February 20, 2008

1. WSSC ITQuarterly Update February 20, 2008

2. Outline • Executive Summary • IT Team 2007 Goals • Executive Summary of Achievements • Operating Plan • AAI and DAI Summary • Business & Infrastructure Projects Summary • ERP/EAM Update • Division Reports • IT Program Management Office • Enterprise Architecture • IT Security • IT Quality Assurance • Application Development • Enterprise Technology Solutions • Network Support • Systems Support & Operations • IT Customer Support • Next Steps • Future State of Business Enterprises

3. IT Team Goals and Responsibilities • GOALS To move WSSC toward a world class organization, IT has aligned its goals along three key areas that are industry accepted success factors for business improvement: • People • Processes • Tools & Technology . • RESPONSIBILITIES • Build a team with the necessary skills and an aligned structure to enable key business processes • Define and improve the processes and techniques that facilitate and improve our responsiveness to business needs with increased predictability of results • Introduce and maintain new technologies, along with improving our legacy systems, to better support and streamline core operations

4. Executive Summary: Achievements • People: • The IT organization is structured along our key business units to provide dedicated expert support • The IT team possesses the technical and business skills required to support our systems and applications • IT offers continuous training and development opportunities to ensure our skills and capabilities are up-to-date with current technology and business developments • IT has various cross-functional training and communications initiatives to improve the mutual understanding with other business units and increase awareness • Tools & Technology • IT developed and started implementing the strategically endorsed “5 Year Roadmap” to improve the technical infrastructure and systems and applications architecture • The projects in progress for FY08 support the roadmap to achieve a reliable, integrated, and technologically up-to-date architecture • Key applications selected comprise some of the best in industry on integrated Enterprise Asset Management (EAM), Resource Planning (ERP) and e-Business Systems • Results of new technologies and approaches are beginning to show: • Virtualization, Citrix platform migration, Secure File Transfer Protocol (SFTP) implementation and database consolidation significantly increased system performance, reliability, legal compliance and operational effectiveness – in addition to savings close to half a million dollars

5. Executive Summary: Achievements • Processes: • The project development and delivery framework and methodology incorporates more industry best practices • This set of standards, tools, processes and metrics address the strategic alignment of IT activities in terms of: • Portfolio Management (project prioritization and commissioning) • Project Management (delivering results on time and on budget) • Business Case (verifying benefits realization) • Our projects support business processes and provide opportunities for process improvement where applicable • Our processes support IT-Business cooperation with improved communication and visibility for our operations • Agency wide priorities are immediately reflected upon with the IT team’s responsiveness to change; e.g. shifting and reallocating resources to support urgent requirements

6. Operating Plan 07-08 Problem Management Short term, reactive activities to ensure business as usual: keeping the lights on IT Service Requests Medium term, tactical work to improve current operations Small Work Requests Long term, proactive and strategic initiatives to get WSSC closer to being a world class water utility Projects 20% 30% 50% Target Resource Allocation ($ and FTE) :

7. Executive Summary - AAI

8. Business Projects Summary Delayed start on the 3rd track, e-business suite. Team orientation and training in progress. Requirements defined. Resources are being mobilizedfor in-house development. RFP submitted to acquisitions for a vendor solution. Required functionality being delivered through small work requests. About half of reports complete. Project recently resumed after ADC Implementation and is at requirements definition stage.

9. Infrastructure Projects Summary Behind schedule pending extended procurement cycle. Behind schedule pending extended procurement cycle. On hold, due to lack of resources. Rescheduled for delivery in FY’09.

10. Deep dive AAI#7: ERP/EAM Implementation ERP/EAM Implementation is Washington Suburban Sanitary Commission’s initiative to implement an integrated, enterprise-wide resource, asset and customer management system. Over the next five years WSSC will replace its current legacy applications, some no longer supported, with an integrated suite of Oracle Enterprise Resource Planning (ERP) and Enterprise Asset Management (EAM) applications. We want to implement an integrated solution with a single common data source. This will help maintain and simplify the interfaces between our mission critical systems. Our approach is "no customization" to ensure full support going forward, which enables our key resources to focus on our core business functions. • Achievements • Project Team • ERP/EAM Implementation is our largest initiative, crossing almost all business unit boundaries. IT activities are lead by System Support and Application Development groups. • Project team includes dedicated core business members, as well as core and supporting IT team members. • Project Implementation Plan • ERP/EAM will be implemented in phases. The first phase (Phase 0) is designed as a “learning and readiness” stage that establishes the systems and business infrastructure. Phases 1 through 3 will be the actual implementation. • Phase 0 consists of three distinct parts, with one common deliverable: Phase1 Implementation Plan and Requirements: • Part 1: Upgrade existing infrastructure including the new Financial Information System (FIS) and database versions. Now in the final test period before planned production implementation by Feb 28, 2008. • Part 2: Enterprise Asset Management: Began analysis and training of the new enterprise applications that will support core Work Order Processing, Inventory control, Acquisitions and Asset Management within WSSC. • Part 3: eBusiness Suite: Planned the analysis and training on the new enterprise applications that will support finance, acquisitions, human resources, and other supporting operations. It will commence in February.

11. IT Program Management Office Enterprise Architecture IT Organization & Operating Structure Projects Small Work Requests IT Service Requests Problem Management Quality Assurance IT Security Application Development Enterprise Technology Solutions Network Support Systems Support & Operations IT Customer Support RESULTS forBusiness SUPPORT TEAM DELIVERY TEAM + =

12. Support: Program Management Office (PMO) Project Portfolio Management Processes Organizational Project Management Project & Program Management Standards Project Management Maturity WSSC IT recognizes the value of Project Management and views projects as a key means to achieve strategic goals • Achievements • Process Development • Defined and implemented portfolio and project management processes • Aligned PM methodology with Quality Assurance • Initiated Project Cost Management • Project Management • Support business projects (hands-on management) • Tools & Technology • Implementing PPM Center Tool – enabling real time project and SWR information • Improved project management methodology and supporting tools, templates • People • Project Management and Business analysis training to effectively define and efficiently deliver projects • Upcoming Challenges • Resource management through PPM Center • To forecast resource requirements, manage workloads and plan succession • OPM3 • Assessment and implementation for increased project, program, and portfolio management maturity and best practices • Automated Requirements Management Tool implementation • Traceability through test results Doing the Right Things PMO Doing Things Right Using The Right Things

13. Support: Enterprise Architecture (EA) • Achievements • Roadmap • Built a 5 year strategic implementation plan to address existing systems and architectural problems and prepare for the future • Change Management Process and Templates • Developed manual processes and templates to be mapped to the CM tool in FY08 • Release Management • Standardized Release Management Process with supporting templates • Upcoming Challenges • Change Management Tools: • Facilitate the introduction of change by defining procedures to assess risk, provide proper communication, documentation and to gain approvals and reduce or eliminate disruptions to business activities through assessment, planning and communication • ITIL Implementation • As part of change management, implement key service delivery processes and standards and problem management as a means to investigate root cause analysis for incidents reported by end users Enterprise Architecture is a comprehensive framework used to manage and align an organization's Information Technology (IT) assets, people, business processes and projects with its operational characteristics. Enterprise Architecture defines how information and technology will support the business operations and provide benefit for the business by showing the organization’s core mission, the people, processes, structures and technology collectively known as components critical to performing that mission, and how each of these components are interrelated.

14. Support: Quality Assurance (QA) • Achievements • People • Training on some existing WSSC systems and automated tools • Active participation in ERP workshops to enable improved support later, by facilitating QA team’s understanding of business processes and operations • Adjusted QA team and responsibilities to align with business user groups • Process • Defined QA processes related to SDLC for Small Work Requests • Integrated Quality Assurance- QA and/or Quality Control - QC in the WPMM (Project Management Methodology) • Upcoming Challenges • QA Tools Implementation Project • Establish an Enterprise Wide QA Automation process: Make go-live decisions with confidence; standardize and manage the entire quality process; reduce application deployment risk; improve application quality and reliability The Quality Assurance Division is responsible for focusing on the testing and quality assurance process across system development life cycle – SDLC at WSSC. Working in conjunction with the CIO and Application Development managers to set objectives, scope and strategies for the QA team around the IT solutions in place, the division will identify critical success factors, risks associated with various processes and strategies to mitigate those risks through testing, benchmarking, development of a toolkit and methodology, with an emphasis on utilizing automated testing tools.

15. Support: IT Security • Achievements • Business Impact Assessment Survey has been distributed to the Core ERP team for completion • Security Risk Assessment project has been completed • Compliance with the Payment Card Industry (PCI) Security Standards are 90% complete • Security patches are being kept up-to-date on servers • Security Event and Information System to pro-actively monitor security alerts has been implemented • Upcoming Challenges • Business Impact Assessment • In the case of a disaster, the critical business functions that support WSSC need to be recovered in a timely manner (via Disaster Recovery Plan) • IT Test Lab • Create a multi-purpose lab environment for IT Divisions to test new technologies, products and for Users to conduct User Acceptance Test (UAT) • DR Hotsite Feasibility Study • Evaluate the possibility of creating a hotsite at the Seneca site and associated costs The IT Security Division is responsible for the protection of the Commission's information (Data) and technology assets. The form of protection comes in the implementation of an IT Security Framework based on accepted industry practices, industry standards,laws and regulations. When you discuss IT Security you have to mention the three pillars of IT Security: 'Confidentiality', 'Integrity' and 'Availability'. An easy way to remember these is to think of the 'CIA' of security. These attributes are the impetus for all IT Security initiatives and investments. All of the IT Security legislation and regulations introduced over the last few years has been done so to address the lack of attention given to one or more of these attributes of IT Security.

16. Delivery: Application Development (ADS) • Achievements • Projects Completed • Centralized Bidders List: All phases are complete and will be rolled out to bidders in steps. Step 1 -Bidders registration is now available to general public. Over 600 businesses registered. Step 2- Posting of contract opportunities. - Notification of contract opportunities. • Alexandria Drafting Company map page grid modifications - Completed January 21, 2008 • SWRs Working on an average of 60-70 active SWRs daily; completed over 44 • Operations • Ongoing support to production systems • Upcoming Challenges • Complete Business Projects Delivery: • FIT – Support Production Group in design & delivery • LIMS – Requirements complete, out for bid The AD Support Division is responsible for overseeing and directing all aspects of project work performed by five application development teams at WSSC. Each development team directly supports the needs of one of the organization's main functions. In addition to WSSC application systems, customer and third-party vendor resources, the division manages the delivery of the projects while ensuring good practices in standard System Development Life Cycle (SDLC) methodologies. Processes are used throughout each project to deliver a high quality product.

17. Delivery: Enterprise Technology Solutions • Achievements • Projects • All major projects’ requirements are solidified: two water mains projects, facilities information system and lab information system • Defined systems requirements and supported business team in vendor assessment and selection for Customer Emergency Notification System (CENS) • Upcoming Challenges • Complete Business Projects Delivery: • SSO – Functionality to be delivered via Small Work Requests (SWRs) • Small Dia. Water Mains Management – Design • Large Dia. Water Mains Management – Requirements definition • Internet/Intranet Migration Project • Redesign the existing WSSC website at http://www.wsscwater.com to conform to a new look and a new architecture, with content management in the hands of business units • Legacy Reports Replacement • There is a great need for data integration among the disparate data sources but there is also a strong preference for the BI tools among certain existing users of the legacy reporting systems The Enterprise Technology Solutions Division is comprised of: GIS Section: manages WSSC's spatial data, develops GIS applications, provides end user support on GIS as a business analysis and mapping tool. Web Development Section: focused on development of web services, portal and portlet development, and other corporate internet/intranet development and support. Corporate Reporting & Document Management Section: implements and supports various document, records management and decision support systems and reporting tools.

18. Delivery: Network Support The Network Support Division is directly responsible for all data network and telecom systems and services, encompassing recommendation, design, implementation and support for all of WSSC's enterprise network and telephony infrastructure. The voice and data network infrastructure includes routers, switches, cabling, Wide Area Network (WAN) topology, microwave network infrastructure, public internet peering, Private Branch eXchange (PBX)/ Voicemail/ Automatic Call Distributor (ACD)/ Interactive Voice Response (IVR)/ Call Center management systems and platforms. Also supported are the two-way radio systems, cellular tower leasing activities, cell phones and PDAs (personal digital assistant), and firewalls. The Division is responsible for all projects related to data and voice convergence, network connectivity, remote access, network monitoring, network performance management and network security infrastructure. • Achievements • Assessments • Conducted assessments of the current data network, telecom, and telephony infrastructures • HP Openview ~ Network Monitoring • Implemented proactive infrastructure monitoring products as a robust, customizable, internal monitoring system to replace existing end-of-life and incomplete 3rd party solutions • Portal Technologies ~ Web Presentation • Implemented enabling technologies in support of e-commerce initiatives, particularly web service load-balancing and greatly increased Internet bandwidth capacity • Data Network Upgrades • Replaced Cisco core network switch and created server farm switch infrastructure to support updated servers • Introduced Wireless LAN (WLAN) technologies • Upcoming Challenges • Network Enhancements • Replace aging Cisco data network infrastructure devices at remote sites and add 2nd new core switch • Upgrade and augment microwave systems to provide greatly increased bandwidth • Complete WLAN rollout in the COB

19. Delivery: Systems Support & Operations • Achievements Virtualization, Citrix platform migration, Secure File Transfer Protocol implementation and database consolidation significantly increased system performance, reliability, legal compliance and operational effectiveness – in addition to saving close to $0.5 mm • WebSphere Deployment • New infrastructure to host Java enabled applications and build the Integration and Test environments • SUN SOLARIS Hardware/Software Migration • Reduced run time and increased availability of Financial system, HR and General Oracle data processing • File Server Component Upgrades (Intel) • Replaced obsolete components/ platform to reduce run time and increase availability of Financials, HR and General Oracle data processing • Storage Upgrade (NAS/SAN) & Assessment • WSSC Data utilization and dissipation rate of disk space to support its core business processes without interruptions due to disk space issues • Upcoming Challenges • Database and Server Consolidation projects (Phase 2) • Data Center Mainframe Upgrade (Phase 2) • Information Life Cycle Management • HP OpenView Implementation WSSC's multi-platform environment consists of Intel, UNIX and mainframe servers. The Systems Support Section (SSO) is responsible for assessing the core technologies, people, and processes and developing a strategic plan to mitigate high risk, high probability single points of failure. The Section is responsible for overseeing the database and server administration of the Intel, UNIX and mainframe computers at WSSC. SSO is responsible for 24x7x365 availability, security, scalability and incident response and works with the application and incident response teams on tactical and long-term projects to support applications in a multi-platform environment. SSO oversees and supports efforts related to backup recovery, performance tuning, problem determination and resolution, and deployment and will help to develop and implement Business Continuity (BCP) and disaster recovery plans.

20. Delivery: IT Customer Support • Achievements • HP OpenView ~ Service Desk • Upgrade to HP Open View Service Center 6.2 to allow for an integrated solution to network monitoring, asset and change management and more robust incident and service management • Commission Wide Purchase Request • Hardware requested to support requested/ replacement desktop component requirements and any necessary support and maintenance • Asset Management (Desktop) • Support a centralized IT asset repository for the ability to reconcile deployed inventory with authorized inventory - entire asset life cycle management • Laptop and Printers Replacement • Hardware requested to replace laptop and printers and any necessary support The IT Customer Support Division (CSD) of the Information Technology Team provides technical and other IT related support to the 1,500 Commission users in the Laurel headquarters office and the other 13 depots/sites. This organization is responsible for monitoring, maintaining and supporting all Commission desktop initiatives and operations, IT Inventory/Asset Management and IT Service Request and Delivery. The group also ensures the user problems and resource requests are addressed as expeditiously and effectively as possible in order to maintain business criticality and functionality.

21. CIO View Enterprise Architect View Next Steps

22. 5 Year Roadmap - Getting Closer • We identified our most limiting issues and shortcomings: • A reactively grown, fragmented systems and applications landscape, that evolved in response to daily pressures but not along a planned path. • We strategically planned how to effectively change the landscape for optimal support to our business: • A proactive implementation plan that supports immediate needs and builds the foundation for future. • We started to move along the plan, with footprints already in place.

23. AAI#7: ERP/EAM Implementation Plan(Draft) • 5 Year Phased Enterprise Resource Planning and Asset Management Implementation • Phase 0 : 11.5.10 Technical Upgrade, Phase Planning, Requirements Definition etc. • Phase 1 : Replace legacy Compass and TAMS/O Systems with WAM (Work & Asset Management), OTL (Oracle Time & Labor), INV (Oracle Inventory) • Phase 2 : Replace legacy MAPS & CSIS systems with CCB (Customer Care & Billing), BI (Business Intelligence) Extract, iSupplier, iProcurement, PUR (Purchasing) • Phase 3 : Implement Projects, EBP (Enterprise Budgeting & Planning) Modules Fiscal Year 2012 Fiscal Year 2011 Fiscal Year 2008 Fiscal Year 2010 Fiscal Year 2009 Phase 0 Implementation Phase 1 Implementation Phase 1b Phase 1a • WAM • OTL • INV • COMPASS • TAMS/O Phase 2 Implementation Phase 2c Phase 2b Phase 2a Adjustments & Improvements • CCB & BI Extract • iSupplier • iProcurement • PUR • MAPS • CSIS Phase 3 Implementation Legend: • Modules to be implemented • Legacy systems to be retired