Water Services Training Group 17 th Annual Conference Creating a new Irish Water Industry

1. Water Services Training Group 17th Annual Conference Creating a new Irish Water Industry INEC, Killarney, 5th September 2013 1

2. Creating a new Irish Water Industry Service Level Agreement Irish Water Perspective Mr. Ray O’Dwyer, Head of Operations & Maintenance, Irish Water

3. OVERVIEW Progress to date Relationship Development SLA Progression Priorities and the Future

4. Progress to date between WSTO & IWP Jan Commenced discussions April Principles jointly developed for submission to CCMA and Irish Water management. June Draft initial Heads of Agreement produced under partnership approach June Workshops to develop working protocols 19th Aug Revised Heads of Agreement taking on board consultation with LA’s, Department & IW issued to all parties and drafting of final form of SLA commenced. Aug /Sept Agree and approve protocols

5. Planning - Overview Stakeholders Irish Water & Local Authority Collaboration Customers DECLG • LA • 5 Year & Annual Service Plan • Operations & maintenance • Improvement initiatives 25 Year Water Services Investment Plan BGE [5] Year Strategic Plan & Budget CER • Service Objectives • Service Requirements • Budget • KPIs • Service Levels EPA Local Authorities Irish Water Delivery Against Agreed Service Plan

6. Performance Management of the ASP • KPIs/Service Levels • Benchmarks • Best practice • Changes to Plan Manage Variance • Targets/Service Levels & • Collaborative Interventions

7. Plans for Future Years Year 1 Year 2 Year 3 Year 4 Year 5 Year 2 ASP Year 3 ASP Year 1 ASP Year 5 ASP Year 4 ASP Service Planning Service Delivery IW and LA Agreed initiatives for Future Years [Step change + Continuous Improvement]

8. Annual Service PlanOverview The cornerstone of the SLA will be the Annual Plan with each local authority every year for the duration of the SLA. Progress against the targets agreed in the Annual Service Plan will be monitored and reviewed quarterly.

9. Supporting Principle Key Principle Service Level AgreementPrinciples

10. SLAOverview

11. Scope of the SLA • Issue & Management of Section 16 Licences • Non-Domestic Billing • Health, Safety, Quality & Environmental Management • Support Services • Procurement • Information Technology • Facilities • Customer Contact Management • Non-Customer Communications • Intellectual Property • Freedom of Information • Data Protection • Information Sharing • Human Resources • Manage Costs, Payment & Budgeting • Insurance • Audit Access Customer Service Culture & Values Visual Identity (Brand) Management Processes Performance Management Enterprise Risk Management Dispute Avoidance & Resolution Suspension and Exit Arrangements Planning and Development Manage Works Five Year Plan and Annual Service Plan Capital Programme Manage the Design Build Operate Contracts Water Safety Plans Incident Management Reporting to the Environmental Protection Agency (EPA)

12. SLAGovernance Arrangements • Senior IW Representatives • Representative group for all 34 LAs • Discuss / Agree Major Changes to SLA National Governance • Senior IW & LA Representatives (Operations, Commercial, Finance) • Quarterly / Extraordinary if required • Review performance against ASP, address variances • Resolve issues Regional Governance Management Meetings • IW & LA Representatives • Monthly • Review progress against ASP and resolve issues • Review costs and variances against budget • Invoicing & Payment Approval • Propose / progress continuous improvement activities District Governance Review Meetings • IW & LA Representatives • Daily & Weekly • Progress on current issues • Decisions on specific expenditures • Propose / progress continuous improvement activities Local Governance Interactions

13. Deliver Change & Continuous Improvement • Benchmarks • Best practice • KPIs/Service Levels Identify and implement improvements through the ASP and in year changes • Investment in Assets Needed Pilot / Prove • Operational change assets needed

14. What Key Changes will be in place for all LAs come January 2014? • January sees Irish Water take on responsibility for water and waste water services in Ireland. • The Local Authorities will continue to deliver water and waste water services in Ireland, but will operate under a Service Level Agreement. • Local people will continue to do local work. • Irish Water are committed to a partnership approach with the Local Authorities to lead to a new national utility in Ireland. To get there we need to jointly understand and plan for these changes. • There will be some new systems and some changes to existing ways of working. • The Local Impact Assessment work will further inform what the key changes are at a local level.

15. Examples of Some Key Changes that will be in place for all LAs come January 2014. Key People Changes • Irish Water should be the first point of contact for all customers • Capital Projects staff will deliver projects under direction of Irish Water. • New IT systems will be introduced – i.e. Maximo, Oracle, Primavara. (Local Authority staff will receive training on these new systems ). Key Process Changes • There will be new processes required for working with Irish Water (e.g. Managing Operational Costs, Procurement, Operational Activities and Customer Service). • There will be some reporting changes (e.g. field staff will report work executed to office Maximo users, all HSQE reports will go to Irish Water, financial reporting changes, major capital works reporting changes). Key IT System Changes • Maximo will be used to record customer activated work. • Oracle will be used to support minor capital procurement. • Primavara will be used for project and resource management. Example only

16. The 10 Capability AreasWhat is the high level impact for January 2014? • The IWP describes the establishment of Irish Water around 10 Key areas- the 10 Capability areas • During June- July IWP and WSTO have been working together to document protocols to support these capability areas • The Protocols describe the key roles and responsibilities between IW and LAs for January 2014 • Objective of the Protocols is that on day 1 all parties know what they need to do to deliver agreed services • During the IA Sessions the IWP teams will be assisting your LA teams to understand what are the key changes across the capability areas as a result of the agreed Protocols for 2014

17. LA Engagement Recap on Resource Model National LA Steering Committee National LA Project Board National LA Project Team Local LA Transition Teams National Change Specialists. National PMOs Local LA Transition Teams IWP Change IWP PMO Local LA FTE Local LA FTE IWP Change Resource IWP PMO Resource Full time resources out on the ground in the LAs providing change /PMO support Aug - March 2014 LA Resources Full time Local LA resources working with IWP team Aug-March 2014

18. Current Priorities for IW and LA’s • Transition Plan: • Pilot Impact Assessment & Delivery Plan • Extend across all LA’s • Joint implementation • Budget 2014 [ Top Down & Bottom Up] • SLA finalisation & Annual Service Plans • 4. Asset Register & Transfer Plan.

19. SLA Challenge & Opportunity • Challenge: • To achieve the required change by 01/01/2014 • To achieve full buy-in to the new industry model • To ensure partnership delivery of required benefits • Opportunity: • Asset Management approach driving best use of resources • Enhanced customer service and industry reputation • Streamlined process of investment • National & Regional capabilities supporting

20. Conclusion. This is a journey Collaboration and co-operation put its core Heads of Agreement Document reflects that approach CLARITY – COLLABORATION- CO-OPERATION – COMPLIANCE – COST-EFFECTIVE – CUSTOMER COMMITMENT