Decision Required Report To: Tasman Regional Transport Committee
Meeting Date: 22 June 2020
Report Author: Drew Bryant, Activity Planning Advisor - Engineering Services Report Number: RTRTC20-06-3
1 Summary
1.1 The Council are working on two new activities that will require inclusion in the Regional Land Transport Plan (RLTP) to be eligible for funding from the National Land Transport Fund (NLTF). They are:
development of a transport Programme Business Case for the entire Richmond township (Richmond Transport Programme Business Case); and
a connection across Borck Creek along Berryfield Drive in Richmond West (Berryfield Drive Connection).
1.2 Waka Kotahi (NZ Transport Agency) will fund the majority of the Richmond Transport
Programme Business Case with Council contributing $60,000. The full cost is not yet known but it is estimated that the strategic case could cost $100,000 and the programme business case could cost around $300,000.
1.3 The connection across Borck Creek along Berryfield Drive is likely to exceed $1 million.
Therefore, Council has to undertake a business case to secure funding for construction.
Council’s preferred option is estimated to cost $1.9 million of which $0.65 million will be funded by a third party. Council will undertake a simplified single stage business case (lite).
Funding for the construction is part of a separate report to Full Council on 25 June 2020.
1.4 It is recommended that Regional Transport Committee (RTC) recommend to Full Council that these two activities are included in the RLTP.
2 Draft Resolution
That the Tasman Regional Transport Committee:
1. receives the Amendments to the Regional Land Transport Plan RTRTC20-06-3;
and
2. recommends to the Full Council that the Richmond Transport Programme Business Case activity be included in the Regional Land Transport Plan; and 3. recommends to the Full Council that the Berryfield Drive Connection activity be
included in the Regional Land Transport Plan.
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3 Purpose of the Report
3.1 Seek approval to vary the Regional Land Transport Plan (RLTP) to include:
Richmond Transport Programme Business Case; and
Berryfield Drive Connection.
4 Background and Discussion
4.1 The existing RLTP (Connecting the top of the South, Tasman Regional Land Transport Plan 2015-2021) was reviewed and updated in 2018. The review included taking central
government priorities into account as well as making the RLTP follow a strategic case framework.
4.2 The RLTP included a number of new projects that took into account growth that was forecast by Statistics New Zealand. However the actual growth being experienced is faster than was previously forecast. As a consequence the number and the timing of some projects around Richmond have been brought forward by resolution of Full Council.
4.3 The Tasman Regional Transport Committee (RTC) must vary the RLTP for the changes to these activities to be eligible for funding from Waka Kotahi (NZTA) through the National Land Transport Fund (NLTF).
Richmond Programme Business Case
4.4 During the development of the Richmond Network Operating Framework (NOF), traffic modelling identified that Richmond would have increased traffic congestion in 10 years and significantly increased congestion in 30 years if no additional interventions were undertaken.
4.5 Waka Kotahi and Tasman District Council (TDC) staff initiated a Programme Business Case (PBC) to identify solutions to address the Richmond traffic issues. Waka Kotahi Delegations Board agreed to funding the Programme Business Case with a modest financial contribution from Tasman District Council.
4.6 The PBC has been split into two stages. The first stage is the strategic case which will identify the issues, benefits and evidence to support the problem statements. The approved budget for this stage is $100,000. The second stage of the PBC is identification of options, analysing the options and consultation with the public. The budget for this stage hasn’t been confirmed, but it is expected to be around $300,000. TDC has committed to contributing
$60,000 to the entire process and will fund out of existing budgets for consultancy services.
4.7 Waka Kotahi and Tasman District Council will partner in this process with Nelson City Council being a key stakeholder. Waka Kotahi will manage the project.
4.8 The RLTP will need to be varied to include the Richmond Transport Programme Business Case in the 2019/20 ($100,000) and 2020/21 ($300,000) financial years.
Berryfield Drive Connection
4.9 Council included a project in the 2018 Long Term Plan (LTP) (and RLTP) to create a road crossing of Borck Creek to connect Berryfield Drive. At the time the pace and the extent of the development in Richmond West was uncertain. The crossing that the budget was based on was a ford. The cost to create the ford was assessed at $784,592 and the project was
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included in the ‘Low Cost, Low Risk’ work category for 2024/25 (four years from now). In 2019, the Council resolved to reschedule this activity to 2021/22 financial year.4.10 Since the scope and budget for the 2018 LTP was set, the detail of the residential
development on the western side of Borck Creek has been confirmed. The development has occurred much faster than was anticipated, it includes a small commercial area and a potential school. Given the scale and the scope, a ford is no longer considered suitable and any solution will be required in the next two years.
4.11 Council staff yet again given the pace of growth recognized that the timing and scope of the crossing would need to be reviewed and have been workon on an alternative solution. The preferred solution (a bridge) has been assessed to cost $1.9 million. A project of this scale falls outside of the funding criteria for ‘Low Cost, Low Risk’ co-funding from Waka Kotahi and would need a business case to justify investment.
4.12 Council staff have worked with Waka Kotahi to determine how a business case could be undertaken for a low risk/low complexity project. Waka Kotahi have agreed to Council undertaking a single stage business case lite. This is a short business case document that can be completed by Council without the need for consultant assistance.
4.13 Council funding for the crossing will be subject to a resolution of Full Council on 25 June meeting for $1.25 million. The balance ($650,000) is expected to be funded by a third party.
4.14 The RLTP will need to be varied to move the Berryfield Drive Connection activity out of the Low Cost Low Risk programme in 2024/25 financial year to be a separate activity in 2020/21 financial year with a total budget of $1.9 million. The Council will be seeking funding
assistance from Waka Kotahi for the $1.25 million Council share.
5 Options
5.1 The Tasman Regional Transport Committee has two options for each activity:
a) Recommend to the Full Council to include each activity in the Regional Land Transport Plan; or
b) Decline to recommend to the Full Council include each activity in the Regional Land Transport Plan.
5.2 Staff recommend option (a) for both the Richmond Transport Programme Business Case and the Berryfield Drive Connection so that they can proceed and be eligible for NLTF funding.
6 Strategy and Risks
6.1 The Tasman RLTP has a problem statement regarding safety.
“Constraints on the transport network are leading to delays affecting freight, tourism, business and residential growth.”
6.2 The strategic response to this problem is:
“Target investment in projects that enable growth and improve travel time reliability on key journey routes.”
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“Target investment in regional route reliability and resilience improvement to key journey routes.”
“Investment in infrastructure and education programmes targeted at providing and promoting transport choice.”
6.3 The business case needs to progress to understand what the specific issues they will be addressing are, however, some of the key desired outcomes are around:
freight connections;
community access; and
mode shift.
6.4 Given the strategic responses and the desired outcomes, recommending the activities for approval has good strategic alignment.
6.5 Adopting the Richmond Transport Programme Business Case activity in the RLTP does not guarantee that any specific projects identified in the business case be undertaken or receive funding from Waka Kotahi.
6.6 However, if these activities are not included in the RLTP, they cannot be considered for NLTF funding.
6.7 The RTC and Full Council will consider the funding of individual projects stemming from the Richmond Transport Programme Business Case separately at a later time.
6.8 The Richmond Transport Programme Business Case has been recommended by Waka Kotahi and will be substantially funded by them. Council will make a $60,000 contribution as a partner in the process. Funding will be taken from existing budgets.
6.9 There is a separate report going to Full Council on 25 June seeking approval to fund $1.25 million towards a bridge over Borck Creek. The Borck Creek Bridge is Council Staff’s current preferred option for the Berryfield Drive Connection business case.
7 Climate Change Impact Assessment
Climate Change Consideration
Assessment Explanation of Assessment
Is this activity associated with one of the goals in Council’s Climate Action Plan?
Yes 1(c) Year on year, use of
alternative transport modes increases, whereas use of single- occupancy internal combustion- engine vehicle on roads in Tasman District declines.
1(d) Use of active transport (e.g.
walking, cycling etc) as a form of transportation increases year on year.
Investigating options that meet the Climate Action Plan Targets.
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Will this decision affect the ability of Tasman District to proactively respond to the impacts of climate change?
This decision will increase resilience to Climate Change and the ability of the Council or District to proactively respond to the impacts of climate change.
Any business case work has to be in line with Ministry of Transport, transport priorities in the Government Policy Statement (GPS). The current GPS has a support strategic priority to reduce greenhouse gas emissions as well as adverse effects on local environment and public health.
8 Policy / Legal Requirements / Plan
8.1 Section 16 of the Land Transport Management Act 2003 sets out the form and the content of RLTPs.
8.2 Section 16(3)(e) outlines what information must be included in the RLTP to allow assessment for National Land Transport Funding.
8.3 The Richmond Transport Programme Business Case is the business case phase only, whereas the Berryfield Drive Connection activity is all phases through to completion of construction. The activities are summarised in the following table:
Duration Activity Organisation Responsible
Contributes to Objectives
Performance Monitoring Measure
Total Cost NLTF Share
Draft National Priority
2019-21 Richmond Transport Programme Business Case
NZTA Various
Various $400,000 $340.000 1
2019- 2021
Berryfield Drive Connection
Tasman District Council
Various Various $1,900,000 $637,500 1
8.4 Section 16(4) outlines that an activity may be proposed if an organisation accepts financial responsibility. In this situation, Waka Kotahi will accept financial responsibility for Richmond Transport Programme Business Case and Council will accept financial responsibility for the Berryfield Drive Connection subject to a separate financial approval and formal adoption of the proposed RTC recommendation that this project be included in RLTP.
9 Consideration of Financial or Budgetary Implications
9.1 The Richmond Transport Programme Business Case is currently underway, with Council funding coming from existing budgets. Any projects that are identified through the business case process does not commit Council to funding. It is envisaged that identified projects will be included in the Draft Long Term Plan for consideration.
9.2 The recommendation by the RTC to include the Berryfield Drive Connection in the RLTP does not commit the Council to provide additional funding for this project. There is still a separate requirement for the Council to resolve to fund the project and include it in the
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RLTP. Inclusion in the RLTP allows Council to seek funding from the NLTF through Waka Kotahi.
9.3 Council approval to fund this project will be part of a separate report to Full Council on 25 June.
10 Significance and Engagement
10.1 The recommendation to include the Richmond Transport Programme Business Case and Berryfield Drive Connection activities in the RLTP is of low significance.
10.2 The decision to include Berryfield Drive Connection activity in the RLTP, and bring the project forward is considered of low significance and it is not considered that additional consultation or engagement is required.
11 Conclusion
11.1 Richmond Transport Programme Business Case and Berryfield Drive Connection activities are to assist with transport issues that Richmond is facing. Both activities have been signaled through the Richmond NOF and the Transport Activity Management Plan.
11.2 If it is included in the Tasman RLTP it will allow the activity to be eligible for funding from the National Land Transportation Fund.
11.3 Staff recommend that Richmond Transport Programme Business Case and Berryfield Drive Connection activities be included in the RLTP.
12 Next Steps / Timeline
12.1 Should the RTC recommend to Full Council that the activities be included in the RLTP a report will be presented to the Full Council on 30 July 2020.
13 Attachments Nil
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