John Quinn Aberdeen City Council Donna Milton Arneil Johnston Aberdeen City Council

Transcription

1 The Future Delivery of Repairs Services John Quinn Donna Milton Arneil Johnston

2 Repairs Service Context 23,000 houses 20% in multi storeys Large % of joint owners Location Competitive market Large Waiting List Mixed tenure demand

3 Repairs Service Context >500 staff in 5 years 120+ agency staff Staff age profile Apprenticeships 52 awards over 5 years Best apprentice 2012

4 Repairs Service Context 30m revenue budget Low void level 50m capital budget SHQS..EESH Trading business Head and body Delivery Project Mgt. Asset Mgt. Development Consultancy

5 Approach What? A repairs service which has to be provided by a landlord Why? Legal Requirement tenancy agreements How? Planned Approach Who? Good Question.

6 What!? Certain repairs will almost always be the landlord s responsibility, whether or not they are specifically mentioned in the tenancy agreement

7 What!? The structure and exterior of the premises (such as walls, floors and window frames), and the drains, gutters and external pipes If the property is a house, the essential means of access to it, such as steps from the street, are also included in structure and exterior. It also includes garden paths and steps The water and gas pipes and electrical wiring (including, for example, taps and sockets) The basins, sinks, baths and toilets Fixed heaters (for example, gas fires) and water heaters but not gas or electric cookers

8 Other Reasons Why To provide a Service Regulated To provide Security To tenants Tenancy agreements Right to Repair To control Performance Service Security Performance Delivery

9 Again. Why!? Knowledge of stock Age / History Knowledge of People tenants Securing Investment Consistency of Service Delivery Consistency of Financial Profiling

10 So How? In house team Outsourced Combination of two Managing Contractor Subsidiary Company JV, LLP, ALMO

11 Determinates HRA Asset Management Plan Budget Planning Owners Rights Quality Standards Competitive Market Place

12 In House Team Market place Overheating Workforce planning Opportunity Corporate v Commercial Best value Performance

13 Outsourced Managing Contractor Capacity Is it there? Knowing the Competitive market Aberdeen s overheating market Tenancy Liaison Who is ultimately responsible Procurement Options Quality v Price Framework options

14 Combination of Two Partnerships Relationships Community benefits JV Legal ROI LLP Become External Agent Legal allowances..

15 What is the Future? Where will the rented sector be in the future? Who will be driving it? Best Value Investment Needs Answer these questions can attempt an answer to the future delivery of repairs services...(donna!!)

16 Thinking the Future Partnership approach to repairs strategy, planning and delivery Regeneration & Housing Investment Housing & Community Safety ACC Corporate Services Outcome focus: tenants, ACC & the City New philosophy, plans & tools RHIS Service Plan Integrated asset management plan Area based management

17 Regeneration & Housing Investment Service Response Repairs 7.5M Void Works 3.5M Planned & cyclical repairs 3.5M Housing adaptations 1.25M Public building response repairs 1.25M Housing capital works 30-35M Housing Gas contract: 3m Regeneration work:?m External contracts: other public sector, RSL s etc. Major council building projects: schools, care village etc.

18 The Need for a RHIS Service Plan Purpose of & ambition for the service Service priorities to achieve purpose Our resources & how we coordinate & deploy them How we monitor progress How we continuously improve Clear blueprint to ensure all activities are propelled towards a common purpose & for longer term co-ordinated activity

19 Vision: To deliver a property maintenance & investment service that is innovative, commercially focused, delivers best value & is well coordinated so that we meet the needs & demands of Aberdeen City by continuously improving housing quality & supporting the regeneration of communities Strategic Aim 1 Strategic Aim 2 Strategic Aim 3 Strategic Aim 4 To be a strong & proactive partner in developing & delivering an asset management strategy To deliver a fit for purpose housing stock that meets statutory requirements To deliver customer focused repairs, improvement & maintenance works to a high standard To increase efficiency through expansion of capability, capacity & profitability To improve intelligence on stock condition To complete data management, process & systems review To embed asset management philosophy into service To support the delivery of the asset management action plan To deliver area based inspection/management plan approach To develop an energy efficiency strategy for the ACC housing stock To develop & maintain asbestos register To further develop void repair strategy To develop a coordinated response to delivering SSHC outcome reporting To systematically review performance management framework To perform data quality review To develop consistent approach to procurement across RHIS To develop an integrated strategy on whole life costs To deliver business development strategy based on sound market intelligence To implement a workforce development & skills strategy To establish trading accounts & sound financial reporting mechanisms To achieve ISO & implement service improvement strategy

20 The Future for Repairs Planning & Delivery. Service Planning Delivery & performance Integrated asset management Financial Planning Business planning & return on investment Investment Planning Long term costed maintenance & repair

21 Not just focused on SHQS but on business impact of asset from every perspective Service Planning Does the housing stock meet the needs & aspirations of tenants? Do we manage & maintain it effectively & efficiently? Investment Planning Do we have a long term costed plan for the repair and maintenance of the housing stock? Financial Planning Can we afford to manage, maintain & invest in our housing? Does any part of the housing stock cost more than we collect in rent? If future costs are high, current costs are high and demand is low Should we continue to invest? Can we afford to invest?

22 Is stock fit for purpose? Assess relationship between 3 key factors Current Cost Future Costs Void Rent Loss: 1.4% Arrears: 4.5% Management Costs: 687 Response Repairs: 586 Net Present Value: 12k 30 year SHQS: 23,200 Structural costs: 15,800 Housing Demand Turnover: 0.3 Refusals: 0.2 WL/Turnover ratio: 170:1

23 GIS format enables detailed scrutiny of current cost, future cost & demand

24 Asset Management in Practice Why is the response & void cost per unit so variable in this street?

25 ACC Housing Asset Base Headlines 14% 31% 55% Total NPV of ACC Asset Base: 263M 8% stock has NPV - 25k 75% stock has +ve NPV 16% stock has management costs > 1k per unit 48% red assets have poor current cost score Response & Void Repairs 16% > 1k per unit 5% > 2k per unit 21% stock has capital investment costs > 45k per unit 1,300 traditional properties cost over 63M 36% amber is borderline green 21% amber is borderline red

26 Net Present Value Total NPV: 263M 25%-ve 75% +ve NPV Avg. 11k Max. 125k Min - 281k 33% 42% 25% What is driving NPV performance? 10% Stock > - 25k 45% stock arrears >10% 25% Voids > 10% 53% Response & void repairs > 1,500 55% Management costs > 1,500 47% Total capital spend > 40k

27 What is the financial impact of performance improvement in stock with high current cost profile? 148 units: Bottom Current Cost Score Current arrears % Average void rent loss% Average R&VR per property Management cost per unit NPV per unit Total NPV Current Profile 39% 12% 2,321 1,449-69,858-10,338,963 Improve Performance to Benchmark 4.5% 1.4% , ,314 Drains HRA by 10.3M HRA impact of performance improvement: 9.5M

28 Evidence Based & Integrated Repairs Strategy Critically assess outcomes & interrogate database Review asset performance Understand why stock is red, amber, green? Is performance driver controllable? Strategic decision making How should we target management, maintenance and investment strategy in light of the findings? Test impact on interventions: what happens if we alter Maintenance standards & outturns The costs, timing or nature of investment The customer impact of the stock Test impact of targeted performance measures on NPV Test impact of interventions on HRA business plan

29 An Integrated Approach: Future of the Repairs Strategy New philosophy New systems & approach New relationships & culture Total business approach to investment strategy Asset sustainability Repairs contribution Training & development Asset management model & action plan Systems review Data validation Information protocols Asset management strategic group Stronger partnership Joint planning Focus on outcomes