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

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

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

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 In late January / Early February discussions commenced between Irish Water and the Local Authorities through the Water Services Transition Office and the Irish Water Programme. As both parties worked to develop an understanding of the scale and scope of the SLA they jointly developed a set of principles under a partnership approach which were completed in April and presented to the CCMA and the newly formed Irish Water management. These principles were broadly agreed although some work remained with respect to how exactly the principles would be implemented in practice. This led on to the development of draft heads of agreement in June for consideration by the Local Authorities, Irish Water and the Department of Environment Community and Local Government. More recently on foot of consultation with the three key parties the heads have been refined and further developed and were reissued towards the end of August. In parallel, protocols were being workshoped through June, July and August to document exactly how the daily interaction between Irish Water and Local Authorities would be implemented under the SLA.

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

Performance Management of the ASP Set Performance Goals Plan Change & Prioritise Actions Measure Performance Assess Performance Review KPIs/Service Levels Benchmarks Best practice Changes to Plan Manage Variance Targets/Service Levels & Collaborative Interventions

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

Annual Service Plan Overview 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.

Service Level Agreement Principles Key Principle Supporting Principle Seamless transfer of control delivered on time New Irish Water functional and regional structure in control Seamless provision of water services during change in the water sector Achieve a low risk transfer for Irish Water, Local Authorities and customers for delivery of services Collaborative relationship between Irish Water and the Local Authorities Contact for services on the basis of a fair and objective reward system Underpin collaborative relationships using a long-term, equitable commercial footing Increasingly cost efficient eater sector for customers Funding investment in the public water services Manage labour input Deliver benefits for customers through investment and change Provide opportunities for Local Authority staff Forward looking industry and career opportunities in the water sector enduring services Training and investment in people Provide a rewarding career for those on the Irish water industry journey Protect the public’s health, safety of people, the environment and their assets Meet key operational performance indicators Deliver an excellent customer experience at every touch point Meeting stakeholders needs for high quality services, delivered by respected Irish Water brand Shown here is a summary of the Principles developed earlier in the year. It is worth outlining the key principles that expected to underpin the development and operation of these SLAs.

SLA Overview

Scope of the SLA 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) 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 I don’t propose to go through this list, but as you will appreciate the scope of the SLA is very broad and this is reflected by some of the main headings of the activities covered by the SLA. It covers everything from Capital Programmes to Operations from facilities to support services. In addition it addresses how Irish Water and the Local Authorities are going to manage and maintain good working relationships over the next 12 years. It is often said that good boundaries make good neighbours. In this regard the SLA attempts to be as clear as possible as to the respective responsibilities and obligations of each party. It also sets out how we will resolve issues and to the greatest degree possible avoid disputes. It also sets out what should happen in the event that an LA wishes to exit or do not seek to renew the SLA. In this regard certain assurances are given.

SLA Governance 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

Deliver Change & Continuous Improvement Benchmarks Best practice KPIs/Service Levels Review Performance Improvement Ideas Asses, Prioritise & Decide Type of Change Decide on Investment Priorities Implement Identify and implement improvements through the ASP and in year changes Investment in Assets Needed Pilot / Prove Operational change assets needed

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.

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

The 10 Capability Areas What 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 # Ten Capability Areas 1 Manage Works – Customer Reactive Work New Connections 2 Capital 3 DBO's 4 EPA Reporting 5 Incident Management 6 Procurement 7 Non-Domestic Billing 8 Customer Contact 9 HSQE 10 Manage Operational Costs Speaker Notes Rationale for agreed services for January 2014 is to enable Continuity of Customer Safety Continuity of customer service A commitment to continuous improvement Industry/Government/Legislation drivers to reduce wastage, charge citizens for water, increase efficiencies

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 Speaker Notes Need to outline the rational for the resourcing model 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

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.

SLA Challenge & Opportunity 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

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