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

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 3

4. Progress to date between WSTO & IWP  JanCommenced discussions  AprilPrinciples jointly developed for submission to CCMA and Irish Water management.  JuneDraft initial Heads of Agreement produced under partnership approach  JuneWorkshops to develop working protocols  19 th AugRevised 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 /SeptAgree and approve protocols 4

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

6. Performance Management of the ASP Set Performance Goals Plan Change & Prioritise Actions Measure Performance Assess Performance Review Manage Variance KPIs/Service Levels Benchmarks Best practice Targets/Service Levels & Collaborative Interventions Changes to Plan 6

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

8. 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. 8

9. 9 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 Supporting Principle Key Principle Service Level Agreement Principles

10. SLA Overview 10

11. Scope of the SLA 1.Access 2.Customer Service Culture & Values 3.Visual Identity (Brand) 4.Management Processes 5.Performance Management 6.Enterprise Risk Management 7.Dispute Avoidance & Resolution 8.Suspension and Exit Arrangements 9.Planning and Development 10.Manage Works 11.Five Year Plan and Annual Service Plan 12.Capital Programme 13.Manage the Design Build Operate Contracts 14.Water Safety Plans 15.Incident Management 16.Reporting to the Environmental Protection Agency (EPA) 17. Issue & Management of Section 16 Licences 18. Non-Domestic Billing 19. Health, Safety, Quality & Environmental Management 20. Support Services 21. Procurement 22. Information Technology 23. Facilities 24. Customer Contact Management 25. Non-Customer Communications 26. Intellectual Property 27. Freedom of Information 28. Data Protection 29. Information Sharing 30. Human Resources 31. Manage Costs, Payment & Budgeting 32. Insurance 33. Audit 11

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

13. Deliver Change & Continuous Improvement Review Performance Improvement Ideas Asses, Prioritise & Decide Type of Change Decide on Investment Priorities Implement Pilot / Prove Benchmarks Best practice KPIs/Service Levels Operational change assets needed Investment in Assets Needed Identify and implement improvements through the ASP and in year changes 13

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. 14

15. Examples of Some Key Changes that will be in place for all LAs come January 2014. Key People Changes Key Process 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. 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). 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 ). Example only 15

16. The 10 Capability Areas What is the high level impact for January 2014? #Ten Capability Areas 1 Manage Works – Customer Reactive Work Manage Works – New Connections 2Capital 3DBO's 4EPA Reporting 5Incident Management 6Procurement 7Non-Domestic Billing 8Customer Contact 9HSQE 10Manage Operational Costs  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 16

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

18. Current Priorities for IW and LA’s 1.Transition Plan: Pilot Impact Assessment & Delivery Plan Extend across all LA’s Joint implementation 2.Budget 2014 [ Top Down & Bottom Up] 3.SLA finalisation & Annual Service Plans 4. Asset Register & Transfer Plan. 18

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 19

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 20