SP11 - Walking and cycling projects

Introduction

These procedures provide a method of evaluating the economic efficiency of walking and cycling projects, with the exception of signalised crossings over roads.

Note: All walking and cycling projects will potentially be subject to a safety audit to help ensure that safety is improved as a result of the project.

The calculation of the benefit cost ratio (BCR) in this simplified procedure assumes that:

1. A 10 percent discount rate and 25 year evaluation period are used.
2. The worksheets assume that projects adopted will be completed in the first year and will be in service by the start of year 2.
3. All costs are exclusive of GST.

Note: In cases where the above assumptions are not appropriate, either the simplified procedure should be modified or full procedures used.

The simplified procedure is designed to consider one option at a time. Where it is logical to do so, the analyst should consider other suitable options in order to select the optimal solution. If there is more than one option, the evaluation will involve incremental analysis of the costs and benefits of the different options. In particular, where a separate dedicated cycleway is proposed the alternative option of providing wider sealed shoulders or cycle lanes on the carriageway must be considered. The preferred option shall have a minimum incremental BCR of 1.0 and shall be sensitivity tested using a target incremental BCR that is 1.0 higher than the ratio used for choosing the preferred option (refer to appendix A12 of volume 1).

For walking and cycling projects, the worksheets for all the options need be submitted together with a summary of the incremental analysis.

To use the worksheets, it is necessary to determine both the current numbers, and growth rate of cycle/pedestrian traffic for the project. These must be based on local counts and realistic projections.

Summary of analysis of chosen option

Explanation sheet for worksheet 1

Worksheet 1 provides a summary of the economic and general data of the preferred option.

Enter the general data at the top of the sheet, ie the project name, location, etc.

• Provide a brief description of the problem that the works/programme are intended to eliminate or mitigate.
• Briefly describe the preferred option and how it will eliminate or mitigate the problems. The cost of the option is estimated on worksheet 3.
• Enter programming information.
• Enter the pedestrian/cycling data obtained from a local counting programme. AADT refers to pedestrian, cycle and vehicle traffic volumes as appropriate.
• Calculate the project benefits and the BCR using the results from worksheets 3 and 4. To bring the benefits up to the base date use the appropriate update factors.
• Name the cycling/walking strategy document that the work is identified in. To be eligible for funding the work must be identified, either specifically or generically, in a current cycling or walking strategy.
• Action recommended by analyst. Decide whether to proceed, put on hold, or abandon the project option.
• Action recommended by controlling authority. Decide whether to approve or modify the evaluation.

Worksheet 1 - Summary of analysis of chosen option

Proposal map

Worksheet 2

Worksheet 2 is used to briefly describe and illustrate the proposed works. If possible, the alternatives and options should be detailed on the same diagram. If this is not possible, then more than one diagram should be supplied for the options.

Information provided shall include:

• location/route map
• layout plan of the project.

The layout plan shall show:

• start and end points/stations of the work.
• on a road cross-section, the width available for use by cycles, the relationship with roadside parking and whether the cycle space is shared or dedicated, or a cross-section of the footpath/cycleway/other structure (as appropriate)
• topographical data, rivers, bridges, railways, side roads, north direction.

Costs of the option

Explanation sheet for worksheet 3

Worksheet 3 is used for calculating the PV cost of the cycling or walking works.

1. Calculate the cost of the option, ie investigation, design, construction etc. Attach the estimate sheet to this worksheet. Multiply the costs by the discount factor 0.91 to get the PV.
2. Estimate the cost of annual maintenance following completion of project based on local experience and knowledge. Multiply by 8.57 to get the PV maintenance/update costs.
3. In part 2.3 of worksheet 3 calculate the PV of any periodic maintenance. Enter the years and the amounts in the table.
4. Sum (a) + (b) + (c) to get total $__________A.

Present worth factors for 10 percent discount rate

Worksheet 3 - Cost of the option

Project benefits for walking projects

Explanation sheet for worksheet 4

Only one of the following three categories may be used in the evaluation of a project. If a project contains more than one of these categories they must be submitted as separate evaluations. Analysts are required to make realistic estimates of the number of new pedestrians generated by any of these projects.

Projects that combine walking and cycling may claim benefits for both modes but safety issues arising from pedestrian/cycle conflicts must be addressed, and if there are additional accident costs these must be accounted for in the project benefits on worksheet 1.

The basis of the composite health, safety and environmental benefits used in worksheet 4 is described in chapter 8.

Discount factors (DF) for different growth rates for years 2 to 25 inclusive

Worksheet 4 - Project benefits for walking projects

Project benefits for cycling projects

Explanation sheet for worksheet 5

Only one of the following three categories may be used in the evaluation of a project. If a project contains more than one of these categories they must be submitted as separate evaluations. Analysts are required to make realistic estimates of the number of new cyclists generated by any of these projects.

Projects that combine walking and cycling may claim benefits for both modes but safety issues arising from pedestrian/cycle conflicts must be addressed, and if there are additional accident costs these must be accounted for in the project benefits on worksheet 1.

The basis of the composite health, safety and environmental benefits used in worksheet 5 is described in chapter 8.

When evaluating the benefits of cycling promotional activities only the number of new cyclists are included in the calculations.

Discount factors (DF) for different growth rates for years 2 to 25 inclusive

Worksheet 5 - Project benefits for cycling projects

Benefit cost ratio and incremental analysis

Explanation sheet for worksheet 6

Benefit-cost analysis

1. Under benefits, enter the discounted values of benefits, for each option.
2. Under costs, enter the discounted value for the road authoritys capital and maintenance costs for each option.
3. Calculate the benefit cost ratio for each option by dividing the total benefits by the option costs.

Incremental analysis

1. Rank the options in order of increasing cost.
2. Compare the lowest cost option with the next higher cost option to calculate the incremental BCR.
3. If the incremental BCR is less than the target incremental BCR specified in appendix A12 of volume 1, discard the second (higher cost) option in favour of the first. Compare the first option with the next higher cost option.
4. If the incremental BCR is greater than the target incremental BCR, the second (higher cost) option becomes the basis for comparison against the next higher cost option.
5. Repeat the procedure until no higher cost options are available that have an incremental BCR greater than the target incremental BCR.
6. Undertake a sensitivity test using a target incremental BCR that is 1.0 greater than the ratio used in steps 2 to 5 above. Report the results of this sensitivity test in the project report.

Worksheet 6 - Benefit cost ratio and incremental analysis