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Asset Operations Plan

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Asset Operations Plan Irish Water Asset Operations Plan Interim Price Control Submission 2014 - 2016 Document No: IW-IPC-005 Contents 1 Executive Summary 4 2 Introduction 5 3 Background 6 3.1 Overview 6 3.2 Legislative Background 7 3.2.1 European Directives 7 3.3 Key Stakeholders 7 3.3.1 Department of Environment Community and Local Government 7 3.3.2 Environmental Protection Agency 8 3.3.3 Health Service Executive 9 3.3.4 Group Schemes and Private Water Supplies 9 3.4 Local Government Efficiency Review 10 3.5 Approach to Water Loss Management 10 3.6 Data Deficit 12 4 Approach to Operations and Maintenance 13 5 Service Level Agreements 15 5.1 Service Level Agreements 15 5.2 Annual Service Plan 15 5.3 Local Authority Capabilities and Protocols 16 5.4 Transformation of Water Services Delivery via SLAs 16 6 Operation and Maintenance of Water Services 17 6.1 Introduction 17 6.2 Irish Water Utility Model 17 6.3 Asset Operations & Maintenance Function 18 6.4 Asset Operations & Maintenance Delivery 19 6.5 Data Collection 20 6.6 Work and Asset Management 21 6.7 Transition of Key Operational Capabilities 22 7 Operational Improvements and Efficiency Initiatives 24 7.1 Introduction 24 2 7.2 Operational Improvements 24 7.2.1 Water & Wastewater Incident Response Plan 24 7.2.2 Information Flow / EPA reporting 25 7.2.3 Water Safety Plans 25 7.2.4 Standard Operating Procedures 26 7.2.5 Plant Performance Improvement 27 7.2.6 SCADA/Telemetry 27 7.2.7 Geographical Information System 29 7.2.8 Water Loss Management 29 7.2.9 Licensing of Trade Effluent Discharges to Sewers 31 7.3 Operational Efficiencies 31 7.3.1 Transforming Service Delivery 32 7.3.2 Standardisation of Drinking Water and Waste water Operations 32 7.3.3 Procurement & Optimisation Initiatives 34 7.3.4 Reduction in spend under Irish Water’s DBO contracts 35 7.4 Summary 35 8 Operational Expenditure 2014- 2016 37 8.1 Summary 37 8.2 Explanation of Movement from 2014-2016 37 8.2.1 Materials 38 8.2.2 Plant Hire (Repairs & Maintenance) 39 8.2.3 Contractor Costs 39 8.2.4 Labour 40 8.2.5 Energy 40 8.2.6 Central Overheads 41 8.2.7 Budget Totals 41 8.3 Approach to Management and Control of Costs 42 9 Constraints and Risks 44 3 1 Executive Summary The delivery of water services in Ireland has suffered from a severe lack of adequate investment for several decades. The existing infrastructure and network are in a perilous state, at high risk of failure, and not fit for purpose for Ireland’s future needs. To date, a myriad of systems, processes and work practices have operated across the 34 Local Authorities (LAs). The approach to service delivery has relied significantly on personal knowledge and commitment of staff in individual LAs across the country. Management of water services delivery has suffered from incomplete or very poor data collection, inconsistent and inadequate asset analysis, varied local application of policy and standards, ad-hoc investment planning and limited application of risk management. This is not a sustainable approach to achieve effective and efficient service delivery. The establishment of Irish Water (IW) and the transfer of functions and assets, previously undertaken by the LAs, is a significant development for the State and an opportunity to deliver a more effective and efficient service. IW’s main priority, during the transfer of functions and assets, is to ensure that there is continuity of service and no negative impact on customers at this time. The focus from 2014 will be to continue with the work of the Irish Water Programme (IWP) in establishing the people, processes and systems required to deliver water and wastewater services across Ireland. IW will, during the Interim Price Control period, identify areas where opportunities for improvement and efficiencies exist and deliver them for customers. This is against a backdrop of increased pressure on operational costs due to growth in the services delivered, in particular compliance driven growth. The key challenge for IW will be to transition processes and systems from the 34 LAs, circa 1,000 Water Supply Zones (WSZs) and circa 1,100 waste water agglomerations to a single set of processes and systems in a High Performance Utility Model. Central to this will be a concerted effort to collect data on the existing assets and operations and convert it to information and knowledge that can be used to deliver affordable services to meet the needs and expectations of IW’s 1.8m customers. The Operations & Maintenance function in IW will play a key role in the delivery of safe, affordable and environmentally compliant water services to all customers. To this end, IW will require sufficient funding and resources to meet its vision, objectives and obligations. The absence of adequate funding would severely constrain the level to which services can be improved, economic growth supported and environmental compliance achieved. 4 2 Introduction This document sets out the framework, systems and processes for operation and maintenance of water services following the transfer of assets from the 34 LAs to a single national utility, Irish Water. The objectives of this submission are: . To provide an overview of operations and maintenance activities associated with the delivery of public water services prior to transfer of responsibility to Irish Water on 1st January, 2014; . To outline IW’s plans to integrate water services delivery from 34 LAs into a single public utility to improve the asset operations and maintenance function; . To outline the roadmap for improved service delivery; . To outline the measures that IW will take to improve efficiencies in the delivery of water services and highlight the impact these efficiency measures; and, . To set out the budget for Operations & Maintenance. The scope of this document includes the following: . The operation and maintenance of public water supplies from source to tap, including the abstraction, treatment, storage and distribution of drinking water and treatment and disposal of all wastes and residues; . The operation and maintenance of all public waste water services, including the collection, transfer, treatment and disposal of wastewater and the treatment and disposal of all wastes and residues. A glossary of terms and abbreviations used in this document is included in Appendix No. 1. 5 3 Background Prior to 1st January, 2014, public water and waste water services in Ireland were managed by 34 Water Services Authorities (WSAs. 3.1 Overview The IW Operations & Maintenance function will be responsible for assets which are used in the provision of water and wastewater services. They include: . The above ground assets for water supply (abstraction works, treatment plants, pumping stations and storage reservoirs) and below ground assets (trunk and distribution mains) used in the provision of drinking water for public water supplies; and . The above ground assets (wastewater treatment, sludge treatment, pumping stations) and below ground assets (foul and combined sewers, sewage rising mains and outfall pipelines) used in the provision of public wastewater services. There are 1,027 Water Supply Zones (WSZs) and 1,069 Wastewater Agglomerations, spread across the State. There is a considerable difference in the scale of these WSZs and Waste water Agglomerations as shown in Tables 1 and 2 below. Category Throughput (m3/day) No. of Water Supply Zones E > 20,000 16 D 10,000 to 20,000 11 C 5,000 to 10,000 32 B 1,000 to 5,000 178 A <1,000 790 Total for Water 1,027 Table 1: Water Supply Zones Population Equivalent (p.e.) No. of Agglomerations >10,000 67 > 2,000 - 10,000 149 1,001 - 2,000 140 500 -1000 176 <500 537 Total for Wastewater 1,069 Table 2: Wastewater Agglomerations1 1 Best available information on plant size; based on EPA Data 6 The operation and maintenance of waste water treatment plants (WWTP) serving the majority of the larger cities and larger towns in Ireland have been contracted by LAs under operational agreements to private service providers, under Design, Build and Operate (DBO) contracts or in a small number of cases operations and maintenance (O&M) contracts. There are c. 163 WWTP, serving approximately 75% of the total wastewater load, currently being operated by private service providers; a full listing is included in Appendix 4. The DBO model has not been used to the same extent for water treatment works (WTW); there are circa 36 WTW currently operated by private service providers; a full listing is included in Appendix 5. 3.2 Legislative Background Prior to the enactment of the Water Services (No. 2) Act, 2013, LAs were defined under the Water Services Act 2007 as the WSAs and were responsible for the provision of water services in their respective areas. Prior to the introduction of the Act in 2007, the LAs provided the service in their role as Sanitary Authority, based on a suite of legislation, dating back to the Public Health (Ireland), Act, 1878. 3.2.1 European Directives The European Union has been responsible for introducing a number of Directives that impact directly or indirectly on the delivery of water and wastewater services in Ireland as they are transposed into Irish legislation. These Directives together with the Water Services Act 2007, were the key legislative instruments governing water services provision and operation in Ireland2. 3.3 Key Stakeholders – Previous model 3.3.1 Department of Environment Community and Local Government The Department of Environment, Community and Local Government (DECLG) controlled the water service capital expenditure programme. Investment by the LAs in water services was guided by the policies and procedures of the DECLG.
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