Northern Ireland Water Ltd Board Meeting 31 March 2011 Westland House. Kevin Steele Non Executive Director

Transcription

1 Title of Paper Minutes of the 25 February 2011 To be presented by Purpose of paper (approval/information) Significant Issues Chair For the Board to agree the minutes of its meeting for subsequent internet publication. None Present: Padraic White Chairman Don Price Non Executive Director Kevin Steele Non Executive Director Lawson McDonald Non Executive Director (for part of the meeting) Trevor Haslett Chief Executive Ronan Larkin Finance & Regulation Director Sara Venning Customer Service Delivery Director George Butler Asset Management Director In attendance: Mark Ellesmere General Counsel & Company Secretary Pauline Sterling Minutes Apologies: Peter Bunting Non Executive Director 1. Minutes of Previous Meetings Minutes of the meeting on the 31 December 2010 and 4 January 2011 were approved. The minutes of the meeting on the 5 January 2011 and 27 January 2011 were approved subject to amendment. 2. Matters arising Matters arising were noted by the Board. The Chairman provided a verbal update on the Regulator s Investigation into the recent major 1

2 incident and confirmed that both the Regulator s investigation and the OFMDFM review were still on track to be completed the following week. The Board discussed forthcoming reports and investigations and requested that the Company have an appropriate communication plan in place to deal with these. The Board also noted that the Regulator was unlikely to consider the Company s request for release from Data Quality undertakings until its Board meeting in May. 3. Health and Safety Report Eddie McVeigh, Health and Safety Manager, attended the meeting for this item. The Board noted the updated report including the fact that it was now 162 days since the last RIDDOR incident (the previous record was 101 days). The Board requested that, at a future meeting, it receives information of the cost of Health and Safety within the organisation to confirm that the current level of investment in Health & Safety matters is appropriate. [ACTION: George Butler/Ronan Larkin] 4. Main Board Report The position on Key Performance Indicators was noted. The Chairman agreed to write to DRD in relation to the current position on the Equal Pay Claim. [ACTION: Padraic White] The Board then discussed Key Corporate Risks in month and actions taken by Management to address these. In relation to Corporate Risk 1 it was confirmed that lessons learned from the recent major incident as well as proposed changes in the structure of the Customer Service 2

3 Delivery Directorate would assist in mitigating this risk. In relation to CR13 the Board noted that the recent Resilience Plan as well as actions arising from forthcoming investigations into NIW s handling of the major incident would assist in mitigating this risk. It was agreed that individual action plans to mitigate key risks in month would be shared with the Board at the next meeting. [ACTION: Ronan Larkin] The Board also noted concern in relation to the delivery of PC10 (Corporate Risk 17). The Board agreed that years 2 and 3 of the PC10 period would continue to be challenging. The Board requested that Management continue to focus on the closure of 6 outstanding audit actions before the end of the financial year. [ACTION: Trevor Haslett] The Board noted that at the end of January the Company was on target to meet its Financial KPI s. A presentation on debtors would be made later in the meeting. Lawson McDonald joined the meeting at 10.30am The Board noted that an appropriate provision had been put in place in relation to the recent major incident. It was agreed that the MoU in relation to PC10 between the Regulator and DRD should be tested in relation to the impact on the organization of the Carbon Reduction Charge. [ACTION: Ronan Larkin] 3

4 The Board noted continued strong performance in terms of Water Quality and Wastewater Compliance. 5. Governance IRT Recommendations Action Plan The Board noted that the review of the End to End Governance System in relation to Procurement would be completed by the end of the month and that item 3 was being taken forward. In relation to item 6 the Chief Executive was asked to bring back proposals to the next Board meeting in relation to review of the structure of ET including procurement. [ACTION: Trevor Haslett] The action in relation to a review of the Audit Committee would be completed by the end of the month. 6. Procurement Committee Report Kevin Steele provided an update on and sought Board approval to certain matters as a result of the last meeting of the Procurement Committee on 11 February Having discussed proposals in detail Board approval was granted to the Single Tender Actions proposed by the Committee. The Board also noted that the Electricity Procurement Committee had met recently and agreed to purchase electricity. The Board noted that the risk of future price fluctuations had been managed appropriately and it was agreed that minutes of the Committee meeting be circulated to Board members for information. [ACTION: Mark Ellesmere] 4

5 8. Procurement Compliance Report Jane Mellor attended for this item. The Board noted the Procurement Compliance Report for January. The Board noted the current position in relation to DRD approval of Tankering Costs during the recent major incident. It was agreed that if DRD approval was not forthcoming in relation to payment of these costs then the Board s position should be made clear to DRD by the Interim Chief Executive or the General Counsel and Company Secretary. [ACTION: Trevor Haslett/Mark Ellesmere] The Board then received an update in relation to the award of a contract that had been subject to legal proceedings. The Board discussed the matter in detail and various options presented to it. On the basis of the information available to it and having discussed the matter fully the Board agreed with management s recommended option. 9. Financial Delegations Peter Johnston joined the meeting for this item. A revised Financial Delegations Policy was presented to the Board for approval. After some discussion it was agreed that there would be no changes to the current levels of delegation to the Procurement Committee and that current approval levels in relation to Single Tender Actions would remain unchanged. The Board agreed that it would continue to be flexible in terms of trying to meet tight deadlines for the approval of certain matters. The Board considered in detail proposals within Annex 1 of the report on this matter and approved proposed amendments in relation to feasibility studies, land acquisitions, 5

6 emergency requisitions (up to a limit of 30k) and new contracts (goods and services and capital non engineering). 15. Call Centre Update CRC Capacity Seamus Doyle & Liam Mulholland joined the meeting for this item. The Board noted the position outlined within the report. The Board asked that the resourcing levels outlined within the paper be revisited for absolute clarity. [ACTION: Sara Venning/Liam Mulholand] The Board also noted concerns in relation an opinion within the report as to the appropriateness of putting in place interactive voice response software via Single Tender Action. The Board requested that this opinion be reviewed by the General Counsel and Company Secretary. The Board agreed that subject to the further opinion it was minded to recommend the establishment of IVR Capacity straight away pending the launch of a Tender to put in place a long term provider. 7. PPP/PFI Exceptions Report The Board noted the updated report. 10. Major Incident Plan/Resilience Action Plan The CEO circulated a summary of actions under the Resilience Action Plan. The Board noted that actions were now 90% complete. The Board asked that a copy of the recent letter from the Chief Executive to the Permanent Secretary in this regard be circulated. The Board was also updated in relation to a recent meeting in relation to Floodline and lead agency in the event of a flooding incident. 6

7 [ACTION: Mark Ellesmere] 20. Weather Watch The Chief Executive distributed a copy of a long range weather forecast from 28 February to 20 March The Board noted that this current forecast did not suggest to any major weather event during that period. 11. Operating Plan and Budget 2011/12 Catherine Higgins joined the meeting for this item. Catherine Higgins presented a high level overview of the proposed plan and budget. It was agreed that in future, instead of merging information from PC10 and the relevant forecast, that future reports would be split in two between PC10 and the appropriate forecast information. The Board discussed delivery of the headcount target in detail and agreed that a plan for delivery of this target was a key requirement. The Board noted that there was no contingency within the budget to cover a major incident DRD had indicated previously that there would be a mechanism to allow this in year. The Board also discussed delivery of the Capital Works Programme during the PC10 period and agreed that every effort must be made to meet the target set in each year. The Board requested a reconciliation of how the Company would meet its targets to the end of the PC10 period. [ACTION: Ronan Larkin/Catherine Higgins] After a detailed discussion the Board agreed that the draft Operating Plan and Budget be submitted to DRD with the caveat that the Board would like to revisit certain items including headcount in terms of overall delivery during the PC10 period. 7

8 12. Update on Headcount Pauline Shepherd joined the meeting for this item. The Chairman noted that Pauline Shepherd would be leaving the organisation under the VER Scheme and the Board wished her well in future. The Board noted that the organisation was 15 short of meeting its headcount target for 2010/11 however the relevant efficiency target should still be achieved. The Board agreed that a Corporate Manpower Plan was required in order to deliver headcount targets during the PC10 period. The risk of future compulsory redundancies was noted and the Board agreed to keep current schemes open subject to DRD consent. 13. KPI attendance 2009/10 The Board noted that an error had been made in reporting attendance during 2009/10. The IT system had been updated to ensure that the error could not happen again. The revised figure for 2009/10 was 95.8% instead of 96.5% against a target of 95.7%. The Board noted that the target was still achieved and confirmed that DRD should be notified of this issue. [ACTION: Pauline Shepherd] There was no item 14 on the agenda. 16. Data Quality Strategy The Board noted and approved the Data Quality Strategy. It was confirmed that, going forward, individuals with responsibility for Data Quality issues would be set personal targets as part of the Performance Management System. 8

9 17. Customer Service Update Meter Data Sara Venning presented an update on Meter Data Quality. The Board noted the progress made in this area as well as the significant work still to be done. 18. Debt Analysis Aged Debt Project Update Ronan Larkin and Sara Venning provided an update on Aged Debt as at 31 January The Board noted that future campaigns would address high value Public Sector accounts and that the largest bad debt sector was Agriculture. The Board noted that a detailed paper on Debt Analysis was currently being prepared for submission to DRD Shareholder Unit. 19. Meter Reading Support for Customers with Leaks The Board noted proposals to support targeting customers who received an estimated bill for December and January during the recent major incident (approximately 8000 customers). The Board noted and approved this approach. 21. Forward Look The Board forward look was updated and the General Counsel and Company Secretary was asked to confirm details of the May Board meeting. [ACTION: Mark Ellesmere] 22. AOB (i) The Board noted the recent letter from DRD to the Chairman in relation to the use of consultants and that the Financial Delegations Policy had been amended to reflect the current position. The Chairman asked that a response be prepared on 9

10 his behalf to the letter. [ACTION: Mark Ellesmere] (ii) The General Counsel and Company Secretary informed the Board that primary legislation was being brought forward to change the 2006 Order to more accurately reflect the current funding position of the Company. It was agreed that the General Counsel and Company Secretary would circulate a note summarizing the proposed changes and details as to when those changes might take place. [ACTION: Mark Ellesmere] There being no other business the meeting ended at 3.45pm. Signed on behalf of Northern Ireland Water Chairman Date 10