Addendum Agenda of Finance and Performance Committee

Finance and Performance Committee

21 May 2015

Accelerated Transport Programme

File No.: CP2015/08812

Purpose

1. To provide an overview of the Accelerated Transport Programme to be included in the Long-term Plan 2015-2025 (LTP).

Executive Summary

2. On 7 May 2015, the Budget Committee approved $523 million of additional transport capital expenditure over the first three years of the LTP.

3. Auckland Council is funding $308 million of the additional $523 million capital expenditure, with the New Zealand Transport Agency (NZTA) funding approximately $185 million and around $30 million from the Urban Cycleway Fund.

4. Capital expenditure for the Residential Growth Fund and Drury South was also approved. Over the three years this provides a further $152 million and is funded predominately out of development contributions.

5. On 7 May, the Budget Committee also resolved that the Chief Executives of Auckland Council and Auckland Transport review the Transport Programme in view of the feedback received during the consultation process and report back to the Finance and Performance Committee. This report outlines the Accelerated Transport Programme and how this reflects the feedback received during LTP consultation.

6. In determining the Accelerated Transport Programme projects, which includes the additional budget, Auckland Transport has continued to use the prioritisation model presented to council last year. This is to ensure, that at any given level of capital funding, the projects with the highest benefits are included.

7. Aucklanders expressed a strong preference for more spend on public transport and active modes. This has been reflected in the Accelerated Transport Programme with public transport and walking and cycling significantly increasing from the expenditure proposed in the Basic Transport Network.

8. The table below summarises the increases from the Basic Transport Network over the first three years, with the full project list included as Attachment B.

Area of capital expenditure ($ million)	Basic Transport Network	Accelerated Transport Programme	Increase / (decrease)
Public transport	$43	$213	$170
Walking and cycling	$14	$124	$110
City Rail Link	$395	$395	$0
Major projects	$80	$128	$48
Roading	$107	$137	$30
Renewals and replacements	$612	$709	$97
Safety	$8	$69	$61
Other	$21	$21	$0
Seal extensions	$3	$10	$7
Local Board transport capital	$32	$32	$0
Local residential growth fund	$0	$108	$108
Drury South	$0	$44	$44
Total	$1,315	$1,990	$675

Recommendation/s

That the Finance and Performance Committee:

a) note the Accelerated Transport Programme and how it aligns to Long-term Plan 2015-2025 consultation feedback preferences for public transport and walking and cycling.

Comments

Background

9. A Basic Transport Network was included in the draft LTP for public consultation. To remain within the proposed rates increase, the Basic Transport Network provided for limited new investment in the first five years of the LTP.

10. The Auckland Plan Transport Network was also included in the LTP consultation. This larger capital programme included many more initiatives such as park ‘n rides and grade separation of rail level crossings to address growth and congestion across the city.

11. Following public consultation, there was clear support for a larger transport programme.

Prioritisation of the Accelerated Transport Programme

12. Prioritisation of the projects included as Attachment A, reflects the draft LTP programmes which were ranked using the prioritisation tool previously shared with council. The programmes also reflect co-investment decisions by NZTA. These need to be taken into account to maximise available co-investment funding and reflect their priorities. AMETI, East West Connections and urban cycleways are examples of NZTA priorities also reflected in the final programme. Further changes in priority may impact NZTA funding.

13. The final programme also strongly aligns with public consultation feedback - including that more focus needs to be given to public transport and walking and cycling.

LTP Feedback – areas of more and less focus

Accelerated Transport Programme summary

14. To a large extent, the Accelerated Transport Programme represents an acceleration of the previous programme, rather than a new, different programme. It has also allowed a greater investment in renewal of the rapidly growing asset base to avoid degradation over the next three years.

15. The additional investment in the first three years of the Accelerated Transport Programme:

i. Creates the ability to bring forward key strategic initiatives that under the Basic Transport Network had been deferred until after 2020, including:

· city centre bus improvements – essential to ensure increasing numbers of buses are able to circulate and terminate effectively in the city centre

· bus-bus and bus-rail interchanges at Otahuhu, Manukau and Te Atatu – essential items for the rollout of the PT New Network

· Te Atatu Road corridor improvements – brought forward to align with completion of NZTA’s Western Ring Route project

· local road improvements in Flat Bush - brought forward to align with development in this Special Housing Area.

ii. Allows for additional projects that were not in the Basic Transport Network, including:

· Pukekohe interchange (and park ‘n ride) – critical for the successful rollout of the New Network in the area

· park ‘n rides at Papakura, Westgate and Silverdale

· double decker bus enabling works

· Tamaki Drive & Ngapipi intersection improvements

· Newmarket Level Crossing.

iii. Allows additional funding to be directed to high priority programmes including:

· increasing the budget for rural road seal extensions to $3.3 million per annum in the first three years where additional funding is being provided

· enhanced spend on renewals – ensuring no transport assets fall into very poor condition

· additional investment in transport safety programmes

· delivering the Auckland Cycle Network – which has had significant funding increases in both the first three years and across the ten year period

· public transport improvement programmes (bus lanes; bus stop; minor improvements at ferry terminals and rail stations; provision of public transport (PT) information and signage; and PT safety, security and amenity improvements) - which has had funding increases in both the first three years and across the ten year period.

16. The capacity created by re-scoping and/or bringing forward some projects allows for the following initiatives to be incorporated into years four to ten of the LTP:

· North Western Busway - early works and/or route protection

· safety improvements to some rail crossings (although note that funding is insufficient to deliver grade separated solutions)

· increased funding for regional public transport programmes

· increased funding for the Walking and Cycling programme

· increased funding for Network Operating Plan and Route Optimisation works

· funding for further South-West Multi-modal Airport Rapid Transit route protection

· investment in Intelligent Transport Systems

· investment in PT technology initiatives.

Accelerated Transport Programme benefits and alignment with consultation feedback

17. The following tables summarise the benefits arising from the three year Accelerated Transport Programme, and how the final programme aligns with the feedback received through consultation.

Public Transport Infrastructure

What gets delivered under the Accelerated Transport Programme

The following items, deferred beyond 2020 or not funded at all under the Basic Transport Network (BTN), are included within the Accelerated Transport Programme’s first three years:

· 45 additional kilometres of bus lanes (including the Airport route, Ellerslie-Panmure Hwy, Pakuranga Rd, Ti Rakau Drive, parts of Great South Rd and Great North Rd, Greenlane West, Mt Eden Rd, Manukau Rd and Remuera Rd)

· double deckers enabled on 42 kiliometres of the frequent bus network

· essential New Network infrastructure completed – interchanges at Otahuhu, Manukau, Te Atatu, Pukekohe and Silverdale

· park ‘n ride extensions at Silverdale and Pukekohe, replacement facilities at Glen Eden and Hobsonville

· 600 new and upgraded bus stops

· $5.7 million invested in PT safety and security improvements (fencing, gating, CCTV etc.).

Outcomes from additional Accelerated Transport Programme investment

· Faster PT and bus priority measures:

o increase PT boardings by 1.6 million per annum by 2018

o produce substantial travel time savings for existing and new users.

· Successful rollout of the integrated PT New Network – reducing duplication and increasing frequency across the network.

· Network efficiency and cost recovery improvements – from increased demand and peak vehicle savings due to faster and more reliable services.

· Increased capacity from double deckers reduces overcrowding and allows for patronage growth in high demand corridors.

· Improved safety and security from ongoing investment in CCTV and minor safety and security projects.

Alignment with consultation feedback

Increased investment improving public transport was one of the key themes from public consultation. The proposed Accelerated Transport Programme increases public transport investment, in both the first three years, and across the ten year period.

City Rail Link and other rail improvements

What gets delivered under the Accelerated Transport Programme

City Rail Link is included within the BTN, Auckland Plan Transport Network (APTN) and Accelerated Transport Programme – however its effectiveness is limited due to a lack of funding to facilitate other network improvements (including additional EMUs to support increased frequencies, station upgrades, park ‘n ride enhancements, rail crossing separations).

The Accelerated Transport Programme incorporates the following, none of which were provided for under the BTN:

· Newmarket Level Crossing (Sarawia Street) eliminated by 2017

· $26 million from 2020 to facilitate improvements to other rail level crossings

· funding throughout LTP period for PT safety, security and amenity improvements (to be spread across the bus, rail and ferry networks).

Outcomes from additional Accelerated Transport Programme investment

· Improved safety at rail level crossings and elsewhere on the network.

· Removal of the Sarawia Street level crossing will help improve network reliability and performance.

Alignment with consultation feedback

Walking and Cycling

What gets delivered under the Accelerated Transport Programme

The following items, deferred beyond 2020 or not funded at all under the BTN, are included within the Accelerated Transport Programme’s first three years:

· 52.4 kilometres of the Auckland Cycle Network

· a $3 million contribution towards local board walking and cycling initiatives (including greenways)

· $5 million for new footpaths around the region.

Outcomes from additional Accelerated Transport Programme investment

The proposed investment from 2015-18 will deliver:

· 2.5 million new cycle journeys per year once the new City Centre network is complete – with estimated societal savings of $480 million

· $40 million of safety benefits

· $380 million in health and environmental benefits.

Alignment with consultation feedback

Increasing investment in walking and cycling infrastructure was one of the key themes from public consultation. The proposed Accelerated Transport Programme increases walking and cycling investment, in both the first three years, and across the ten year period.

Facilitating regional growth

What gets delivered under the Accelerated Transport Programme

· NORSGA, Flat Bush and Long Bay Glenvar Ridge Road projects from the BTN delivered by 2019.

· A Growth Infrastructure Fund is established to provide dedicated funding to support pre-existing regional growth locations and the successful delivery of Special Housing Areas.

Outcomes from additional Accelerated Transport Programme investment

· Special Housing Areas and pre-existing growth areas are supported.

· Targeted transport funding available to ensure Housing Accord targets are met and that key growth locations are supported.

Accelerated Transport Programme alignment with consultation feedback

Establishment of the Local Residential Growth Fund aligns with the following recommendation from consultation:

Consider setting aside funding for new roading projects which are necessary due to growth pressures.

Regional arterial and other roading improvements

What gets delivered under the Accelerated Transport Programme

· The Accelerated Transport Programme first three years focuses on:

o committed projects (Albany Highway Upgrade),

o initiatives that integrate and optimise State Highway and other recent investments (e.g. Te Atatu Corridor delivered by 2017 to support the Western Ring Route)

o route optimisation / network operating plan initiatives including 30 minor network efficiency improvements by 2018 and implementation of other efficiency interventions such as dynamic traffic lanes.

Outcomes from additional Accelerated Transport Programme investment

· Reduced congestion and improved efficiency in moving people and goods on the roading network.

Accelerated Transport Programme alignment with consultation feedback

Regional arterial improvements were often supported by benefitting local communities, local boards, freight and other road user organisations, but opposed by other groups who sought a greater priority for public transport and walking and cycling improvements and a lower priority for roading improvements.

Road safety initiatives

What gets delivered under the Accelerated Transport Programme

· Annually over the 2015/2016 to 2017/2018 period: 106 minor improvement projects, three high-risk intersection or high-risk road improvements, 30 fatal crash investigations, 35 speed management projects, 8 crash reduction studies and 18 Safer Communities school projects.

Outcomes from additional Accelerated Transport Programme investment

· An annual 2.6% reduction in local road Deaths and Serious Injuries (DSI) for the three year 2015-18 period, providing the progress necessary to achieve both the Auckland Plan 2020 (410 DSI) and 2014/2017 Statement of Intent local road safety targets.

· Safer Communities schools initiative will contribute to increased safe walking and cycling trips in high-risk urban central and south schools, helping to achieve the 2014/2017 Statement of Intent walking & cycling target.

· Statutory obligations for fatal crash investigations will be met. Customer and Police safety requests will also be met.

· Speed management changes will meet existing requirements and new national speed management regulations introduced from 2018/2019 onwards.

Accelerated Transport Programme alignment with consultation feedback

The reduced spend on safety programmes outlined in the BTN unnerved many public consultation submitters. The Accelerated Transport Programme provides funding in all LTP years to deliver safety initiatives across the region.

Major Projects – AMETI and East West Connections

What gets delivered under the Accelerated Transport Programme

Both of these initiatives are included within the BTN and Accelerated Transport Programme, however under the BTN both projects are essentially paused until after 2020.

Outcomes from additional Accelerated Transport Programme investment

AMETI

· Momentum continued through 2015-2018 period, with Panmure roundabout replaced with signals and the Panmure-Pakuranga busway commenced. This brings forward the achievement of AMETI benefits from the timeline outlined in the BTN.

· Budget provision in 2015/2016 is particularly low relative to current AMETI investment levels and the corresponding APTN amount – but reflects Accelerated Transport Programme budget constraints in that year and other pressures on the available funds.

East West Connections

· $1.5 million per annum allows East West Connections investigation, design and potentially some small improvements across the 2015/2016 to 2018/2019 period. Construction scheduled in the 2021/2022 to 2023/2024 period.

· Budget provision across 2015/2016 to 2019/2020 period is low relative to the APTN – and effectively means that the local roading, public transport and walking and cycling benefits from this project are not delivered until after 2020.

Accelerated Transport Programme alignment with consultation feedback

· Continued implementation of AMETI was supported through public consultation feedback.

· East West Connections received support from freight, ports, business, neighbouring regional government, relevant local boards, and farmer representatives, but was not supported by some other organisations (including Generation Zero and the Transport Blog) who believed that this project should be a Central Government initiative.

Renewals and Replacements

What gets delivered under the Accelerated Transport Programme

BTN first three years = $612 million

Accelerated Transport Programme first three years = $709 million

Outcomes from additional Accelerated Transport Programme investment

Full funding of the optimum renewals programme over the 2015/2016 - 2017/2018 period. As a result by June 2018, 80% of transport assets will be in good / very good condition, with no assets in very poor condition. Under the BTN, only 75% of assets would be good/very good condition and 4% in very poor condition by June 2018.

Beyond 2018, the transport renewals optimisation model forecasts significant increases in renewal requirements which are not fundable under the Accelerated Transport Programme’s capex envelope.

Alignment with consultation feedback

There were submitters who were concerned that renewal of existing assets needed to remain a priority.

Consideration

Local Board views and implications

18. A number of items of high priority to Local Boards have been introduced into the three year Accelerated Transport Programme. These include Te Atatu Road, bus/ rail interchanges in the South, Pukekohe Station improvements and associated interchange and additional rural road resealing.

Māori impact statement

19. Consultation with Māori has been undertaken as part of the LTP.

Implementation

20. There are no impediments to the timely implementation of the proposed programme. The likely alignment with the Government’s Regional Land Transport Plan will allow funding for Transport Agency co-investment to begin immediately.

Attachments

No.	Title	Page
a View	Transport Capex Programme Comparisons - APTN, BTN and ATP	13
b View	Accelerated Transport Programme capital list	17

Signatories

Authors

Robert Irvine - Financial Planning Manager CCOs

Authorisers

Matthew Walker - General Manager Financial Plan Policy & Budgeting

Sue Tindal - Chief Financial Officer

Finance and Performance Committee

21 May 2015

Independent Māori Statutory Board - Proposed funding agreement for the 2015/2016 financial year.

File No.: CP2015/08815

Purpose

1. To recommend the funding agreement for the Independent Māori Statutory Board (IMSB) for the 2015/2016 financial year.

Executive Summary

2. Auckland Council and the IMSB are required by statute to negotiate in good faith to “make a funding agreement on the amount of money and the level of servicing that the council is to provide to the board”.

3. Negotiations between council’s chief executive and the IMSB have resulted in a proposed funding agreement for 2015/2016 within the budgets contained in the 2015-2025 Long-term Plan. The recommended total direct funding for IMSB for 2015/2016 is $2,829,500 and is within the parameters agreed between the chief executive and the political working party established to oversee the negotiations.

4. This report recommends that the committee endorse the recommended funding agreement and agree that variations to the funding agreement, of no more than $50,000 in the financial year and subject to budget being available, can be agreed between the chief executive of the IMSB and the chief executive of Auckland Council.

Recommendations

That the Finance and Performance Committee:

a) Approve the recommended Independent Māori Statutory Board funding agreement for the 2015/2016 financial year.

b) Note that following adoption of the recommended funding agreement by the Governing Body the Independent Māori Statutory Board funding agreements for 2015/2016 will be prepared for signing by the mayor and council’s chief executive and the Independent Māori Statutory Board chair and chief executive.

c) Agree that variations to this funding agreement of no more than $50,000 in the financial year can be agreed between the chief executive of the Auckland Council and the chief executive of the Independent Māori Statutory Board, subject to budget being available to cover the variation.

Comments

Key components of the recommended funding envelope for 2015/16

5. Total direct funding for IMSB for 2015/2016 is $2,829,500.

6. The funding agreement includes provision for IMSB to monitor the development and implementation of council’s Māori economic wellbeing strategy (one of five programmes of action under the Māori Responsiveness High Performance Council/Te Toa Takitini framework) and scope the possible establishment of Māori Economic Development Taskforce or IMSB committee.

7. The funding agreement includes provision for IMSB to engage specialist Māori expertise to assist council to progress certain key projects. The intention is to utilise this funding where council does not have the necessary in-house expertise.

8. The funding agreement shows a decrease in funding for the Treaty Audit process for the next two years. This is consistent with IMSB’s agreed programme for undertaking the Treaty Audit every three years.

9. A high level comparison with the 2014/2015 funding agreement is as follows:

	2014/2015	2015/2016
Direct funding to IMSB	$2,710,000	$2,829,500
Capex (carried over from 2013/2014)	$50,000	-
Total	$2,760,000	$2,829,500

Other components of the recommended funding agreement for 2015/2016

10. In addition to the direct funding, $131,500 will be held within council’s budget, with an agreed sign-off process between council and IMSB for that expenditure to ensure that there is no duplication of effort between the council and the IMSB. This compares with $220,000 for 2014/2015.

11. The following council departments provide support services to IMSB:

· People and Capability; Information Services; Finance; Accounting; Procurement; Treasury; Property; Copy Centre/Mailroom; Records Management; Customer Services; Democracy Services; Risk Management; Legal.

12. These support services will be listed in the funding agreement and are covered by a separate service level agreement. There are no actual payments from IMSB to council for the services and overheads are allocated through the annual plan process.

Variations to the agreement

13. The board or the council may initiate a review of the funding agreement by giving a written or electronic notice to the other party stating the terms of the review [Auckland Council Act 2009, Schedule 20, clause 2].

14. This report proposes that variations to the funding agreement of no more than $50,000 in the financial year can be agreed between the chief executive of the Auckland Council and the chief executive of the Independent Māori Statutory Board, subject to funding being available, without the need to formally negotiate an amendment to the agreement as envisaged by the Act.

Consideration

Local board views and implications

15. Local boards have not been consulted as this has been a process of negotiation between the Governing Body and the Independent Māori Statutory Board. However, the work resulting from the Independent Māori Statutory Board work programme and related council work programmes involve local boards.

Māori impact statement

16. The funding agreement supports the Independent Māori Statutory Board to give effect to its statutory purpose of promoting cultural, economic, environmental, and social issues of significance for Māori in Tāmaki Makaurau; and ensuring that the council acts in accordance with statutory provisions referring to the Treaty of Waitangi.

Implementation

17. Following adoption of the recommended funding envelope by the Governing Body and the Independent Māori Statutory Board funding agreements will be prepared for signing by the mayor and council’s chief executive and the Independent Māori Statutory Board chair and chief executive.

Attachments

No.	Title	Page
a View	Appendix A Statutory provisions relating to IMSB funding agreement	23

Signatories

Authors

Deborah James - Executive Officer

Authorisers

Grant Taylor - Governance Director

Sue Tindal - Chief Financial Officer

Stephen Town - Chief Executive

Chairperson	Cr Penny Webster
Deputy Chairperson	Cr Ross Clow
Members	Cr Anae Arthur Anae	Cr Calum Penrose
	Cr Cameron Brewer	Cr Dick Quax
	Mayor Len Brown, JP	Cr Sharon Stewart, QSM
	Cr Dr Cathy Casey	Member David Taipari
	Cr Bill Cashmore	Member John Tamihere
	Cr Linda Cooper, JP	Cr Sir John Walker, KNZM, CBE
	Cr Chris Darby	Cr Wayne Walker
	Cr Alf Filipaina	Cr John Watson
	Cr Hon Christine Fletcher, QSO	Cr George Wood, CNZM
	Deputy Mayor Penny Hulse
	Cr Denise Krum
	Cr Mike Lee