obtaining building and resource consents
• legalising existing roads
• responding to public enquiries
• providing:
− road condition information
− contract arbitration services
− management consultancy services
− property management services
− specialist advice (eg supervision of overweight permits)
• consulting landowners and affected parties (project specific).

Page 3-36
3.2.8 Professional services and administration, continued
Administration The following table identifies examples of activities not deemed to be

professional services. They are therefore classed as administration activities.
Note: Administration activities that are related to outputs or capital projects

are identified as project control. Those that are not are identified as general
administration.
Project General
Administration activity
control administration
Setting and administering policy and standards, risk and
9
levels of service
Approving and administering asset management plans 9

Owning maintenance management systems 9
Owning infrastructure databases 9
Managing a land transport disbursement account 9
Preparing financial assistance claims 9
Preparing and reviewing annual plans, LTPs and longer-
9
term programmes
Administering database of tenderers 9

Servicing democracy, including providing customer/
9
ratepayer interface
Collating monthly work value reports 9 9

Reviewing other programmes 9 9
Providing data and information to Land Transport NZ,
9 9
Audit NZ, etc.
Providing administration duties (eg correspondence,
9 9
record management)
Monitoring the performance of the network 9 9

Undertaking consultation associated with Treaty of
9 9
Waitangi issues
Reporting on annual plans 9 9

Developing and operating communications plans and
9 9
strategies
Preparing and administering service agreements or
contracts with professional services providers (internal 9
and external)
Evaluating professional services tenders 9
Accepting physical works tenders 9
Resolving disputes (excluding arbitrating) 9
Checking/approval of resource consents 9
Reviewing traffic management/transportation inputs.
9
Reviewing safety audits
Interpreting and approving recommendations from
professional services reports and investigations,
9
including review of reports (using RAMMS and other
methods) that assess the condition of road assets

Page 3-37
3.2.9 The approved National Land Transport Programme
Maintenance By a date specified in the annual instructions for developing land transport
programme programmes, each approved organisation is allocated an approved maintenance
programme.
Minor safety The allocation for minor safety projects will be approved with the maintenance
projects programme.
Improvement Land Transport NZ will approve, by a date specified in the annual instructions
and replacement for developing land transport programmes:
activities
• A list of improvement and replacement activities approved in previous years
which have a financial commitment into the forward year.
• A list of new improvement and replacement activities for which a specific

financial allocation has been made in the NLTP. The activities on this list will
be known as approved activities.
• Lists of improvement and replacement activities for which financial provision

has been made in the NLTP sufficient to fund some of the activities. The
activities on this list will be known as ‘indicative priority’ (category 2)
activities. Individual activities within this list are not approved at this time,
but will be eligible for consideration for funding approval at monthly
programme reviews subject to them having reached category 1 status.
Note: Funding approval for new improvement and replacement activities

depends upon the level of funding available in the national land transport
account, the cases put forward in LTPs and the recommendation of the relevant
Land Transport NZ partnership manager. Any organisation that commits or
commences a new activity prior to funding approval does so at its own risk.

Page 3-38
3.2.10 Multi-party projects
Introduction Financial assistance for nominated multi-party projects that involve more than
one approved organisation receiving financial assistance for the project will be
conditional on the parties entering into a formal funding agreement. The extent
of detail required in the agreement will depend on the size, complexity and
duration of the project.
Approval of Each multi-party funding agreement shall be developed in consultation with the
agreement appropriate Land Transport NZ partnership manager, executed by the parties
involved and sent to the partnership manager prior to funding being released.
Content of The multi-party funding agreement shall include the following:

agreement
1. The organisation responsible for the overall project management and
recovering costs from other parties (the lead organisation).
2. The total project cost, the total cost of each phase and the agreed division
of these costs between each party and whether a financial summary report
is required.
3. The organisation responsible for reporting to Land Transport NZ on project

changes.
4. The organisation responsible for preparing and updating the economic

analysis at the key points during the project life.
5. How the parties’ separate interests are protected within the contractual
arrangement.
6. A risk sharing and approvals procedure for any variations, contractual

disputes etc.
7. The basis for accounting for the respective parties’ costs associated with the
project.
Programming Each approved organisation shall identify its specific portion of the project cost
in its state highway or land transport programme submitted through LTP online.

Page 3-39
3.2.10 Multi-party projects, continued
Claims Each approved organisation shall claim financial assistance for its portion of the
project cost.
When required in terms of the agreement, each claim made by the lead
organisation must be supported by a financial summary report using Form 3.3
(shown on the following page).
Land Transport Land Transport NZ will audit all nominated multi-party projects within six
NZ audits months of the first financial assistance payment to confirm that all accounting
and reporting requirements are being met.

Page 3-40
Form 3.3
Multi-party projects
Financial summary report
(to be submitted by all parties when claiming financial assistance from Land Transport NZ)
Project name
Lead approved organisation
Project manager
Original contract price $
Contract additions plus $
Contract deductions minus $
Current contract price $
Annual expenditure for year 20 ___ / 20 ___
Other party (1) Other party (2)

Lead name: name: Total
organisation
____________ ____________
Current year allocation $ $ $ $
Current year
expenditure to date $ $ $ $
(claim no. _____ )
Current year previous

$ $ $ $
expenditure
Signed: (Project accountant)
Date:
(A copy of this completed form is to be forwarded to other parties for their claiming action)

Page 3-41
3.3 Approved organisations’ recommendations on the Authority’s Land

Transport Programme (including NZ Police activities)
Overview
Introduction Approved organisations are to include in their land transport programmes

recommendations on the activities or activity classes to be included in the
Authority’s Land Transport Programme (ALTP). This section describes the form
and content for such recommendations.
Topic Page
3.3.1 ALTP process 3-42
3.3.2 Completing ALTP recommendations 3-43

Page 3-42
3.3.1 ALTP process
Introduction Land Transport NZ, the Authority, is required to prepare a land transport
programme recommending Land Transport NZ and NZ Police activities or
activity classes to be included in the National Land Transport Programme. The
Authority’s Land Transport Programme (ALTP) replaces the SAP from the
2006/07 year onwards.
The following diagram outlines the process for the development of the ALTP.
Process for the Authority’s Land Transport Programme (ALTP)

Land Transport NZ
Key Government
Approved National Land Authority’s Stakeholders Responsible
Organisations Transport Land Transport (Ministry of Transport (MoT)/ Minister/s
Treasury/NZ Police)
Programme Programme (ALTP)
Expectations
MoT policy
development
Strategic direction
Guidelines/
Instructions
Draft Approved
Organisations’ LTPs
Analysis
(including Approved
Organisations’
LTP Recommendations)
Development of Consultation with
ALTP NZ Police
Land Transport NZ Minister receives
ALTP ALTP
MoT/Treasury
review
ALTP approval
Publish ALTP
Publish NLTP
(Highlights ALTP
activities – as approved)
Delivery Delivery Delivery

(Approved Organisations) (Land Transport NZ) (NZ Police)
Performance Monitoring and Surveys

Page 3-43
3.3.2 Completing ALTP recommendations
Introduction Section 2(5) of schedule 1 of the Land Transport Management Act provides for
approved organisations to make recommendations, as part of their land
transport programme (LTP), on the Land Transport NZ and NZ Police activities
or activity classes to be included in the ALTP.
Rules for Rule: Recommendations are required in the form specified in the annual
proposed guidelines for developing LTPs and submitted to Land Transport NZ through its
programmes
LTP online system.
Rule: Recommendations made are to take into account the feedback resulting
from the consultation undertaken for the approved organisation’s LTP.
Draft 2006/07 The published 2005/06 SAP is deemed to be the draft ALTP for 2006/07. It
ALTP provides a base to assist approved organisations to consult and make
recommendations on ALTP activities for the 2006/07 year.
Clusters Of the 74 territorial authorities, 27 have combined into 11 clusters for the
purposes of planning, delivering and reporting on land transport activities,
including road policing activities, at the local level.
Where local authorities cluster together to present a joint recommendation on

NZ Police and Land Transport NZ activities or activity classes, each local
authority involved needs to make the cluster’s recommendation. The reason for
this is that the consultation that the recommendation is based on needs to be
registered in each local authority’s declaration.
Road safety Road safety action plans are of critical importance. Rather than simply focusing
action planning on inputs local authorities are encouraged to have, throughout the year, an
active involvement in the road safety action planning with Land Transport NZ,
NZ Police and other partners at the local level.

Page 3-44
3.3.2 Completing ALTP recommendations, continued
Road policing The 2005/06 SAP provides a base to assist each local authority to comment and
activities or make recommendations regarding road policing activities for the 2006/07 year.
activity classes
Details of NZ Police road policing activities for the current year are contained in
part 3 (pages 24 to 79) of the published 2005/06 SAP. Activity titles,
descriptions, outcomes sought, performance measures and resource levels are
specified. Details of NZ Police road policing resources for each local authority
cluster or area for the 2005/06 year can be found on pages 85 to 123 of the
2005/06 SAP.
Part 3 of the 2005/06 SAP is available online at:

http://www.landtransport.govt.nz/funding/sap/2005/docs/part3.pdf
As in previous years, local authorities are welcome to submit recommendations

on road policing activities, ie the strategic road policing activities of speed
control, drinking or drugged driver control, restraint device control, visible land
transport enforcement, and commercial vehicle investigation and road user
charges enforcement; crash attendance and investigation; traffic management;
police community services; school road safety education; and resolutions.
Approved organisations are asked to indicate, by selecting the appropriate

answer from the LTP online drop down box, their views about the balance of
resources for the road policing activities recommended for delivery in their area.
The drop down box options available are:
• a lesser emphasis would be acceptable
• emphasis about right
• more emphasis needed
• in addition, approved organisations have the opportunity to provide

comments on road policing activities for the 2006/07 year.
All recommendations will be taken into consideration by Land Transport NZ, in

consultation with the NZ Police, in the preparation of the 2006/07 ALTP.

Page 3-45
3.3.2 Completing ALTP recommendations, continued
Land Transport The 2005/06 SAP provides a base to assist each local authority to comment and
NZ’s activities or make recommendations regarding Land Transport NZ’s ALTP activities for the
activity classes
2006/07 year.
Details and descriptions of Land Transport NZ’s ALTP activities for the current
year are contained in part 2 of the published 2005/06 SAP.

Local authorities are welcome to provide recommendations on the activities or

activity classes that make up Land Transport NZ’s component of the ALTP,
namely:
• promotion, information and education (including the Community Road Safety

Programme)
• regulatory, implementation and enforcement
• licensing
• operator rating system.
Approved organisations are asked to indicate, by selecting the appropriate

answer from the LTP online drop down box, their views about the Land Transport
NZ ALTP activities/activity classes recommended for delivery in their area. The
drop down box options available are:
• a lesser emphasis would be acceptable
• emphasis about right
• more emphasis needed.
For the operator rating system, approved organisations are asked to indicate, by
selecting the appropriate answer from the LTP online drop down box, their views
on the proposed system (outlined in part 5 of the 2006/07 Guidelines). The drop
down box options available are:
• yes, agree
• no, do not agree.
In addition, approved organisations have the opportunity to provide comments

on Land Transport NZ’s ALTP activities for the 2006/07 year.
All recommendations will be taken into consideration by Land Transport NZ, in

consultation with the NZ Police, in the preparation of the 2006/07 ALTP.

Page 4-1
Chapter 4 Programme review procedures
Overview
Introduction This chapter describes how the approved National Land Transport Programme
(NLTP) is reviewed during the course of the year.
Purpose of The purpose of reviews of the NLTP is to:

reviews
• give approved organisations the opportunity to request adjustments to their
approved programmes to meet changing circumstances that arise during the
course of the year
• reallocate surplus funds to other activities
• consider applications for approval of emergency and preventive maintenance

work
• consider applications for approval of new activities (category 2 to category 1)
• ensure efficient expenditure from the National Land Transport Account
• ensure a balanced expenditure out-turn at year end.
Section Page
4.1 Monthly programme reviews 4-2
4.2 End-of-year reconciliation 4-14

Page 4-2
4.1 Monthly programme reviews
Overview
Introduction Reviews of the National Land Transport Programme (NLTP) are held monthly
from July to June of the programme year. Special reviews are held in August to
consider supplemental claims from the previous year and end-of-year
reconciliation requests.
This section identifies the information required from approved organisations

seeking programme adjustments at reviews of the NLTP.
Topic Page
4.1.1 Required action 4-3
4.1.2 Procedures relating to activity cost/scope increases 4-6
4.1.3 Request for programme adjustment 4-8
4.1.4 Delegated block allocation transfers 4-11
Request for funding approval of category 2

4.1.5 4-12
activities

Page 4-3
4.1.1 Required action
Introduction Approved organisations shall routinely advise Land Transport NZ’s partnership
manager of any programme adjustments required.
Early declaration Any excess funds shall be declared as soon as they are identified. Early
of excess funds declaration of excess funds will not preclude the later consideration of a request
for reinstatement of funds.
Note: These requests will be given first priority for available funds.
Types of Requests for programme adjustments will be considered in the following areas:
programme
adjustment • suspended, abandoned and withdrawn activities
• roading maintenance
• improvement and replacement activity:
− cash flow changes
− price level changes
− new activities.
Land Transport NZ’s criteria for considering these adjustments are discussed on
the following pages.

Page 4-4
4.1.1 Required action, continued
Requests to Requests to suspend, abandon, or withdraw activities must be accompanied by

abandon an explanation.
activities
Requests to Requests to adjust roading maintenance must be supported by detailed

adjust roading explanation.
maintenance
Land Transport NZ’s criterion for decreased allocations is that:
• requests will generally be accepted subject to the partnership manager being

satisfied that no long-term adverse effects to the land transport network will
result in terms of Land Transport NZ’s objective to allocate resources in a
way that contributes to an integrated, safe, responsive, and sustainable land
transport system.
Land Transport NZ’s criteria for increased allocations are that the approved
organisation must be able to demonstrate that:
• the need for the increase could not have been foreseen during development
of the initial programme and has arisen due to circumstances beyond its
control
• the requested increase is unable to be accommodated within the current

allocation by deferral of less urgent work
• Land Transport NZ’s objective, to allocate resources in a way that

contributes to an integrated, safe, responsive, and sustainable land transport
system, will be compromised if additional funds are not approved.
Rule: Request for increased allocations must be supported by a detailed

explanation, as described in section 4.1.3.
Note: Changes approved at reviews will not alter the base maintenance
allocation.

Page 4-5
4.1.1 Required action, continued
Requests to Land Transport NZ’s criteria for improvement and replacement activities (cash
adjust cash flow flow) are:
for improvement
and replacement • requests for reprogramming approved allocations from the current year into
activities
subsequent years (or vice versa) will be considered
• requests for cash flow deferments will generally be accepted subject to the
approved organisation making every possible effort to progress the activity
as per the original programme. Requests for advanced cash flow are
encouraged and will usually be supported.
Note: Adjustments to cash flow are an extremely important review item as

they have the potential to affect the outcomes achieved by the NLTP.
Requests to Land Transport NZ’s criterion for improvement and replacement activities (price
adjust price level) is:
level for
improvement • cost increases or decreases which change the total allocation must be
and replacement
activities supported by detailed explanation, as described in section 4.1.3.
Rule: Requests must be accompanied by revised benefit-cost ratios (BCRs).
Change of If an approved organisation wishes to change the objectives or scope of an

activity scope approved activity, a request shall be made via the review process.
New activities The Land Transport Management Act allows requests for the addition of new
activities, which were not submitted in the land transport programme, to be
considered.
Rule: Submissions for new activities for consideration must conform with:
• chapter three of this manual, and
• the programme information requirements, which have been issued with the
instructions for developing 2005/06 land transport programmes (as a
separately bound document).

Page 4-6
4.1.2 Procedures relating to activity cost/scope increases
Introduction These procedures relate to cost/scope increases on approved improvement and

replacement and maintenance activities.
Land Transport Land Transport NZ expects that approved organisations will manage the
NZ’s expectation execution of approved activities in a manner that ensures the optimum and
most cost-effective outcome. This includes progressively monitoring activity
costs against the approved allocation.
Situations There are three situations in which a cost/scope increase to an approved

arising activity shall be brought to the attention of Land Transport NZ. These are:
• when the revision of an estimate prior to the request for tenders exceeds the
approved allocation
• when the revised estimate based on the recommended tender price exceeds
the approved allocation
• when, during execution of the works it becomes evident that, variations will
increase the activity cost above the approved allocation.
Note: Approved organisations need to apply for an increased allocation as soon

as it becomes apparent that the approved allocation will be exceeded. Land
Transport NZ expects additional funding requests for cost/scope increases to be
made before the additional cost is incurred. Any organisation that commits
additional expenditure over and above the approved allocation does so at its
own risk.
Cost/scope Where the revised BCR is equal to or above the BCR previously accepted by
increases prior Land Transport NZ, any additional allocation will be approved subject to the
to award of
availability of funds and Land Transport NZ’s acceptance of the reasons relating
contract
to the cost/scope increase.
If the revised BCR falls below the BCR accepted by Land Transport NZ for that
activity, it may be withdrawn from the NLTP by Land Transport NZ. If the
approved organisation considers that a special case exists for retaining the
activity in the NLTP, supporting information shall be supplied for Land Transport
NZ’s consideration.
Note: Land Transport NZ may revise the activity’s profile based on the revised
BCR or any other revised factors. If the activity is given a lower profile and that
revised profile falls below the prevailing funding threshold profile, then Land
Transport NZ will either:
• reprioritise the activity
• re-programme the activity, or
• withdraw the activity from the NLTP.

Page 4-7
4.1.2 Procedures relating to activity cost/scope increases, continued
Cost/scope Provided that a cost increase is beyond the control of the requesting
increases during organisation and there has been no change to the scope of the activity, the
execution of the
additional allocation will normally be approved. Approval may, however, be
work
either conditional on an equivalent allocation being released from elsewhere in
the requesting organisation’s programme or subject to the availability of funds
and Land Transport NZ’s acceptance of the reasons relating to the cost
increase.
Note: Where a cost increase is considered to be within the control of the

requesting organisation, or there has been a change in activity scope, each
application will be considered on its merits. A consequence may be withdrawal
of funding for the activity.
Approval of An approved organisation should not assume that, because an activity’s profile
cost/scope (which is revised because of a recalculated BCR or any other factor) remains at
increases
or above the prevailing funding threshold profile for that activity, a cost/scope
increase will be approved. Land Transport NZ reserves the right to not approve
the cost/scope increase of an activity even if the activity’s profile remains at or
above the previously approved profile.

Page 4-8
4.1.3 Request for programme adjustment
Introduction A request for programme adjustment is to be submitted by the approved

organisation if an adjustment is required.
Information When completing form 4.1, the ‘reasons for change’ field shall include a factual,
requirements for concise statement of:
cost/scope
adjustments • what happened
• why it happened
• the effect on the BCR if other than a decrease (eg why it stayed the same or
increased while the cost has risen, and the reason for any increased
benefits)
• any other unusual circumstances.
In addition to the above information in the ‘reason for change’ field for physical
works increases greater than 10 percent or $500,000 and significant
increases in large fees activities, the approved organisation shall provide a
separate, more detailed report which shall be in a letter or memo.
The report should begin with the important information, ie:
• name of activity (project name)
• current approved total cost
• revised total cost
• increase in cost
• current and revised BCR
followed by an explanation (where applicable) of:
• what happened to cause the increase
• why it happened (is there a consultant or contractor liability?)
• whether or not it could have been prevented
• what action is being taken to mitigate the effect of the increase
• the effect on the BCR if other than a decrease (eg why it stayed the same or
increased while the cost has risen, and the reason for any increased
benefits)
• any other unusual circumstance.

Page 4-9
4.1.3 Request for programme adjustment, continued
Information Where the increase occurred during the course of the contract, the report
requirements for should state whether or not the increase was beyond the control of the
cost/scope
approved organisation and the reason for this.
adjustments
continued
Note: The report should not be more than three pages.
Note: Land Transport NZ’s experience is that most cost increases occurring
during the course of construction are due to a combination of insufficient site
investigation, poor quality of contract documents and poor project
management. Land Transport NZ will not favourably consider any cost increase
due to poor performance by a consultant or contractor. Land Transport NZ
expects approved organisations to have smart buyer skills to be able to
competently manage their consultants.
Form 4.1 Form 4.1 is provided on the following page.
Note: The form does not need to be submitted to report delegated block
allocation transfers.

Page 4-10
Form 4.1
Request for programme adjustment
20 ___/___ NLTP programme adjustment at the: review.
Organisation name:
Total cost ($000s)

Work Activity
Activity name Change
category number Before After
$ %
Revised cashflow BCR

Year 1 Year 2 Year 3 Before After
Reasons for change:
Total cost ($000s)

Work Activity
$ %

Reasons for change:
Total cost ($000s)

Work Activity
$ %

Reasons for change:
Submitted by: Date: Page ___ of ___ page(s)

Page 4-11
4.1.4 Delegated block allocation transfers
Introduction An approved organisation may adjust its approved:
• maintenance programme at any time during the year by transferring funds

between work categories comprising the block allocation
• construction programme by transferring funds between activities in an

approved block allocation.
Limitations Transfers are limited by the following requirements:
• Land Transport NZ’s share of the total allocation for the relevant year is not
increased or decreased by the transfers
• the intended quality objectives of the approved programme are retained.
Rule: Transfers between activity classes or across regional boundaries require

Land Transport NZ approval.
Reporting Transfers must be advised promptly to the partnership manager.
Rule: Length adjustments arising from the transfers shall also be reported.
Documentation Reasons for transfers shall be progressively documented by approved

organisations throughout the year. This is so that such information is readily
available for the audit process.

Page 4-12
4.1.5 Request for funding approval of category 2 activities
Introduction A request for funding approval of a category 2 activity may be submitted by the
approved organisation at any monthly review provided that the activity has
achieved category 1 status in terms of its development. The activity details
(such as total cost, cash flow, and BCR) must be re-evaluated and confirmed at
the time the activity is promoted for approval.
Any organisation that commits or commences a new activity prior to funding

approval does so at its own risk.
Form 4.1A Form 4.1A is provided on the following page.
Note: Form 4.1A will be superseded once applications for funding are made
using Land Transport NZ’s LTP online system, and category 2 to category 1
approvals are made using that system.

Page 4-13
Form 4.1A
Request for funding approval of category 2 activities
Organisation name:
Project name:
NLTP no:
Activity phase: Investigation/design/construction
Current information Previous application

Estimated cost:
BCR:
Current year 20__/__ 20__/__ 20__/__ 20__/__
Cash flow
$ $ $ $ $
($000)
AIS: AF1: AF2:

Yes Yes Yes
Has an AIS form (and AF1 and AF2 as appropriate)
been completed? No No No
N/a N/a
(all activities) (> $3 million) (>$20 million)
Yes
Has the scheme assessment (including peer review)
Not required (at all)
been completed?
Not necessary (for this phase)
Yes
Has a road safety audit been completed Not required (at all and reasons filed)
Yes
Has designation been obtained? Not required (at all)
Yes
Have resource consents been obtained? Not required (at all)
Yes
Has all property been purchased or entry approvals
Not required (at all)
obtained?
Is this a multi-party activity Yes

(ie jointly funded with other RCAs)? No
Intended advertising date:
Signed: Date:

Page 4-14
4.2 End-of-year reconciliation
Overview
Introduction The end-of-year reconciliation is the final review of the year’s National Land
Transport Programme (NLTP) and is undertaken in August.
Topic Page
4.2.1 Overexpenditure on approved activities 4-15
4.2.2 Underexpenditure on approved activities 4-16
Roading maintenance activities and minor safety

4.2.3 4-18
projects

Page 4-15
4.2.1 Overexpenditure on approved activities
Introduction This topic applies to improvement and replacement activities (except minor
safety projects) and emergency work.
The required information is to be provided no later than 31 July.
Cost increases An approved organisation may request that funds be provided for activities that
on completed are complete and overspent relative to the year’s allocation but have no
activities
allocation in subsequent years.
Note: The approved organisation shall provide a list of such activities with the
details of the overexpenditure and revised BCRs.
Cost increases Increases to the total cost of an activity having an allocation programmed over
on committed two or more years are not considered at the end of year reconciliation.
activities
Approved organisations are to submit these requests at the first review of the
following year’s NLTP.

Page 4-16
4.2.2 Underexpenditure on approved activities
Introduction This topic applies to improvement and replacement activities (except minor
safety projects) and emergency work.
The required information is to be provided no later than 10 August.
Uncompleted Requests for carryover of unspent allocation on uncompleted activities are to be

activities identified, and submitted to Land Transport NZ on form 4.2.
Rule: An explanation stating why the full allocation was not spent is required
for each request.
Note: Uncompleted activities include unspent allocations on emergency works

activities. If a financial assistance rate is involved, then it will be recalculated
according to Land Transport NZ policy.
Activities not If an activity is not contractually committed and a carryover is requested, then
contractually it will be treated as a new activity for the purpose of calculating a financial
committed
assistance rate.
Form 4.2 Form 4.2 is provided on the following page.

Page 4-17
Form 4.2
Request for carryover of unspent allocation
20 ___/___ NLTP
Organisation name:
Work Project name Financial Approved Actual Requested Reason for

category/ assistance allocation expenditure carryover requesting a
project rate (%) total cost total cost total cost carryover
number ($000s) ($000s) ($000s)
Submitted by: Date: Page ___ of ___ page(s)

Page 4-18
4.2.3 Roading maintenance activities and minor safety projects
Introduction Roading maintenance activities (except emergency work) and minor safety
projects are not subject to the reconciliation process. However, reporting on the
level of final expenditure may be required.
Maintenance Overexpenditure of the block allocation up to 15 percent of its value may be

treated as an advance of the next year’s allocation.
Note: Where underexpenditure of the block allocation occurs, a carryover of

the unspent allocation will only be considered in exceptional circumstances.
Minor safety Overexpenditure in the minor safety projects work category will be treated as
projects an advance of the next year’s allocation.
Note: A carryover of unspent allocation in the minor safety project work

category will only be considered in exceptional circumstances.

Page 5-1
Chapter 5 Reporting requirements
Overview
Introduction In order to achieve its principal objective, Land Transport NZ has determined
minimum reporting requirements for those organisations receiving funds from
the National Land Transport Account. Other reports may also be required from
time to time.
Section Page
5.1 Achievement reports 5-2
5.2 Annual property purchase reports 5-25

Page 5-2
5.1 Achievement reports
Overview
Introduction In order to monitor the implementation of the National Land Transport

Programme (NLTP), and to report on the achievement to the Minister on a half
yearly basis to the Minister, Land Transport NZ requires achievement reports for
the six months ending both 31 December and 31 July.
This section identifies the information required from approved organisations

reporting achievements.
Topic Page
5.1.1 Mid-year achievement reports 5-3
5.1.2 Annual achievement report overview 5-4
5.1.3 Annual achievement reports (roading) 5-5
5.1.4 Annual achievement reports (passenger transport) 5-13

Page 5-3
5.1.1 Mid-year achievement reports
Introduction In order to monitor the implementation of the National Land Transport

Programme (NLTP), Land Transport NZ requires an achievement report for the
six months ending 31 December.
When the report Approved organisations shall ensure that Land Transport NZ receives the report
must be no later than 31 January.
received
Road controlling For road controlling authorities, the report must contain a listing of the physical
authorities achievement as at 31 December, with completed number of projects and lane
kilometre lengths confirmed, for the categories of work within the following
activities:
• periodic maintenance: percentage of road network undergoing periodic

maintenance
• reseals (excluding seal widening): in lane kilometre deemed to be complete

when opened to traffic
• bridge renewals: in lane kilometre deemed to be complete when opened to

traffic
• construction: in metre squared area and lane kilometre deemed to be

complete when the facility is available for use.
Note: The report is to be prepared on a form provided by Land Transport NZ.
Note: Definitions for these items, in terms of the work categories they include,
are provided on pages 5.6 and 5.7.
Regional Regional authorities may be requested to provide mid-year patronage

authorities boardings, kilometre and farebox information as set out in form 5.1.4 Passenger
transport annual statistics.

Page 5-4
5.1.2 Annual achievement report overview
Introduction To enable Land Transport NZ to update the statistical record of the road asset
and to report on achievement to the Minister, Land Transport NZ requires an
annual achievement report to be submitted to Land Transport NZ at the end of
each programme year.
When the report Approved organisations shall ensure that Land Transport NZ receives this report
must be no later than 31 July.
received

Page 5-5
5.1.3 Annual achievement reports (roading)
Road controlling For road controlling authorities, there are two parts to this report:
authorities
• a physical achievement return, and
• a physical statistics return.
Physical The report must contain a listing of the physical achievement as at 30 June,
achievement with completed number of projects and lane kilometre lengths confirmed, for
return
the categories of work within the following activities:
• periodic maintenance: percentage of roads undergoing periodic

maintenance
• reseals (excluding seal widening): in lane kilometre deemed to be complete

when opened to traffic
• bridge renewals: in lane kilometre deemed to be complete when opened to

traffic
• construction: in metre squared area and lane kilometre deemed to be

complete when the facility is available for use.
Note: The report is to be prepared on a form provided by Land Transport NZ.
Note: Definitions for these items, in terms of the work categories they include,
are provided on pages 5-6 and 5-7.
Instructions and Instructions and relevant forms for preparing the physical achievement return
forms will be provided to all road controlling authorities at the end of the programme
year.
Rule: Prior to submitting the return, an officer of the approved organisation

must annotate the forms to show the physical achievement information. Each
sheet shall have the reporting officer’s name written on it.

Page 5-6
5.1.3 Annual achievement reports (roading), continued
Periodic The percentage of network undergoing work completed in the 12 months to

maintenance 30 June is to be indicated.
Reports shall state the percentage of lane kilometre work completed as a

percentage of network lane kilometre length for:
• W/C 2 (area-wide pavement treatment)
• W/C 3 (major drainage control)
• W/C 4 (maintenance chip seals)
• W/C 5 (thin asphaltic surfacing)
• W/C 6 (seal widening)
• W/C 20 (preventative maintenance)
• W/C 30 (emergency reinstatement)
• W/C 35 (bridge renewals)
• W/C 39 (road reconstruction)
• W/C 40 (pavement smoothing).
Reports are to include work on special purpose roads, if applicable.
Reseals The number of projects and lane kilometre length of work completed in the
12 months to 30 June is to be indicated.
Reports shall state the number of projects and lane kilometre length of work
completed against the planned number and length for:
• W/C 2 (area-wide pavement treatment)
• W/C 4 (maintenance chip seals)
• W/C 5 (thin asphaltic surfacing).
Reports are to include work on special purpose roads, if applicable.
Note: Achievement of work in the seal widening category is not to be reported.
Bridge renewals Projects that have been completed in the 12 months to 30 June are to be
identified.
Reports shall state the number of projects and lane kilometre length of work
completed against planned number and lane kilometre length for:
• W/C 35 (bridge renewals).
Each structure’s lane kilometre length is to be confirmed to the nearest metre.
Bridges are deemed to be complete when opened to traffic.

Page 5-7
Construction The following work categories are to be included as construction items in the
physical achievement return:
• W/C 38 (new bridges)
• W/C 38 (new roads)
• W/C 39 (road reconstruction)
• W/C 40 (pavement smoothing)
• W/C 42 (seal extension)
• W/C 55 (pedestrian facilities)
• W/C 58 (cycle facilities)
• W/C 60 (minor safety projects).
Reports shall state the number of projects, metre squared area and lane
kilometre length of work completed against the planned number and length for
each work category.
Fees projects including transportation, crash reduction and strategy studies are
not considered to result in physical achievements, and therefore are not
reported.
Projects which have been completed in the 12 months to 30 June are to be

identified. Each project’s length is to be confirmed.
Construction projects are deemed to be complete when the entire programmed

length is first-coat sealed or, if this is not appropriate, when the facility is
available for use.
Physical Physical statistics returns using (form 5.1.3(SH), 5.1.3(LR), or 5.1.3(SP)) are
statistics return used to capture the information requested, as at midnight on the 30th of June
for the reporting year. The information collected from these returns will be
updated annually and will serve as the prime statistical reference for land
transport roading activities.
Instructions and The physical statistics return is to be prepared on the appropriate forms
forms provided at the end of this section.
Instructions and relevant forms for preparing the physical statistics return is
provided for state highways, local roads and special purpose roads in the next
sections.

Page 5-8
Form 5.1.3 (SH): These instructions are to be followed when completing form 5.1.3 (SH):
Regional state
highway • Each Transit NZ regional office shall complete one form per local government
summary region.
• Where a length of highway is common to multiple state highway numbers,

the length shall be recorded only once.
• Lengths of state highway revoked on or prior to 30 June of the reporting

year are not to be included.
• Highway lengths shall be reported in kilometres to one decimal place. Bridge

lengths shall be reported in whole metres.
• Highway lengths shall include bridge lengths. Bridge lengths shall be

reported in terms of centreline length of the highway (eg culvert diameter).
• Motorway length shall be reported as that length declared and operating as a

motorway.
• A timber bridge is defined as a bridge with one or more main structural

elements of timber (decks are not considered to be main structural
elements).
Note: A state highway level of service report is to be provided by Transit NZ in

the form of a national RAMM report of condition data.
Form completion The state highway physical statistics return is to be prepared on the appropriate
form provided on the following page.

must annotate the forms to show the physical statistic information. Each sheet
shall have the reporting officer’s name written on it.

Page 5-9
Form 5.1.3 (SH)
State highway annual statistics

as at 30 June
Summary of all state highways in local government region:
A Roads Centreline
length (km) to one
decimal place
1. Total (including motorway)
2. Unsealed
3. Motorway (declared and operating as motorway)
Centreline
B Bridges No.
length
(whole m)
4. All
5. Single lane
6. Restricted (speed only)
7. Restricted (all load)
8. Timber
(one or more main structural elements of
timber, decks are not considered)
Name
Signature
Date
Phone
Email
I have completed this questionnaire on behalf of my organisation, with the necessary authority and
understanding of this data.

Page 5-10
Form 5.1.3 (LR): These instructions are to be followed when completing form 5.1.3 (LR):
Local roading
• One form is required from each approved organisation that administers local
roads. This form excludes state highways and special purpose roads but
includes lengths of state highway revoked on or prior to 30 June of the
reporting year.
• Road lengths shall be reported in kilometres to one decimal place. Bridge

• Road lengths shall include bridge lengths. Bridge lengths shall be reported in
terms of centreline length of the roadway (eg culvert diameter).
• A timber bridge is defined as a bridge with one or more main structural

elements of timber (decks are not considered to be main structural
elements).
Note: A level of service report is to be provided in the form of a RAMMS report

of condition data.
Form 5.1.3 (SP): These instructions are to be followed when completing form 5.1.3 (SP):
Local roading
(special purpose • One form is required from each approved organisation that administers
roads) special purpose road(s).
• Road lengths shall be reported in kilometres to one decimal place. Bridge

• Road lengths shall include bridge lengths. Bridge lengths shall be reported in
terms of centreline length of the roadway (eg culvert diameter).
A timber bridge is defined as a bridge with one or more main structural

elements of timber (decks are not considered to be main structural elements).
Form completion The local roading and local roading special purpose roads physical statistics
return are to be prepared on the appropriate forms provided on the following
pages.

must annotate the forms to show the physical statistic information. Each sheet
shall have the reporting officer’s name written on it.

Page 5-11
Form 5.1.3 (LR)
Local roading annual statistics

as at 30 June
Approved organisation: LG region:
A Roads Centreline length (km) to one

decimal place
Urban Rural Total

1. Maintained
2. Sealed
3. Unsealed
4. Cycleways
B Bridges No. Centreline

length
(whole m)
4. All
5. Single lane
8. Timber
C Level of service
Email spreadsheet to Land Transport NZ, the RAMMS Manager contains a single command to
generate all reports required by Land Transport NZ. Roughness and smooth travel exposure data is
available using the menu ‘Report > Transfund NZ > All Reports’. Do not reformat the RAMMS output.
Name
Signature
Date
Phone
Email
All road service providers to complete.

Page 5-12
From 5.1.3 (SP)
Special purpose road annual statistics

as at 30 June
Approved organisation: LG region:
A roads Centreline
length (km) to one
decimal place
Total
1. Maintained
2. Sealed
3. Unsealed
4. Cycleways
B Bridges No. Centreline

length
(whole m)
4. All
5. Single lane
8. Timber
Name
Signature
Date
Phone
Email
All road service providers with special purpose roads to complete.

Page 5-13
5.1.4 Annual achievement reports (passenger transport)
Regional
From each regional authority that administers passenger transport operations
authorities
within its region, Land Transport NZ requires a report against the passenger
transport measures set out at the end of this section and also in the current
NLTP agreement.
Note: Definitions for each passenger transport performance measure are

provided with the regional authority NLTP agreement.
Passenger There are separate passenger transport annual statistics return forms for each
transport annual mode type and also total mobility.
statistics returns
The forms are:
• Form 5.1.4 for bus operations (three pages)
• Form 5.1.4 for ferry mobility (two pages)
• Form 5.1.4 for rail operations (two pages)
• Form 5.1.4 for total mobility operations (two pages).
Instructions and Instructions and forms for preparing the passenger transport annual statistics
forms returns will be provided to all regional authorities at the end of the programme
year.

must annotate the forms to show the achievement information. The return shall
have the reporting officer’s name on it and be signed.

Page 5-14
5.1.4 Annual achievement reports (passenger transport), continued
Form 5.1.4 From each approved organisation that administers a bus operation, information
Passenger is required on the following activities for the 12 months to 30 June, which are
transport (bus
described on the following pages:
operations)
• passenger boardings (contracted, commercial and contracted school)
• passenger kilometres (contracted, commercial and contracted school)
• financial information (fares received on contracted general and school

services)
• community/ population (population of the region or target community and

the amount of the target community within 500 m of the bus route)
• service/ operation provided (service type, headway, capacity, access to the

service, access to the vehicle, age of bus fleet, environment and fares)
• passenger survey results (overall service rating, service value for money,
availability, time, frequency, reliability, personal security, vehicle
quality/comfort and reasons for using service).
Form 5.1.4 From each approved organisation that administers a ferry operation information
Passenger is required on the following activities for the 12 months to 30 June, which are
transport (ferry
operations)
• passenger boardings (contracted and commercial)
• passenger kilometres (contracted and commercial)
• financial information (fares received on contracted general services)
• service/ operation provided (service type, access to the service, environment

and fares)
availability, time, frequency, reliability, personal security, vessel quality/
comfort, reasons for using service).

Page 5-15
5.1.4 Annual achievement reports (passenger transport), continued
Form 5.1.4 From each approved organisation that administers a rail operation information is
Passenger required on the following activities for the 12 months to 30 June, which are
transport (rail
operations)
• passenger boardings (contracted)
• passenger kilometres (contracted)
• service/ operation provided (headway, access to the service, environment

and fares)
availability, time, frequency, reliability, personal security, carriage
quality/comfort, reasons for using service).
Form 5.1.4 From each approved organisation that administers a total mobility operation
Passenger information is required on the following activities for the 12 months to 30 June,
transport (total
which are described on the following pages:
mobility)
• passenger boardings (contracted)
• community/ population (number of persons registered in the scheme and

date that registered services was updated)
• service/ operation provided (wheelchair van access, total mobility fares)
availability, reliability, personal security, vehicle accessibility and vehicle
quality/ comfort).

Page 5-16
Form 5.1.4
(bus 1)
Passenger transport annual statistics

Passenger transport annual statistics as at 30 June:
Approved organisation: Name of target community:
PT mode Bus services
Return Target Return Please provide

Year (previous (current (current comments on
year end) year start) year end) major variances
Passenger boarding
Contracted service boardings (including

concessionary fare but excluding school service
passengers)
Commercial service boardings (including

concessionary fare but excluding school service
passengers)
Contracted school service boardings

(including concessionary fare passengers, if any)
Passenger kilometres
Contracted service kilometres traveled

(including concessionary fare but excluding
school service passengers)
Commercial service kilometres traveled

(including concessionary fare but excluding
school service passengers)
Contracted school service kilometres traveled

(including concessionary fare passengers, if any)
Calculation of passenger kilometres: (reference: General circular 04/13) Indicate which

one used
Analysis of ticket sales
(excluding concessionary fares) using the number of tickets purchased for each trip
section and distance (GST inclusive)
Determine (by survey) average passenger journey length on route then

or multiply by the total number of passengers
(excluding concessionary fares)
Total ticket sales revenue divided by total funding

or
(total funding is ticket sales revenue + Land Transport NZ + Regional Council funding).
Financial information (GST exclusive)
Fares received by operator(s) on contracted

services (including concessionary fare but
excluding school service passengers)

school services (including concessionary fare
passengers, if any)
Comments

Page 5-17
Form 5.1.4
(bus 2)

Community/population
Population (of the target community):
Percentage of the target community that is Assessed by area or

%
within 500 m of the bus route(s) population?
Service/operation provided
Service type (Commercial and non-commercial services)
Do you have a policy? Y/N If yes, what is the policy reference?
Has it been implemented? Y/N >Please attach a copy of the policy
Headway Specified headway (minutes)

Capacity Specified capacity (percentage)

Access to the service (wheelchair access)

Access to the vehicle (super-low floor buses)

Age of the bus fleet

Environment (eg emissions, alternative fuels)

Fares
Comments

Page 5-18
Form 5.1.4
(bus 3)

Passenger survey results
Overall service Overall, how do you rate the service?

Dreadful Very poor Poor Good Very good Excellent
% % % % % %
Service value for money Overall, how do you rate the value for money of the service?
% % % % % %
Service availability Is the service available when needed?

% % % % % %
Service time Is the journey time reasonable?

% % % % % %
Service frequency Does the service occur often enough?

% % % % % %
Service reliability Are the arrivals and departures of bus services on time (punctual)?
% % % % % %
Safety and security How do you rate your safety and personal security during the trip?
% % % % % %
Safety and security How do you rate your safety and personal security at the stop(s)?
% % % % % %
Vehicle quality/comfort Overall, how do you rate the vehicle?

% % % % % %
Reasons for using service What is the main reason for using public transport on this trip?
No alternative Value for Quicker I like it To be socially Parking costs
money responsible or availability
% % % % % %
Name:
Signature: Date:

Page 5-19
Form 5.1.4
(ferry 1)

PT mode Ferry services
Passenger boarding
Contracted service boardings

(including concessionary fare passengers)
Commercial service boardings

Passenger kilometres (kms)
Contracted service kilometres traveled

(including concessionary fare kms)
Commercial service kilometres traveled

Indicate which
Calculation of passenger kilometres
one used

Determine (by survey) average passenger journey length on route then

or multiply by the total number of passengers
(excluding concessionary fares)

or
(Total funding is ticket sales revenue + Land Transport NZ + Regional Council funding).

services
Service/ operation provided

Service type (Commercial and non-commercial services)
Access to the service (wheelchair access):

Environment (eg emissions, alternative fuels):

Fares:
Comments

Page 5-20
Form 5.1.4
(ferry 2)

PT mode Ferry services
Overall service: Overall, how do you rate the service?

% % % % % %
% % % % % %

% % % % % %

% % % % % %

% % % % % %
% % % % % %
% % % % % %
% % % % % %
Vessel quality/comfort Overall, how do you rate the vessel?

% % % % % %
No alternative Value for Quicker I like it To be socially Parking costs
money responsible or availability
% % % % % %
Name:
Signature: Date:

Page 5-21
Form 5.1.4
(rail 1)

Pt mode Rail services

Passenger boarding
Contracted service boardings
Passenger kilometres (kms)

Contracted service kilometres travelled
Indicate which
Calculation of passenger kilometres
one used
Survey average passenger journey length on route then multiply by the total
or
number of passengers (excluding concessionary fares)

or
(total funding is ticket sales revenue + Land Transport NZ+ Regional Council funding).

services
Community population
Population (of the target community)
Headway Specified headway (minutes)
Access to the service (wheelchair access)
Environment (eg emissions, alternative fuels)
Fares
Comments

Page 5-22
Form 5.1.4
(rail 2)

PT mode Rail services

% % % % % %
% % % % % %

% % % % % %

% % % % % %

% % % % % %
% % % % % %
% % % % % %
% % % % % %
Carriage quality/comfort Overall, how do you rate the carriage?

% % % % % %
No alternative Value for Quicker I like it To be socially Parking costs or
money responsible availability
% % % % % %
Name:
Signature: Date:

Page 5-23
Form 5.1.4
(mobility 1)

PT mode Total mobility

Passenger boarding
Total mobilty boardings

(total number of subsidised mobility trips)
Wheelchair hoists (the number of financially

assisted wheelchair hoists in operation)
FARES (fares received by operator/s for Total

mobility trips)
Population
Total number of persons registered in the scheme
How is the register updated AND how often does

this occur?
Access to the service (wheelchair vans)
Has it been implemented? Y/N Policy
Total mobility fares
Has it been implemented? Y/N Policy
Comments

Page 5-24
Form 5.1.4
(mobility 2)

PT mode Total mobility

% % % % % %
% % % % % %

% % % % % %
% % % % % %
% % % % % %
Vehicle accessibility Is the right equipment available to get in/out of the vehicle? (eg hand rails, hoists)
Vehicle quality/comfort Overall, how do you rate the vehicle?

% % % % % %
Name:
Signature: Date:

Page 5-25
5.2 Annual property purchase reports
Introduction Each year, approved organisations that received financial assistance in the
property activity class shall provide Land Transport NZ with a property purchase
report.
Note: Transit New Zealand shall submit a national property report directly to
Land Transport NZ’s programme manager.
When the report Approved organisations shall ensure that Land Transport NZ receives this report
must be no later than 31 August.
received
Report elements The return should specifically identify:
• income from sales (of land, building, and chattels)
• the value of unsold properties transferred to the approved organisation

during the year
• income from rents and leases
• income from interest
• outgoings on maintenance and rates
• purchases made during the year for projects approved by Land Transport NZ
• the net value of financially assisted land asset (not transferred to road
reserve) as at 30 June.
Note: While this information is required to be aggregated for all properties,

detailed records as outlined on the next page are also required to be kept for
each individual property for audit purposes.

Page 5-26
5.2 Annual property purchase reports, continued
Detailed records Records are to be maintained by approved organisations of all land acquired for
to be kept land transport purposes for which financial assistance has been received. For
each individual property, it is necessary to maintain the following information:
• address
• legal description
• date of purchase
• date utilised for land transport purposes
• date of sale of any surplus land
• valuation at purchase date (land plus improvements to be shown separately)
• valuation at time of utilisation for land transport purposes (land plus

improvements to be shown separately)
• valuation of any unsold surplus land 12 months after construction is

completed
• financial assistance rate(s)
• financial assistance claimed to date
• payments made to Land Transport NZ to date
• income from rents and leases
• expenditure relating to maintenance and rates
• a statement as to how Land Transport NZ’s financial interest has been

registered on the property title.
Note: These records will be subject to periodic audit by Land Transport NZ.
Valuation reports should be retained to support any valuation figures.
Form 5.2 The report is to be prepared on form 5.2, provided on the next page.

Page 5-27
Form 5.2
Annual property purchase report
20 / NLTP
Organisation name:
Actual amount for year ($000s)

Forward year
estimate
Activity
Financial Land (total amount
Total assistance Transport NZ in $000s)
rate (%) share
Income from sales (of

1. land, buildings, and
chattels)
Value of unsold
properties transferred
2. to the approved
organisation during the
year
Income from rents and

3.
leases
4. Income from interest
Outgoings on
5.
maintenance and rates
Purchases during the

year for projects
6.
approved by Land
Transport NZ
Net value of financially

assisted land asset (not
7.
transferred to road
reserve) as at 30 June
Submitted by: Date:

Page 6-1
Chapter 6 Procurement procedures
Overview
Introduction Competitive pricing procedures (CPPs) approved by Land Transport NZ prior to

the Land Transport Management Act (LTMA) coming into force have been saved
by section 96 as procurement procedures in terms of section 25. All references
to procurement procedures, therefore, also relate to CPPs included in Land
Transport NZ’s Manual of competitive pricing procedure.
Section 24(6)(b) of the LTMA is explicit in stating that all payments from a land
transport disbursement account must be made in accordance with a
procurement procedure. The LTMA makes provision for exempting some
payments from procurement procedures (section 26).
In accordance with section 25 of the LTMA, Land Transport NZ has approved

procurement procedures for the use of approved organisations seeking funding
from Land Transport NZ. These procurement procedures are provided in
volumes one and two of Land Transport NZ’s Manual of competitive pricing
procedures or have been approved for use by particular organisations. The
manual includes a procedure for use in sole supplier situations.
In this chapter This chapter contains nine pages and covers the following sections:
Section Page
6.1 Payments exempt from procurement procedures 6-2
6.2 Business units 6-3
6.3 Minor and ancillary works 6-4
6.4 In-house professional services 6-8

Page 6-2
6.1 Payments exempt from procurement procedures
Introduction Section 25 of the LTMA (procurement procedures) does not apply in relation to
[LTMA 26] any payment:
• approved by Land Transport NZ on the ground that the costs of the

procurement process would be disproportionate to the value of the proposed
activity or activity class, or
• made in respect of any approved administration activity that is approved by

Land Transport NZ for the purpose of this section, or
• made in respect of in-house professional services that are:
− approved by Land Transport NZ, and
− undertaken by an approved organisation using the organisation’s own

staff and assets, or
• made under the land transport disbursement account of an approved

organisation if the payment is made to the land transport disbursement
account of another approved organisation to enable that other organisation
to exercise delegated functions and powers under the LTMA of that first-
mentioned approved organisation, or
• made in respect of any registered service of any public transport operator in

relation to any six-month period that follows:
− the withdrawal or proposed withdrawal of that operator from the

provision of the service, or
− the withdrawal of any other operator from the provision of the same or a
similar service, or
• made in respect of any expenditure that is necessary in the urgent interests

of public safety, or
• made in respect of any expenditure that is necessary for the immediate or

temporary repair of damage caused by a sudden and unexpected event.

Page 6-3
6.2 Business units
Introduction The term business unit has been adopted to refer to a management unit within
an approved organisation, which marshals physical and human resources to
provide services and undertake works.

Page 6-4
6.3 Minor and ancillary works
Determination of The following categories of work have been determined by Land Transport NZ to
minor and be minor and ancillary works:
ancillary works
• pavement maintenance
• amenity/safety maintenance
• bridge maintenance
• street cleaning
• traffic services
• carriageway lighting
• cycleway maintenance
• minor safety projects (to a maximum $150,000).
Ministerial Transit NZ, in consultation with Land Transport NZ and the Minister, made a
determination determination under Authority of sections 32(b) and 32(c)(ii) of the Transit New
Zealand Act 1989.
Section 110 of the Land Transport Management Act (LTMA) saves the
determination, for the purposes of section 25(5) of the LTMA. The above-
mentioned sections apply to the formation and operation of business units
which compete for minor and ancillary works subject to procurement
procedures, to which payments may be made under section 25(5) of the LTMA.
The requirements of the determination are provided in this section.
Title and The determination may be cited as The Ministerial Determination for the
commencement Formation and Operation of Business Units competing for Minor and Ancillary
of the
Works and Reporting Requirements – 1996.
determination
The determination became effective on 1 July 1996.
Formation of the The business unit must be formed by resolution of the council/board of the
business unit approved organisation.

Page 6-5
6.3 Minor and ancillary works, continued
Operation of the The business unit must:

business unit
• adopt and operate in accordance with a written annual business plan which
must contain, at a minimum, the following:
− its purpose or mission
− the goods and services it is to provide
− its performance targets
− its management structure
− the content and frequency of its reporting requirements to the parent

approved organisation
− its operating budget
− its accounting procedures.

Page 6-6
Operation of the The business unit must:

business unit,
continued • be a separately identified unit within the overall activities of the approved
organisation. To this end:
− the cost of all goods and services allocated to, purchased by, or employed
in the business unit from its parent approved organisation or external
suppliers must be fully charged to the business unit. This must be shown
in a written agreement quantifying the goods and services and the prices
− no member of the staff of the parent approved organisation involved in

infrastructural asset management may work for, or be involved in, the
business unit or its activities; provided that this shall not affect the
overall supervisory responsibilities of the chief executive officer of the
parent approved organisation
− the accounting records for the business unit must enable the surplus or
deficit generated by the activities of the business unit to be measured
and reported to the parent approved organisation in accordance with
generally accepted accounting practice
− the fair value of the parent approved organisation’s investment in the

business unit (notional debt-to-equity) must have been determined and
supported by independent valuation and must be updated annually
− the council/board of the parent approved organisation must determine

annually, by resolution, the rate of return it expects from its investment
(notional debt-to-equity) in the business unit
− where the business unit supplies the parent approved organisation with
goods or services for which payment is to be made under section 24 of
the LTMA, all the terms of conditions of such supply must be recorded in
writing. Insofar as is practicable, those terms and conditions must be:
o the same as the parent approved organisation’s standard

documentation for contracts with external suppliers of similar goods or
services, and
o conform to the request for tender.

Page 6-7
Reporting There are no legislative reporting requirements with respect to in-house

requirements minor and ancillary works business units. However, approved organisations
claiming financial assistance for works carried out by their business units
must make the following information available to Land Transport NZ auditors
on request:
• total revenues
• operating costs (including all overhead costs and depreciation) of the

business unit to which those payments are to be made
• net surplus or deficit
• the basis for reallocations of a net surplus or the funding of a net deficit.

Page 6-8
6.4 In-house professional services
Introduction The term in-house professional services refers to those services which are:
[LTMA s26]
• carried out by an approved organisation using its own staff and assets, and
• determined by Land Transport NZ to be in-house professional services.
Note: In-house professional services do not include minor and ancillary works.
In-house
Professional services provided by in-house resources are not constrained to
professional
services those associated with minor and ancillary works. They may include all
professional services required to execute a project, which is subject to
procurement procedures. In addition, they may supplement or be supplemented
by external professional services provided the external resources are obtained
through procurement procedures.
Land Transport Local authority in-house professional services business units that were
NZ approval of operating when the Land Transport Management Act (LTMA) was enacted (12
in-house
November 2003) continue to be ‘approved’ by Land Transport NZ and the in-
professional
services house professional services they perform are eligible for Land Transport NZ
business units financial assistance.
Any approved organisation that did not operate an in-house professional

services business unit on 12 November 2003, but now wishes to, must seek
approval from Land Transport NZ.
Output pricing to Performance agreements, based on maximizing the use of pricing on an “output
be used basis”, shall be in place for all in-house professional services.
While the charging of an hourly or daily fee is an acceptable form of pricing for
types of work which are not readily quantifiable (eg investigation and schematic
proposals), every effort should be made, where possible, to negotiate fixed fee
of lump-sum arrangements. This should be achievable for the design, tender
documentation and supervision phase of most projects.

Page 6-9
6.4 In-house professional services, continued
Reporting There are no legislative reporting requirements with respect to in-house

requirements professional services business units. However, approved organisations claiming
financial assistance for services provided by their business units must make the
following information available to Land Transport NZ auditors on request:
• total revenues
• operating costs (including all overhead costs and depreciation) of the

business unit to which those payments are to be made
• net surplus or deficit
• the basis for reallocations of a net surplus or the funding of a net deficit.
Note: Land Transport NZ’s expectations are that the in-house professional
services business unit should attempt to reach break-even point, or a profit of
not more than 10 percent of the total operating costs, in each financial year.

Page 7-1
Chapter 7 Funding policy for road controlling

authorities
Overview
Introduction This chapter outlines Land Transport NZ’s financial assistance policy and how it
applies to road controlling authorities.
Section Page
7.1 Policy overview 7-2
7.2 Financial assistance policy for local roads 7-7
7.3 Emergency work policy 7-21
7.5 Community Road Safety Programme funding policy 7-82

Page 7-2
7.1 Policy overview
Overview
Introduction In order to manage payments from the national land transport account, Land
Transport NZ has defined three types of roads. These are:
• state highways
• local roads
• special purpose roads.
Topic Page
7.1.1 State highways 7-3
7.1.2 Local roads 7-4
7.1.3 Special purpose roads 7-6

Page 7-3
7.1.1 State highways
Introduction State highways are those roads declared as such under:
• section 11 of the National Roads Act 1953, or
• the Transit New Zealand Act 1989.
Financial Qualifying work relating to state highways receives financial assistance from
assistance Land Transport NZ at a rate of 100 percent.

Page 7-4
7.1.2 Local roads
Introduction Local roads are any roads, other than state highways, in the district of a
territorial authority.
Financial Qualifying work relating to local roads, other than special purpose roads,
assistance receives financial assistance from Land Transport NZ at:
• a base rate of financial assistance if the work is funded from activity

class 1, or
• a construction rate of base rate plus 10 percent if the work is funded from
activity class 3.
Note: The following conditions apply:
• The base rate varies from one territorial authority to another.
• Minor safety projects are funded at the construction rate.
• The minimum base rate is 43 percent.
• 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.
• Administration and project control is funded in activity class 10 at a rate of

2.25 percent of the total allocation of activity classes 1, 3, 7 and 8.
Interim As an interim measure for 2005/06, the following financial assistance rates also
measures for
2005/06 apply:
Then the FAR is

If the local road activity has…
the…
Midpoint between
Local road transport studies (including strategy studies,
construction FAR
crash reduction studies, multi-modal package studies,
and 100 percent
transportation studies, rail or sea freight evaluations, and
(rounded up to
walking and cycling strategies) needed to develop land
the nearest whole
transport programmes.
percent)
Professional services related to planning, investigation and

design of capital projects identified as regional
priorities and agreed by Land Transport NZ

Page 7-5
7.1.2 Local roads, continued
Special financial Local road construction projects that meet the following criteria may, at Land
assistance for Transport NZ’s discretion, be partly funded as a state highway project in activity
local road
class 4 – improvement and replacement of state highways.
construction
that benefits
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 construction. Maintenance arrangements may differ on a case-by-case
basis.

Page 7-6
7.1.3 Special purpose roads
Introduction 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 Land Transport Management Act (LTMA) the public body
having control of the road shall be deemed to be the relevant approved
organisation.
Financial Qualifying work relating to special purpose roads receives financial assistance
assistance from Land Transport NZ at a rate of:
• 100 percent if the work is funded from activity class 1
• 75 percent if the work is funded from activity class 3
• 100 percent if the work is funded as part of minor safety projects.
Note: The financial assistance rate for the investigation and design of capital
projects on special purpose roads will be the same as for local roads (see
section 7.1.2).

Page 7-7
7.2 Financial assistance policy for local roads
Overview
Introduction Land Transport NZ’s financial assistance policy for local roads sets a base rate
of financial assistance which considers:
• the size of the territorial authority’s land transport programme, and
• the financial resources available to the territorial authority.
Topic Page
7.2.1 Policy overview 7-8
7.2.2 Uneconomic roading facilities 7-10
7.2.3 Establishment of base rate 7-11
7.2.4 Claims 7-15
7.2.5 Overclaims 7-20

Page 7-8
7.2.1 Policy overview
Introduction Land Transport NZ accepts that a basic maintenance programme is required to

retain the operational capability of the existing roading system.
The cost will be directly related to such factors as:
• the length of the roading network
• the age and condition of the roading network
• traffic volumes
• soil and climatic conditions
• the availability and cost of roading materials.
These factors will affect roading costs to different degrees in different parts of
the country.
Qualifying for Unless Land Transport NZ specifically requires otherwise, payment of financial
financial assistance is dependent on the officer certifying the claim form accepting
assistance
responsibility for appropriate design, construction procedure, and quality of
materials.
The endorsement of the claim form will be taken to certify that these matters
were undertaken to a standard fit for their intended purpose.
Note: Financial assistance is also dependent upon the council’s adoption of

agreed standards as set forth in Land Transport NZ’s Standards and guidelines
manual.
Investigation Unless Land Transport NZ specifically approves otherwise, payment of financial

and design costs assistance for project investigation and design costs is paid at the time of
construction.

Page 7-9
7.2.1 Policy overview, continued
Quality A quality assurance programme shall be maintained for qualifying work to

assurance ensure that all materials and construction techniques are in accordance with
programme
those specified.
Net equalised Land Transport NZ has adopted the net equalised rateable land value as an
land value indication of the financial resources available to a territorial authority. This
decision was made after extensive research and discussion and is considered to
reflect most fairly 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 In making decisions on financial assistance rates, Land Transport NZ also takes
information into account such other information as it has available which has a bearing on
considered
the level of assistance needed, noting that:
• all territorial authorities are considered on the same basis, and
• 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.

Page 7-10
7.2.2 Uneconomic roading facilities
Introduction Land Transport NZ accepts the concept of continuing weight restrictions on

roading facilities where that is shown to be the economic option. Therefore,
where the cost of renewal, reinstatement, or structural upgrading of any
roading facility is classed as uneconomic, such works will normally not be
eligible for financial assistance. Land Transport NZ will, however, continue to
provide financial assistance for the cost-effective maintenance of the facility.
Definition An uneconomic roading facility is defined whereby the ratio of the total cost of
the work to be undertaken per AADT is greater than or equal to $5,000 per
vehicle.
Application for On application, Land Transport NZ will consider the eligibility of

financial non-maintenance activities on uneconomic roading facilities for financial
assistance
assistance on a case-by-case basis. In this event, a report to Land Transport NZ
is required, providing:
• a map showing the facility and the properties served
• the estimated or measured annual average daily traffic volume using the
facility
• the existing capital value of the properties and an estimate of what it would
be without the facility (if there are five or less properties served)
• a statement on the economics of providing a facility with a loading capacity

of class I compared with a loading capacity of less than class I, either by
maintenance or repair of the existing facility, or by construction of a low-cost
replacement facility in terms of Land Transport NZ’s Project evaluation
manual volume 1.

Page 7-11
7.2.3 Establishment of base rates
Introduction A base rate of financial assistance is set for activity class 1 items.
Base rate When determining base rates, Land Transport NZ uses, for its indicator of
determination financial assistance, the relationship between programme size and net equalised
land value.
The programme taken into account is the initial block allocation. The
relationship used is shown on the graph provided on the next page.
Base rate Land Transport NZ reviews all base rates of financial assistance in November
reviews 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.

Page 7-12
7.2.3 Establishment of base rates, continued
Base rate formula

Indicated Financial Assistance Base Rate (%)
P/LV
P/LV
Formula: IBR = k1 + k2 log (P/LV)
Where: IBR = indicated financial assistance base rate for the following year (%)
P = current year’s initial block allocation ($ thousands)
LV = five-yearly averaged net equalised rateable land value ($ millions)
k1
constants which are established to give a national indicated FAR of
} =
50%
k2

Page 7-13
Other factors Land Transport NZ stresses that the formula provides only an indication of the
considered in level of assistance. To this is added Land Transport NZ’s judgement of the
base rate
circumstances of each authority.
determination
The factors to be 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 allocation from one year to the next
• the change in land value
• the resultant change in local share.
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 Where a significant change is indicated, either up or down, phasing of the effects
changes is considered.
An exception is where authorities with normally small programmes have

introduced work into their programmes that causes a large but temporary change
in the appropriate level of assistance.

Page 7-14
Summary of In summary, the policy is applied as follows:

policy
Where: Then…
• no specific margin is
recommended
• the base rate indicator for the

following year is…
greater than ±2% from the current a move is made towards the indicated
year’s base rate 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 no change is made unless the same
current year’s base rate 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 land value is greater than three times the
national average.

Page 7-15
7.2.4 Claims
Submitting Progress claims may be submitted monthly for all qualifying expenditure. An
progress claims approved organisation need not have made an actual payment at the time of
claiming assistance. These claims shall be based on the estimated value of
works in place. The value of work must be certified by the approved
organisation’s Chief Executive or approved delegate.
Note: Claim items are to be listed in accordance with the work categories
identified in the approved programme. Calculations are to the nearest dollar.
Payments Land Transport NZ requests monthly claims be submitted to Land Transport NZ

regional offices by the 7th working day of the following month. As a minimum,
claims will be required to the end of September, December and each month
following, through to the final claim. This may be varied by agreement with
Land Transport NZ’s partnership manager for approved organisations with small
programmes.
Land Transport NZ will pay claims within 21 days of their receipt. Approved
organisations being paid by electronic means will be advised of the payment
date and if the value of the payment varies from the claim.
Internet claims Approved organisations may claim for payment via the internet. Land Transport
NZ will issue a secure password to an authorised representative of each
approved organisation. That representative must be given the appropriate
delegation to certify the claim.
Note: The certification comprises the same information as contained on the

form on the next page used by those approved organisations submitting paper-
based claims.
Form 7.2 The form provided on the next page (Form 7.2) serves as a certification and
summary of claims for financial assistance.

Page 7-16
Form 7.2
Tax invoice and claim for payment

To Land Transport NZ Office Date
Name and address only
(USE BLOCK LETTERS)
Supplier’s GST Registration No
Claim No Period of claim 1 / 7 / __ to __ / __ / __
Summary of claims Total

Activity class 1, claim to date $
Total claim to date (excluding GST) $
Less previous payments ( 1 to ____ ) $
Amount now payable (excluding GST) $
GST amount $
Total amount now payable (including GST) $
Approved organisation certificate
Note: The attention of the certifier is drawn to the offence provisions of section 109 of the Public
Finance Act.
I CERTIFY –
(i) that the expenditure included in the claim has been incurred in accordance with the requirements of the
Land Transport Management Act
(ii) that all expenditure included in this claim has been recorded in the land transport disbursement account
in the form and detail prescribed by the Land Transport NZ New Zealand, and the documents supporting
the expenditure are available for examination, if necessary
(iii) that the expenditure included in this claim is for an approved output or capital project in terms of the
Land Transport Management Act, is eligible for funding by Land Transport NZ New Zealand, has been
incurred on the work claimed, and is reasonable for the type of work done
(iv) that the work has been completed to the value for which payment has been claimed
(v) that the work is in accordance with Land Transport NZ’s standards and guidelines
(vi) that to the best of my knowledge and belief, the foregoing claim is true and correct in all respects.
Acting under authority from:

(signature of)
Chief Executive Officer/Principal Administration Officer

Page 7-17
7.2.4 Claims, continued
Final claims Final claims are those that claim for work done to 30 June within the
approved allocation. The final claim must be based on actual expenditure and
be supported by certified invoices. Claim items are to be listed in accordance
with the work categories in the approved programme.
Supplemental Supplemental claims are those that claim for work done to 30 June in excess
claims of the approved allocation. The following applies:
• Overexpenditure on improvement and replacement projects that have an

allocation in the next year may be claimed as advanced work.
• Overexpenditure on improvement and replacement projects in excess of the

approved total cost will be considered on a case-by-case basis. Supporting
information is required as if it were a request for a price level increase at a
review.
Deadline for Final and supplemental claims are to be submitted separately and received by
final and the regional office no later than 31 July. Supplemental requests are to be
supplemental
submitted as a review request using form 4.1. Once approved, a supplemental
claim
submission electronic claim should then be submitted.
Approved works Financial assistance is payable only on expenditure on projects included in the
approved programme.
Note: For programme items (other than block allocations) that include fees
and/or property with the physical works component, financial assistance for
fees or property shall not be claimed until the physical works tender has been
contractually committed.

Page 7-18
Commitments Where a project has been approved by Land Transport NZ for inclusion in the
following year’s National Land Transport Programme (NLTP), but the project has
commenced in the preceding year, the following process occurs:
Stage Description
1 Claims for advanced works are to be submitted by 31 July as part of

the supplemental claim.
2 Such claims will be paid against the preceding year if funds are
available for reallocation within the NLTP. The following year’s
allocation will be reduced accordingly.
Projects Apart from the above, and with exception of investigation/ design fees and land
undertaken in purchase associated with approved projects, expenditure on works in a previous
previous years
financial year does not qualify for financial assistance in the subsequent
programme year.

Page 7-19
Claims subject Claims for financial assistance are not checked in detail prior to payment. Land
to audit Transport NZ has arranged for periodic audits of selected claims. Land
Transport NZ regional staff will regularly monitor the status of claims submitted
and may ask to check the balance in the land transport disbursement account
to ensure that large credit balances are not being held.
Note: Detailed examination automatically follows in any case reported to Land

Transport NZ by the Office of the Controller and Auditor-General.
Cost recording All expenditure from the land transport disbursement account shall be recorded
in that account in a form that is compatible with the approved programme.
Record keeping 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 Office of the Controller and Auditor-General and Land
Transport NZ’s performance monitoring team.
The following specific records are to be retained by organisations for a period of

at least seven years after the end of the financial year to which they relate:
• books of account (whether contained in a manual, mechanical, or electronic

format) that record receipts and payments or income and expenditure
• vouchers, bank statements, invoices, receipts, and such other documents as

may be necessary to verify the entries in the books of account
• accounts (whether contained in a manual, mechanical, or electronic format)
• procurement documentation which clearly shows the procedure used to

contract every supplier of works or services that are eligible for financial
assistance from Land Transport NZ.
Note: Land Transport NZ may, at its discretion and on request by any

approved organisation, dispense with the need to retain any of the records
specified above.

Page 7-20
7.2.5 Overclaims
Introduction Overclaims become a debt due to the Crown immediately upon establishment of
the debt.
Refund Where Land Transport NZ agrees to a refund being made by installments,

interest is payable.
False certificates Attention is drawn to the relevant section of the Public Finance Act, which
provides for the imposition of penalties on persons who give false certificates for
the purpose of procuring for any approved organisation the improper payment of
any public money.
Genuine errors Where a genuine error has occurred that results in an overclaim by a local
authority, the amount of overclaim may be offset against subsequent claims.
Land Transport NZ will consider each case on its merits.

Page 7-21
7.3 Emergency work policy
Overview
Introduction This section outlines:
• what qualifies for funding as emergency work, and
• the process to follow when applying for financial assistance.
Topic Page
7.3.1 Policy overview 7-22
7.3.2 Application for financial assistance 7-24
7.3.3 Financial assistance rate for territorial authorities 7-28

Page 7-22
7.3.1 Policy overview
Introduction 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 The immediate response phase covers the work necessary to reopen a road,
response 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 The permanent reinstatement phase involves work that is required to restore
reinstatement 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.
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 which is on site carrying out the
immediate response work.

Page 7-23
7.3.1 Policy overview, continued
Damage to The cost of restoring any damage to work under construction or still within a
recently maintenance period is to be a charge to that construction work and not to the
constructed
emergency work category.
work
Improvements Any improvements undertaken in conjunction with 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.

Page 7-24
7.3.2 Application for financial assistance
Introduction The process of obtaining financial assistance for emergency work is set out
below.
Notification Within one week of the events causing the damage, the asset manager should
notify the regional liaison engineer of such damage and request that an
inspection be made.
Inspection The regional liaison engineer 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 liaison engineer may use discretion in deciding whether or
not an inspection is warranted.
Application Applications for emergency work funding are now to be entered via LTP online
using the emergency works project type.
Information requirements are stated both below and of the on the following
pages. This form is provided for both local roads (form 7.3 LR) and state
highways (form 7.3 SH). All of the information entered on this form can now be
entered online.
All applications for emergency work funding must also 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.
This information is required within the LTP online emergency works project
type.
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.

Page 7-25
Form 7.3 LR
Emergency work on local roads application for financial

assistance
1 Name of road controlling authority:
2 Date of event causing damage:
3 Details of damage and location (continue on separate sheet):
3 Estimated total cost of restoration (this event):

5 Programming of expenditure (Land Transport NZ + TA):
Current year Year 2 Year 3

Total
/ / /
Previously approved
This application
New total
6 Total estimated general rates* for current year (exclusive of GST): $
7 Certified correct (engineer’s signature): Date:
For Land Transport NZ use only
8 Damage inspected and recommended for financial assistance purposes: Date:
Signature of partnership manager:
9 Current base rates: %
10 Emergency work FA rates:

/ / /
Previously approved
Revised rate
11 Emergency work allocations (Land Transport NZ):

Total
/ / /
Previously approved
This application
New approved total
12 New financial assistance rates and allocations approved:
Signature for Land Transport NZ Date:
* see note in section 7.3.2 of this manual

Page 7-26
Form 7.3 SH
Emergency work on state highways application for financial

assistance
1 Name of region and contract area:
Project no. Application no.
2 Date of event causing damage:
3 Details of damage and location (continue on separate sheet):
4 Estimated total cost of restoration (this event): $

(detailed estimate attached)
5 Programming of expenditure:

Total
/ / /
Previously approved
This application
New total
6 Certified correct:
7 Signature: Date:
for Regional State Highways Manager
For Land Transport NZ use only
8 Damage inspected and recommended for funding:
Signature: Date:
Partnership Manager
9 Allocation approved:
Signature: Date:
For Land Transport NZ

Page 7-27
7.3.2 Application for financial assistance, continued
Approval of The regional liaison engineer will notify the asset manager of an approved
allocation allocation of funds.
Funds If it is necessary to programme funds into the following year, the road
programmed controlling authority is to advise the partnership manager of the total cash flow
into the
when making the original application. A review of the following year’s allocation
following year
must be made prior to the closing of the current year’s accounts.
Limitation to Financial assistance provided by an emergency work allocation must be used

allocation of within two years from the date of the event unless approved otherwise.
funds
Note: Allocations for bridge renewals must be used within three years.
Unexpended It is essential to the efficient management of the national land transport

funds 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.
Advancement of Land Transport NZ has adopted the following policy for payment of advances for
funds to emergency work to territorial authorities:
territorial
authorities • No advance is payable if the estimated total emergency work expenditure for
a three-month period is less than 10 percent of the territorial authority’s
total general rate.
• If expenditure on emergency work 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 work expenditure (rounded to
the nearest $10,000).

Page 7-28
7.3.3 Financial assistance rates for territorial authorities
Financial Land Transport NZ will provide financial assistance on the total cost of the
assistance rate emergency work within a financial year at the rate obtained from the graph
on the next page.
Note: Requests falling within the shaded area of the graph may be approved
at Land Transport NZ’s regional level up to $500,000 Land Transport NZ
share.
Adjustment for Land Transport NZ may adjust the financial assistance rate for a financial year
underexpenditure 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.

Page 7-29
7.3.3 Financial assistance rates for territorial authorities, continued
Emergency work 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)

Page 7-30
7.4 Specific determinations
Overview
Introduction This section deals with specific policy determinations relating to work that
qualifies for financial assistance.
Topic Page
7.4.1 Area-wide traffic control systems 7-32
7.4.2 Betterment 7-34
7.4.3 Boundary roads and bridges 7-36
7.4.4 Bridges and other structures 7-37
7.4.5 Carriageways 7-39
7.4.6 Cattlestops 7-40
7.4.7 Closed circuit television 7-41
7.4.8 Cycling facilities 7-43
7.4.9 Maintenance management systems 7-44
7.4.10 Off-street parking areas 7-45
7.4.11 Pedestrian facilities 7-46
7.4.12 Protection planting 7-47
7.4.13 Quality assurance requirements 7-48

Page 7-31
7.4 Specific determinations, continued

continued
Topic Page
7.4.14 Rail crossings 7-49
7.4.15 Revoked or declared state highways 7-52
7.4.16 Road safety audits 7-53
7.4.17 Service lanes 7-55
7.4.18 Services 7-56
7.4.19 State highway/local road connections 7-58
7.4.20 Stock crossings 7-62
7.4.21 Stock truck effluent disposal sites 7-65
7.4.22 Stopping roads and bridges 7-67
7.4.23 Stormwater drainage 7-68
7.4.24 Subdivisional roads 7-70
7.4.25 Traffic signals 7-71
7.4.26 Traffic signs and pavement markings 7-72
7.4.27 Transportation studies 7-74
Transport demand management, rail and sea

7.4.28 7-76
freight
7.4.29 Vegetation control 7-79
7.4.30 Walking and cycling strategies 7-80
7.4.31 Weighing facilities 7-81

Page 7-32
7.4.1 Area-wide traffic control systems
Introduction Land Transport NZ promotes and supports the installation and use of area-wide
traffic control systems. Most systems include both state highway and local road
traffic signal installation.
Note: SCATS has been the only system supported to date, however, this policy
does not prohibit the use of other area-wide traffic signal control schemes.
Maintenance of Financial assistance for costs associated with the maintenance of the software
software necessary for the operation of area-wide traffic control systems and the
installation and maintenance of area-wide traffic control systems will be at the
road controlling authority’s base rate and subject to normal programming
procedures.

Page 7-33
7.4.1 Area-wide traffic control systems, continued
New systems Before a new system is considered for installation, the territorial authority must
submit a traffic management plan to the partnership manager for approval.
Traffic This plan must show:

management
plan • the scope of the traffic management scheme being implemented under
requirements SCATS, including staging
• the existing traffic volumes in the system
• full geometric details of existing roadway and intersection layouts and any
proposed changes
• an indication of expected benefits, and
• that suitable operation and maintenance arrangements have been

established and agreed by any other participating parties.
Financial Installation of area-wide traffic control systems will be considered for funding
assistance under the road reconstruction work category subject to normal programming
requirements.
Maintenance of the components of area-wide traffic control systems is eligible

for financial assistance under the traffic services work category.
State highway Transit New Zealand’s regional state highway manager must give prior approval
traffic signals to connect traffic signals on state highways to the area-wide traffic control
system.

Page 7-34
7.4.2 Betterment
Introduction Section 326 of the Local Government Act requires territorial authorities, under
certain circumstances, to collect betterment from landowners receiving value
from improvement works.
Situations Betterment arises in the following situations:

arising
Where… Then…
all of the following elements are present the owner of the land shall pay
together: the betterment to the council.
• the council has either formed a new road

or widened an existing road (or part of
an existing road)
• for this purpose, the council has taken,

purchased, or otherwise acquired a
parcel of land from the landowner, and
the remaining part of the land will have
access or frontage to that road
• by reason of the road work, the value of

the remaining part of the land retained
by the landowner is increased by an
amount that exceeds the amount of
compensation paid for the land taken by
the council (this is the value of the
betterment)
• an existing road is widened if required by the council, every

landowner having land with a
• for this purpose, the council has taken,
frontage to the other side of the
purchased, or otherwise acquired land
road shall pay to the council the
from only one side of the road
increased value given (or likely
to be given) to the land (this is
the value of the betterment.
• only part of an existing road is widened only landowners having land with
a frontage directly opposite the
widening work may be required
by council to pay betterment

Page 7-35
7.4.2 Betterment, continued
Proceeds from When a territorial authority recovers betterment for a financially assisted
betterment roading work, the proceeds shall be apportioned between Land Transport NZ
and that authority at the rate of financial assistance applying to the work in
question.
The proceeds will be applied as a credit against the cost of the road construction
work.
Legal and Legal and valuation costs incurred in establishing the financial value of
valuation costs betterment are not eligible for financial assistance.
Note Betterment would not apply in a situation where, as a consequence of land

being taken/purchased for road formation or widening, the value of any
remnant of land retained by a landowner was either reduced or did not increase
on account of the road work by an amount exceeding the compensation paid to
that person for the land taken.

Page 7-36
7.4.3 Boundary roads and bridges
Introduction When programming work on territorial authority boundaries for which the costs
are to be shared between two or more territorial authorities, each contributing
body is to programme the full amount of their share of the total cost of the
project in their respective programme.

Page 7-37
7.4.4 Bridges and other structures
Construction The construction and maintenance of:

and
maintenance • bridges
• culverts
• tunnels
• vehicular ferries
• fords
• other structures
forming or intended to form part of a road, are eligible for funding from the
National Land Transport Account providing the criteria identified in this topic are
met.
New or New or replacement bridges involving Land Transport NZ funding are to conform
replacement to the design and loading requirements of Transit New Zealand’s Bridge manual
bridges
and must be designed and supervised by a chartered professional engineer. Land
Transport NZ may approve a specific departure from these design standards in
terms of its policy on uneconomic roading facilities.
At a road controlling authority’s discretion, single lane bridges on low traffic

volume roads in remote areas may be designed for a live load equivalent to class I
without overload provision.

Page 7-38
7.4.4 Bridges and other structures, continued
Sealing of The sealing of bridge approaches for bridge renewals on unsealed roads is eligible
bridge for financial assistance as part of the approach costs, provided that:
approaches
• approach sealing is limited to a maximum distance of 50 metres from each
abutment, and
• the seal continues over the whole structure (to ensure consistency of skid
resistance).
Note: In locations where resealing costs are high, some alternative to sealing
should be considered. The use of pavement stabilisers may be used as an
economic alternative to resealing and included in the cost of the work.
Retaining The cost of maintaining existing retaining structures as is necessary for the
structures operation, protection, or support of a road is to be programmed under the bridge
maintenance category.
The cost of constructing such structures is eligible for financial assistance

provided the work is economically justified in terms of Land Transport NZ’s
Project evaluation manual volume 1.

Page 7-39
7.4.5 Carriageways
Introduction The construction and maintenance of carriageways, including the acquisition of

land and its initial fencing, qualify for financial assistance provided the criteria
listed below are met or specific Land Transport NZ approval is otherwise
obtained.
Construction Geometric and pavement standards shall be constructed in accordance with Land
Transport NZ’s Standards and guidelines manual.
Rule: Any requests for departure from this policy shall be directed in writing to
the partnership manager. It is Land Transport NZ’s policy that financial
assistance will be provided only to that portion of the carriageway that complies
with the geometric standards.
Maintenance Maintenance of existing overwidth carriageways will be eligible for financial

assistance where this has been demonstrated to be the most cost-effective
option.

Page 7-40
7.4.6 Cattlestops
Construction The initial cost of constructing a cattlestop where none previously existed is not
eligible for financial assistance. New cattlestops are to conform to the same
design requirements for traffic loads as rural bridges.
Maintenance The cost of maintaining a cattlestop constructed across a road, however, is

eligible for financial assistance.

Page 7-41
7.4.7 Closed circuit television
Introduction Land Transport NZ supports the supply and installation of closed circuit
television (CCTV) where a rapid response to incidents by dispatching emergency
vehicles or by adjusting settings of the traffic control system can minimise the
impact of incidents.
Eligibility For the supply, installation, and maintenance of CCTV equipment to be eligible
for financial assistance, the following requirements must be met:
• there must be 25 or more traffic signal installations under SCATS control in a

CBD network. Linear arterial systems with intersections spaced at more than
500 metres are not eligible
• there must be intersections on co-ordinated routes where the critical

approaches have saturation factors which regularly exceed 0.8 for at least
one hour of a peak period, per week day, where:
∑ actual lane flows on the approach
saturation factor =
∑ saturation lane flows × phase split
Financial Financial assistance for supply and installation of cameras, control room
assistance monitor(s) and the communication system will be eligible for financial
assistance within the road reconstruction work category.
Maintenance will be eligible for financial assistance within the traffic services
work category.
Staff time for the operation of the surveillance system is not eligible for financial
assistance.

Page 7-42
7.4.7 Closed circuit television, continued
Conditions of Approval for financial assistance will be subject to the following conditions:
approval
• the cameras shall be installed so they provide surveillance of the controlling
intersections
• a competent operator shall be in attendance during all periods of peak traffic

flow (such as commuter peaks) and at other times when traffic flows may be
a problem (eg sporting events, concerts, parades and weekend shopping)
• close liaison shall be maintained with enforcement agencies, emergency

services and media so that effective responses to problems can be initiated.
These responses may include, for example, removing vehicles from
clearways or publicising messages relating to road closures or detours.
Application Applications for financial assistance shall include:

details
• a description of the SCATS system and traffic management strategy,
especially in terms of the co-ordinated routes
• a description of the proposed surveillance system, including a street map

showing the SCATS controlled intersections and CCTV camera sites and
coverage
• justification for proposed cameras at intersections on co-ordinated routes

where the critical approaches have saturation factors. This justification shall
include a tabulation of the critical intersections and their approaches, giving
the saturation factors
• details of operating procedures for the surveillance system, setting out how
the peak traffic flows are monitored and how liaison is maintained. The
details submitted shall include:
− documentation on the hours the control room is to be manned, by whom,

and their SCATS experience level, and
− documentation of agreements with the external agencies detailing how

the communications are to occur, by whom, and what sort of responses
may be appropriate.

Page 7-43
7.4.8 Cycling facilities
Introduction The construction and maintenance of cycle facilities for transportation purposes
qualify for financial assistance within the relevant road controlling authority’s
programme.
Rule: The construction and maintenance of purely recreational cycling facilities

is not eligible for financial assistance.
Note: Where a road has inadequate width for the safe passage of cyclists then
the construction and maintenance of either a wider carriageway or separate
cycleway, as appropriate, is eligible for financial assistance within the relevant
road controlling authority’s programme.
Cycle facilities The construction and maintenance of cycle facilities is eligible for financial
assistance within the relevant road controlling authority’s programme provided
the facilities are consistent with the relevant local authority’s strategic plan.
Shared The cycle portion of a shared cycle/footpath, provided the total width of the
cycle/footpaths cycle/footpath is greater than 2.2 metres, is eligible for financial assistance
within the relevant road controlling authority’s programme.

Page 7-44
7.4.9 Maintenance management systems
Introduction Land Transport NZ requires the use of an approved pavement information

system for treatment selection, as a condition of receiving financial assistance.
Initial inventory The initial inventory data covers the following:

data
• carriageway
• traffic volumes
• surfacing
• rating
• roughness
• shoulders
• surface water channels
• pavement layers
• rehabilitation
• drainage
• traffic facilities
• minor structures
• features.
Roughness and Roughness and rating surveys of all sealed roads are to be taken at least every
rating surveys second year.
New projects The inventory database shall be updated as soon as practicable after any
project that affects the network is completed.
Training In order for rating work to be eligible for financial assistance, the road condition
certificate raters acting on behalf of the controlling authority are required to hold a current
required
certificate issued by the New Zealand Institute of Highway Technology (NZIHT)
following satisfactory performance at a rating training workshop.

Page 7-45
7.4.10 Off-street parking areas
Introduction Neither construction nor maintenance of off-street parking is eligible for

financial assistance.

Page 7-46
7.4.11 Pedestrian facilities
Introduction The construction of pedestrian facilities is only eligible for financial assistance in
limited circumstances. They are:
• specific approved projects in the walking and cycling activity class, and
• those other cases described in this section.
Note: The construction and maintenance of purely recreational pedestrian

facilities is not eligible for financial assistance.
Footpath on The construction and maintenance of new or additional footpaths on an existing

structures public roading structure will be eligible for financial assistance within the
relevant road controlling authority’s programme, subject to normal
programming requirements.
Reinstatement Reinstatement of footpaths and vehicular crossings are eligible for financial
of footpath and assistance when they are required because of a financially assisted street
vehicular
widening or reconstruction project. Reinstatement is to be to original standards
crossings
only. No additional improvements are eligible.
Pedestrian New pedestrian overbridges/underpasses over/under existing roads are eligible

overbridges/ for financial assistance within the relevant road controlling authority’s
underpasses
programme.
Pedestrian The maintenance of pedestrian bridges affording access to roads, streets, or

bridges highways is not eligible for financial assistance.
Maintenance Maintenance of pedestrian facilities, other than those on structures as provided

above, is not eligible for financial assistance.

Page 7-47
7.4.12 Protection planting
Introduction Protection planting designed to arrest the slumping or displacement of road

platforms is eligible for financial assistance as a separately identified preventive
maintenance item.
Examples The following are examples of such work:
• the initial costs of planting, including any fencing or other protective

measures to prevent damage by stock
• the purchase of any land required outside the road reserve for planting
and/or retirement
• compensation payable to a landowner for a covenant to retire land and/or

plant trees for road protection where purchase is impracticable or
undesirable.
Conditions of Approval of financial assistance is conditional on the following:

approval
• the design and supervision of the planting are to be carried out by or under
the direction of a qualified soil conservator
• legally enforceable agreements are to be actioned which define the

responsibilities for management of retired areas outside the road reserve
• there is to be no duplication of financial assistance from Land Transport NZ

and other sources.

Page 7-48
7.4.13 Quality assurance requirements
Introduction Land Transport NZ requires tendering authorities, when undertaking roading

physical works, that qualify for financial assistance to engage contractors who
comply with Land Transport NZ’s quality assurance requirements.
Quality These quality assurance requirements provide for different levels of quality
assurance assurance, depending on the complexity of the works. The different levels are:
requirements
• ISO 9000 for complicated tasks
• Transit Quality Standard 1 (TQS1) for reasonably complicated tasks
• Transit Quality Standard 2 (TQS2) for straightforward tasks.
Rule: Land Transport NZ will only provide financial assistance where

contractors undertaking physical works are quality assured suppliers for all
contracts let after 1 July 2000.

Page 7-49
7.4.14 Rail crossings
Introduction The Railway Safety and Corridor Management Act 1992 (RSCMA) is intended to
clarify the legal environment for rail service operators. The RSCMA makes
provision for railway safety and corridor maintenance. In several places it also
clarifies the responsibilities of road controlling authorities.
The RSCMA is designed to identify clearly who is responsible for the different
aspects of infrastructure maintenance; in particular where roads and rail
facilities meet. However, in certain places it allows for agreements between
road controlling authorities and rail service operators, which may take a
different approach than that laid out in the RSCMA.
The sections of the RSCMA which especially affect road controlling authorities
are noted in this topic.

Page 7-50
7.4.14 Rail crossings, continued
Warning devices Section 5 of the RSCMA allows rail service operators to erect notices and
at level warning devices, after consultation with the controlling authority of the road
crossings
concerned.
[RSCMA s5]
Note: The relevant rail track authority and Land Transport NZ 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 these full costs, these costs are accepted for financial
assistance.
Railway Section 8 of the RSCMA sets out the responsibility for maintenance of parts of
crossings the road/rail infrastructure, in terms of what part of a railway crossing is
[RSCMA s8]
maintained by the rail service operator and what part is maintained by the road
controlling authority.
Note: Road controlling authorities and rail service operators can make
separate agreements with respect to facilities if they wish to do so.
Management of Section 9 of the RSCMA covers management of a railway where it crosses or

railway along or runs along a road.
across road on
level
[RSCMA s9] Note: This section does not apply to any light rail transit facility.
Local authorities Local authorities or other road controlling authorities can contribute to the
may contribute maintenance of facilities such as subways. Section 10 of the RSCMA sets out the
towards cost of
legal framework for such agreements between rail service operators and local
structures
[RSCMA s10] authorities or other road controlling authorities.
Railway drains Section 11 of the RSCMA specifies that road controlling authorities or local
[RSCMA s11] authorities will be responsible for the maintenance of any drain on railway land
which carries stormwater or sewage.
No right to Section 12 of the RSCMA states that any easements over railway land can only
easement over be granted by the rail service operator itself.
railway land
[RSCMA s12]

Page 7-51
7.4.14 Rail crossings, continued
Lights and signs Section 13 of the RSCMA gives power to rail service operators to remove non-
near a railway railway lights and signs where they may cause confusion to rail operators.
[RSCMA s13]
Power to Section 14 of the RSCMA gives power to rail service operators to require
prevent damage landowners or occupiers to trim hedges or lower fences if there is a danger to
to railway
rail traffic.
[RSCMA s14]
Protection of Section 15 of the RSCMA acts as a transitional provision to legalise existing

existing works railway facilities on land which may not be in their ownership (eg after Treaty of
[RSCMA s15]
Waitangi settlements). The section also makes clear that no one will have an
interest in any railway by virtue of having only an interest in the land over
which that railway runs.
Rights of entry Section 16 of the RSCMA states that railway owners can enter land to get
in respect of access to the railway, for the purposes of inspecting, maintaining or operating
existing works
an existing railway, or completing one under construction as at 1 April 1993.
[RSCMA s16]
Construction or Section 17 of the RSCMA sets out the conditions under which a rail service
repairing lines operator can maintain rail works on a road.
and equipment
on roads
[RSCMA s17]
Notice to be Section 18 of the RSCM Act sets out the conditions for giving notice to the
given before relevant road controlling authority before commencing work.
alteration of
lines or works
on road
[RSCMA s18]
Charging for Section 23 of the RSCMA states that local authorities cannot charge any sort of
access to road rent for any rail services works on a road.
reserve
[RSCMA s23]
Basis for Qualifying work relating to level crossing warning devices receives financial
payment assistance from Land Transport NZ at a financial assistance rate of 100 percent.

Page 7-52
7.4.15 Revoked or declared state highways
Introduction As a result of changes to the state highway network, some roads may be
redesignated as either state highways or local roads.
Standards Any road handed over to another road controlling authority shall be in a
reasonable state of repair as at the gazetted date. However, the putting right of
any deficiencies, prior to handover, is limited to roading maintenance.
Financial Transitional financial assistance will be provided for territorial authorities such
assistance that the financial effect of revoking state highways in their area will not increase
their programme share (exclusive of construction) by more than three percent
over the previous year.
If any decrease to a territorial authority’s financial assistance rate is warranted

due to the declaration of a state highway, the adjustment will be made in
accordance with the policy Establishment of base rates.

Page 7-53
7.4.16 Road safety audits
Introduction Road safety audit (RSA) is a procedure for auditing the safety of projects through
their development process. It can be applied to roading, walking or cycling
projects but does not apply to auditing of the existing network or specialist
applications, such as traffic control at roadwork sites.
A RSA is typically undertaken at the following key stages of a project’s
development:
• Feasibility/concept
• Preliminary design/scheme assessment
• Detailed design
• Pre-opening/post construction.
However, these stages are not rigid. There will be occasions where the project
manager will consider the need to conduct additional RSAs for critical milestones,
temporary traffic management during site investigations/ construction and
design, and build projects where there may be a need to conduct them
progressively throughout the design process.
In addition, it is recognised that smaller projects may not go through all these
stages. In this case the audit regime needs to match the project’s actual
development.

Page 7-54
7.4.16 Road safety audits, continued
Policy The Land Transport policy is as follows:
• RSAs shall be conducted, at the four key stages listed above (feasibility,
preliminary design, detailed design and pre-opening) for all new projects on
state highways and local roads unless the project manager considers there is
reason not to do so. The project manager must give full consideration to the
assessment criteria outlined below.
• The project manager may choose to do more safety audits than is prescribed
in the four stages.
• Smaller projects will not always follow all the development stages envisaged
in the four stages of audit. In these circumstances the stages of audit shall
match the project’s actual development stages.
• If the project manager considers there is justification for not conducting an

RSA then he/she must complete the ‘exception declaration’ and keep it on
file for audit purposes.
• Safety auditors must be totally independent of the project team and must be
appointed separately from the professional services contract for the project
development.
• The policy covers all new projects started after 1 July 2004. Projects already
started are not covered, though RSA is strongly recommended for all
projects. In this context ‘started’ means ‘started the planning process’ not
‘started construction’.
Assessment The purpose of any assessment criteria is to ensure that the RSA is applied to
criteria the projects that have the potential to create road safety problems.
An assessment criteria form can be found in Appendix 1 of the revised Road

safety audit guideline, published in November 2004.
The Road safety audit guideline and the assessment criteria form can be
downloaded from the Land Transport NZ website:
http://www.landtransport.govt.nz/man.html#tfm9

Page 7-55
7.4.17 Service lanes
Introduction The cost of construction and on-going maintenance of service lanes is eligible
for financial assistance, but any amount received by way of betterment shall be
deducted from the sum on which financial assistance is claimed (see the topic
Betterment).
Valuation The valuation of betterment should not be determined until the service lane has
actually been formed, sealed, and declared.
Construction Financial assistance for construction is subject to project evaluation in terms of

Land Transport NZ’s Project evaluation manual volume 1.

Page 7-56
7.4.18 Services
Introduction The road controlling authority’s share of the cost involved in the relocation of
services is eligible for financial assistance. The service authority’s share of the
costs is to be excluded from the cost of the work.
Pipes Where existing pipes are replaced with new pipes, only the cost of laying them
is eligible for financial assistance.
Policy for Where a service authority requires services to be carried on a, or where an

services on existing service is transferred due to replacement of an existing structure, the
bridges
following policy applies.
New structures: Where a service is to be carried on a new road bridge or another form of
no restriction to structure (eg a tunnel) where no restriction is to be placed on access for any
access
road user and where no ancillary service existed previously, a cost recovery
charge is to be made to the service authority.
New structures: Where a service is to be carried on a new motorway or other road structure
access restricted where restrictions are placed on classes of users (eg a toll facility), methods of
use, or freedom of access, the attachment of services will be subject to prior
consent of the road controlling authority. A cost recovery charge will apply.
New structures: Where a new structure is provided to maintain access for an existing road or
bridge to street over a new motorway or major roadway, the full costs of maintaining
maintain
existing services, including supply and installation of replacement pipes and
existing access
cables, is to be a roading charge.
Note: Where additional services are required, the provision of materials is to

be a service authority charge, with the cost recovery charge applied to reflect
the weight of the additional services required.

Page 7-57
7.4.18 Services, continued
Replacement of Where an existing structure is to be replaced, the transfer of existing services

an existing onto the new structure is not eligible for financial assistance.
structure
Note: Where additional services are required, the provision of materials is to

be a service authority charge, with the cost recovery charge applied to reflect
the weight of the additional services required.
Where cost Where services are to be added to an existing structure, and where prior cost
recovery recovery arrangements (in terms of the above cases) have not been applied,
arrangements
the attachment of new services to the structure will be dependent on a
have not been
made structural check to ensure that the services can be accommodated safely.
Note: All costs involved in attaching the services to the structure are to be met
by the service authority. The cost recovery charge will be applied with respect
to the original cost of constructing the structure.
Cost recovery The following formula for the cost recovery pertains:
charge
Weight of services with content

Cost recovery charge = x
cost of bridge
Overall weight of bridge superstructure
Note: The service authority is to make the necessary arrangements for

supplying its own materials and for installation, either at the time of bridge
construction or a later date.

Page 7-58
7.4.19 State highway/local road connections
Introduction This section sets out cost responsibility for road work that involves both state
highways and local roads.
State highway and motorway boundaries should be located in such a manner

that boundaries of responsibility are clear and practical for all aspects, including
designation, construction, maintenance and control.
Note: A delegation or agreement is required for any work within the state
highway reserve that is to be a local road charge.
Policy principles Cost responsibilities for roading infrastructure should be based on the following
underlying principles:
• be in accordance with the provisions of the Land Transport Management Act

(LTMA)
• reflect the relative benefits to users of the state highway and local road
networks
• recognise that the sector initiating the work should have the primary
responsibility for the cost
• be compatible with the responsibility for control of the assets involved.
The application of these procedures to specific situations is set out below. Some
connections may be complex and cover a number of these specific situations.
Cost responsibilities for these situations should be negotiated.
For situations not covered below, cost responsibilities should be negotiated on a

case-by-case basis according to the principles and priority order listed above.
Negotiations are to involve Land Transport NZ, Transit NZ and the respective
territorial authority.

Page 7-59
7.4.19 State highway/local road connections, continued
New state Where a new state highway project is constructed with connections to existing
highway project local roads, all work within the final state highway reserve, including
with connections
overbridges, underpasses and interchange ramps, are a state highway charge,
to existing local
roads except for work of a higher standard than (or in addition to) the work required
by the state highway.
Land Transport NZ may agree that the cost of new connections to local roads,
outside of the state highway reserve, may also be a state highway charge.
All other work is eligible for financial assistance in the local authority
programme.
Note: The cost of upgrading local roads as a consequence of the new

connections is a local road charge.
New state Where a new state highway project is constructed across an existing local road
highway project without connections between the roads, all work, including any work to adjust
crossing an
the local road, is a state highway charge, except for work of a higher standard
existing local
road without than (or in addition to) the work required by the state highway.
connections
All other work is eligible for financial assistance in the local authority
programme.

Page 7-60
New local road Where a new local road, including private developmental roading, is connected
connecting to an to a state highway, construction of the local road including any overpass or
existing state
underpass is a local road charge.
highway
The cost of any access ramps is a state highway charge, except where the
primary purpose of the new connection is to provide access to a private facility,
in which case the full ramp costs shall be met by the owner of that facility.
Where there is no clear distinction between the ramps and the bridge
structures, eg at a directional interchange, the ramp/bridge costs are to be
shared according to the proportion of ramp to bridge costs for an equivalent
standard interchange with the same number of ramps as the standard
interchange.
Any associated state highway upgrading necessitated by the need to cater for
local traffic that is effectively crossing the motorway, such as the provision of
auxiliary motorway lanes, is to be a local road charge. This is because provision
for traffic crossing the state highway is deemed to be a function of the local
road network.
Local road Where a new local road is constructed across a state highway without
crossing an connections to the state highway, no costs are to be a state highway charge.
existing state
highway without The work is eligible for financial assistance in the local authority programme.
connections
Upgrade of an Where an existing intersection between a state highway and a local road is
existing state upgraded, reconstructed or relocated, all work within the state highway reserve
highway/local
is a state highway charge.
road intersection
Any realignment or upgrading of the local road that is necessitated by the

project will also be a state highway charge. Land Transport NZ will however
require a local road contribution for any work that exceeds the minimum level
of upgrading necessary to the project.

Page 7-61
State highway Where construction work is undertaken on a state highway and an intersection
intersecting with with an unsealed local road is involved, the unsealed side road shall be sealed
unsealed local
to a distance of ten metres from the limit line position. The work is to be a full
road
charge to the state highway project. Future maintenance of this work is a full
state highway cost.
Note: The purpose of this policy is to:
• provide traction for approaching traffic
• permit supplementary pavement marking to be provided and maintained

where appropriate
• reduce the hazard due to gravel migrating onto the state highway.
Maintenance of The maintenance of the carriageway of a local road, intersecting at grade with a
local roads state highway, for a distance of ten metres from the limit line position or to the
intersecting at
end of seal, whichever is the lesser, shall be a state highway charge. This
grade with state
highways maintenance includes:
• pavement maintenance
• maintenance of regulatory signs associated with the intersection
• maintenance of pavement marking related to traffic control of the

intersection where these are appropriate
• maintenance of raised traffic islands related to the traffic control of the

intersection.

Page 7-62
7.4.20 Stock crossings
Introduction The following policy applies where provision of stock crossings across, under or
over a road have been requested to connect two parts of a property.
Road protection If the least long-term maintenance cost is to use a protective covering over the
where stock road (eg road/stock mats, or a specialised seal coating), then this cost is
cross at grade
eligible for financial assistance under the pavement maintenance work category
(see W/C 1 in section 2.2.1).
Traffic control All approved signs and road markings required for a stock crossing are eligible
where stock for financial assistance under the traffic services work category (see W/C 12 in
cross at grade
section 2.2.2).
New alignment When a new road deviation severs a rural property, the roading portion of an
access structure may be included as part of the total road construction cost.
Cost sharing is to be considered on the following basis:
• Where provision of an access structure can be made at a cost less than that
involved in acquiring the severed area of land, the full cost of the access
structure will be accepted as a charge to the roading improvement. This
includes the value of any improvements.
• Where the cost of providing an access structure exceeds the value of the
severed land, no stock access structure shall be provided. This is where the
value of improvements is included and the landowner is not prepared to sell
the severed land.
Note: Other options to be considered include:
• the resale or exchange of the severed land, or
• purchase and resale of both portions.
Existing Where existing and proposed stock movements on existing roads significantly
alignment affect road traffic, a proportion of the cost of constructing a stock access
structure (including fees) will be accepted as a roading cost.
This roading cost may be included in the programme as a minor safety project
subject to normal programming procedures.

Page 7-63
7.4.20 Stock crossings, continued
Existing roads: The graph on the next page sets the proportion of an access structure’s cost
proportion of that will be accepted as a roading cost. This is where the structure is to be built
cost
on an existing road.
Note: Where a vehicle accident record exists, the project should be considered
as a road reconstruction project in which case if the project generates a profile
better or equal to the prevailing funding threshold profile, the total cost will be
accepted as a roading cost.
Form of The form of the structure should be determined by the needs of the farmer
structure subject to approval of the design by the road controlling authority.
Agreement for Land Transport NZ requires that the road controlling authority obtain a written
landowner undertaking from the farmer that the farm layout and farm management will be
rearranged to eliminate any at grade stock crossing immediately on completion
of the access structure.
The road controlling authority should also consider an encumbrance to be

registered against the title of the property affected by the under or overpass.
For a template of an encumbrance, refer to the Road Controlling Authority
Forum’s Best practice guidelines for stock crossings.
Approvals The road controlling authority can approve applications for projects that
conform to this policy.
Proposals not complying with this policy shall be referred to Land Transport NZ
for a decision.
Maintenance Any structural repairs may be included in the bridge maintenance work
category. However, at a minimum, the landowner will be responsible for the
cost of:
• maintenance of the track through the structure
• associated drainage and fencing
• the repair of any damage to the structure caused by the farmer’s use or
activity.

Page 7-64
7.4.20 Stock crossings, continued
Cost sharing for stock underpasses or overpasses

Share of total cost (%) accepted as a roading cost
AADT
Formulae: CAS = 0.05t (on roads having less than 500 AADT)
CAS = 25% (on roads having greater than or equal to 500 AADT)
Where: CAS = road controlling authority’s contribution to the total construction cost
of an access structure on an existing road (in percent)
t = traffic volume (AADT)

Page 7-65
7.4.21 Stock truck effluent disposal sites
Introduction The following policy applies where a road controlling authority has requested
financial assistance for the provision of a stock effluent disposal site.
Note: The agreement of the co-funders of the disposal site must be confirmed
in writing before an application for funding is made.
Policy principle Stock effluent disposal sites are funded under the principle of exacerbator pays.
The National Land Transport Account component is recognition of the
willingness to pay by the general motoring public for the prevention of effluent
spillage that is seen as a nuisance and a potential hazard. An additional benefit
is the safety benefit gained from the construction of the wide sealed area where
any vehicle may safely move off the road if they need to.
The ultimate exacerbator is the original owner of the stock who benefits from
the sale of that stock for processing. There is no cost effective method of
levying this from the stock carried. Therefore, local rates paid to either the
relevant territorial authority, or the relevant regional council, or both, is
considered a fair method of raising an appropriate proportion of the
construction cost.

Page 7-66
7.4.21 Stock truck effluent disposal sites, continued
Construction of The cost of construction of any stock effluent disposal site may be eligible for
stock effluent inclusion in the road controlling authority programme, subject to:
disposal sites
• the site being part of an agreed regional or national strategy
• the relevant territorial authority agreeing to maintain the stock effluent

disposal infrastructure including disposal of any stock effluent
• the site being situated as close as practicable to the road
• a formal lease, or an agreement to occupy, being signed where the stock

effluent disposal site is not part of the road reserve, giving access to the site
as though it were a road.
The financial assistance that will apply to the total project shall be calculated on
the following basis:
• 50 percent of the cost of the construction of the stock effluent disposal

infrastructure
plus
• The total cost (100 percent) of any necessary roading improvement works to
enable vehicles to safely enter and exit the disposal facility.
Note: If the site is on a local road but is identified within the regional strategy
as being a strategic site then it will also be eligible for 100 percent of the
roading improvement costs within the land transport programme.
Maintenance of Maintenance of stock effluent disposal infrastructure and disposal of stock

stock effluent effluent from the sites is eligible for financial assistance under the relevant
disposal sites
approved organisation’s land transport programme under the amenity/safety
maintenance work category, and funded at the relevant base rate.
Maintenance of associated roading improvement works is eligible for financial

assistance under the relevant land transport programme.

Page 7-67
7.4.22 Stopping roads and bridges
Introduction The cost of planning and legalisation associated with the stopping of roads and
bridges is eligible for financial assistance.
Private access Where the purpose of a road or bridge is essentially that of private access and
does not meet the criteria as an economic roading facility, Land Transport NZ
supports its transfer to the relevant property owners.

Page 7-68
7.4.23 Stormwater drainage
Surface water The maintenance, reinstatement, and forming of surface water channels are
channels eligible for financial assistance within the pavement maintenance category.
Kerbed water The maintenance, renewal, and construction of kerbed water channels are
channels eligible for financial assistance within the major drainage repair category.
Extensions to The cost of extensions to territorial authority drainage systems is normally not
drainage eligible for financial assistance. Land Transport NZ, however, will consider
systems
applications for financial assistance on a partial cost of drainage extensions in
built-up areas where such improved drainage is necessary for the protection of
the road.
In general, costs should be apportioned according to the respective volumes of

runoff from contributing areas of roadway and other land.

Page 7-69
7.4.23 Stormwater drainage, continued
Discharge of Where no artificial drainage system exists and street water is discharged from
surface water the water channel by means of pipes or open drains into natural watercourses
on, adjacent to, or across the road reserve, the costs involved are eligible for
financial assistance. Similarly, the costs of discharging street water into artificial
drainage systems (sumps, mains, or open drains) on, adjacent to, or across the
road are eligible.
Underground The cost of underground connections to territorial authority drainage systems

connections necessary for the disposal of street surface water (eg sump and connection to
the main) is eligible for financial assistance.
Land drains The maintenance of land drains is normally not eligible for financial assistance.
Note: Even though land drains may be situated in the road reserve, their
maintenance is the responsibility of the relevant drainage authority. However, if
the drains are also used as road drainage facilities, then financial assistance may
be approved by the partnership manager on the basis of the proportion of the
catchment areas.

Page 7-70
7.4.24 Subdivisional roads
Construction The construction of subdivisional roads is not eligible for financial assistance.
Construction includes second coat sealing.
Expenditure on formed or unformed dedicated roads giving access to the

subdivisional roading is eligible for financial assistance irrespective of whether a
subdivider makes a contribution to the cost.
Maintenance The maintenance of subdivisional roads is eligible for financial assistance after
their dedication to the territorial authority.
Rule: Geometric and pavement standards shall be in accordance with Land

Transport NZ’s Standards and guidelines manual.

Page 7-71
7.4.25 Traffic signals
Eligibility for Traffic signal installation on territorial authority roads is eligible for financial
financial assistance provided the installation is in accordance with Land Transport NZ’s
assistance
Standards and guidelines manual.
Flashing lights Flashing lights at entrances involving emergency services are not eligible for
for emergency financial assistance.
services

Page 7-72
7.4.26 Traffic signs and pavement markings
Introduction The installation and maintenance of certain traffic signs and pavement markings
are eligible for financial assistance within the traffic services work category
provided they comply with the Manual of traffic signs and markings adopted by
Land Transport NZ.
Responsibility This table describes the conditions under which certain signs are eligible for
for supply, financial assistance.
erection, and
maintenance of
traffic signs Type of sign Responsibility
Regulatory signs The road controlling authority.
Note: Regulatory signs on local roads relating to state

highway intersections are a full charge to the state
highways programme.
Permanent The road controlling authority.

warning signs
Temporary The agency authorised to carry out the work with costs to
warning signs for be met as part of the work being undertaken.
planned road
Note: Signposting is subject to the approval of the road
works or
controlling authority
activities
Temporary The road maintenance contractor under direction from the

warning signs for road controlling authority with costs of holding stocks to be
emergency met as part of maintenance costs for the roads involved.
conditions
Guide signs The road controlling authority for the leg of the intersection
on which the sign is erected.
Road and street The territorial authority controlling the road or street to
name signs which the sign refers.
Tourist The local or tourist interests requiring the signs, with

information signs locations and format of signs subject to the approval of the
defining routes of road controlling authority. All costs are to be met by the
tourist interest special interest groups.
(eg heritage
trails)

Page 7-73
7.4.26 Traffic signs and pavement markings, continued
Responsibility This table is continued from the previous page.

for supply,
erection, and
maintenance of Type of sign Responsibility
traffic signs,
continued Tourist signs The road controlling authority, with costs of installation
advertising the and maintenance are to be met by the interest groups
presence of requesting the signs.
recognised tourist
Note: The agreement for use of these signs is to be
interests
advised to the road controlling authority by the
accepted reviewing authority (normally the regional
council). The location and format of the signs require
the road controlling authority’s agreement.
Motorist service signs The road controlling authority, but only where an
directing motorists to established need exists to provide information to the
services for which an travelling public.
international symbolic
Note: For all other cases, costs are to be met by the
message has been
agency requesting the signs, with approval from the
approved.
road controlling authority.
Includes: Fuel,
accommodation,
eating facilities, and
rest areas.
General information The road controlling authority.

signs
General advertising The interest groups requesting the signs at full cost to
signs indicating sales the advertised commercial interest.
outlets adjacent to the
Note: Such signs may be erected only with the
roadway
permission of the road controlling authority.
Maintenance The maintenance of pavement markings, the frequency of replacement and

guidelines cleaning of signs, and the repainting of support posts are dependent on traffic
and environmental conditions within a local area and are therefore not
conducive to control by national guidelines. Road controlling authorities should
develop guidelines suitable for their local situation.
Note: Maintenance of parking and fire hydrant locator markings on state

highways in urban areas is funded within the relevant land transport
programme.

Page 7-74
7.4.27 Transportation studies
Introduction Land Transport NZ will provide financial assistance for approved transportation
studies to build models of land transport systems and to prepare strategic plans.
Procedures to For a transportation study to receive financial assistance, these procedures must
follow be followed:
• The work must be confined to the preparation of strategic plans.
• The terms of reference must be approved by Land Transport NZ. The terms of
reference must include:
− the scope
− the timeframe
− the deliverables/outputs
• The terms of reference must demonstrate compliance with Land Transport

NZ’s Project evaluation manual volume 2.
• The work must be carried out under the oversight of a technical committee
with representatives from the affected controlling authorities. This committee
will specify the work, manage the budget, and ensure the work is carried out.
• Where there is significant model building involved, a nominee from Land

Transport NZ must be on the technical committee to ensure that the
appropriate standards are being met.
• Road controlling authorities must undertake to keep the models up to date

(where a number of potential projects with network-wide effects have been
identified) for the regular review of strategic roading plans and the
development and analysis of operational plans.
• Completion of studies on schedule is a condition of funding and unless delays

are justified, expenditure beyond the agreed completion date will not be
eligible for financial assistance.
• Land Transport NZ reserves the right to obtain copies of up-to-date models at

any time.

Page 7-75
7.4.27 Transportation studies, continued
Application of All transportation study projects that receive financial assistance are normally
procurement subject to Land Transport NZ’s procurement procedures.
procedures for
transportation If a territorial authority wishes to undertake a transportation study in-house,
studies
then:
• specific Land Transport NZ approval, based on the merits of each case, is

required, and
• a cap on funding will apply.

Page 7-76
7.4.28 Transport demand management, rail and sea freight
Introduction Land Transport NZ may provide financial assistance for transport demand
management, rail and sea freight proposals that have been evaluated using the
procedures in Land Transport NZ’s Project evaluation manual volume 2.
Procurement To qualify for financial assistance, all transport demand management, rail and
sea freight activities, including associated professional services, must comply
with one of the following:
• a specifically approved regional alternative procurement procedure, or
Professional Financial assistance may be available for the investigation, and design of a
services transport demand management, rail and sea freight activity. If approved, this
financial assistance will be paid at the time of the first payment. The financial
assistance rate will be the same as the rate applicable to the transport demand
management, rail and sea freight proposal.

Page 7-77
7.4.28 Transport demand management, rail and sea freight, continued
Funding Before any transport demand management, rail and sea freight activity is
agreements submitted for financial assistance, there must be an agreement in writing
between the parties receiving the benefits that all parties will contribute their
proportion of the total cost.
Note: A regional council may choose to fund a territorial authority’s share of

the total cost.
Financial Financial assistance for new rail and sea freight activities will be based on the
assistance proportion of expected benefits identified in the evaluation. These benefits will
be allocated to the parties receiving those benefits.
Each party will be expected to contribute towards the total funding of the
service in proportion to their share of the total benefits.
For approved activities, Land Transport NZ will pay financial assistance in

proportion to the share of the total benefits that arise from the following
fundable benefits:
• road cost savings (less lost road user payments)
• road user benefits (reduced congestion and accidents)
• environmental benefits.
That is, Land Transport NZ’s financial assistance will be based on the
proportion that the fundable benefits above comprise the total benefits.
The financial assistance rate will depend on the road type on which the
fundable benefits accrue. The proportion of costs equating to the fundable
benefits that accrue:
• on state highways, will be funded at 100 percent
• on local roads, will be funded at the applicable financial assistance rate

(FAR) for the territorial authority.

Page 7-78
7.4.28 Transport demand management, rail and sea freight, continued
Basis of Payment of financial assistance will be made on the realisation of the identified
payment benefits. This may be indicated by the amount of freight being carried.
An allowance will be made initially for the usage of the new service. Where a
service does not meet the projected freight levels, then the level of financial
assistance may be renegotiated.
Transport The cost of a full evaluation in accordance with the evaluation procedures may
demand not be justified for output proposals that require $5,000 or less per year of
management,
financial assistance. Land Transport NZ will consider simplified evaluations in
rail and sea
freight proposals such cases.
with small
funding
requirements
Future changes Rail and sea freight activities are primarily funded on an output basis, which
in rail and sea means that other parties must take the risk on capital investment. Rail and sea
freight activities
freight financial assistance policy is relatively new, has not been tested on many
financial
assistance policy projects and is likely to be refined as Land Transport NZ gains experience with
applying the policy.
Rule: That rail and sea freight activities funded as activities, Land Transport
NZ will fix the financial assistance rate for the duration of the contract between
the regional council and the operator:
• except that if the FAR policy changes to the regional council’s advantage,
Land Transport NZ may, at its discretion, offer the increased FAR to the
regional council.

Page 7-79
7.4.29 Vegetation control
Introduction Vegetation control of roadside berms, medians, and traffic islands is generally
eligible for financial assistance under the amenity/safety maintenance work
category.
Note: Maintenance of protection planting is eligible for financial assistance

within this category.
Urban areas In urban areas, maintenance of the area between the kerb and the road reserve
boundary is not eligible for financial assistance.
Grass cutting to lawn standard or maintenance of alternative low-cost ground

cover treatments in medians and traffic islands is eligible.
Note: Aesthetic treatments (such as flower gardens) on berms, shoulders,

medians, and traffic islands are not eligible for financial assistance.
Rural areas In rural areas, maintenance and grass cutting of roadside berms and unsealed
shoulders may only be sufficient to ensure:
• adequate visibility
• general safety
• drainage
• the elimination of a fire hazard or pest refuge.
Periodic Other types of periodic maintenance to regulate growth on road reserves is

maintenance on eligible for financial assistance.
road reserves
Note: This does not include the control of noxious weeds declared in terms of
the Biosecurity Act 1993 (or its replacement legislation).
Rest areas on The cost of constructing rest areas on road reserves is eligible for financial
road reserves assistance subject to project evaluation in terms of Land Transport NZ’s Project
evaluation manual volume 1.
The cost of maintaining such rest areas is eligible for financial assistance within
the amenity/safety maintenance work category.

Page 7-80
7.4.30 Walking and cycling strategies
Introduction Land Transport NZ will provide financial assistance to territorial authorities for
the cost of fees incurred in the preparation (including reviews) of approved
strategies to promote walking and/or cycling as viable modes of transport.
Procedures to be The work must be confined to the preparation of strategies to establish walking
followed and/or cycling as viable modes of transport in the locations covered.
Walking and/or cycling advocacy groups, Transit NZ and Land Transport NZ

must be consulted during the preparation of the strategies.
Strategies must be consistent with the appropriate regional land transport

strategy and the national walking and cycling strategy.
Contents of the Strategies must include:

strategies
• a practical walking and/or cycling network including the existing network and
the proposed new network
• network supportive activities for pedestrians and/or cyclists
• measurable outcomes
• an approach (broad outline of the methodology to achieve the outcomes)
• specific parameters to measure success or progress toward outcomes
• programme measures to overcome the perceived negative aspects of

walking and cycling
• a programme of physical works and estimates of costs
• an assessment of existing safety problems and planned mitigation strategies
• enforcement and education issues
• a broad economic assessment of the proposals
• provisions for special groups.

Page 7-81
7.4.31 Weighing facilities
Construction The construction and upgrading of weighing facilities is eligible for financial
assistance provided these facilities are:
• owned by the road controlling authority, and
• approved and/or operated as weight surveillance facilities.
Maintenance The maintenance of such facilities is to be programmed under the pavement

maintenance category.

Page 7-82
7.5 Community Road Safety Programme funding policy
Overview
Introduction This section outlines the funding framework and allocations for the Community
Road Safety Programme (CRSP) for the 2006/07 year.
Topic Page
7.5.1 CRSP funding framework 7-83
7.5.2 CRSP funding allocations 7-85

Page 7-83
7.5.1 CRSP funding framework
Community Road Land Transport NZ’s Community Road Safety Programme (CRSP) provides for
Safety community development activity for road safety and community road safety
Programme
programmes.
(CRSP)
The CRSP ensures that communities receive assistance to identify their own local
road safety issues and are supported in developing their own informed solutions
to address these risks. This is important as it encourages community ownership
of both the issue and the solution and thereby builds positive and sustainable
changes in road safety attitudes and behaviours at the community level.
CRSP process The strategic funding framework is provided in part 5 of the National Land
Transport Programme (NLTP) Guidelines package. The funding allocations by
regional council area are contained in section 7.5.1, and the diagram below
outlines the process Land Transport NZ follows at the local level to work with
deliverers in planning and funding individual CRSP activities.
Nov, Dec, Jan - community consultation Feb – regional planning sessions to

agree local road safety plans for input
into stakeholders’ business plans
Sep, Oct – road

safety briefings for End Feb – Applications due at
stakeholders Land Transport NZ offices
Mar – Land Transport NZ National

Office approval of Land Transport
NZ regional plans
Apr, May, Jun – negotiation of contracts with local

authorities/community groups/providers. All contracts
signed before funding transfer.
Aug – the Authority’s Land Transport May, Jun – CRSP

Programme process starts in August activities entered on
with the issuing of the strategic and 1 Jul – New CRSP database
funding framework for the CRSP in the financial year
Land Transport Programme Guidelines

Page 7-84
7.5.1 CRSP funding framework, continued
CRSP for For the 2006/07 year, the status quo of previous years for CRSP management
2006/07 and and funding will be adopted.
subsequent
years For subsequent years, Land Transport NZ will be considering opportunities to
enhance the planning and funding arrangements for the CRSP given the merger
of the Safety Administration Programme and the NLTP through the Authority’s
Land Transport Programme (ALTP). However, it will take some time to work this
through with our partners and to develop practical options for moving forward.

Page 7-85
7.5.2 CRSP funding allocations
CRSP resource The CRSP resource allocation formula applies to both community development
allocation for road safety and community road safety programmes, to both the general and
formula
dedicated funds, and to advertising funding in support of the CRSP.
The formula focuses entirely on equity criteria1. This ensures that proportionally
more resources per capita are allocated to communities with relatively high risk,
low incomes and sparse populations, to assist them to lift their level of road
safety to that of the general population.
The population levels of communities are taken into account implicitly in each of
the three criteria, as the allocations have been calculated on a per-capita
(person) basis. The three equity criteria are:
• social cost per-capita, which is a direct measure of risk. The per-capita

allocation of funds is directly proportional to the road safety social cost2
across the population. This ensures more resources per capita are invested in
high-risk communities
• per-capita income, which is an indirect measure of risk because it is generally

recognised that people who belong to lower socio-economic groups have
higher crash rates
• population density, which recognises the difficulty involved in delivering

safety messages to communities that are spread out over a large geographic
area. The per-capita resources have been calculated to recognise that, when
a population in one area is twice as spread out as that in another, the
resources required are not necessarily doubled. This is because some of the
cost elements can be shared between locations and some costs are fixed.
The allocation is made at territorial authority level first and then aggregated to
arrive at the regional area allocations. This enables equity measures at the
territorial authority level to be taken into account.
The CRSP allocation formula’s variables for each of the three equity criteria
change over time, eg risk and the formula is applied by Land Transport NZ every
three years. However given that future planning and funding arrangements are
not yet developed, the status quo is being applied to funding levels for the
2006/07.
1 The original formula included an efficiency criterion.

2 The social cost of a crash is the measure of all costs that the crash inflicts on the community – on road users,
emergency service providers and others. It includes not just the costs of material losses (such as medical
treatment and property damage) but also pain and suffering.

Page 8-1
Chapter 8 Funding policy for regional

authorities
Overview
Introduction This chapter outlines the programme management procedures and Land
Transport NZ’s financial assistance policy for regional authorities.
Note: In addition to regional authorities, other approved organisations may

qualify for funding for the activities covered by this chapter.
Section Page
8.1 Financial assistance policy for regional authorities 8-2

Page 8-2
8.1 Financial assistance policy for regional authorities
Overview
Introduction Land Transport NZ’s financial assistance policy for regional authorities sets
financial assistance at different rates depending on the work category.
Topic Page
8.1.1 Regional transport studies and professional services 8-3
8.1.2 Community services 8-4
8.1.3 Social services 8-5
8.1.5 Administration 8-8
8.1.7 Claims 8-9
8.1.8 Overclaims 8-12

Page 8-3
8.1.1 Regional transport studies and professional services
Introduction This topic sets out the interim measures for financial assistance for transport
studies and professional services.
Interim
measures for As an interim measure for 2004/05 (from 1 October 2004) and 2005/06, the
2004/05 and
following financial assistance rates apply:
2005/06
Then the FAR is

If the regional authority activity has…
the…
Regional transport studies (including regional multi-modal 75%

package studies, passenger transport studies, regional
studies and rail or sea freight investigations and evaluations.
Note: Any regional strategy is to be funded under work

category 96, regional land transport planning which receives
a different financial assistance rate.
Professional services related to planning, investigation and

design of capital projects identified as regional priorities
and agreed by Land Transport NZ

Page 8-4
8.1.2 Community services
Introduction Work funded under this activity provides for road, rail and ferry services
contracted by regional authorities.
Basis for Qualifying work relating to community services receives financial assistance from
payment Land Transport NZ at:
• a variable financial assistance rate for road and ferry passenger transport
services, depending on past payments under the patronage funding scheme
• a financial assistance rate of 60 percent for rail passenger transport services.

Page 8-5
8.1.3 Social services
Introduction Work funded under this activity provides services for persons dependent on
public transport.
Basis for Qualifying work relating to social services receives financial assistance from Land
payment Transport NZ at a financial assistance rate of:
• 40 percent for road passenger transport services
• 60 percent for rail passenger transport services, or
• 60 percent for replacement wheelchair hoists.

Page 8-6
8.1.4 Interim policy for funding infrastructure in the 2005/06 and 2006/07
National Land Transport Programmes
Introduction Land Transport NZ will consider applications for capital funding of passenger
transport infrastructure.
Basis for Financial assistance for any passenger rail, bus or ferry infrastructure will be
payment considered for funding under the passenger rail infrastructure work category for
rail related activities or the passenger transport infrastructure work category for
bus, ferry or multi-modal related activities, provided it has been evaluated in
accordance with Land Transport NZ’s passenger transport evaluation procedures
as contained in the Project evaluation manual volume 2.
Applications for funding should explain the links between projects and, where
appropriate, presented in the form of packages to avoid the double counting of
benefits between linked projects.
Supplementary funding from local authorities and other parties will be taken
into account when assessing the economic efficiency factor of the proposal as
part of the prioritisation stage of Land Transport NZ’s allocation process.
Land Transport NZ funding will normally be channelled through the regional

authority (or ARTA), even when a territorial local authority partly funds the
project.
Land Transport NZ funding may be conditional on:
• any future disposal of assets being subject to agreement with Land

Transport NZ
• effective measures to ensure appropriate access by other operators and

commercial interests.
Rule: Applications need to take account of ongoing maintenance costs and any
revenue generated from sources such as car parking fees. Ongoing
maintenance or operating costs associated with approved capital projects or
packages will be funded as part of the ongoing bus and ferry passenger
transport services or passenger rail services.
Rule: The basis of payment for bus or ferry projects or packages with a cost
under $400,000 are to be agreed with Land Transport NZ before commitments
are made and can be funded as part of the ongoing financial assistance to
regional authorities for bus and ferry operations. Formal economic efficiency
assessment of projects or packages with a total cost of up to $400,000 will not
usually be required.

Page 8-7
8.1.4 Interim policy for funding infrastructure in the 2005/06 and 2006/07
National Land Transport Programmes, continued
Financial Qualifying passenger transport infrastructure receives financial assistance from

assistance rates Land Transport NZ at a rate:
• equal to the construction financial assistance rate (FAR) of the

territorial local authority in which the project is implemented for bus,
ferry or multi-modal infrastructure over $400,000. Such projects or
packages under $400,000 may receive financial assistance under work
category 78 (bus and ferry services)
• up to a maximum of 60 percent (decided on a case by case basis) for rail

infrastructure owned by the Crown
• up to a maximum of 60 percent (decided on a case by case basis) for rail

rolling stock.
Note: where a project or package spans across more than one authority the
FAR will be determined on a case by case basis.

Page 8-8
8.1.5 Administration
Introduction Financially assisted administration activities consist of two sub-groups:
• regional land transport planning (work category 96), and
• passenger rail administration (work category 98).
Note: Administration funding for regional authorities relating to bus and ferry
services is now included in the passenger transport activity class (as part of the
patronage funding scheme).
Basis for Qualifying work relating to regional land transport planning receives financial
Qualifying work relating to passenger rail administration receives financial

assistance from Land Transport NZ at a financial assistance rate of 50 percent.

Page 8-9
8.1.6 Claims
Submitting Claims may be submitted monthly for all qualifying expenditure that is supported
claims by certified invoices. A regional authority need not have made an actual payment
at the time of claiming assistance.
Rule: Claim items are to be listed in accordance with the work categories
identified in the approved programme. Calculations are to be to the nearest
dollar. The claim must comply with these required criteria.
Payments Land Transport NZ will pay claims within 21 days of their receipt.
Form 8.3 The form provided on the next page (form 8.3) serves as a certification and
summary of claims for financial assistance.
Final claims Final claims are those that claim for work done to 30 June.
Note: Final claims are not to exceed approved allocation.
Deadline for Final claims are to be received by Land Transport NZ’s partnership manager no
final claim later than 31 July.
submission
Claims subject Claims for financial assistance are not checked in detail prior to payment. Land
to audit Transport NZ has arranged for periodic audits of selected claims. These are
called procedural audits.
Note: Detailed examination automatically follows in any case reported to Land

Transport NZ by the Audit Office.
Cost recording All expenditure from the land transport disbursement account shall be recorded
in that account in a form that is compatible with the approved programme.

Page 8-10
Form 8.3
Tax invoice and claim for payment

To Land Transport NZ Office Date
Name and address only
(USE BLOCK LETTERS)
Supplier’s GST registration no
Claim no Period of claim 1 / 7 / __ to __ / __ / __
Summary of claims TOTAL

Total claim to date (excluding GST) $
Less previous payments ( 1 to ____ ) $
Amount now payable (excluding GST) $
GST amount $
Total amount now payable (including GST) $
Approved organisation certificate
Note: The attention of the certifier is drawn to the offence provisions of section 109 of the Public
Finance Act.
I CERTIFY –
(i) that the expenditure included in the claim has been incurred in accordance with the requirements of the
Land Transport Management Act
(ii) that all expenditure included in this claim has been recorded in the land transport disbursement account
in the form and detail prescribed by the Land Transport NZ New Zealand, and the documents supporting
the expenditure are available for examination, if necessary
(iii) that the expenditure included in this claim is for an approved output or capital project in terms of the
Land Transport Management Act, is eligible for funding by Land Transport NZ New Zealand, has been
incurred on the work claimed, and is reasonable for the type of work done
(iv) that the work has been completed to the value for which payment has been claimed
(v) that the work is in accordance with Land Transport NZ’s standards and guidelines
(vi) that to the best of my knowledge and belief, the foregoing claim is true and correct in all respects.
Acting under authority from:

(signature of)
Chief Executive Officer/Principal Administration Officer

Page 8-11
Record keeping Whatever form of accounts is adopted by a regional authority, adequate prime
records and working papers must be held to support claims to the satisfaction
of the Audit Office and Land Transport NZ’s performance monitoring team.
The following specific records are to be retained by organisations for a period of

at least seven years after the end of the financial year to which they relate:
• books of account (whether contained in a manual, mechanical, or electronic

format) which record receipts and payments or income and expenditure
• vouchers, bank statements, invoices, receipts, and such other documents as

may be necessary to verify the entries in the books of account
• accounts (whether contained in a manual, mechanical, or electronic format).
Note: Land Transport NZ may, at its discretion and on request by any regional
authority, dispense with the need to retain any of the records specified above.

Page 8-12
8.1.6 Overclaims
Introduction Overclaims become a debt due to the Crown immediately upon establishment of
the debt.
Refund Where Land Transport NZ agrees to a refund being made by instalments,

interest is payable.
False certificates Attention is drawn to the relevant section of the Public Finance Act, which
provides for the imposition of penalties on persons who give false certificates for
the purpose of procuring for any approved organisation the improper payment of
any public money.
Genuine errors Where a genuine error has occurred which results in an overclaim by an
approved organisation, the amount of overclaim may be offset against
subsequent claims. Land Transport NZ will consider each case on its merits.

Page 8-13
8.2 Specific determinations
Overview
Introduction This section deals with specific policy determinations relating to work that
qualifies for financial assistance.
Topic Page
Interim mechanism for funding alternative (non-

8.2.1 8-14
road) freight operations
8.2.2 Passenger transport models 8-17
Transport demand management, rail and sea

8.2.3 8-20
freight activities
Interim policy for patronage funding for 2004/05 to

8.2.4 8-23
2006/07

Page 8-14
8.2.1 Interim mechanism for funding rail and sea freight operations
Introduction The following approach is proposed as an interim mechanism, pending further

development of the government’s rail policy, for freight operations that are
seeking a subsidy to establish an alternative to a road based operation. It is
designed for relatively small-scale operations seeking an operational subsidy, as
opposed to a capital contribution for infrastructure construction or improvement.
Operation must The activity should have a benefit-cost ratio greater than 1, as calculated
be efficient according to Land Transport NZ’s Project evaluation manual volume 2. This
means that the activity will deliver more benefits than the subsidy provided.
Activities will need to be evaluated according to the requirements of section 20

of the Land Transport Management Act. Land Transport NZ’s allocation process
provides the mechanism for evaluating activities against these requirements.

Page 8-15
8.2.1 Interim mechanism for funding rail and sea freight operations,
continued
Funding For those freight operations which satisfy the efficiency and section 20
mechanism requirements, and where a subsidy is to be granted, the following mechanism
will apply:
• funding will be provided for a limited period, up to a maximum of three years
• funding will be based on a validated business case that demonstrates
− there is a funding gap
− the freight proposal has merit
− the alternative mode will be self-sustaining by the end of the trial period
(maximum of three years)
• the funding gap will be determined by the business case’s estimate of freight
transported and the actual costs faced by the business
• the subsidy payable would be the minimum of this funding gap or the road
user benefits derived from removing this freight from the road
• the actual subsidy paid in a year would be based on the subsidy rate (eg
$ per tonne) multiplied by the outputs actually achieved (eg tonnes carried
by the alternative mode) up to an agreed $ maximum
• the financial assistance rate will depend on the circumstances of the

proposal, including the type of road from which the freight is removed. For
local roads, the maximum assistance rate will be the financial assistance rate
applying to the relevant local authority. For state highways, the maximum
financial assistance rate will be 100 percent
• the applicant will acknowledge, as part of its written agreement with the
party it funds, that the subsidy will cease at the end of the trial period
• there will be full public disclosure of the basis of payments and the
maximum amount of subsidy agreed by Land Transport NZ and the
applicant, as well as the subsidy amounts paid by Land Transport NZ.

Page 8-16
8.2.1 Interim mechanism for funding rail and sea freight operations,
continued
Additional In addition to the funding mechanism conditions, the following guidelines would
guidelines apply to the activities that would qualify for funding under this approach. Land
Transport NZ anticipates that:
• this approach would apply to relatively small-scale freight operations (eg

annual subsidy less than $1 million per year)
• the subsidy would be a relatively small proportion of the total cost of freight
(otherwise it is unlikely the activity will become self sustaining)
• the subsidy rate would reduce over the trial period as the activity moves
towards becoming self sustaining
• Land Transport NZ’s preference is to establish a funding partnership with one

or more local government entities
• the subsidy should not confer any obvious advantage to one supplier (of the
product being freighted) compared with another in the same product market.

Page 8-17
8.2.2 Passenger transport models
Introduction Land Transport NZ will provide financial assistance for approved passenger
transport studies to build models of passenger transport systems and to
prepare strategic plans.
Funding Passenger transport models are funded within the regional studies work
category within the transport demand management, rail and sea freight activity
class.
Work category 70 (regional studies) provides for developing passenger

transport models that will enable the benefits and costs of potential passenger
transport infrastructure projects to be predicted with confidence.
Passenger transport models 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
• a number of projects with network-wide effects.
Note: Subject to proposals meeting the definition for passenger transport

models, there are two criteria for their approval:
• strategic passenger transport policy and planning issues that require

development, or
• potential passenger transport projects that require evaluation using

passenger transport models.

Page 8-18
8.2.2 Passenger transport models, continued
Procedures to For a passenger transport modelling project to receive financial assistance,

follow these procedures must be followed:
• the work must be confined to the preparation of a strategic (network) model
• the terms of reference must be approved by Land Transport NZ. The terms
of reference must include:
− the issues to be addressed
− demonstrated compliance with Land Transport NZ’s project evaluation

procedures.
• the work must be carried out under the oversight of a technical committee
with representatives from the affected approved organisations. This
committee will specify the work, manage the budget and ensure the work is
carried out
• a nominee from Land Transport NZ must be on the technical committee to

ensure that Land Transport NZ’s requirements are being met
• regional councils must undertake to keep the models up to date (where a

number of potential projects with network-wide effects have been identified)
for the regular review of strategic passenger transport plans and the
development and analysis of operational plans
• completion of models on schedule is a condition of funding and unless delays

are justified, expenditure beyond the agreed completion date will not be
eligible for financial assistance
• the methodology and assumptions used in developing the model are

documented and kept up to date
• Land Transport NZ reserves the right to obtain copies of up-to-date models

at any time.

Page 8-19
8.2.2 Passenger transport models, continued
Application of All passenger transport modelling projects that receive financial assistance are
procurement normally subject to Land Transport NZ’s procurement procedures.
procedure for
passenger If a regional authority wishes to undertake a modelling project in-house, then:
transport
models
• specific Land Transport NZ approval, based on the merits of each case, is
required, and
• a cap on funding will apply.
Basis for Qualifying work relating to passenger transport models receives financial
At Land Transport NZ’s discretion, an interim financial assistance rate of 75

percent, for 2004/05 (from 1 October 2004) and 2005/06, may apply.

Page 8-20
8.2.3 Transport demand management, rail and sea freight activities
Introduction Land Transport NZ may provide financial assistance for transport demand
management, rail and sea freight proposals that have been evaluated using the
procedures in Land Transport NZ’s Project evaluation manual volume 2.
Procurement To qualify for financial assistance, all transport demand management, rail and
sea freight activities, including associated professional services, must comply
with one of the following:
• a specifically approved regional alternative procurement procedure, or
Professional Financial assistance may be available for the investigation, and design of a
services transport demand management, rail and sea freight activity. If approved, this
financial assistance will be paid at the time of the first payment. The financial
assistance rate will be the same as the rate applicable to the transport demand
management, rail and sea freight proposal.

Page 8-21
8.2.3 Transport demand management, rail and sea freight activities, continued
Funding Before any transport demand management, rail and sea freight activity is
agreements submitted for financial assistance, there must be an agreement in writing
between the parties receiving the benefits that all parties will contribute their
proportion of the total cost.
Note: Any approved organisation may choose to fund the regional council’s
share of the total cost.
Financial Financial assistance for new transport demand management, rail and sea freight
assistance activities will be based on the proportion of expected benefits identified in the
evaluation. These benefits will be allocated to the parties receiving those
benefits.
Each party will be expected to contribute towards the total funding of the
service in proportion to their share of the total benefits.
For approved activities, Land Transport NZ will pay financial assistance in

proportion to the share of the total benefits that arise from the following
fundable benefits:
• road cost savings (less lost road user payments)
• road user benefits (reduced congestion and accidents)
• environmental benefits.
That is, Land Transport NZ’s financial assistance will be based on the proportion
that the fundable benefits above comprise the total benefits.
The financial assistance rate will depend on the road type on which the fundable
benefits accrue. The proportion of costs equating to the fundable benefits that
accrue:
• on state highways, will be funded at 100 percent
• on local roads, will be funded at the applicable FAR for the territorial
authority.

Page 8-22
8.2.3 Transport demand management, rail and sea freight activities, continued
Basis of Payment of financial assistance will be made on the realisation of the identified
payment benefits. This may be indicated by the amount of freight being carried.
An allowance will be made initially for usage of the new service. Where a
service does not meet the projected freight levels, then the level of financial
assistance may be renegotiated.
Rail and sea The cost of a full evaluation in accordance with the evaluation procedures may
freight proposals not be justified for output proposals that require $5,000 or less per year of
with small
financial assistance. Land Transport NZ will consider simplified evaluations in
funding
requirements such cases.
Future changes Rail and sea freight activities are primarily funded on an output basis, which
rail and sea means that other parties must take the risk on capital investment. Transport
freight activities
demand management, rail and sea freight financial assistance policy is
financial
assistance policy relatively new, has not been tested on many projects and is likely to be refined
as Land Transport NZ gains experience with applying the policy.
Rules:
• That for transport demand management, rail and sea freight activities capital
projects, Land Transport NZ will fix the financial assistance rate when the
project is approved, for the duration of the project.
• That for rail and sea freight activities funded as outputs, Land Transport NZ
will fix the financial assistance rate for the duration of the contract between
the regional council and the operator:
− except that if the FAR policy changes to the regional council’s advantage,
Land Transport NZ may, at its discretion, offer the increased FAR to the
regional council.

Page 8-23
8.2.4 Interim policy for patronage funding for 2004/05 to 2006/07
Future A review of the revised bus and ferry patronage funding scheme is under way
implementation by the Ministry of Transport. The Ministry expects that any recommendations
arising from the review will be consulted with Local Government New Zealand
prior to any implementation.
Basis for The years 2004/05 and 2005/06 have been designated transitional years, prior
payment: to any revised scheme becoming operational. This phase-in period has now
financial
been extended into 2006/07.
assistance for
2004/05 to
2006/07 During 2004/05 and 2005/06 financial assistance to regional authorities for bus
and ferry services, associated minor capital works and administration are
calculated by multiplying the total passenger transport expenditure in these
areas by the effective FAR for the year in question. The effective FAR for each
year is calculated so as to ensure roughly equal annual steps from the region’s
2003/04 FAR towards an effective FAR of 50 percent for 2006/07 for each
regional authority operating bus or ferry services.
Note: Any financial assistance for this area of funding is covered under work
category 78 (bus and ferry services). Detailed descriptions of programme
development and management for this work category are contained in chapter
2 of this manual.

A-1
Appendix A Land Transport NZ policy consultation and

communication process
Background It is essential that Land Transport NZ develops new policies and/or reviews or
enhances existing policies in response to new legislative/ministerial
requirements, requests from customers, and changes in technology, the
economy and transport policies. To achieve this Land Transport NZ needs to
involve those organisations that are directly affected – namely road controlling
authorities and regional councils (RCAs/RCs).
Scope Land Transport NZ will follow the process outlined in Appendix A of this manual
for the development of all new or reviewed policy. This does not include
clarification of an existing policy, or the issue of information by Land Transport
NZ.
Process The process is split into five sections:
1. Development of the consultative framework – this covers what types

of consultative mechanisms will be used.
2. Communication and publicity – this discusses how all interested

parties will be advised of progress with the consultation.
3. Implementation of the policy – this outlines the decision-making and

training phase.
4. Link with National Land Transport Programme (NLTP) agreements

– this shows how any policy variations can be incorporated into the NLTP
agreements between Land Transport NZ and RCAs/RCs.
5. Review of the process – this sets out the review phase of the policy
consultation and communication process.

A-2

Communication process, continued
Section 1: Land Transport NZ will seek feedback from Local Government New Zealand
Development of (LGNZ) and Transit NZ on the timing and process for the proposed consultation
the consultative
at least a month before the consultation phase is initiated.
framework
The consultative process will comprise one or more of the following

mechanisms:
• forum – used to advise/educate/raise awareness/scope during the early

stages of a major new policy (eg the consultation workshops held on Land
Transport NZ’s allocation process in November 2003)
• established advisory groups – used to debate issues, update on progress,

seek views on significant issues (eg Passenger Transport Advisory Group and
Land Transport Consultative Group, both chaired by Land Transport NZ, RCA
Forums chaired by Transit NZ and LGNZ, and council or regional land
transport committee meetings)
• working group/industry group – used where the technical input of

RCAs/RCs is necessary to develop policy, and/or a detailed policy is being
developed where significant consultation/discussion is needed (eg project
evaluation review)
• distribution of a draft policy or policy issue(s) to a selected number

of RCAs/RCs – used where technical input/scrutiny/peer review is needed
to ensure that the policy is correct/workable and to identify unforeseen
implications or impediments to implementation. This mechanism suits policy
that does not have significant compliance cost/practical difficulties, policies
that have been requested by a majority of RCAs/RCs or policies where
significant support has been previously identified (eg some Programme and
funding manual amendments). Transit NZ will be sent a copy of any draft
policy that could impact on state highways
• distribution of a draft policy or policy issue(s) to all RCAs/RCs for

comment – used where a significant number of RCAs/RCs have expressed
an interest/commitment to providing comment within a certain time frame
(eg NLTP agreements with RCAs/RCs). All RCAs/RCs will be kept informed
and given the opportunity to comment (if council consideration is required,
average meeting cycles need to be considered in the development of the
timeframe).

A-3

communication process, continued
Section 1: • a combination of any of the above – can be used if a policy falls within
Development of several of these categories. Other industry members may also be involved in
the consultative
the consultation process such as through representation on working groups
framework,
continued or direct meetings and correspondence.
Land Transport NZ, LGNZ and Transit NZ management will discuss the extent to
which mayors/chief executives (including councils and the Transit NZ Board)
and the Ministry of Transport are to be involved in the development of each
particular policy.
Land Transport NZ will document the agreed process and timing and copy it to
Transit NZ and LGNZ.

A-4

Section 2: LGNZ will advise its members via its next available newsletter of Land Transport
Communication NZ’s particular policy review, consultation process and timing. (Local authorities
and publicity
will keep their clients/contractors informed, as necessary).
Land Transport NZ will include reference to the particular policy review,

consultation process and timing in the next publication of Land Transport NZ
news.
If a working/discussion group situation is used, members are responsible for

ensuring that their own organisation and all other RCAs/RCs (including mayors,
chief executives, councils, and the Transit NZ Board, as applicable) are kept
informed (where LGNZ has nominated representatives it will facilitate this
communication). Members are to keep Land Transport NZ informed as to what
mechanisms are being used to keep other RCAs/RCs informed and obtain any
feedback on issues.
Land Transport NZ will keep all RCAs/RCs informed as to progress with the
policy development via letters to nominated NLTP agreement representatives or
newsletters and provide additional updates upon request.
All RCAs/RCs will receive direct feedback from Land Transport NZ on any
comments they make on a proposed policy. This will include a response as to
how the comments will be addressed in the policy or an explanation as to why
they cannot be incorporated.
Land Transport NZ will distribute working group minutes to all RCAs/RCs. Any
questions/comments on the minutes should be sent to the RCA/RC working
group representatives.

A-5

Section 3: All RCAs/RCs will be advised of the Land Transport NZ Board’s decision on the
Implementation policy. If a working group was involved in the policy development, its members
of the policy
will be advised as to the variations, if any, from its recommendations and the
reasons for the variations.
Once approved by the Land Transport NZ Board, all policies will be placed in
Land Transport NZ manuals.
Copies of the manuals or manual amendments will be available to all RCAs/RCs

sufficiently in advance of their implementation to enable adequate
familiarisation.
Land Transport NZ will provide training on the final policy on a needs basis.
Section 4: Policy variations will, where appropriate, be finalised prior to the distribution of
Link with NLTP any new NLTP Agreement (this is likely to be in April/May each year).
agreements
If policy variations are to occur part way through an Agreement term, the
consultative process developed above will, after discussions with Transit New
Zealand and LGNZ, specify how any necessary variations to Agreements are to
be negotiated. In the case of local authorities, this is preferably through a
nationally represented working party.
Land Transport NZ will advise all RCAs/RCs by letter if the Agreements need to
be varied.
Section 5: This policy consultation and communication process will be kept under review to
Review of the ensure it is functioning to the satisfaction of all parties.
process

Index-1
Index
In this index This index contains 24 pages.

Index-2
Index, continued
Abutment 1-10, 1-23, 1-25, 1-27, 2-27, 7-38

Access and mobility 1-5, 3-4, 3-12
Accident investigation monitoring system (1994) 2-26
Accounts
land transport disbursement account 1-4, 1-6, 1-7, 3-36, 6-1, 6-2, 7-16, 7-19, 8-9,
8-10
National Land Transport Account 1-1, 1-2, 1-4, 1-5, 1-6, 1-7, 1-24, 3-37, 4-1, 5-1,
7-2, 7-27, 7-37, 7-65
Achievement reports
mid-year 1-9, 5-1, 5-2, 5-3
physical achievement return 5-2, 5-3, 5-5,5-7
Activity structure 2-1, 2-2, 2-3, 2-4, 2-5, 2-45
Administration, definition of 1-10
administration (state highways) 2-5, 2-57, 3-34, 3-36
administration and project control 1-17, 2-1, 2-5, 2-56, 7-4
administration support 2-5, 2-58
passenger rail administration 2-5, 2-46, 2-59, 8-8
regional land transport planning 2-5, 2-37, 2-53, 2-59, 8-3, 8-8
Advanced traffic management systems (ATMS) 2-25
Affected community 1-10, 3-9, 3-10, 3-11
Alignment 1-10, 7-62
ALTP, see Authority’s Land Transport Programme
Amenity/safety maintenance 2-2, 2-14, 6-4, 7-66, 7-79
Annual achievement report 1-9, 5-2, 5-3, 5-4, 5-5, 5-6, 5-7, 5-8, 5-10, 5-13,
5-14, 5-15,
Annual average daily traffic (AADT) 1-10, 7-10, 7-64
Annual instructions 1-9, 3-5, 3-14, 3-26, 3-37
Approved organization, definition of 1-10
Area-wide pavement treatment (AWPT) 2-2, 2-7, 2-8, 2-9, 5-6
Area-wide traffic control 1-10, 2-16, 2-25, 7-30, 7-32, 7-33

Index-3
Index, continued
Auckland Regional Transport Authority (ARTA) 1-10, 3-3, 3-4, 8-6

Auditor-General 1-6, 7-19
Authority, definition of 1-10
Authority’s Land Transport Programme (ALTP) 1-10, 3-1, 3-4, 3-14, 3-41, 3-42, 3-43, 3-44, 3-45,
7-83, 7-84
process 3-41, 3-42
recommendations 3-41, 3-43, 3-44, 3-45
Bailey bridge 1-11, 2-13, 2-19
Base programme, definition of 1-11
Base rate(s) 2-20, 7-4, 7-7, 7-11, 7-12, 7-13, 7-14, 7-25, 7-32,
7-52, 7-54, 7-66
Basecourse 1-11, 1-15, 1-21
Benefit-cost ratio (BCR) 1-11, 2-34, 2-40, 2-41, 2-42, 2-43, 3-19, 3-31,
3-33, 4-5, 4-6, 4-7, 4-8, 4-12, 4-15, 8-14
Berm(s) 1-11, 7-79
Betterment 1-11, 2-33, 7-30, 7-34, 7-35, 7-55
Block allocation 1-11, 2-29, 3-25, 4-2, 4-9, 4-11, 4-18, 7-11, 7-12,
7-13, 7-17
Boundary roads and bridges 7-30, 7-36
Bridge manual 7-37
Bridges
approaches 2-27, 2-28, 7-38
boundary roads and bridges 7-30, 7-36
cost recovery of services 7-56, 7-57
new 2-3, 2-25, 2-27, 2-28, 5-7, 7-56
renewals 2-3, 2-25, 2-27, 2-28, 5-3, 5-5, 5-6, 7-27, 7-38
Bus and ferry services 2-4, 2-45, 2-46, 2-51, 8-6, 8-7, 8-8, 8-23
Bus lane markings 2-16
Bus lanes 2-49
Bus priority lanes 2-16
Bus ways 2-49
Business unit 1-11, 2-58, 3-34, 6-1, 6-3, 6-4, 6-5, 6-6, 6-7, 6-8,
6-9, 7-22
Carriageway lighting 2-2, 2-14, 2-17, 6-4

Index-4
Index, continued
Carriageway(s) 1-10, 1-12, 1-13, 1-14, 1-17, 1-21,1-22, 1-23,

1-24, 2-15, 2-54, 2-55, 7-30, 7-39, 7-43, 7-44,
7-61
Carryover 1-12, 4-16, 4-17, 4-18
Cash flow adjustments 4-3, 4-5
Category 1 activities 3-21, 3-32, 3-37, 4-1, 4-12
Category 2 activities 3-21, 3-32, 3-37, 4-1, 4-2, 4-12, 4-13
Cattlestops 1-12, 7-30, 7-40
Causeway, definition of 1-12
Centre line (the pavement marking in the centre
1-12, 1-16
of a road)
Centreline 1-10, 1-12, 5-8, 5-10
Cesspits 2-15
Channelisation, definition of 1-12
Chevron board, definition of 1-12
Chip seal 1-12, 1-22, 2-11, 2-12, 2-15
Claims
claim form 2-15, 7-8
final 7-15, 7-17, 8-9
internet electronic 7-15, 7-17
overclaims 7-20, 8-12
supplemental 1-9, 4-2, 7-17, 7-18
Cleaning, of streets 2-2, 2-14, 2-15, 6-4
Closed circuit television (CCTV) 2-16, 7-30, 7-41, 7-42
Cluster 1-12, 3-43, 3-44
Commissioner (of Police) 1-13, 3-9, 3-10, 3-11
Committed activities (commitments) 1-13, 3-20, 4-15, 7-18
Community Road Safety Programme (CRSP) 1-13, 3-45, 7-1, 7-82, 7-83, 7-85
process 7-83
resource allocation formula 7-85
Competitive pricing procedures, manual of 6-1
Concession road, definition of 1-15
Concessionary fares 1-13, 2-45, 2-46
Corrugations, definition of 1-13
Cost estimation manual (SM014) 3-30
Cost increases 4-2, 4-5, 4-6, 4-7, 4-9, 4-15
Cost recovery of services on bridges 7-56, 7-57

Index-5
Index, continued
Crash reduction studies 1-13, 2-3, 2-19, 2-25, 2-26, 2-35, 3-16, 3-35, 5-7,
7-4
Crib wall, definition of 1-13
Crossings
level crossing warning devices 2-2, 2-14, 2-18, 7-50, 7-51
pedestrian 1-19, 2-17, 2-35
rail level crossings 2-7, 7-31, 7-49, 7-50, 7-51
stock 7-31, 7-62, 7-63, 7-64
CRSP, see Community Road Safety Programme
Culverts 1-11, 1-13, 2-7, 2-10, 5-8, 5-10, 7-37
Cycling
cycle facilities 2-5, 2-52, 2-54, 2-55, 5-7, 7-43
cycle lane(s), definition of 1-13
cycle path(s), definition of 1-13
cycleway maintenance 2-2, 2-14, 2-18, 2-55, 6-4
cycleway markings 2-16
cycleway(s) 2-2, 2-14, 2-18, 2-55, 6-4, 7-43
recreational walking and cycling 1-20, 7-43, 7-46
shared cycle/footpaths 7-43
Declared or revoked state highways 2-20, 7-31, 7-52
Delegations
block allocation transfers 4-2, 4-9, 4-11
confirming a programme 3-14
exemption to procurement procedures 6-2
local road work within state highway reserve 7-58
submitting claims 7-15
Development status flow chart 3-32, 3-33
Direction sign, definition of 1-14
Divided highway, definition of 1-14

Index-6
Index, continued
Drainage
artificial drainage systems 7-69
emergency reinstatement 2-2, 2-23, 5-6, 7-22
extensions 7-68
flanking 1-15, 2-7
in relation to pavement smoothing 2-29
incipient slips 2-21
kerb and channel 1-16, 2-10, 7-68
land drains 1-16, 7-69
major drainage control 2-2, 2-7, 2-10, 5-6
stock underpasses 7-63
stormwater 7-31, 7-50, 7-68, 7-69
subsoil drainage 2-7, 2-10
surface water channel 1-11, 1-20, 1-23, 2-7, 7-44, 7-68
vegetation control 7-79
Economic development 1-5, 3-4, 3-12
Edge break 1-14, 2-8, 2-12
Edge line 1-14, 1-16
Effluent disposal facilities 2-14, 2-25, 7-31, 7-65, 7-66
Embankment(s) 1-14, 1-15
Emergency services 2-14, 7-42, 7-71
Emergency telephones 2-16

Index-7
Index, continued
Emergency work, definition of 1-14

allocations handled at programme reviews 3-27, 4-1
applications 7-24
bridging 7-22
financial assistance rate 7-28
financial assistance rate graph 7-29
emergency work on local roads application for
7-25
financial assistance – Form 7.3 LR
payment of advances 7-27
policy 7-1, 7-21
reinstatement 2-2, 2-21, 2-23
emergency work on state highways application
7-26
for financial assistance – Form 7.3 SH
time limit 7-27
unspent allocations 4-16
Emulsion seal 1-25, 2-12
End-of-year reconciliation 4-1, 4-2, 4-14, 4-15, 4-18
Environmental sustainability 1-5, 3-4, 3-12
Estimates
firm estimate of cost (FEC) 3-30, 3-31
preliminary assessed cost (PAC) 3-30, 3-31
rough order of cost (ROC) 3-30, 3-31
status of estimates for improvement projects 3-13, 3-30, 3-31
Transit New Zealand’s Cost estimation manual
3-30
(SM014)
Existing services (transport) 1-14, 7-56, 7-57

Index-8
Index, continued
Feasibility report, project (PFR) 1-19, 2-19, 3-31, 3-33, 3-34

Financial assistance grants 2-2, 2-20
Financial assistance rates (FAR), definition of 1-15
base rate(s) 2-20, 7-4, 7-7, 7-11, 7-12, 7-13, 7-14, 7-25, 7-32,
7-52, 7-66
effective FAR for patronage funding 1-14, 8-23
First coat seal 1-15, 1-23
Flanking 1-15, 2-7
Footpaths, definition of 1-15
on structures 7-46
reinstatement of 7-46
safety footpaths as minor safety projects 2-35
shared cycle/footpaths 7-43
Ford 1-15, 7-37

Index-9
Index, continued
Forms
Form 3.1 – Preventive maintenance application 3-27, 3-28
for financial assistance
Form 3.3 – Multi-party projects financial 3-39, 3-40
summary report
Form 4.1 – Request for programme adjustment 4-9, 4-10
Form 4.1A – Request for funding approval of 4-12, 4-13
category 2 activities
Form 4.2 – Request for carryover of unspent 4-16, 4-17
allocation
Form 5.1.3 LR – Local road annual statistics 5-10, 5-11
Form 5.1.3 SH – State highway annual 5-8, 5-9
statistics
Form 5.1.3 SP – Special purpose road annual 5-10, 5-12
statistics
Form 5.1.4 (bus) – Passenger transport annual 5-13, 5-14, 5-16, 5-17, 5-18
statistics
Form 5.1.4 (ferry) – Passenger transport 5-19, 5-20
annual statistics
Form 5.1.4 (rail) – Passenger transport annual 5-21, 5-22
statistics
Form 5.1.4 (mobility) – Passenger transport 5-23, 5-24
annual statistics
Form 5.2 – Annual property purchase report 5-26, 5-27
Form 7.2 – Tax invoice and claim for payment 7-15, 7-16
Form 7.3 LR – Emergency work on local roads 7-24, 7-25
application for financial assistance
Form 7.3 SH – Emergency work on state 7-24, 7-26
highways application for financial assistance
Form 8.3 – Tax invoice and claim for payment 8-9, 8-10
Freight services 2-40, 2-41,2-42, 2-43
Funding agreement, multi-party 3-38
Furniture 1-15, 2-16, 2-18
Gabion, definition of 1-15
General administration 3-34, 3-36
Geometric and pavement standards 7-39, 7-70
Graffiti 2-14
Granular
material 1-15
unbound overlays 2-29

Index-10
Index, continued
Grass cutting 7-79

Grit 1-15, 1-25
Ground water 1-15, 1-25
Guard rails 1-15, 2-16, 2-35
Incipient slips 2-21
Information sign 1-16, 7-72, 7-73
In-house professional services 3-34, 6-1, 6-2, 6-8, 6-9
Intersection(s) 1-12, 1-13, 1-14, 1-21, 1-24, 2-28, 2-35, 7-33,
7-41, 7-42, 7-60, 7-61, 7-72
Judder bars, definition of 1-16
Kerb 1-11, 1-16, 2-10, 2-29, 2-54, 2-55, 7-79
Kerb and channel 1-16, 2-10, 7-68
Key dates 1-1, 1-9
Land drains 1-16, 7-69
Land transport disbursement account 1-4, 1-6, 1-7, 3-36, 6-1, 6-2, 7-16, 7-19, 8-9,
8-10
Land Transport Management Act (LTMA) 1-10, 1-2, 1-4, 1-5, 1-6, 1-7, 1-16, 2-31, 3-1, 3-
2, 3-3, 3-4, 3-5, 3-6, 3-7, 3-8, 3-9, 3-10, 3-11, 3-
12, 3-14, 3-17, 3-18, 3-23, 3-25, 6-1, 6-2, 6-4,
6-6, 6-8, 7-6, 7-58, 8-10, 8-14
Land Transport New Zealand 1-1, 1-4, 1-5, 1-10
Land transport programme (LTP)
consultation 3-2, 3-6, 3-7, 3-8, 3-9, 3-10, 3-11
district 2-17, 2-58
LTP online 3-16, 3-20, 3-27, 3-38, 3-43, 3-44, 3-45, 4-12,
7-24
preparation 1-9, 2-55, 3-1, 3-10, 3-11, 3-13, 3-14, 3-24
Transit New Zealand’s Land Transport 2-15
Programme
Lane line, definition of 1-16
Legalisation
of roads 2-19, 3-35, 7-67
surveys 1-16, 2-19, 2-33, 2-34

Index-11
Index, continued
Level crossing warning devices 2-2, 2-14, 2-18, 7-50, 7-51

Lighting
amenity 2-17
carriageway 2-2, 2-14, 2-17, 6-4
standards 2-17
Litter collection 2-14
Local area traffic management schemes (LATMs) 2-25
Local authority (LA) 1-16, 3-7, 3-9, 3-11, 3-14, 3-24, 6-8, 7-5, 7-20,
7-24, 7-59, 7-60, 8-6, 8-7, 8-15
Local government region (LGR) 1-16, 5-8, 5-9
Local roads
annual statistics 5-9
connections to state highways 7-31, 7-58, 7-59, 7-60, 7-61
Long-term council community plan (LTCCP) 3-11, 3-24, 3-25, 3-29
Long-term financial forecast 3-5
LTP online 3-16, 3-20, 3-27, 3-38, 3-43, 3-44, 4-12, 7-24
Maintenance
amenity/safety 2-2, 2-14, 6-4, 7-66, 7-79
block allocation for 3-25, 4-18
chip seals 2-2, 2-7, 2-11, 2-15, 5-6
management systems 1-17, 1-20, 3-36, 7-30, 7-44
negotiation process 3-25, 3-26
pavement 2-2, 2-7, 2-8, 2-11, 2-12, 2-14, 2-23, 6-4, 7-61,
7-62, 7-68, 7-81
preventive 2-2, 2-6, 2-19, 2-21, 2-23, 3-27, 3-28, 4-1, 7-47
structural 2-2, 2-6, 2-7, 2-8, 2-9, 2-10, 2-11, 2-12, 2-13,
3-25
Major drainage control 2-2, 2-7, 2-10, 5-6

Index-12
Index, continued
Manuals
Accident Investigation Monitoring System 2-26
(1994)
Bridge manual 7-37
Manual of competitive pricing procedures 6-1
Manual of traffic signs and markings (MOTSAM) 2-16, 7-72
Project evaluation manual volume 1 2-8, 2-23, 3-16, 7-10, 7-38, 7-55, 7-79
Project evaluation manual volume 2 7-74, 7-76, 8-6, 8-14, 8-20
Standards and guidelines manual 7-8, 7-39, 7-70, 7-71
Marker
post 1-17
route 1-21
Markings
pavement 1-18, 2-11, 2-12, 2-16, 2-28, 7-31, 7-61, 7-72,
7-73
Median, definition of 1-17
Median barrier, definition of 1-17
Mid-year achievement report 1-9, 5-2, 5-3
Minister of Transport 1-4, 1-17, 1-20, 5-2, 5-4, 6-4
Ministerial determination 6-4
Minor and ancillary works 6-1, 6-4, 6-5, 6-6, 6-7, 6-8
Minor safety projects 1-11 2-3, 2-17, 2-19, 2-35, 3-19, 3-37, 4-4, 4-15,
4-16, 4-18, 5-7 6-4, 7-4, 7-6
Multi-modal package studies 2-37, 7-4, 8-3
Multi-party funding agreement 3-38
Multi-party projects 3-13, 3-38, 3-39, 3-40

Index-13
Index, continued
National energy efficiency and conservation 1-5, 3-3, 3-12

strategy (NEECS)
National Land Transport Account (NLTA) 1-1, 1-2, 1-4, 1-5, 1-6, 1-7, 1-24, 1-26, 3-37, 4-1,
5-1, 6-6, 7-2, 7-27, 7-37, 7-65
National Land Transport Programme (NLTP)
agreements 1-8, 1-10, A-1, A-2, A-5
approval of the NLTP 3-2, 3-12, 3-19
programme adjustments 4-1, 4-2, 4-3, 4-5, 4-8, 4-9, 4-10
programme reviews 1-9, 3-27, 3-32, 3-37, 4-1, 4-2, 4-12, 4-14, 4-15,
7-11, 7-27
National land transport strategy (NLTS) 1-5, 3-3, 3-12
Net equalised land value 7-9, 7-11, 7-12
New bridges 2-3, 2-27, 2-28, 5-7, 7-56
New roads 1-17, 1-25, 2-3, 2-25, 2-28, 2-52, 5-7, 7-34, 7-56,
7-62
New services 1-17, 2-46, 7-57
New Zealand transport strategy (NZTS) 2-31
Noxious weeds 7-79
Off-street parking 7-30, 7-45
Output(s) 1-10, 1-17, 1-24, 2-1, 2-31, 2-37, 2-38, 2-41,
2-43, 2-53, 3-26, 3-34, 3-36, 6-8, 7-16, 7-74,
7-78, 8-10, 8-15, 8-22
Overpass 1-17, 7-60, 7-63, 7-64
Packages, definition of 1-18
multi-modal package studies 2-37, 7-4, 8-3
strategic 3-17
Paratransit, see total mobility

Index-14
Index, continued
Passenger transport
bus and ferry services 2-4, 2-45, 2-46, 8-8, 8-23
capital improvements 2-49, 2-50, 2-51
effective financial assistance rate for patronage 1-14, 8-4, 8-8, 8-23
funding
models 2-37, 8-13, 8-17, 8-18, 8-19
paratransit, see total mobility
passenger kilometers, definition of 1-18
passenger rail infrastructure 2-4, 2-50, 2-51, 8-6, 8-7
passenger rail administration 2-5, 2-46, 2-59, 8-8
passenger rail facility maintenance 2-4, 2-45
passenger rail services 2-4, 2-46, 2-45, 2-59, 8-6
patronage funding 1-18, 1-19, 8-13, 8-23
patronage funding scheme 1-14, 1-19, 1-24, 8-4, 8-8, 8-23
PT infrastructure 2-4, 2-46, 2-49, 2-50, 2-51, 3-16, 8-6, 8-7
PT roading improvements 2-4, 2-49
station maintenance 2-45, 2-46
shelters 2-46, 2-54
studies 2-37, 7-4, 8-3, 8-17
total mobility (paratransit) 1-18, 1-22, 1-24, 2-4, 2-46, 2-47, 2-48, 5-13, 5-15
transitional payments, definition of 1-24
Passing bay, definition of 1-18
Passing lane, definition of 1-18
Pavement
area-wide pavement treatment (AWPT) 2-2, 2-7, 2-8, 2-9, 5-6
geometric and pavement standards 7-39, 7-70
maintenance 2-2, 2-7, 2-8, 2-11, 2-12, 2-14, 2-23, 6-4, 7-61,
7-62, 7-68, 7-81
markings 1-18, 2-11, 2-12, 2-16, 2-28, 7-31, 7-61, 7-72,
7-73
rehabilitation 1-20, 2-19, 2-40, 2-42, 7-44
stabilisers 7-38
Pedestrian crossing 1-19, 2-17, 2-35
Pedestrian facilities 2-5, 2-54, 5-7,7-30,7-46
Peer reviews 3-19, 3-20, A-2

Index-15
Index, continued
Performance agreement 1-4, 3-4, 6-8

Performance monitoring 1-6, 3-18, 3-26, 3-36, 7-19, 8-11
Personal security, and safety 1-5, 3-4, 3-12, 5-14, 5-15
Phase-in period (for patronage funding scheme) 1-24, 8-23
Physical achievement return 5-3, 5-7
Pothole(s) 1-19, 2-7
Present value (PV) 1-19, 2-8, 2-10, 2-12, 2-21, 2-38
Preventive maintenance 2-2, 2-6, 2-19, 2-21, 2-23, 3-27, 3-28, 4-1, 7-47
Primer, definition of 1-19
Procurement
approved regional alternative procedure 2-45, 2-47, 7-76, 8-20
exempted activities 1-2, 1-6, 6-1, 6-2, 7-22
procedures 1-2, 1-4, 1-6, 1-7, 2-45, 2-47, 2-48, 6-1, 6-2, 6-4,
6-8, 7-22, 7-75, 7-76, 8-19, 8-20
sole supplier 2-45, 2-47, 6-1, 7-76, 8-20
Professional services 2-2, 2-6, 2-17, 2-19, 2-31, 2-58, 3-13, 3-25, 3-34,
3-35, 3-36, 6-1, 6-2, 6-9, 6-8, 7-4, 7-54, 7-76, 8-2,
8-3, 8-20
Profiling (of proposals) 3-17, 3-18, 3-21, 3-22, 4-6, 4-7, 7-63
Programme
adjustments 4-1, 4-2, 4-3, 4-5, 4-8, 4-9, 4-10
approval of the NLTP 3-2, 3-12, 3-19
development 2-58, 3-1, 7-23, 8-23
information requirements 3-29, 4-5
preparation 2-59, 3-1, 3-5, 3-13, 3-14,3-24, 3-27
reviews 1-9, 3-27, 3-32, 3-37, 4-1, 4-2, 4-12, 4-14, 4-15,
7-11, 7-17, 7-27

Index-16
Index, continued
Project (or activity)

approved 1-7, 1-9, 1-12, 1-13, 1-15, 3-32, 4-5, 4-6, 7-18,
7-46
category 1 3-21, 3-32, 3-37, 4-1, 4-12
category 2 3-21, 3-32, 3-37, 4-1, 4-2, 4-12, 4-13
cost increases 4-2, 4-5, 4-6, 4-7, 4-9, 4-15
development status 3-13, 3-32
development status flow chart 3-32, 3-33
evaluation 1-22, 2-8, 2-10, 2-12, 2-23, 2-29, 3-14, 3-16, 3-19,
3-20, 3-30, 3-31, 7-10, 7-23, 7-38, 7-55, 7-74, 7-
79, 8-18
minor safety projects 1-11, 2-3, 2-17, 2-19, 2-24, 2-35, 3-19, 3-37, 4-14,
4-15, 4-16, 4-18, 5-7, 6-4, 7-4, 7-6, 7-62
multi-party projects 3-13, 3-38, 3-39, 3-40
project control 2-5, 2-57, 3-34, 3-36
Project evaluation manual volume 1 2-8, 2-23, 3-16, 7-10, 7-38, 7-55, 7-79
Project evaluation manual volume 2 7-74, 7-76, 8-6, 8-14, 8-20
Project feasibility report (PFR) 1-19, 2-19, 3-31, 3-33, 3-34
Property
advance purchase 2-3, 2-32, 2-34
annual purchase reports 1-9, 5-1, 5-25, 5-26, 5-27
disposals 2-22
management 2-2, 2-22, 3-35
purchase 2-3, 2-22, 2-28, 2-32, 2-33, 2-34, 3-16, 3-19, 3-21,
5-11
surplus 2-34
Protecting and promoting public health 1-5, 2-52, 3-4, 3-12
Protection planting 2-21, 7-30, 7-47, 7-79
Public health 1-6, 2-49, 3-4, 3-12
Quality
assurance 7-9, 7-48
assurance requirements 7-30, 7-48
monitoring (professional services) 3-34
of project evaluations 3-19
Transit Quality Standard 1 (TQS1) 7-48

Index-17
Index, continued
Rail
facilities 7-49, 7-51
freight operations 2-4, 2-40, 2-41
level crossing warning devices 2-2, 2-14, 2-18, 7-50, 7-51
level crossings 2-7, 7-31, 7-49, 7-50, 7-51
Railway Safety and Corridor Management Act
1-20, 7-49, 7-50, 7-51
1992 (RSCMA)
service operator(s) 7-49, 7-50, 7-51
track authority 2-18, 7-50
Rail and sea freight 1-17, 1-24, 1-25, 2-1, 2-4, 2-36, 2-40, 2-41, 2-42,
2-43, 2-45, 3-14, 3-16, 7-31, 7-76, 7-77, 7-78,
8-13, 8-14, 8-16, 8-17, 8-20, 8-21, 8-22
RAMMS, see Road Assessment and Maintenance
Management System
Ramp metering 2-25
Real-time information 2-46, 2-50, 2-51
Reconciliation, end-of-year 4-1, 4-2, 4-14, 4-15, 4-18
Reconstruction
bridges (renewals) 2-3, 2-25, 2-27, 2-28, 5-3, 5-5, 5-6, 7-27, 7-38
roads 2-3, 2-12, 2-17, 2-25, 2-28, 2-29, 5-6, 5-7, 7-33,
7-41, 7-63
Recreational walking and cycling 1-20, 7-43, 7-46
Regional advisory groups 3-23, 3-24
Regional authority (RA) 5-3, 5-13, 8-3, 8-6, 8-9, 8-11, 8-19, 8-23
Regional authority (RA), definition of 1-20
2-46, 2-49, 3-9, 3-10, 3-11, 7-65, 7-73, 7-77,
Regional council (RC)
7-78, 7-83, 8-18, 8-21, 8-22, A-1
Regional council (RC), definition of 1-20
Regional development 1-17, 2-1, 2-3, 2-4, 2-24, 2-36, 3-16
Regional land transport
committees (RLTC) 2-59, 3-23, A-2
planning 2-37, 2-5, 2-53, 2-59, 8-3, 8-8
strategies (RLTS) 1-5, 2-37, 2-41, 2-43, 2-59, 3-3, 3-12, 7-80
Regionally distributed funding 3-13, 3-23, 3-24
Rehabilitation, pavement 1-20, 2-19, 2-40, 2-42, 7-44
Replacement wheelchair hoists 2-4, 2-47, 2-48, 8-5

Index-18
Index, continued
Reports
annual achievement 1-9, 5-2, 5-3, 5-4, 5-5, 5-6, 5-7, 5-8, 5-10, 5-13,
5-14, 5-15,
annual property purchase 1-9, 5-1, 5-25, 5-26, 5-27
financial summary 3-38, 3-39, 3-40
mid-year achievement 1-9, 5-1, 5-2, 5-3
national property (Transit New Zealand) 5-25
physical achievement return 5-2, 5-3, 5-5, 5-7
reporting deadlines 1-9
reporting requirements 1-2, 3-39, 5-1, 6-4, 6-5, 6-7, 6-9
Reseals 2-11, 2-12, 2-15, 5-3, 5-5, 5-6, 7-38
Research 1-4, 1-6, 1-7, 2-1, 2-5, 2-26, 7-9
Rest areas on road reserves 7-73, 7-79
Retaining structures 2-28, 7-38
crib wall, definition of 1-13
gabion, definition of 1-15
retaining walls 1-13, 1-20, 2-13
wing wall 1-23, 1-25
Reviews
delegated block allocation transfers 4-2, 4-9, 4-11
1-9, 3-27, 3-32, 3-37, 4-1, 4-2, 4-12, 4-14, 4-15,
of programmes
7-11, 7-17, 7-27
peer 3-19, 3-20, A-2
programme adjustments 4-1, 4-2, 4-3, 4-5, 4-8, 4-9, 4-10
technical, definition of 1-24
Revoked or declared state highways 2-20, 7-31, 7-52
Road Assessment and Maintenance Management
1-20, 3-26, 3-36, 5-8, 5-10, 5-11
System (RAMMS)
Road controlling authority (RCA), definition of 1-20
Road policing activities 3-43
Road safety audits 7-31, 7-53, 7-54
Road safety planning 3-43

Index-19
Index, continued
Roads
boundary 7-30, 7-36
improvement and replacement of 2-1, 2-3, 2-24
1-17, 2-3, 2-25, 2-28, 2-49, 2-52, 5-7, 7-34, 7-56,
new
7-62
2-3, 2-12, 2-17, 2-25, 2-28, 2-29, 5-6, 5-7, 7-33,
reconstruction
7-41, 7-63
1-11, 1-15, 1-20, 2-28, 2-32, 7-47, 7-51, 7-66,
reserve
7-68, 7-79
special purpose (SPR) 1-20, 1-22, 5-6, 5-7, 5-10, 5-12, 7-2, 7-4, 7-6
state highway/local road connections 7-31, 7-58, 7-59, 7-60, 7-61
subdivisional 7-31,7-70
sweeping of 1-23, 2-15
types, definition of 1-20
uneconomic roading facilities 7-7, 7-10, 7-22, 7-37
unsealed 2-7, 2-27, 2-29, 7-38, 7-61, 7-79
Roughometer, definition of 1-21
Roundabout, definition of 1-21
Route marker, definition of 1-21
Running course, definition of 1-21
Rural, definition of 1-21
litter collection 2-14
maintenance of roadside berms 7-79

Index-20
Index, continued
Safety
amenity/safety maintenance 2-2, 2-14, 6-4, 7-66, 7-79
management strategies (professional services) 3-34
1-11, 2-3, 2-17, 2-19, 2-35, 3-19, 3-37, 4-14,
minor safety projects
4-15, 4-16, 4-18, 5-7, 6-4, 7-4, 7-6, 7-62
safety and personal security 1-5, 3-4, 3-12, 5-14, 5-15
safety footpaths as minor safety projects 2-35
SCATS, see Sydney Co-ordinated Adaptive Traffic
System
Scheme assessment report (SAR) 1-22, 3-33
2-4, 2-40, 2-42, 2-43, 7-76, 8-14, 8-15, 8-16,
Sea freight operations
8-20
Seal
bridge approaches 2-27, 2-28, 7-38
chip seal 1-12, 1-22, 2-11, 2-12, 2-15
emulsion 1-25, 2-12
extensions 2-3, 2-25, 2-29, 5-7, 7-23
first coat 1-15, 1-24
maintenance chip seals 2-2, 2-7, 2-11, 2-15, 5-6
reseals 2-11, 2-12, 2-15, 5-3, 5-5, 5-6, 7-38
second coat 1-22, 2-11, 7-70
slurry 1-22, 2-12
special-purpose chip seals 2-11
texturing 2-11
thin asphaltic surfacing 2-2, 2-7, 2-12, 2-29, 5-6
void-fill 1-25, 2-11
wearing course 1-11, 1-12, 1-25, 2-7, 2-12
widening 2-2, 2-7, 2-8, 2-12, 5-3, 5-5, 5-6
Second coat seal 1-22, 2-11, 7-70
Service lanes 7-31, 7-55

Index-21
Index, continued
Services
cost recovery of services on bridges 7-56, 7-57
emergency 2-14, 7-42, 7-71
in-house professional 3-34, 6-1, 6-2, 6-8, 6-9
2-2, 2-6, 2-17, 2-19, 2-31, 2-54, 2-58, 3-13, 3-25,
professional 3-34, 3-35, 3-36, 6-1, 6-2, 6-8, 6-9, 7-4, 7-54,
7-76, 8-2, 8-3, 8-20
property management 2-2, 2-22, 3-35
traffic 2-2, 2-14, 2-16, 6-4, 7-33, 7-41, 7-62, 7-72
utility 1-25, 7-56
Services (transport)
bus and ferry 2-4, 2-45, 2-46, 2-51, 8-6, 8-7, 8-8, 8-23
community services 1-13, 2-4, 2-45, 2-46, 2-44, 8-2, 8-4
existing services 1-14, 7-56, 7-57
freight 2-40, 2-41, 2-42, 2-43
rail service operator 7-49, 7-50, 7-51
1-13, 1-14, 1-17, 1-22, 2-30, 2-39, 2-40,2-42,
services
2-46, 3-14, 8-4, 8-5, 8-6
social services 1-22, 2-4, 2-44, 2-47, 2-48, 2-45, 3-14, 8-2, 8-5
Shoulder 1-15, 1-16, 1-20, 1-22, 2-7, 2-8, 2-12, 7-44, 7-79
Sight rail 1-22, 2-16
1-15, 2-16, 2-28, 7-31, 7-51, 7-61, 7-62, 7-72,
Signs
7-73
Slow vehicle bay 1-22
Slurry seal 1-22, 2-12
Social services 1-22, 2-4, 2-44, 2-45, 2-47, 2-48, 3-14, 8-2, 8-5
Special purpose road (SPR) 1-20, 1-22, 5-6, 5-7, 5-10, 5-12, 7-2, 7-4, 7-6
Special-purpose chip seals 2-11
Stabilisers
definition of concept 1-23
pavement 7-38

Index-22
Index, continued
Standards
aesthetic 2-14
design 7-37
geometric and pavement 7-39, 7-70
intervention levels 3-26
lighting 2-17
Standards and guidelines manual 7-8, 7-39, 7-70, 7-71
State highway / local road connections 7-31, 7-58, 7-59, 7-60, 7-61
Stock
Best practice guidelines for stock crossings 7-63
cattlestop 1-12, 7-30
crossings 2-13, 2-35, 7-31, 7-62, 7-63, 7-64
effluent disposal 2-14, 2-25, 7-31, 7-65, 7-66
protection planting 7-47
subway, definition of 1-23
Stormwater drainage 7-31, 7-50, 7-68, 7-69
Strategic road policing activities 1-23
Strategy studies 2-3, 2-25, 2-31, 3-16, 3-35, 5-7, 7-4
Street cleaning 2-2, 2-14, 2-15, 6-4
Structural maintenance 2-2, 2-6, 2-7, 2-8, 2-9, 2-10, 2-11, 2-12, 2-13,
3-25
Studies
crash reduction 1-13, 2-3, 2-19, 2-25, 2-26, 2-35, 3-16, 3-35, 5-7,
7-4
multi-modal packages 2-37, 7-4, 8-3
passenger transport 2-37, 7-4, 8-2, 8-3, 8-17
regional studies 2-4, 2-37, 2-59, 8-3, 8-17
strategy 2-3, 2-25, 2-31, 3-16, 3-35, 5-7, 7-4
transportation 2-3, 2-25, 2-30, 2-37, 2-59, 3-16, 7-4, 7-31, 7-74,
7-75
Subdivisional roads 7-31, 7-70
Subsoil drainage 2-7, 2-10
Substructure, definition of 1-23
Subway, definition of 1-25
Sump(s) 2-15, 7-69
Superstructure 1-23, 7-575
Supplemental claims 1-9, 4-2, 7-17, 7-18

Index-23
Index, continued
Surface water channel 1-11, 1-20, 1-23, 2-7, 7-44, 7-68

Surveillance devices 2-25
Sustainability, environmental 1-5, 3-4, 3-12
Sweeping, of roads 1-23, 2-15
Sydney Co-ordinated Adaptive Traffic System
1-22, 7-32, 7-33, 7-41, 7-42
(SCATS)
Technical approval, definition of 1-24
Technical reviews, definition of 1-24
Telephones (emergency) 2-16
Territorial authority (TA), definition of 1-24
Thin asphaltic surfacing 2-2, 2-7, 2-12, 2-29, 5-6

Total mobility (paratransit) 1-18, 1-22, 1-24, 2-4, 2-46, 2-47, 2-48, 5-13, 5-15
Traffic
advanced traffic management systems (ATMS) 2-25
area-wide traffic control 1-10, 2-16, 2-25, 7-30, 7-32, 7-33
calming 2-35
control devices 2-16
counting surveys 2-19
islands 1-24, 7-61, 7-79
lanes 1-14, 1-16, 1-22, 1-24, 2-23
local area traffic management schemes 2-25
(LATMs)
management 1-24, 2-3, 2-25, 2-30, 3-35, 3-36, 3-44, 7-33,
7-42, 7-53
monitoring equipment 2-16
SCATS (Sydney Co-ordinated Adaptive Traffic 1-22, 7-32, 7-33, 7-41, 7-42
System)
services 2-2, 2-14, 2-16, 6-4, 7-33, 7-41, 7-62, 7-72
signals 1-10, 1-22, 2-16, 2-28, 2-54, 2-55, 7-31, 7-32,
7-33, 7-41, 7-71
signs and pavement markings 7-31, 7-72, 7-73
volumes 1-24, 2-12, 7-8, 7-10, 7-31, 7-33, 7-37, 7-44, 7-64

Index-24
Index, continued
Trailer parks 2-35

Transit New Zealand
land transport programme 2-15
national property report 5-25
Transit New Zealand Act 1-22, 6-4, 7-3, 7-6
Transitional payments, in relation to patronage 1-24
funding scheme
Transport demand management (TDM) 1-17, 1-24, 1-25, 2-1, 2-4, 2-30, 2-36, 2-37, 2-38,
2-39, 2-45, 3-14, 3-16, 7-31, 7-76, 7-77, 7-78,
8-13, 8-17, 8-20, 8-21, 8-22
Transport disadvantaged, definition of 1-24
Transportation studies 2-3, 2-25, 2-30, 2-37, 2-59, 3-16, 7-4, 7-31, 7-74,
7-75
Travel demand management 1-25, 2-4, 2-37, 2-38, 8-17
Travel behaviour change 2-4, 2-37, 2-38, 2-39, 2-52
Unbound granular overlays 2-29
Underexpenditure 1-9, 4-14, 4-16, 4-18, 7-28
Underground connections 7-69
Underpass 1-25, 7-46, 7-59, 7-60
Uneconomic roading facilities 7-7, 7-10, 7-22, 7-37
Unitary authority (UA), definition of 1-25
Urban, definition of 1-25
Utility services 1-25, 7-56
Variable message signs (VMS) 2-25
Vegetation control 2-14, 7-31, 7-79
Vehicle crossing, definition of 1-25
Void-fill seal 1-25, 2-11
Walking and cycling
pedestrian facilities 2-5, 2-54, 5-7, 7-20, 7-30, 7-46
national walking and cycling strategy 7-80
cycling facilities 2-5, 2-52,2-54, 2-55, 5-7, 7-43
promotion 2-52
walking and cycling 1-17, 2-1, 2-5, 2-37, 2-39, 2-52, 2-54, 2-55, 3-16,
7-4, 7-46, 7-80
walking and cycling strategies 2-5, 2-30, 2-53, 3-16, 7-4, 7-31, 7-80

Index-25
Index, continued
Water table, definition of 1-25

Wearing course 1-11, 1-12, 1-25, 2-7, 2-12
Weighing
devices 2-25
facilities 7-31, 7-81
Windrow, definition of 1-25
Wing wall 1-23, 1-25
Work category/activity structure 1-25, 2-1, 2-2, 2-3, 2-4, 2-5, 2-45
Work category definitions 2-1


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Programme and

Land Transport New Zealand

Published in September 2005

Chapter 1 Introduction 1-1

Chapter 2 Work category definitions 2-1

Chapter 3 Programme development procedures 3-1

Chapter 4 Programme review procedures 4-1

Chapter 5 Reporting requirements 5-1

Chapter 6 Procurement procedures 6-1

Chapter 7 Funding policy for road controlling authorities 7-1

Chapter 8 Funding policy for regional authorities 8-1

Appendix A Consultation and communication process A-1

Land Transport NZ’s Programme and funding manual Amendment 1 2nd ed

Detailed table of contents

Chapter 1 Introduction 1-1

1.1 Purpose of this manual 1-2

1.2 Overview of Land Transport New Zealand 1-4

1.3 The National Land Transport Account 1-5

1.4 National Land Transport Programme agreements 1-8

1.5 Schedule of key dates 1-9

1.6 Definition of terms 1-10

Chapter 2 Work category definitions 2-1

2.1 Work category/activity structure 2-2

2.2 Activity classes 1 and 2 – Roading maintenance 2-6

2.3 Activity classes 3, 4 and 7 – Improvement and replacement of roads 2-24

2.5 Activity class 6 – Passenger transport 2-44

2.6 Activity class 8 – Walking and cycling 2-52

2.7 Activity class 10 – Administration and project control 2-56

Chapter 3 Programme development procedures 3-1

3.1 Requirements of the Land Transport Management Act 3-2

3.2 Programme preparation requirements for approved organisations 3-13

Chapter 4 Programme review procedures 4-1

4.1 Monthly programme reviews 4-2

4.2 End-of-year reconciliation 4-14

Chapter 5 Reporting requirements 5-1

5.1 Achievement reports 5-2

5.2 Annual property purchase reports 5-25

Land Transport NZ’s Programme and funding manual Amendment 1 2nd ed

Detailed table of contents, continued

Chapter 6 Procurement procedures 6-1

6.1 Payments exempt from procurement procedures 6-2

6.2 Business units 6-3

6.3 Minor and ancillary works 6-4

6.4 In-house professional services 6-8

Chapter 7 Funding policy for road controlling authorities 7-1

7.1 Policy overview 7-2

7.2 Financial assistance policy for local roads 7-7

7.3 Emergency work policy 7-21

7.4 Specific determinations 7-30

Chapter 8 Funding policy for regional authorities 8-1

8.1 Financial assistance policy for regional authorities 8-2

8.2 Specific determinations 8-13

Appendix A Consultation and communication process A-1

Land Transport NZ’s Programme and funding manual Amendment 1 2nd ed

• the manual’s purpose

• terms used in this manual.

1.1 Purpose of this manual 1-2

1.2 Overview of Land Transport New Zealand 1-4

1.3 The National Land Transport Account 1-5

1.4 National Land Transport Programme agreements 1-8

1.5 Schedule of key dates 1-9

1.6 Definition of terms 1-10

Land Transport NZ’s Programme and funding manual Amendment 1 2nd ed