From:
s9(2)(a)
To:
s9(2)(a)
Cc:
Subject:
Wellington Regional Transport Economic Case Workshop 2
Date:
Tuesday, 3 May 2016 4:19:21 p.m.
Attachments:
image001.png
Agenda 4 May 2016 - Wellington Regional Transport Economic Case Workshop 2.docx
Final Presentation 4 May 2016 to Economic Case Workshop 2.pptx
Wellington Transport 4 May 2016 - Options Short List Table Workshop 2.docx
THE ACT
Hi everyone,
Just wanting to draw to your attention the change in venue for tomorrow night is now:
Expressions Arts and Entertainment Centre,
836 Fergusson Drive,
Upper Hutt
UNDER
(next door to Council Buildings)
We look forward to seeing you there.
Many thanks
Kind regards
s9(2)(a)
INFORMATION
Ms s9(2)(a)
| Executive Assistant to CEO & Business Support Team Leader | Local Government
Commission | DDI s9(2)(a) | Ext
RELEASED s9(2)(a)
The Department of Internal Affairs Te Tari Taiwhenua
46 Waring Taylor Street | PO Box 1568, Wellington 6140, New Zealand | www.dia.govt.nz
DIAlogo
From: s9(2)(a)
OFFICIAL
Sent: Tuesday, 3 May 2016 4:02 p.m.
To:
s9(2)(a)

Cc:
Subject: Papers for tomorrow's Wellington Regional Transport Economic Case Workshop 2

Dear workshop participants

Attached is the agenda for tomorrow evening’s workshop along with the presentation and A3
detailing the potential options.

The presentation sets out the process that will be followed in the workshop. You may like to
think about how you would rate the options (in terms of the Investment Objectives, and Critical
Success Factors discussed last week) before we meet tomorrow.

THE ACT
We will be providing a light meal at 6pm, with the workshop starting at 6.30pm.

We look forward to meeting with you tomorrow.

Kind regards,

s9(2)(a)

s9(2)(a)
| Senior Advisor| Local Government Commission
s9(2)(a)
s9(2)(a)
UNDER
Local Government Commission
DDI
| Extn
147 Lambton Quay| PO Box 5362, Wellington 6140, New Zealand | www.lgc.govt.nz

INFORMATION
RELEASED
OFFICIAL

AGENDA
Wellington Regional Transport Business Case
Economic Case Workshop 2

THE ACT
6.00pm to 8.30pm
Expressions Arts and Entertainment Centre
836 Fergusson Drive, Upper Hutt
4 May 2016

6.00 pm
Light dinner
6.30 pm
Welcome and introductions
6.35 pm
Recap and update
UNDER
6.40 pm
Assessment process
6.45 pm
Assessment of options – group discussion and report back
8.05 pm
Implementation challenges
8.25 pm
Close
INFORMATION
RELEASED
OFFICIAL

THE ACT
WELLINGTON
REGIONAL
TRANSPORT
UNDER
Business Case
ECONOMIC CASE
INFORMATION
WORKSHOP 2
4 May 2016
RELEASED
OFFICIAL

CONTEXT

ACT
•
Local Government Commission and the Wellington Regional Mayoral Forum working to
THE
identify opportunities to improve the region’s transport governance and service.
•
A first report, Wellington Regional Transport: Options for Change (prepared by Castalia)
identifies problems with current arrangements and high level options for change.
•
MartinJenkins, Cranleigh and TDG have been commissioned by the Local Government
UNDER
Commission to evaluate local government transport model options using Better Business
Case methodology.
•
Business case will inform public and targeted engagement.
•
It will not identify a single preferred way forward.
INFORMATION

RELEASED

2
OFFICIAL

OBJECTIVES AND TASKS
THE ACT
To assess options to improve transport governance, planning and
service delivery in the region using the Better Business Case
Framework
Last week:
UNDER
• Discussed short list options
• Agreed assessment criteria
Following our discussion some amendments have been made
This week:
INFORMATION
• Agree assessment process
• Assess the options

RELEASED

3
OFFICIAL

AGENDA
Workshop 2: 4 May
THE ACT
1830
Welcome and introductions
1835
Recap and update
1840
Assessment process
1845
Assessment of options – group discussion and report back
UNDER
2005
Implementation challenges
2025
Close
INFORMATION
RELEASED
4
OFFICIAL

INVESTMENT OBJECTIVES
•
The immediate objectives of any change
THE ACT
1.  Improve alignment and
2.  Build capability
integration
Between:
To manage transport planning and service
•
programming and regional priorities
delivery – both locally and regionally

UNDER
•
programming and delivery
•
across
•
local roads and state highways
•
roads and public transport
•
local and regional objectives
•
transport and land use planning
INFORMATION

Very important
Very important
RELEASED
5
OFFICIAL

CRITICAL SUCCESS FACTORS
• Other key factors to assess
THE ACT
1. Local and regional voice
very important
• Is sufficient and appropriate say given to local communities?
2. Effective governance
very important
• Will governance arrangements be effective?
UNDER
3. Achievability
important
• Realistically, can we get the agreement needed across the region?
• If any legislative change is required, is it plausibly forthcoming?
• Are there any hurdles to implementation eg costs, disruption of other
INFORMATION
processes?
• Are there significant risks?
4. Long term value for money
important
RELEASED
• Will decision making ensure we get value over the longer term (taking
into account economic, social and environmental dimensions)?
6
OFFICIAL

SUMMARY OF OPTIONS
Options C and D could potentially be combined (and possibly include elements of B)
THE ACT
Option
Scope
Overview
A: Status Quo
Planning, technical
The present arrangements.
services, service delivery
B: Non-structural
Planning
A bundle of non-structural changes to planning and coordination to
measures to improve
improve alignment between transport activities. May require
alignment
legislative change outside scope of LGC.
C: Pooled Planning
Technical services
Planning, management, and related information functions and
UNDER
Support and Traffic
analytical capabilities pooled under a shared service arrangement
Management Functions
(or small CCO). Covers public transport and local roads.
and Capabilities
D: Wellington Roads,
Service delivery
CCO pools roading capability to develop, maintain and operate
Paths and Cycleways
roads, paths and cycleways. Existing planning arrangements
remain. Public transport stays with GWRC. SH could optionally be
included or excluded.
INFORMATION
E: Wellington Transport
Technical services
Single agency (a CCO) with responsibility for programming and
operations for all modes in the region (local roads, public transport,
Service delivery
walking and cycling). SH could optionally be included or excluded.
Planning
An analogue of Auckland Transport but existing RTC is retained.
Other modifications to take into account local context and lessons
RELEASED learned.

Refer to separate A3 for detailed descriptions.

7
OFFICIAL

DIMENSIONS OF CHANGE

How regi
onal consol idation ac
ross dim

ensions c

ontributes to investment objectives
THE ACT

1: Alignment and
integration
Planning
UNDER
Contribution to
Technical Services
investment
objective
Service Delivery
2: Capability
Difficulty of implementation
EASIER
HARDER
INFORMATION
RELEASED
8
OFFICIAL

ASSESSING THE OPTIONS
Group task – refer investment objectives and critical success factors on pages 5 & 6
THE ACT

Break into working groups

For each option
Consider against each of the assessment criteria and rate
•
‘Strongly meets criteria’
UNDER
•
‘Meets criteria’
•
‘Neutral’
•
‘Contrary to criteria’
• Note key advantages, disadvantages, risks, how to improve the option
and implementation challenges
• Where there are differing views
INFORMATION
•
Note the range of views
•
Identify factors driving the difference

RELEASED
Report back to plenary (briefly!)

9
OFFICIAL

ASSESSING THE OPTIONS - FORMAT
Group task – refer investment objectives and critical success factors on pages 5 & 6
THE ACT

Group X: Option Y:

IO1:   rating  - optional note
IO2:   rating  - optional note
CSF1:   rating   - optional note UNDER
CSF2:   rating  - optional note
CSF3:   rating  - optional note
CSF4:   rating  - optional note

Advantages:

note
INFORMATION
Disadvantages:

note
Risks:

note
How to improve this option:
note
RELEASED
Implementation chal enges:
note

10

OFFICIAL

NEXT STEPS
Further inputs:
THE ACT
• Additional interviews
• Continue engagement with councils
• Analysis of data provided

Draft business case:
20 May UNDER
Final business case:
8 July

INFORMATION

RELEASED

11
OFFICIAL

Wellington Regional Transport Business Case
Short List Options
Draft: 2 May 2016
Table 1:   Short-list of Options
Option dimension
A: Status Quo
B: Non-structural measures to improve
C: Pooled Planning Support and Traffic
D: Wellington Roads, Paths and
E: Wellington Transport
alignment
Management Functions and Capabilities
Cycleways
Overview
The present arrangements
A bundle of non-structural changes to
Planning, traffic and network management,
CCO pools roading capability to develop,
Single agency with responsibility for
improve alignment between transport
and related information functions and
maintain and operate roads, paths and
programming and operations for all modes
activities.
analytical capabilities pooled under a shared
cycleways. Existing planning arrangements
in the region.
Impacts on national frameworks and may
service arrangement.
remain.
An analogue of Auckland Transport but
require legislative change which may fall
Could potentially be combined with Option D
Focus on service delivery.
existing RTC is retained. Other
THE ACT
outside scope of LGC.
and elements of B.
Could potentially be combined with Option C
modifications to take into account local
Elements could potentially be combined with
and elements of B.
context and lessons learned.
Options C and D
Institutional form
Functions distributed amongst Regional
No change
As present plus shared service arrangement
As present, plus CCO owned by Territorial
Majority of Local Authority functions
Council, Territorial Authorities and NZTA
hosted by GWRC
Authorities
transferred to CCO owned by Regional
Optionally a small CCO
Council and Territorial Authorities
Optionally hosted by WCC
Ownership and voting rights
N/A
N/A
N/A
Territorial authorities with shareholding
GWRC: fixed percentage of shareholding to
based on population.
reflect public transport and regional planning
Majority voting with agreed extraordinary
role.
items reserved for 75% majority
Territorial authorities: balance of
shareholding split based on population.
UNDER
Majority voting with agreed extraordinary
items reserved for 75% majority
Options to split voting and non-voting
shares, with non-voting shares reflecting
capital contributions
Governance
Standard local government and land
Existing governance structures
Technical oversight committee appointed by
CCO governed by independent board of
CCO governed by independent board of
transport governance arrangements
a joint committee (or council forum).
professional directors and transport experts.
professional directors and transport experts.

Board appointments made by a joint
Board appointments made by a joint
committee (or council forum) with one
committee (or council forum) with one
member per Territorial Authority.
member per council, one NZTA member,
GWRC member, or optionally based on
INFORMATION
voting shares.
Governance: key accountability
RLTP
N/A
Service level agreement
Statement of Intent
Statement of intent
documents
Range of statutory and non-statutory local
RLTP
RLTP
planning documents
Local transport plans
Service level agreements
Scope: Networks/Modes
All networks and modes
All networks and modes
All networks and modes other than State
Local roads, arterial roads other than State
All networks and modes other than State
RELEASED
Public Transport
Highways
Highways, cycling/walkways
Highways
Public transport
Option to include State Highways
Public transport
Option to include State Highways
Scope: Geography
All of region
All of region
All of region
Region west of Rimutakas
All of region
Optionally sub-set of councils
Option to include Wairarapa depending on
Option to exclude exclude Wairarapa
outcome of Local Government Restructuring
roading
Option to include or exclude KCDC
OFFICIAL
Planning
RLTP plus range of local and regional plans
Enhanced regional land transport plan
RTC retains responsibility for RLTP
RTC retains responsibility for RLTP. WR
RLTP responsibility of existing RTC
and strategies
requirements and process including some of
RLTP includes further detail on
provides input.
Wellington Transport has responsibility for
the following:
programming and sequencing including
TAs keep responsibilities for planning
Regional Public Transport Plan.
•  Including a statutory requirement in
centrally identified projects.
activities and participating in regional
Mechanisms to engage Wellington
the Resource Management Act that
Technical advice for Territorial Authority
processes.
Transport in other planning exercises (e.g.
Councils have regard to the RLTP
level Planning provided by shared
economic development).
•  Require that approved organisations
service arrangement)
state how their activities give effect to
the RLTP

1

25 May 2017 2.41 p.m.
DRAFT. Commercial In Confidence

Option dimension
A: Status Quo
B: Non-structural measures to improve
C: Pooled Planning Support and Traffic
D: Wellington Roads, Paths and
E: Wellington Transport
alignment
Management Functions and Capabilities
Cycleways
•  Include specific programme
identification as part of the RLTP
•  More clearly connect the RLTP to
other plans (eg Annual Plans and
Regional plan and programming to have
reference to regional spatial plan if
available
Funding
Rates, NLTF, service fees (eg fares)
No change to existing arrangements
Funding covers planning, data and
Funding covers roading, paths and
Funding covers a spectrum of planning,
information etc, but no operations/service
cycleway services
programming, and operations.
delivery.
Budget agreed by shareholders
Budget agreed by shareholders
Funding formula based on size metrics (e.g.
Fee for service model paid by Territorial
Contributions by local councils uses funding
rating base, transport activity)
Authorities (plus NLTF funding as available)
formula based on size metrics (e.g. rating
Commitment by councils to use new entity
base, transport activity), or a targeted rate.
ACT
exclusively for all services it was established
Optionally fee for service model, with some
THE
to provide.
cost sharing of regionally important projects
Roles and functions
All land transport functions
All land transport functions
Planning support for RLTP
All functions related to the development and
Programme identification and advice on
(see also table below)
Option to include greater use of
Programme identification and advice on
management of roads, paths and cycleways
programming priorities and sequencing
mechanisms to coordinate programming
programming priorities and sequencing
including
activities for RLTP
and delivery between certain agencies, eg
activities for RLTP
•  Asset management
Development and management of roads,
an overarching GWRC/WCC/NZTA joint
Specialist advice to TAs on specific planning   •  Procurement
paths and cycleways.
committee to integrate decision-making.
Shared data analytics and modelling
Possibly including:
Public transport
functions.
•  Standard setting
Road safety
Travel demand management function
•
Sustainable behaviour change
  Traffic control operations
•  Data analytics and modelling
•  Travel demand management
UNDER
Road controlling authority
All powers vested in TAs
No change
Delegated some road controlling authority
Delegate the relevant road controlling
Delegated most or all road controlling
powers
powers
authority powers of the shareholding
authority powers of the shareholding
territorial authorities.
territorial authorities
Asset ownership
Assets owned by local authorities and NZTA
No change
May be transfer of assets related to specific
May be transfer of assets related to specific
May be transfer of assets related to specific
technical capabilities to GWRC.
technical capabilities to CCO.
technical capabilities to CCO.
Infrastructure still owned by local authorities
Infrastructure still owned by local authorities
Infrastructure and management assets
potentially transferred to Wellington
Transport.
Implementation strategy
N/A
Changes implemented as developed, with
Phased change by function
Majority of changes in a single step on
Majority of changes in a single step on
some bundling
formation of CCO
formation of CCO
INFORMATION
Option to start with City Councils and bring
in KCDC and Wairarapa Councils later as
phased approach.
Option for a more phased approach
regarding functions
Key transactions to establish
N/A
•  PMG appointed by TLAs to develop
•  TLAs PMG agree key terms
•  TLAs PMG agree key terms
•  TLAs PMG agree key terms
and implement improved processes.
•  TLAs vote then public consultation if
•  TLAs vote then public consultation
•  TLAs vote then public consultation
RELEASED
•  Report backs to councils with
required
•  TLAs vote to proceed
•  TLAs vote to proceed
approvals as required by scope.
•  TLAs vote to proceed
•  Jnt Committee or forum established
•  Jnt Committee or forum established
•  Detailed planning
•  CCO entity and board formed
•  CCO entity and board formed
•  Unit established in GWRC or one of
•  LTAs provide establishment funding
•  LTAs provide establishment funding
LTAs
•  SLA agreed with each TLA
•  SLA agreed with each TLA
•  Advisory established board if desired
•  IP, staff and related assets (not
•  Novation of PT contracts into CCO
•  SLA agreed with each TLA
roads) sold to CCO in exchange for
•  IP, staff and related assets (not
•  IP, staff and related assets (not
loans and shares
OFFICIAL
roads) sold to CCO in exchange for
roads) sold or lease to lead TLA.
loans and shares
`

2

DRAFT. Commercial In Confidence
25 May 2017 2.41 p.m.

Table 2: Allocation of Functions
Function
A: Status Quo
B: Non-structural measures to improve
C: Pooled Planning Support and Traffic
D: Wellington Roads, Paths and
E: Wellington Transport
alignment
Management Functions and Capabilities
Cycleways
Land transport planning

Preparation of RLTP
RTC
RTC
RTC
RTC
RTC
Local transport and asset
TAs
TAs
TAs
TAs
WT
management planning
Modelling
GWRC and TAs
GWRC and TAs
Shared services hosted by GWRC
GWRC and TAs
WT
Public transport*
GWRC
GWRC
GWRC
GWRC
WT
THE ACT
Safer roads

Project management
TAs and NZTA
TAs and NZTA
TAs and NZTA
WR and NZTA
WT and NZTA
Contractor/consultant
TAs and NZTA
TAs and NZTA
TAs and NZTA
WR and NZTA
WT and NZTA
procurement and management
Communications
TAs and NZTA
TAs and NZTA
TAs and NZTA
WR and NZTA
WR and NZTA,
Manage parking, and enforce
TAs
TAs
TAs
WRs or TAs
WT
traffic regs
Manage traffic
NZTA and TAs
NZTA and TAs
Shared services hosted by GWRC
NZTA and WR
NZTA and WT
UNDER
Improve environment for cycling
GWRC and TAs
GWRC and TAs
GWRC and TAs
GWRC and WR or TAs
WT
and walking.
Delegated regulatory functions
TAs and NZTA
No
No
TAs remain road controlling authority but
TAs remain road controlling authority but
(eg oversize vehicles, permissions
delegate some functions
delegate some functions
and approvals, road stopping,
road enchroachment)
Sustainable behaviour change

Carry out market research,
GWRC and TAs
GWRC and TAs
Shared services hosted by GWRC
GWRC and TAs
WT
INFORMATION
including customer surveys.
Optional additional research by TAs
Option to delegate to WR
Plan and co-ordinate transport
GWRC and TAs
GWRC and TAs
Shared services hosted by GWRC
GWRC and TAs
WT
safety activities.
Educate adults and children about
GWRC and TAs
GWRC and TAs
Shared services hosted by GWRC
GWRC and TAs
WT
road safety.
RELEASED
Develop school, community and
GWRC and TAs
GWRC and TAs
Shared services hosted by GWRC
TAs
WT
workplace travel plans to
encourage more people to catch
Optional additional activities by TAs
the train, bus, ferry or walk, cycle,
carpool.

* Public transport includes:
•
Identify and contract public transport services (bus, train, ferry)
•
Monitor and review public transport services
OFFICIAL
•
Provide information about public transport services
•
Develop bus and train stations and interchanges
•
Develop and maintain bus shelters and bus stops
•
Manage contracts and services for school buses
•
Fund concession fares and mobility services
•
Fund the total mobility service and other initiatives to help people with disabilities

3

25 May 2017 2.41 p.m.
DRAFT. Commercial In Confidence

Document Outline