Wolverhampton Homes Board 10 February 2017

Transcription

1 Wolverhampton Homes Board 10 February 2017 Time 9.00 am Public Meeting? YES Type of meeting Wolverhampton Homes Venue Board Room, Hickman Avenue, Wolverhampton, WV1 2BY Membership Ann Bennett Angela Davies Kevin Fearon Mary Griffiths Peter Knight Joy McLaren Linda Middleton Councillor Anwen Muston Councillor Rita Potter Lesley Roberts Councillor Paul Singh Councillor Tersaim Singh Bob Smith Sue Roberts Mark Ward Councillor Daniel Richard Warren Strategic Director - Housing Information If you have any queries about this meeting, please contact Ruth Fletcher: Contact Tel/ Address Ruth Fletcher ruth.fletcher@wolverhamptonhomes.org.uk Wolverhampton Homes, Hickman Avenue, Wolverhampton WV1 2BY Copies of other agendas and reports are available from: Website ruth.fletcher@wolverhamptonhomes.org.uk Tel Agenda Page 1 of 2

2 Agenda Item No. Title 1 Apologies 2 Declarations of interest 3 Minutes of previous meeting - 9 December 2016 (Pages 1-4) 4 Matters arising 5 Outstanding recommendations tracking report (Pages 5-6) 5a Procurement service update and medium term plan (Pages 7-14) 5b Capital Programme (Pages 15-18) 6a Revenue Budget 2017/18 (Pages 19-32) 6b Wolverhampton Homes' new brand (Pages 33-40) 7a Performance of citywide gas servicing programme for 2016 (Pages 41-50) 7b Performance of electrical testing and inspection programme (Pages 51-56) 7c End of year update from board champions Agenda Page 2 of 2

3 Agenda Item 3 MINUTES Meeting: WOLVERHAMPTON HOMES BOARD MEETING Date: FRIDAY 9 DECEMBER 2016 BOARD MEMBERS PRESENT:- Sue Roberts MBE Ann Bennett Angela Davies Kevin Fearon Joy McLaren Linda Middleton Anwen Muston Bob Smith Mark Ward Daniel Warren STAFF IN ATTENDANCE:- Lesley Roberts Philip Toni Shaun Aldis Sue Kunynec Darren Baggs Kevin Manning Ruth Fletcher Christine Howles Mark Darmody Julie Piper - Chief Executive - Director of Commercial - Director of Operations - Director of People - Assistant Director of Housing - Assistant Director of Property - Governance Manager - Head of Communications - Health and Safety Lead (CoWC) (Part) - Principal Customer Feedback Officer (Part) 1531 Apologies Action Mary Griffiths, Peter Knight, Rita Potter, Paul Singh, Tersaim Singh Declaration of interest Any tenant related issues Angela Davies, Joy McLaren, Linda Middleton, Sue Roberts, and Mark Ward. Page 1

4 Noted with interest, allowed to remain and join in the debate Minutes of the previous meeting 16 September 2016 Agreed as a true record Matters Arising There were no matters arising. Outstanding Recommendations Tracking Report Ruth Fletcher presented this item Resolved: Board members noted the information within the outstanding recommendations tracking report Annual Health and Safety Training Mark Darmody, Head of Health and Safety at the City of Wolverhampton Council carried out the annual health and safety training for board members. Health and Safety Welfare report Mark Darmody presented this item. He advised that the report provided a summary of performance for health and safety between June 2016 and November Board members noted: (i) Landlord incidents summary. There had been a further 17 incidents resulting in a total of 34 for The number of incidents reported for the same period last year was 41. (ii) Accident summary. There had been a total of 24 accidents, compared to 27 last year. (iii) To date 54 days had been lost, compared to 80 days for the same period last year. (iv) All fire risk assessments were up to date for high, medium and low rise flatted accommodation; (v) The health and safety performance indicators; (vi) Recent initiatives included a management of asbestos review, fire safety interventions for vulnerable tenants, business continuity planning, work with the strategic construction partnership, a prohibition notice had been served following a Page 2

5 breach of the Working at Height Regulations (vii) With regards to the shared services arrangement between the CoWC and WH, performance was monitored at a monthly meetings and to date the arrangement was working well Resolved: Board members: (i) noted the contents of the report; (ii) appointed Joy McLaren as the Health and Safety Champion. Draft 2017/18 Delivery Plan Philip Toni presented this item. He advised that the purpose of the report was to get input from board members on the delivery plan proposals. Board members noted the proposed initiatives in paragraph of the report. Board members referred to the Asset Management Strategy and how this would be implemented in line with the delivery plan. They also referred to next year s Capital Programme, and queried the number of performance review meetings, as the organisation was now more mature. Lesley advised that Senior Management Team now met with the council s Strategic Executive Board (SEB) on a six monthly basis, where there was now more a qualitative input. SEB believed that WH s should be more adventurous in what it did, for example other ALMOs were emptying bins, carrying out street cleaning and social care. It was suggested that a small working group looked at options available for WHs Resolved: Board members approved the draft Delivery Plan. Customer First Strategy Julie Piper presented this item. She advised that the purpose of the report was to ask board members to approve a new approach to gathering customer feedback and improving services. The proposed new approach set out a number of aims: to have a framework in place that captured at a single point customer feedback from a range of sources; to focus on areas that customers and WHs considered as high volume/risk; Page 3

6 to give all customers receiving services an opportunity to give their views in a way that was easy and influenced service provision; to have formal management structures in place to act upon feedback and facilitate change Resolved: Board members approved the Customer First Strategy and action plan. Risk Register Philip Toni presented this item. The report provided board members with an update on the risk register which took account of developments over the last six months. A key area was the renewal of Market Street lease where discussions were ongoing with the landlord, and it was noted that it was being considered whether it was the right place and building for the city centre one-stop-shop Resolved: Board members agreed the changes to the risk register. Page 4

7 Agenda Item 5 Outstanding Recommendations February 2017 Date Agenda Title of Report Recommendations Actions No Wolverhampton Homes/Citizens Board members requested a report in 12 months time Advice Bureau which provided details of Protocol outcomes provided by the CAB B Procurement Strategy Board members asked that the contract register for the next two years was brought to the December 2016 or February 2017 board meeting. Report to be presented to the April 2017 board. The Contract Register will be brought to the February 2017 board meeting. Page 5

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9 Briefing Note Board Meeting Date: Friday 10 th February 2017 Title: Procurement Service Update and Medium Term Plan Prepared by: Shaun Aldis Director of Operations Contact No: Agenda Item 5a 1.0 Purpose 1.1 The briefing note provides a summary of contracts that have been awarded by Wolverhampton City Council (CWC) over the last 12-month period (January 2016 and December 2016.) These are either contracts for the joint or sole use of Wolverhampton Homes (WH). It also lists the contracts that are planned to be procured before the end of the financial year (March 2017). 1.2 In addition, the paper provides a forecast of potential procurement requirements for the medium term, the next 2-year period (2017/18 and 2018/19.) 1.3 Members will recall that in April 2016 procurement was established as a shared service since then all procurement related work has been undertaken by colleagues in CWC. This was initially supported with the transfer of 3 members of staff from WH s. Since then these staff have now left CWC. This has required staff changes and at the time of writing this briefing note a recruitment exercise is ongoing. The new interim account manager/lead procurement officer for Wolverhampton Homes is John Thompson. 2.0 Contracts Tendered and Awarded during The table below lists the 10 tenders that have been undertaken during 2016 with their respective reference numbers. Contracts that have a reference prefix of WH/PS are contracts that were tendered solely for the purposes of by Wolverhampton Homes. Contracts that have a prefix of PP or PD are contracts that again were tendered by CWC but can be used either by CWC and WH. No. Reference Contract Title Directorate 1 WH/PS157* Valuation Services Commercial 2 WH/PS165* Internal and External Signage Operations 3 WH/PS161* Access Control Door Entry and CCTV: Installation, Repair Operations and Maintenance Services 4 WH/PS170* Annual Gas Servicing Operations 5 WH/PS168* Energy Performance Certificates Operations 6 WH/PS172a Occupational Health Doctor (Primary) People 7 WH/PS172b Occupational Health Doctor (Secondary) People 8 WH/PS172 Occupational Health Nurse People 9 PPX16019 Electricity Plus 100 KWT (Large Sites) Operations 10 WH/PS116 Drainage Works Operations The contracts with the star prefix * are contracts that were awarded prior to April Page 7 1 P age

10 WH/PS157 Valuation Services - Estimated annual spend around 50,000. This service was tendered and awarded by Wolverhampton Homes (WH) with a contract start date of 16 January This is used solely by WH for the valuation of right to buy applications. The contract is for a maximum 3-year period, initially for 2 years with the option to extend for an additional 1-year, subject to the mutual agreement of both parties. The current service provider is Lee Shaw Partnership. WH/PS172a Occupational Health Doctor (Primary) - Estimated annual spend around 5,000 This service runs alongside the above Occupational Health Doctors Service and was again tendered and let by WH for their sole use. In order to ensure that all elements required for this service were met and in the event that one of the doctors were unable to provide the necessary information a second doctors service was also appointed. The current service provider is the Royal Wolverhampton NHS WH/PS172b Occupational Health Doctor (Secondary) - Estimated annual spend around 5,000 This service was tendered and awarded by WH with a start date of 26th March Although this type of service is also used by the City of Wolverhampton Council (CWC) due to the good work that had already been carried out in reducing staff sickness levels within WH it was agreed that following a quotation process the service should be let to the incumbent supplier for a further 3 years. This includes the provision of a 1 year extension period subject to the mutual agreement of both parties. The current service provider is MOHS Workplace Health Limited. WH/PS171 Occupational Health Nurse - Estimated annual spend around 36,000 The Occupational Nurse Service is required for the management of long term sick and to provide advice and guidance to managers on the management of sickness absence and temporary medical issues. This contract was procured by and for the sole use of WH. The current service provider is Telford Occupational Health Services. PPX16019 Electricity Plus 100 KWT (Large Sites) Estimated annual spend around 6,000,000 (Combined expenditure across CWC and WH and across all services) For Wolverhampton Homes this contract is for the electricity that is used through the Landlords Supply for communal areas and offices etc. This Service has traditionally been procured by CWC as the largest consumer. By combining the requirements of both the CWC and WH there is greater economies of scale which allows a better deal to be achieved. This service was procured through a Framework Agreement with Eastern Shires Purchasing Organisation (ESPO). The contract commenced on 1st October 2016 and the Framework Agreement is for 4 years. The current service provider is Total Gas and Power. WH/PS165 Internal and External Signage - Estimated annual spend is around 30,000 The contract for the provision of internal and external signage was tendered and awarded by WH and is used solely for our purposes. The contract commenced on 1st April 2016 and is for a maximum 5- year period, initially for 3 years with the option to extend for an additional 2-years, subject to the mutual agreement of both parties. The current service provider is Signs Now Limited. WH/PS116 Drainage Works - Estimated annual spend is around 160,000 The contract for Drainage Works was tendered by WH and it provides a support service for the inhouse organisation. In addition, there are some services such a CCTV camera surveys of drains that the in-house organisation cannot provide. The contract commenced on 3rd May 2016 and is initially for a 3 year period with the option to extend for an additional 2-years, subject to the mutual agreement of both parties. The current service provider is Metro Rod Limited. WH/PS161 Access Control Door Entry and CCTV: Installation, Repair and Maintenance Services - Estimated annual value is around 800,000 This contract was tendered and let by WH and it provides a full maintenance and break down service, annual servicing and new installation service for the entire Door Access control and CCTV systems that are under the control of WH. The contract commenced on the 4 th January 2016 and is for a Page 8 2 P age

11 maximum 6-year period, initially for 4 years with the option to extend for an additional 2-years, subject to the mutual agreement of both parties. The current service provider is Open View Security Solutions Limited. WH/PS170 Annual Gas Servicing - Estimated annual value is around 1,000,000 The contract for Annual Gas Serving ensures that WH meets its legal requirements as a Registered Landlord. This mandatory service was procured through a Framework Agreement with Solihull; the Framework Agreement is for a maximum of 7 years subject to its renewal periods. The current service provider is Dodd Group (Midlands) Limited. WH/PS168 Energy Performance Certificates - Estimated annual value is around 30,000 To enable WH to carry out and provide Energy Performance Certificates in accordance with the requirements a tender process was carried out resulting in the contract commencing on 13th October It is for a maximum 4-year period, initially for 3 years with the option to extend for an additional 1-year, subject to the mutual agreement of both parties. The current service provider is ECT Limited (Compliance 365) Tenders that are in the process of being procured for 2016/17 at the time of writing this report are for Window Cleaning, Non- Traditional Housing Surveys, Franking Machines and Interpreting Services. 3.0 Procurement Decisions and Requirements for 2017/ The table below lists 14 contracts that are proposed to be procured during 2017/18. However, most contracts do have the option to extend with this decision being taken on the cost, performance and quality of the existing service. No. Reference Contract Title Directorate 1 WH/PS115 Replacement of Meter Box Doors Operations 2 WH/PS87 Maintenance of Passenger Lifts Operations 3 WH/PS100 Void Property Security, Estate Operations Management and Associated Services 4 WH/PS71 Fire Safety (Sprinkler Systems, Fire Operations Extinguishers etc) 5 WH/PS122 Painting & Decorating Services Operations 6 WH/PS147 Physiotherapy People 7 WH/PS148 Counselling Services People 8 WH/PS142/S2 Repair & Maintenance of Lightning Operations Protection Systems and Testing of Safety Anchor Eyebolts 9 Waste Management Operations 10 ICT Mobile Telephones Commercial 11 ICT Options to support Universal Credit* Commercial 12 ICT Tenant Broadband* Commercial 13 ICT Dynamic Repairs Scheduler* Commercial 14 Underground Burst Pipework (water) Operations The ICT contracts 9,10 and 11 will be procured subject to the approval of necessary business cases. WH/PS115 Replacement of Meter Box Doors Estimated annual value is around 12,000 The replacement of meter box doors has been difficult in the past as there has been little or no interest shown when it has been tendered. Due to the lack of interest shown and the low value WH offered a contract of 2 years with an option to extend a further 1 year to JML Hardware Limited. The service currently being provided is considered to provide value for money as an exercise was undertaken and it was established that the cost of the supply and replacement and of the doors was cheaper than WH can purchase the doors alone. Page It is intended 9 to offer a further 12 months contract to 3 P age

12 the incumbent provider when the current contract expires. The current service provider is JML Hardware Limited. WH/PS87 Maintenance of Passenger Lifts - Estimated annual value is around 600,000 Following a Tender process through Open Procedure of the Official Journal of the European Union (OJEU) the maintenance of Passenger Lifts contract was awarded in April The contract term was for 3 years with an option to extend a further 2 years. Feedback received from the main contract users is that the service being provided by the Supplier is good and in accordance with their requirements as laid down in the contract. They have indicated that they intend to take up the option to extend taking the final expiry date to 31 March The current service provider is Lift and Engineering Services Limited. WH/PS100 Void Property Security, Estate Management and Associated Services Estimated annual value is around 100,000 Void property Security was engaged through a Framework Agreement with the LHC. WH joined the Framework Agreement in June 2013 and the agreement will expire on 30 June The Framework Agreement is for a straight 4 years with no options to extend. As this service, will still be required after that date a new tender process will be required. It is unclear at this stage if it is intended to renew this contract through the same route or to tender on the open market. A formal decision on the preferred route will be made early in the 2017 to ensure that there is no break in the service provision. The current service provider is Sitex Orbis. WH/PS71 Fire Safety - Estimated annual value is around 100,000 The contract for Fire Safety was awarded following tender process under the Restricted Procedure of OJEU in July The contract was for an initial period of 4 years with an option to extend a further 2 years. This initial period expires on 30th June 2017 and early indications are that the main service user has some concerns regarding the existing service provider s administration of paperwork. Therefore, it is likely that the contract will not be extended and a new tender process will be required. The current service provider is Interserve Fire Services (UK Limited). WH/PS122 Painting & Decorating Services - Estimated annual value is around 400,000 The contract or Painting and Decorating Service commenced on 1st October 2014 with an initial period of 3 years with an option to extend a further 1 year. The contract was tendered through the Open Procedure below the OJEU threshold. Information received from the main service user is that the level of service being provided by the supplier is good and it is highly likely that the option of extending a further 1 year will be taken up. Providing that the extension period is taken up the new end date for this contract will be 30th September The current service provider is Tony Davies and Partners LLP. WH/PS147 Physiotherapy - Estimated annual value is around 5,000 The contract for the provision of Physiotherapy commenced on 1st October 2014 with an initial period of 3 years with an option to extend a further 1 year. The contract was tender through the Open Procedure below the OJEU threshold. The main service user has indicated that they have no issues with the current service and are therefore extremely likely to take up the option of the 1 year extension. Providing that the extension period is taken up the new end date for this contract will be 30th September The current service provider is NJB Clinic. WH/PS148 Counselling Services- Estimated annual value is around 5,000 The contract for the provision of Counselling Services commenced on 1 st January 2015 with an initial period of 1 year with an option to extend for a further 2 periods of 1 year each depending upon performance. The contract has been extended to the 31 st December 2017.The contract was tendered through invitation to quote. The current service provider is The Listening Centre Page 10 4 P age

13 New Requirements for 2017/18 In addition to the extension and or renewal of the above contracts we have received notification that it is highly likely that the following new service will be required during 2017: Underground Burst of Water Supply Contract. 4.0 Procurement Decisions and Requirements for 2018/ The table below lists the 19 contracts that are due to expire during 2018/19 and will either need to be extended if permitted or renewed. No. Reference Contract Title Directorate 1 WH/PS84 Maintenance of Domestic Stairlifts Operations 2 WH/PS160 External Debt Collections Commercial 3 WH/PS128 Grounds Maintenance Service Operations 4 WH/PS145/S2 Internal Audit Services Commercial 5 WH/PS110 Digital TV Maintenance Operations 6 WH/PS113/b Asbestos Removals Operations 7 WH/PS113a Asbestos Surveys Operations 8 WH/PS78/S4 Print - LOT 1 Office Stationery (3 x Suppliers) Commercial 9 WH/PS78/S4 Print LOT 2 Print Services (3 x Suppliers) Commercial 10 WH/PS78 Print LOT 3 Promotional Items (1 x Commercial Supplier) 11 WH/PS157 Valuation Services Commercial 12 WH/PS172b Occupational Health Doctor People 13 WH/PS151 Hardstandings and Associated Works Operations 14 WH/PS65 Glazing Operations 15 WH/PS149 Legal Services Anti-Social Behaviour Operations 16 WH/PS172 Doctor Service People 17 WH/PS171 Occupation Health Nurse People 18 WH/PS131 Floor Finishing Service Operations WH/PS84 - Maintenance of Domestic Stairlifts Estimated annual spend around 115,000 The contract for the Maintenance of Domestic Lifts commenced on 1st February 2014 and was for an initial term of 4 years with an option to extend a further 2 years. Providing that the extension period is taken up the new end date for this contract would be 31st January The current service provider is Lift and Engineering Services Limited. WH/PS160 External Debt Collections Estimated annual spend below 5,000 Due to the extremely low value of this contract it was issued as a direct award. The contract commenced on 2nd February 2015 for an initial period of 3 years with an option to extend a further 1 year. Providing that the extension period is taken up the new end date for this contract will be 1st February The current service provider is Dukes Bailiffs Limited. WH/PS128 Grounds Maintenance Service The contract for Grounds Maintenance was renewed under Part B Services of the Procurement Regulation prior to the update in Part B services were removed under the 2015 revision but as the contract was already in place prior to the changes it is permissible to continue. The contract commenced 1st April 2014 for a 4-year period with no option to extend. The contract will naturally come to an end on 31st March The current service provider is Continental Landscapes. Page 11 5 P age

14 WH/PS145/S2 Internal Audit Services Estimated annual spend around 10,000 The contract for Internal Audit Services commenced 1st April 2015 and the service was tendered as an Invitation to Quote (ITQ) and was awarded for 3 years with an option to extend a further 1 year. Subject to the extension period being taken up the new end date for this contract will be 31st March The current service provider is Wolverhampton City Council. WH/PS110 Digital TV Maintenance Estimated annual spend around 10,000 The contract for the Digital TV Maintenance was tendered through OJEU under the Restricted Procedure as the original value was estimated above the threshold for services. The contract commenced on 1st May 2014 for an initial period of 4 years with an option to extend a further 2 years. Providing that the extension period is taken up the new end date for this contract would be 30th April The current service provider is SCS Technologies Limited. WH/PS113/b - Asbestos Removals & WH/PS113a Asbestos Surveys Estimated annual spend around 280,000 for both contracts. The contract for Asbestos Removals & Asbestos Surveys was tendered through OJEU using the Open Procedure. It was tendered as a single contract for 4 years, but the two functions were divided into 2 separate Lots with a combined estimated contract value. Asbestos Removal - commenced 3rd October 2014 and expires 2nd October 2018 Asbestos Surveys commenced 1st November 2014 and expires 31st October 2018 The main service user has indicated that they have no issued with the service and it is intended for the contract to run its full term. The current service provider for Removals is Axion Building Solutions Limited and for the Surveys Riverside Environmental Services Limited. WH/PS78/S4 Print LOT 1 Office Stationery (3 x Suppliers) WH/PS78/S4 Print LOT 2 Print Services (3 x Suppliers) WH/PS78/S4 Print LOT 3 Promotional Items (1 x Supplier) Estimated annual spend around 250,000 (combined for all 3 Lots) The three services are closely related and therefore it was decided that the best strategic approach for the tendering of the services was as one contract but divided into lots. It was also decided that in order to ensure that Value for Money was achieved more than one supplier would be appointed to each lot and then a mini competition could be run between them for each requirement. You will notice that there is only one supply for Lot 3 Promotional Items, this is because only one company submitted a compliant bid for that Lot. However, service users can ask any of the suppliers on the other 2 Lots to price on an individual basis to test the price being submitted. The contract commenced on 2nd November 2015 for an initial period of 3 years with an option to extend a further 1 year. The service user has indicated that this has worked well and there are no concerns with the service being provided. It is currently intended that the 1 year extension period will be taken up and therefore the contract will end 1st November The current service providers are Lion FPG Limited, AGNE Limited and BCQ Group Limited for lot 1 office stationary. Lion FPG Limited, Hickling and Squires and Resource Print Solutions for lot 2 print services. Beeling Promotional Products for lot3 promotional items. WH/PS157 Valuation Services Estimated annual spend around 50,000 The contract for Valuation Services was tendered as below OJEU threshold using the Open Procedure. The contract commenced on 16th January 2016 for an initial period of 2 years with an option to extend a further 1 year. At present, the service user has indicated that there are no concerns with the service being provided. It is currently intended that the 1 year extension period will be taken up and therefore the contract will end 15th January The current service provider is Lee Shaw Partnership. Page 12 6 P age

15 WH/PS172b Occupational Health Doctor Estimated annual spend around 5,000 Due to the extremely low value and high level of service being provided for Occupational Health Doctor Service it was decided to offer the incumbent service provider a further contract. The contract commenced 26th March 2016 for an initial 2 years with an option to extend a further 1 year. It is generally felt that this contract will run the full 3 years and will therefore end on 25th March The current service provider is MOHS Workplace health Limited. WH/PS151 Hardstandings and Associated Works Estimated annual spend around 120,000 The contract for the Provision of Hard Standings and Associated Works commenced on 15th April It was procured using the Open Procedure below the OJEU threshold. The contract was for an initial period of 3 years with an option to extend a further 1 year. The service user has indicated that the contract is running well and there are no current issues. It is likely that the 1 year extension option will be taken up and the contract will therefore end 25th March The current service provider is Hilton Main Construction. WH/PS65 Glazing Estimated annual spend around 50,000 The Glazing contract was procured under the Open procedure below the OJEU threshold for this service. The contract commenced on 1st May 2015 with an initial period of 3 years and an option to extend a further 1 year. The service user has indicated that the contract is running well and there are no current issues. It is likely that the 1 year extension option will be taken up and the contract will therefore end 30th April The current service provider is Harris Glass Limited. WH/PS149 Legal Services Anti-Social Behaviour Estimated annual spend around 50,000 The contract for Legal Services Anti-Social Behaviour was renewed under Part B Services of the Procurement Regulation prior to the update in Part B services were removed under the 2015 revision but as the contract was already in place prior to the changes it is permissible to continue. The contract commenced 1st July 2015 for an initial 4 years with option to extend 1 year. The main service user has indicated that they have no issued with the service and it is currently felt that the extension period will be taken up. Therefore, the contract will end on 30th June The current service provider is Berrymans Lace Mawer LLP. WH/PS172 - Doctor Service Estimated annual spend around 5,000 The Doctors Service sits alongside WH/PS172b Occupational Health Doctor and are low value services. This contract was put in place to reduce the risk that if the doctor could not provide the service at time required there was an option to engage a backup provider. The contract was awarded on the quotation basis and was for an initial period of 2 years with an option to extend 1 year. The contract commenced on 16th July 2016 and no issues regarding the level of service have been reported. The main service user has indicated that they will take up the option to extend the contract and therefore the contract will end on 15th September The current service provider is Royal Wolverhampton NHS Trust. WH/PS171 Occupational Health Nurse Estimated annual spend around 36,000 With the consent of the incumbent service provider this contract was tendered prior to the end of the original term. This was to allow it to be bought in-line with the Doctors Service as they are closely linked. By utilising this early procurement option we have been able to bring closer the end date of the three medical services. The contract was procured using the Open procedure below OJEU thresholds for the service. The contract is for an initial term of 2 years with an option to extend 1 year. Providing that the extension period is taken up, and at this stage we believe that it will, the contract will end on 31st August The current service provider is Telford Occupational Health Service. Page 13 7 P age

16 WH/PS131 Floor Finishing Service Estimated annual spend around 100,000 The contract for Floor Finishing Service was procured under the Open procedure below OJEU threshold for this service. The contract was for an initial period of 3 years with an option to extend 2 year. The contract commenced on 4th October 2015 and providing that the extension period is taken up the contract will then end on 4th October The current service provider is Multi floor (Walsall Limited) Governance and Award of Contracts With the procurement service now being a shared service with CWC the governance and award procedure has changed. For contracts that are jointly procured for the use of both CWC and WH then the approval to tender and subsequent award procedure follows the policy and procedures of CWC. In summary approval of forthcoming tenders goes to Cabinet Resources Panel with delegated authority for award given through an individual executive decision notice. In the event that the contract is for the sole purposes of WH then approval to tender/ award will be made at either Committee or Board. Page 14 8 P age

17 Briefing Note Board Meeting Date: Friday 10th February 2017 Agenda Item 5b Title: Capital Programme Prepared by: Shaun Aldis Director of Operations Contact No: Purpose 1.1 To outline the proposed capital programme for the next financial year ( ). 2.0 Background and context 2.1 The proposed Capital Programme has been prepared following consultation with a range of stakeholders including Tenant Get Togethers, City of Wolverhampton Council s Housing Services, the Federation of Tenants Associations, the Leasehold Forum and the Repairs Teams etc. 2.2 The Capital Programme details the schemes of work to be carried out to the social housing stock, identified through interrogation of the stock condition information. It balances the investment needed to maintain / improve the housing stock against affordability, sustainability objectives and tenants aspirations, in order to determine the most appropriate investment programme. 2.3 The proposed Capital Programme for reflects this approach and comprises of the following schemes and projects of work: Ref Scheme Value m 1 Internal improvements; a programme to deliver elements of Decent Homes work that wasn t previously done to properties across the City, including work to void properties 2 Ad-hoc boiler replacement to properties across the City Structural repair work to various properties across the City Re-roofing; priority pitched roofing and flat roofing to various properties in East Park, Oxley, Bilston North, Fallings Park, Tettenhall Regis, Springvale, Ettingshall, Bilston East, Tettenhall Wightwick & Parkfields 5 External Improvement Programme to properties in East Park, Bilston North, Springvale & Bilston East 6 The citywide pathway improvement and safety programme The start of major refurbishment work at Heath Town to complement the Council s regeneration plans ( 10.02m) as well as the finalisation of shower installations ( 0.32m) Ref Scheme Value m Page 15

18 8 The start of the refurbishment of the maisonette blocks in 2,.220 Ellerton Walk, New Park Village ( 2.22m) 9 The completion of the refurbishment of Merridale Court maisonette blocks ( 2.03m) 10 Sustainable estates; improvements to the communal areas of some flatted estates in Wednesfield South, Penn, Springvale & Merry Hill ( 0.84m) 11 The renewal of the infrastructure (landlord supplies including electrics, soil & vent pipes, fire safety work etc. plus flooring and decoration) within the high-rise blocks of flats in Chetton Green, Bushbury North ( 2.94m) 12 Lift replacement programme to blocks in Heath Town The programme to install / replace door entry & CCTV systems in blocks of flats in Ettingshall, Fallings Park, Bilston East, Penn, Bilston North & Tettenhall Wightwick 14 Surveys of non-traditional housing including the high-rise estate TOTAL In addition, we shall also be delivering the following schemes on behalf of the City of Wolverhampton Council: Disabled adaptations to various properties across the City ( 1.00m) Enabling work for the Heath Town Estate Regeneration; the diversion of district heating pipework in and around Chervil Rise & Long Ley ( 1.05m) The construction of new build properties across several infill schemes ( 1.72m) The conversion of the former Local Repairs Team office in Chetton Green to form four 2- bedroom maisonettes, plus the conversion of the former shop at 29 Vicarage Road, Ettingshall to form a flat ( 0.41m). N. B. The conversion of other former offices, laundries and storage spaces to form new flats is also being developed; each proposal will be looked at on its merits and funds provided if it is approved. 3.0 Financial and value for money implications 3.1 The capital programme as outlined in section 2 of this briefing note has been approved by CWC and is financially contained within the 5-year Asset Management Plan and 30-year HRA Business Plan. Ensuring that the capital programme remains affordable, whilst addressing the investment priorities will remain an on-going challenge for the company. There are robust processes in place to ensure that the work delivered provides excellent value for money. 4.0 Legal 4.1 Any proposed scheme will be developed in conjunction with the local residents including all leaseholders. This will then be subject to the legal (Section 20) consultation requirements, which places a duty upon us to demonstrate the reasonableness of our proposals. 5.0 Equalities Page 16

19 5.1 The Capital Programme details the schemes of work to be carried out to the social housing stock in the coming financial year. As it is a high-level document, it doesn t take account of the various demographics and the extent that they will be affected by each scheme. It simply focuses on what work is needed to improve / maintain the social housing portfolio. 5.2 The design & planning-phase of these individual schemes of work is when any required Equalities Impact Assessments (EIA) are carried out, as the exact details of the properties that will be within the schemes and the relevant tenancies will be known at that stage. Page 17

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21 Agenda Item 6a Wolverhampton Homes Board 10 th February 2017 Report title: Revenue Budget 2017/18 Open Report Status: For Approval Author: Jo McCoy Contact No: (01902) Recommendations: Key risks and contentious issues: The Board approve the revenue budget for the financial year 2017/18 The company is required to budget for an additional 1m per year in employer pension contributions. The budget assumes that 500,000 of in year savings forecast from repairs and maintenance budgets is achievable going forward and will help to offset this additional cost. As these services are to some extent demand led there is always a risk of unexpected fluctuations in demand. Also, referenced in the medium term financial strategy report is the need to identify a further 200,000 in savings for 2017/18 in order to balance the budget and reduce the burden of making savings in future years to address the pension cost issue. (Appendix 2) In addition, to the factors highlighted above external influences such as Brexit may increase costs to suppliers that they may not be able to absorb. These costs could be passed onto WH to produce further pressures. To balance the budget requires a contribution of 747,000 from reserves Management Summary 1.0 Purpose 1.1 An annual budget is presented for approval by the Board before the 31 st March each year in accordance with financial regulations. The budget is prepared in the context of the business plan and the medium term financial strategy, which is reviewed and updated Page 19

22 annually. This strategy reflects the annual Delivery Plan agreed with the City Council and is set in the context of the Council s 30 year Housing Revenue Account (HRA) Business Plan. 2.0 Income Forecast for 2016/ The annual Management fee from the Council provides around 87 percent of Wolverhampton Homes income. This allowance is planned to be frozen up to and including 2019/20 in the line with the 1% rent decrease that the council will implement. This will enable the Council to optimise investment of resources in the housing stock, estate regeneration and new build. 2.2 As well as an allowance for core HRA services the company also receives a fee for the provision of general fund anti-social behaviour services. This year there is a planned reduction in funding from the council of 55,000 (1.6 posts) for this service. 2.3 The company earns income from delivering capital schemes for the council s capital programme and also from third parties for Asbestos removal services and decorating services delivered via Wolverhampton Works. The cost of staff working on capital projects is also recharged to the capital programme and is a source of income. The budgeted income in this report reflects planned work programmes for 2017/18 and estimated demand for services in the next 12 months. Where possible budget reductions are reflected in corresponding reductions in expenditure budgets. 2.4 Additional miscellaneous income streams include fees and charges, grant income and private sector leasing rental income. 2.5 The table below sets out the forecast income for 2017/18 Income Source 2017/18 000s Management Fee from Wolverhampton City Council 37,731 Provision of Anti-Social Behaviour Services 222 Trading Income 5,519 Miscellaneous Income 282 Total income for the year 43, Expenditure Forecast 2017/ Employee costs make up around half of Wolverhampton Homes expenditure. As well as direct pay costs, the budget includes occupational health, recruitment and training expenses. The budget provides for the cost of living pay increase of 1% and the cost of paying contractual increments. Page 20

23 3.2 Additional employers pension contributions will be incurred from 1 st April The three year annual actuarial valuation of the fund took place on 1 st October 2016 and as a result the annual contribution rate the company will need to pay for employees who are members of the pension fund will increase from 13.5% of salary to 19.2% of salary. This results in an increased cost of 890,000. The past service lump sum contribution also increased by 105,000 from 234,000 to 339,100. This does not form part of the contribution rate, the pension fund invoice for this annually as a lump sum. Therefore, in total that is in essence an additional 1m per year that the company will need to fund. 3.3 Provision in the budget has also been made for the introduction of the Apprenticeship levy which applies to all companies over a certain size and is levied at half a percent of the payroll. Some posts have been deleted from the structure during 2016/17. These are mainly trade posts working on capital programmes and have no effect on the budget overall because there will be a corresponding decrease in trading income. 3.4 The table below shows how the 2017/18 budget for employees has been built up; Employee Costs 2017/18 000s 2016/17 base employee costs 22,295 Incremental grade increases 86 1% pay award 212 Increase of 5.7% in pension contributions 889 Increase in Pension fund past service lump sum 105 Minor restructure savings 2016/17 (46) Deleted posts funded from capital programme (205) Grant Funded Click start posts 101 Apprenticeship levy /18 Total pay budgets 23, In relation to non-pay budgets, managers are expected to fund contract uplifts by identifying efficiencies in existing budgets and we have not built a general provision for inflation into the base budget. However, we do need to increase the budgets for the shared services with the council by 106,000. This is because we simply transferred the salary budgets for these staff into SLA budgets and the council, as expected include the costs of overheads in their recharges 3.6 The Board have approved an additional 1m over four years to boost the fencing programme so there is a 250,000 increase to the fencing programme budget. 3.7 During 2016/17 anticipated in year savings from repairs and maintenance budgets of 700,000 were set aside to fund invest to save initiatives. This was based on the 2015/16 outturn figures. It is assumed that current levels of expenditure can be maintained, however we have allowed for some fluctuation in demand and therefore a permanent budget reduction of 500,000 is recommended. In addition, the medium term financial plan Page 21

24 report identifies that significant and increasing year on year savings are required over the next ten years to balance the budget in the medium term. With this in mind it is recommended that management identify a further 200,000 in savings during 2017/18 to reduce pressure on later years. 3.8 No one-off expenditure items for 2017/18 have been identified or are recommended at this stage. 3.9 The table below sets out the current budget position for 2017/18 Budget for 2017/18 000s Expenditure Pay 23,527 Non Pay 20,974 Total expenditure 44,501 Total Income (43,754) Contribution from reserves (747) 4.0 Financial and value for money implications 4.1 The report sets out a budget for 2017/18 that is based on maintaining current levels of service. The expenditure forecast for 2017/18 is 747,000 higher than forecast income which means that a forecast 747,000 from reserves will need to be used to balance the budget. Due to a larger than anticipated increase in pension contributions we will need to find savings both this year and in future years as set out in the Medium Term Financial Strategy Report. (Appenxix2) 5.0 Legal implications 5.1 There are no legal implications of the contents of this report 6.0 Human resources implications 6.1 There are no proposals within this report with Human Resource implications. 7.0 Health and safety implications 7.1 There are no proposals within this report with health and safety implications. 8.0 Equalities implications Page 22

25 8.1 Has an equality impact assessment been carried out. NO 9.0 Impact on the environment and community 9.1 The report does not contain any proposals that affect the environment or the community Long term consequences for the company 10.1 Tight control of budgets and getting the best use of our cash reserves is essential to ensure we have sufficient resources in the long term Impact on business relationships with suppliers, customers and others 11.1 Careful financial planning is required to ensure we can continue to provide the same level of service for customers and support local suppliers Impact on the Wolverhampton Homes Management System 12.1 Will any new policy or policy updates have an impact on the management system. NO 13.0 List of Appendices 13.1 Appendix 1 The revenue budget by directorate and income and expenditure format 13.2 Appendix 2 The Medium Term Financial Strategy Report Page 23

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29 Wolverhampton Homes Board Resources Committee 20 January 2017 Open Report Report title: Medium Term Financial Strategy January 2017 Status: For Information Author: Jo McCoy Contact No: (01902) Recommendations: Key risks and contentious issues: The Committee note the revised medium term financial strategy and increased savings targets The report sets out the need for the MTFS to be revised in the knowledge that the Wolverhampton Homes employers pension contribution will increase by 1M per year from 1 st April This means that in 2017/18 we will reach the point where we need to make savings or use reserves to balance the budget. This is earlier than planned in the version of the medium term financial plan presented to Finance Committee in July Management Summary 1.0 Purpose 1.1 The annual revenue budget is prepared in the context of the medium term financial strategy (MTFS) This strategy reflects the annual Delivery Plan agreed with the City Council and is set in the context of the Council s 30 year Housing Revenue Account (HRA) Business Plan. The strategy was last presented to the Board at the Finance committee of July 2016 and has now been revised. This report presents a revised strategy to the Board 2.0 Context to the Medium Term Financial strategy 2.1 The context to the MTFS is that in January 2016 a management allowance freeze up to and including 2019/20 was approved by the council in response to the four year 1% rent reduction. This followed three previous years of a frozen management fee. The company successfully achieved savings which resulted in its annual income being higher than its Page 27

30 annual expenditure, therefore balancing the budget and at the same time building up reserves. 2.2 Over time inflation, particularly inflation generated from annual pay awards, meant that this situation would become reversed. Based on maintaining the current service offering there would be a shortfall due to annual income becoming less than expenditure. In the short term using reserves to bridge the gap and balance the budget is an option. However without any reduction in expenditure levels these reserves would be used up within a few years. Avoiding any budget reductions to this point would mean drastic cuts then needing to be made. 2.3 This financial challenge is set against a backdrop of service pressures that mean we are likely to need more resources in the future for income collection, such as universal credit, and that the circumstances of our customers may mean that their support needs may often be complex. 3.0 Financial Strategy Update 3.1 The MTFS is set out in Appendix A. The previous version of the financial strategy proposed annual savings of 100,000 per year for five years from 2017/8 and 300,000 per year thereafter. The effect was to taper reductions to the budget whilst maintaining reserves above the minimum level. This policy would result in the net budget shortfall being eliminated by 2027/ In December 2016 the company received the results of the three year actuarial valuation from the West Midlands Pension Fund. As explained in the Revenue Budget report this has increased costs to Wolverhampton Homes by 1M per year. This has had a significant impact on the MTFS. During 2016/17 savings to non pay budgets of 500,000 have already been identified which will help reduce this impact, however this is still short of the level of increased costs we are facing. 3.3 The forecast underspend of 768,000 for 2016/17 will result in reserves of around 10m. The underspends achieved this year mean that Wolverhampton Homes can afford the increased pension costs, at least in the short term. However, at the proposed savings targets in the previous version of the MTFS, these reserves would reduce to the 1m minimum by 31 st March 2023 and the annual budget shortfall by then would be 1.7m. 3.4 Therefore annual savings targets need to be increased, in particular to earlier years. There is some flexibility about timing but the earlier savings come in the greater the total saving they produce over the life of the plan. The modelling in this report is based on finding 200,000 in additional savings in 2017/18, ramping up to 300,000 a year from 2018/19 until 2024/25 and then 350,000 per year to 2028/29. This would eliminate the budget gap and leave reserves at the minimum level. These figures are illustrative and a wide range of different scenarios could achieve the outcome outlined above. 3.5 The savings targets amount to under 1% of the annual budget. The level of reserves the company has enables some flexibility. There would still be funds available for invest to Page 28

31 save initiatives, particularly if these resulted in earlier savings and therefore reduce the future contributions from reserves. However, the impact of substantial investment would need to be carefully considered in the context of long term affordability. 4.0 Financial and value for money implications 4.1 The report sets out the need for the MTFS to be revised in the knowledge that increased pension contribution rates from 1 st April 2017 mean that in 2017/18 we will reach the point where we need to use reserves to balance the budget. This is earlier than planned, but we have identified savings during the year that will help to offset this. However, to ensure that we eliminate future budget deficits before using up all our reserves we need to increase future annual savings targets. 5.0 Legal implications 5.1 There are no legal implications of the contents of this report 6.0 Human resources implications 6.1 There are no proposals within this report with Human Resource implications. 7.0 Health and safety implications 7.1 There are no proposals within this report with health and safety implications. 8.0 Equalities implications 8.1 Has an equality impact assessment been carried out. NO 8.2 Explanation: There are no proposals within this report 9.0 Impact on the environment and community 9.1 The report does not contain any proposals that affect the environment or the community Long term consequences for the company 10.1 By careful planning and balancing achieving savings with the strategic use of reserves the company can ensure it has sufficient resources for operations in future years Impact on business relationships with suppliers, customers and others 11.1 Careful financial planning is required to ensure we can continue to provide the same level of service for customers and support local suppliers. Page 29

32 12.0 Impact on the Wolverhampton Homes Management System 12.1 Will any new policy or policy updates have an impact on the management system. NO 13.0 List of Appendices 13.1 The Medium Term Financial Forecast 2017/18 to 2028/29 Page 30

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35 Agenda Item 6b Wolverhampton Homes Board 10 February 2017 Open report Report title: Status: Wolverhampton Homes new brand For decision Author: Shaun Aldis Contact No: (01902) Recommendations: Board members are asked to: (i) comment on samples 1~11 of the new brand for Wolverhampton Homes; and (ii) select the new brand for Wolverhampton Homes Key risks and contentious issues: Tenants, leaseholders and stakeholders are used to the distinctive brand that has been in use since Wolverhampton Homes went live in October However, it is now timely to change the brand. It will not involve a complete rebranding exercise, merely a modernisation of the existing brand. Management Summary 1.0 Purpose 1.1 Board members are asked to comment on the proposals for a new and more modern brand for Wolverhampton Homes and select the one that they believe is most appropriate, from the 11 samples of the brand available at the board meeting on 10 February. (Please see appendix 1). 2.0 Background 2.1 Our current brand has served us well and been in use since Wolverhampton Homes went live in October Shadow board members were presented with a variety of brands prior to this date and selected the one that is in use today. 2.2 On average, organisations and brands change their corporate identities once every seven to ten years. Over time brands come across as old-fashioned if they have not been updated. Now more than ever in the digital age, it is now timely to look at modernising our Page 33

36 brand in line with the modernisation exercise that is taking place at the City of Wolverhampton Council. However, we do not want to lose our distinct image, and have modernised our existing brand to make it more up to date in line with our digital agenda. 2.3 It is not the intention to relaunch the brand. It will be replaced gradually as stationery runs out and our fleet is upgraded etc. 3.0 Financial and value for money implications 3.1 There are no financial implications, as it is not the intention for a major relaunch. As stated in paragraph 2.3 above, it will be gradually replaced as we replace our fleet or stationery. 4.0 Legal implications 4.1 There are no direct legal implications, as the rebranding exercise does not affect the name or address of the company, merely its brand. 5.0 Human resources implications 5.1 There are no human resources implications. 6.0 Health and safety implications 6.1 There are no health and safety implications. 7.0 Equalities implications 7.1 Has an equality impact assessment been carried out. NO 7.2 Explanation: An equality impact assessment is not required for the change to our brand. 8.0 Impact on the environment and community 8.1 There is no direct impact to the environment or community. 9.0 Long term consequences for the company 9.1 A new modern brand will assist us promote our digital agenda and other services we provide, and will be seen by stakeholders as Wolverhampton Homes modernising its brand Impact on business relationships with suppliers, customers and others 10.1 This will not impact on our relationships with suppliers, customers and others. Page 34

37 11.0 Impact on the Wolverhampton Homes Management System 11.1 Will any new policy or policy updates have an impact on the management system. NO 12.0 List of Appendices 12.1 Appendix 1 11 samples of brand. Page 35

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