Proposed NWC General Works and Major Works Business Plan Process

1. Proposed NWC General Works and Major Works Business Plan Process

2. Explanation – Major Works Explanation – Major Works • Repairs and maintenance costing over £50k per project covering: • Reservoirs • Embankments and Culverts • Dredging • Water Supply • Major moving structures • Centrally prioritised and delivered through the national framework contract (May Gurney) • Responsibility of the Operations/Technical Director • National average spend - £25m per annum

3. Explanation – General Works Explanation – General Works • Day to day maintenance, repairs and risk management • - Minor repairs costing less than £50,000 (e.g. lock gates) • - Planned Preventative Maintenance • - Vegetation Management • Customer Service – lockkeepers, sanitary stations, signage, etc. • Inspections • Planned and delivered locally through the direct labour force and contract under the direction of the Waterway Manager • Responsibility of the Operations/Technical Director • National Average Spend - £55m per annum

4. Stage 1 – Setting of National Targets & Priorities Stage 1 – Setting of National Targets & Priorities October • Executive Directors consider macro income and expenditure forecasts • Finance Director issues target allocations to Directors

5. Stage 2 – Setting Operations Targets & Priorities Stage 2 – Setting of Directorate Targets & Priorities October • Operations/Technical Director confirms national standards, performance targets/priorities for General and Major Works • Operations/Technical Director issues target allocations to national Major Works team and each Waterway Manager

6. Stage 3 – Preparing draft Major Works Plan Stage 3 – Preparing draft Major Works Plan November - December • National Team – adjust existing 2/3 year plan in light of target allocations • Meet with waterways to explain and discuss national and local priorities • Needs and views of Local Partnership fed into process by Waterway Manager • Programme prepared that addresses priorities and is deliverable within financial year • Programme submitted - to waterways for information/comment • - to Operations/Technical Director for approval

7. Stage 3 – Preparing draft General Works Plan Stage 3 – Preparing draft General Works Plan November - December • Waterway Manager discusses local needs/priorities with Local Partnership and local management team • Liaises with Operations/Technical Director and other Waterway Managers on national priorities etc. • Waterway Manager submits local business plan including commentary on risks to Operations/Technical Director for approval

8. Stage 4 – Preparation of draft National Plan for Trustees Stage 4 – Preparation of draft National Plan for Trustees January • Operations/Technical Director considers Major and General Works Plans, agrees modifications and adjustments in light of comments and feedback • Submits Major and General Works Programme budgets to Finance Director • Finance Director consolidates all plans into a draft National Business Plan • Draft National Business Plan submitted to Trustees for comment

9. Stage 5 – Revisions/Refinements to National & Local Plans Stage 5 – Revisions/Refinements to National & Local Plans February - March • Executive reconsiders Local and National Plans in light of feedback from Trustees • Operations/Technical Director reconsiders GW and MW Plans in light of Trustees feedback and LWP comments • LWP invoke right to meet Operations/Technical Director if major concerns remain in respect of Business Plan

10. Stage 5 – Approval of National & Local Plans Stage 5 – Approval of National & Local Plans March • Executive adjusts National Plan and resubmits to Trustees • LWP Chairmen have right to submit comments directly to Trustees • Trustees consider final draft Plan for approval • Executive confirm National and draft Plans to business (or continue review of Plan until Trustees approval received)

11. Steady State Allocation - £125m Steady State Allocation - £125m

12. Minor Works Steady State Comparison Steady State Comparison

13. Average Steady State Spend by Waterway 2011/12 - £5.2m Average Steady State Spend by Waterway 2011/12 - £5.2m

14. Operational Focus 2011/12 - £56.6m Operational Focus 2011/12 - £56.6m

15. HQ and Central Services BW HQ and Central Services Total HQ and Central Service cost - £30.9m HQ & Central Service cost supporting Operations - £21.8m

16. Major Works 4 year planned expenditure Major Works 4 year planned expenditure

17. Major Works focus Year 1 and 2 Major Works focus Year 1 and 2 Year 1 2011/12 £16.2m

18. Overview Explanation – General Works • Operations focus to manage risk, prioritise expenditure, increase productivity and efficiency to deliver effective customer service • Open to suggestions for improving best value for waterways from local/national stakeholders