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  • 1. Housing Revenue Account Asset Management Strategy 2008 – 2011 John Swanton MCIH Head of Housing Waverley Borough Council The Burys Godalming Surrey GU7 1HR Tel: 01483 – 523375 Email: john.swanton@waverley.gov.uk Web: www.waverley.gov.uk Report Date: June 2008 (Rev.a)
  • 2. (Last Updated 23/06/2008) WBC Asset Management Strategy CONTENTS INTRODUCTION AND CONTEXT ...................................................................... 4 Introduction ........................................................................................................4 Purpose of the HRA Asset Management Strategy...................................................4 Our Strategic Approach........................................................................................5 HRA Asset Management.......................................................................................6 Meeting Needs and Standards ..............................................................................6 Context...............................................................................................................7 Council Profile .................................................................................................7 Corporate Context ...........................................................................................7 EXECUTIVE SUMMARY ....................................................................................8 Scope of the HRA Asset Management Strategy......................................................8 Funding Position..................................................................................................9 ASSET PROFILE .............................................................................................10 HRA Assets .......................................................................................................10 Demand............................................................................................................11 Stock Analysis ...................................................................................................12 Stock History.....................................................................................................13 Obsolete Property..............................................................................................13 HRA Asset Database ..........................................................................................14 Aids and Adaptations ........................................................................................16 DECENT HOMES.............................................................................................17 Background.......................................................................................................17 Priority Re-investment Issues ............................................................................. 17 Decent Homes PLUS ..........................................................................................18 Decent Homes: Our Approach ............................................................................19 Garages ............................................................................................................20 Sustainable Re-investment .................................................................................21 Re-investment Priorities .....................................................................................22 Risk Management..............................................................................................24 Waverley Standard ............................................................................................24 VALUE FOR MONEY, PROCUREMENT AND PARTNERSHIP WORKING .......... 25 Value for Money ................................................................................................25 Procurement and Partnership Working...................................................... 26 Responsive Repairs ...........................................................................................27 Void and Re-let Standards..................................................................................29 Void Standard................................................................................................29 Re-let Standard .............................................................................................30 Planned Maintenance.........................................................................................31 Cyclical Maintenance .........................................................................................33 Health and Safety Works ...................................................................................34 Housing Health and Safety Rating System (HHSRS) ......................................... 35 Asbestos .......................................................................................................35 Legionella......................................................................................................36 Fire...............................................................................................................36 Estate and Common Part Risk Assessment Inspections..................................... 36 Health and Safety Checks...............................................................................36 Energy and Environmental Sustainability.............................................................37 Sheltered Housing Accommodation.....................................................................38 Family Accommodation ......................................................................................39 Estate Planning and Regeneration ......................................................................39 FUTURE..........................................................................................................40 Future of the HRA Asset Management Strategy ................................................... 40 - Page 2 of 82 -
  • 3. (Last Updated 23/06/2008) WBC Asset Management Strategy APPENDICES..................................................................................................41 Appendix 1 - Capital Programme ........................................................................43 Appendix 2 - HRA Capital 5-Year Projection ........................................................ 45 Appendix 3 – Decent Homes 30-Year Costs (as at 01-04-2008) ............................ 47 Appendix 4 – Decent Homes Failures by Component ........................................... 49 Appendix 5 - Procurement Strategy ....................................................................51 Introduction ..................................................................................................52 Procurement strategy objectives ..................................................................... 52 Strategy overview..........................................................................................53 General Requirements.................................................................................... 53 Major works Programme ................................................................................54 High level......................................................................................................54 External Fabric ..............................................................................................54 Fenestration ..................................................................................................54 Kitchen and bathroom upgrades .....................................................................54 Heating upgrades ..........................................................................................55 Electrical .......................................................................................................55 Insulation......................................................................................................55 Strategy Compliance ......................................................................................56 Appendix 6 - Risk Assessment ............................................................................57 Appendix 7 – Sustainability Model Summary Sheet .............................................. 61 Appendix 8 – Customer Survey .......................................................................... 63 Appendix 9 – Repairs Satisfaction.......................................................................75 Appendix 10 - Energy and Sustainability .............................................................77 Sustainability Policy .......................................................................................78 Sustainability .................................................................................................78 Energy Saving ...............................................................................................78 Selection of improved energy saving fittings and services................................. 78 Regulatory Framework ...................................................................................78 Embedded Energy .........................................................................................78 Renewables...................................................................................................79 Waste ...........................................................................................................79 Procurement..................................................................................................79 Recording and Monitoring .............................................................................. 79 Labelling .......................................................................................................79 Appendix 11 - Action Plan ..................................................................................81 - Page 3 of 82 -
  • 4. (Last Updated 23/06/2008) WBC Asset Management Strategy INTRODUCTION AND CONTEXT Introduction Asset Management is fundamentally about balancing assets, needs and resources. The aim is to maintain a balance between the Economic value of the assets and the Social and Economic needs of the residents. Waverley’s HRA Asset Management Strategy sets out our approach to managing the housing related assets held in the Housing Revenue Account. It covers a range of activities that ensure the housing stock meets the needs and standards required, both now and in the future The housing stock represents the Council’s most valuable asset and, set against the repair and maintenance costs, its largest liability. Waverley needs to ensure that the properties it owns and manages are: • in good condition; • in the right location; • designed to fit modern purpose; and • sustainable. Purpose of the HRA Asset Management Strategy The HRA Asset Management Strategy has been drawn up to complement the Housing Strategy 2008-11, the Housing Revenue Business Plan 2008 and the Corporate Plan 2008- 11, all of which form the basis for running our Landlord (HRA) services. It also forms part of a wider strategic approach to housing across the Borough. Due to the significant funding shortfall, Waverley has limited resources available to spend on its Assets. These, therefore, need to be closely managed in order to: • help meet housing needs across Waverley; • provide value for money; • keep dwellings in a good condition in cost effective ways; • strive to meet the government’s Decent Homes Standard; • bring properties up to date and in line with current and projected customer expectations and demand; • ensure works comply with current and future regulations; • provide a balance between responsive and cyclical repairs and capital investment; • reflect local diversity in its approach; • inform lettings, supporting people services, stock renewal and disposal strategies; • achieve high standards of energy efficiency; • create good neighbourhoods for council tenants and their neighbours; and • ensure that Waverley is a safe and reassuring place to live. - Page 4 of 82 -
  • 5. (Last Updated 23/06/2008) WBC Asset Management Strategy Our Strategic Approach Our Strategic Approach is to: Engage with tenants and Members in developing and implementing our Strategy Maximise our assets and minimise our liabilities Target capital resources at Health and Safety works first – which contribute to Decent Homes Standard (e.g. heating upgrades and rewiring) Develop a capital programme that meets tenants aspirations and priorities, whilst also working towards the Decent Homes Standard requirements Survey our housing stock every five years on a rolling programme and continue to improve the accuracy of our stock data Keep sheltered housing schemes under critical review in terms of capital investment needed -v- demand for the accommodation Dispose of property on the open market in order to generate resources to invest in the Decent Homes Standard. We will sell property that is: o Surplus to requirements; or o Needing considerable capital investment where this would not represent good use of scarce resources Seek value for money in all our investment decisions and contract procurement Continue a programme of selective demolition or refurbishment of garages blocks, depending on costs, demand and revenue streams Examine the most appropriate ways to dispose of land/property in order to achieve both more affordable housing whilst securing capital receipts for the HRA capital programme (Decent Homes programme) Revisit the option of Trickle Transfer of void properties to a social landlord Continue to let void properties promptly thereby minimising rent loss and maximising housing availability Continue to develop the responsive repairs service to provide the service our customers want Further develop partnering arrangements - Page 5 of 82 -
  • 6. (Last Updated 23/06/2008) WBC Asset Management Strategy HRA Asset Management Strategic Objective: To manage our assets effectively and efficiently making best use of available resources to help meet housing need and resident’s aspirations The priorities for achieving this objective are: • maximise funding; • consult with tenants when shaping our programmes of work; • create effective and efficient programmes of work; • achieve best value for money; and • continually review investment decisions. Meeting Needs and Standards The HRA Asset Management Strategy fundamentally needs to balance assets and needs, as illustrated below: Asset Management Strategy Social + Economic Economic Value Needs of Residents of Assets In order to ensure that the housing stock meets the needs and standards required now and in the future, the Strategy contains the following components: • A Planned Maintenance programme achieving economies by replacing components on a ‘just in time’ basis i.e. before they would otherwise require responsive repairs, anticipating changes in minimum acceptable standards and reducing future requirements for cyclical maintenance. • Cyclical maintenance to elements of a property including mechanical and electrical plant. • Continual programme of works to meet Health and Safety e.g. Rewiring and Heating Upgrades. • A Responsive Maintenance service to respond to unplanned failures in the properties and to prevent deterioration in their condition. • An efficient and effective Voids Repair service, helping to speed the repairs process and protect Waverley’s revenue. • Sale of properties to remove liabilities or to generate funds for future re-investment. • New Build working in conjunction with Housing Associations and other affordable housing providers. - Page 6 of 82 -
  • 7. (Last Updated 23/06/2008) WBC Asset Management Strategy Context Council Profile Waverley covers an area of 345 square kilometres in the south west of Surrey and is the largest district by area in Surrey. It is predominately rural, and three quarters of the area comprises of agricultural and woodland. 61% is ‘Green Belt’ and 80% is covered by environmental protection policies including the Surrey Hills Area of outstanding natural beauty and the Thames Basin Heaths Special Projects Area (TBH SPA). Waverley has devised an avoidance strategy whereby land has been allocated in Farnham Park so that developers may enter into a Section 106 Agreement and contribute towards the enhancement of the Park enabling them to comply with the TBH SPA open space requirements. Waverley is 35 miles from central London with good strategic road and rail links. However the Borough has a predominately rural road network and limited public transport. The Borough has a population of approximately 115,600 people and is a very popular area with a vibrant and successful economy. The demand for homes in the region is very high, with property values amongst the highest in the country. The average price for a three-bedroom house in Waverley, in the second quarter of 2007, was £378,430 (as detailed in the West Surrey Housing Market Assessment 2008. Source: The Land Registry). Corporate Context In February 2008, the Council agreed its Corporate Plan 2008-11, which has the following five key priorities: • Environment: - Protecting and enhancing Waverley’s unique mix of rural and urban communities. • Improving Lives: - Improving the quality of life for all, particularly the more vulnerable within our society. • Affordable Housing: - Working for more affordable housing to be built, and managing Council housing well. • Leisure: - Improving and supporting opportunities for all to take part in sport, recreation and culture. • Value for money: - Ensuring all our activities are customer focused and provide good value for money. Waverley Borough Council is mindful of the diverse needs of the wider community, regeneration issues and the need to ensure a ‘joined up’ approach to all it does. Its overall objective is to be innovative and deliver continuously improving, customer focused services with a long-term sustainable stock, in an efficient way. - Page 7 of 82 -
  • 8. (Last Updated 23/06/2008) WBC Asset Management Strategy EXECUTIVE SUMMARY This document establishes the framework through which the management of Waverley’s HRA assets will be delivered. It highlights the component parts of the Asset Management function and their interrelationship. It also forms part of a wider strategic approach to housing across the Borough. Scope of the HRA Asset Management Strategy • Outlines the Council’s position in the management of its housing assets, and how this aligns to the core business objectives in the Housing Revenue Account Business Plan. • Identifies the stock, its condition, use and required reinvestment over the next 30 years. • Records the risks and issues relating to those assets and how they may be eliminated, reduced and/or managed. • Identifies needs, future trends and changes that will influence how we manage our assets. • Outlines how we will approach Asset Management in the Housing Revenue Account. • Establishes methods for monitoring and evaluating the delivery of the aims of this Strategy. • Explains the methods through which we will procure and deliver programmes of work to our assets. The HRA Asset Management Strategy examines and highlights the differences between the cost of achieving and maintaining the Government’s Decent Homes Standard and the limited Capital and Revenue finances available to Waverley. It will then attempt to show options that will help to bridge the gap and illustrate the timescales involved. Waverley’s Housing Service has a number of strategic objectives, which underpin this document. These include: - • providing good quality homes to people in housing need and those requiring care and support; • maintaining our homes to a good standard, identifying non-decent properties and their failures and in which year they are or will become non-decent; • maximizing use of existing stock; • achieving a balanced portfolio through remodelling, sales, demolition and redevelopment and working in association with Housing Associations; • contributing to neighbourhood regeneration; • ensuring our houses comply with relevant regulatory requirements; • providing a range of homes; • consulting and meeting tenants aspirations; and • ensuring funding is maximized and the value for money is obtained. - Page 8 of 82 -
  • 9. (Last Updated 23/06/2008) WBC Asset Management Strategy Funding Position Waverley is deemed by the Government to be an affluent borough. As a result its resources are constrained by the requirement to return revenue to Government via a ‘negative subsidy’ system. Consequently, this year 49% (£10.3m) of all rental income has to be passed onto the Government. In three years time this will rise to 58%. Also, each time a council house is sold, 75% of the income is paid into a national pot, with Waverley permitted to retain only the 25% that is left for investing in basic improvements to council homes. As a consequence of this very challenging financial position, the Council cannot meet the Government’s standards for providing ‘Decent Homes’. The average rent for a council home in Waverley is £84.12 per week (2008/9). This is determined by Government rent guidelines. The Government is looking to standardise rents between properties in council and other social landlord ownership. This means that the residual income retained by Waverley is insufficient to meet the re- investment needs of the stock. All stock option studies undertaken have concluded that additional resources are needed to achieve the Government’s Decent Homes Standard and have a sustainable business. A review of the whole HRA subsidy system is being carried out by central government, with the findings informing the Comprehensive Spending Review in 2010. From Waverley’s perspective, any outcomes will need to be truly radical to reverse the current flow of resources to central government and enable Waverley to manage and maintain its housing assets in the long term. In the meantime, the absence of sufficient funds means that there will inevitably be an increase in ‘catch-up’ works. Estimated Capital Resources 2007/08 – 2012/13 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 £ £ £ £ £ £ Estimated Useable Capital 10,347,000 7,958,688 3,163,078 1,294,248 575,418 0 Receipts b/f Estimated Receipts in 2,237,284 500,000 500,000 500,000 500,000 500,000 year Major Repairs 3,498,000 3,463,220 3,400,000 3,400,000 3,400,000 3,400,000 Allowance TOTAL 16,082,284 11,921,908 7,063,078 5,194,248 4,475,418 3,900,000 Estimated Capital (8,123,596) (8,758,830) (5,768,830) (4,618,830) (4,475,418) (3,900,000) Programme Resources Carried 7,958,688 3,163,078 1,294,248 575,418 0 0 Forward - Page 9 of 82 -
  • 10. (Last Updated 23/06/2008) WBC Asset Management Strategy ASSET PROFILE HRA Assets The majority of Waverley’s stock is located within the Borough in the four population centres of Godalming, Haslemere, Farnham and Cranleigh. However, 9 homes in Haslemere are located just beyond the border in the Chichester district area and there is 1 house in Shalford, in the Borough of Guildford. In addition to dwellings, the Council owns a number of related assets. These include garage blocks and forecourts, five shops, two offices and various parcels of unadopted land, roads and paths, all of which are maintained by Waverley. Related assets including undeveloped spaces will continue to be assessed with respect to their sustainability, utility and contribution to their environment. In some instances redevelopment or change of use will be considered to provide an appropriately balanced environment, which enhances estate appearance and provides appropriate facilities. This awareness of environment will assist Waverley Borough Council to help deliver ‘Decent Neighbourhoods’ as well as ‘Decent Homes’. Waverley Borough Council’s Housing Management staff, pro-actively undertake ‘estate walkabouts’ jointly with Councillors, residents and other stakeholders, to assess and address condition and community welfare issues. As at 31st March 2008, the Council owned, in its Housing Revenue Account (HRA): - Tenanted dwellings 4,989 Interest in leasehold properties 405 Garages 735 Shops 5 Offices 2 Community Rooms 13 The total number of homes owned by Waverley reduces over time as tenants exercise their Right-to-Buy. In 1980, when the Right-to-Buy (RTB) was introduced, Waverley owned approximately 8,500 homes. Since then some 3,500 homes have been sold. More recently, sales have slowed significantly as property values have outstripped the ability of tenants to raise sufficient finance to purchase their homes – only 13 houses were sold under the Right-to-Buy in 2007/08. In addition, many of Waverley’s tenants are on low incomes, (60% receive Housing Benefit), and therefore cannot afford to exercise their Right-to-Buy. - Page 10 of 82 -
  • 11. (Last Updated 23/06/2008) WBC Asset Management Strategy Demand Current property values make house purchase beyond the reach of many residents in the Borough and this puts additional pressure on to demand for social housing. The demand for Social Housing in Waverley has significantly grown between 2007 and 2008 as demonstrated in the table below, split between bedroom number requirements. Also shown are the 3 highest priority bands, (A, B and C), at 31st March 2008, which show a similar proportionality in relation to bedroom need. Registered Registered Band A Band B Band C at 31.307 at 31.3.08 Priority Priority Priority 1 Bed 1,392 1,853 46 95 965 2 Bed 598 754 17 36 375 3 Bed 321 377 9 19 225 Total 2,311 2,984 72 150 1,565 The highest demand within Waverley’s portfolio is for general needs rented units, whilst the lowest is for sheltered bed-sit accommodation. The table below shows the number of properties that became empty and re-let in the year 2007/08. This again shows a similar proportionality. However it can also be seen that the number of vacancies falls very far short of the demand from people with a housing need. This makes it essential that we manage our properties to make the best possible use of them. The one and two bedroom categories include properties that are designed and let specifically to older age group tenants. Property Size General Over Elderly Total Needs 50 vacancies Bedsit/1 bed - - 65 65 1 bed 68 48 - 116 2 bed 73 - 4 77 3 bed 42 - - 42 Total 183 48 69 300 Waverley operates a Choice Based Lettings system, in partnership with the neighbouring authorities of Guildford, Hart and Rushmoor. This provides a new way of allocating council and partner housing association properties for rent and shared ownership properties for sale. Around 10% of the vacancies from each partner authority is made available to applicants that are registered with any one of the four authorities in the partnership. - Page 11 of 82 -
  • 12. (Last Updated 23/06/2008) WBC Asset Management Strategy Stock Analysis As at 31st March 2008, Waverley Borough Council’s stock profile was as follows: - Archetype Nos. Area No. Pre 1945 Small terrace house 100 Alfold 29 Pre 1945 Semi detached house 654 Bramley 201 All other pre 1945 houses 64 Chiddingfold 131 Pre 1945 flats (low rise) 33 Cranleigh 482 1945-1964 Small terrace house 204 Dockenfield 15 1945-1964 Large terrace house 715 Dunsfold 46 Post 1945 flats (low rise) 1,453 Elstead 153 1965-1974 house 262 Ewhurst 77 Post 1974 house 225 Farnham 1,317 Flats (medium rise) 337 Fernhurst 9 Bungalows 942 Frensham 117 Total 4,989 Godalming 1,091 Profile of stock by accommodation Hambledon 22 (archetype) Hascombe 15 Haslemere 740 Milford 239 Age Band Nos. Shalford 1 Pre 1945 862 Thursley 12 1945-1964 2,096 Tilford 5 1965-1974 897 Witley 164 Post 1974 1,134 Wonersh 123 Total 4,989 Total 4,989 The age profile of the stock The stock numbers by geographical area - Page 12 of 82 -
  • 13. (Last Updated 23/06/2008) WBC Asset Management Strategy Stock History The housing stock was inherited by Waverley in 1974 from four previous authorities: - Farnham (urban), Hambledon (rural), Haslemere (district) and Godalming (urban). As a result, the stock is of varying styles, ages and condition. Over the past twenty years investment has been made in the following areas: - • installation of central heating in the majority of the stock; • a full programme of cavity and loft insulation; • rewiring programme; • a significant double-glazing replacement window programme; • an ongoing programme of disabled adaptations; • roof covering replacement and roof repair; • significant structural repair due to subsidence and other building defects; • Health and Safety checks and inspections; • a kitchen and bathroom replacement programme (2005/06 only); • a rolling programme of improvements to Elderly Person Schemes and pre war properties; • a cyclical external redecoration and repairs programme – (now an external envelope repairs programme); and • a full programme of boiler servicing and regular unit replacement. Obsolete Property Certain dwelling types are now becoming obsolete. These include low demand bedsits in sheltered accommodation and elderly person units. Rowland House in Cranleigh was closed in 2007 and the Council is planning for it to be redeveloped for 100% affordable housing with a partner Registered Social Landlord. There are a number of reasons why a property may cease to meet Waverley’s strategic requirements and become obsolete: • the property may require a considerable amount of work to be done to bring it up to Decent Homes Standard; • the property may, over time, cease to meet the needs for which it was originally constructed; and • a property may become uneconomic to run. As most of the property is likely to be retained because of the clear demand for it, the following indicators are used to monitor the stock’s viability: • all properties where there has been a vacancy lasting more than 13 weeks and are empty as at the end of the last quarter under review; • all properties where there has been a re-let period of more than 13 weeks and where there has been more than 4 refusals; • any individual housing unit where there is a need to spend a considerable amount of money, i.e. more than £30,000; and • identify stock where we spend the most on day-to-day repairs. - Page 13 of 82 -
  • 14. (Last Updated 23/06/2008) WBC Asset Management Strategy HRA Asset Database A comprehensive Stock Condition Survey was started in 2003 and has been continually updated. To date, 97% of the Council’s homes have been surveyed. The remaining 3% now comprise of properties where there has been no access or where the tenant does not wish to have any works carried out. These will be surveyed, either when accessed during normal day-to-day maintenance activities, or when the property becomes void. The HRA Asset Management Database (Keystone) holds and provides all the attribute information, including replacement costs and lifecycles. It is used to carry out regular assessments of dwellings against the Decent Homes Standard. Robust stock condition information forms the cornerstone of an effective strategy and provides the information to produce programmes of investment to appropriately maintain the stock in good condition. The data is enhanced and regularly validated by feedback from all programmed and cyclical repairs and maintenance activities and updated with historic works and attribute records. This provides a comprehensive single data source for condition information, works programmes, renewals and cyclical maintenance history. The accuracy of the stock condition information is key to the sustainability and robustness of the HRA Asset Management Strategy. A 20% sample re-survey of the stock will therefore be carried out on a five yearly cycle. External consultants, Ridge and Partners, have carried out a comprehensive validation of our Stock Condition Survey. Their reported findings were that the data was found to be both sound and robust. To achieve our objective to strive to meet the Government’s Decent Homes target, we will: - • set programmes of work which reflect tenants priorities, as well as the other requirements; • identify and assess properties with a high maintenance cost and low lettings potential; • continually monitor and review current expenditure to make best use of funding; • create innovative schemes which will improve Waverley’s homes at optimum cost to the Council; and • carry out a 20% sample stock condition survey every 5 years to maintain accurate and up to date information. - Page 14 of 82 -
  • 15. (Last Updated 23/06/2008) WBC Asset Management Strategy The process used to enhance the Asset Management Database, is illustrated in the diagram below: - STOCK CONDITION SURVEY DATABASE ENHANCEMENT Current Database Review Review Schedule of Schedule of Life Rates Cycles Review Survey Form Design Preferred Survey Format Housing Management National Register of System/Overview Social Housing (NROSH) Validate Block Records/Codes Attribute Latest Address List Records/Format Housing Health & Other Data Records Safety Rating System (HHSRS) Review Reporting Rules Current System Other Works Records Cyclical Records Data Import Asbestos Register (mapping) Additional/Ongoing Latest Stock Survey Surveys Updated Database RIDGE - Page 15 of 82 -
  • 16. (Last Updated 23/06/2008) WBC Asset Management Strategy Aids and Adaptations Strategic Objective: To deliver a responsive aids and adaptations service which meets the needs of customers and provides good value for money Priorities to Achieve Objective: • improve timescales for disabled adaptation completions; • ensure budget is spent effectively; and • monitor customer satisfaction and learn from experience. We recognise our social responsibility to provide adaptations and facilities for people with a disability and our responsibility to comply with the requirements of the Disability Discrimination Act (DDA). As at 7th April 2008, 2,173 tenants were over the age of 60 with a further 719 aged between 50 and 60, the two groups representing over 57% of our tenants. We also know that 19% of our tenants are in receipt of Disability Living Allowance. The demand for this type of work reflects our tenant profile and the budget provision of £520,000 in 2008/09, is a significant portion of the Capital Programme of works. The type of work undertaken ranges from small items like handrails, to more major adaptations and, in a few cases, an extension. There is a team of staff dedicated to this work who have developed systems to: • ensure cases are effectively prioritised; • work is carried out in a timely fashion, subject to Social Services assessments; and • tenants are satisfied with the work. We understand that we need to do more on Typical accessible shower this service area to ensure that the work undertaken is timely, cost effective and that it meets tenants’ needs. In March 2008 we started issuing a satisfaction survey on the completion of each job and the results of these will feed into a review of the service. We try to ensure that vacant properties , which have disabled adaptations, are re-let to a new tenant who needs them. This minimises the need for further expenditure on such works for the new tenant. However this approach can sometimes extend void times while a suitable applicant is sought. In the end, a balance needs to be struck and if a suitable household is not available at the right time the adaptations may have to be removed and the property let without them or to a household who does not need them. - Page 16 of 82 -
  • 17. (Last Updated 23/06/2008) WBC Asset Management Strategy DECENT HOMES Strategic Objective: To make as many homes as possible meet the Government’s Decent Homes Standard within the resources at our command. The priorities for achieving this objective are to:- • identify non-decent homes and their failures and in which year they are or will become non-decent; • continually review programmes of work to ensure that as many homes as possible will meet the decent homes standard within funding available; • be imaginative in devising ways to meet the Decent Homes Standard; • ensure available funding is maximised and that good value for money is obtained in packaging and procuring works; and • Consult with our residents to gain their views and do our best to meet their aspirations when we are delivering decent homes. Background The Government’s Decent Homes Standard was introduced in July 2001. It was designed to create a ‘minimum standard’ of housing across all Local Authorities and Registered Social Landlords. The current deadline for bringing all stock up to Decent Homes Standard is 31st March 2011. The Council has undertaken programmes of work over the years to carry out replacements of building elements such as rewiring, heating upgrades/boiler replacements, roof covering replacement and double-glazed window replacement. But financial shortfalls have prevented us from introducing major kitchen and bathroom replacement programmes. The table in Appendix 3 shows the total 30-year reinvestment requirement and the existing budgetary forecasts over the same period of time. The significant funding shortfall means that Waverley is unable to fully deliver the identified Decent Homes requirements, within the current financial constraints, by 2011. (See section on Funding Position (page 6) for more details). Priority Re-investment Issues Following the tenant ballot in December 2005 against the transfer of the stock, the additional funding needed to achieve the Government’s target for Decent Homes by 2010 (now end of financial year 2010/11) was not available, and a review of the investment priorities was required. Priority has been given to Decent Homes' work where it also enables us to complete essential Health and Safety works. By combining these two factors in this way, we plan to maximise the number of Decent Homes we can achieve, but still ensuring that Health and Safety requirements are met. - Page 17 of 82 -
  • 18. (Last Updated 23/06/2008) WBC Asset Management Strategy Although this is considered a sensible approach, under the circumstances, it is recognised that there are a number of difficulties associated with it. These include: • year on year shortfall of works not able to be carried out; • we cannot make a significant reduction in the percentage of homes remaining non- Decent; • there is an increase in the backlog of existing catch-up repairs; • insufficient funds to meet the Government’s target; and • we do not have a sustainable position for the long term. The stock condition survey indicates that the stock requires a significant programme of work to maintain the stock over a 30-year business plan term. According to a survey of our tenants in January 2008, the priority issues for re- investment, over the next three years, are: Total No. of Work Cost Dwlgs. 1 Bathroom replacement £4.9m 2,100 2 Kitchen replacement £12.8m 2,500 3 External door replacement £1.0m 1,500 4 Re-roofing £1.6m 300 5 Heating upgrades £3.9m 1,000 The forecast of works required to meet the Decent Homes Standard indicates that the criterion in which most failures are found is that for disrepair (Criterion B). A failure in this category is realised when components are both old and in poor condition. Currently Decent Homes Criteria Non-Decent A. HHSRS 437 B. State of Repair 2,017 C. Modern Facilities 733 D. Thermal Comfort 229 Total No. Non- Decent (1) 2,644 Total %age Non- Decent 53% (1) Where a dwelling fails under two or more criteria it will only be counted once as a Decent Homes failure. Decent Homes PLUS As stated earlier, meeting the Decent Homes Standard, within the given timescale, will not be possible within the current financial arrangements. However, Waverley recognises that the Decent Homes Standard, as laid down by the Government, is a basic/minimum standard. Following consultation with tenants, we have chosen to exceed this standard in certain areas to provide a better living environment for our residents, (as well as trying to achieve a sustainable approach) and therefore we are, in some aspects, working to a ‘Decent Homes Plus’ Standard. This includes putting in a minimum 250mm thickness of loft insulation, installing double- glazing and by generally working to the higher ‘Waverley Standard’ as agreed with the tenants. - Page 18 of 82 -
  • 19. (Last Updated 23/06/2008) WBC Asset Management Strategy Decent Homes: Our Approach 53% of Waverley’s stock is flagged as non-decent. If no work is carried out to these non-decent properties by 2010, this total is likely to reach 68%. Over the next three years (from 2008/09 to 2010/11) there is an estimated £19m available for capital expenditure on planned maintenance to WBC housing stock. This equates to £6.4m average per year. (see Appendix 2). The headings of required work have been divided into 4 priorities for expenditure:- • Priority 1 Health and Safety and statutory obligations • Priority 2 High priority works • Priority 3 Medium priority works • Priority 4 Low priority works The work towards Decent Homes is spread amongst the priorities stated above, depending upon its importance within Health and Safety obligations. Distribution of finance to these works is commensurate with its priority. 36% of the total finance available for programmed work is allocated to work that comes within the Decent Homes criteria, which equates to £2.3m per year. The full amount identified by the stock condition survey as needing to be spent to achieve full compliance with Decent Homes targets by 2010/11 is £32m. This equates to an average of £10.7m per year. We therefore have a shortfall of £8.4m per year. Within the reserves available the following processes are being implemented to maximise the number of properties that achieve Decent Homes status over the next 3 years:- • Where lists of properties are compiled for Health and Safety priority work that coincide with Decent Homes criteria, they are all drawn from the survey data held on Decent Homes. This enables identification of the further expenditure that needs to be spent if the property is to achieve decency. This data can then inform other related programmes of work and so focus the minimum expenditure on the maximum number of properties, which fail the Decency criteria. • Any void properties that require more than £30,000 spent on them will be considered for disposal on the open market. • As work is carried out, the Asset Management Database system is updated to enable the most current Decent Homes figures inform policy. • A grant scheme has been set up to assist tenants who wish to carry out their own Decent Homes work. Profile of Non-Decency up to 2010/11, based on current levels of expenditure:- Total Non Decent Non Decent Year Stock Stock %age 2005/06 5,023 2,914 58% 2006/07 5,012 2,846 57% 2007/08 4,989 2,650 53% 2008/09 4,976* 2,446* 52%* 2009/10 4.963* 2,435* 49%* 2010/11 4,950* 2,376* 48%* * Estimated figures (assumes RTB sales of 13 per year) - Page 19 of 82 -
  • 20. (Last Updated 23/06/2008) WBC Asset Management Strategy Garages Strategic Objective: To make the best use of garage sites and maximise income from garage rents Priorities to achieve the objective: • carry out a financial and usage assessment of each site; • allocate funding for repairs to the sites which are likely to yield the most income or community benefit; and • identify sites, which could be suitable for redevelopment. The condition of our garages is generally poor. The majority of them are of the pre-fabricated concrete type with asbestos cement roofs and reaching the end of their life. Although car ownership has risen since the garages were built, demand has fallen. In some areas there is high demand evidenced by a waiting list but in other areas use has fallen away completely. These factors have led us to consider our garage policy and strategy Typical Asbestos Garage for future use. A Garage Strategy Group has been set up to examine the current and future use of garages and sites. The Group is empowered to make management and maintenance decisions and recommend policy changes. Our strategic approach is to maintain and improve garages in high demand and constant use. Those if regenerated, would have a good potential for income, are included in a long-term plan for refurbishment. At the other end of the scale, disused garage areas with little prospect of further use have been identified for potential redevelopment. To reduce maintenance liabilities, a number of garages in low or no demand and in poor condition have already been demolished and the sites laid out for car parking. Over the period 2000 - 2008, 609 garages have been demolished. We undertake void inspections of empty garages to assess condition. Limited funds and the need to concentrate spending on Decent Homes and structural repair programmes to our houses means future investment in garages will remain a low priority. - Page 20 of 82 -
  • 21. (Last Updated 23/06/2008) WBC Asset Management Strategy Sustainable Re-investment The Asset Management and Investment Group has been established to oversee and deliver the HRA Asset Management Strategy. It is made up of the following:- • Asset Manager (Chair) • Head of Housing • Housing Portfolio Holder • Tenant Representative • Housing Maintenance Manager • Housing Needs Manager • Principal Housing Accountant • Void Team Manager • Building Services Manager Other Housing staff will be seconded as and when required. The Group assesses works programmes, considers long term maintenance investment decisions, promotes options appraisals in the context of sustainability model findings, considers wider initiatives, monitors and reviews performance and takes ownership of the Waverley Borough Council Housing Standard, (Waverley Standard), reassessing it from time to time in the context of the Business Plan. The Group agrees standards and establishes logical programmes of work designed to meet the requirements of the stock. This is based on the recommendations of the Housing Maintenance Manager and Asset Manager. Requirements should go beyond those that are purely technical and thus should take account of other factors that contribute to effective asset management, such as tenant priorities The Group examines the most effective ways of using our limited resources. These include: - • setting the programme of works for the next 5 years using tenants’ views to inform the programme (see Appendix 1); • identifying and assessing properties which have a high maintenance cost and are also hard to let and making recommendations to senior management for disposal or refurbishment. The assessment is carried out using a sustainability model including a matrix to identify low and high demand dwellings; • reviewing the progress of works in the current year to assess expenditure and identify if funding can be reallocated to decent homes work; • discussing innovative schemes, which will promote the completion of decent homes work by tenants, e.g. a tenants grant scheme introduced in Dec. 2007, whereby tenants receive up to £1,000 or 30% (whichever is the lesser) of the cost of the works. To date there have been 42 expressions of interest, 8 of which have subsequently applied for the grant; • assessing decent homes data to identify single or minimum cost non-decent items that can be carried out within existing budgets; and • assessing voids to identify if, in certain cases, a limited exception to the void standard would produce a Decent Home. - Page 21 of 82 -
  • 22. (Last Updated 23/06/2008) WBC Asset Management Strategy Re-investment Priorities Investment priorities are identified through a ‘Sustainability Model’ (see Appendix 7 for years 1-5 results). The model considers a range of inputs, including income, demand and projected costs. Properties are then classified as Red, Amber or Green (RAG status). Property in Red or Amber status are subject to further investigation, or review, through an options appraisal, under the supervision of the Asset Management and Investment Group, until they are either re-classified or until such time as an alternative strategy is agreed (e.g. disposal or re-development). A key consideration is the aspirations of residents, which have been identified using questionnaires and consultation groups. Their priorities (See Appendix 8) are taken into account when determining our programmes of work. The Red/Amber/Green status will be determined by plotting the re-investment required (cost) for the proposed projects against demand, via the Sustainability Model. The assessment of cost is made with direct reference to the Asset Management Database and associated reports. Demand is assessed with reference to the Housing Needs Register; Choice Based Lettings (CBL) information about bids; Housing Management perception; void turnover rates and associated performance indicators. Disposal of assets will be assessed on a number of factors of which the sustainability model is only one. Others are: - • Location; • Environment; • Revenue stream implications; • Affects on other disposals; • New build and refurbishments in the area; • Capital generation; and • CBL information about bids (i.e. demand). We believe that paying attention to the views of our residents will assist in improving satisfaction with the service as a whole. - Page 22 of 82 -
  • 23. (Last Updated 23/06/2008) WBC Asset Management Strategy The Sustainable Re-investment process is illustrated below: Sustainable Re-Investment Process Decent Homes Asset Register Asset Management Housing Management Overview Void rates Database Condition/Cost Demand (£) Assessment Assessment Sustainability Income (Yield) Model Local Area Assessment Re-Investment Status Validate Data Local Authority Strategy HQI Detailed Development Options Study Re-Invest Strategy Neighbourhood Assessment Alternative Action Disposal Re-Development Works Re-Classify Status Programmes RIDGE Change Lettings Type - Page 23 of 82 -
  • 24. (Last Updated 23/06/2008) WBC Asset Management Strategy Risk Management An important part of Asset Management is to identify and understand the risks that can influence or change strategy in the short, medium and long term. Waverley Borough Council has a risk management strategy, which has been used for identification and to identify measures that can be put in place to reduce their impact. (Refer to Appendix 6) Waverley Standard We recognise that Decent Homes is a ‘minimum standard’ and support the House of Commons Select Committee recommendation (2004) that social landlords should aspire and plan for a standard that takes account of the views and aspirations of residents. This has been embodied in the ‘Waverley Standard, for our houses. This document sets the standard for materials, design, procurement and management for the repairs and maintenance service and was drawn up in consultation with a wide range of stakeholders. In 2004, the Member/Tenant Special Interest Group (SIG) agreed and approved a Standard for key elements of work. Following the outcome of the Stock Options Appraisal in December 2005, the Waverley Standard was challenged as being greater than the ‘minimum’ standard required. Given inadequate funding to achieve the Decent Homes Standard the SIG was asked to review it again. However, subject to small changes, it was reconfirmed. The document comprises of 4 sections: • General standards and objectives, including broad policy statements; • An output specification, by component, for use with the non-technical stakeholders including residents and housing management staff; • A detailed specification including British Standard and other references based on the industry standard National Building Specification; and • WBC policies including asbestos, waste, environmental and elemental groupings. - Page 24 of 82 -
  • 25. (Last Updated 23/06/2008) WBC Asset Management Strategy VALUE FOR MONEY, PROCUREMENT AND PARTNERSHIP WORKING Value for Money Strategic Objective: To ensure the Council and its tenants receive good value for money in all its service areas and contract works Priorities to Achieve Objective: • Carry out best value/value for money reviews; • Consider all types of contract procurement to achieve best value; • Ensure the corporate procurement policy and procedures are followed; • Invite tenants’ views to ensure expenditure reflects their aspirations; and • Ensure effective supply chain management The objectives tie in with the Government's Key Lines of Enquiry (KLOE) inspection process and the current efficiency agenda with the emphasis on improving services at little or no cost but by adding Value for Money. The Housing Service embraced Best Value in 2000 with an ambitious programme of 10 reviews over the following 3 years in order to examine and alter services across the Council as appropriate. Outcomes and recommendations from all the reviews were approved and implemented over the period with regular updates. The Government’s New Efficiency Regime requires all local authorities to measure and report Value for Money gains over the 3-year period 2008-09 to 20010-11. The headline savings target is 3% each year and the target is now multiplicative (i.e. 3%, 6.1%, 9.3%). Waverley’s indicative target is based on the 2007/08 approved budget. We undertake a number of customer surveys with individuals, following delivery of our service. For example, after each responsive repair job and each planned repair job, customers are invited to comment. These responses are used to inform the management of our contracts to help us to deliver excellent quality services. We also carried out a STATUS survey late in 2006, when questions were asked in a general sense about satisfaction with the repairs service. The results of this survey showed that 75% of tenants were satisfied with the overall Repairs and Maintenance service. We will be undertaking a new satisfaction survey in the summer of 2008. The outcome of the survey is analysed and an action plan formulated that is agreed by the Executive and implemented with input from residents. In addition, Waverley Borough Council has a well-established resident involvement framework including focus groups and the Tenants Panel. Policy formulation and review involves consultation with tenants and feedback is given directly to the Executive. Waverley Borough Council’s Tenant Participation Compact has been in place since 2002 and is reviewed on a regular basis. - Page 25 of 82 -
  • 26. (Last Updated 23/06/2008) WBC Asset Management Strategy An example of Value for Money is where we were able to beat the London Housing Consortium’s price for double-glazing by using our existing local glazing contractor, following a competitive tendering process. Procurement and Partnership Working The Council is located in an area of high demand for construction related services with resultant high costs. The rates of construction price inflation are very high and have exceeded other measures of wider inflation such as the Retail Price Index (RPI) for several years. This means that Waverley must work hard to establish good long term working relationships with reliable contractors and other parts of the supply chain. The Council recognises the principles and value of working in partnership with contracted services and other stakeholders. We understand the importance of effective procurement and the requirements for good working relationships with partner providers who are capable of delivering high standards and good value for money. Where it is beneficial, we will continue to develop long term partnering relationships with contractors who view the Council as an important local customer. We will encourage improvement and efficiencies in terms of cash savings and non-cash benefits through striving for continued Best Value and by considering collective procurement with similar organisations. It is important for Waverley to achieve Value for Money when delivering maintenance works and assessments are carried out to determine the most suitable form of procurement for particular projects. For example, in 2007 a pre project assessment of a contract for window replacement in 1,000 homes looked at consortia working, but concluded that better value would be achieved by tendering the work to an open market and this proved to be the case. The contract for the delivery of responsive and void works was organised and let on the basis that both parties will work together to integrate procedures and Typical Replacement Windows jointly look for efficiencies where it is in the best interests of service delivery. This includes moving to a simpler method of invoice payment that does not involve the complexities of a schedule of rates. This is currently being piloted on voids with a lump sum arrangement. The Council continues to explore opportunities for consortium procurement to assist in improving value for money through economies of scale, although the current resources position means that the programme size is modest. There has been a long-term programme of Estate Regeneration, the most recent project being in Haslemere. This delivered 84 new properties with 57 allocated as affordable housing. Local residents, the Council, an RSL, the contractor and architect worked together with other stakeholders as a partnership. - Page 26 of 82 -
  • 27. (Last Updated 23/06/2008) WBC Asset Management Strategy The design and preparations for this work took a year to complete, were jointly undertaken and work did not commence on site until all parties involved were satisfied with their part in the project. This method of working is expected to be replicated on future similar projects, although it is unlikely that Waverley as a landlord will be able to fund new homes itself All contract arrangements are audited and monitored to ensure that value for money is being achieved at all levels and projects are being delivered to the appropriate quality and service standards. The ‘Waverley Standard’, prepared in consultation with a wide range of stakeholders, sets out material and repairs standards that should be adopted when procuring work. We aim to undertake a greater proportion of the work in a pre-planned way to benefit from the potential for lower costs and improved consultation and communication The limitation of finance for future maintenance, influences the choice of procurement methods. Currently, the adoption of a mixed policy of procurement methods, delivers Value for Money. (The Procurement Strategy is set out in Appendix 5) Responsive Repairs Strategic Objective: To provide a customer focussed responsive repairs service, which achieves high levels of performance, customer satisfaction and good value for money Priorities to Achieve Objective • Develop successful working relationships with contractors • Making appointments for all repairs • Getting the job done right first time as quickly as possible • Using tenant views to shape the service • Carrying out as many repairs in a pre planned way as possible A ‘responsive repair’ is a repair carried out as a result of wear and tear, accidental or deliberate damage or the weather. Requests for responsive repairs usually tenant driven and undertaken as a single job normally of a low value, which make them difficult to programme. As mentioned elsewhere, maintenance can be undertaken more effectively and economically if it is carried out on a planned as opposed to a responsive repairs basis. We aim to minimise the amount of works undertaken through responsive repairs by adding them to planned contracts where possible. Therefore no major works or component renewals are financed through this part of the budget unless they represent an unforeseen and significant health and safety issue. - Page 27 of 82 -
  • 28. (Last Updated 23/06/2008) WBC Asset Management Strategy Repairs that are not the Council‘s responsibility or which arise through the unreasonable actions of a third party are re-charged. The responsive repairs service has more contact with tenants and customers than any other maintenance service and is therefore used as an important measure of how effective the housing service is by the majority of customers. Contracts are in place for the following Responsive Repairs: • Day to Day Repairs – combined with void and external envelope repairs • Gas Heating Repairs – combined with gas servicing • Lift Repairs – combined with lift maintenance • Alarm and Warden Call System Repairs The Day-to-Day responsive repairs service, is carried out by a single repairs contractor EPS. It generates the most repairs of all the responsive services and we are working to improve the service and value for money. Using one supplier and offering a single large contract has encouraged the contractor to invest in the area by opening a dedicated office in Haslemere. The contract was awarded on a partnering basis and has built-in agreements to work together to bring in more efficient systems and use of resources with an ongoing commitment to continuous improvement. The current payment arrangement is on a Schedule of Rates basis. Work is ordered by the Maintenance Customer Services Team on our Integrated Housing System and then electronically transferred to our contractors system. The contractor then schedules the work and makes an appointment for this to be carried out. Key improvements to this process being pursued are: • reducing duplication between contractor and WBC; • alternative simplified payment mechanisms; • co-Location of contractor and WBC staff; • making appointments at first point of contact; • improving tenant involvement to develop the service; and • grouping as many repairs as possible so they can be undertaken in a more pre planned way. The Gas Heating repairs service is based on a lump sum per property and any repair work is carried out at no additional cost to Waverley. This contract has been awarded on a partnering basis in conjunction with the servicing contract. This has proved to be a very successful partnership with good performance rates being achieved. - Page 28 of 82 -
  • 29. (Last Updated 23/06/2008) WBC Asset Management Strategy Void and Re-let Standards Void Standard Strategic Objective: To make void properties available for letting as quickly as possible, minimising rent loss and maximising the housing available, whilst striving to meet customers’ expectations Priorities to Achieve Objective • improve re-let timescales; • further develop partnering arrangements; • maximise the use of IT; • provision of a re-let standard that meets customers’ expectations; • provide a safe and secure home; • provide a sustainable house; and • identify properties that are obsolete and a high cost to maintain in order to determine its future. Our contractor EPS has a dedicated Voids maintenance team. This maximises operational and administrative efficiencies. We intend to further develop opportunities to move towards a full partnering arrangement. We continue to aim to minimise the time a property is unoccupied by carrying out Pre Void Inspections wherever possible. We also identify properties where fast tracking is possible and set a challenging re-let time. In 2007/08 we achieved an average re-let time of 24 days. To underpin our objective to minimise re-let times the following partnering arrangements have been implemented: - • lump sum payment; • contractor supervisor working as part of the Void Team as a Void Inspector; • contractor supervisor working two days a week with the Void Team at Waverley Borough Council; Non-Decent Void Kitchen • use of laptops on site to send works orders direct to Customer Service Team, Home Choice Team and Voids Team Manager; • immediate notification of properties where structural defects have been identified; • structural survey and reports within 2 days; and • early identification of HHSRS issues. - Page 29 of 82 -
  • 30. (Last Updated 23/06/2008) WBC Asset Management Strategy As part of the void process, to assist in meeting Decent Homes, any Decent Home failure identified, which is not part of a planned maintenance contract, will be carried out whilst void. If rewiring or central heating have been identified as being required during that financial year then that work will be carried out whilst the property is void. Re-let Standard The re-let standard “Welcome to your new home” was developed from the information received from the new tenants phone survey. The content and format was approved in consultation with tenants and Tenants Panel. The re-let standard is reviewed on an annual basis incorporating feedback from tenants. All new tenants are phoned and asked specific questions relating to the property. The new re-let standard has also been sent to 150 tenants for their comments. All void properties have a full electrical inspection and two gas services, one on the property becoming void and the other the day before occupation. This follows best practice, as advocated by the Audit Commission and C.O.R.G.I. Any damaged asbestos containing materials are removed. Any Legionella contamination of the water supply is also treated. Typical new Kitchen A recharge order is raised for removal of goods and clearance of gardens to recoup expenditure and where the tenancy agreement has been breached. To promote sustainability, all void properties are provided with energy efficient lamps and, where possible, “water hippos” placed in the WC cistern. Early identification of structural defects and quick delivery of the structural survey facilitates the early reporting of properties that require high cost expenditure. - Page 30 of 82 -
  • 31. (Last Updated 23/06/2008) WBC Asset Management Strategy Planned Maintenance Strategic Objective: Providing a customer focused planned maintenance programme. Achieving good value for money by replacing components just before they would require significant responsive repairs, anticipating changes in standards and reducing requirements for future responsive and cyclical maintenance. Priorities to Achieve Objective: • undertake as much work as possible using pre-planned methods; • achieve an 60/40 split between planned and responsive work; • provide a planned maintenance service that our customers require; and • have contracts that provide best value and achieve high customer satisfaction. Using planned maintenance contracts means we: • can review and update them in the context of agreed investment priorities of the Asset Management and Investment Group; • achieve Value for Money through economies of scale by securing better prices for components when many are ordered instead of “one off” purchases; • get better consistency of component used which is good for subsequent repairs and material performance assessments; • provide effective communication and consultation with tenants through the use of tenant contract monitoring and the issue of informative newsletters and website; and • safeguard the residents and properties, avoiding the inconvenience and risk of further expense associated with unexpected failures. We plan and undertake works in accordance with the following priorities, agreed by the Executive in March 2007: 1. Health and Safety, wind and weather tight 2. Essential testing and servicing 3. Essential structural repairs 4. Disabled adaptations 5. Decent Homes 6. Planned component renewals 7. Sustainability and environmental improvements 8. Other works We have a five-year programme of works (See Appendix 1), which prioritises work on this basis. Requirements for planned maintenance are derived from the Asset Management Database, which has been informed by the stock condition survey. The survey was undertaken on the basis of predictions for major repairs or component renewals on a pre- planned ‘just in time' basis. - Page 31 of 82 -
  • 32. (Last Updated 23/06/2008) WBC Asset Management Strategy ‘Just in Time’ is a best practice principle promoted by the CLG in the guidance ‘Collecting, managing and using Housing Stock Information-a good practice guide’. Best practice advises that components should not be renewed ahead of schedule (lifecycle + actual condition), nor should they be renewed too late. Wherever possible, work will be carried out on a just in time basis. Waverley’s highest priority is Health and Safety work, which includes significant expenditure on heating upgrades and rewiring. This work also contributes significantly to achievement of Decent Homes. A major programme of window replacements for 1,000 properties across the Borough has been allocated priority funding. This is in accordance with the Council’s current administration manifesto pledge and is based on previous tenant surveys. This will add significantly to the elements that will achieve decency. Our commitment to Health and Safety means other areas of work are generating a backlog. Those areas particularly affected, include bathroom and kitchen replacement work. We are also unable to carry out any major programmes of works on estate improvements, fencing works and no such work is likely within the foreseeable future. We are however prioritising properties where a single element failure would make the property Decent. This may mean we carry out some work, which we would not ordinarily complete. An example of this would be the replacement of front or back doors or prioritising a heating upgrade to a property where this is a single failure, in preference to a property where the heating system is in a similar condition, but there are other elemental failures. We have developed long-term contracts for elemental work and these have been successful in keeping costs to a minimum. We plan to expand modern procurement systems with more long term contracts to enable best value to be central to the organisation and delivery of work. The Housing Service’s Procurement Strategy (see Appendix 5) has identified groupings of work where we use modern methods of procuring/tendering for the following: - • Reroofing and high level works (roofs, chimneys, soffits, fascias etc) • External overview of the fabric (external envelope) • Windows and external doors • Heating both Gas and Electric • Rewiring • Asbestos Removal (prior to works) • Disabled adaptations • Insulation - Page 32 of 82 -
  • 33. (Last Updated 23/06/2008) WBC Asset Management Strategy This approach encourages good working arrangements with suppliers and contractors and also reduces the requirement to regularly produce specifications, thus enabling works to start on site sooner and staff to concentrate on proper planning and the key aspects of delivery which are: - • Health and safety • Time • Quality • Cost • Customer Satisfaction Cyclical Maintenance Strategic Objective: To prevent deterioration in the condition of the elements of a property by carrying out regular cyclical maintenance. Priorities to Achieve Objective: • Undertake programmes of work to all priority cyclical maintenance requirements. Cyclical maintenance is the regular maintenance of elements of a property including mechanical and electrical plant. Cyclical servicing is planned at regular defined intervals, for example annual boiler servicing, based on statutory requirements or best practice. Current cyclical maintenance programmes are as follows: • Annual Boiler Servicing • Monthly Boiler Inspections to our Commercial / Communal Boiler • Ten yearly electrical safety inspections and five yearly to common parts • Lift Servicing • Fire Safety Installations • Tunstall maintenance of fire extinguishers, fire alarms and warden call systems in Sheltered Housing Schemes • Legionella Prevention • Internal Common Part Redecoration • Five yearly external envelope repair works including redecoration - Page 33 of 82 -
  • 34. (Last Updated 23/06/2008) WBC Asset Management Strategy The contracts for boiler and lift servicing are combined with the responsive contracts for this work. The contract for electrical safety inspection work is with the contractor who undertakes our responsive, void and external envelope work. This enables any of the essential electrical responsive type remedial work to be undertaken in-conjunction with the inspection. Renewal of gas appliances, electrical installations, guttering, fascias and soffits or other elemental replacements may be identified during cyclical maintenance work. This may be added to a programme or carried out as part of the cyclical work. The external envelope contract addresses all items of repair that could lead to a health and safety issue or which could lead to a responsive repair. This includes external redecoration where necessary. To ensure that items due for renewal are not painted shortly before they are renewed no order to redecorate is raised if the anticipated life of that element is less than 5 years. This is determined from the Asset Management Database or an inspection. This ensures as far as possible that on the completion of the external envelope repair work to each property we have 5 years free from responsive repairs to the external envelope. This principle is further extended to items that if not decorated will still last another 5 years and retain a good appearance. A sheltered front or back door or bitumen painted rainwater or soil and vent pipe for example would not be redecorated. As with planned maintenance we prioritise the repairs required on a Health and Safety basis with the lower priority, external envelope work not currently receiving sufficient funding to enable the full programme of work to be completed. Revenue funding for work from 2009/10 onwards is unlikely to be available. Risk assessments have been completed and are reviewed on a periodic basis regarding the risk of Legionella to our sheltered housing units. The contractor who maintains the heating installations to these units undertakes cyclical testing and prevention work. We are also carrying out risk mitigation work by flushing hot and cold water systems to void properties just before they are occupied. Health and Safety Works Strategic Objective: To ensure that our dwellings meet health and safety requirements so that tenants are living in a safe and secure environment Priorities to Achieve Objective: • Identify and Manage risks including: • Housing Health and Safety Rating Defects • Asbestos • Gas Installations • Electrical • Legionella • Fire • Estate Risk Assessment Inspections - Page 34 of 82 -
  • 35. (Last Updated 23/06/2008) WBC Asset Management Strategy Housing Health and Safety Rating System (HHSRS) The HHSRS has replaced the Fitness Standard element of the Decent Homes Standard. The HHSRS assesses the health and safety risks inherent in a property. If a property fails the HHSRS it automatically fails the Decent Homes Standard. HHSRS failures are classified as Priority One works and will be addressed at the earliest opportunity. It is a more demanding standard than the Fitness Standard and, as a result, has increased the number of properties that are potentially non-Decent. However, its introduction came after the completion of our Stock Condition survey. Therefore, as part of our strategy for meeting the HHSRS requirements, all Housing Department staff involved in property or tenancy management have been trained to identify potential HHSRS failures. Key surveying personnel have received full training in HHSRS assessments. This will enable us to build up an accurate figure of how many homes are non-decent as a result of failure through HHSRS. To Achieve our HHSRS Objective we will:- • get staff and contractors to identify failures during their normal day-to-day activities; • record failures on Database; • carry out these works as a high priority; and • continually review programme of HHSRS work to ensure maximum Decent Homes work can also be achieved. Asbestos We conduct surveys and sampling and manage asbestos containing materials in accordance with our Asbestos Policy and Management Plan and the Control of Asbestos Regulations 2006. We carry out type 2 surveys and the information is held in an Asbestos Register together with a risk assessment. All high and medium risk asbestos containing Asbestos Cistern materials are removed as they are identified. Low risk asbestos containing materials are left in-situ and are only removed if the risk should change, i.e. should they become damaged for instance or they require removal to enable repair or alteration work to be carried out. All contractors working on our properties are provided with a copy of our register and no work is permitted to commence without reference to the Asbestos Register. Where the register is incomplete or inconclusive, further type 2 or 3 surveys are undertaken. As at January 2008, 93% of the housing stock had been surveyed for the presence of asbestos. The remaining 7% is programmed to be carried out by the summer of 2009. Asbestos Floor Tiles - Page 35 of 82 -
  • 36. (Last Updated 23/06/2008) WBC Asset Management Strategy Management of retained asbestos is carried out as part of the void process and once the survey is completed periodic inspection of the asbestos will be carried out. An explanatory and advisory leaflet about asbestos has been sent to all tenants and leaseholders. We are planning to issue residents with the register for their property in the next 12 months. Legionella We are developing a Legionella Prevention Policy and are currently undertaking a sample of inspection and risk assessments to all types of property to identify the extent of the risk that needs to be mitigated. So far this has identified that a significant proportion of our properties may require cleaning and chlorination of the water systems, as this is unlikely to have been carried out since the property was built. We are also likely to need to replace approximately 50 cold- water storage tanks a year. Fire In accordance with the Management of Health and Safety at Work regulations 1999 and the Fire Precautions (workplaces) regulations 1997 Waverley has a programme of carrying out fire assessments of communal areas to flat and multiple occupation dwellings. Housing management and maintenance staff has completed training to enable these inspections and assessments to be carried out in-house. As these inspections are completed they are recorded on a register. The work to mitigate the risk is undertaken and a management inspection process put in place. Estate and Common Part Risk Assessment Inspections Maintenance staff carry out regular inspections of the estate areas and common parts of our assets. An assessment is undertaken based on the Housing Health and Safety Rating System and where high risks are identified, mitigating works are undertaken. Regular, but less formal, estate walk-about with Councillors, residents and housing management staff also take place. Health and Safety Checks We realise the importance of regularly checking the elements of a property and the environment, which are likely to present the highest risk to the occupant. We have in place a 6-point framework for keeping abreast of these issues, namely:- • Electrical Safety Inspections – a periodic check of the electrical installations • Legionella Risk Assessment – a sample risk assessment of our normal stock in addition to regular risk assessment of our sheltered housing units. • Gas Safety Check • Asbestos Surveys • Fire Risk Assessments • Estate and Common Part Risk Assessment Inspections - Housing Health and Safety Rating System defects - Page 36 of 82 -
  • 37. (Last Updated 23/06/2008) WBC Asset Management Strategy Energy and Environmental Sustainability Strategic Objective: To ensure that our homes are energy efficient and sustainable so that tenants are living in a warm, safe environment Priorities to Achieve our Objective: • Provide a high level of insulation to the properties • Provide efficient, easy to use heating systems • Provide low energy fittings • Provide room-sealed appliances when upgrading heating installations to reduce risk of carbon monoxide • Investigate and implement alternatives for improving energy efficiency and sustainability Waverley Borough Council has a Climate Change Action plan and the Housing Service has a contribution to make in achieving the objectives set out in this document. All Council houses have had cavity wall insulation installed where this is possible. Similarly all properties without cavity walls have external wall insulation where this is possible. We have insulated lofts to a standard of 250mm thickness insulation where this achievable. Future programmes will be considered to improve this standard still further. There is an ongoing programme to replace all gas boilers with high efficiency condensing units. In 2007 the Council decided to double glaze 1,000 of its stock. As a result, by March 2009, 80% of the total stock will be double-glazed. A pilot project to assess the energy sustainability of an area of Council Housing has been carried out in the Chiddingfold area using the EcoHomesXB criteria. The results of the pilot were analysed by the Asset Team and future programmes of work can be targeted to improve the SAP rating across the stock. As part of a new build project, undertaken by the Housing Service, and completed in 2007, 33 Council owned houses for rent were built to EcoHomes ‘Very Good’ standard and two were upgraded and awarded 'Excellent' status. Monitoring the use of these building and lessons learnt will help to inform future refurbishments and redevelopments. Liaison has taken place with the Energy Saving Trust to identify what renewable energy initiatives could be instigated in the Housing stock. New Build - Kiln Avenue Haslemere However at present such projects are not possible with the current level of funding available. We are currently undertaking an energy audit on our sheltered housing units to identify and implement energy savings. In addition we encourage the use of low energy saving light fittings by installing these in void properties and provide residents with energy saving ideas in newsletters, as part of the gas safety inspection and on the web. Also, as from 1st October 2008, we will be producing Energy Performance Certificates (E.P.C.s) for our properties each time there is a change of Tenancy. This is in line with the E.U. Directive on the energy efficiency of rented accommodation. We will continue to be aware of legal and advisory initiatives in energy and waste saving, and promote the processes to our contractors and suppliers. (The Energy Sustainability Policy is set out in Appendix 10) - Page 37 of 82 -
  • 38. (Last Updated 23/06/2008) WBC Asset Management Strategy Sheltered Housing Accommodation Strategic Objective: To provide sustainable, locally based accommodation for elderly people where additional support can be provided. Priorities to Achieve our Objective: • Develop and Implement ‘Older Persons Housing Strategy’ • Introduce 'Extracare' sheltered housing schemes where possible • Carry out a quarterly review of the performance of our Sheltered Housing Accommodation Waverley Borough Council currently has 9 sheltered housing schemes. These schemes represent a significant asset in terms of the both the value of the properties, the management costs and the income stream they represent for the Council. Demand for the accommodation in some of these units is however reducing. This is in part due to the elderly remaining more fit and active into later life, the desire to stay in the original family home and social policy to provide care and support in ones own home. The quality of the accommodation that is offered in the sheltered housing units is generally good however, some schemes - particularly Rolston House in Haslemere and Wey Court House in Godalming, have a significant proportion of bedsits. Aspirations among older people are changing and bedsits are becoming more difficult to let. Overall, Waverley achieves a high level of occupancy running at 98% of available properties in 2007/08 Waverley has historically placed great value on the services that it has provided for the elderly and great care has been taken in the design, provision and refurbishment of these schemes. Blunden Court Sheltered Accommodation Of the original 11 schemes in existence in 1988 a rolling programme of modernisation has seen 3 schemes completely refurbished - Blunden Court in Bramley, Dower House in Milford and Rolston House in Haslemere. Another two have been de-commissioned. Dorlcote, a sheltered housing scheme in Witley, was decommissioned and demolished in 2006 because of the reducing demand for this type of accommodation and it’s inherent construction defects. The site has now been developed by Thames Valley Housing Association, providing 20 affordable homes and a capital receipt that Waverley is investing in its own housing Stock Capital Programme. Rowland House, a sheltered housing scheme in Cranleigh, was decommissioned in November 2007. It is intended that a Housing Association will redevelop the site to provide social housing. The building is currently vacant, except for an area used by the Cranleigh Day Centre. - Page 38 of 82 -
  • 39. (Last Updated 23/06/2008) WBC Asset Management Strategy We are currently developing an Older Persons Housing Strategy, which will address sheltered housing need and supply across Waverley. The Council has reviewed the service, the location, quality of accommodation and demand for it’s sheltered housing service since 2005. Improvements in health and social care and the Council’s ‘Community Supporting People’ service have meant that increasingly older people have been supported to remain in their homes. Following a review from 7th April 2008 the sheltered housing service has fully moved from an on-site 24-hour staffed service to a Monday to Friday service delivered by a Manager and Assistant Manager with out of hours cover from 24/7 Guildford Care Centre. The new staffing structure for sheltered accommodation will deliver revenue savings in the order of £311,000 in 2008-09. Over the last few years, Falkner Court and Riverside Court, Farnham have been re- designated as 'Extracare' sheltered housing schemes, in line with County Council policy. We are working with the Supporting People Team and Social Services to see whether we can develop any further 'Extracare approach' service in our remaining schemes. We continue to monitor the use, lettings and demand profile of our remaining sheltered housing units identifying obsolescence. We carry out a quarterly review of all these schemes. We have no funds available to undertake a major refurbishment or redevelopment of any Sheltered-housing scheme. Family Accommodation The introduction of a Choice Based Lettings system in April 2007 has encouraged tenants to consider moving through offering more choice and a more transparent system. The Allocation Policy was also revised in 2006 and a higher priority is given to tenants releasing one and two bedrooms, this being a recommended course of action in the CLG’s Tackling Overcrowding in England – An Action Plan. We run an incentive scheme providing a cash transfer grant to help tenants with their moving costs when they move from family sized accommodation to smaller properties. We need now to consider how we can do more to tackle under-occupation to release more family homes. Estate Planning and Regeneration It is recognised that apart from the maintenance programmes which keep the properties in a wind and weather tight condition, planning for estates that addresses their long-term sustainability is necessary. Over the past twenty years it was possible to plan for, instigate and complete long term work to three of the identified estates in Waverley that required investment for lifetime sustainability: - • The Chantrys at Farnham - (1992) • Martins Wood at Milford - (1991) • Kiln Fields at Haslemere - (2004/06) - Page 39 of 82 -
  • 40. (Last Updated 23/06/2008) WBC Asset Management Strategy There are a variety of estates across the Borough, all of which are different and individual solutions were devised for each. However common to all was the recognition that mixed tenure estates with diverse opportunities for rent, sale, or part buy seemed to provide the most robust future direction. Waverley is currently commencing an extensive consultation process with the residents of the next identified area for regeneration, Ockford Ridge in Godalming. This has been prompted by the poor layout internally, for example the bathrooms are situated off the kitchens and the toilets have no wash hand basin. The whole layout of the estate is also poorly planned. They were constructed in the 1930s and in 1980s we started an improvement programme but this was never completed due to diminishing funds. Whilst these properties could be upgraded to meet the Decent Homes Standard this will not address these fundamental layout issues. The current view is that as other social housing providers are able to regenerate Ockford Ridge we are not likely to be financing this ourselves and have made no provision for this in the 30-year Plan. Whilst we have limited funding available for estate planning or regeneration we continue to make small improvements that are highlighted in various ways including our tenant involvement and consultation process known as “Estate Walkabouts” e.g. improvement to bin store areas throughout the Borough. FUTURE Future of the HRA Asset Management Strategy WBC recognises that the HRA Asset Management Strategy is a dynamic document that will develop over time. Implementation of programmes of work, changing needs, and the realisation of business objectives will require the HRA Asset Management Strategy to be ‘live’. It will therefore continuously evolve over time. It sets out the Council’s commitment to providing decent and affordable homes to tenants, through effective investment and neighbourhood planning. It will adapt to a number of influences, including: • Changing need; • Changes in legislation and regulation; • Changes in aspirations; • Changes in corporate objectives; and • Changes in funding regimes. It provides the necessary strategic and considered approach to the delivery of key objectives, which will ensure high performance and asset management re-evaluation from a best value culture and perspective. The Strategy will be formally updated annually, alongside each revision of the Business Plan and it is intended that it will provide a framework in which the Council co-ordinates and organises all activities that lead to the future viability of the housing stock. - Page 40 of 82 -
  • 41. APPENDICES - Page 41 of 82 -
  • 42. - Page 42 of 82 -
  • 43. Appendix 1 - Capital Programme - Page 43 of 82 -
  • 44. (Last Updated 23/06/2008) WBC Asset Management Strategy Appendix 1 - Capital Programme Anticipated Potential 2008/09 2009/10 2010/11 2011/12 2012/13 Outstdg. Wrk Resource Statement Shortfall to Programme Programme Programme Programme Programme (up to 2010/11) 2010/11 as at Mar. 2008 Major Repairs Allowance £3,463,220 £3,400,000 £3,400,000 £3,400,000 £3,400,000 Accumulated RTB Capital Receipts £5,295,610 £2,368,830 £1,218,830 £756,080 £500,000 New RTB Capital Receipts (Net of levy) Estimated Other Capital Receipts Revenue Contribution to Capital Trickle Transfer Receipts Total Resources Available £8,758,830 £5,768,830 £4,618,830 £4,156,080 £3,900,000 Capital Expenditure Profile PRIORITY 1 Health and Safety and Statutory Obligations Heating Upgrades (DHS) £1,400,000 £1,750,000 £1,700,000 £1,300,000 £1,300,000 £7,521,000 -£2,671,000 Rewiring (DHS) £800,000 £500,000 £166,000 £1,466,000 £0 Water Supply (DHS) £50,000 £50,000 £50,000 £50,000 £50,000 Fire Safety Upgrades £100,000 £20,000 £20,000 £20,000 £20,000 Upgrading lifts to comply with DDA Disabled Adaptations (New schemes) £520,000 £520,000 £520,000 £520,000 £520,000 Disabled Adaptations (Backlog) Disabled Works (Specialist Services) £20,000 £20,000 £20,000 £20,000 £20,000 Asbestos Management £70,000 £60,000 £60,000 £60,000 £60,000 Asbestos Removal £250,000 £250,000 £200,000 £200,000 £200,000 Capital Health and Safety Work from Responsive Repairs £100,000 £100,000 £100,000 £100,000 £100,000 Structural Repairs to tenanted homes £600,000 £500,000 £500,000 £500,000 £500,000 Voids - Major Structural Repairs (DHS) £500,000 £500,000 £500,000 £500,000 £500,000 Legionella RA (DHS) £75,000 £75,000 £75,000 £75,000 £75,000 Project Professional Fees £150,000 £100,000 £75,000 £75,000 £75,000 Sub-Total £4,635,000 £4,445,000 £3,986,000 £3,420,000 £3,420,000 PRIORITY 2 High Priority Works Re-roofing (DHS) £150,000 £150,000 £1,274,000 -£974,000 Communal Aerial Upgrades Homeless Hostels £0 Garages (Safety Works Only) £100,000 £20,000 £20,000 £20,000 £20,000 Tree Risk Management Feasibility Studies £45,000 £45,000 £45,000 £45,000 £45,000 Fees Professional Fees £0 £0 £0 £0 £0 Stock Survey £50,000 £50,000 £50,000 £50,000 £50,000 Salary and Internal Costs Allocated to MRA £493,830 £493,830 £493,830 £493,830 £493,830 Sub-Total £838,830 £758,830 £608,830 £608,830 £608,830 PRIORITY 3 Medium Priority Works Demolitions Bathroom Upgrades (DHS) £50,000 £4,609,000 -£4,559,000 Kitchen Upgrades (DHS) £635,000 £12,829,000 -£12,194,000 Window and Door Replacement (DHS) £2,600,000 £550,000 £4,192,000 -£1,042,000 Thermal Insulation (DHS) £0 £0 £0 £0 £0 £13,775 -£13,775 Professional Fees £15,000 £15,000 £15,000 £15,000 £15,000 Sound Insulation Community Safety Work Sub-Total £3,300,000 £565,000 £15,000 £15,000 £15,000 PRIORITY 4 Low Priority Works Estate Improvement Works Renewal of Fencing and Gates External Security Lighting Non-traditional properties Ventilation Improvements Smoke Detectors Party Wall Fire Breaks Car parking Road Improvements Unadopted Roads Sheltered Housing Upgrades Sub-Total Decent Homes Work Total £6,260,000 £3,575,000 £2,491,000 £1,925,000 £1,938,775 Capital Expenditure Summary Priority 1 Works £4,635,000 £4,445,000 £3,986,000 £3,420,000 £3,420,000 Priority 2 Works £838,830 £758,830 £608,830 £608,830 £608,830 Priority 3 Works £3,300,000 £565,000 £15,000 £15,000 £15,000 Priority 4 Works £0 £0 £0 £0 £0 TOTAL PLANNED EXPENDITURE £8,773,830 £5,768,830 £4,609,830 £4,043,830 £4,043,830 TOTAL RESOURCES AVAILABLE £8,758,830 £5,768,830 £4,618,830 £4,156,080 £3,900,000 Balance -£15,000 £0 £9,000 £112,250 -£143,830 - Page 44 of 82 -
  • 45. Appendix 2 - HRA Capital 5-Year Projection - Page 45 of 82 -
  • 46. (Last Updated 23/06/2008) WBC Asset Management Strategy Appendix 2 - HRA Capital 5-Year Projection HRA CAPITAL 5-YEAR PROJECTION 2007/2008 Indicative Indicative Indicative Indicative Indicative Likely 2008/09 2009/10 2010/11 2011/12 2012/13 Outturn Estimate Estimate Estimate Estimate Estimate PROJECT IMPROVEMENTS £ £ £ £ £ Decent Homes Work Decent Homes Work 3,853,262 3,100,000 2,200,000 1,600,000 1,277,250 1,021,170 Double Glazing Programme 703,322 2,600,000 550,000 Other Programmed Maintenance Stock Condition Survey/Decent Homes St'd 74,666 50,000 50,000 50,000 50,000 50,000 Other Programmed Maintenance 2,079,202 1,950,000 1,910,000 1,910,000 1,770,000 1,770,000 Disabled Adaptations 710,283 520,000 520,000 520,000 520,000 520,000 Other Capital Feasibility Studies 38,082 45,000 45,000 45,000 45,000 45,000 Sundry Projects 170,309 - - - - - TOTAL IMPROVEMENTS £7,629,126 £8,265,000 £5,275,000 £4,125,000 £3,662,250 £3,406,170 Capital Salaries 494,470 493,830 493,830 493,830 493,830 493,830 TOTAL HOUSING REVENUE ACCOUNT £8,123,596 £8,758,830 £5,768,830 £4,618,830 £4,156,080 £3,900,000 ESTIMATED RESOURCES Estimated Usable receipts b/fwd 10,347,000 7,958,688 3,163,078 1,294,248 575,418 0 Estimated receipts in year (07-08 includes Oakbraes/The Cottage) 1,917,000 500,000 2,237,284 500,000 500,000 500,000 Major Repairs Reserve 3,498,000 3,463,220 3,400,000 3,400,000 3,400,000 3,400,000 16,082,284 11,921,908 7,063,078 5,194,248 4,475,418 3,900,000 Estimated capital programme + 06-07 slippage (£8,123,596) (8,758,830) (5,768,830) (4,618,830) (4,475,418) (3,900,000) Resources c/fwd £7,958,688 £3,163,078 £1,294,248 £575,418 £0 £0 - Page 46 of 82 -
  • 47. Appendix 3 – Decent Homes 30-Year Costs (as at 01-04-2008) - Page 47 of 82 -
  • 48. (Last Updated 23/06/2008) WBC Asset Management Strategy Appendix 3 – Decent Homes 30-Year Costs (as at 01-04-2008) ND Year DHCriteria DHComponent 2008-09 2009-10 2010-11 2011-12 2012-13 2013-2018 2018-2023 2023-2028 2028-2033 2033-2038 Grand Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6-10 Year 11-15 Year 16-20 Year 21-25 Year 26-30 HHSRS Collision and Entrapment £13,986 £13,986 Damp and Mould Growth £4,995 £4,995 Domestic Hygiene Pests and Refuse £999 £999 Electrical Hazards £3,996 £3,996 Entry by Intruders £5,994 £5,994 Excess Cold £2,997 £2,997 Falls Between Levels £27,720 £27,720 Falls on Stairs and Steps £84,420 £84,420 Falls on the Level £4,995 £4,995 Food Safety £1,998 £1,998 Fuel Combustion Products (CO) £999 £999 Lighting £999 £999 Personal Hygiene Sanitation and Drainage £1,499 £1,499 Structural Collapse and Falling Elements £130,986 £130,986 Water Supply £999 £999 HHSRS Total £287,583 £287,583 Reasonably Modern Facilities Adequate insulation against external noise £89,910 £89,910 Adequate size and layout of common areas for blocks of flats £1,998 £1,998 Appropriately located bathroom and WC £987,000 £987,000 Bathroom 30 years old or less £582,467 £17,630 £897,913 £25,200 £60,260 £1,492,586 £1,552,670 £684,192 £929,863 £413,660 £6,656,441 Kitchen 20 years old or less £954,516 £333,938 £2,800,666 £315,328 £263,138 £2,503,504 £4,109,736 £1,390,250 £12,671,075 Kitchen with adequate space and layout £2,518,500 £2,518,500 Reasonably Modern Facilities Total £5,134,391 £351,568 £3,698,579 £340,528 £323,398 £3,996,089 £5,662,406 £2,074,442 £929,863 £413,660 £22,924,924 State of Repair Bathroom £2,467,250 £31,500 £818,070 £37,590 £202,510 £809,455 £1,143,575 £1,566,175 £1,598,170 £701,326 £9,375,621 Brickwork £3,000 £500 £3,500 Central heating - other £2,500 £2,500 £2,100 £2,100 £9,200 Central heating - storage heaters £117,600 £29,400 £88,200 £8,400 £12,600 £205,800 £378,000 £84,000 £50,400 £130,200 £1,104,600 Central heating distribution system £151,380 £10,800 £324,000 £7,200 £1,498,140 £1,004,940 £3,970,980 £2,394,000 £1,677,780 £11,039,220 Central heating gas boiler £1,649,025 £893,025 £615,825 £58,275 £179,550 £1,154,475 £2,299,500 £20,475 £9,450 £6,879,600 Chimneys £44,200 £1,300 £10,400 £1,300 £76,700 £209,300 £230,100 £1,567,924 £843,050 £2,984,274 Electrical systems £694,320 £342,610 £371,660 £61,380 £31,620 £1,174,260 £1,100,360 £1,113,300 £1,200,800 £2,655,740 £8,746,050 External doors £607,103 £163,119 £162,278 £73,645 £67,907 £623,544 £889,812 £606,308 £1,369,758 £768,550 £5,332,024 Kitchen £4,296,946 £136,631 £2,000,848 £60,000 £145,000 £3,113,046 £4,160,614 £2,588,504 £4,324,736 £3,510,250 £24,336,574 Roof covering £555,940 £285,165 £433,120 £312,310 £417,875 £2,247,895 £1,828,565 £1,485,975 £3,496,968 £3,119,120 £14,182,933 Roof structure £58,275 £119,700 £50,925 £173,775 £73,500 £1,430,100 £1,901,025 £1,043,175 £1,224,825 £408,083 £6,483,383 Wall finish £332,365 £76,410 £238,230 £115,785 £171,945 £1,239,900 £1,947,655 £1,219,003 £2,363,540 £2,457,535 £10,162,368 Wall structure £260 £260 £260 £260 £260 £1,170 £30,940 £33,410 Windows £106,695 £1,351,080 £1,505,205 £60,165 £988,065 £495,315 £1,634,130 £981,000 £3,840,435 £1,980,405 £12,942,495 State of Repair Total £11,084,359 £3,443,240 £6,621,521 £962,625 £2,297,772 £14,068,891 £18,499,835 £14,909,254 £23,432,726 £18,295,029 £113,615,251 Thermal Comfort Effective insulation £14,050 £14,050 Efficient heating £128,330 £128,330 Thermal Comfort Total £142,380 £143,530 Total DH Costs £16,648,713 £3,794,807 £10,320,100 £1,303,153 £2,621,170 £18,064,980 £24,162,242 £16,983,696 £24,362,589 £18,708,689 £136,971,288 Additional DH Costs Fees (8%):- £1,331,897 £303,585 £825,608 £104,252 £209,694 £1,445,198 £1,932,979 £1,358,696 £1,949,007 £1,496,695 £10,957,611 Other Costs Fire Safety Upgrades £100,000 £100,000 Disabled Adaptations £540,000 £540,000 £540,000 £540,000 £540,000 £2,700,000 £2,700,000 £2,700,000 £2,700,000 £2,700,000 £16,200,000 Asbestos Management £70,000 £70,000 £70,000 £70,000 £70,000 £350,000 £350,000 £350,000 £350,000 £350,000 £2,100,000 Asbestos Removal £250,000 £250,000 £250,000 £250,000 £250,000 £1,250,000 £1,250,000 £1,250,000 £1,250,000 £1,250,000 £7,500,000 Capital Health and Safety Work from Responsive Repairs £200,000 £100,000 £100,000 £100,000 £100,000 £500,000 £500,000 £500,000 £500,000 £500,000 £3,100,000 Major Structural Repairs (part only) £250,000 £250,000 £250,000 £250,000 £250,000 £1,250,000 £1,250,000 £1,250,000 £1,250,000 £1,250,000 £7,500,000 Voids - Major Structural Repairs (part only) £200,000 £200,000 £200,000 £200,000 £200,000 £1,000,000 £1,000,000 £1,000,000 £1,000,000 £1,000,000 £6,000,000 Legionella RA £100,000 £100,000 £100,000 £100,000 £100,000 £500,000 £500,000 £500,000 £500,000 £500,000 £3,000,000 Garages (Safety Works Only) £100,000 £100,000 £100,000 £100,000 £100,000 £500,000 £500,000 £500,000 £500,000 £500,000 £3,000,000 Feasibility Studies £45,000 £45,000 £45,000 £45,000 £45,000 £225,000 £225,000 £225,000 £225,000 £225,000 £1,350,000 Stock Survey £50,000 £50,000 £50,000 £50,000 £50,000 £250,000 £250,000 £250,000 £250,000 £250,000 £1,500,000 Salary and Internal Costs Allocated to MRA £150,000 £150,000 £150,000 £150,000 £150,000 £750,000 £750,000 £750,000 £750,000 £750,000 £4,500,000 Professional Fees £100,000 £100,000 £100,000 £100,000 £100,000 £500,000 £500,000 £500,000 £500,000 £500,000 £3,000,000 Total Other Costs:- £2,155,000 £1,955,000 £1,955,000 £1,955,000 £1,955,000 £9,775,000 £9,775,000 £9,775,000 £9,775,000 £9,775,000 £58,850,000 Additional Costs Total £3,486,897 £2,258,585 £2,780,608 £2,059,252 £2,164,694 £11,220,198 £11,707,979 £11,133,696 £11,724,007 £11,271,695 £128,657,611 GRAND TOTAL - All Costs £20,135,610 £6,053,392 £13,100,708 £3,362,405 £4,785,863 £29,285,178 £35,870,221 £28,117,392 £36,086,596 £29,980,384 £206,777,749 Funding:- £8,758,830 £5,768,830 £4,618,830 £4,156,080 £3,900,000 £19,500,000 £19,500,000 £19,500,000 £19,500,000 £19,500,000 £124,702,570 Shortfall (-) / Surplus:- -£11,376,780 -£284,562 -£8,481,878 £793,675 -£885,863 -£9,785,178 -£16,370,221 -£8,617,392 -£16,586,596 -£10,480,384 -£82,075,179 - Page 48 of 82 -
  • 49. Appendix 4 – Decent Homes Failures by Component - Page 49 of 82 -
  • 50. (Last Updated 23/06/2008) WBC Asset Management Strategy Appendix 4 – Decent Homes Failures by Component D.H. COMPONENT BREAKDOWN FAILURES No. % State of Repair Bathroom 1,112 22.5 Brickwork 5 0.1 Central heating - storage heaters 28 0.6 Central heating distribution system 5 0.1 Central heating gas boiler 1,049 21.3 Chimneys 27 0.6 Electrical systems 336 6.8 External doors 427 8.7 Kitchen 861 17.4 Roof covering 139 2.8 Roof structure 3 0.1 Wall finish 79 1.6 Windows 33 0.7 Reasonably Modern Facilities Adequate insulation against external noise 90 1.8 Adequate size and layout of flat common areas 43 0.9 Appropriately located bathroom and WC 179 3.6 Bathroom 30 years old or less 1,981 40.1 Kitchen 20 years old or less 1,991 40.3 Kitchen with adequate space and layout 1,530 31.0 Thermal Comfort Effective insulation 35 0.7 Efficient heating 194 3.9 HHSRS Collision and Entrapment 49 1.0 Damp and Mould Growth 5 0.1 Electrical Hazards 4 0.1 Entry by Intruders 6 0.1 Excess Cold 3 0.1 Falls Between Levels 141 2.9 Falls on Stairs and Steps 290 5.9 Falls on the Level 17 0.4 Structural Collapse and Falling Elements 14 0.3 - Page 50 of 82 -
  • 51. Appendix 5 - Procurement Strategy - Page 51 of 82 -
  • 52. (Last Updated 23/06/2008) WBC Asset Management Strategy Appendix 5 - Procurement Strategy Introduction This strategy document has been developed to provide a framework within which Waverley Borough Council’s (WBC) procurement activities will be undertaken, including major capital works programmes. All procurement strategies carry a level of risk, some greater then others, this strategy document aims to deliver the least risk solutions Before undertaking any procurement project, a feasibility and option appraisal must be undertaken to determine risks attached to each option, mitigation of such risks and the impact on WBC business plan. This may not involve a great deal of work particularly for lower value procurements, but it’s important to take a view of the impact of individual procurements on the over all business plan. All major programmes of work shall be considered and approved by the Asset Management and Investment Group. Procurement strategy objectives The overarching principles of corporate procurement have been set down in Waverley Borough Councils Procurement Strategy, which was prepared and is monitored by the Resources Department, headed by the Director of Resources. The document includes the finance regulations and contract standing orders, which set down the procedures for sending, receiving and evaluating tenders. Within the housing service procurement for maintenance and improvement contracts is the responsibility, of the Strategic Director - Community Services, through the Head of Housing and in association with the Housing Maintenance Manager, who is responsible for the delivery of the work to properties. To achieve its objectives for service delivery over the next five years, a timetable for procurement of contracts has been produced and forms the basis of the strategy. The formulation of the strategy is driven by the following objectives: - 1. WBC will align its procurement functions clearly and closely with its duties under Best Value, and, where appropriate, for modern construction procurement-the principles contained within the Egan agenda 2. To award contracts on the basis of best value for money, not the cheapest bid, and based upon life cycle costings, quality of service and experience wherever possible 3. To establish a forward procurement plan, with guidance and shared access for staff and stakeholders. 4. To establish in house, and in partnerships with others, a core of expertise for procurement and project management 5. To maintain a register of contracts 6. To provide training support and guidance to staff involved in purchasing and procurement - Page 52 of 82 -
  • 53. (Last Updated 23/06/2008) WBC Asset Management Strategy 7. To use best practice procurement, purchasing techniques and processes to maximise the buying power of WBC 8. To work within an ethos of partnership and cooperation to continually improve service and standards. 9. To deliver WBC environmental policy objectives by using sustainable materials and goods, and the increased use of recyclable and recycled materials. 10. WBC supports the use of local labour and will require its contractors to provide proposals regarding the use of local labour and approved training schemes 11. Procurement shall be undertaken in accordance with EU procurement Directives where appropriate and required 12. The Waverley Standard of workmanship and materials provides the technical and aspirational basis for the work programmes to be delivered 13. Relationships with contractors will be developed to enable those providing the works to take a lead in the work operations including the design phase of certain work programmes, and to maintain a positive relationship with residents to deliver continuous improvement in quality of the finished product 14. Wherever possible standard forms of contract will be used unamended 15. KPI’s shall be developed to reflect and monitor the most important aspects of a work programmes to demonstrate value for money and review contractors performance on a regular basis 16. Contracts shall be let on a term commission basis for typically not less than 5 years (or a maximum of 4 years of those that are covered by the EU framework directives) Strategy overview The major works procurement strategy aims to provide WBC Housing with the best combination of value for money, reduced risk and straightforward contractual arrangements. All staff at WBC Housing Maintenance should follow this strategy unless an exception is sought. Any exception required must detail the reasons why it is necessary to operate outside the direction of the strategy and have attached a risk assessment which details he likely risks associated by such divergence and any explanation of how the risks may be managed or mitigated. General Requirements Procurement and purchasing solutions must ensure that best value is achieved by ensuring best fit with appropriately sized contractors and suppliers including those, where appropriate, of small and medium sized enterprises (SME’s), voluntary sector providers and black and ethnic (BME) providers. WBC supports the use of local labour and will require its contractors to provide proposals regarding the use of local labour and approved training schemes. - Page 53 of 82 -
  • 54. (Last Updated 23/06/2008) WBC Asset Management Strategy Major works Programme In the course of the next five years WBC Housing maintenance will undertake a limited programme of works on its housing stock appropriate to the finances at its disposal following a vote by the tenants to remain with the Local Authority as landlord. To achieve this WBC has agreed that Health and Safety works are of the highest priority. The Decent Homes Programme is recognised as a Government target, but with current levels of finance WBC will not be able to achieve full Decency by 2010. Therefore a strategy has been devised to strive towards the government targets. WBC will undertake a series of procurements to enable the works programme to be delivered. The work programme shall be derived from the Asset Management Database, which is informed by the stock condition survey. The following are the grouping of works that will be considered for purchasing and/or coordinating when tendering: - High level • Roof covering • Roof covering structure repair • Flashings • Chimneys • Soffits and fascias • Rainwater goods External Fabric • External cyclical redecorations and associated repairs • Gutter cleaning • Minor repairs (paths, fences, etc) • Render repairs • Repointing Fenestration • Windows • Doors • Soffits and fascias Kitchen and bathroom upgrades • Kitchens • Bathrooms • Associated electrical • Associated supplies/wastes • Hot and cold water supply (excluding boiler) - Page 54 of 82 -
  • 55. (Last Updated 23/06/2008) WBC Asset Management Strategy Heating upgrades • Boilers • Heating distribution • Boiler insulation Electrical • Rewiring (including CCU) • Electrical upgrades • Electrical Heating Insulation • Loft insulation • Cavity wall insulation • External wall insulation Subject to budgetary availability, minor and ad-hoc repairs will be undertaken within the cyclical maintenance contracts, such as prior to painting repairs. The amount of works undertaken when a property is void is limited to the agreed standard. The amount of works undertaken, as a responsive repair is limited to right to repair and essential health and safety repairs only. The testing for asbestos (Type 2), the presence of Legionella, and the requirements of the HHSRS (Housing Health and Safety Rating System) will be undertaken in accordance with EU Procurement Directives (OJEU) where appropriate or required. Procurement will be led by in- house technical resources with support from the external consultants whenever particular expertise is required, extra resources are needed or for the improvement of internal competencies. The Waverley Standard document provides the technical basis for the work programmes to be delivered and specifies the nature of materials and workmanship to be provided by contractors appointed to undertake the work programmes. All future works are to be procured on the basis that they will be compliant with this Standard. Wherever possible standard forms of contract will be used unamended and as appropriate to the procurement in question. To encourage economies of scale typically only one contractor shall be appointed to deliver each elemental specialism, however, where appropriate, to enable flexibility and to reduce the risk of failure, two or more contractors may be appointed to undertake the work required under a framework agreement and dependant upon the performance, measured against mutually agreed key performance indicators (KPI’S). In such circumstances consideration shall be given to reducing the number of contractors to the minimum necessary to deliver the programme of work following performance review over time. An effective method of selecting contractors, monitoring and reporting of performance and customer satisfaction during and after completion of the contract is to be introduced. - Page 55 of 82 -
  • 56. (Last Updated 23/06/2008) WBC Asset Management Strategy KPI’s shall be developed to reflect the most important aspects of a particular work programme for the purpose of demonstrating continuous improvement and value for money and for reviewing contractor’s performance on an annual basis. Satisfactory performance must be demonstrated and recorded and approved by the Asset Management and Investment Group before any action is taken in regard to extending existing contractual arrangements (if allowed for in the original tender documents) or reducing existing contractual arrangements by a reduction of work or terminating the contractors employment. The use of local appropriately sized, contactors to deliver work programmes is encouraged, provided that any procurement is undertaken in full compliance of EU Procurement Directives, UK legislation and Waverley Contract Procedure Rules. The use of locally employed personnel to undertake the work is encouraged and tenderers will be required to provide evidence of their intended strategy to encourage local labour and sub- contractors to be involved in the delivery of work programmes. All future major work programmes (Component renewals) must be let through pre–planned procurements and not undertaken through a responsive repairs contract, in order to achieve best value and the benefits of economies of scale, reduced costings and best supply chain management. Works records detailing the extent and nature of work carried out at each property within a work programme shall be maintained through the Asset Management Database. Direct contracting is preferable to sub contracting or construction management Strategy Compliance WBC requires that, through the Procurement Strategy, its staff ensure that all future procurement and purchasing documentation, arrangements and contracts, recognise, understand and support WBC’s policies with regard to equal opportunities, Health and Safety, sustainability, customer care and local employment. Consultants, contractors and suppliers are required to support WBC in this objective. WBC requires that its entire staff engaged in the procurement or purchasing of goods and services undertake the highest standards of probity in their dealings with contractors and suppliers. WBC requires that its staff engaged in the procurement or purchasing of goods and services undertake appropriate consultation with service users and providers prior to inviting tenders or entering into negotiations with providers. No significant deviation from this strategy is allowed unless a full report detailing the reasons for deviation, the impact and risks associated with the variation to policy and the outcomes expected has been received and approved by the Asset Management and Investment Group. - Page 56 of 82 -
  • 57. Appendix 6 - Risk Assessment - Page 57 of 82 -
  • 58. (Last Updated 23/06/2008) WBC Asset Management Strategy Appendix 6 - Risk Assessment Risk management of the HRA Asset Management Strategy The following are the identified risks: - RISK CATEGORY MITIGATION ACTION 1 Insufficient funding to achieve A2 Continue to identify measures Disposal of redundant the Decent Homes to bridge the funding gap. properties / sites. requirements, as defined from the 30-year Database. 2 Insufficient funding to deliver a A1 Continue to identify measures Disposal of redundant sustainable programme over to bridge the funding gap. properties / sites. the next 30 years. 3 Reducing capital provision to D1 Continue to review the meet the health and safety requirements for H&S work to requirements of the stock. achieve value for money. 4 Continuing loss of stock C2 Try to balance RTB sales by Continue to maintain a through the Right to Buy, hence adjusting ‘promotion’ of ability good RTB service to reducing capital and revenue to RTB. tenants, and the ability to streams. promote RTB where appropriate. 5 Continuing Government A2 Continue to maintain a restrictions on the ability to use good RTB service to the capital receipts from the tenants, and the ability to Right to Buy. promote RTB where appropriate. 6 Continuing pressure on the A1 Raise awareness of the Seek support from other LA revenue holdings of the HRA situation with government. in a similar situation and from negative subsidy reducing lobby government for a the capability for cyclical and review of subsidy system. responsive maintenance. 7 New Government legislation. C2 Be aware and react Attend training / courses / appropriately. conferences and review trade publications 8 Changing expectations of B3 Be aware of the changes in Continue to test market higher standards. expectations / standards opinions. Have in place a resident consultation programme. 9 Changing demographic B3 Be aware of changes Carry out regular tenant impacting on diversity and consultation lifestyle expectations. 10 The ability to attract good C3 Liaise with contractor partners Review labour resources quality labour in the area. to ensure proper training with contractors at progress opportunities either meetings and identify and independently or in partnership implement actions on a with other training bodies. contract by contract basis 11 Catastrophic civil emergency - F2 Have in place a robust civil Corporate Business natural or manmade. emergency plan and Business Continuity Plan in place. Continuity plan - Page 58 of 82 -
  • 59. (Last Updated 23/06/2008) WBC Asset Management Strategy RISK CATEGORY MITIGATION ACTION 12 Key contractor failure. D2 Form partnering relationship Development of partnering with contractor, which provides arrangements. Annual maximum ability to work in review of financial status of partnership and understand as key contractors is near as possible the difficulties, undertaken. which may arise in business. 13 Diminishing ability to maintain B2 Plan for the future downsizing Review all vacancies and staff levels/loss of key staff. to minimise the impact. consider redeployment. 14 Accuracy of stock condition D2 Have in place a process for Keep reminding staff about data. continual updating and need to update changes adjustment of the data informed and HHSRS failures. by internal programmes and inspections. 15 Low staff morale. B2 Raise staff awareness of issues and solutions. 16 Non-achievement of 2 star C4 inspection rating. Matrix for assessment of above risks: - 4 3 2 1 A 1 5 2 6 B 9 8 15 13 C 16 10 4 7 D 12 14 3 E F 11 LIKELIHOOD IMPACT A Very High 1 Catastrophic B High 2 Critical C Significant 3 Marginal D Low 4 Negligible E Very Low F Almost Impossible - Page 59 of 82 -
  • 60. - Page 60 of 82 -
  • 61. Appendix 7 – Sustainability Model Summary Sheet - Page 61 of 82 -
  • 62. (Last Updated 23/06/2008) WBC Asset Management Strategy Appendix 7 – Sustainability Model Summary Sheet RE-INVESTMENT MODEL SUMMARY SHEET Total Cost Cost Per Combined RAG Demand Score Count Count Cost Count Cost Cost Per Unit Years 1 to 5 Unit Status 1 2026 1 1 2 1869 2 3925 £45,835,940 £11,678 2 3765 £44,059,634 £11,702.43 3 877 3 3 4 110 4 1042 £25,844,454 £24,803 4 1095 £25,863,016 £23,619.19 5 107 5 22 £1,028,556 £46,753 5 129 £2,786,301 £21,599.23 Total Count 4989 Totals 4989 £72,708,950 £14,574 Totals 4989 £72,708,950 £14,573.85 Code Green Up to 1 to 3 £20,000 Amber Between 4 £40,000 Red Over 5 The Housing portfolio is divided into one of three categories: 1. Red – Those properties deemed to be of high risk (i.e. requiring higher than average levels of re-investment (or cost) in order to maintain them in a good lettable condition) and/or that are in low demand (i.e. are difficult to let or which have an unjustifiably high void turnover rate). 2. Amber – Those properties that offer peripheral performance and that require further investigation to be reclassified as either red or green. 3. Green – Those properties that are in high demand and that require average or below average levels of re-investment. This category may otherwise be described as ‘core stock’. Re-investment is influenced by the following categories: 1. Red (on hold/under review) – No major expenditure permitted. To be maintained on an ‘essential only’ limited responsive basis, plus essential cyclical (e.g. statutory gas servicing). 2. Amber (under review) – No major expenditure permitted unless an options appraisal has been undertaken to assess the impact of any re-investment on future works requirements and the likely impact on demand. Otherwise to be maintained on a responsive and cyclical regime only. 3. Green (go ahead) – All expenditure permitted, subject to agreement of the Asset Management and Investment Group - Page 62 of 82 -
  • 63. . Appendix 8 – Customer Survey - Page 63 of 82 -
  • 64. - Page 64 of 82 -
  • 65. (Last Updated 23/06/2008) WBC Asset Management Strategy Appendix 8 – Customer Survey Tenant survey carried out in January 2008. Survey sent to all tenants via tenant magazine. Tenants ranked priority from 1 to 10 and these were then scored, so that highest priority was given 10 points to lowest priority given 1 point. Day to Day Repairs Prioritise 6000 5705 5704 5535 5000 4861 4808 4732 4000 3812 3000 2524 2135 2000 1000 0 Making and High standard Getting repairs Contracotrs Polite and Contractors Clean and tidy Saturday Early evening Keeping and for repairs done on time leaving your helpful having photo contractors in morning appointments appointment property clean contractors ID uniform appointments and tidy - Page 65 of 82 -
  • 66. (Last Updated 23/06/2008) WBC Asset Management Strategy Tenants repairs priority survey January 2008 Maintenance Priorities 6000 4905 4897 4897 5000 4749 4502 4240 4000 3735 3468 3442 3245 3091 3000 2000 1000 0 ng ns n s e s g t s t ing en en ow or io ea ad in t io ri at em do em of nc wi ar gr nd ta ul ro Fe Up Re ay ac al ac wi ap ins Re rn pl pl pl Ad ts g te g Re tin Re en g, in ex ed ea in ad em n om rk bl of he H gr pa ac sa ro t Up al tc en th Di pl er Ki g em Re e. Ba nt Ce s ac te pl ta Re es ed ov pr Im NB. - Survey undertaken after the council announced its plans to double glaze 1,100 properties. - Page 66 of 82 -
  • 67. (Last Updated 23/06/2008) WBC Asset Management Strategy Tenants repairs priority survey January 2008 Improving the repairs service 4000 3714 3500 3379 3270 3065 2934 3000 2719 2500 2000 1712 1500 1000 500 0 Making an One phone number Repairs freephone Direct line to Contractor doing An annual property A small appointment when to report repairs and number contractor to report other work identified check improvements you need a repair other housing issues repair when doing initial service where you repair could pay for works e.g plumbing in washing machine - Page 67 of 82 -
  • 68. (Last Updated 23/06/2008) WBC Asset Management Strategy Tenants repairs priority survey January 2008 Do tenants want to pay for small improvements? 60% 50% 50% 50% 40% 30% 20% 10% 0% Yes No - Page 68 of 82 -
  • 69. (Last Updated 23/06/2008) WBC Asset Management Strategy Tenants repairs priority survey January 2008 What type of improvement would tenants pay for? (absolute values) 350 301 300 250 200 146 145 140 150 136 111 100 88 81 76 66 45 50 0 g al t g s g s e tt es r en in he t io tin et in us Bu ov nc nd it t ck m Pa ho ra s m tF wa er ia lce ta so co Re en pl at ds gh ish pa De al Ap re W re ar Li c Re r/D G tri Fi H as / ed ec he or tG El Sh Do as ec tr a W t al nn ec Ex ng rn Er Co te bi In um Pl - Page 69 of 82 -
  • 70. (Last Updated 23/06/2008) WBC Asset Management Strategy Tenants repairs priority survey January 2008 Achieving Decent Homes 56% 54% 54% 52% 50% 48% 46% 46% 44% 42% Concentrate on properties which need little work, so we can make more Concentrating on properties with little work is unfair as properties in poorer homes decent? condition will have no work done? - Page 70 of 82 -
  • 71. (Last Updated 23/06/2008) WBC Asset Management Strategy Tenants repairs priority survey January 2008 Empty Homes Work 80% 70% 67% 60% 50% 40% 30% 24% 20% 9% 10% 0% Only essential work should be carried out to empty Some Decent Homes work should be carried out As much Decent home work should be carried out properties? to empty properties? to empty properties with less being spent on occupied properties? - Page 71 of 82 -
  • 72. (Last Updated 23/06/2008) WBC Asset Management Strategy Tenants repairs priority survey January 2008 Maximising Funding 90% 80% 77% 70% 60% 50% 40% 30% 20% 15% 10% 8% 0% We should keep the standard the same, I am We should increase the standard and accept that We should reduce our standard so that we can do happy with the amount of work done? we cant do as much work? more work - Page 72 of 82 -
  • 73. (Last Updated 23/06/2008) WBC Asset Management Strategy Tenants repairs priority survey January 2008 Grouping Work 90% 82% 80% 70% 60% 50% 40% 30% 20% 18% 10% 0% Grouping work is a good idea as this would save money, although there Not grouping work is a good idea as there would be less delay but more would be a delay? cost? - Page 73 of 82 -
  • 74. (Last Updated 23/06/2008) WBC Asset Management Strategy Tenants repairs priority survey January 2008 Rewiring 50% 46% 45% 40% 35% 30% 29% 25% 25% 20% 15% 10% 5% 0% Carry out rewiring with existing conduit where Carry out rewiring using the exisitng trunking Carry out rewiring using the exisitng conduit where possible with surface mounted trunking where where possible with cables channelled into the possible with cables channelled into walls in some necessary? walls wherever possible? locations (e.g Kitchen, Living Rooms) with the remained in surface mounted trunking? - Page 74 of 82 -
  • 75. Appendix 9 – Repairs Satisfaction - Page 75 of 82 -
  • 76. (Last Updated 23/06/2008) WBC Asset Management Strategy Appendix 9 – Repairs Satisfaction EPS Repairs Satisfaction Survey Results of a tenant survey carried out by our Maintenance contractor EPS (2007) ‘What you thought of your repairs and maintenance service’ HOW SATISFIED, IN RELATION TO YOUR LAST REPAIR, WERE YOU WITH Attitude of workers 90% Very/Fairly good 9% Fairly Poor Overall Quality of repairs work 86% Very/Fairly good 10% Fairly/very poor Speed work completed 83% Very/Fairly good 16% Fairly/very poor Being told when workers would call 82% Very/fairly good 13% Fairly/very poor Time taken before work started 74% Very/Fairly good 18% Fairly/very poor Keeping dirt/mess to a minimum 72% Very/Fairly good 21% Fairly poor Tenants rated the following, in order of importance: 1. Carrying ID cards 2. Getting job right first time 3. Having a flexible appointment system 4. Treating you and your home with courtesy and respect 5. Contractors wearing company clothing 6. Arriving on time Overall satisfaction level with the repairs and maintenance service: Very satisfied 63% Fairly satisfied 25% Neither satisfied nor dissatisfied 3% Fairly dissatisfied 3% Very dissatisfied 6% Tenants were also asked if they would use the EPS website (www.epsresidents.com): Yes 13% No 88% - Page 76 of 82 -
  • 77. Appendix 10 - Energy and Sustainability - Page 77 of 82 -
  • 78. (Last Updated 23/06/2008) WBC Asset Management Strategy Appendix 10 - Energy Sustainability Policy Sustainability Policy Waverley Borough Council recognises the need both nationally and locally to carry out its business with it’s customers, partners and stakeholders in a sustainable way. Sustainability has a number of different meanings according to which context it is applied. The following repairs and maintenance objective has been agreed by officers and Tenant Panel Members. Sustainability The need to procure, deliver, monitor and pay for work to its property portfolio and those who live in a manner which consumes as least amount of energy as possible and provides for goods and services that are fit for purpose for as long as possible, within the financial operating framework. Energy Saving All works to Waverley Borough Council’s properties are carried out by contractors working to specifications agreed and put in place after extensive tendering procedures. Contracts are for different periods of time and will have different start dates. Their specification are intended to reflect best practise known and understood at the time of their agreement. Therefore different standards may apply within the portfolio of contracts being administered. Waverley Borough Council will, when detailing work to be carried out to its properties, ensure that examination will be made to determine the material options which use less embedded energy in their manufacture and where it is known that there are regulatory frameworks recommending a particular category of product, this it will be the first choice of specification. Selection of improved energy saving fittings and services It will ensure that when specifying the installation of products and fittings the most recent established technological standards for the efficient and cleanest use of energy are used. Regulatory Framework The repairs and maintenance section on behalf of the Housing Department will keep abreast on a regular basis of the various regulation and legislative changes on the issues of sustainability and energy saving, and update these policies accordingly. Embedded Energy Where there is readily available information on the embedded energy ratings within products and materials that will be used for repairs and maintenance then procurement choices will take those into account when specifying work. - Page 78 of 82 -
  • 79. (Last Updated 23/06/2008) WBC Asset Management Strategy Renewables A series of feasibility studies will be carried out on the most readily understood methods of producing renewable energy within domestic buildings. The results of these studies will inform the planned maintenance programme into the foreseeable future. Waste When specifying work to the Councils housing stock, the procurement process will include the provision of sustainability policies and procedural statements for the effective recycling and disposal of waste from the construction process. For each type of activity the contractor will also provide a detailed analysis of the waste disposal chain, naming and detailing the disposal sites with an explanation of their credibility. Procurement The repair and maintenance procurement process to include a review of all specifications for work activities and include recommended energy saving practices that can be achieved with existing technologies and materials. (Report received from the Energy Savings Trust with recommendations) Recording and Monitoring The administration of maintenance contracts to include formal discussion pre contract and during progress meetings on the targets set for the minimisation and disposal of waste and performance indicators to be agreed to monitor the work in line with the targets agreed. Monitoring of the contract will also include close scrutiny and evidence of the pre agreed standards and sources of materials goods and services. Labelling To enable informed choices to be made in future investment in its properties the repairs and maintenance service to investigate and strive to implement a clear and understandable system of labelling and indexing the extent of energy saving or sustainability in its planned programmes of work. - Page 79 of 82 -
  • 80. - Page 80 of 82 -
  • 81. Appendix 11 - Action Plan - Page 81 of 82 -
  • 82. HRA Asset Management Policy - Action Plan Action Lead Officer Progress/Timescale Update the stock condition survey on a five-year rolling Asset Manager In progress programme basis – 20% each year. Improve accuracy of the Asset Management data by utilising Asset Manager In progress existing data in other systems. Raise awareness of the HRA Asset Management Strategy Head of Housing As part of the approval with staff. process. Carry out a monthly review to identify obsolete property with Asset Manager In progress - meetings a high maintenance cost and low demand utilising the to be scheduled sustainability model and decide on a disposal strategy. Review all high repair cost properties, greater than £30,000 Asset Manager On going including voids and consider options for repair / disposal. Develop programmes focussing on maximising the number of Asset Manager In progress homes to be made Decent and ensuring Health and Safety work is carried out. Carry out quarterly reviews of demand and repairs to our Maintenance Manager Reviews Scheduled sheltered accommodation and implement actions. Regularly review the tenant’s priorities for the service and Maintenance Manager On going develop programmes based on these priorities. Monitor expenditure to make best use of funding. Maintenance Manager Regular expenditure monitoring organised. Promote and develop schemes that encourage and assist Head of Housing Incentive scheme in tenants to undertake work to improve their properties. progress. Validate our stock condition Database on an annual basis. Asset Manager On going Produce priority programmes of work to address HHSRS Asset Manager & In progress Category 1 failures Maintenance Manager Carry out low cost work including single failures where this Maintenance Manager On going will make the property Decent. Assess voids and carry out minimum works to achieve the Void Team Manager In progress void standard Regularly review the Waverley Standard to maximise value Asset Manager On going for money. Garage Strategy group to review garage sites and formulate Maintenance Manager Meetings scheduled proposals for disposal / demolition / repair. Improve the performance of the Responsive, void and Maintenance Manager In progress external envelope contractor by developing the partnering relationship and reducing duplication. Investigate and pilot co location and alternative payment Maintenance Manager In progress methods with the responsive and void repair contractor. Review and publish re-let Standard. Review complete Group / plan responsive type repairs where appropriate. Building Works In progress Manager Review potential value for money savings on all planned Maintenance Manager In progress maintenance works with the contractor. Investigate and pilot property Health checks Maintenance Manager To be carried out late summer 2008 Review, update and obtain approval for the Asbestos Policy Maintenance Manager Approval to be obtained. Prepare and obtain approval for a Legionella Prevention Maintenance Manager In progress Policy Complete the Fire Risk Assessments and improvement works Maintenance Manager In progress of shared internal common parts. Produce an E.P.C. for each property, at change of tenancy Asset Manager As from 1st October 2008 Consult Ockford Ridge residents on regeneration options. Head of Housing To be started late 2008 Review HRA Asset Management Strategy annually Asset Manager - Page 82 of 82 -

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