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					Rural & Regional Bus Service
Contract


Contract B
Contract Number [insert number]

The Director-General of the Ministry of
Transport
[insert Operator's name]




BLANK CONTRACT FOR REFERENCE
ONLY
Contents


Clause
Number     Heading                                                            Page


1          Definitions                                                           2
2          Standard Terms and Conditions                                         4
3          Existing Contract                                                     4

4          Changes to Services – initiated by the Operator                       4
5          Service Review                                                        6
6          Network Review                                                        7

7          Bus age and bus replacement                                           8
8          Amalgamation of services                                              9
9          Right of first refusal                                               11

10         Complaints handling                                                  11
11         Transport information services                                       12
12         Emergency use of buses                                               12

13         Operation of other bus services                                      13
14         Converted contracts                                                  14
           Schedule 1                                                           16
           Details of parties                                                   16
           Schedule 2                                                           18
           Warranties                                                           18
           Schedule 3                                                           20
           Fares and concessions                                                20
           Schedule 4                                                           22
           Funding Model                                                        22
           Schedule 5                                                           23
           Services                                                             23
           Schedule 6                                                           24
           Key Performance Indicators                                           24
           Schedule 7                                                           26
           Reporting requirements                                               26
           Schedule 8                                                           28
           Fleet Procurement Guidelines                                         28


                                0   Rural & Regional Bus Service Contract B
Schedule 9                                                        30
Contract Management Plan                                          30
Schedule 10                                                       32
Service Planning Guidelines                                       32
Schedule 11                                                       42
Neighbouring services                                             42
Schedule 12                                                       44
Bus age and bus replacement                                       44
Annexure                                                          49
Existing Service Contract Termination Agreement                   49




                1       Rural & Regional Bus Service Contract B
Date

Parties          The Director-General of the Ministry of Transport under the Passenger
                 Transport Act 1990 (NSW) on behalf of The Crown in the right of the State of
                 New South Wales (Director General)

                 The Operator identified in Schedule 1 (Operator)



It is agreed as follows:

Operative provisions


 1        Definitions
       Words and phrases used in this Contract, unless otherwise defined herein or required by the
       context, shall have the same meaning as are given to those terms in the Standard Terms and
       Conditions and, in addition, the following words and phrases shall have the following
       meanings:
       Approved Beneficiaries are set out in Schedule 3.

       Contract means this agreement between the Director General and the Operator.
       Contract A means a contract for the provision of Regular Bus Services in Rural and Regional
       New South Wales between the Director General and a bus operator, which is entitled "Rural
       and Regional Bus Service Contract - Contract A".
       Contract B means a contract for the provision of Regular Bus Services in Rural and Regional
       New South Wales between the Director General and a bus operator, which is entitled "Rural
       and Regional Bus Service Contract - Contract B".
       Contract Service Region means the area defined in Schedule 5 to this Contract.
       country town means an area determined by the Director General, primarily being within an
       Urban Centre Boundary:
       (a)     where the population within that area is greater than 7,500;
       (b)     where a commercial contract existed as at the date of this Contract to service that area
               and the Director General has determined to continue to service that area; or
       (c)     where the Director General determines, in consultation with any bus operators
               servicing that area, that such area should be classed as a country town.

       Declared School Year means the school year as published each year in the New South Wales
       Government Gazette plus, where relevant, any additional days in which school services are
       required to be operated in order to service schools in other States.




                                  2       Rural & Regional Bus Service Contract B
Existing Service Contracts means the existing contracts between the parties for the provision
of Regular Bus Services.

Existing Service Contract Termination Agreement means an agreement in the form attached
to this Contract pursuant to which the Existing Service Contract(s) are terminated with effect
from the Service Commencement Date.

Line of Route means a line of route specified in Schedule 5 to this Contract.
Neighbouring Service Provider Agreement means an agreement substantially in the form
annexed to this Contract.

Network Review has the meaning given in clause 6.1(a).
RED means a ticket approved by the Director General for issue by the Operator or by another
regular Bus Operator providing services under a Rural and Regional Bus Service Contract B
that allows Approved Beneficiaries unlimited travel for that day on the Operator's Contract B
bus services as well as Regular Bus Services provided by Contract B operators identified in
Schedule 11.

Service Commencement Date means the date specified in Schedule 1.
Standard Terms and Conditions means the document entitled "Ministry of Transport New
South Wales Rural and Regional Bus Service Contract Standard Terms and Conditions" as
published on the New South Wales Ministry of Transport website at
http://www.transport.nsw.gov.au a copy of which has been provided to the Operator on the
date of this Contract.
Town Centre has the meaning given to that term in Schedule 5.
Transport Working Group means a local working group established by transport providers
and other stakeholders for the purposes of considering local transport issues, including:
(a)     advisory committees established under Section 355 of the Local Government Act 1993
        (Cth);

(b)     sub-groups of local council traffic committees; and
(c)     other community led committees.
Urban Centre Boundary means the boundary of a particular urban centre as defined by the
Australian Bureau of Statistics and agreed by the Director General.
Urban Region means:
(a)     any contract service region as defined, at the date of this Contract, in any Metropolitan
        Bus System Contract or Outer-Metropolitan Bus System Contract to which the
        Director General is a party; or
(b)     the Australian Capital Territory.




                           3        Rural & Regional Bus Service Contract B
 2     Standard Terms and Conditions
Standard Terms and Conditions

2.1   The Standard Terms and Conditions apply to, and are incorporated into, this Contract as if
      they were contained in this Contract.
Inconsistency

2.2   In the event of any inconsistency between the Standard Terms and Conditions and this
      Contract, this Contract will prevail.



 3     Existing Contract
      On or before the date of this Contract, the Operator shall deliver to the Director General a
      copy of the Existing Service Contract Termination Agreement executed by the Operator.



 4     Changes to Services – initiated by the Operator
4.1   Changes initiated by the Operator
      (a)     The Operator may propose a change to the Services where the Operator is of the view
              that the proposed change will improve efficiency and/or increase patronage while
              maintaining an appropriate level of access to public transport services for all persons
              affected by the Services.
      (b)     In proposing any such change, the Operator must comply with the Service Planning
              Guidelines set out in Schedule 10 to this Contract.
      (c)     In proposing any such change, the Operator must initially consider the use of any
              spare capacity on buses operating in the area in which the Services are provided
              (including buses operated by Neighbouring Service Providers).
      (d)     Without limiting clause 4.1(a), the Operator may propose a change to the Services as a
              result of the following:

              (i)     growth or decline in the number of passengers using the Services;
              (ii)    changes in population in areas affected by the Services; or
              (iii)   any other demonstrable public need.

      (e)     Without limiting clause 3.5 of the Standard Terms and Conditions , in making a
              proposal under this clause 4.1, the Operator must comply with section 3.6
              (Community Consultation) of the Service Planning Guidelines and in doing so must in
              good faith cooperate with all other relevant Neighbouring Service Providers.
4.2   Consent of the Director General
      (a)     Unless it has complied with clause 4.2(c), the Operator must obtain the Director
              General's prior written consent (which is not to be unreasonably withheld) to any
              change to the Services which is deemed to be a Material Change under clause 4.3.


                                 4        Rural & Regional Bus Service Contract B
      (b)     Where the Director General's consent is required under clause 4.2(a), the Director
              General must notify the Operator in writing of whether or not he consents to a change,
              within 42 days of receipt of the change being proposed to the Director General.
      (c)     The Director General's consent is not required for a Material Change where, prior to
              implementation of the change, the Operator has provided to the Director General in
              writing:
              (i)     confirmation that the Operator has complied with the Service Planning
                      Guidelines and this Contract in relation to the proposed change;

              (ii)    all details regarding routes, shifts and timings of the Services being provided
                      prior to the proposed change;
              (iii)   all details regarding routes, shifts and timings of the Services following the
                      proposed change;
              (iv)    confirmation (with accompanying details) that the Operator has carried out all
                      community consultation required under this Contract and the Service Planning
                      Guidelines;
              (v)     confirmation that the Operator has considered and reasonably taken into
                      account issues raised during the consultation process described in clause
                      4.2(c)(iv) above; and
              (vi)    details of the implementation of the proposed change.
4.3   Material Change to Services

      For the purposes of clause 4.2(a), a change to the Services proposed by the Operator will be a
      Material Change if it:
      (a)     would result in the removal of an existing Service; or

      (b)     would result in the removal of an existing Trip or Journey;
      (c)     would result in a decrease in the frequency of an existing Service;
      (d)     would result in a permanent change to, or removal of, the route of an existing Service;
              or
      (e)     is otherwise considered to be material by the Director General, acting reasonably,
      except where the change is only required on a temporary basis and, in the circumstances, the
      prior written approval of the Director General could not reasonably be obtained.
4.4   Community consultation
      (a)     Prior to implementing any change to the Services whether under clause 5 of the
              Standard Terms and Conditions or clause 4 of this Contract (and whether or not that
              change requires the prior written consent of the Director General), the Operator must
              use its best endeavours to consult with the community (including all key stakeholders
              such as local schools, the parents of affected school students, other transport
              providers, the Transport Working Group (if established)) and any Neighbouring
              Service Providers likely to be affected by the change.

      (b)     The Operator must use best endeavours to provide at least:


                                 5        Rural & Regional Bus Service Contract B
              (i)     2 days prior notice for any change to Services, which is not deemed to be a
                      Material Change; and

              (ii)    14 days prior notice for any change to Services, which is deemed to be a
                      Material Change,
              to any section of the community likely to be affected by the change and any other
              relevant community groups or relevant authorities.
      (c)     The Operator acknowledges that the Director General may refuse to approve the
              proposed change if the Director General (acting reasonably) is not satisfied that the
              Operator has reasonably taken into account issues raised by the community during that
              consultation process.
4.5   Communication of material service changes

      To comply with clause 4.4(b)(ii), the Operator must use its best endeavours to provide notice
      by:
      (a)     signs prominently displayed in each bus used to provide the Services;

      (b)     signs prominently displayed at any bus stop affected by the change and at any major
              interchanges;
      (c)     a display advertisement in the local newspapers covering the affected bus routes;

      (d)     providing the relevant information to local radio for the purposes of announcements;
      (e)     changes to the Operator's website;
      (f)     a notice provided to any affected member of the public; and

      (g)     notices to relevant stakeholders, including aged care facilities, hospitals and
              educational institutions.



 5     Service Review
5.1   Review by the Operator
      (a)     In each 3 year period of this Contract commencing on the Service Commencement
              Date (and, in any event, no later than 12 months after the Director General has notified
              the Operator of the release by the Australian Bureau of Statistics of population data
              compiled from a census which will alter the Contract Service Region boundary as
              identified in Schedule 5 or change the Services), the Operator must conduct a review
              of the Services (Service Review) which must:
              (i)     seek to determine the demand for Regular Bus Services (including School
                      Services);

              (ii)    seek to identify any opportunities for improving the efficiency of the Services;
              (iii)   seek to align the Services more efficiently with the needs and travel patterns
                      of the local community; and

              (iv)    analyse patronage on both peak and off-peak Services.


                                 6        Rural & Regional Bus Service Contract B
      (b)     In carrying out a Service Review, the Operator must consult with:
              (i)     the community (including all key stakeholders such as local schools,
                      community groups, the Transport Working Group (if established), local
                      council and other transport service providers), in relation to the matters set out
                      in clause 5.1(a) above; and

              (ii)    any Neighbouring Service Providers listed in Schedule 11 who may be
                      affected by the matters being considered in the Service Review, in relation to
                      the matters set out in clause 5.1(a) above.

5.2   Coordination of Service Reviews
      The Operator must use its best endeavours to coordinate the timing of each Service Review
      with similar reviews carried out by Neighbouring Service Providers pursuant to the Rural and
      Regional Bus Service Contracts to which those Neighbouring Service Providers are parties.
5.3   Results of Service Review
      The Operator must, within 1 month of completing a Service Review, provide to the Director
      General in writing the results of that Service Review together with a proposed implementation
      plan for any changes to the Services arising from the Service Review. That implementation
      plan must include details of any proposed changes to the Services, any stakeholders impacted
      by those changes and the proposal and timetable for implementing those changes. Those
      changes will be considered to be changes to the Services proposed by the Operator under
      clause 4.



 6     Network Review
6.1   Network Review
      (a)     If a notice has been served on the Operator by the Director General under
              clause 10.3(a) of the Standard Terms and Conditions and the Operator has failed to
              rectify the matters set out in that notice in accordance with clause 10.3(d) of the
              Standard Terms and Conditions, the Director General may carry out a review of the
              Services in accordance with this clause 6 (Network Review).
      (b)     The Director General must provide the Operator with 10 business days notice of his
              intention to carry out a Network Review.

      (c)     Following a Network Review, the Director General may, with a view to providing
              better coordination of services between the Operator and any Neighbouring Service
              Providers and/or improved services to the community, initiate a variation of this
              Contract pursuant to clause 5.1 of the Standard Terms and Conditions, in relation to
              any of the Services, to deal with:
              (i)     a change to any Service (including any Line of Route);

              (ii)    a change to the frequency or span of service hours of any Service;
              (iii)   service design and coverage; or
              (iv)    a change to a timetable.



                                  7       Rural & Regional Bus Service Contract B
      (d)       The Operator must co-operate with and assist the Director General or his
                representatives in conducting the Network Review, including by providing as soon as
                practicable after the commencement of the Network Review, any information
                reasonably requested by the Director General and relevant to the Network Review.



 7     Bus age and bus replacement
7.1   Bus age
      (a)       Schedule 12 sets out the:
                (i)     requirements in relation to bus age that are applicable to the Operator; and

                (ii)    method for calculating the average age of the Operator's buses.
      (b)       The Operator must:
                (i)     ensure that the average age of all buses used to perform the Services does not
                        exceed 12 years;
                (ii)    ensure that the maximum age of each bus used to perform the Services does
                        not exceed the maximum age requirement set out in Schedule 12; and

                (iii)   use its best endeavours to comply with all requirements applicable to it, set out
                        in Schedule 12, in relation to each bus used in providing the Services.
7.2   Calculation of the age of a bus

      (a)       Subject to clause 7.2(b), for the purposes of clause 7.1, the age of a bus will be taken
                to run from:
                (i)     where the bus has not previously been used, the date of its first registration in
                        New South Wales;
                (ii)    where the bus has been previously used, the date of its first registration in
                        New South Wales or any other jurisdiction; or

                (iii)   where the date of first registration of the bus cannot be confirmed, the date of
                        manufacture on its compliance plate (noting that, for older buses with separate
                        chassis compliance plates and body compliance plates, the date of
                        manufacture is that which appears on the chassis compliance plate).
      (b)       For the purposes of clause 7.1, where it is 2 years or more after the date on which a
                bus was manufactured, the age of that bus will be taken to run from the date of
                manufacture.
7.3   Temporary relief from age obligations
      (a)       The Director General may grant a temporary exemption from compliance with clause
                7.1 if the Operator is able to demonstrate to the satisfaction of the Director General
                that its failure to comply with clause 7.1 does not:
                (i)     breach any safety requirements applicable to the Operator or to the Services;
                        or
                (ii)    adversely affect the comfort of the passengers.

                                   8        Rural & Regional Bus Service Contract B
 8     Amalgamation of services
8.1   Amalgamation of services

      (a)     Where it is proposed that the whole or part of the interest of another operator (the
              Assignor) under another Rural and Regional Bus Service Contract (being a Contract
              A) (the Assigned Contract) be assigned or novated to the Operator, the Operator shall
              be entitled to amalgamate the services being assigned with the Services
              (Amalgamate).
      (b)     In the event that the Operator decides to Amalgamate, the Operator shall submit to the
              Director General a proposal detailing service delivery changes which may result from
              Amalgamation.
      (c)     In the event that the Operator decides to Amalgamate and the Director General
              consents to the assignment of the Assigned Contract, any efficiency savings made by
              the Operator as a result of that assignment will be shared as follows:
              (i)     the Operator shall be entitled to those efficiency savings made in the first 3
                      full calendar years following the date of the assignment (which 3 year period
                      shall carry over into a New Contract awarded under clause 9 if the remaining
                      period of this Contract was less than 3 calendar years at the date of the
                      assignment of the Assigned Contract); and
              (ii)    thereafter, the Director General shall be entitled to those efficiency savings
                      (unless the Director General agrees otherwise, following consideration of any
                      proposal for an alternative entitlement to those efficiency savings included by
                      the Operator in the proposal submitted under clause 8.1(b)).
8.2   Efficiency savings

      (a)     For the purposes of clause 8.1, the efficiency savings shall be defined as the difference
              between the payments that would be paid for the services provided under the Assigned
              Contract (the Assigned Services):

              (i)     if the Assigned Contract was not assigned to the Operator; and
              (ii)    if the Assigned Services were paid for in accordance with Schedule 4 of this
                      Contract by the Director General following Amalgamation.

      (b)     There will be no efficiency saving if the amount calculated under clause 8.2(a)(i) is
              less than the amount calculated under clause 8.2(a)(ii).
      (c)     The efficiency savings (if any) will be paid to the Operator in accordance with
              Schedule 4.
8.3   Conversion of Contract A bus services provided by the Operator
      Where the Operator provides Regular Bus Services in either of the following situations
      (Relevant Contract A Services):
      (a)     services under a Contract A which transport school students to schools located within
              the country town serviced by this Contract; or

      (b)     services under a Contract A which connect with a Line of Route which runs from the
              country town serviced by this Contract to:


                                 9       Rural & Regional Bus Service Contract B
              (i)     another country town; or
              (ii)    a village,

      and there is connectivity between the Services and the Relevant Contract A Services, the
      Operator may apply to the Director General to amalgamate the Relevant Contract A Services
      with the Services provided under this Contract so that the Relevant Contract A Services are an
      additional Line of Route.
8.4   Application to convert Contract A bus services
      (a)     In making an application to the Director General under clause 8.3, the Operator must:

              (i)     comply with any guidelines and assumptions established by the Director
                      General from time to time in relation to the matters described in clauses 8.3
                      and 8.4; and

              (ii)    provide all information reasonably required to enable the Director General to
                      calculate the payments which would be made to the Operator:
                      (A)     (assuming amalgamation does not occur) for the Relevant Contract A
                              Services under the Contract A for the remainder of the term of the
                              Contract A plus for the Services under this Contract for the remainder
                              of the term of this Contract; and

                      (B)     (assuming amalgamation does occur) for the Services under this
                              Contract (including the Relevant Contract A Services) for the
                              remainder of the term of this Contract.

      (b)     If the difference between the payments described in clause 8.4(a)(ii)(A) and (B) is:
              (i)     equal to or less than 1.5% of the total SSTS revenue derived over the
                      remainder of the terms of the two contracts (if amalgamation did not occur);
                      and
              (ii)    equal to or less than 10% of total revenue for the Relevant Contract A
                      Services over the remainder of the term of the relevant Contract A (if
                      amalgamation did not occur),
              the Director General must approve the application made under clause 8.3.
      (c)     If the difference between the payments described in clause 8.4(a)(ii)(A) and (B) does
              not fall within either threshold described in clause 8.4(b)(i) or (ii), the Director
              General shall be entitled to approve or refuse the application made under clause 8.3.
      (d)     The parties acknowledge that the calculations in clause 8.4 will be based on
              assumptions established by the Director General from time to time.
      (e)     The Operator acknowledges that the warranty contained in clause 8.3 of the Standard
              Terms and Conditions applies to any information provided by the Operator to the
              Director General under clause 8.4(a)(ii).
      (f)     Without prejudice to the Director General's rights under 8.6 of the Standard Terms and
              Conditions, in the event the Operator provides information under clause 8.4(a)(ii)
              which is false or misleading in any respect, the Director General shall be entitled:
              (i)     to refuse an application made under clause 8.3; or


                                   10    Rural & Regional Bus Service Contract B
               (ii)     following approval of an application made under clause 8.3, require the
                        Operator to revert to providing the Relevant Contract A Services under a
                        Contract A as if the application had been refused (and to repay any amounts
                        paid to the Operator in excess of payments the Operator would have received
                        had the application been refused).



 9      Right of first refusal
9.1    New Contract
       (a)     If the Director General (acting reasonably) determines that it is in the public interest
               that the Services continue to be provided following the expiry of the Term, then no
               later than 12 months before the expiry of the Term, the Director General must notify
               the Operator that the Director General proposes to enter into a further contract for the
               provision of the Services (the New Contract).
       (b)     In the event that the Director General is required to give the Operator a right of first
               refusal to enter into the New Contract pursuant to this clause 9, the Operator and the
               Director General shall negotiate in good faith to agree the terms for the provision of
               the Services under the New Contract.
9.2    Right of first refusal

       If the Director General proposes to enter into the New Contract in accordance with clause
       9.1(a), the Director General must give the Operator a right of first refusal to enter into the New
       Contract before the Director General enters into negotiations with any other person in relation
       to the New Contract, provided:
       (a)     the Operator has been in material compliance with its obligations under this Contract
               during the Term and no Event of Default exists, which has been the subject of a cure
               notice under clause 10.3(a) of the Standard Terms and Conditions, which has not been
               rectified to the reasonable satisfaction of the Director General; and
       (b)     the Operator has been in material compliance with the Key Performance Indicators
               during the Term;
       (c)     the Operator has been in material compliance with its obligations under each
               Neighbouring Service Provider Agreement; and

       (d)     no right exists for the Director General to terminate this Contract; and
       (e)     the Operator continues to hold all Authorisations required to provide the Services
9.3    Obligation to offer

       Notwithstanding clause 9.1, the Director General shall be under no obligation to enter into the
       New Contract if he takes the view (acting reasonably) that there will be no ongoing public
       need for the Services to be provided under the New Contract having regard to the service
       levels set out in section 3.2 of the Service Planning Guidelines.



 10     Complaints handling
10.1   Complaints handling

                                  11       Rural & Regional Bus Service Contract B
       In addition to its obligations under clause 19 of the Standard Terms and Conditions, the
       Operator must, from the Service Commencement Date, have regard to Australian Standard
       AS4269-1995 or any successor standard issued by Standards Australia relating to complaints
       handling and manage and resolve passenger complaints and enquiries, however received.
       Compliance with this clause 10 must:

       (a)     include processes to:
               (i)     log the complaint or enquiry into a complaints management system
                       maintained by the Operator or as otherwise nominated by the Director
                       General;
               (ii)    ensure the most appropriate person deals with the complaint or enquiry;
               (iii)   ensure the complaint or enquiry is responded to promptly and appropriate
                       action is taken to address the complaint or enquiry;
               (iv)    monitor action taken in response to a complaint or enquiry; and
               (v)     identify any problems of a systemic nature revealed by the complaints and
                       enquiries and take remedial action as necessary; and
       (b)     incorporate a guarantee of response times to complaints and enquiries received by
               telephone, mail and electronic mail.

10.2   Reporting to the Director General
       The Operator must provide detailed reports of its compliance with this clause 10, to the
       Director General monthly.



 11     Transport information services
11.1   Transport Infoline
       The Operator must participate in any telephone or online transport information service
       established for the purposes of Rural and Regional New South Wales by:
       (a)     providing timetable and other information as applicable, in a timely manner; and
       (b)     advertising any relevant logo in a prominent position on all timetables, websites and
               displays.



 12     Emergency use of buses
12.1   Emergency

       Where the Director General has appointed a Nominee under Clause 12.1 of the Standard
       Terms and Conditions of any other Rural and Regional Bus Service Contract (an Emergency),
       the Director General shall be entitled to require the Operator to provide to the Director
       General, or as directed by the Director General, any buses owned or operated by the Operator
       (Emergency Buses) under the terms of this clause 12.
12.2   Notice of an Emergency


                                  12       Rural & Regional Bus Service Contract B
       In the event of an Emergency, the Director General may issue a notice (an Emergency
       Notice) to the Operator with the following details:

       (a)     the total number of Emergency Buses sought from the Operator;
       (b)     the name and details of the Nominee appointed in relation to the Emergency;
       (c)     an estimate of the time for which the Emergency Buses are expected to be required;
               and
       (d)     a proposal for payments to the Operator during the period of the Emergency (the
               Emergency Period) to cover the reasonable costs of the Operator directly attributable
               to the use of the Emergency Buses under this clause 12.
12.3   Use of Emergency Buses during Emergency Period
       (a)     The Director General shall only be entitled to require the Emergency Buses for a
               period up to thirty (30) days from the date the Emergency Notice is issued, or for such
               other extended period as agreed between the Director General and the Operator,
       (b)     Upon the issue of the Emergency Notice, the Operator will use its best endeavours to
               provide Emergency Buses as directed in the Emergency Notice, having regard to the
               Operator's obligations to provide the Services under this Contract (including having
               regard to the extent that such Services may be temporarily suspended by the Director
               General during the Emergency Period).
       (c)     The Parties acknowledge that the Director General will establish a reasonable
               commercial rate for the use of the Emergency Buses and will consult with the BCA
               prior to the establishment of that reasonable commercial rate.
       (d)     The Director General shall procure that any Nominee using the Emergency Buses
               shall, at all times during the Emergency Period, insure the Emergency Buses in
               accordance with the requirements of accreditation under the Act.



 13     Operation of other bus services
13.1   Operation of other bus services in the Operator's area

       (a)     The Operator acknowledges the right of the following bus services to operate in and
               through the [Contract Service Region] or along any line of route identified in Schedule
               5:

               (i)     Long Distance Services, Tourist Services and Charter Services (as those terms
                       are defined in Section 3 of the Act);
               (ii)    bus services operated on a temporary, emergency or permanent basis to
                       transport rail passengers during periods of disruption to timetabled rail
                       services or in place of timetabled rail services;
               (iii)   community or courtesy transport services provided in accordance with the
                       Act;
               (iv)    services provided under a Neighbouring Service Provider Agreement;




                                  13      Rural & Regional Bus Service Contract B
               (v)     privately funded school bus services that pick up and set down school students
                       at places agreed by the hirers, which may include their place of residence;

               (vi)    Dedicated School Services on a day commencing before 12:00pm outside the
                       Contract Service Region, setting down (but not picking up) passengers in the
                       Contract Service Region or Dedicated School Services commencing inside the
                       Contract Service Region and terminating after 12:00pm outside the Contract
                       Service Region, picking up (but not setting down) passengers in the Contract
                       Service Region.



 14     Converted contracts
14.1   Non-commercial contracts
       The following provisions shall apply in respect of any Services under a Line of Route which,
       prior to execution of this Contract, were provided under the terms of a non-commercial
       contract (as defined in the Act) (the Converted Services):
       (a)     no material change may be made to the Converted Services without the Director
               General's prior written approval or otherwise in accordance with the terms of this
               Contract;
       (b)     the Operator agrees that, from time to time, it will be necessary to extend or change a
               Converted Service to accommodate new or additional school students;
       (c)     the Operator must comply with any reasonable request from the Director General to
               change the Converted Services provided the change does not materially impact on the
               operational or financial performance of the Converted Service being changed. Any
               change to a Converted Service under this clause 14.1(c) will not entitle the Operator to
               compensation under clause 5.2(b) of the Standard Terms and Conditions;

       (d)     the Operator and the Director General acknowledge that:
               (i)     the conversion of the Converted Services from a non-commercial contract to
                       this Contract may result in the Operator either:

                       (A)     receiving additional revenue from that received under the non-
                               commercial contract; or
                       (B)     incurring a loss compared to the revenue received under the non-
                               commercial contract; and
               (ii)    the Director General shall be entitled, acting reasonably, to publish guidelines
                       setting out any change to the payments made to the Operator under this
                       Contract to reflect such additional revenue or loss (as the case may be),
                       providing that such change shall not apply for a period of more than three
                       years from the Service Commencement Date.

14.2   False information
       (a)     The Operator acknowledges that:
               (i)     the warranty contained in clause 8.3 of the Standard Terms and Conditions;
                       and


                                  14      Rural & Regional Bus Service Contract B
      (ii)   clause 8.5 of the Standard Terms and Conditions,
      apply to any information provided by the Operator to the Director General prior to
      execution of this Contract for the purposes of assisting the Director General in
      deciding that the Converted Services should be included in the Services.
(b)   Without prejudice to the Director General's rights under 8.6 of the Standard Terms and
      Conditions, in the event that any information described in clause 14.2(a) was false or
      misleading in any respect, the Director General shall be entitled to require the
      Operator to provide the Converted Services under a separate Contract A (and to repay
      any amounts paid to the Operator in excess of the amounts the Operator would have
      received had the Converted Services been provided, from the Service Commencement
      Date, under a separate Contract A rather than under this Contract).




                        15       Rural & Regional Bus Service Contract B
Schedule 1
Details of parties



   Operator's name
   Address
   Facsimile No.
   Contact Person
   Service Commencement
   Date


   Director General's
   address
   Director General's
   facsimile No.




                          16   Rural & Regional Bus Service Contract B
17   Rural & Regional Bus Service Contract B
Schedule 2
Warranties

Insert any additional warranties specific to the Operator.




                                   18       Rural & Regional Bus Service Contract B
19   Rural & Regional Bus Service Contract B
Schedule 3
Fares and concessions



Note: country town fares will apply:
               (i)    for all journeys wholly within the country town; and

               (ii)   for all other journeys unless the Director General has agreed in advance that
                      rural fares will be applicable.




                                20       Rural & Regional Bus Service Contract B
21   Rural & Regional Bus Service Contract B
Part 2 – Approved Beneficiaries for Concessions


 Approved Beneficiaries                            Proof of eligibility                 Issued by                                   Concession entitlements
 Primary and Junior Secondary School aged          No proof required. However, some     RailCorp Passes and Concessions and/or      Half fare for single
 children (ages 4 – 15)                            children may carry a Proof of Age    schools on behalf of RailCorp Passes and
                                                   Card                                 Concessions.
 Senior Secondary School Students (ages 16-        School Pupil Railways of Australia   NSW schools on behalf of Railcorp Passes    Half fare for single
 18)                                               Identification Card (Form 202)       and Concessions
 Full time University, TAFE and private            NSW Student Identification Card      NSW Universities, TAFE and Private          Half fare for single
 college students (aged 16+) or full time School   (Form 204)                           Colleges on behalf of RailCorp Passes and
 Students (aged 19+)                                                                    Concessions

 Apprentices (1st, 2nd & 3rd year) and Trainees     1st /2nd /3rd Year Apprentice       RailCorp Passes and Concessions             Half fare for single Tickets
                                                   Identification Card (Forms VT76
                                                   & VT77)
 Jobseekers (on the maximum amount of              NSW Half Fare Entitlement Card       Centrelink on behalf of the NSW Ministry    Half fare for single Tickets
 benefit)                                          for jobseekers                       of Transport
 Pensioners                                        Pensioner Concession Card (NSW,      Centrelink and Department of Veterans       Half fare for single Tickets
                                                   Victoria & ACT)                      Affairs                                     $2.50 for RED
                                                   Other States & Territories                                                       $2.50 for RED
 NSW Seniors                                       NSW Seniors Card holders             NSW Department of Ageing Disability &       Half fare on single Tickets
                                                                                        Home Care                                   $2.50 for RED
 NSW & Victorian War Widow/ers                     NSW & Victorian War Widow/ers        Department of Veterans Affairs              Half fare on single Ticket
                                                   Card                                                                             $2.50 for RED




                                           Rural & Regional Bus Service Contract B
                                            0
Notes:
         (a)   This list of Approved Beneficiaries may be varied from time to time by the Director-General in accordance with any scheme implemented pursuant to
               Section 39 of the Transport Administration Act 1988 (NSW).
         (b)   The Approved Beneficiary status will continue in circumstances where the proof of eligibility certification may change from time to time (an updated
               Schedule will be issued to Operators where there is a change).
         (c)   The Approved Beneficiary status will continue in circumstances where the issuing authority may be replaced by another authority from time to time
               (an updated Schedule will be issued to Operators where there is a change).
         (d)   Approved Beneficiaries are eligible for the Tickets listed above for travel at any time.
         (e)   RED means a ticket approved by the Director General for issue by the Operator or by another regular Bus Operator providing services under a Rural and
               Regional Bus Service Contract B that allows Approved Beneficiaries unlimited travel for that day on the Operator's Contract B bus services as well as
               Regular Bus Services provided by Contract B operators identified in Schedule 11.




                                           Rural & Regional Bus Service Contract B
                                            1
 Part 3 - Approved Beneficiaries for Free Travel

 The persons identified in the following table will be eligible for free travel:



Free travel                                                   Proof of eligibility        Issued by                            Concession entitlements
Preschool aged children (0 – 3)                         No proof required                 Not Applicable                      Free travel
Primary and secondary school students including certain Operator-specific SSTS Pass(es)   Bus Operators on behalf of the MoT  Free travel in accordance with SSTS
TAFE students                                                                                                                 Policy set by the MoT and amended
                                                                                                                              from time to time
Vision impaired persons                             Vision Impaired Persons Pass RailCorp Passes and Concessions and Free travel including guide dog (and
                                                    (NSW and all other States and equivalent transport agency in other States attendant where endorsed on VIP Pass.)
                                                    Territories)                  and Territories
Aurally deficient (deaf) person                     Hearing Dog Certificate       RailCorp Passes and Concessions             Free travel for assistance animal.
World War 1 veterans and their wives/widows (+ World War 1 Travel Concession Department of Veterans Affairs                   Free travel
George Cross & Victoria Cross widows)               Card
Australian & New Zealand war veterans with service Ex-Member of Defence force RailCorp Passes and Concessions                 Free travel
related disabilities in receipt of a pension from Pass
Department of Veterans Affairs
Australian War Veterans classified by Department of Blinded Soldier’s Gold Pass   RailCorp Passes and Concessions             Free travel
Veterans Affairs
People recognized for service to the State          State Travelcard holders      RailCorp Passes and Concessions             Free travel




                                              Rural & Regional Bus Service Contract B
                                               2
Rural & Regional Bus Service Contract B
 3
Schedule 4
Funding Model




                22   Rural & Regional Bus Service Contract B
Rural & Regional Bus Service Contract B
 1      Payment provisions
1.1    Payments
The Director General and the Operator agree to make payments scheduled and payable in accordance with the
terms of this Schedule 4.

1.2    Manner of Payments
       (a)       All payments made under this Contract must be made by transfer of immediately available
                 funds to the account specified by the Director General or the Operator (as the case may be) by
                 11.00 a.m. (Sydney time) on the date that payment is payable.
       (b)       Monthly Payments due to the Operator under this Schedule 4 shall be paid in arrears on the last
                 business day of each month to which the Monthly Payment relates.

       (c)       If any amount is payable under this Contract on a day that is not a business day, it will instead
                 be payable on the preceding business day.
1.3    Set Off

       (a)       The Director General may set off against any payment made or payable by him under this
                 Contract, any amount payable to the Director General under this Contract.
       (b)       The Operator must make all payments under this Contract without set off or counterclaim and
                 without any deduction unless otherwise agreed in writing by the Director General.
1.4    Payments during Force Majeure Events and Events of Default
       (a)       Subject to paragraph 1.4(d), if there is a Force Majeure Event, and that Force Majeure Event
                 subsists for a period of more than 5 consecutive days on which the Services are to be operated,
                 or an Event of Default, the Director General may, by written notice to the Operator, reduce any
                 or all Variable Contract Payments for the period to which the notice relates by the amount
                 specified in the Director General's notice.
       (b)       Subject to paragraph 1.4(d), if there is an Event of Default, the Director General may, by
                 written notice to the Operator, reduce any or all Fixed Contract Payments for the period to
                 which the notice relates by the amount specified in the Director General's notice.
       (c)       The reduction of any or all of the Variable Contract Payments and Fixed Contract Payments
                 under this paragraph 1.4 must be proportionate reductions having regard to the Services that
                 have not been delivered by the Operator in accordance with this Contract as a consequence of
                 the relevant Force Majeure Event or Event of Default. Any reduction in payment as a result of
                 an Event of Default arising from breach of performance standards in this Contract shall be
                 deemed to be a civil penalty provision for the purposes of Section 28C(6) of the Act.
       (d)       The Director General is not entitled to withhold any amount of Variable Contract Payments
                 and the Fixed Contract Payments under this paragraph 1.4 if and only for so long as the
                 Operator is implementing and complying with a Final Cure Plan to address or remedy the
                 Event of Default.
       (e)       Any dispute arising out of this paragraph 1.4 may be referred for dispute resolution in
                 accordance with clause 23 of the Standard Terms and Conditions.




                                      0      Rural & Regional Bus Service Contract B
      (f)   The rights of the Director General under this paragraph 1.4 are in addition to and do not affect
            any rights and remedies available to the Director General under this Contract or law in respect
            of the Force Majeure Event or Event of Default or any other default.


      (g)   For the purpose of this paragraph, Variable Contract Payments are defined as Monthly
            Payments (excluding CFR) multiplied by the aggregation of the following previous financial
            year Weightings for each contract year as defined in paragraph 4 (g);
            (i)     LPIWLY – Labour Price Index Weighing,
            (ii)    SCIWLY – Superannuation Cost Index Weighting,

            (iii)   PTCIWLY – Payroll Tax Cost Index Weighting,
            (iv)    WCCIWLY – Workers’ Compensation Cost Index Weighting,
            (v)     FCIWLY – Fuel Cost Index Weighting, and;

            (vi)    BRMCIWLY – Bus Repairs and Maintenance Cost Index Weighting.
      (h)   For the purposes of this paragraph, Fixed Contract Payments are defined to include all other
            payments from MOT that are not included in Variable Contract Payments as defined in
            paragraph 1.4(g).


1.5   GST

      (a)   If GST is payable on a Taxable Supply made under, by reference to or in connection with this
            Contract, the party providing the Consideration for that Taxable Supply must also pay the GST
            Amount as additional Consideration. This Clause does not apply to the extent that the
            Consideration for the Taxable Supply is expressly stated to be GST inclusive.
      (b)   In the calculation of a cost, expense or other liability incurred by a party, the amount of any
            Input Tax Credit entitlement in relation to the relevant cost, expense or other liability must be
            excluded. A party will be assumed to have an entitlement to a full Input Tax Credit unless it
            demonstrates otherwise prior to the date on which the Consideration must be provided.
      (c)   Subject to paragraph 1.5(d), the GST Amount, or an appropriate component of it, is payable on
            the earlier of:
            (i)     the first date on which all or any part of the Consideration for the Taxable Supply, or a
                    component of it that is treated as a separate supply, is provided; and

            (ii)    the date 5 business days after the date on which an Invoice is issued in relation to the
                    Taxable Supply, or a component of it that is treated as a separate supply.
      (d)   Despite paragraph 1.5(c), the GST Amount will only become payable if the supplier has issued
            a Tax Invoice that complies with the requirements of the GST Act.
      (e)   Any reference in this Contract to price, value, sales, revenue or a similar amount (Revenue), is
            a reference to the amount obtained by subtracting from that Revenue any GST.

      (f)   If an amount payable under this Contract is adjusted by reference to a change pursuant to
            paragraph 4, then for the purposes of calculating that adjustment GST must be excluded from
            the amount which is being adjusted.

      (g)   [All amounts set out in this Schedule 4 are exclusive of GST.]


                                  1     Rural & Regional Bus Service Contract B
        (h)        In this Schedule 4:
                   (i)     Consideration, GST, GST Group, Invoice, Tax Invoice, Taxable Supply each have the
                           meaning given by the A New Tax System (Goods and Services Tax) Act 1999 (Cth);

                   (ii)    GST Amount means, in relation to a Taxable Supply, the amount of GST payable on
                           that Taxable Supply, being the Consideration to be provided for the supply under this
                           Contract multiplied by the prevailing rate of GST (currently 10%); and

                   (iii)   Input Tax Credit has the meaning given by the A New Tax System (Goods and Services
                           Tax) Act 1999 (Cth) and a reference to an Input Tax Credit entitlement of a party
                           includes an Input Tax Credit for an acquisition made by that party but which another
                           member of the same GST Group is entitled to under the GST Act.
1.6     Financial Default
        (a)        Each party (the Defaulting Party) must pay to the other party (the Innocent Party) interest on
                   any amount that is the subject of a Financial Default (including interest payable under this
                   paragraph 1.6). A "Financial Default" means a failure by a party to pay when due any money
                   which the party is obliged to pay to another party to this Contract.

        (b)        Interest will accrue at the Default Rate (which means an interest rate that is three percentage
                   points above the 90 day bill rate as published each business day in the Australian Financial
                   Review) on the amount which is the subject of the Financial Default on a daily basis from (and
                   including) the date on which the amount became due and payable to the date the amount is
                   paid in full both before and after judgment (as a separate and independent obligation).
        (c)        The Defaulting Party must pay interest accrued under this paragraph 1.6 on demand by the
                   Innocent Party and on the last business day of each month.
        (d)        The right to require payment of interest under this paragraph 1.6 is without prejudice to any
                   other rights and remedies of the Innocent Party in respect of the Financial Default.

1.7     False Reporting
If the Operator:

        (a)        provides any information under clause 8 of the Standard Terms and Conditions or otherwise
                   under this Contract which is false or misleading; or
        (b)        takes any intentional action to artificially inflate the calculation of payments to be made to the
                   Operator or to artificially deflate the calculation of payments to be made by the Operator under
                   this Contract, or to artificially improve the measure of the Operator's performance or the
                   apparent viability of the Operator;
(in each case of Misinformation), it shall be a breach of this Contract and the Director General may refuse to
make a payment affected by the Misinformation and may demand that the Operator pay to the Director General
any:

        (c)        shortfall in payments previously made, or to be made, by the Operator which have been
                   deflated as a result of the Misinformation; or

        (d)        excess in payments previously made, or to be made, to the Operator, which have been inflated
                   as a result of the Misinformation,




                                         2     Rural & Regional Bus Service Contract B
together with Interest at the Default Rate calculated on a daily basis from (and including) the date on which the
shortfall or excess payments were made to the date the amount is paid in full. The Operator must make any
payment in accordance with a demand under this paragraph 1.7.

1.8      Overpayment
         The parties acknowledge that where it is shown by the Director General that it has overpaid an amount
         under this Contract, whether in error or otherwise, the parties agree to make such payments as are
         necessary to ensure that the Operator receives from the Director General the actual consideration owed
         to the Operator as calculated in accordance with this Schedule 4.


 2        Definitions
The following definitions apply in this Schedule 4 except to the extent the context otherwise requires:
financial year means a year from 1 July to 30 June.
Reporting Period means each calendar month which commences or ends during the Term and:

         (a)     in the case of the first Reporting Period, is the period from the Service Commencement Date to
                 the end of the month in which the Service Commencement Date occurs; and
         (b)     in the case of the last Reporting Period during the Term, is the period from the commencement
                 of the calendar month during which this Contract terminates or expires and ending on the date
                 on which this Contract terminates.
Monthly Payment means a monthly payment calculated and payable in accordance with this Schedule 4.

 3        Monthly Payments
3.1      Principal Formula
For each Reporting Period during the Term, a Monthly Payment will be calculated in accordance with the
following formula:
MP = SSTSP + HFCP + SCP
where:

MP is the Monthly Payment for that Reporting Period;

SSTSP is the SSTS Payment calculated in accordance with paragraph 3.3;

HFCP is the Half Fare Concession Payment calculated in accordance with paragraph 3.4;

SCP is the Service Change Payment calculated in accordance with paragraph 3.6.

3.2      Cash fare revenues
         Cash fare revenue collected by the Operator at or below the maximum rates specified in Schedule 3
         will be retained by the Operator.

3.3      SSTS Payment
         (a)     The SSTS Payment in respect of any Reporting Period will be determined in accordance with
                 the following formula:



                                      3     Rural & Regional Bus Service Contract B
            SSTSP = (SSTS x (1 + TBCCI)) / 12
            where:
            SSTS is the annual value of the shadow fare payment for school students who are entitled to
            travel on the Services pursuant to SSTS, calculated in accordance with Attachment 4.1.

            TBCCI is the Type B Contract Consolidated Index calculated in accordance with paragraph 4.


      (b)   The Operator must in each year, by the due date specified in the SSTS Bus Operators Manual,
            provide to the Director General complete annual survey data in relation to the School Student
            Transport Scheme administered under the SSTS Bus Operators Manual for the most recent
            calendar year ended prior to that due date.

      (c)   Following receipt of that data, the Director General shall carry out a reconciliation of the SSTS
            Payment paid to the Operator during that calendar year (the Relevant SSTS Payment) against
            the data provided.

      (d)   The Director General will provide to the Operator a full and complete copy of the results of the
            reconciliation process and (if required by the Operator) access to the working files and
            materials used to produce the reconciliation results.

      (e)   If there are any variations between the results of the reconciliation process and the Relevant
            SSTS Payment, an amount will be paid by the Operator to the Director General or by the
            Director General to the Operator (as the case may be) to reflect those variations, no later than
            30 days after the receipt by the Operator of the reconciliation results in the same year.
      (f)   No interest will be paid on any reconciliation payment unless paragraph 1.7 applies.
      (g)   In the event the Operator does not provide the data required under paragraph 3.3(b) by 30
            November in any year, the Monthly Payment due in the following January will be withheld by
            the Director General until that data has been provided.
      (h)   No interest will be paid on any withheld payment under paragraph 3.3(g).

3.4   Half Fare Concession Payment
      (a)   The HFC Payment in respect of any Reporting Period will be determined in accordance with
            the following formula:

            HFCP = (THFCR - ACR) / 12
            where:
            THFCR is the benchmark total half fare concession revenue (including RED) for each
            calendar year, which, subject to increase in accordance with paragraph 3.4(b) below, is equal
            to:
              (i)    the actual concession revenues collected by the Operator for the calendar year ending
                     31 December 2008; plus
             (ii)    all payments received from the Director General in relation to the same concession
                     revenues, for the period ending 31 December 2008.

             (iii)   For clarity, the payments for Half Fare Concession up to 31 December 2008 will be
                     based on the quarterly proven loss method (for operators with ticketing facilities) or
                     otherwise on the annual survey provided by the Operator.


                                  4     Rural & Regional Bus Service Contract B
             (iv)    ACR for the Calender year ending 31 December 2009 is 70% of the actual concession
                     revenues collected by the Operator for the calendar year ending 31 December 2008.
             (v)     The ACR for each calendar year from 2010 onwards shall be equal to the actual
                     concession revenues collected by the Operator for the previous calendar year,
                     increased by a percentage change equivalent to the percentage increase (if any) in the
                     maximum fare scale to be charged to the general public during the Relevant Calendar
                     Year compared to the previous calendar year.
      (b)   The THFCR for each calendar year from 2009 onwards (a Relevant Calendar Year) shall be
            equal to the THFCR from the previous calendar year, increased by a percentage change
            equivalent to the percentage increase (if any) in the maximum fare scale to be charged to the
            general public during the Relevant Calendar Year compared to the previous calendar year.
      (c)   The Operator must, by 31 January in each year, provide to the Director General complete
            annual survey data identifying all half fare concession ticket sales, RED boardings and revenue
            for the previous calendar year.
      (d)   Following receipt of that data, the Director General shall carry out a reconciliation of the HFC
            Payment paid to the Operator during that calendar year (the Relevant HFC Payment) against
            the data provided. This reconciliation will compare the projected ACR used in the monthly
            payments with the actual concession revenue collected by the operator for the calendar year.

      (e)   The total annual HFC Payment due to the operator for each calendar year is the THFCR for
            the calendar year minus the actual concession revenue collected by the operator for the same
            period.

      (f)   The Director General will provide to the Operator a full and complete copy of the results of the
            reconciliation process and (if required by the Operator) access to the working files and
            materials used to produce the reconciliation results.

      (g)   If there are any variations between the results of the reconciliation process and the Relevant
            HFC Payment, an amount will be paid by the Operator to the Director General or by the
            Director General to the Operator (as the case may be) to reflect those variations, no later than
            30 days after receipt by the Operator of the reconciliation results.
      (h)   In the event the Operator does not provide the data required under paragraph 3.4(c) by 31
            January in any year, the Monthly Payment due in the next February will be withheld by the
            Director General until that data has been provided.
      (i)   No interest will be paid on any reconciliation payment unless paragraph 1.7 applies.

3.5   Additional Patronage Change Payment
      (a)   The Operator will be entitled to an additional patronage change payment for each calendar
            year calculated as follows:

            APCP = [THFCR x ((APB – PPB)/PPB)] x 0.5 + TAPCP
            where:
            APCP is the additional patronage change payment payable under this paragraph 3.5.
            THFCR is the THFCR for that calendar year calculated under paragraphs 3.4(a) and (b).

            APB is the Actual Patronage Boardings for that calendar year calculated in accordance with
            paragraph 3.5(b).



                                  5     Rural & Regional Bus Service Contract B
            PPB is the APB from the previous calendar year.

            TAPCP equals the total amount of all APCPs paid to the Operator for previous calendar years
            of the Term.

      (b)   Patronage boardings will be calculated as the total patronage from the following categories of
            boardings reported by the Operator in providing the Services in the relevant calendar year:
            (i)     REDs issued to Approved Beneficiaries;

            (ii)    Half-fare concession tickets issued to Approved Beneficiaries; and
            (iii)   Additional recorded free travel on REDs.
      (c)   In addition to the RED change payment payable under paragraph 3.5(a), the Operator may
            apply to the Director General for additional compensation if the Operator reasonably considers
            that the introduction of the RED has directly resulted in the Operator receiving reduced total
            payments under this Contract compared to those payments that would have been received by
            the Operator had RED not been introduced (RED Reduction).
      (d)   A notice provided under paragraph 3.5(d) must include reasonable details of the RED
            Reduction and any steps the Operator is able to implement to mitigate the effect of RED on
            total payments.
      (e)   If, in the reasonable opinion of the Director General, the Operator has proved the RED
            Reduction, the Director General may acting reasonably agree to pay compensation to the
            Operator to mitigate the effects of the RED Reduction.

3.6   Service Change Payment
      (a)   Subject to paragraph 7.2, where the Director General initiates a change to Services pursuant to
            Clause 5 of the Standard Terms and Conditions, the Director General will pay compensation to
            the Operator for that change in the Services, in accordance with this paragraph 3.6.
      (b)   The payment for the Services will be consistent with the operating payment components of
            Type A Contract Payments for the relevant Reporting Period, as follows:

                                     Category 1          Category 2               Category 3   Category 4
             Fuel related             $0.3130             $0.2790                  $0.4940      $0.5777
             costs per km
             (FRCP)
             Other distance           $0.2278              $0.4098                 $0.5308      $0.5478
             related costs per
             km (DRCP)
             Driver related           $29.6771             $29.6771                $29.6771     $29.6771
             costs per hour *
             (includes on-
             costs)
             (DRCHP)
             Driver related           $13.3845             $13.3845                $13.3845     $13.3845
             cost per day
             (includes on-
             costs) (DRCDP)
             Return on                  5%                    5%                     5%           5%
             Operations


                                 6      Rural & Regional Bus Service Contract B
                 (ROOP)
    EY proposed rates for 2008/09 financial year

         * Where an operator is required to pay a loading to the driver (for example for night services) then the loading would be
          added to the base rate to determine the driver payment.

    (c)       The total payment to the Operator will be derived by multiplying the relevant inputs by the
              number of days of operation and the total kilometres (including any necessary dead running
              kilometres) and hours (including any necessary dead-running and layover time) required to
              undertake the Services. The return on operations of 5% would be applied to this total to derive
              the total payment due to the Operator under this paragraph 3.6.
    (d)       To the extent any additional costs are actually incurred by the Operator in complying with a
              change to Services initiated by the Director General pursuant to Clause 5 of the Standard
              Terms and Conditions, those additional costs will be reimbursed to the Operator provided it
              was approved by the Director General in advance of being incurred.

    (e)       If the Change to Services result in the Operator adding a peak bus to their fleet to enable the
              change to be effectively serviced, the full Type A Contract Payment, including the
              Administrative Efficiency Savings Adjustment Payment (AESAP), will be payable by the
              Director General to the Operator based on the capacity of the vehicle that is being added.
    (f)       Any separately identifiable additional fares collected by the Operator in complying with a
              change to Services initiated by the Director General pursuant to Clause 5 of the Standard
              Terms and Conditions must be paid to the Director General or may be set off by the Director
              General against any Monthly Payment to be paid to the Operator.
    (g)       Where a change to Services initiated by the Director General pursuant to Clause 5 of the
              Standard Terms and Conditions requires the transport of school students, the Director General
              will retain all separately identifiable additional SSTS payments or half fare concession
              payments.

    (h)       The Operator must provide to the Director General complete details of all separately
              identifiable additional fares collected as a result of complying with a change to Services
              initiated by the Director General pursuant to Clause 5 of the Standard Terms and Conditions,
              at the same time as the data is to be provided at Clause 3.4(c).

4       Indexation
        For each year during the Term, SSTS will be updated by the Type B Contract Consolidated Index
        which will be calculated in accordance with the following formula;

                        TBCCI = CCI + LCI + ICI + FCI + BRMCI + OCI
        (For clarity, the indexes below are as at 31 March of each financial year due to availability of data
        and timing, however they will be calculated and updated as at 1 July of each year of the Term (based
        on 31 March data) with the exception of the Fuel Cost (FCI) component of this index which will be
        updated as at 1 July and 1 January of each year of the Term (based on data as at 30 June and 31
        December) with the remaining index components being held constant for the January update. An
        example calculation is included at Attachment 4.2

        where:


    (a)       CCI is the Capital Cost Index (CCI) which is calculated as the movement in a current market
              Bus Capital Annuity Payment (BCAP) that an Operator would be making from year to year



                                        7       Rural & Regional Bus Service Contract B
using the updated detail below, payable in respect of any Reporting Period, determined in
accordance with the following formula:

    CCI = ((BCAPCY – BCAPLY)/ BCAPLY) x CCIWLY
Where:
    BCAPCY      is the Bus Capital Annuity Payment for a vehicle for the current financial year
                 which is calculated in accordance with the following formula:


     BCAPCY      =          iCY x (CCCY)
                           1 – (1 + iCY)-M


    Where:
    iCY      is the average of the 5 year BBSW (expressed as a decimal) for the 12 months
             ending 30 June of the current financial year (as sourced from the Australian
             Financial Review (“AFR”)) divided by 12, or, if the rates sourced from the AFR
             are not considered accurate by the BCA and MOT, then an appropriate
             comparative alternative source can be used to compare and/or calculate the
             average, if agreed by the BCA and the MOT.
    CCCY is the Capital CostCY for the standard vehicle approved by the Director General as
         agreed with the BCA as at 31 March of the current financial year as determined by
         the Director General using an average of 3 quotes (based on comparable
         performance based specifications agreed with the BCA) from suppliers of suitable
         vehicles.


    BCAPLY      is the Bus Capital Annuity Payment for a vehicle for the previous financial
                 year which is calculated in accordance with the following formula:


     BCAPLY      =          iLY x (CCLY)
                           1 – (1 + iLY)-M


    Where:
    iLY      is average of the 5 year BBSW (expressed as a decimal) for the 12 months ending
             30 June of the previous financial year divided by 12 as sourced from the
             Australian Financial Review (“AFR”), or, if the rates sourced from the AFR are
             not considered accurate by the BCA and MOT, then an appropriate comparative
             alternative source can be used to compare and/or calculate the average, if agreed
             by the BCA and MOT. For the purpose of calculating the starting Weightings in
             paragraph 4(g) the average rate for the week ending 30 June 2008 will be used.
    CCLY is the Capital CostLY for the Test Vehicle as at 31 March of the previous financial
         year as determined by the Director General using an average of 3 quotes (based on
         comparable performance based specifications agreed with the BCA) from
         suppliers of suitable vehicles.

    M is the assumed term of the finance specified arrangements of 60 months.




                     8     Rural & Regional Bus Service Contract B
              CCIWLY is the Capital Cost Weighting value for the previous financial year as determined
                   in Clause 4(g) of this Schedule 4.
(b)   LCI is the labour cost index which is calculated using the following formula;

      LCI = (LPI + SCI + WCCI + PTCI)

                 where:

       (i).       LPI = ((LIC/LIB) – 1) x LPIWLY
                 where:

                 LIC is the labour price index for the most recent March quarter of the current financial
                 year, which is obtained from ABS 6345.0 Table 5b. Total Hourly Rates of Pay
                 Excluding Bonuses: Sector by Industry, Original (Quarterly Index Numbers) for
                 Transport and Storage (Private and Public).
                 LIB is the labour price index for the March quarter of previous financial year, which is
                 obtained from ABS 6345.0 Table 5b. Total Hourly Rates of Pay Excluding Bonuses:
                 Sector by Industry, Original (Quarterly Index Numbers) for Transport and Storage
                 (Private and Public).

                 LPIWLY is the labour price index weighting value for the previous financial year as
                 determined in Clause 4(g) of this Schedule 4.


      (ii).      SCI is the Superannuation Cost Index, as calculated in accordance with the following
                 formula:

                          SCI = ((SIC/SIB) x (LIC/LIB)) – 1) x SCIWLY

                 where:

                 SIC is the superannuation rate as at 31 March of the current financial year, obtained
                 from the Commonwealth Superannuation Guarantee Charge percentage as published
                 by the Australian Taxation Office.

                 SIB is the superannuation rate as at 31 March of the previous financial year, obtained
                 from the Commonwealth Superannuation Guarantee Charge percentage as published
                 by the Australian Taxation Office.

                 LIC is the labour price index for the most recent March quarter of the current financial
                 year, which is detailed above.

                 LIB is the labour price index for the most recent March quarter of the previous
                 financial year, which is detailed above.

                 SCIWLY is the superannuation index weighting value for the previous financial year as
                 determined in Clause 4(g) of this Schedule 4.


       (iii). PTCI is the Payroll Tax Cost Index, calculated in accordance with the following
              formula:



                              9     Rural & Regional Bus Service Contract B
      PTCI = (((LIC x (1+SIC)) x PTIC) / ((LIB x (1 + SIB)) x PTIB) – 1) x PTCIWLY

      where:
      PTIC is the payroll tax rate as at 31 March of the current financial year, which is the
      NSW Payroll Tax rate as published by the NSW Office of State Revenue.

      PTIB is the payroll tax rate as at 31 March of the previous financial year, which is the
      NSW Payroll Tax rate as published by the NSW Office of State Revenue.

      LIC is the labour price index for the most recent March quarter of the current financial
      year, which is detailed above.

      LIB is the labour price index for the most recent March quarter of the previous
      financial year, which is detailed above.
      SIC is the superannuation rate as at 31 March of the current financial year, as detailed
      above.

      SIB is the superannuation rate as at 31 March of the previous financial year, as
      detailed above.
      PTCIWLY is the payroll tax index weighting value for the previous financial year as
      determined in Clause 4(g) of this Schedule 4.


(iv). WCCI is the Workers' Compensation Cost Index, calculated in accordance with the
      following formula:
      WCCI = (((LIC x (1+SIC)) x WCIC) / ((LIB x (1 + SIB)) x WCIB) – 1) x
           WCCIWLY

      where:

      WCIC is the workers' compensation industry rate as at 31 March of the current
      financial year, which is the NSW WorkCover basic tariff premium for Short Distance
      Bus Transport (WIC code 612200) plus the dust diseases levy, and the industry claims
      rate as published by WorkCover NSW.

      WCIB is the workers' compensation industry rate as at 31 March of the previous
      financial year (2007/08), which is the NSW WorkCover basic tariff premium for Short
      Distance Bus Transport (WIC code 612200) plus the dust diseases levy and the
      industry claims rate as published by WorkCover NSW.

      LIC is the labour price index for the most recent March quarter of the current financial
      year, as detailed above.

      LIB is the labour price index for the most recent March quarter of the previous
      financial year, as detailed above.
      SIC is the superannuation rate as at 31 March of the current financial year, as detailed
      above.

      SIB is the superannuation rate as at 31 March of the previous financial year, as
      detailed above.



                   10    Rural & Regional Bus Service Contract B
               WCCIWLY is the workers’ compensation index weighting value for the previous
               financial year as determined in Clause 4(g) of this Schedule 4.

(c)   ICI is the insurance cost index which is calculated using the following formula:

               ICI = (ICIC-ICIB)/ICIB x ICIWLY

      where:

               ICIC is the Rural and Regional NSW Bus Industry premium rate per Contract Bus for
               the year ending 31 March of the current financial year, which is calculated using the
               following formula:

               (GP CY / NoV CY )


                      where:


                      GP CY is the Gross Premium Value for the Rural and Regional NSW Bus
                      Industry, which is an industry aggregation of gross premium payments as
                      provided by Austbrokers ALIB Pty Ltd (trading as BusInsure) for the current
                      year.


                      NoV CY is the Number of Vehicles included in the GPCY aggregations above as
                      provided by Austbrokers ALIB Pty Ltd (trading as BusInsure) for the current
                      year

               ICIB is the premium rate per Contract Bus as at 31 March of the previous year, which
               is calculated using the following formula:

               (GP L Y / NoV LY)

                      where:


                      GP L Y is the Gross Premium Value for the Rural and Regional NSW Bus
                      Industry, which is an industry aggregation of gross premium payments as
                      provided by Austbrokers ALIB Pty Ltd (trading as BusInsure) for the previous
                      year.


                      NoV LY is the Number of Vehicles included in the GPLY aggregations above as
                      provided by Austbrokers ALIB Pty Ltd (trading as BusInsure) for the current
                      year



               ICIWLY is the insurance cost index weighting value for the previous financial year as
               determined in Clause 4(g) of this Schedule 4.




                            11     Rural & Regional Bus Service Contract B
(d)   FCI is the fuel cost index which is calculated using the following formula;


      FCI = ((CFCR x FP CAP) / (LFCR x FP LAP) -1 ) x FCIWLY
      where:

      FP CAP is the current average retail pump price for diesel in country NSW net of any
      applicable fuel rebates, for the preceding six month period calculated from the data
      produced by FuelTrac (or any similar body as agreed between the Director General and
      the BCA) which is updated each six months with the average price for the preceding
      six month period on 30 June and 31 December of each year.
      FP LAP is the previous average retail pump price for diesel in country NSW net of any
      applicable fuel rebates, for the preceding six month period calculated from the data
      produced by FuelTrac (or any similar body as agreed between the Director General
      and the BCA) which is updated each six months with the average price for the
      preceding six month period on 30 June and 31 December of each year. For the 2009
      financial year, this price is determined as the average for the last week up to 30 June
      2008.
      LFCR is Last Years Fuel Consumption Rate which is equal to the fuel consumption
      rate of the previous financial year (CFCRLY) for each contract year and is defined as
      35.06 litres per 100 kilometres in the first year of the contract.

      CFCR is determined using the following formula:
               LFCR + ACFCA
               where:

               LFCR is calculated as defined above

               ACFCA = (ACFUI x RACFP) / TERM)
               where:

               ACFUI is the Air Conditioning Fuel Usage Increase of 4.2 litres per 100
               kilometres, which is the result of increased fuel usage due to air-conditioning
               units installed on vehicles.

               RACFP is the Remaining Air Conditioning Fleet Percentage of 70%, which is
               the remaining amount of the increase in fuel consumption that has not been
               included in the base weightings disclosed in Clause 4(g) of this Schedule 4.

               TERM is equal to 14 years which is the remaining amortisation term of the
               RACFP amount of the ACFUI adjustment above, spanning both this current
               Term and the next contract term.


      FCIWLY is the fuel cost index weighting value for the previous financial year as
      determined in Clause 4(g) of this Schedule 4.

      (for clarity, LFCR and CFCR remain constant for each six monthly price update that
      occurs on 31 December).




                    12    Rural & Regional Bus Service Contract B
(e)   BRMCI is the bus repairs and maintenance cost index which is calculated using the
      following formula;

              BRMCI = (((CPIC/CPIB) – 1) + ACMIAF x (CPIC/CPIB)) x BRMCIWLY

              where:

              CPIC is the Sydney Consumer Price Index (All Groups) indices for March
              quarter of the current financial year.
              CPIB is the Sydney Consumer Price Index (All Groups) indices for the March
              quarter of the previous financial year.

      however, CPIC/CPIB maybe substituted upon agreement by the Director General and
      the BCA if a more appropriate and reliable index is developed throughout the term of
      the contract. If a more appropriate and reliable index is agreed and determined, then it
      will be applied in the same manner as above.


      ACMIAF is the Air Conditioning Maintenance Increase Adjustment Factor which is
      calculated using the following formula;

              ACMIAF = (CCMR x RACFP) / TERM
              where:
              CCMR is the Air Conditioning Maintenance Ratio as a percentage of Major
              Service of 52.54%, which is average percentage increase in regular vehicle
              maintenance that is attributable to adding air-conditioning to a vehicle.
              RACFP is the Remaining Air Conditioning Fleet Percentage, which is defined
              above

              TERM is the remaining amortisation term as defined above and applicable to
              the RACFP portion of CCMR.
      BRMCIWLY is the bus repairs and maintenance cost index weighting value for the
      previous financial year as determined in Clause 4(g) of this Schedule 4.


(f)   OCI is the other costs index which is calculated using the following formula;

              OCI = ((CPIC/CPIB) – 1) x OCIWLY
              where:

              CPIC is the Sydney Consumer Price Index (All Groups) indices for March
              quarter of the current financial year.
              CPIB is the Sydney Consumer Price Index (All Groups) indices for the March
              quarter of the previous financial year.



      OCIWLY is the other costs index weighting value for the previous financial year as
      determined in Clause 4(g) of this Schedule 4.




                   13    Rural & Regional Bus Service Contract B
                (g)         the TBCCI index weightings are detailed below for the first year of the Term and are
                            re-weighted in each subsequent year as follows;


                                                                                               Each Subsequent
                   Index Description                               2009 FY Start Index           Contract Year

Capital Cost Index Weight                                           CIWLY          17.57%      (CIWLY + CCI) / TIWCY
Labour Price Index Weight                                           LPIWLY         40.77%      (LPIWLY+ LPI) / TIWCY
Superannuation Cost Index Weight                                   SCIWLY           3.31%     (SCIWLY+ SCI) / TIWC Y
Payroll Tax Cost index Weight                                      PTCIWLY          1.94%    (PTCIWLY+ PTCI) / TIWCY
Workers‟ Compensation Cost Index Weight                           WCCIWLY           1.66%   (WCCIWLY+ WCCI) / TIWC Y
Insurance Cost Index Weight                                         ICIWLY          1.66%      (ICIWLY+ ICI) / TIWCY
Fuel Cost Index Weight                                             FCIWLY          14.90%      (FCIWLY+ FCI) / TIWCY
Bus Repairs & Maintenance Cost Index Weight                       BRMCIWLY         4.84%    (BRMCIWLY+ BR MCI) / TIWCY
Other Costs Index Weight                                           OCIWLY          13.35%     (OCIWLY+ OCI) / TIW CY

Total Index Weighting                                               TIWLY         100.00%             TIWCY

                where:

                TIWCY = (1+ TBCCI)
 5       Profit Sharing - methodology
For each financial year during the Term, a Profit Sharing Payment will be calculated as follows:

        PSP = (AOE - (BOE x 1.5)) x 0.5
        provided that if the PSP is less than zero it will be deemed to be zero.
        For the purposes of this paragraph 5:

        AOE is the Actual Operating Earnings Before Interest Tax Depreciation and Amortisation (EBITDA)
        for the current financial year for the Operator.
        BOE is the Base Operating EBITDA for the financial year, which is calculated in accordance with the
        following formula:

                BOE = (AOEB + NAOEB) x CPIM
                where:

                AOEB is the Actual Operating EBITDA for the base financial year for the Operator (being the
                financial year in which the Service Commencement Date occurs).
                NAOEB is the sum of any annualised AOEB relating to contracts acquired by the Operator
                after 1 July 2008.
                CPIM is the CPI multiplier as at the commencement of that financial year, which is calculated
                in accordance with the following formula:

                            CPIM = (CPIC-CPIB)/CPIB
                            where:




                                         14    Rural & Regional Bus Service Contract B
                     CPIC is the Sydney Consumer Price Index (All Groups) in the most recent March
                     quarter of the current year;
                     CPIB is the Sydney Consumer Price Index (All Groups) in the most recent March
                     quarter of the base year (2008/09).


 6     Profit Sharing – calculation
6.1   Calculation
      (a)    No later than 6 months after the end of each financial year during the Term, the Operator must
             calculate the Profit Sharing Payment to be made in respect of that preceding financial year
             using the methodology set out in paragraph 5 and provide a statement setting out that
             calculation (or demonstrating that no Profit Sharing Payment is payable in respect of that
             financial year) in such form as the Director General may require (the Profit Sharing
             Statement).
      (b)    Within 1 month of receipt of the Profit Sharing Statement, the Director General must notify the
             Operator as to whether he rejects or accepts the Profit Sharing Statement.

      (c)    The Director General may reject the Profit Sharing Statement if he takes the view (acting
             reasonably) that:
             (i)     the calculation contained in the Profit Sharing Statement has not been prepared in
                     accordance with paragraph 5; or
             (ii)    the Operator has not complied with the spirit and intent of paragraph 5.
      (d)    The Director General may reject a Profit Sharing Statement after notifying of his acceptance
             under paragraph 6.1(b) if he receives or becomes aware of information which would have
             caused him to reject the Profit Sharing Statement if he had been in possession of that
             information at the time of receipt of the Profit Sharing Statement. If the Director-General
             rejects a Profit Sharing Statement under this paragraph (or paragraph 6.1(b)), he may require
             the Operator to prepare a new Profit Sharing Statement for the relevant financial year
             recalculating the Profit Sharing Statement having regard to the new information.

      (e)    Any dispute arising out of this paragraph 6 may be referred for dispute resolution in
             accordance with Clause 23 of the Standard Terms and Conditions.
      (f)    The Profit Sharing Payment may be offset by the Director General against the next Operators
             Monthly Payments, which is more than 1 month after the Profit Sharing Payment has been
             accepted by the Director General under paragraph 6.1(b) or agreed following resolution of a
             dispute under paragraph 6.1(e) (Relevant Date). Where no such Monthly Payment is due, the
             Profit Sharing Payment must be paid within 10 business days of the Relevant Date.

 7     Change Events
7.1   Compensation for Change Events

      (a)    Subject to paragraph 7.2(b), in circumstances where a Change Event occurs under clause 6 of
             the Standard Terms and Conditions, which causes the Operator to incur additional expenditure
             or to receive reduced income, which would not have otherwise occurred but for the occurrence
             of the Change Event, the Operator may apply in writing to the Director General to be
             compensated for the financial impact of the Change Event.




                                  15    Rural & Regional Bus Service Contract B
      (b)    In assessing the financial impact of a Change Event, the Director General shall be entitled to
             such information as reasonably deemed necessary to establish the financial impact and the
             Operator will provide such information to the Director General in that regard.

      (c)    In assessing the financial impact of a Change Event the Director General will take into account
             the impact of the Change Event on all of the operating costs of the Operator, the cash flow
             impacts of additional capital expenditure, the loss or increase in patronage or revenue resulting
             from the Change Event and any estimated cash flow impacts on each financial year of the
             Operator over the life of the impact of the Change Event.
      (d)    Provided the Operator has reasonably established a net loss financial impact due to the Change
             Event, the Director General will negotiate with the Operator a financial package which will
             meet the financial impact on the Operator over the life of the impact of the Change Event.
7.2   Thresholds

      (a)    There will be no adjustment pursuant to paragraph 3.6(a) if the relevant change was
             implemented in order to ensure compliance with the Service Planning Guidelines.
      (b)    There will be no adjustment pursuant to paragraph 7.1 if the total financial impact of the
             Change Event to the Operator is less than $5,000.00 or 1% of the current annual revenue
             derived from the Contract, whichever is the greater.

 8     Emergency Buses
8.1   In the event an Operator provides an Emergency Bus, the MOT will pay the Operator in the next
      Monthly Payment immediately after the services are provided, an amount equal to;
      (a)    the number of days that the Emergency Bus was provided, multiplied by

      (b)    the Hire of Replacement Bus (HRB) amount as determined by paragraph 3.10(h) in Schedule 4
             of the Contract A Payments for the relevant capacity vehicle, including any indexation.




                                  16     Rural & Regional Bus Service Contract B
17   Rural & Regional Bus Service Contract B
ATTACHMENT 4.1            SSTS PAYMENTS
The appropriate rate of payment [to the Operator under paragraph 3.3 of Schedule 4 of this Contract] for
school students carried under SSTS will be determined as follows:

1.     The country town fare scale will apply:
       (a)      when the origin and destination of the school student's SSTS journey are within the country
                town;

       (b)      when the origin of the school student's SSTS journey is inside the country town and the school
                student travels to a school or TAFE within three complete sections outside the country town;
       (c)      to all other fares where the rural fare scale does not apply (as described in 2 below).

2.     The rural fare scale will apply:
       (a)      when the origin and destination of the school student's SSTS journey is wholly outside the
                boundaries of the country town (even in circumstances where the journey involves travel
                through the country town);
       (b)      when the origin of the school student's SSTS journey is outside the country town and the
                destination is inside the country town;

       (c)      when the origin of the school student’s SSTS journey is inside the country town and the school
                student travels to a school more than three complete sections outside the country town, unless
                the school student's SSTS journey (i) emanates out of an area with a population base that the
                Director General (in his sole discretion) has nominated as being one which can sustain a
                country town fare and (ii) travels into an Urban Region;
       (d)      all Line of Route Contract B services except those Lines of Route that (i) emanate out of an
                area with a population base that the Director General (in his sole discretion) has nominated as
                being one which can sustain a country town fare and (ii) travel into an Urban Region.




                                      18    Rural & Regional Bus Service Contract B
19   Rural & Regional Bus Service Contract B
Schedule 5
Services

For the purposes of this contract Bxxx and in accordance with the service planning
guidelines the town centre is identified as :-


“Description of Town Centre”.




                              23   Rural & Regional Bus Service Contract B
Rural & Regional Bus Service Contract B
Schedule 5A
Adjoining Services




                     Rural & Regional Bus Service Contract B
Rural & Regional Bus Service Contract B
Schedule 6
Key Performance Indicators



 Key result area     Key Performance Indicator                    Measure
 Operational         Service delivery.                                    Compliance with the Service
 Performance                                                               Planning Guidelines in relation
                                                                           to early/late running;
                                                                          Maintain an early/late running
                                                                           register.

 Planning                   Compliance with Service              Cooperation with Neighbouring
                             Planning Guidelines;                 Service Providers / Compliance with
                                                                  Contract / Compliance with Service
                            Network Review;                      Planning Guidelines.
                            Community consultation;

                            Neighbouring Service
                             Providers.

 Safety              Compliance with regulatory                   Implementation of safety management
                     requirements (including safety               systems and Drug and Alcohol testing
                     management systems).                         and other accreditation requirements
                                                                  with satisfactory audit.

 Business            Implementation of Contract                   Completion and implementation of
 Performance         Management Plan.                             Contract Management Plan / number of
                                                                  notices issued under this Contract /
                                                                  meeting reporting requirements.

 Customer            Complaint management.                        Complaints received and dealt with -
 Service                                                          details of time complaint is received /
                                                                  content of complaint / how complaint
                                                                  was dealt with.

 Financial           Financial viability                          Meeting reporting requirements /
                                                                  including bus hourly costs and revenue
                                                                  kilometre costs.



The Director General and the Operator (who appoints the BCA to act on its behalf in this regard) will,
following the date of this Contract, negotiate in good faith to develop a set of additional benchmarks against
which operational performance of the Services will be measured. The parties intend that these benchmarks
will apply to all other Rural and Regional Bus Service Contracts entered into by the Director General.




                                  24        Rural & Regional Bus Service Contract B
25   Rural & Regional Bus Service Contract B
Schedule 7
Reporting requirements



Measure                                                            Reporting frequency
Progress against Key Performance Indicators                        Annual

Financial results                                                  Annual

Kilometres                                                         Annual

Fleet used in the Services                                         Annual

Complaints handling                                                Monthly

Reliability                                                        Monthly

Patronage                                                          Monthly

Major service disruptions                                          Immediately

Force Majeure Events                                               Immediately




                               26       Rural & Regional Bus Service Contract B
27   Rural & Regional Bus Service Contract B
Schedule 8
Fleet Procurement Guidelines

All additional or replacement buses acquired by the Operator under this Contract must comply with the
following minimum specifications unless otherwise agreed to by the Director General.
Minimum Specification
Each bus must:

       Comply with all relevant Australian Design Rules (ADRs) and all NSW legislation applicable to its
        design, construction and roadworthiness.

       Comply with all standards set by other NSW Government agencies, which relate to construction and
        operation of buses.
       Comply with such additional requirements that may be imposed from time to time by the Ministry of
        Transport and/or the Roads and Traffic Authority.
       Be registrable as a bus in NSW.

       Be designed to ensure passenger comfort taking into account the roads and specific requirements of
        passengers in the area of operation.
       Be fitted with a fully automatic “heat – cool” air conditioning system (for any bus first registered after
        1 January 2009).

       Be capable of operating efficiently in its operating environment under the traffic and weather
        conditions prevailing within the area of operation (unless otherwise approved by the Director General).
Passengers With Disabilities
The Services (other than Dedicated School Services) must meet the compliance requirements of the Disability
Discrimination Act 1992 (Cth), its Disability Standards for Accessible Public Transport 2002, and any
standards relating to disability aids determined from time to time by the Director General.




                                  28        Rural & Regional Bus Service Contract B
29   Rural & Regional Bus Service Contract B
Schedule 9
Contract Management Plan

The Contract Management Plan must provide information on the following matters:

      The plans the Operator will implement for the purposes of passenger relations.

      How the Operator proposes to meet its reporting requirements under this Contract.

      The plans that the Operator will implement to advise the Director General if the Operator is unable to
       provide the Services.
      The contingency plans that the Operator will implement if the Operator is unable to provide the
       Services.
      The plans that the Operator will implement in emergencies (including accidents and incidents arising
       on a bus).

      How the Operator plans to meet the Key Performance Indicators, including details of:
           o   the method of advising the Director General of any missed Trips; and

           o   complaints handling and the Operator's defects register.




                                30        Rural & Regional Bus Service Contract B
31   Rural & Regional Bus Service Contract B
Schedule 10
Service Planning Guidelines

1.       INTRODUCTION

The Service Planning Guidelines for Rural and Regional bus services are intended to provide
guidance in the design and operation of bus services in rural and regional NSW.
These Service Planning Guidelines update the previous Minimum Service Level Policy for non-
Urban Regions and need to be read in conjunction with the body of the contract to which they are
attached as a schedule.
In recognition of changes that occur in the population of the community serviced, or other
circumstances specific to rural and regional NSW, the Service Planning Guidelines will be reviewed
annually by a joint Ministry of Transport / BCA Working Group.
2.       RURAL AND REGIONAL BUS SERVICES – PLANNING OBJECTIVES

In rural and regional NSW, the Government is committed to the provision of safe and reliable bus
services that:
        are organised with passenger need as a key consideration;

        reflect and are responsive to local patterns of travel demand, taking into account the needs of
         those who are most reliant on public transport; and
        are co-ordinated with other services in the area to best meet demand within available
         resources.
Service levels are based on populations determined by ABS Census Data in relation to the urban
centre's/locality's boundaries and populations. Where the data reveals a change of population that
affects the service level for the Contract Service Region or village to town services, a review of
service levels must occur within 12 months after the data from the Census is released.
3.       COUNTRY TOWN SERVICES
APPLICATION OF THE SERVICE PLANNING GUIDELINES

The Service Planning Guidelines provide guidance in the provision of bus services that are relevant
to the community which they serve, are responsive to local transport needs and represent effective
transport solutions within available resources.
The Service Planning Guidelines set out principles and thresholds to be applied in planning bus
services to meet community need. However, it is recognised that local factors and circumstances
may mean that a strict application of the Service Planning Guidelines will not always be appropriate.
Where this is the case, operators will be required to demonstrate why a deviation from the Service
Planning Guidelines is necessary in accordance with the process set out in Clause 3.5 of the
Standard Terms and Conditions of the Contract.
These Guidelines also provide a framework for the planning and provision of services including
review and changes to services. Where there are multiple operators providing services to a
community, these Guidelines provide a framework for co-ordinated service provision.
Operators will be responsible for designing services, but where there is more than one operator they
will be required to work together, for example through neighbouring service agreements, to develop




                                32       Rural & Regional Bus Service Contract B
efficient co-ordinated services. This co-ordinated service plan will be submitted to the Ministry of
Transport for review in accordance with Clause 4 of the Contract.
The operator must review services at least every three years (and, in any event, no later than 12
months after any release by the Australian Bureau of Statistics of data compiled from a Census) to
identify any opportunity for improving the bus services to better align with travel patterns and local
need. This review should include analysis of patronage on both peak and off-peak services and must
include community consultation. Results of the review and any resulting service plan should be
provided to the Ministry of Transport. Where service changes represent a departure from these
Guidelines, and/or is considered material, approval from the Ministry is required in accordance with
the process set out in the Contract.
The Contract makes it clear that any material changes to the services provided, at any time during
the life of the Contract, require the approval of the Director General.
SERVICE PLANNING PRINCIPLES AND GUIDELINES
3.1       Service Design and Coverage

Service coverage needs to be as comprehensive as possible, taking into account the country town‟s
residential, retail and employment centres and ensuring that people have access to key local
facilities such as shops, schools and hospitals.
An appropriate balance needs to be struck between ensuring that services are as close as possible
to where people live, cater to the range of travel needs of the community and minimise travel time by
providing direct routes with few diversions.
As a general rule:

         A minimum of 85% of households in a Contract Service Region should be within 400 metres
          (as the crow flies) of a bus route during the day.

         Network coverage for night time services (after 6pm) will be negotiable depending on local
          demand and community need.
         Routes should be as direct as possible. The major portion of each route should use suitable
          major roads or main residential access roads. The use of deviations to reduce walking times,
          or to access lesser patronage generators, should be minimised. Such deviations usually
          increase travel time for the majority of passengers and reduce the attractiveness of the
          service. However, a balance should be achieved between minimising distance and serving
          patronage generators. On routes where travel time is greater than 30 minutes, the diversion
          from the fastest or shortest route as a guide should be no more than 20% (in distance terms).

         Routes should be designed so that the network is clear and simple to understand. Peak and
          off-peak services should use the same route wherever possible to reduce confusion and
          concentrate the provision of infrastructure and information.
3.2       Service frequency and span of service hours

Available resources need to be matched to local patterns of demand to ensure the highest frequency
and capacity and an appropriate span of service hours are provided when and where they are most
needed. Night time and weekend coverage should be provided according to demand, resource
availability and the need to ensure efficiency and value for money.
As a general rule:
         The service levels in Table 1a and Table 1b are proposed for country towns with populations



                                 33      Rural & Regional Bus Service Contract B
         (as at the last ABS Census) of greater than 7,500. Where the town population drops below
         7,500, alternative service levels may be developed by the Ministry of Transport.
        The services should be spread as uniformly as possible throughout the day.
Table 1a. Proposed Country Town1 Service Levels
For routes where the terminus is more than 2kms from the town centre 2
                                                        3
                         Average number of return journeys per route
Town population
                         Monday - Friday             Saturday                  Sunday
7,500 - 10,000           5                           -                         -
10,000 – 15, 000         5                           2                         -
15,000 – 20, 000         6 + 2 peak                  2                         -
20,000 – 25, 000         6 + 2 peak                  2                         -
25,000 – 30, 000         8 + 2 peak                  3                         -
                                                                                 4
30,000 +                 10 + 2 peak                 3                         2

Notes

1.   A “country town” is defined in the Cont ract.

2.   The “town centre” is to be defined in each Contract, but will be based on criteria such as the location of the
     busiest boarding route bus stop (excluding school children) and the location of the main business centre in
     the town CBD.

3.   The first journey of a morning can be one way into the town centre and the last trip of an evening can be a
     one way trip out of the town cent re.

4.   Refers to coastal towns.

Table 1b Proposed Country Town1 Service Levels
For routes where the terminus is less than 2kms from the town centre 2
                                                        3
Town population          Average number of return journeys per route
                         Monday - Friday      Saturday             Sunday
7,500 - 10,000           3                    -                    -
10,000 – 15, 000         3                    -                    -
15,000 – 20, 000         4                    2                    -
20,000 – 25, 000         4                    2                    -
25,000 – 30, 000         5                    2                    -
                                                                     4
30,000 +                 6                    2                    2

Notes

1.   A “country town” is defined in the Cont ract.

2.   The “town centre” is to be defined in each Contract, but will be based on criteria such as the location of the
     busiest boarding route bus stop (excluding school children) and the location of the main business centre in
     the town CBD.

3.   The first journey of a morning can be one way into the town centre and the last trip of an evening can be a
     one way trip out of the town cent re.

4.   Refers to coastal towns.

        These service levels are intended as a minimum level of service across the Contract Service


                                    34        Rural & Regional Bus Service Contract B
          Region. It will be necessary for operators to consider the local conditions in designing
          services to meet local needs. Factors to include when assessing the appropriateness of the
          Guidelines for local conditions should include, but not be limited to:

          -   The socio demographic structure of the country town, with particular consideration given
              to low income groups, indigenous and culturally and linguistically diverse (CALD)
              communities, youth and aged populations in the region.

          -   The level of services provided by other transport operators including community transport
              providers, taxis and CountryLink.
          -   The location and opening times of business activities and other e ntertainment
              destinations.
         Services should be co-ordinated with other transport services in the region that are provided
          during the operator‟s normal service hours, for example train/CountryLink services, other
          local, regional and long distance bus and coach services.
         Services should be designed to meet local demands including tourists, special events and
          other specific demands such as school students in university towns, jail or hospital locations
          and visiting hours.
         The span of hours and definitions of “peak” and “off-peak” times will be determined in line
          with the business and retail hours of the country town. As a minimum services will be
          provided from 7.30 am to 5.30 pm, but operators should consider local needs when planning
          services. For example, some weekend and night services should be provided where there is
          a demand to local shopping centres and for entertainment purposes.
         There is also flexibility in the average service levels across the Contract Service Region,
          enabling the operator to most efficiently meet local needs. As an example an operator may
          decrease services on a low patronage route and provide Friday/Saturday night services or
          increase services during the day on other routes.
         No service on any route however should fall below 60% of the proposed guideline.

         The total number of services delivered to a country town cannot be reduced without the
          approval of the Director General.
3.3       Timetable and Service Information

As a general rule:

         Where there is more than one operator in a country town, operators are to work co-
          operatively to produce one co-ordinated timetable for the town services.
         Where there are multiple routes servicing a common area, unique route numbers for each
          route are to be displayed.
         Timetables are to include route maps. These will have to comply with any standards
          developed by the Ministry of Transport.
         All timetables are to be provided on the bus operator‟s internet site(s), to any telephone or
          online transport information service established for the purposes of Rural and Regional New
          South Wales, the local council, tourist information centres and other local information centres
          as relevant.
3.4       Flexible transport services



                                 35       Rural & Regional Bus Service Contract B
Consideration may be given to alternative types of services offering greater flexibility than fixed
route, fixed timetable services - such as dial and ride, divert on demand, and „roam zones‟ or
substituting with taxi services.

As a general rule:
Flexible transport services will be considered when:
          -   an ongoing pattern of low patronage, that is not responsive to service growth strategies,
              exists;
          -   the service is not sustainable and is impacting on the overall sustainability of the network;
          -   opportunities for community transport providers to play a role have been explored; and

          -   passengers will be able to access a suitable service and will not be unduly
              disadvantaged.
3.5       Growth Areas

Bus services in new residential developments are to be designed and incorporated into Contract B
services as soon as practicable.
As a general rule:

         Where a new development falls within or adjacent to a country town, or the urban centre or
          locality of a country town (shown in Schedule 5) is expanded or there is demand for non
          school services outside the country town, then the country town of the country town operator
          will be extended to cover the additional Urban Region.
         Where a growth area is not continuous with, or immediately adjacent to, the current boundary
          of a country town and could reasonably be serviced by multiple operators, those operators
          should, in the first instance, develop a plan for the delivery of services for consideration by
          the Ministry of Transport. In the event that operators are unable to agree, or are unable to
          develop a suitable plan for servicing the growth area, the Ministry of Transport will develop a
          suitable plan for servicing the growth area and allocate the services, and or areas, to the
          operator/s who are able to most efficiently and effectively service the area.
         Where a new service is required for school students within a country town or urban centre
          locality to travel to schools outside the country town or urban centre locality and there is no
          existing contractual arrangement in place for such a service and those school students could
          be reasonably serviced by the country town operator, the country town operator's services
          shall be extended to cover that service.
3.6       Community Consultation

In designing and reviewing bus services the operator must involve the local community as a means
of ensuring local transport demands are taken into account.
As a general rule:

         Community consultation, in the form of a community forum, must be held as part of the three
          yearly service review.
         Consultation in the event of a material change to services proposed includes consulting with
          the local council, schools and other key stakeholders in the local community likely to be
          affected by the change.



                                  36       Rural & Regional Bus Service Contract B
        Operators are to consult with the community and other transport providers (e.g., other bus
         operators, taxi operators, community transport) in determining the demand for services in the
         Contract Service Region.
        Operators are to participate in Regional Transport Forums where a forum exists in their area.

        Material changes require a minimum of two weeks notice to be given to the public prior to
         implementing the change
        Minor changes require a minimum 2 business days notice to be given to the public prior to
         implementing the change
        The process for communicating service changes will be specified in the Contract.
4.       VILLAGE-TO-TOWN SERVICES

A village is an urban centre/locality with a population of between 500 and 7,500 as referenced by
population data released by the Australian Bureau of Statistics.
As a general rule:
        Village-to-town services are services between villages and country towns where the most
         direct road distance between them is 40kms or less.

        Village-to-town service levels may not apply to services that provide journeys greater than
         40kms for each passenger.
        Where practical, villages should be linked to the nearest country town centre (or the country
         town centre(s) which provide essential services eg shopping, medical) for the village
         residents.
        The service levels in Table 2 are proposed for villages with populations (as at the last
         Census) of between 500 and 7,500.




Table 2. Proposed Village-to-Town Service Levels
Village                  Required number of daily return journeys
Population
                         Monday – Friday         Saturday                    Sunday
500 – 1,000              1                       -                           -
1,000 – 1,500            2                       -                           -
1,500 – 2,500            3                       -                           -
2,500 – 4,000            3                       -                           -
4,000 – 6,000            4                       -                           -
                                                   1                           1
6,000 +                  4                       2                           2

Note:

1.       Refers to routes operating to service beach resorts

        Service planning needs to comply with the following principles:

         -   Services to be designed according to patronage potential along the route. If a village-to-


                                  37        Rural & Regional Bus Service Contract B
           town bus service operates through more than one village, then the patronage potential of
           the bus service is the sum total of the population of each village through which the service
           operates.

       -   Where only one return service is required to be provided in a day, the service should
           allow the passengers an appropriate amount of time to carry out the normal requirements
           for personal business.

       -   Where more than one return service is required to be provided in a day, the services
           should be distributed as uniformly as possible throughout the day.
       -   Where a CountryLink service, a deregulated service or any oth er competing bus service
           (or comparative transport mode) traverses the village-to-town route at convenient times
           during the day, these services may be discounted for the calculation of compliance with
           the required service level.

       -   Villages that are serviced by a single operator within reasonable proximity to each other
           and/or a country town may be combined together to form a country town area where
           regular country town service levels should be provided.
5.     TOWN-TO-TOWN SERVICES

There is no service level for country town-to-town services because of the large diversity in the
demand drivers for country town-to-town services. The size, services offered, competing demands,
local influences and distance between country towns makes it difficult to prescribe service level
guidelines.
It is therefore suggested that no service levels be set for country town-to-town bus services. Instead,
provision of bus services be left to the discretion of the operators but services that exist prior to July
2008 should be contracted with a review mechanism to be put in place to accommodate changes in
demand over time.
6.     SCHOOL SERVICES
6.1 INTRODUCTION

There is an obligation for bus operators to provide reasonable access for all school students, both
SSTS eligible or fare paying, to and from the school of choice from within the Contract Service
Region or from along the contracted line of route.
Dedicated School Services should be made attractive to school students so that bus travel is a
viable alternative to the private car and other forms of school student transport. Out of country town
bus routes will follow main roads wherever possible with minimum deviations to allow for faster
journey times for the majority of school students.

The planning of Dedicated School Services should be based on a maximum walking distance for
school students of 400 metres from home to the nearest bus route. However, this may be extended
where the majority of passengers will be inconvenienced for a diversion of one or two passengers.

Transfers and interchanges are a necessary part of school bus route design but design principles
should aim to minimise transfers/interchanges. The smooth co-ordination of services at pick up and
drop off points and at transfers and interchanges is a major consideration in designing Dedicated
School Services.
Dedicated School Services must be designed within the constraints of the regulations applicable to
vehicle design and capacity (both National and State such as ADRs and NSW Technical
Specifications). As such, Dedicated School Services will be designed on a 3 for 2 carrying capacity


                                38       Rural & Regional Bus Service Contract B
for infants and primary school students where bus size and design permits. Buses will not exceed
80kph with standees onboard.
School students may be carried on regularly scheduled buses or special buses to provide transport
to school students (generally known as a “Dedicated School Service”). The decision to run a
“Dedicated School Service” is made by the operator and is based on route network, school student
numbers/locations and available bus capacity.

Dedicated School Services may include Lines of Route extending outside of the country town
boundary.
The planning of Dedicated School Services should represent a balance between the needs of
schools and school students and the overall needs of the network.
6.2.1   Service Design

6.2.1.a. Network Design Principles

In Rural and Regional areas, route services are to be planned as part of the school bus network and
not separate from it.
In Urban Regions school services should be designed to integrate with country town route services
throughout both morning and afternoon school peaks to maintain frequency, availability and
patronage on regular route services and maximise efficient use of resources. The objective is to
maintain good regular route services throughout the school peak with any spare capacity being used
for school students. Minor deviations from regular routes to service schools are acceptable to
achieve efficient use of vehicle availability and capacity.
Dedicated School Services in and around Urban Regions should be designed as a network of
services. Where there is more than one operator, operators are required to work co-operatively.
Design principles should be based on efficient and effective out of country town school route design
to eliminate duplication of services. The country town network operator should work with the out of
country town operators to avoid duplication and inefficiencies within the country town by co-
operatively rearranging services, for example by sub contracting the spare capacity of the out of
country town bus services.

Where there is a need to provide additional capacity outside the country town, consideration must be
given to all existing services both urban and out of country town to provide the most effective service
at the lowest cost to government.

In out of country town areas route services in school times are planned around the school services.
In Urban Regions it is more efficient to plan route services first and fit the schools services around
the route services.

The aim of the school service network is to provide the opportunity for most school students to get to
school. Exemptions may apply, for example:
       Where the school student travels long distances from their home to a school located in a
        regional centre.
       Location of the school is remote from the main country town and outside of the bus network
        or Contract Service Region.

Although efficient school bus design will have the aim of fully loading a school bus direct to school or
schools to minimise journey time, no school can demand exclusive school buses. Efficient bus
utilisation requires a mix of infants/ primary/ secondary school students and a mix of schools on any



                               39        Rural & Regional Bus Service Contract B
bus.
The Operator accepts that, from time to time, it will be necessary to extend or change a Contract B
line of route school service to accommodate new or additional school students.

6.2.1.b. Diversions
Minimising total journey times (including wait time) for school students travelling longer distances
should be a primary design consideration. Design principles acknowledge that someone has to be
first on and last off but individual demands along the route impact on the furthest traveller. All
Dedicated School Services should be designed to deliver efficient, fast and direct school services.
To achieve this aim the benefit of the majority prevails over the good of the individual. The affect of
multiple diversions is cumulative and should only be considered in those circumstances where the
travel times are reasonable for the passengers travelling the longest distance.
After the most direct school route services are planned, diversions are to be considered based on
demand and practicality of operation.
In a country town Dedicated School Services should be designed to provide direct services to
schools avoiding circuitous routes and diversions into areas where school student numbers are low.

For out of country town services considerations should be given to the following factors when
implementing diversions:
      The number of school students to benefit and the distance from the existing route.

      Impact of the diversion on the total journey time of school students on the bus.

      The length of the diversion should be minimised.

      The directness of the route should be given priority.

      Road condition and availability of a safe and suitable place for turning the bus.
      Cost effectiveness for the Ministry of Transport.

In achieving the above aims it needs to be recognised that school students may need to cross roads
and walk to the nearest appropriate bus stop.
6.2.1.c. Integration With School Times
It is the responsibility of the operator to liaise with schools where applicable on issues such as
school commencement and finishing times and school student holiday periods to jointly ensure
school students receive an appropriate bus service.
Arrival time at school and waiting time after school should be designed so that it is not unreasonable
for school students. As a general rule, 30 minutes should be aimed for as a maximum arrival prior to
main bell in the morning and departure after main bell in the afternoon.
In situations where a school has multiple bell times, operators should determine the most
appropriate pick up times and design services that provide a reasonable outcome for the majority of
school students. Operators are not obligated to provide duplicated pick up times.
As a general rule, changes to bell times will be considered following community consulation as part
of a Network Review or unless the operator(s) can accommodate the change efficiently without
disruption to other school services.




                               40        Rural & Regional Bus Service Contract B
6.2.1.d. Transfers and Interchange
It is acknowledged that transfers and interchange of school students are a necessary part of the
school bus network. Transfers are generally described as direct bus to bus changes of school
students and interchange is where school students wait at a common point before joining another
service.
Transfers and interchanges are to be minimised where possible. If the school student is going to
their nearest school it is expected that not more than one interchange will be necessary. This may
not be possible for school students going to more distant or remote schools.
In most cases it is possible to provide direct services to the zoned government primary and high
schools due to the relatively high numbers of school students travelling to these schools.
Preferences should be given to giving direct services to primary schools over high schools where
there is a choice of which school will get the direct service.

Transfers are not always possible without disrupting the journey of other school students, but
operators should instruct their drivers to maintain communication with each other to facilitate the
transfer.

Transfers and interchanges for infants and primary school students should be limited.


6.3. REVIEW OF SERVICES

The operator must undertake a regular review of school services with reviews at least every 3 years
in line with the review of the route network.
In addition, reviews must be undertaken within 12 months after the Director General has notified the
Operator of the release by the Australian Bureau of Statistics of population data compiled from a
Census which will alter the Contract Service Region boundary as identified in Schedule 5 or change
the Services.
7.     ALLOCATION OF NEW SCHOOL STUDENTS

Unless there is an existing agreement between the relevant operators providing services along
shared routes that deals with growth along or adjacent to those shared routes, any growth along or
adjacent to those shared routes will be serviced first by any Contract A operators using their existing
category bus. Once the number of students on all of the relevant Contract A buses reaches the
maximum under the relevant categories set out in Schedule 12, any new students along or adjacent
to those shared routes will be serviced by the relevant Contract B operator.
Contract A operators will only be allowed to increase the category of a bus along non-shared parts of
routes serviced under their Contract. In the event a Contract A operator reaches the relevant
category capacity, any new students along the shared route will be allocated to other Contract A
operators until such time as their capacity is reached and then to the relevant Contract B operator.
A Contract A operator will not be allowed to increase its bus category until all the students along the
shared route have been allocated as described above and the increased capacity is required for the
non-shared part of the route.




                               41       Rural & Regional Bus Service Contract B
Schedule 11
Neighbouring services

In undertaking any Service Review or considering any other changes to Services, the Operator must, in good
faith, consult with all Neighbouring Service Providers listed in this Schedule 11 who are likely to be affected
by any matter considered in the Service Review.
In addition to this general requirement:

Schedule 11.1
The Operator must use its best endeavours to negotiate and execute Neighbouring Service Provider
Agreements, within 12 months of the Service Commencement Date, with each of the following Neighbouring
Service Providers:
The Operator must comply with the terms of any executed Neighbouring Service Provider Agreement.

Schedule 11.2
The Operator must, in good faith, in accordance with the Service Planning Guidelines, consult with the
following Neighbouring Service Providers within 12 months of the Service Commencement Date, to achieve
(where practicable) a coordinated use of resources and improved delivery of services:




                                  42        Rural & Regional Bus Service Contract B
43   Rural & Regional Bus Service Contract B
Schedule 12
Bus age and bus replacement




                         44   Rural & Regional Bus Service Contract B
                                                          BUS AGE CATEGORY AND REPLACEMENT

Contract Type            Calcul ati on of bus average age        Bus Average Age                             Contract A: maxi mum age prior to repl acement (note:
                                                                 in Years                                    buses not to exceed average age)
Contract A               Over the life of the Contract           8                                           N/A
Single Bus
Category 1 or 2
Contract A : Single      Over the life of the Contract           12                                          N/A
Bus
Category 3 or 4
Contract A               Over the life of the Contract           8                                           15 years
Multiple Buses
Category 1 or 2
Contract A :             Over the life of the Contract           12                                          25 years
Multiple Buses
Category 3 or 4
Contract A:              Over the life of the Contract           Separate calcs                              15 years: Cat 1 & 2
Multiple Buses                                                   8: Cat 1 & 2                                25 years Cat 3 & 4
Mixed Category 1 o r 2
and 3 or 4                                                       12: Cat: 3 & 4
Contract B :             Anniversary of Service                  12                                          N/A
Single Contract B only   Co mmencement Date
Contract B :             Anniversary of Service                  12                                          N/A
Multiple B Contracts     Co mmencement Date
in close pro ximity.
Contracts B & A          Anniversary of Service                  12: Contract B buses and Contract A Cat 3   25 years for Contract A buses only.
Category 3 or 4          Co mmencement Date - Contract B         & 4 buses amalgamated for calcs (Operator
                         including Contract A Cat 3 & 4.         election)
Contracts B & A          Anniversary of Service                  Separate calcs                              15 years for Contract A buses only
Category 1 or 2          Co mmencement Date – Contract B         12: Contract B buses
                         Over the life of the Contract –         8: Contract A buses
                         Contract A
Contracts B & A          Anniversary of Service                  Separate calcs                              25 years for Contact A Cat 3 & 4 buses only
Category 1 or 2 and 3    Co mmencement Date – Contract B         12: Contract B buses and Contract A Cat 3   15 years for Contract A Cat 1 & 2 buses only
or 4                     including Contract A Cat 3 & 4.         & 4 buses amalgamated for calcs (Operator
                         Over the life of the Contract –         election)
                         Contract A Cat 1 & 2                    8: Contract A Cat 1 & 2 buses

NOTE:           1. All calculations are based on completed years.
                2. Buses can be replaced within 12 months of average age and maximum age.
                                   45         Rural & Regional Bus Service Contract B
                                                          PART 2 - CATEGORY INFORMATION


Category   Max AASC (for    Mi ni mum                Maxi mum pri mary           Maxi mum high school       Funded   Seat belts compulsory in new
           payment          AASC for                 school students#            students#                  life     bus
           determination)   repl acement buses
Cat 1*     8-13             13                       13                          13                         13       Yes

Cat 2      14-24            24                       32                          24                         13       No
Cat 3      25-41            41                       61 + Authorised             41 + Authorised Standees   20       No
                                                     Standees
Cat 4      42+              57                       85 + Authorised             57 + Authorised Standees   20       No
                                                     Standees


NOTE:        1.     AASC is the Authorised Adult Seating Capacity excluding the driver.
             2.     Authorised Standees is the number of passengers authorised to be carried standing as specified in a certificate issued by the manufacturer of
                    the bus or by a consulting engineer approved by the RTA (clause 94(4) of the Passenger Transport Regulation 2007).
             3.     # For category 2, 3 and 4 buses – [for replacement buses] the Operator must ensure that the seating and any modifications will not be of a
                    design or configuration as to make it impractical for the loading of passengers in accordance with clause 94(2)(b) of the Passenger
                    Transport Regulation 2007. If the Operator acquires a bus that has seating or modifications that make compliance with clause 94(2)(b) of
                    the Passenger Transport Regulation 2007 impractical, the Director General will be under no obligation to increase monthly payments where
                    an operator has been required to replace that contract vehicle to provide the required AASC for the bus category and meet passenger
                    demand..
             4.     *For category 1 buses without seat belts subject to clause 94(3), clause 94(2)(b) of the Passenger Transport Regulation 2007 applies when
                    loading passengers...




                             46        Rural & Regional Bus Service Contract B
Execution


Duly executed by the Director-General for
the time being of the New South Wales
Ministry of Transport for and on behalf of
The State Government of New South
Wales in the presence of:



Signature of witness                                       Director-General of the New South Wales
                                                           Ministry of Transport



Name of witness (please print)                             Name (please print)


Option 1 – if the Operator is a company but NOT a proprietary company that has a sole director
who is also the sole company secretary
Executed by
[Operator] ABN [insert] acting by two
directors / a director and secretary:



Signature of director                                      Signature of secretary/other director



Name of director (please print)                            Name of secretary/other director (please
                                                           print)


Option 2 – if the Operator is a proprietary company that has a sole director who is also the sole
company secretary
Executed by
[Operator] ABN [insert] by its sole
director:




Name of sole director and secretary in full,               Signature of sole director and secretary
who states that he or she is the sole director
and sole company secretary of [insert
company name] ABN [insert]




                                   47            Rural & Regional Bus Service Contract B
Option 3 – if the Operator is trading as a partnership
Executed for and on behalf of [insert
partnership name] in the presence of:




Signature of witness                                 Signature of partner



Name of witness (please print)                       Name of partner (please print)


Option 4 – if the Operator is a proprietor or proprietors trading under a business or trade name,
each proprietor must sign below:
Signed by [insert proprietor's name] in
the presence of:




Signature of witness                                 Signature of proprietor



Name of witness (please print)                       Signature of proprietor



                                                     Signature of proprietor



                                                     Signature of proprietor


Option 5 – if the Operator is an individual trading under his/her own name:
Signed by [insert name of individual] in
the presence of:




Signature of witness                                 Signature of individual



Name of witness (please print)




                                 48        Rural & Regional Bus Service Contract B
Annexure
Existing Service Contract Termination Agreement




                          49      Rural & Regional Bus Service Contract B

				
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