The Future Delivery of Repairs Services Event Pdfs/Housing Asset Man… · profile? 148 units:...
Transcript of The Future Delivery of Repairs Services Event Pdfs/Housing Asset Man… · profile? 148 units:...
Aberdeen City Council
The Future Delivery of Repairs
Services
John Quinn Aberdeen City Council
Donna Milton Arneil Johnston
Aberdeen City Council
Repairs Service Context
• Aberdeen City Council
– 23,000 houses
– 20% in multi storeys
– Large % of joint owners
– Location
– Competitive market
– Large Waiting List
– Mixed tenure demand
Aberdeen City Council
Repairs Service Context
• >500 staff
– 160-360 in 5 years
– 120+ agency staff
– Staff age profile
• Apprenticeships
– 52 awards over 5 years
– Best apprentice 2012
Aberdeen City Council
Repairs Service Context
• 30m revenue budget
– Low void level
• 50m capital budget
– SHQS…..EESH
• Trading business
• Head and body
Asset Mgt.
Development
Consultancy
Project Mgt.
Delivery
Aberdeen City Council
Approach
• What?
– A repairs service which has to be provided by a
landlord
• Why?
– Legal Requirement……tenancy agreements
• How?
– Planned Approach
• Who?
– Good Question………………………….
Aberdeen City Council
What!?
‘Certain repairs will almost always be
the landlord’s responsibility, whether
or not they are specifically mentioned in
the tenancy agreement’
Aberdeen City Council
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
Aberdeen City Council
Other Reasons Why…
• To provide a Service
– Regulated
• To provide Security
– To tenants
– Tenancy agreements
– Right to Repair
• To control Performance
Delivery
Performance
Security
Service
Aberdeen City Council
Again…. Why!?
• Knowledge of stock
• Age / History
• Knowledge of People – tenants
• Securing Investment
• Consistency of Service Delivery
• Consistency of Financial Profiling
Aberdeen City Council
So… How?
• In house team
• Outsourced
• Combination of two
– Managing Contractor
– Subsidiary Company
– JV, LLP, ALMO…
Aberdeen City Council
Determinates
• HRA
• Asset Management Plan
• Budget Planning
• Owners Rights
• Quality Standards
• Competitive Market Place
Aberdeen City Council
In House Team
• Market place
– Overheating
– Workforce planning
– Opportunity
– Corporate v Commercial
• Best value
• Performance
Aberdeen City Council
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
Aberdeen City Council
Combination of Two
• Partnerships
– Relationships
– Community benefits
• JV
– Legal
– ROI
• LLP
– Become External Agent
– Legal allowances……..
Aberdeen City Council
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!!)
Aberdeen City Council
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
Aberdeen City Council
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.
Aberdeen City Council
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
Aberdeen City Council
To be a strong & proactive partner in
developing & delivering an asset management
strategy
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 deliver a fit for purpose housing stock that meets statutory
requirements
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 deliver customer focused repairs, improvement &
maintenance works to a high standard
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 increase efficiency through expansion of capability, capacity &
profitability
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
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
Aberdeen City Council
The Future for Repairs
Planning & Delivery….
Integrated asset
management
Service Planning • Delivery & performance
Financial Planning • Business planning &
return on investment
Investment Planning • Long term costed
maintenance & repair
Aberdeen City Council
Not just focused on SHQS but on
business impact of asset from every
perspective…
If future costs are high, current costs are high and demand is low…
Should we continue to invest? Can we afford to invest?
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?
Aberdeen City Council
Is stock fit for purpose?
Current Cost
• Void Rent Loss: 1.4%
• Arrears: 4.5%
• Management Costs: £687
• Response Repairs: £586
• Net Present Value: £12k
Future Costs • 30 year SHQS: £23,200
• Structural costs: £15,800
Housing Demand • Turnover: 0.3
• Refusals: 0.2
• WL/Turnover ratio: 170:1
Assess relationship
between 3 key factors
Aberdeen City Council
GIS format enables detailed scrutiny of current cost, future
cost & demand
Aberdeen City Council
Asset Management in
Practice
Why is the response & void cost per unit
so variable in this street?
Aberdeen City Council
14% 31% 55%
ACC Housing Asset Base Headlines
75% stock has +ve NPV Total NPV of
ACC Asset Base: £263M
8% stock has NPV -£25k
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
16% stock has management costs
>£1k per unit
Aberdeen City Council
• 45% stock arrears >10%
• 25% Voids > 10%
• 53% Response & void repairs >£1,500
• 55% Management costs > £1,500
• 47% Total capital spend > £40k
What is driving NPV
performance?
10% Stock > -£25k
Total NPV: £263M
NPV Avg. • £11k
Max.
• £125k
Min
• -£281k 33% 42% 25%
25%-ve 75% +ve
Net Present Value
Aberdeen City Council
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%
£590
£690
£5,266
£779,314
Drains HRA by £10.3M HRA impact of performance
improvement: £9.5M
Aberdeen City Council
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
Aberdeen City Council
New philosophy
New systems & approach
New relationships &
culture
Total business approach to
investment strategy
Asset management model & action plan
Asset management strategic group
Asset sustainability
Repairs contribution
Training & development
Systems review
Data validation
Information protocols
Stronger partnership
Joint planning
Focus on outcomes
An Integrated Approach:
Future of the Repairs Strategy