Asset Management Club Hertfordshire – 4 February 2016 Output report from:

WORKSHOP: WORKING CLOSER TOGETHER IN HERTFORDSHIRE – HOW CAN WE MAKE THIS HAPPEN? Discussions:

Group procurement – purchasing together is the way forward

Sheltered housing – approaches discussed to tackle not fit for purpose units

Standardisation – spec v performance spec, standard products

Can we share specifications and standards?

Predictive life of materials – life cycle, boiler management systems, technology sensor in kitchens etc. rather than simply on a 20 years programme

Ongoing issues with asset management data

Challenges with perennial issues mould / condensation

Resident choice – reduce? Consider themes rather than colour choice

What hasn’t worked and how to share – south facing door that bleached, component failure etc.

Digital portal to share and discuss

Be more honest with each other and share failings

Standardising all kitchens, bathrooms etc. the way DLO set up the van, the SOR used, have these standardisations been shared amongst the members? Problem would be the choice offered to customers and maybe the choices should be lowered to 4 only, plus if each member has their own performance specification would this work?

Productive Life Cycles of kitchens – is this investigated?

A £250 incentive to residents of a certain stature that do not want their kitchen changed (as long as it is in good condition). Residents over the age or 60 seems to be the age that go for this with positive feedback received

Is Decent Homes spec still being used or are members doing their own thing?

The grading of schemed properties is something that Dacorum BC are doing and they have 3 different levels – ‘adaptable’, ‘not adaptable’ or ‘currently adapting’

Asset disposal – how, where and when?

How can we share details of stock disposal areas / information in case any other member wishes to purchase?

Need to understand what are the best delivery models (outsourcing vs DLO vs WSO)

Smaller RP’s often need more resources to manage a wider range of services but cannot provide dedicated resource

Lack of skilled staff affects results

Staff retention/recruitment is a problem

Affective benchmarking is required

How can we use technology in maintenance? Are there any good practices?

There are too many duplications and wasted activities in the industry

Rent reduction means more pressure of delivery/programmes and service

Separating DLO works from gas maintenance and voids works has been very successful

We need to have contract procurement programmes

Outcomes/Actions:

John Rowan and Partners to explore a web portal for the club to share information

Members to share various programmes of procurement and contracts each period so that each can see how they can contribute or minimise duplications for each other

Members to share challenges on a regular basis

Each club member to nominate an individual so that communication can be efficient between each other

Members to notify whether or not they want to take part on a benchmarking exercise. The data will not be shared with any others than the source members

Thanks to Dacorum Borough Council who has volunteered to host the next event. Any specific topics members wish to be covered please let us know

CURRENT PROGRAMMES IN STEVENAGE BOROUGH COUNCIL AND THE CURRENT ISSUES, CHALLENGES AND OPPORTUNITIES

Neil Wilson-Prior, Interim Head of Asset Management - Stevenage Borough Council

VALUE FOR MONEY; COMPARING COST AND THE PERFORMANCE OF MAINTENANCE

Sean Tobin, Partner (Member) - John Rowan and Partners

COMMUNITY INVESTMENT – MAKING A DIFFERENCE AND WHAT WE HAVE LEARNT FROM OTHERS

Beatrice Dach, Stevenage Borough Council

9.00AM - 9.30AMArrive and coffee

12.45PM - 1.00PMConclusion and Feedback - Peter Nourse, Assistant Director of Housing - Stevenage Borough Council

9.30AM - 9.35AMWelcome introduction - Matt Partridge, Deputy Chief Executive - Stevenage Borough Council

1.00PM - 2.00PMLunch and networking

WORKING CLOSER TOGETHER IN HERTFORDSHIRE – HOW CAN WE MAKE THIS HAPPEN?Introduction by Gary Bagnall, Head of Asset Management - B3Living

Workshops chaired by Gary Bagnall and Neil Wilson-Prior

DELIVERING EFFECTIVE MAINTENANCE PROGRAMMES

Brian Golton, Head of BMO - Stevenage Borough Council

RESOURCES CHALLENGES AND FUTURE CHANGES IN TEMPORARY / INTERIM WORKING REGULATIONS

Daniel Short, Director - Greenacre Recruitment and Rhys Morgan, Business Development Manager - Crystal Umbrella

9.35AM - 09.50AM: SESSION 1

10.50AM - 11.20AM: SESSION 3

11.50AM - 12.15PM: SESSION 5

9.50AM - 10.50AM: SESSION 2

11.20AM - 11.50AM: SESSION 4

12.15PM - 12.45PM: SESSION 6

www.jrp.co.ukEmail us: jrp@jrp.co.uk

How do i get there?

Directions to Daneshill House

Stevenage Borough Council Daneshill HouseDanestreteStevenageHerts. SG1 1HN

www.jrp.co.ukEmail us: jrp@jrp.co.uk

Herts Asset Management Club

Thursday 4th February 2016

Welcome - Peter Nourse Assistant Director Housing

Current Issues, Challenges and

OpportunitiesCurrent Programmes in Stevenage

Neil Wilson-Prior

Interim Housing Professional

The opinions expressed in this presentation are

solely my own and do not necessarily represent

or attempt to represent the views or opinions of

Stevenage Borough Council or JRP.

Annus Horribilis

• There was a plan…

• There was an election…

• There was a need for a new plan…

Oh Dear

• Significant reduction in income.

• Other social policies impacting the predictability and expenses needed

to collect that reduced income.

• The Portfolio may not be worth as much as it was.

• RTB’s will increase. And we can’t all the keep the money

Oh Dear, Oh Dear

• Didn’t we just take out a loan?

• Our stock must perform.

• Our responsibilities are critical.

• And people don’t seem to want to stop aging.

Please make it stop

• The population of Stevenage is forecast to rise to almost 93,000 by 2035 if past trends continue.

• Future population growth will be concentrated in older age groups. The 60-74 age group is anticipated to increase by almost

a half. There will be a two-thirds rise in people aged 75 or over.

• If no further migration was to occur, the population would increase at a slower rate but there would be even greater increases in the

number of people of retirement age or older.

• The latest forecast shows a greater increase in population than previous results. However, first results from the 2011

Census suggest the current population may be higher than past estimates.

• The number of elderly people requiring accommodation in care homes and sheltered housing could double over the next 25 years.

• Approximately 6,000 homes will be needed between 2011 and 2031 to meet forecast changes in the population.

The bottom line

This will mean a c£12m reduction in rent by 2020/21

compared to current forecasts, equating to an

£225m drop in the Council’s rental income over the 30 year

business plan

Perhaps we should all go home

• Welcome to the town of the future.

• Bulk failures of elements across large proportions of local stock base in

a very short space of time.

• Competing demands on the HRA, competing perspectives on

investment priorities, difficult to model income potential.

The wheel of fortune

New BuildDebt

Capital

Works

Service

ChargeRents

Savings &

GrowthIncome

Stevenage

• 250 staff

• 8,200 + properties, all of which are retained and directly managed

• 1,300 leasehold properties

• 2,500 on waiting list

• 450 lettings a year

• £44M rental income

• Circa £20M capital programme

• £5M repairs budget

• £50M capital works programme for flat blocks

Gauging the scale

• 72% of stock has a positive NPV

• Poorly performing assets (1090 properties)

• Sheltered housing (amber schemes)

• Tower blocks

Current Investment Plans

• Holistic refurbishment of 550 PBB’s, including landscaping and

boundary control - £45mPA investment over 5(?) years.

• Continue to tackle fuel poverty, insulate where it makes sense to.

• Combined internal works contract for ‘Decent Homes’, voids and

A&A’s.

Coming up for air

• Procurement clubs, JV’s and thinking big.

• Early supply chain engagement.

• Knowing the real needs to target an invest-to-save approach

• De-risking our procurement to attract the best bids

Not my area

• New build.

• Get to 2020. Re-finance or retire.

• Re-appraise all assumptions.

• Keep an eye on the political landscape

Working closer together in Hertfordshire –How we can make this happen?

John Rowan and Partners is an award winning,

multi-disciplinary property and construction consultancy

Value for money

Services

Cost management Project management Building surveying

Strategic asset managementPlanningHealth and safety

Sectors

Hospitality ResidentialRetail

InfrastructureData centresOffices

Comparing cost and the performance of maintenance

John Rowan and Partners is an award winning,

multi-disciplinary property and construction consultancy

Benchmarking

• What is benchmarking?

• The benefits

• Comparing like for like

• Achieving savings

• Establishing value for money

• Scrutinising specifications

• Practices (good and bad)

Factors affecting price

• Procurement

• Contract management

• Specification

• Customer satisfaction

• Quality

• Delivery models

Capital works / planned

Kitchen£2,000

£5,000

Bathroom

£1,300

£2,200

Re-wiring

£1,300

£4,000

Heating

£2,500

£4,200

Examples – Reactive maintenance

Cost per property

£499 upper

£610 lower

£300 client 1

£726 client 2

Cost per repair

£125 upper

£149 lower

£220 client 1

£147 client 2

Void

£1,998 upper

£3,871 lower

£2,200 client 1

£1,562 client 2

Cyclical maintenance

£181 upper

£404 lower

£460 client 1

£359 client 2

Benchmarking - smaller group

Benefits / fit for purpose

Hertfordshire based?

Stevenage BC / B3Living / John Rowan and Partners

• Data collection

• Review

• Challenge

• Report

• Feedback

Delivering Effective Maintenance

Are DLO’s the Way Forward?

Brian Golton

What Makes A Great Repairs Service

• Ease of Use

• Customer Focus

• Clear Communication

• Meeting Our Commitments

DLO vs Contractors

• Contractors

• Supply Chains

• H&S Services

• Infrastructure

• Training and Development

• DLO

• Corporate Culture

• One Team approach

• Financial Benefit

The DLO Challenge (1)

• The Right People

• Management Team

• Trades Team

• Training and Development

• Career Progression

• Terms and Conditions

• Bonus Systems

• Working Hours

• Salaries

• Other Benefits

The DLO Challenge (2)

• Operations

• Management of ‘Blue’ and ‘White’ Collar Staff

• Productivity

• Service Scope Creep

• Investment

• Planned ‘Batched’ works

• Valuing the Work

The DLO Challenge (3)

• Getting the Right Infrastructure

• Job Costing/Management Tools

• PDA’s

• Vehicles and Equipment

• Materials Supply Chain

• Use of Sub Contractors

The DLO Challenge (4)

• Culture

• Corporate Culture and Values

• One Team Approaches

• Integration of Service Objectives

• The link between Productivity, Remuneration and Service

• Value for Money

• The Business Case

• VAT

• Higher Cost Options

The Service Challenge

• Same Day Repairs

• Seamless Service

• Customer Engagement

Community Investment

Making a difference and what we have learnt from others

DH Programme Years 3-5 (2013-2016)

125 apprenticeships

Over 200 weeks of work placements

An average of 130 people working on sites every month

40 school placements

38 DIY days

£34k of support to local groups and charities

8 refurbished community centres

Interesting Projects

Apprenticeships and Work Placements

Decorating Community Centres

before after

Splash Community Centre

Dora Hall

before after

DIY Days

Lessons Learned

Don’t try to reinvent the wheel

Gather your resources into workable network

Listen to the community

Be flexible

Appreciate people’s needs and life aspirations

Shout about the good stuff

See community investment form the commercial (contractor’s) point of view

Good News Stories

Questions?

The Summer Budget

The impact

Concerns

The jobs market – what to expect

Skill shortages and new skills required

How to compete

What the best employers do

Questions to consider

HMRC – Travel & Subsistence

Thank you