National Federation of Group Water Schemes Water Services National Training Group 5 th Annual Rural Water Services Conference

Rationalisation in the Group Water Scheme Sector Colm Brady N.F.G.W.S.

Rationalisation “Change for the purpose of improving the efficiency of an organisation”

Presentation Contents  Background  Water Services Bill  Achieving Quality Water  Management of Group Water Schemes  Further Rationalisation in the GWS sector  Conclusion

GWS origins  Rural Group Water Schemes set up in 60s, 70s and 80s  Pooling of resources  Capital Grant Aid  Voluntary labour  Local Contributions  A community coming together to provide itself with a cost effective and sustainable piped water supply

Development of GWS sector  Major demands now on GWS organisers –Statutory & Consumer Demands  Quality Water  Quality Consumer Service  Quality Management

Water Services Bill  Will be enacted by end of 2006  (Minister Roche 7 th September 2006)  Will provide for licensing of Water Services Providers including Group Water Schemes

Water Services Bill - Licensing  Conditions attaching to a water services licence (extracts from bill) –Measures to ensure against risk to human health or the environment –Water supply standards –Measures to ensure public safety –Operational and management procedures –Standards of service –Monitoring and supervision –Sampling and analysis

Water Services Bill - Licensing  Conditions attaching to a water services licence (extracts from bill) –evidence of employers and public liability insurance –conservation measures –measures to prevent source contamination –emergency plans in the event of any incident –requirements in relation to the preparation and publication of the accounts and annual report of the licensee –Such other matters as may be prescribed or the Minister may direct in relation to the grant of a water services licence.

Water Services Bill – Licensing Summary Water Services Providers (including Group Water Schemes) will no longer be entitled to supply water to their consumers if they cannot consistently demonstrate  Quality Water  Quality Consumer Service  Quality Management

Quality Water

Provision of Quality Drinking Water  Many GWSs require full treatment of raw water  Generous grant aid available in the context of DBO and Bundling and Amalgamation.  Efficient network management is also a significant task – particularly in the context of treated water  Source protection is also a significant task for GWSs

Funding – DBO and Bundling  100% Mechanical & Electrical Elements  100% Consultancy Fees  100% Bulk Metering  85% Critical Mains Replacement  85% All other civil works  Up to 85% universal metering (Can be in excess of 90% funding for overall upgrade)

DBO / Bundling & Amalgamation of schemes:  Not cost effective or feasible to fund DBO treatment plants for all schemes  Cost to exchequer / Taxpayer  Capital grant aid limits – Cost to the schemes  Operation and Maintenance Cost  Amalgamation of schemes is a necessary part of the overall Rural Water Programme

Funding in the context of Amalgamation & DBO  Where amalgamation is recommended in design review reports the following additional funding has been made available by the Department  100% funding is available for necessary interconnecting of schemes  Interconnecting pipe-work  Associated tanks / valves bulk meters etc  Upsizing rising mains if necessary  Subject to and only in the context of  Full amalgamation of the participating schemes

Amalgamation of Schemes and DBO  Many schemes have agreed to amalgamate in the context of the DBO projects  Cavan  Mayo  Galway  Roscommon  Wicklow  Wexford

Any other benefits from amalgamation?  Larger consumer base to carry fixed type costs  Management  Maintenance  Insurances  Auditor  Filing Fees  Etc.

DBO Bundle projects  Well on the way nationwide  All schemes in need of water treatment have been or will be afforded the opportunity to participate  Major effect on GWS quality compliance

Water Services Bill – Licensing Summary Water Services Providers (including Group Water Schemes) will no longer be entitled to supply water to their consumers if they cannot consistently demonstrate  Quality Water  Quality Consumer Service  Quality Management

Group Water Scheme Management

GWS Management – the future  GWS management / operation / maintenance is becoming more demanding  The provision of a quality water service requires sound management  GWSs must be managed as businesses if they are to survive  Group water scheme organisers facing significant challenges in relation to the management of their schemes  Water is a food product

GROUP WATER SCHEME Management Functions  Repairs and Maintenance  Reading Meters and Network Inspection  Leakage control and monitoring  Issuing of Bills and Information  Collection of fees / subscriptions  Customer Service  Monitoring and Dealing with Complaints  Issuing letters – Planning Permission etc  Connections and Disconnections

GROUP WATER SCHEME Management Functions Contd…….  Maintenance of Books and Records  Safety Statements and Safety Management  Preparing and submission of Subsidy Claim  Water Treatment (Monitoring of Same)  Quality Testing / Quality Assurance  Source Protection  Audit and Accounts  Returns to Registrar  Meetings

SURVIVAL!  How Can Groups survive?  Continue to rely on voluntary input of committee members??  Part Time or Full Time Management, Administration & Maintenance personnel with committee as “Supervisor”  Pooling resources and expertise through Rationalisation / Amalgamation with other Group Schemes

SURVIVAL!  GWSs must now put in place sound & sustainable management and administrative structures  Dedicated paid managers / administrators  Dedicated paid caretakers / maintenance people  Now national policy of NFGWS

Main Functions of GWS Supervision (Board) ManagementAdministrationMaintenance

The GWS Manager / Administrator General Duties of a GWS Manager / Administrator:  The manager / administrator of the GWS is appointed by the Board of Directors  to carry out the executive functions of the Board  to manage the day to day operations of the business  The manager / administrator is under the supervision of the Board which is acting on behalf of the general membership.

General Responsibilities of the Manager  The Board will decide on the extent of responsibilities, which might include:  Implementing the policies of the GWS as decided at the AGM and General Meetings  Carrying out the decisions of the Board  Advising the board with regard to strategy and policy  Preparing strategic / business plans  Taking responsibility for operational matters  Assuming responsibility for the recruitment and removal of staff  Providing leadership and direction for staff

Day to day responsibilities of the manager  The Manager / administrator would be responsible for ensuring that some or all of the following day to day operational functions are carried out  Repairs and Maintenance (Leaks, regular scouring, meter box repairs & maintenance etc.)  Reading Meters  Issuing of Bills and Information  Collection of fees / subscriptions  Organising schedule of payments (outgoings) for treasurer(s)  Customer Service  Monitoring and Dealing with Complaints  Issuing letters – Planning Permission etc  Connections and Disconnections  Safety statements and safety management

Day to day responsibilities of the manager  Maintenance of Books and Records – membership, share register, Cheque Payments, Debtors, Creditors etc.  Preparing and submission of Subsidy Claim  Liaising with scheme’s consultant engineers as necessary – Strategic Plans etc.  Water Treatment (Monitoring of Same)  Monitoring of source and intake  Quality Testing / Quality Assurance  Audit and Accounts  Attending Meetings on behalf of the GWS Board as required

Supervision of management  All functions carried out by the manager / administrator  Are carried out on behalf of the Board  Board retains the overall responsibility in law for the business of the Co- operative  Manager is not a member of the Board

Supervision of management  In order for the Board to fulfil its responsibilities it must maintain and exercise a supervisory role in the organisation –Regular Board Meetings – monthly, bi-monthly or quarterly. –Manager should attend meetings in a reporting and advisory capacity  no vote in decisions and not an elected member of the Board.

Supervision of management –Manager should present a report in a pre- agreed format to each meeting –Manager and Board (particularly the chairperson) should be in regular contact. –Manager should never be sole signatory for the Co-op cheque book  best practise would be that the Manager / Administrator would not be a signatory.

The GWS Caretaker / Maintenance Person / Operator  The GWS Caretaker / Operator is appointed by the Manager (with the approval of the Board)  Carry out the general day-to-day operational functions of the GWS.  Manager will decide on the tasks that will be carried out by the caretaker / operator.  Some tasks regular day-to-day  Some tasks assigned as necessary and as they arise.

The GWS Caretaker / Maintenance Person / Operator Regular tasks:-  Regular and on-going maintenance of Network –Leak detection and repair –Monitoring of Valves and Air-valves –Regular scouring of lines –Quality monitoring / Chlorine residual testing and recording (Q.A. Scheme) –Cleaning / spraying around all valves, meter boxes etc –Valve and meter markers – maintenance, repair and replacement

The GWS Caretaker / Maintenance Person Regular tasks:-  Meter reading and recording –Annually or Six monthly or more frequently if necessary (bulk meters) –Noting condition of meter and box –Repair / replacement of faulty / damaged meters, boxes or covers

The GWS Caretaker / Maintenance Person Regular tasks:-  New Connections –Installing new connections – following approval of the Manager / Board –Liaising with new customers re. location of connection / meter-box etc.  Small extensions –where feasible (one or two houses) and when approved by management

The GWS Caretaker / Maintenance Person Regular tasks:-  Dealing with customer / member complaints –Recording such complaints as they arise –Dealing with relevant complaints –Dirty water in sections of mains –Poor pressures in sections of mains –Leaks reported –Recording the outcome / resolution of the complaint

The GWS Caretaker / Maintenance Person Regular tasks:-  Liaising with DBO Treatment plant managers –Down-time due to plant maintenance –Emergency at plant –Reservoir levels etc –Expected increases in consumption – scouring major leaks etc.  Miscellaneous –Monitoring Booster pumps –Monitoring of source –Liaising with contractors

Benefits of Appointing Managers and Caretakers  Clearly assigns all day to day responsibility  Defines and clarifies roles and responsibilities  Releases the Board from day to day operational issues  Will help to make board membership more attractive  Clear and available points of contact for consumers and other interested parties  Allows for a more proactive organisation rather than a reactive one  Will assist with licensing requirements

Further Rationalisation in the GWS sector

Can we afford to pay Staff?  Many large schemes have paid staff  Difficult for smaller schemes  Smaller consumer base to share the cost  Neighbouring schemes could come together for the purpose of sharing a management and maintenance structure  Extension of “Bundling” concept

Alliances of Group Water Schemes  A number of schemes coming together to share some or all of the following functions  Management  Administration  Bills  Communications  Subsidy Claiming  Grant Application  Maintenance  Quality Control

Alliances of Group Water Schemes  Proposed Structure  A Co-operative entity  Each participating GWS becomes a member  Board of directors / committee made up of Reps from each of the schemes  Co-operative would employ staff as required

Objects of an Alliance of GWSs Extract from Model Rules developed by NFGWS and ICOS  To manage, organise, facilitate, administer, develop, act as agents for, negotiate participate in and promote suitable structures, systems, processes, procedures and practices on behalf of member societies as appropriate for  the maintenance of water distribution networks,  the reading of water meters, the issuing of consumer bills,  the collection of water charges,  the installation and disconnection of water supplies,  the integration and consolidation of water distribution networks where appropriate,  the collection and claiming of subsidies, capital grants and administration charges  such other miscellaneous functions related to Group Water Schemes as may be decided by the Society from time to time.

West Cavan Alliance of Group Water Schemes  Still in the planning  Co-operative has been registered  Databases of membership have been compiled  Consumer bills / communications have issued for some schemes  Will be developing over the coming months

Galway DBO 2 Rationalisation project  One “overarching” entity to be formed comprising the 11 amalgamations (up to 36 schemes)  Each of the 11 amalgamated schemes will become members  Initially the new entity will will oversee  the capital grant application and  the contract for the construction of the necessary treatment plants and associated infrastructure  Will also examine other functions and roles for the longer term.

Management Development Training Programme  Developed specifically for Group Water Schemes  A detailed analysis of GWS management procedures and best practise  Explores the area of appointing paid Managers  Delivered in the scheme’s own area  All GWS Boards / Committees are urged to avail of this vital training

Conclusion  Water quality issue is being dealt with  GWSs must now concentrate on their management and maintenance systems  GWSs should explore ways of putting in place paid managers and maintenance resources  Sharing and pooling of resources can assist in this regard  NFGWS staff have considerable experience and expertise in this area and are available to advise and assist  Appointment of paid managers is now NFGWS policy

Rationalisation in the Group Water Scheme Sector “Change for the purpose of improving the efficiency of an organisation” Colm Brady N.F.G.W.S. Thank you for your attention.

National Federation of Group Water Schemes Water Services National Training Group 5 th Annual Rural Water Services Conference