Laurence MacKenzie George Butler David Dangerfield Mark Ellesmere David Gilmour Trevor Haslett Allan Jones Ronan Larkin Darren Mawhinney Pauline Shepherd IN ATTENDANCE Rosemary Symes Chief Executive Director of Asset Management Director of Operations (Acting) Head of Legal and Company Secretary Commercial Director Director of Engineering Procurement Chief Information Officer Director of Finance and Regulation Head of Strategy Director of Human Resources Minutes

Apologies were received from:    1. Pat McParland Liam Mulholland Alistair Jinks.

Informal discussion amongst the team on current issues a. George Butler mentioned the recent Panorama programme on the impact of storm water discharges on bathing water quality which was then discussed. He also referred to his recent meeting with DRD to discuss Capex and PC10. George Butler then updated ET on a preliminary proposal for installing fibre optic cables in NIW sewers and referred to Scottish Water’s experience which had been gained over 6 years. He circulated details of the IWO conference and confirmed that the Dunore Point water quality incident had closed. b. Mark Ellesmere reported that a judgement in favour of NIW had been handed down from the High Court on the Deane Public Works procurement case. This was the second successful defence by NIW of a legal challenge by an unsuccessful party to an NIW tender process.


c. Darren Mawhinney updated ET on the progress being made with the BOM, the procurement workshop scheduled for 11 September 2009, and impact assessments. Laurence MacKenzie stressed the need to focus on processes. d. David Dangerfield reported on the recent flooding in East Belfast and said that meetings with Castlereagh Borough Council and the Minister for DFP had been positive. A presentation to stakeholders in East Belfast was being prepared. He then briefed ET on investment at Thales Air Defence premises and Carrington Street in Castlereagh and agreed to forward a note on this to Laurence MacKenzie. [Action: David Dangerfield] e. David Gilmour reported that the P2P implementation was progressing according to plan. f. Trevor Haslett said that a draft indemnity had been forwarded to BHC for approval and signing. NIW would be granted access to BHC documentation. Testing at the Belfast Tunnel had been delayed until the end of September. g. Trevor Haslett briefed ET on an incident at Joymount, Carrickfergus when a crane had collapsed. Inspections had been carried out on all NIW sites where similar equipment was being used. The contractor involved had set up internal workshops which NIW had attended to give the client’s perspective. NIW had stressed again to the contractor the importance it placed on Health and Safety standards in awarding works. h. Laurence MacKenzie reported on his recent meeting with the Minister and Permanent Secretary and said that they had expressed disappointment that NIW had not put a representative forward to comment on the recent flooding in East Belfast. It was established that the Alliance contract was giving some smaller contractors cause for concern. Laurence MacKenzie acknowledged that NIW


must deliver efficiencies but said that a balance needed to be made with regard to timeframes if this was to be done correctly. i. Laurence MacKenzie briefed ET on his recent meeting with SIB. j. Laurence MacKenzie briefed ET on his recent meeting with Colin Brown which had been very useful and noted that the draft definitions around the undertakings were being considered by the Utility Regulator. k. Ronan Larkin reported that the NIAO study had been received by NIW and circulated to ET Members. The Daily Commission in Eire had issued a report recommending the introduction of water charges. Ronan Larkin had recently attended a conference at Oxera which was attended by Utility Companies and Utility Regulators. l. ET discussed the impact of PC10 on employees and Laurence MacKenzie stressed the need to encourage the Trade Unions to participate in the PC10 process. 2. Minutes of the Previous Meeting a. The minutes of the ET meeting held on 18 August 2009 were agreed subject to a minor alteration. 3. Matters Arising/Full List Bi-Monthly a. ET agreed to forward their comments on outstanding actions to Secretariat. [Action: ALL] 4. 2010/11 Operating Plan and Budget a. Ronan Larkin referred to the report which was taken as read and agreed to take any questions. b. The ET noted the approach to the 2010/2011 Operating Plan and Budget.



People Issues a. Pauline Shepherd circulated an HR Update Report and briefed ET on the Employee Engagement Action Plans. David Dangerfield confirmed that Pauline Shepherd Operations had now completed its list of non-NIW staff.

agreed to confirm to the Chief Executive when the final list of non-NIW staff employed by the business would be completed for the Cost to Resource Project. [Action: Pauline Shepherd] b. Pauline Shepherd briefed ET on the 2009/10 Efficiency Project and encouraged ET Members to submit their business cases to enable the headcount reduction project target to be met in line with budget. ET discussed the the headcount reduction programme and Pauline Shepherd agreed to review the options available and report back to ET. [Action: Pauline Shepherd] c. David Dangerfield asked for a meeting with Pauline Shepherd to discuss leadership development of middle mangers and front-line staff. [Action: David Dangerfield/Pauline Shepherd] d. Laurence MacKenzie said he was keen to progress management development for levels 3 -5 within NIW. e. Pauline Shepherd reported that assurance would be given to the Risk & Reputation Committee and the Board that employees working more than 48 hours per week had signed Opt Out agreements. Those employees who had not signed the agreements would not be permitted to do overtime. 6. Internal Audit Status of Red and Amber Recommendations a. Ronan Larkin referred to each action on the report. Laurence MacKenzie asked for progress to be made on these actions before the September Board. b. It was agreed to bring the report to the September Board meeting as part of the Risk Management paper. [Action: Ronan Larkin]


c. Ronan Larkin agreed to forward a copy of the audit report on Field Action Management to Laurence MacKenzie when available. [Action: Ronan Larkin] 7. Updated Guidance on the Use of Consultants and Staff Substitution a. Ronan Larkin gave a summary of the report and highlighted the amendments to the guidance which had been approved by the Board in March 2008. b. Laurence MacKenzie reported that going forward, any new staff substitution or consultancy spend must be approved by him in advance. c. ET approved the new guidelines pending the incorporation of comments made and it was agreed that this matter would be brought before the September Board for assurance. Ronan Larkin agreed to circulate the revised guidelines to ET Members. [Action: Ronan Larkin] 8. Key Themes/Feedback from the Visibility a. Ronan Larkin summarised the report. b. David Dangerfield said that he was trying to improve communications within Operations and sessions on motivational fit were being held that week c. The new click scheduling software roll-out had been over-optimistic. It had been installed at Altnagelvin but not Westland as yet. Stephen Lovell, a Business Process Co-Ordinator with NIW and John O’Byrne of Katalis joined the meeting for the next item only 9. QPR Process Documentation and Governance a. Allan Jones introduced Stephen Lovell and John O’Byrne to ET. He said that QPR was a process documentation tool which could be used for project management and governance.


b. John O’Byrne circulated details of QPR and gave a demonstration on how it could be installed and used for DG7. He agreed to provide details of real case studies to David Dangerfield. [Action: John O’Byrne] c. Ronan Larkin agreed to meet with Allan Jones and Darren Mawhinney to discuss how to QPR could be used in conjunction with BOM and process mapping. Stephen Lovell and John O’Byrne left the meeting Charlie Pollock Power Manager within NIW, Simon Power and Agnes Sheridan of Arup, joined the meeting for the next item only 10. Wind Power Schemes Briefing a. George Butler introduced Simon Power and Agnes Sherridan to the meeting. Simon Power circulated a copy of Arup’s slide presentation and report. He outlined the results from the six month feasibility study on wind-farm sites and off-setting sites. b. Laurence MacKenzie asked for clarification on what renewable certificates were attached and what energy costs could be saved. It was noted that Yorkshire Water had installed three turbines and other utility companies were considering using wind-power. c. George Butler agreed to organise a fuller briefing on wind-power for ET and draft a business plan to be presented to Laurence MacKenzie. [Action: George Butler] d. ET agreed that this matter should not be brought to the Board until after the draft Determination had been received and NIW had been given the opportunity to consider this matter further. 11. Forward Look a. The Chief Executive asked for the ET meeting of 22 September 2009 to be moved to 21 September 2009.


[Action: Secretariat] b. It was agreed that the ET meeting of 3 November 2009 should be held at Westland House. Secretariat agreed to liaise with Allan Jones on this. [Action: Secretariat/Allan Jones] c. Secretariat agreed to put Glen Water Update on the ET agenda for 9 October. [Action: Secretariat] 12. a. Any Other Business There were no items to discuss under this heading. The meeting closed at 12.45pm