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MINUTES OF NI WATER – EXECUTIVE TEAM MEETING HELD ON

TUESDAY 4 AUGUST AT SEAGOE DEPOT, CRAIGAVON

PRESENT Laurence MacKenzie George Butler David Dangerfield Mark Ellesmere David Gilmour Trevor Haslett Alistair Jinks Allan Jones Ronan Larkin Darren Mawhinney Liam Mulholland Pat McParland Pauline Shepherd

IN ATTENDANCE Rosemary Symes Michael McGreevey

Chief Executive Director of Asset Management Acting Director of Operations Head of Legal and Company Secretary Director of Procurement Director of Engineering Procurement Transformation Team Chief Information Officer Director of Finance and Regulation Strategic Advisor Director of Customer Service Director of Corporate Affairs Director of Human Resources

Minutes For item 8

1. Informal discussion amongst the team on current issues

a. Alistair Jinks reported that Laurence MacKenzie would be briefed on the

breadth of the One Programme at the Programme Board Meeting due to be held

on Wednesday 5 August. The Corporate Planning process would also be

discussed at that meeting.

b. Liam Mulholland gave an update on customer service issues. David

Gilmour agreed to produce a briefing note for the Chief Executive on legacy

issues arising from the termination of the Steria contract.

[Action: David Gilmour]

c. Ronan Larkin reported that the Audit Committee had approved both the

AIR09 and the Regulatory Report and Accounts. The AIR09 had been forwarded

to NIAUR in line with the timetable agreed with the Utility Regulator. Laurence

MacKenzie thanked Ronan Larkin for providing interviews to the broadcast

media following the recent coverage of the billing issues which had been aired

and dealt with in 2008.

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d.

Allan Jones gave a brief update on data quality projects.

e. David Gilmour reported that a recent audit carried out by PWC on behalf

of DFP, categorised NIW procurement as ‘exemplar’ and a Centre of Procurement Excellence. He also noted that the Purchase 2 Pay system would be rolled out fully within NIW by the end of August 2009.

f. David Dangerfield reported that recent flooding incidents in July had

caused a material increase in the volumes of customer correspondence. He also briefed the meeting on the company’s Swine Flu contingency plan. The team noted that a taskforce team meets weekly to review the situation. Liam

Mulholland agreed to discuss Swine Flu contingency plans with key contractors. [Action: Liam Mulholland]

g. The Reporter had concluded his report on leakage which was supportive

of the Company’s processes. However consideration had been given to the robustness of the Company’s current leakage target.

The

successful.

incorporation

of

Metering

into

the

Operations

Directorate

had

been

h. Darren Mawhinney highlighted the forthcoming audience with Tony

Wray, the Chief Executive Officer of Severn Trent Water. It was agreed the company ought to be represented by one member of the Executive Team [Action: Darren Mawhinney]

i. George Butler referred to the recent draft NIAO study on Value for Money

within NIW for the period 2007/08. It was agreed that Ronan Larkin, George Butler and Laurence MacKenzie would work together to ensure a co-ordinated response on behalf of NIW. [Action: Ronan Larkin/George Butler/Laurence MacKenzie]

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j. Trevor Haslett briefed the Members on the property rationalisation project

and reported that the Minister had agreed that the project could move to the Final Business Case (“FBC”) stage. It was anticipated that the FBC would be available in three weeks’ time.

k. Mark Ellesmere reported that the Echo contract had been signed on Friday

31 July 2009.

2. Minutes of the Previous Meeting

a. The minutes of the ET meeting held on 20 July were agreed subject to minor

amendments.

b. Laurence MacKenzie said he had been asked to bring a half year review on costs to the Board in due course and was therefore interested in the number of temporary staff and consultants employed by the Company. Pauline Shepherd gave a brief summary of the position and agreed to discuss this matter further with the Chief Executive when they met on Thursday 6 August 2009. [Action: Pauline Shepherd]

3. Matters Arising

a. It was noted that matters arising had been completed or were scheduled for completion in due course.

4. Chief Executive’s Report on July Board

a. Laurence MacKenzie reported that the Board Effectiveness review would now take place in September.

b. The Board had expressed its thanks to Chris Mellor for his efforts in acting as

both Chairman and CEO over the past fourteen months.

c. Ronan Larkin had presented a Quarter One forecast to the July Board meeting which was discussed by the Board Members. The Board was informed that the Operating Plan had been approved in the June monitoring round subject to a potential small adjustment to the CWP.

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d.

An update on the HR Strategy was put on the agenda for the September Board

meeting and Laurence MacKenzie agreed to discuss this further with Pauline

Shepherd outside the meeting. [Action: Laurence MacKenzie/Pauline Shepherd]

e. The Reporter had addressed the Board Members on his draft report which had been very positive. The Board had approved the AIR09 and the Regulatory Report and Accounts.

f. The Board Members noted the positive progress which had been made on the

Undertakings. The Board was eager to ensure that eventually the Company would be able to discharge its obligations and to this end the Utility Regulator had been provided with a set of draft definitions setting out the steps that would represent each undertaking having been complied with. It was agreed that this latter point would be discussed at a scheduled meeting with Utility Regulator on 14 August.

[Action: Laurence MacKenzie]

g. It was noted that the BHC had requested an indemnity from the Company,

against any future damages which might be caused by discharge from the tunnel’s outfall into the Herdman Channel. This matter had been considered by both the AIC and the Board. The Board had noted that the Company had been aware of the need to provide an indemnity and the Chief Executive reminded members that matters requiring board approval should be brought forward in good time.

h. Mark Ellesmere agreed to circulate a note to members of the ET reminding

colleagues of the issues which should go before the Board and Shareholder and requesting that ET Members review their Directorates and confirm that there were no such similar cases of which the Board should be made aware. Members would be asked to confirm they were in compliance.

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[Action: Mark Ellesmere]

5. Business Operating Model (BOM) Update

a. Darren Mawhinney made a brief presentation to the ET on the progress to date outlining plans to take matters forward going forward.

b. The ET noted the high level design stage of BOM and their need to attend

forthcoming bilateral meetings to agree broad principles. The ET also noted the intention to benchmark future operating arrangements with ‘best in class’ water

utilities.

c. ET Members then discussed the balance of effort to be sought from external consultants and the internal team.

d. Laurence MacKenzie stressed the need to focus on the customer. It was

agreed that consultants would be used only sparingly. ET agreed that this matter should progress as outlined within the presentation.

e. Darren Mawhinney confirmed that the meeting on 17 August on the

CMS/BOM Design would include a briefing on the thirty-six key processes

referred to within the presentation. [Action: Darren Mawhinney]

6. People Issues

a. Pauline Shepherd updated ET on the discussions with the Trade Unions on Pay and Grading.

b. ET Members had received details of employees who may be asked to sign opt outs in respect of the working time agreement. David Dangerfield asked to be updated regularly on the employees within Operations who were potentially impacted. Pauline Shepherd also agreed to present a final update to the September Board on this issue. [Action: Pauline Shepherd]

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c.

ET noted that the Trade Unions were being kept updated on matters and were positive on the actions being taken.

d. Pauline Shepherd updated ET on the formal disagreement brought against the Company by the Trade Unions.

e. Pauline Shepherd agreed to make a presentation to ET on the “GPTW” initiative at either the end of August or early September. [Action: Pauline Shepherd]

7. HR Quarterly Report

a.

Pauline Shepherd referred to the HR report from 1 April 2009 to 30 June

2009.

The meeting discussed if HR issues should be the focus of attention for the

current year. ET then discussed the potential effect of Swine Flu and the contingency plan. The Chief Executive indicated he would consider the points raised and discuss them further with Pauline Shepherd outside the meeting.

b. Pauline Shepherd briefed ET on attendance management, long term

sickness and the processes in place to manage this. ET agreed to concentrate on

reducing the occurrence of sickness absence and emphasised the need for appropriate support from the Occupational Health provider and the consistent application of the return to work process.

8. Water Supply (Water Fittings) Regulations (NI) 2009

a. The ET noted the contents of the paper which had been circulated to members.

b. Further information was circulated to members setting out the implications to health and well-being when water pipes and fittings were not installed correctly. He also noted that legislation had not been brought forward to ensure that only registered plumbers were used by customers.

c. ET approved the Option 3 outlined in the report and agreed to the running of a PILS in Northern Ireland managed by SNIPEF. The Chief Executive agreed to

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include reference to the Regulations in his report for the September Board

Meeting.

[Action: Laurence MacKenzie]

 

d.

Michael McGreevy agreed to liaise with Pat McParland on public relations issues when rolling out option 3. [Action: Michael McGreevy]

9.

Ipsos MORI Research

 

a.

It was agreed to defer this paper to the next meeting. [Action: Secretariat]

10.

Internal Audit Status of Red and Amber Recommendations

 

a.

Ronan Larkin reported that at 30 July 2009, there were fifty-four

outstanding audit recommendations, two of which were causing some concern,

the first being Business Continuity Planning. ET noted that David Dangerfield had produced a draft report on this and recommendations had been executed. The second area of concern was further strengthening of Disaster Recovery

procedures.

b.

ET noted that the Company did not have a corporate structure for the

Business Continuity Plan at present and this was being reviewed by Internal

Audit.

ET discussed this and where the Business Continuity Plan should sit

corporately.

c.

Ronan Larkin reminded ET that one of the Corporate objectives for

2009/10 was to improve the overall Internal Audit opinion at the year end. The Company’s Chairman and the Chairman of the Audit Committee were fully behind this.

d.

The Chief Executive indicated that he had arranged a meeting with the

Internal Audit Manager to set the tempo to address outstanding issues.

 

.

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11.

Forward Look

a. Noted.

b. Mark Ellesmere reported that although there was no Board Meeting in August, a Reporting Pack would still be prepared and distributed.

12. Any Other Business (i) Quality Assurance of Documentation

a. Laurence MacKenzie referred to the mass mailer sent to MLAs and business organisations that had triggered significant adverse media interest the previous week. Going forward he asked that any similar correspondence be signed off by the appropriate people including himself, Legal and Communications. He agreed to circulate a suggested sign off process in this regard for consideration. [Action: Mark Ellesmere/Laurence MacKenzie] (ii) Financial Limits of Authority

a. Ronan Larkin agreed to review the Financial Delegations of Authority within NIW and report back to the Chief Executive. [Action: Ronan Larkin] (iii) Matters Reserved for Board/Items to Draw to the Attention of the Board

a. Discussed under item 4 Chief Executive’s report on July Board.

There being no other business the meeting ended.

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MINUTES OF NI WATER – EXECUTIVE TEAM MEETING HELD ON

TUESDAY 18 AUGUST 2009 AT NIW OFFICES, NEWRY

PRESENT Laurence MacKenzie George Butler Mark Ellesmere David Gilmour Trevor Haslett Allan Jones Ronan Larkin Darren Mawhinney Pat McParland Pauline Shepherd IN ATTENDANCE Rosemary Symes Geraldine Irwin Charlie Gallagher

Chief Executive Director of Asset Management Head of Legal and Company Secretary Commercial Director Director of Engineering Procurement Chief Information Officer Director of Finance and Regulation Strategic Advisor Director of Corporate Affairs Director of Human Resources

Minutes Head of Billing Head of Water Supply

Apologies were received from:

David Dangerfield who was represented by Charlie Gallagher,

Liam Mulholland who was represented by Geraldine Irwin and

Alistair Jinks.

1. Informal discussion amongst the team on current issues

a. Ronan Larkin gave an update on his recent meeting with NIAUR.

b. Trevor Haslett reported that the recent Alliance Industry Days had been positive

and the Alliance Project was progressing in line with expectations. Allan Jones

agreed to liaise with Trevor Haslett in order to ensure that the regular updating of

asset data was included within the project.

[Action: Allan Jones/ Trevor Haslet]

c. Darren Mawhinney asked the team to note recent comments made by the Ulster

Unionist Party in relation to the future funding of NIW.

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d.

George Butler reported that IWO was holding a seminar on careers on 2 October 2009 and he circulated copies of the invitation.

e. Pat McParland reported that a forthcoming Panorama programme to be shown at the end of August 2009, would be reporting on climate change and the effect

CSOs. He reported that while the programme would not be focusing on Northern

Ireland, there was a chance that there could be attendant media interest in the issue.

f. Pat McParland also referred to a recent media enquiry on the travel expenses of public sector bodies and noted that NIW would be providing relevant information to the journalist.

2. Minutes of the Previous Meeting

a. The minutes of the ET meeting held on 4 August 2009 were agreed.

3. Matters Arising

a. All matters arising had been dealt with or were in the course of being dealt with.

b. Laurence MacKenzie reported that ET Members would be asked to sign an assurance certificate stating that to the best of their knowledge and belief, there were no known outstanding issues which required Board or DRD approval. Mark Ellesmere agreed to co-ordinate this. [Action: Mark Ellesmere]

4. Health and Safety Report

a. George Butler briefed ET and noted that there were no lost days due to

accidents nor reportable under RIDDOR in July. It was anticipated that the target for near misses would be achieved.

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David Gilmour joined the meeting at this stage

b. George Butler noted that reporting on contractor related accidents had

improved.

c. George Butler updated ET on the serious injuries sustained by a sub-

contractor while working at the Ashley Park Pumping Station and welcomed the fact that the individual was now out of intensive care. ET noted that the sub- contractor was responsible for the site and that NIW had adhered to all health and safety regulations. A general discussion then ensued in relation to the importance

of maintaining the highest levels of health and safety at all sites associated with

NIW.

d.

An incident involving a staff member smoking in the workplace. Charlie

Gallagher agreed to investigate further and revert back to the Chief Executive. The point was made that the legislation about smoking in the workplace had been in place for some time and that we need to find a way of ensuring our employees comply fully with these regulations. [Action: Charlie Gallagher]

e. Psychiatric and Psychological illnesses continued to be the most common reason for non-attendance.

f. George Butler noted any comments made for incorporation into the report before it was included in the August Reporting Pack.

5. CEO Report

a. The report was taken as read. Laurence MacKenzie reported that NIAUR

had agreed to respond to NIW’s draft definitions at the beginning of September.

b. Laurence MacKenzie requested further input from E.T colleagues into the

report before it was included in the August Board Reporting Pack.

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6. KPI Report (i) Customer Services Report

a. Geraldine Irwin said that DG6 was being reviewed and work was

continuing on DG7. It was anticipated that billing contact issues would be resolved in September.

b. The main focus was on the collection of cash from billing and debt

collection.

ECHO was engaging with NIW at present.

c. There had been fifty-six CCNI complaints to-date (both stage 1 and 2).

The target for closing complaints in July had been missed in a single instance as

there had been confusion with CCNI regarding the ownership of a written

complaint.

d. DG8 was showing as red due to the delay in measured billing as only

metered reads which were completed in April and May were uploaded onto the

system.

e.

Allan Jones noted that a more formal approach was necessary to ensure

that NIW complied with undertaking B. He agreed to amalgamate DIG work with fast-track projects and have them under the same governance framework. [Action: Allan Jones]

f. The Chief Executive asked the team to note the number of billing contacts

that remained open beyond 10 days and the overall number of written complaints. It was noted that Ronan Larkin would be meeting with Liam Mulholland and Geraldine Irwin in early September in order to review these matters.

[Action: Geraldine Irwin]

g. Geraldine Irwin noted any comments made for incorporation into the

report before it was included in the August Board Reporting Pack. (ii) Environmental Compliance Report

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a. George Butler noted that there we no high pollution incidents in the year

to date. The wet summer had had a serious impact on bathing water quality due to increased discharges from combined sewer overflows.

b. The attainment of the WWTW PE compliance KPI was dependant on

Moygashel WWTW passing a sample discount request from NIEA.

c. George Butler noted any comments made for incorporation into the report before it was included in the August Board Reporting Pack.

(iii) Capital Works Programme

a. Trevor Haslett said the format of the report was being reviewed and noted

that the CWP spend and outputs were on target.

b. Trevor Haslett agreed to provide a more legible report before it was

included in the August Board Reporting Pack.

(iv)

Human Resources

a.

Pauline Shepherd noted that the 95.5% staff attendance was 0.2% below

target.

This had been impacted by long term sick absences. HR had met with

level 3 managers to discuss the flexible working strategy and this would be discussed with the Trade Unions in due course. It was hoped that agreement on the Pay and Grading project would be received from NIPSA the following week.

b. ET noted that a number of Opt Out Agreements under the Working Time

Directive remained outstanding primarily due to holiday leave. Mark Ellesmere made it clear that all Opt Outs must be in place asap and in any event will in

advance of the September Board meeting.

(v) Risk Management

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a. The report was taken as read. ET reviewed CR19, agreed that it should

remain on the risk register and had a discussion about the most appropriate owner for the risk. David Gilmour agreed to supply suggested alternative wording for CR19 for discussion at the next ET. [Action: David Gilmour]

b. Pat McParland noted further comments made for incorporation into the

report before it was included in the August Board Reporting Pack.

(vi)Operational Highlights

a. Charlie Gallagher reported that the July target for DG3 had been met. ET

noted that the Reporter had produced his draft report on leakage which on the whole was a fair document.

7. Finance Director’s Report

a. Ronan Larkin noted that more work was required on billing and collection.

Operating expenditure was £600K above budget due in part to increased power costs. Charlie Gallagher agreed to liaise with Ronan Larkin directly on this. [Action: Charlie Gallagher/ Ronan Larkin]

b. It was anticipated that the spend profile would balance out during the year.

c. Ronan Larkin emphasised that the delay in billing would impact on the collectability of debts.

d. The operating profit to-date was £900K below budget due to a reduction in

income and higher than budgeted operating expenditure.

e. The Chief Executive said that the key focus should be on income and the

importance of delivering the full year operating profit by adhering to or improving

on the agreed budget.

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8.

Internal Audit Status of Red and Amber Recommendations

a. Ronan Larkin noted that the number of outstanding internal audit

recommendations should drop from 47 to 41 by the end of August. The 3 outstanding issues from 2007/08 had been reduced to 2. He reported that the key issues were around billing and cash management.

b. ET noted that Nicola Brennan was available if further assistance or

clarification was required.

c. ET discussed their approach to the outstanding recommendations. The

Chief Executive reminded ET that this issue was made a key priority and the

number of outstanding items to be reduced to below 20 for the September Board

meeting.

[Action: ALL]

d. It was noted that outstanding audit recommendations would be a standing

agenda item for all future ET and L3 meetings.

9. People Issues

a. Pauline Shepherd circulated a HR update report and gave a summary of

the Resource Project, noting that the annual cost of non NIW staff was £6.6M. ET Members agreed to review their Directorates and supply HR with details of all staff within their remit by the end of August 2009. The Chief Executive underscored the importance of full compliance with this process. [Action: ALL]

b. ET noted the actions listed within the cost to Resource Project.

c. Laurence MacKenzie confirmed that all requests for recruitment would be

considered on a case by case basis but all future recruitment needed to be approved by him in advance of making any appointments.

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It was agreed to take item 11 next Sara Grant – Vest joined the meeting for the next item only

11.

Ipsos MORI Research

 

a.

Pat McParland introduced Sara Grant – Vest from IPOS MORI to ET who

then gave a powerpoint presentation which outlined the public’s perception of a number of prominent organisations including NIW.

b.

ET noted the presentation and thanked Sara Grant – Vest for her

attendance.

Sara Grant – Vest left the meeting at this stage

It was agreed to take item 10 next

10.

Key Themes/Feedback from ET Visibility Meetings

a.

Pat McParland summarised his report. ET noted the 6 recurring factors

and discussed MWM, Customer Relations Centre Issues and Pay and Grading.

b.

The Chief Executive stressed the need for Management to carry through

actions.

12.

Re-Launch of NIW Intranet Source-Explanation and Draft Designs

a.

Pat McParland briefed ET on the need for the Intranet site to be refreshed. ET discussed the proposal and agreed to give it their support.

13.

Corporate Planning – Opex Efficiencies 2010/13

a. Ronan Larkin gave a verbal update on potential outcomes under the PC10

process. A small working group had been established to consider various scenarios arising from the draft determination in terms of Opex. The group would

establish what was potentially deliverable in terms of both the cost and risk to

NIW.

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b. Alistair Jinks would chair the cross functional team with support from

Yvonne Temple.

c. It was agreed that a similar working group would be established in terms of

Capex.

14. Corporate BCP Paper

a. Charlie Gallagher gave ET a summary of the proposal. ET noted that

external support was required to develop a methodology, review existing plans and identify any gaps in terms of NIW’s overall approval to BCP. Charlie

Gallagher agreed that subject to any material issues arising from the external review a corporate wide BCP should be feasible by the end of the calendar year. Allan Jones confirmed that IT Disaster Recovery would be included in this

timeframe.

b. ET discussed the report and agreed to the recommendations.

15. Forward Look

a.

Noted.

16. Any Other Business

a. There being no other business the meeting ended.

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MINUTES OF NI WATER – EXECUTIVE TEAM MEETING HELD ON

MONDAY 2 NOVEMBER 2009 IN THE ICT CONFERENCE ROOM,

WESTLAND HOUSE, BELFAST AT 8AM

PRESENT Laurence MacKenzie George Butler David Gilmour Trevor Haslett Alistair Jinks Allan Jones Ronan Larkin Pat McParland Alec McQuillan Pauline Shepherd IN ATTENDANCE Rosemary Symes

Chief Executive Director of Asset Management Commercial Director Director of Engineering Procurement Director of One Programme (Acting) Chief Information Officer Director of Finance and Regulation Director of Corporate Affairs Operations Directorate Director of Human Resources

Minutes

Apologies were received from:

Mark Ellesmere

Darren Mawhinney

1. Informal discussion amongst the team on current issues

a. The ET discussed current matters of importance including the Company’s

response to PC10, the BHC indemnity, the Q2 forecast and the Steria dispute.

2. Update on Board Meetings

a. The Chief Executive provided an update on the Board meeting held on 27

October 2009 and the Audit Committee meeting held on 26 October 2009. It was

noted that the main issue considered by the Board was the PC10 response.

3. Minutes of Previous Meeting

a. The minutes of 19 October 2009 will be presented at the next meeting on

17 November 2009 for approval.

4. Matters Arising/Full Bi-Monthly List

a. ET reviewed the document and decided that items 180, 185, 187 and 188 would

be completed by Alec McQuillan. Items 193, 198, 203 and 204 should be carried

forward. All other items on the list were confirmed as completed. Secretariat

agreed to update the list accordingly.

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[Action: Secretariat]

5. 2010/11 Operating Plan and Budget

a. Ronan Larkin updated ET on the status of the 2010/11 Operating Plan and Budget and said that a more detailed note would be circulated in due course. [Action: Ronan Larkin]

6. People Issues/HR Quarterly Report

a. Pauline Shepherd took questions from ET on the HR Quarterly Report.

b. Pauline Shepherd provided ET with an overview of the proposals to seek

expressions of interest for a voluntary redundancy scheme. A meeting was being held with the Trade Unions on 5 November 2009 with a view to communicating details of the scheme to the staff affected on 9 November 2009. Ronan Larkin agreed to liaise with Pauline Shepherd on the VER/VS budget.

7. Internal Audit Status of Red and Amber Recommendations

a. Ronan Larkin reviewed the document and noted that the Company was

working towards improving its Internal Audit rating. Data quality continued to be the most important factor.

b. Alec McQuillan agreed to take responsibility for the actions marked

against David Dangerfield and Ronan Larkin agreed to note this on the document. [Action: Ronan Larkin]

c. Allan Jones reported that IT asset verification and Quest had been implemented. This had improved the quality of personal and business sensitive

data.

d.

ET reviewed the status of reports in 2007/08 and noted the need to

understand billing and cash management.

e. ET noted that that the reports in 2009/10 were showing as amber and that

it was essential that these be closed as soon as possible. ET reviewed the chart showing 84 open recommendations of which 27 were overdue as at the end of

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October 2009. ET recognised the need to act on the recommendations. Ronan Larkin agreed to include target lines in this chart for future reference. [Action: Ronan Larkin]

f. Ronan Larkin reported on the work being carried out by the Data Quality

Task Group. He also noted that the Internal Auditors had asked for a holistic view of the Company’s data therefore Ronan Larkin askd ET to complete the template which had been circulated, by the end of the week. [Action: ALL]

8.

BOM

a. In Darren Mawhinney’s absence, Laurence MacKenzie briefed ET on the report and noted that the Process Design project would focus primarily on Customer Operations processes. Alec McQuillan said he intended liaising with Darren Mawhinney on this project.

[Action: Alec McQuillan/Darren Mawhinney]

9. Any Other Business

a. There was no further business to discuss.

The meeting was closed.

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