Agenda of Audit and Risk Committee

PALMERSTON NORTH CITY COUNCIL

Audit and Risk Committee MEETING

19 November 2018

Order of Business

NOTE: The Audit and Risk Committee meeting coincides with the ordinary meeting of the Finance and Performance Committee. The Committees will conduct business in the following order:

- Finance and Performance Committee

- Audit and Risk Committee

1. Apologies

2. Notification of Additional Items

Pursuant to Sections 46A(7) and 46A(7A) of the Local Government Official Information and Meetings Act 1987, to receive the Chairperson’s explanation that specified item(s), which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded, will be discussed.

Any additions in accordance with Section 46A(7) must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.

Any additions in accordance with Section 46A(7A) may be received or referred to a subsequent meeting for further discussion. No resolution, decision or recommendation can be made in respect of a minor item.

3. Declarations of Interest (if any)

Members are reminded of their duty to give a general notice of any interest of items to be considered on this agenda and the need to declare these interests.

4. Public Comment

To receive comments from members of the public on matters specified on this Agenda or, if time permits, on other Committee matters.

(NOTE: If the Committee wishes to consider or discuss any issue raised that is not specified on the Agenda, other than to receive the comment made or refer it to the Chief Executive, then a resolution will need to be made in accordance with clause 2 above.)

5. Deputation - Palmerston North Age Friendly Group Page 7

6. Confirmation of Minutes Page 9

“That the minutes of the Audit and Risk Committee meeting of 20 August 2018 Part I Public be confirmed as a true and correct record.”

7. AMP Update - Footpath Condition Rating & Renewal Programme Page 15

Memorandum, dated 1 November 2018 presented by the Acting Parks and Reserves Manager, Phil Walker.

8. Use of Closed Circuit Television Page 39

Memorandum, dated 12 June 2018 presented by the Human Resources Manager, Wayne Wilson.

9. Health and Safety - July - September 2018 Page 43

Memorandum, dated 25 October 2018 presented by the Human Resources Manager, Wayne Wilson.

10. Audit New Zealand Report to the Council Page 57

Memorandum, dated 11 October 2018 presented by the Finance Manager, Stuart McKinnon.

11. Internal Audit - IT Disaster Recovery Plan (DRP) Page 83

Memorandum, dated 26 October 2018 presented by the Senior Internal Auditor, Vivian Watene.

12. Management Agreed Corrective Action Implementation September 2018 YTD Progress Page 89

Memorandum, dated 29 October 2018 presented by the Senior Internal Auditor, Vivian Watene.

13. Committee Work Schedule Page 113

14. Exclusion of Public

To be moved:

“That the public be excluded from the following parts of the proceedings of this meeting listed in the table below.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under Section 48(1) for passing this resolution

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public as stated in the above table.

Also that the persons listed below be permitted to remain after the public has been excluded for the reasons stated.

Chief Executive (Heather Shotter), Chief Financial Officer (Grant Elliott), Acting Chief Infrastructure Officer (Ray Swadel), Acting General Manager – Strategy and Planning (David Murphy), General Manager - Community (Debbie Duncan), Acting General Manager – Customer (Sheryl Bryant), Human Resources Manager (Wayne Wilson), General Manager - Marketing and Communications (Sacha Haskell), Acting Operations Manager (Ray McIndoe) because of their knowledge and ability to provide the meeting with advice on matters both from an organisation-wide context (being members of the Council’s Management Team) and also from their specific role within the Council.

Legal Counsel (John Annabell), because of his knowledge and ability to provide the meeting with legal and procedural advice.

Acting Governance and Support Team Leader (David Murphy) and Committee Administrators (Penny Odell, Rachel Corser and Courtney Kibby), because of their knowledge and ability to provide the meeting with procedural advice and record the proceedings of the meeting.

[Add Council Officers], because of their knowledge and ability to assist the meeting in speaking to their report and answering questions, noting that such officer will be present at the meeting only for the item that relate to their respective report.

[Add Third Parties], because of their knowledge and ability to assist the meeting in speaking to their report/s [or other matters as specified] and answering questions, noting that such person/s will be present at the meeting only for the items that relate to their respective report/s [or matters as specified].

Palmerston North City Council

Minutes of the Audit and Risk Committee Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 20 August 2018, commencing at 9.00am

Members

Present:

Councillor Vaughan Dennison (in the Chair), The Mayor (Grant Smith) and Councillors Susan Baty, Adrian Broad, Gabrielle Bundy-Cooke, Lew Findlay QSM, Jim Jefferies and Lorna Johnson and Bruno Petrenas.

Non Members:

Councillors Brent Barrett, Rachel Bowen, Leonie Hapeta, Duncan McCann, Karen Naylor, Aleisha Rutherford and Tangi Utikere.

Apologies:

The Mayor (Grant Smith) (Council Business) and Councillor Susan Baty (Council Business).

Councillor Susan Baty was not present when the meeting resumed at 10.40am. She was present for clause 16.

Councillor Duncan McCann was not present when the meeting resumed at 10.40am. He entered the meeting again at 10.48am during consideration of clause 18. He was not present for clause 17.

16-18

Apologies

Moved Vaughan Dennison, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 16-18 above was carried 13 votes to 1, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

Against:

Councillor Lew Findlay QSM.

Did not vote:

Councillors Gabrielle Bundy-Cooke and Leonie Hapeta.

The meeting adjourned at 9.01am

The meeting resumed at 10.40am

When the meeting resumed Councillors Susan Baty and Duncan McCann were not present.

17-18

Confirmation of Minutes

Moved Vaughan Dennison, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1. That the minutes of the Audit and Risk Committee meeting of 21 May 2018 Part I Public be confirmed as a true and correct record.

Clause 17-18 above was carried 11 votes to 1, with 2 abstentions, the voting being as follows:

For:

Councillors Brent Barrett, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Bruno Petrenas and Aleisha Rutherford.

Against:

Councillor Karen Naylor.

Abstained:

The Mayor (Grant Smith) and Councillor Tangi Utikere.

Councillor Duncan McCann entered the meeting at 10.48am

18-18

Internal Audit Annual Report 2017/18

Memorandum, dated 10 July 2018 from the Senior Internal Auditor, Vivian Watene.

Moved Vaughan Dennison, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1. That the Committee note the completion of the 2017/18 Internal Audit Plan, on time and within budget.

Clause 18-18 above was carried 14 votes to 0, with 1 abstention, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

Abstained:

Councillor Duncan McCann.

19-18

Risk Management Progress YTD June 2018

Memorandum, dated 13 July 2018 from the Senior Internal Auditor, Vivian Watene.

Moved Vaughan Dennison, seconded Lorna Johnson.

The COMMITTEE RESOLVED

1. To note the Strategic Risk profile and its risk management progress to YTD June 2018 (Appendixes A and B of the report dated 13 July 2018 and titled Risk Management Progress YTD June 2018).

2. To note the key Operational risk management progress to YTD June 2018 (Appendix C of the report dated 13 July 2018 and titled Risk Management Progress YTD June 2018)

Clause 19-18 above was carried 14 votes to 1, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

Against:

Councillor Leonie Hapeta.

20-18

Operational Risk Profile Review 2018

Memorandum, dated 16 July 2018 from the Senior Internal Auditor, Vivian Watene.

Moved Vaughan Dennison, seconded Lorna Johnson.

The COMMITTEE RESOLVED

1. That the Committee note the outcome of Management’s Operational Risk Profile review.

Clause 20-18 above was carried 14 votes to 1, the voting being as follows:

For:

Against:

Councillor Leonie Hapeta.

21-18

Business Continuity Planning PNCC update

Memorandum, dated 26 July 2018 from the Head of Emergency Management, Stewart Davies.

The Committee changed the frequency of reporting from 6 monthly to quarterly.

Moved Vaughan Dennison, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1. That the Audit & Risk Committee note this report, the programme for and progress of the Business Continuity Planning within the organisation.

2. That Business Continuity Planning update be reported to the Audit and Risk Committee quarterly as part of the Audit and Risk report.

Clause 21-18 above was carried 15 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

22-18

Asset Management Planning Update

Memorandum, dated 2 August 2018 from the Special Projects Manager, Phil Walker.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the Committee note how the asset management maintenance and renewal planning processes were applied to the 2017 Asset Management Plans, the proposed improvements to condition and performance monitoring to inform future asset planning and the way in which budgets are applied to projects having both Capital Renewal and Capital New components.

2. That the Committee endorse the following reporting schedule for asset management planning issues to Audit & Risk for 2018-19:

19 November 2018 - AMP Update: Footpath condition rating and renewal programme

18 February 2019 - AMP Update: The condition and performance of the three Waters assets

20 May 2019 – AMP Update: Asset management planning in the Property area / proposed 2019/20 AMP update schedule for members consideration

3. That progress and expenditure on renewals against the detailed AMP renewal schedules be reported back to the Audit and Risk Committee at the end of each financial year.

Clause 22-18 above was carried 15 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

23-18

Amendment to Committee Work Schedule

Notice of Motion by Councillor Vaughan Dennison.

Moved Vaughan Dennison, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1. That resolution 15.2 of the Audit and Risk Committee meeting of 21 May 2018 “that the summary documents for the Council's Asset Management Plans be added to the Audit & Risk Committee Work Schedule” be amended to read “That a rolling audit of the Asset Management Plans be established and that this item remain on the committee's work schedule till they are completed” and the Chairperson and Deputy Chairperson be authorised to amend this wording further if required.

Clause 23-18 above was carried 15 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

24-18

Health and Safety - April - June 2018

Memorandum, dated 7 August 2018 from the Human Resources Manager, Wayne Wilson.

Moved Vaughan Dennison, seconded Tangi Utikere.

The COMMITTEE RESOLVED

1. That the Audit and Risk Committee note the information contained within the report dated 7 August 2018 and titled `Health and Safety – April – June 2018.’

Clause 24-18 above was carried 15 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

25-18

Committee Work Schedule

Moved Vaughan Dennison, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1. That the Audit and Risk Committee receive its Work Schedule dated August 2018.

Clause 25-18 above was carried 15 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

The meeting finished at 11.52am

Confirmed 19 November 2018

Chairperson

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Audit and Risk Committee

MEETING DATE: 19 November 2018

TITLE: AMP Update - Footpath Condition Rating & Renewal Programme

DATE: 1 November 2018

Presented By: Phil Walker, Acting Parks and Reserves Manager, Infrastructure

APPROVED BY: Ray Swadel, Acting Chief Infrastructure Officer

RECOMMENDATION(S) TO Audit and Risk Committee

1. That the Committee note:

a. how the asset management maintenance and renewal programmes provide the required level of service and maintain the service potential of the footpath assets.

b. that a ‘best practice’ condition methodology is now being used to inform a targeted and more effective maintenance and renewal programme of work particularly for safety related poor and very poor footpath condition.

c. that the medium and longer term programme footpath renewal needs will be reassessed in light of the condition surveys for informing the 2020 Roading & Parking Asset Management Plan.

d. that a baseline target for the footpath performance measure reporting of the 2018-28 10 Year Plan will be established by the end of the 2018/19 financial year.

1. ISSUE

1.1 As part of its oversight of asset management planning the Audit & Risk Committee of 20 August 2018 resolved: that a rolling audit of the Asset Management Plans be established and that this item remain on the Committee’s work schedule until they are completed.

1.2 To give effect to this resolution, the Committee also endorsed a reporting schedule of asset management planning issues for 2018-19 as follows:

19 November 2018 – AMP Update: Footpath condition rating and renewal programme

18 February 2019 – AMP Update: the condition and performance of the three Waters assets

20 May 2019 – AMP Update: AM planning in the Property area and proposed 2019/20 AMP update schedule for members consideration

1.3 In addition, progress and expenditure on renewals against the detailed AMP renewal schedules is to be reported back to the Audit and Risk Committee at the end of the financial year.

1.4 The Asset Management report of 20 August 2018 provided the Audit & Risk Committee with a general overview on how maintenance and renewal schedules and budgets have been determined and how renewal budgets are applied when there are elements of both capital new and renewal works.

1.5 This report covers in more detail the condition of the City’s footpaths and the maintenance and renewal work that is undertaken to provide the required level of service and to ensure that the overall service potential of the footpaths is being maintained.

2. BACKGROUND

2.1 The purpose of footpath asset management citywide is to provide for a suitable, accessible, safe and well-maintained footpath network that meets the needs of the community.

2.2 The performance measure set as part of the 2018-28 10 Year Plan is the percentage of footpaths that meet Council standards, with a baseline target to be determined as part of an improved system for monitoring footpaths standards. The Council’s Roading & Parking Asset Management Plan defines this standard as the percentage of footpaths meeting a grade 4 or 5 condition rating.

Footpath Assets

2.3 As determined by the recent footpath condition survey the City has a total footpath length of 576.5km which is made up of 2.7km of chip seal, 0.8km of interlocking blocks, 357km of concrete, and 216km of asphalt.

Maintenance and renewal programmes

2.4 Footpath maintenance and renewal programmes are designed to provide the required level of service to the user while keeping up the overall condition of the footpath assets. There is often a balance between maintenance and renewal work to optimise overall expenditure but with a strong focus on safety with prioritisation to remove unsafe conditions and hazards that might cause tripping and slipping injuries.

2.5 Footpath maintenance focuses on fixing specific individual faults that are identified as unsafe and cause tripping or slipping hazards. Maintenance work includes grinding work on concrete paths and trip hazard repairs (replacement of short lengths up to 5m in length). Where tree roots are associated with faults, the repair method depends on whether the tree root can be removed or retained. Maintenance work in the order of $200,000 per annum is undertaken city wide by Council’s concrete team.

2.6 Footpath renewals are about renewal of sections of footpaths where multiple faults and deterioration have been identified and where it is cheaper to renew the whole footpath length rather than continue to apply maintenance. Footpath section lengths vary depending on road length & materials. The condition rating attributed to the section of the footpath is the main driver for the renewal programme rather than the age of the footpath. This reflects the nature of the asset which is very lightly loaded but there are multiple causes of footpath defects e.g. tree roots, subsidence and utility provider dig-ups. On average $675,000 of renewal work is undertaken per annum city wide by both Council’s concrete team and private contractors. (> 2 Km per annum)

Cost of maintaining and renewing footpaths

2.7 Expenditure over the last 10 years is outlined as follows:

Footpath maintenance and renewal expenditure for period 2008-2018
	2008/09	2009/10	2010/11	2011/12	2012/13	2013/14	2014/15	2015/16	2016/17	2017/18	total
Maintenance & Operations (000’s) *(includes CBD Cleaning)*
Actual	$454	$500	$553	$601	$472	$641	$421	$397	$472	$501	$5,012
Budget	$366	$489	$497	$482	$458	$470	$480	$323	$380	$425	$4,370
Renewal (000’s)
Actual	$376	$401	$352	$368	$292	$303	$645	$856	$275	$922	$4,790
Budget	$436	$416	$433	$450	$380	$520	$403	$650	$665	$684	$5,037

2.8 Maintenance expenditure for footpath repairs has been relatively constant each year at $200,000 per annum, with the overall spend marginally higher than budgets. The Maintenance and Operations expenditure shown above includes environmental maintenance from operating programmes and CBD cleaning, over and above budgets spent on repairs to footpaths.

2.9 The expenditure on renewals has varied with work being carried over in some years however the overall quantum of renewals has been generally as budgeted (95%). It is also noted that over the past four years there has been a significant increase in renewal expenditure as the Council has increased the footpaths renewal budget.

2.10 Budgets for footpath maintenance, operations and renewals over the next 10 years are outlined as follows.

Forecast footpath maintenance and renewal expenditure in the 2018-28 10 Year Plan
	2018/19	2019/20	2020/21	2021/22	2022/23	2023/24	2024/25	2025/26	2026/27	2027/28
Maintenance & Operations (000’s)
Maintenance	$210	$214	$219	$224	$229	$235	$241	$247	$254	$261
Operations (eg CBD) #	$349	$390	$403	$430	$469	$497	$510	$558	$597	$613
Total	$559	$604	$622	$654	$698	$731	$750	$805	$851	$874
Renewal (000’s)
Total	$690	$715	$752	$833	$930	$1,120	$1,148	$1,178	$1,210	$1,244

# Incorporates environmental maintenance from operating programmes and CBD cleaning which is currently not specifically funded through NZTA co-funding rules.

2.11 Maintenance budgets are proposed to remain at similar rate, while renewal expenditure has been planned to increase over the next 6 years to meet the increasing renewal needs informed by condition assessments for footpaths across the City.

Level of service improvements

2.12 Footpath configurations are improved over time to provide safe access and connections for the users of the City’s footpath networks. Capital new budgets have been allocated to provide for new footpath links, while safety improvements for existing and new pedestrian crossing facilities are generally managed through Programme 279 – City-wide Minor Projects.

2.13 Where connectivity issues adjoin proposed renewal programmes, upgrades are addressed simultaneously using Programme 279. However, where an existing pedestrian crossing requires repairing and relocating for safety reasons, then this work may be undertaken as part of the maintenance programme.

Customer satisfaction

2.14 Customer satisfaction with footpaths across the City is measured through both Communitrak™ surveys and monitoring of customer requests (K-Base). Communitrak™ results for footpaths have been tracked since the year 2000, where an overall minor declining trend in satisfaction has presented over this time, culminating with the latest results in 2016 of 71% satisfaction rate against an 80% target (refer graph below). Dissatisfaction relates to poor condition (uneven, cracked, broken, trees lifting, rough) and lack of maintenance, with specific safety concerns for elderly and disabled users.

2.15 Overall customer requests (K-Base) are showing a declining trend, however, the last three years are showing an increase in the number of requests for service. Most requests relate to damage and maintenance issues, where numbers range from 290 to 340 requests per annum consistently over the past eight years.

2.16 Footpaths are an asset where user experience directly relates to the condition and associated safety and accessibility needs. As such there is a lot of scrutiny regarding both condition and repair works needed. Delivery of programmes that improve customer satisfaction and reduce customer requests for service is critical to provide for an accessible, safe and well-maintained network that the community are happy with. The approach to more effective programme implementation is discussed in Section 5 of this report.

3. condition rating of footpaths

3.1 Asset management is about looking after the footpath assets over the long term as well as ensuring they provide an acceptable level of service to the community. This depends on having a good understanding of the condition and performance of the footpaths, the way in which they deteriorate and the needs of the footpath users.

3.2 Accurately capturing and grading the severity of faults on the footpath network is critical to planning for necessary maintenance repair works and the footpath renewal programme. Capturing faults is undertaken through bi-annual condition rating surveys and monitoring of customer requests. Faults are graded by severity from Grade 1 (excellent), Grade 2 (good), Grade 3 (fair), Grade 4 (poor) to Grade 5 (very poor). Remedial work is based on addressing Grade 4 (poor) and 5 (very poor) condition faults within the footpath network, and monitoring the Grade 3 (fair) faults. However, footpath use (pedestrian throughput) and risks associated with accelerated deterioration, have not to date been fully accounted for in the prioritisation process.

3.3 The 2017 AMPs were based on condition data collected in 2015, with results outlined as follows:

Condition Grade	% of footpath network (2015)
1 (excellent)	71.6%
2 (good)	19.9%
3 (fair)	6.1%
4 (poor)	1.6%
5 (very poor)	0.8%

Maintenance and renewal programmes in the 2017 Roading & Parking AMP are based on this condition rating

3.4 However, it has become apparent that although the overall service potential of the footpaths is being kept up there are some shortcomings in the condition assessment methodology particularly around the consistency of the footpath assessments and its ability to align the results to what the customer is experiencing on the network.

3.5 Recently a ‘best practice’ condition rating methodology has been developed by the Institute of Public Works Engineering Australasia (IPWEA), with a revised standard called ‘Condition Assessment and Asset Performance Guidelines for Footpaths’. Visual guides within the standard provide clear and repeatable guidance for the grading of individual faults based on a grading scale from grade 1 (very good), grade 2 (good), grade 3 (fair), grade 4 (poor), to grade 5 (very poor).

3.6 The IPWEA guideline also provides direction on overall grading of footpath sections (clusters of individual faults) and weighting the final section grades for both function (hierarchy) and use (pedestrian throughput) to prioritise the programming of both renewal and maintenance works.

3.7 Renewal programmes can then be targeted to weighted Grade 4 and 5 footpath sections, while maintenance programmes can be targeted to weighted Grade 4 and 5 individual faults that fall outside the footpath sections. The IPWEA approach does not consider age (unless age related faults are present) or visual inconsistencies such as unattractive combination of materials where there have been utility works or partial renewals undertaken.

3.8 The use of the IPWEA guideline for footpath condition assessment and asset performance has been undertaken by Auckland Transport since 2011. Auckland Transport have adopted the IPWEA approach but have modified the visual grading guide that better reflects the New Zealand situation. A copy of this guide is provided as Attachment 1.

3.9 To develop a more effective maintenance and renewal programme a condition rating survey based on the above methodology has been recently undertaken.

4. 2018 footpath condition rating survey results

4.1 Onsite Developments Limited (Onsite) were engaged to undertake a condition survey assessment of Palmerston North’s footpath network during July and August 2018. This involves a voice capture mobile footpath inspection system, where a 50cc Scooter enables a single inspector to cover good distances with minimal effort, and record every individual fault (with exact location, size, cause and severity based on a visual rating guide) using voice recognition software for data entry while driving the network.

4.2 Results from Onsite footpath condition survey work have provided both individual fault grading and an overall footpath section length grading. Individual faults that fall outside the sections within the renewal programme can be used to inform the maintenance programme, while overall section length grading is used to develop the footpath renewal programmes.

4.3 The footpath section length grading is as shown below.

Grade	Length (km)	% of footpath network surveyed (2018)
1 (excellent)	7.5	1.4%
2 (good)	279.7	50.3%
3 (fair)	248.6	44.7%
4 (poor)	17.5	3.1%
5 (very poor)	2.5	0.5%

The section length grading is based on 96% of the total network length surveyed. This assessment excludes shared paths, slippery surfaces (lichen) and obstruction faults (tree overhangs).

4.4 Compared to 2015 dataset used in the 2017 AMP, this shows a slight decrease in Grade 5 section faults (0.3% reduction), a doubling of Grade 4 section faults (from 1.6% to 3.2%), and a significant increase in Grade 3 section faults (from 6.3% to 44.7%) which will require monitoring and planning for future programmes.

4.5 Individual fault data (from which clusters make up the section grading above) have also been graded and mapped across the City. There are currently 3,235 individual Grade 4 or 5 faults which are identified as unsafe and cause tripping or slipping hazards. A plan showing the location of Condition 4 and 5 individual faults across the City is shown in Attachment 2.

5. implications of the 2018 condition rating results

5.1 The condition survey work undertaken by Onsite has provided a high degree of confidence in the data captured and ability to provide repeatable and comparable conditions surveys going forward.

5.2 Onsite’s data capture has identified that there is an increase of Grade 4 and 5 section faults over the past three years which require attention. This is now informing the ongoing maintenance and renewal programmes. It is estimated that with targeting of the worst sections from a safety point of view through both maintenance and renewal works, these areas can be dealt with over the next couple of years, and the quantum of safety related works can be reduced. The balance of condition related priority works can then follow in subsequent years.

5.3 The increase in footpath repairs that require immediate attention correlates to the relatively static customer satisfaction rating (Reference Clause 2.14) and consistently high number of damage and maintenance customer service (K-Base) requests (Reference 2.15).

5.4 The data capture has also identified a significant increase of a large portion of the network that is mid-life and has a condition rating 3 which suggests that there may be higher expenditure required in the medium term (10 to 30 years). Significantly, this has already been allowed for in the 10 Year Plan forecasts, and will require further monitoring to ascertain the rate of deterioration and future renewal programmes. This work will also feed into the next AMP to provide a more robust medium to long term renewal programme.

5.5 The assumed useful life of footpaths across the city based on physical deterioration are outlined below, and can be increased depending on the amount of maintenance work undertaken.

Footpath Material	Assumed Life (years)
Asphaltic Concrete	30 years
Concrete	80 years
Paving Blocks	99 years
Seal	15 years

5.6 At present, the condition data is currently being analysed to identify the value and prioritisation of maintenance and renewal work as it relates to the function and use of footpaths associated with key activity centres such as the CBD, commercial areas, the hospital, and education institutes.

5.7 This work will also feed into the 2020 AMP as well as the ongoing maintenance programme.

6. footpath maintenance and renewal strategies

6.1 Considering the quantum and safety risk associated with individual grade 4 and 5 faults across the City, a balance between maintenance and renewal work to optimise overall expenditure is currently being investigated. This will enable renewal of shorter footpath lengths rather than full road lengths to ensure safety repairs are completed more quickly, followed by condition related renewal works, within existing budgets.

6.2 It is noted, however, that the repair of faults correlating to mature tree roots will be problematic in both the treatment solution chosen and the life of the repair undertaken. For example, where trees are significant and removing of the tree root is not an option, the repair method will be to ramp the footpath over the tree root which will provide a smooth trip free surface. The risk is the tree root continues to grow and generate future faults to attend to.

6.3 The ongoing maintenance and renewal strategies will generally follow those set out in the Roading and Parking AMP but with modifications, such as adjusting maintenance and renewal budgets, to allow more efficient use of the overall budget as informed by latest condition rating.

6.4 Strategies include:

· Ramping over tree roots to ensure smooth surfaces (rather than flat smooth surfaces) to protect significant trees.

· Re-prioritising maintenance & renewal budgets in the short term (2 to 3 years) to address grade 4/5 individual faults.

· Continuing to prioritising budgets (from 3 to 4 years onwards) to address Grade 4/5 footpath sections for renewal works, and grade 4/5 individual faults for maintenance works.

· Rearranging renewal and maintenance budgets in the medium term (10 years +) to address the risk of a large quantum of Grade 3 footpath sections, by targeting grade 3 individual faults.

· Prioritising work within maintenance and renewal lists to function and use of footpaths associated with key activity centres such as the CBD, commercial areas, the hospital, and education institutes.

· Ensuring customer requests where a safety risk has been identified are considered against the prioritised programme of works.

· Continuing to undertake footpath condition surveys (based on Onsite’s modified IPWEA assessment process) on a 2-yearly basis, with the next survey being undertaken in early 2020 to provide updated data and budget assessment for the 2021-31 10 Year Plan.

· Prepare for targeted visual surveys on a six-monthly basis near high risk activity areas (eg hospital, education facilities, CBD and commercial centres).

· Where applicable package up footpath renewal works with new capital works to progress Council’s urban design objectives (As in Cuba Street).

7. 2018/19 footpaths renewals programme

7.1 The current footpath renewals programme for 2018/19 (Prog. 64 - Footpath Renewals and Replacements and Prog.1546 c/fwd - Citywide - Footpath Renewals and Replacement) has an allocated budget of $961,767 and includes:

Project Number and Description	Cost
1 - Asphalt – City wide renewals and replacements	$88,081
2 – Concrete City wide renewals and replacements	$45,000
617- Cuba Street footpath renewal element	$195,000
1573 – College St footpath renewal	$70,000
1575 – Main Street north footpath renewal adhoc lengths	$53,966
1579 – Kerb Ramp replacements	$40,000
1584 – Alfred Street footpath renewal	$296,000
1585 – Rangitane Street footpath renewal	$94,000
1587 – Langston Avenue footpath renewal	$75,000
Total:	$957,047

7.2 As discussed above further information relating to actual costs, detailed programme of works over the next four to five years, and confirmation of strategies to address risks associated with the significant extent of monitoring work will be provided at the end of this financial year once detailed analysis, costing and prioritisation of maintenance and renewal work has been finalised.

8. nzta funding

8.1 NZTA through the Government Policy Statement on Land Transport (GPS 2018) has provided for co-funding of footpath maintenance and renewal work at financial assistance rates for approved authorities. Application to NZTA was sought, and has now been approved for the 2018-21 National Land Transport Programme (NLTP), for Palmerston North City renewal and maintenance budgets plus an additional amount to enable accelerated programming based on anticipated condition survey results. For 2018/19 this results in a sum of $1,590k as shown in the table below:

	2018/19	2019/20	2020/21	Total
Council Co-funded Maintenance & Renewal Budgets Based from 2018/28 10 Year Plan
Maintenance
Maintenance (NZTA Co-funded) (000’s) Reference Operational Programme 1567; NZTA subsidised footpath mtce	$210	$214	$219	$643
Renewals
Programme 64 - Footpath Renewals & Replacements	$690	$715	$752	$2,157
Programme 1546 – Carry forward Footpath Renewals & Replacements	$272	$0	$0	$272
Total Renewal (000’s)	$962	$715	$752	$2,429
Total Maintenance & Renewals (000’s)	$1,172	$929	$971	$3,072
NZTA Approved Funding Allocation
Maintenance & Renewal (000s)	$1,590	$1,644	$1,723	$4,957

8.2 This additional approved funding provides Council with an opportunity if it chooses to accelerate some of the renewal and maintenance programme to address the current grade 3, 4 and 5 individual faults and Grade 4 and 5 condition sections. In Years 2019/20 and 2020/21 up to a three limit of $4,957k.

8.3 Once actual costs and detailed programming has been completed, addressing opportunities for accelerating aspects of the renewal and maintenance programme will be reported back to Council as part of preparing the 2019/20 annual budget.

9. next steps

9.1 The following assessment work will be undertaken to inform the footpath asset management planning work:

1. Identify the actual costs, prioritised programme of works, and confirmation of strategy to address risks.

2. Establish a baseline target for the performance measure reporting of footpath condition as per the 2018-28 10 Year Plan.

3. Undertake footpath condition surveys (based on Onsite’s modified IPWEA assessment process) on a 2-yearly basis, with the next survey being undertaken in early 2020 to provide updated data and budget assessment for the 2021-31 10Year Plan.

4. Undertake targeted visual surveys on a six-monthly basis near high risk activity areas (eg hospital, education facilities, CBD and commercial centres).

10. Compliance and administration

Does the Committee have delegated authority to decide?		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 2: A Creative and Exciting City
The recommendations contribute to the outcomes of the Creative and Liveable Strategy
The recommendations contribute to the achievement of action/actions in the Active and Public Transport Plan The action is: Planning for the maintenance and renewal of footpaths.
Contribution to strategic direction	Asset management planning for maintenance and renewal of footpaths contributes to providing well-maintained and safe footpaths for people to move easily around the city.

Attachments

1.	Auckland Transport Footpath Inspection Guidelines - Appendix D Visual Guide ⇩
2.	Palmerston North Footpath Faults 2018 ⇩

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Audit and Risk Committee

MEETING DATE: 19 November 2018

TITLE: Health and Safety - July - September 2018

DATE: 25 October 2018

Presented By: Wayne Wilson, Human Resources Manager, Headquarters

APPROVED BY: Heather Shotter, Chief Executive

RECOMMENDATION(S) TO Audit and Risk Committee

1. That the Audit and Risk Committee note the information contained within the memorandum titled `Health and Safety – July – September 2018’ dated 25 October 2018.

1. Report

This report covers the period 1 July to 30 September 2018. The information included in this report is discussed at the appropriate H&S Committee, the Main H&S Committee and Management Team.

Hazards, Incidents and Near Misses Reported

Quarter	Dec 16	Mar 17	Jun 17	Sep 17	Dec 17	Mar 18	Jun 18	Sep 18
Hazards	15	10	7	4	3	3	6	31
Incidents	31	56	20	58	12	33	37	21
Near Misses	24	24	28	27	8	23	18	25
Lost Time (days)	215.0	215.6	140	129.15	133.06	93.8	39.1	45.08
L.T. Injuries	14	13	9	17	9	12	8	8

Lost time days were again low in comparison to other quarters because the injuries recorded were of a minor nature. The high number of Hazards reported was because existing known hazards have been recorded in the PeopleSafe system.

Attachment One is the Infrastructure Unit report from People Safe for those parts currently in People Safe. The report covers the month of August with commentary for the quarter as well.

Investigations

No investigations required this quarter.

Previous Investigations

Number of Recommendations 24

Number of Recommendations Completed 24

External Review

The formal external review of our H&S processes and procedures was completed by Safe On Site in April. A programme of work has been developed to address the suggestions and recommendations of the report. An executive summary of the audit report and action plan is attached. The number of recommendations and suggestions from the Audit is 29. 48 actions have been identified in the plan to address the issues.

Status of Actions

Completed 5

On-going action (completed but continues) 6

In Progress 14

Awaiting completion of a prerequisite action 18

On Hold (Timing) 5

Training

Attached is a report on H&S specific training undertaken this calendar year. This captures most of the training provided but not all, as H&S can be a component of other courses and it does not capture the on-the-job instruction type learning. The highlighted courses are those that new employees undertake. Not included is the H&S induction that all new staff receive. The Embracing Change workshops account for a significant proportion of training this quarter.

Wellness

The Activate Wellness Gym was used 1,463 times during the quarter or an average of 113 times per week by 142 individual staff members during the period. Following on from the successful collaboration with UCOL last year, a new group of students will be working with 60 staff on a wellness improvement programme commencing in October.

Annual leave taken during the quarter was 1,660 days compared to 1,550 September quarter 2017.

Dec 17	Mar 18	Jun 18	Sep 18
2277	2433	1556	1660

Turnover for the quarter of permanent staff was 16 or 2.87%. The annual turnover rate was 11.1%. Normally we measure employee initiated turnover only which is 10.2%. Employee initiated turnover are resignations and retirements. Our benchmark is 12% which ensures that we have sufficient turnover to refresh the organisation. Although we are slightly lower than the benchmark this is not of concern.

Date	Dec 17	Mar 18	Jun 18	Sep 18
Employee Initiated	14	20	11	12
Other	2	3	0	0

2. Compliance and administration

Does the Committee have delegated authority to decide?		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No

The recommendations contribute to Goal 5: A Driven and Enabling Council
The recommendations contribute to the outcomes of the Driven and Enabling Council Strategy
The recommendations contribute to the achievement of action/actions in a plan under the Driven and Enabling Council Strategy
Contribution to strategic direction	Safe and healthy organisation.

Attachments

1.	Infrastructure Unit – Health and Safety Report ⇩
2.	Training Schedule ⇩
3.	Health and Safety Audit Executive Summary ⇩

Vaughan Dennison (Chairperson)
Bruno Petrenas (Deputy Chairperson)
Grant Smith (The Mayor)
Susan Baty	Lew Findlay QSM
Adrian Broad	Jim Jefferies
Gabrielle Bundy-Cooke	Lorna Johnson

The recommendations contribute to Goal 5: A driven and enabling Council
The recommendations contribute to the outcomes of the Driven and Enabling Council Strategy
The action is: Being a good employer
Contribution to strategic direction	N/A

1.	Appendix A Internal Audit Management Agreed Corrective Action YTD September 2018 Progress ⇩
2.	Appendix B External Audit Corrective Action Implementation YTD September 2018 Progress ⇩