delivery plan 2013-14 - wolverhampton homes€¦ · supporting local priorities and priority...

Delivery Plan

2013-14 Version: draftv11 2013-01-09

Appendix A

CONTENTS: Sections: Introduction 1. Wolverhampton Homes’ management responsibilities and performance

framework 2. Supporting local priorities and priority actions for 2013-14 3. Financial plan for 2013-14 4. Human resources plan for 2013-14 Appendices: 1: Summary of Performance Review Arrangements for Wolverhampton City Council to

monitor Wolverhampton Homes 2: Action plan for delivery of 2013-14 priorities 3: Performance targets for 2013-14 4: Five year income and expenditure forecasts

2 of 17

INTRODUCTION Welcome to the Wolverhampton Homes 2013/14 Delivery Plan, developed and agreed with tenant representatives and Wolverhampton City Council. This plan has demonstrates how Wolverhampton Homes will support Wolverhampton City Council priorities in relation to the City Strategy, Housing Strategy and Local Investment Plan The key priority continues to be the delivery of the Decent Homes programme and the Government have confirmed that funding has been made available to complete the remainder of the programme so all council owned properties on the programme within Wolverhampton that require improvement will receive the benefit of Decent Homes works. Wolverhampton Homes seeks to provide and continually improve excellent Housing Services. Even though there is no longer an inspection regime, we will subject ourselves to any external peer review that seems appropriate to maintain these high standards. In addition to this we are well placed for co-regulation with an independently appointed Review Panel of tenants. The Council and Wolverhampton Homes face significant challenges in the coming year with welfare reform changes due to commence in April 2013. Wolverhampton Homes are working closely with the City Council and other bodies to try to ensure that all affected tenants are aware of the implications and putting support in place to help tenants adjust to the consequences of the reforms. The value for money strategy Wolverhampton Homes has had in previous years has paid dividends and can absorb a nil increase in management fee. It can also fulfil the original ambition of saving on back room costs so that more front line services can be funded for tenants. Resources have bee made available to buy back properties sold under the right to buy scheme. Wolverhampton Homes has launched the Learning Employment and Achievement Programme (LEAP) which aims to enhance the employment prospects of tenants; this will continue throughout 2013-14. Working closely with tenants, leaseholders and other key stakeholders, including the Council, Wolverhampton Homes has the potential to make a real difference to the lives, not only of its customers, but also to the wider community. The Review Panel will play a more significant role in ensuring that our service delivery is properly scrutinised and Wolverhampton Homes will continue to support and encourage tenant involvement in the shaping of services. Sue Roberts MBE (Chair) Cllr. Peter Bilson Wolverhampton Homes (Cabinet Member) Wolverhampton City

Council

3 of 17

1 Wolverhampton Homes’ management responsibilities and

performance framework 1.1 Stock managed

The table below shows the number and location of the rental and leasehold housing managed by Wolverhampton Homes at December 2012. It also shows the number of properties managed by Wolverhampton’s four Tenant Management Organisations (TMO’s). Wolverhampton Homes is responsible for the Decent Homes programme of works to all Council owned homes, including those managed by the TMO’s.

Number of rental properties managed (as at 31 December 2012)

TOTAL PROPERTIES 31 Dec 12

Bilston 6003Low Hill 4152

Merry Hill 6368Wednesfield inc Heath Town 4555

Sub total 21078Private sector leasing 39Leasehold Properties 1964

Wolverhampton Homes Total 23081Properties Managed by TMO’s

Bushbury Hill EMB 846Dovecotes TMO 838

New Park Village TMC 301Springfield Horseshoe HMC 277Total Managed by TMO’s 2262

1.2 Overview of governance and operational arrangements 1.2.1 Wolverhampton Homes is an arms length management organisation (ALMO). It is a

company limited by guarantee, wholly owned by Wolverhampton City Council. Launched in October 2005, its main aims are to ensure that the Council’s entire housing stock achieves the government’s Decent Homes Standard, to improve the quality of services relevant to the homes that it manages and to contribute to the achievement of local strategic priorities.

1.2.2 A Board of five Council nominees, five tenants and five independent members is responsible for the strategic direction of Wolverhampton Homes. Operational arrangements are led by the senior management team consisting of a Chief Executive and directors of Property Services, Resources, Housing, and Corporate Services.

1.2.3 The importance of involving tenants and leaseholders in influencing decisions about service planning and delivery is reflected in Wolverhampton Homes’ governance and operational arrangements. In addition to representation at Board level, a comprehensive range of formal and informal involvement mechanisms has evolved. These include: • Review Panel carrying out tenant led scrutiny of our services • Wolverhampton Federation of Tenants Associations • Bi-annual tenants summit introduced in 2011 • Four local “Get Togethers” held quarterly in each of our management areas • Tenants and Residents Associations representing tenants at estate level • Special Interest Groups (SIGs) looking at service delivery arrangements in detail

4 of 17

• All Cultures One Voice • Consultation Register of tenants and leaseholders who have volunteered to be

involved in opinion surveys, focus groups and short-term informal involvement initiatives

• Mystery shopping • Tenant led audits and inspections • Focus groups and satisfaction surveys

1.2.4 The operational areas and coverage of our three housing management areas are shown in the following map.

1.3 Performance framework 1.3.1 Wolverhampton Homes’ Performance Management & Planning Framework, illustrated

by the diagram over page, describes how local strategic priorities set the context for its medium term business plan, annual delivery plan priorities and performance targets. Divisional service plans and action plans supporting key Strategies set out how these will be delivered. Services are reviewed on a regular basis to ensure that any changes in legislation or regulatory requirements are met.

1.3.2 Wolverhampton Homes has implemented a refreshed performance management and

quality framework which moves the focus from a suite of performance indicators that were required by the government and audit commission to a streamlined suite of key performance indicators that reflect business and customer priorities. We have introduced a three year audit plan which identifies all aspects of scrutiny work including: quality and environmental audits, external audit function, review panel reviews, service reviews, risk management and health and safety.

5 of 17

Wolverhampton Homes achieved the highest possible rating, 3 stars with excellent prospects for improvement, following re-inspection by the Audit Commission in November 2010.

1.3.3 Wolverhampton Homes is monitored by Wolverhampton City Council within the terms of the Management Agreement; a new Management Agreement will be developed and implemented during 2013/14. The Performance Review Arrangements document, Appendix 1, which has been agreed by both parties sets out how this monitoring will be undertaken.

CONTINUOUS IMPROVEMENT Tracking actions and requirements against standards set by

HCA, local agreements with tenants & leaseholders, examples of best practice and performance of top quartile ALMO’s

Audit and Scrutiny (Review Panel) Resultant action plans

Divisional and section

service plans

Individual work plans

Priority actions and

improvement targets

MISSION,

VISION AND VALUES.

BUSINESS PLAN DELIVERY PLAN

Developing Plans to turn Priorities … into Actions

City Strategy

Housing Strategy Local Investment Plan

Translating Issues … into Objectives

PERFORMANCE MANAGEMENT & PLANNING DIAGRAM

6 of 17

2 Supporting local priorities and priority actions for 2013/14

2.1 City Strategy and Housing Strategy 2.1.1 The Delivery Plan 2013/14 supports the corporate priorities and demonstrates how

Wolverhampton Homes supports the City Council in achieving these priorities. It also reflects the operational priorities of Wolverhampton Homes which are linked to the corporate priorities and consider the issues that the tenants have told us are important to them. The table below shows the relationship between the City Council priorities and the activities of Wolverhampton Homes.

Wolverhampton City Council

priorities How Wolverhampton Homes will

support City Council priorities 1 City Strategy 1.1 Encouraging enterprise and

business Through our social enterprise initiative and Learning Employment & Achievement Programme (LEAP) we are providing opportunities for local people.

1.2 Empowering people and communities

Through our Financial Inclusion Strategy we are helping some of the most disadvantaged residents in the City to maximise their income and avoid getting into debt.

1.3 Re-invigorating the city The Decent Homes programme has created major employment and training opportunities for local people.

2 Housing Strategy 2.1 Create attractive, safe and

sustainable neighbourhoods Through the tenant involvement review, better use of stock, review of concierge services, sustainable estates and land strategy and implementation of revised anti-social behaviour team Wolverhampton Homes will contribute to ensuring our estates are attractive, safe and sustainable. Wolverhampton Homes will work with the City Council on the improvement plan for Heath Town.

2.2 Bring all social homes up to a decent standard and improve the condition of private homes

The continuation of Decent homes Programme.

2.3 Improve the management standards of private rented homes

Through our Private Sector Leasing scheme privately rent housing is being bought up to a higher standard and providing accommodation for local people in housing need.

2.4 Improve the energy efficiency of Our energy efficiency strategy and

7 of 17

the City’s housing stock implementation of the “Green Deal”. 2.5 Secure high quality new homes –

both private and social Wolverhampton Homes will support key elements of the strategy which include; developing new homes, both private and social, improving standards in housing of all tenures, making homes more energy efficient, supporting local people (especially the vulnerable) and understanding housing need and by managing new homes developed by both the City Council and other partners.

2.6 Understand and respond to the housing needs and preferences of local people

Providing accurate stock condition information and tenant priorities for improvement work which will call for earlier facilitation of discussions about rent and service charges than has been the case in the past. We will continue to provide a range of opportunities for tenants and leaseholders to get engaged in the services that we provide and their wider community.

2.7 Make more efficient use of social homes

We will undertake projects which will include bringing properties formerly used as offices back into use, developing the private sector leasing scheme further and explore ways of making more stock available to applicants and making the best use of housing stock by supporting tenants who face benefit reductions to move through schemes such as supported mutual exchanges.

2.8 Help local people to be more prosperous

The LEAP is providing opportunities for local people to gain training and employment. The development of social enterprise schemes will offer employment and development opportunities to tenants.

2.9 Give vulnerable people a range of options to meet their housing needs

Wolverhampton Homes support vulnerable customers to make sure they continue to get the good quality services they need.

2.10 Provide housing advice and support for vulnerable and homeless households

Wolverhampton homes will work with the Councils housing advice service to ensure that vulnerable and homeless people receive support.

8 of 17

2.2 Wolverhampton Local Investment Plan (LIP)

The LIP sets out the joint investment priorities of Wolverhampton City Council and the Homes & Communities Agency. The LIP sets out spatial priorities for large scale investment in housing development and regeneration. The Heath Town area has been earmarked for major investment and Wolverhampton Homes will work with the City Council to help ensure that the objectives of this investment are met. Neighbourhood plans are also being developed in the Tettenhall and Bilston areas Wolverhampton Homes will assist the City Council in delivering these plans. Wolverhampton Homes recognises and welcomes the key role it can play in supporting the wider City objectives for economic recovery and growth and improved housing opportunities for all residents

2.3 Action plan for 2013/14 Appendix 2 shows how Wolverhampton Homes will implement its priorities during 2013/14.

2.4 Performance indicators and targets for 2013/14

Appendix 3 sets out the key performance indicators and targets relevant to the 2013/14 Delivery Plan. These are not the entire suite of performance indicators used by Wolverhampton Homes as the basis for monitoring and improving services but those that are most relevant to the priorities set out above and in the action plan at Appendix 2.

3 FINANCIAL PLAN FOR 2013/14

3.1 This is a 5 year medium-term financial strategy which will be reviewed and updated annually. It addresses the significant issues facing Wolverhampton Homes in relation to likely future levels of income and expenditure. The Medium Term Financial Strategy for the Company is set in the context of the wider 30 Year Business Plan for the Housing Revenue Account, managed by the City Council.

3.2 Income Forecast 2013 – 2018 3.2.1 Most of Wolverhampton Homes’ income comes from the Management Fee from the

Council. The Council will decide rents and service charge increases for tenants and leaseholders and set management fee levels for its managing agents for 2013/14 in January 2013. The Council’s current HRA business plan proposes freezing the fee in 2013/14 and 2014/15 at 2012/13 levels to reflect the efficiencies achieved by managing agents. This is so that more of the resources within the HRA can be used to invest in the housing stock and complete the Decent Homes programme. Beyond this it is reasonable to assume that management fees will increase in line with the Government’s long term inflation target of 2% per year. Forecast Management Fee levels are set out below:

9 of 17

2013/14 - £37,920,000 2014/15 - £37,920,000 2015/16 - £38,678,000 2016/17 - £39,452,000 2017/18 - £40,241,000

Future forecasts for the management fee, although not guaranteed, have been discussed with senior finance staff at the Council who have confirmed these assumptions as “reasonable”, and consistent with Housing Revenue Account modelling.

3.3 Potential Risks to Forecast Management Fee Levels – e.g. Benefit Reform

3.3.1 An argument has been made that Welfare Reform should be highlighted as a risk to the future management fee level set by the Council. This is on the basis that potentially £4M of income currently financed directly by Government from benefits will fall out of benefit due to changes in benefit rules (e.g. non-dependant deductions, child and working tax credits, child benefit freeze, incapacity benefits, social housing size criteria, benefit cap and universal credit).

3.3.2 In addition, there will be a fundamental change to income collection. At the moment housing benefits are paid direct by the DWP to the Council. In future benefits will be paid direct to tenants. This will mean that we will have to rely on tenants making the rent payment. Bearing in mind this income stream was previously 100% certain this will increase the risk of non-payment.

3.3.3 Overall, these changes have the potential to increase arrears. Although the level of

future arrears cannot be known the Project Manager for Benefit Reform estimates that potentially annual bad debts could increase by £1M as a worst case scenario. The Councils HRA business plan has already taken account of benefits reform. The bad debt provision has been increased from £500,000 to £1M per year. Wolverhampton Homes provides regular information on rent collection to the Council, and the Council intend to monitor collection levels closely to ensure that provision for bad debt is adequate.

3.3.4 Rent collection, however is not the only variable within the HRA model that could

impact on the management fee, and should not be viewed in isolation. To put this in context l have set out below the impact on the HRA model of changes in other variables as an annualised cost: 1% movement in long-term borrowing costs on, say £50M of borrowing - £500,000 per year 0.5% movement in inflation expectations for expenditure costs = £400,000 per year

0.5% increase in rent charged over the level assumed within the HRA model = + £400,000 per year 0.5% decrease in rent under level assumed within the HRA model = £400,000 per

year It should not be assumed therefore that direct payments of benefits and welfare reform in general are the only factors that can have an impact on medium term HRA plans.

3.3.5 In addition to the above, the HRA has around £10M in reserves. The Council has discretion to use these reserves, if needed, to smooth out any initial impact of Welfare

10 of 17

Reform until the new system beds in. Tenants can lose their direct payment of benefits if they are unable to cope with the new system. This means that the system may well settle down to an extent over time and initial write off levels will decrease. This is a strong argument for financing any initial shortfalls from reserves.

3.3.6 The Council also has the option to reduce budgets on the Capital Programme rather than management fee levels. Consequently, it should not be assumed that any income shortfall will automatically be met by a cut in management fees. The Council would have to take account of the impact of cuts.

3.3.7 Taking all the above into account I have concluded that there are too many variables

in assessing income to the HRA to consider the impact of Benefit Reform in isolation. 3.3.8 Other income streams relate to payments from the Council for the delivery of capital

projects and payments by third parties for services such as Asbestos. A further source of income is that staff that work on the Capital and Decent Homes programmes are also recharged to those programmes. The main elements of trading income are capital income and contracts. Capital income includes the reimbursement of costs incurred on major voids and the boiler replacement programme. Other sources of trading income are recharging the costs of the External Improvement Programme, adaptations and minor works schemes to the Council.

3.3.9 Bearing in mind the difficult economic environment expected in 2013 and beyond

increases to trading income budgets have not been built into the first year of the plan. This is a prudent approach that reduces the level of risk contained within the budget figures overall.

3.3.10 The following table shows the income forecasts for 2013-2018.

2013/14 £000s

2014/15 £000s

2015/16 £000s

2016/17 £000s

2017/18 £000s

Sources of Income

Management Fee

37,920 37,920 38,678

39,452 40,241

Trading Income 6,750 6,885 7,023 7,163 7,306 Miscellaneous income

350 350 350 350 350

Total Income 45,020 45,155 46,051 46,965 47,897

3.4 Expenditure Forecast 2015-2018

3.4.1 Pay costs make up half of Wolverhampton Homes’ expenditure. In terms of pay costs.

Looking ahead, the Government has said public sector pay increases will be limited to one per cent for 2013/14 and 2014/15, beyond this we are working on the assumption that public sector pay will increase by 2% per year in line with the long-term government inflation target. These assumptions have been built into the medium term expenditure budgets. The forecast also takes account of the cost of contractual increments.

11 of 17

3.4.2 The employer pension contribution rate paid by Wolverhampton Homes as a contributor to the West Midlands pension fund increased in 2011/12 as part of the three yearly review of employer pension charges made by the West Midlands pension fund’s actuaries. Looking ahead, no further increases in employer pension contribution rates are expected during the medium term. Indeed, discussions are currently under way with public sector unions concerning potential increases in employee pension contribution charges for some employees, combined with likely future reductions in benefits to be paid out to employees on retirement. The impact of these changes, combined with a potential drop-off in participation rates in the scheme, could be to reduce employer contribution rates for the company in the medium term.

3.4.3 Although auto-enrolment is due to be implemented by companies of the size of Wolverhampton Homes in 2013. This will mean all employees who are not members of the pension scheme will be automatically enrolled in the scheme. Employees will have the option of un-enrolling, but there is no way of knowing the extent to which they will take up this option. Auto-enrolment has no impact on our budget assumptions as budgets have always been based on the assumption that all employees are members of the pension scheme. No assumptions of underspends due to non-membership of the scheme have been built into the medium term financial forecast.

3.4.4 With regards to non-pay budgets, in general we will not be expecting suppliers to

apply uplifts to contracts and we will be looking to make savings where contracts are up for renewal. We have however, prudently built in 2% a year to non-pay budgets to cover inflationary cost increases.

3.4.5 No contingency budget has been built into budgets for any of the three years within

the Medium Term Financial Plan. This is because we have already built up reasonable levels of reserves to cover any unexpected costs. Unallocated reserves are forecast to be £3.5M at the end of March 2013. This level of reserves will allow for any sudden changes in the economic climate e.g. impact of extreme weather or additional inflationary pressures. Our reserves policy is that reserves should be at least 3% of our management fee. This is equal to a minimum reserve of £1.13M. Current reserves are clearly well above this minimum, although they are forecast to reduce over the duration of the medium term forecast.

3.4.6 The table below set out the extent to which reserves will be called upon to support

expenditure within the base budget over the life of the medium term forecast. Medium Term Use of Reserves 2013/14

£0002014/15

£0002015/16

£000 2016/17

£000 2017/18

£000Reserves at start of year 4,062 4,068 3,341 2,593 1,616Budgeted Expenditure 45,014 45,882 46,799 47,942 49,112Income Forecast 45,020 45,155 46,051 46,965 47,897Shortfall on budget 6 (727) (748) (977) (1,215)Reserves at End of Year 4,068 3,341 2,593 1,616 401

3.4.7 In 2017/18 we will need to have saved £806,000 in total over the five year life of the

plan based on these figures to maintain our reserves at our target minimum of 3% of Management Fee income, (£1.207M). Any new areas of activity will require additional savings, outside funding or new income streams.

12 of 17

3.4.8 An outline of the five year income and expenditure forecasts is attached at appendix 4.

3.5 Further Improvements to Service Efficiency

3.5.1 Areas that will need to be considered to further improve efficiency, increase income

and reduce costs are, for example:

• Reviewing the most cost effective balance between in house and contracted out work

• Increasing profitable commercial activity to supplement management fee income • Increasing non-WCC property under management, e.g. private sector leasing,

potentially increasing by 200 – 300 the properties under management, over the course of the Medium Term Plan.

3.6 Impact of the Changing Shape of Service Demand on the Business Plan

3.6.1 Plans will also have to take account of the changing shape of service demand. For

example, Digital Inclusion is likely to increase demand for services on-line in the long-term (three or four years’ time) and thereby reduce the amount of business transacted face to face and by telephone. Full account of how this will impact on our costs will need to be built into later versions of the plan. Another factor that will need to be built into the plan from 2015/16 is post-Decent Homes staffing requirements. In general, the reduction in posts necessitated by the end of Decent Homes has already been anticipated through the creation of a number of fixed term appointments to carry out Decent Homes work, and the use of contractors. However, the run-off of the Decent Homes project will still need to be accommodated into future plans.

3.7 Impact of the Environment on the Medium Term Financial Plan

3.7.1 Refinement of the plan will also need to take account of the impact of legislation etc. on our service. An obvious example of this is the impact of welfare reform. Not only will welfare reform create winners and losers amongst our tenants, changes such as direct payment of benefit will also impact on the cost of income collection – and the level of resource that will be needed to effectively carry out this activity. The Medium Term Financial Plan is not a static document, and Wolverhampton Homes will be looking to constantly develop the plan. Further development work, for example, will have to take account of any outcomes from the Board Awayday on 17 December that may have implications for the medium term financial position.

3.8 Summary

3.8.1 The report shows there will be limited funds within the base budget for service improvements over the life of the plan as it stands. Further service improvements / allocation of additional monies for investment in the stock would need to be achieved through further efficiency improvements.

3.8.2 Due to the fact that so much has already been done to reduce costs and increase efficiency within the organisation, there is limited scope to do this.

13 of 17

4 HUMAN RESOURCES PLAN FOR 2013/14

4.1 Context

4.1.1 The HR focus continues to be supporting Wolverhampton Homes in the delivery of the Decent Homes programme and the impending changes with welfare reform.

4.1.2 In addition Wolverhampton Homes seeks to continually improve services in line with customer priorities as outlined in the wider Delivery Plan.

4.1.3 The Council and Wolverhampton Homes face significant challenges in the coming year with

welfare reform changes due to commence in April 2013. Wolverhampton Homes are working closely with the City Council and other bodies to try to ensure that all affected tenants are aware of the implications and putting support in place to help tenants adjust to the consequences of the reforms.

4.2 Organisational Change and Efficiency

4.2.1 Wolverhampton Homes has a history of achieving significant efficiency savings with a reduction of over 50 posts in the period 2009/10 to 2011/12. Further value for money service reviews may yield more efficiencies however it is not anticipated that there will be any further reduction of staffing levels in 2013/14. The previous 3 years’ reduction in posts has supported the achievement of £2 million efficiency savings which we have been able to use to support improved services for tenants.

4.2.2 Continued organisational change will be necessary in 2013/14 in order to achieve some minor efficiency savings but mainly to facilitate the continued realignment needed to cope with the general challenges of Welfare Reform and the specific need to move resources to focus on income recovery.

4.3 Organisational Structure and Proposed Changes

4.3.1 There is clearly an element of unpredictability about the future but it is anticipated for 2013/2014 that overall staffing levels will remain relatively stable and where necessary continued re-alignment will occur to support the expected challenges that Welfare Reform will bring. Where possible we will use the opportunities derived from natural wastage to put additional staffing resources on income recovery. Additional organisational change may be necessary at the end of 2013 and into 2014/15 once the Decent Homes programme is complete.

4.3.2 With the background of the achievement of three stars with excellent prospects, severely constrained public finances and significant welfare and housing reform it is appropriate to consider the business case for realigning and changing some services particularly in the Housing Division to better meet the challenging economic circumstances that impact on our tenants requirements.

4.3.3 A structure is required that is most likely to help WH achieve its key business ambitions

without posing risk to excellent services or delivery of future plans. The key challenges for the next two-three years include: • Continued delivery of decent homes in line with a somewhat reduced funding profile for

the final years. • Support for customers during welfare benefit changes.

14 of 17

• Proposed changes in ASB delivery to deliver the outcomes of the recently completed ASB review which was jointly undertaken with the Council i.e. a single ASB faculty operating across the City irrespective of housing tenure

• Increased focus on income recovery • Further improvements to customer service, particularly “right first time” on repairs • Implementation of next stages of customer services strategy including self-service. • The introduction of self-financing and implications for WH • Implementation of new housing legislation • Further implementation of Learning, Employment & Achievement Programme(LEAP) a

pathway to help tenants, leaseholders and their immediate families secure work related skills, training and employment

• Continued customer involvement including local offers (service standards) • Staff engagement within the context of delivering flexible customer services and attaining

Best Companies Times 100 accreditation • In partnership with the City Council, to consider the future role and functions of WH • To provide support towards the City’s strategic objectives • To support any further organisational change.

4.4 Service and workforce planning

4.4.1 Workforce planning is about trying to predict the future demand for different types of staff and

seeking to match this with supply. It involves analysing the current workforce, and then extending that analysis to identify the future skills and competencies needed to deliver new and improved services.

4.4.2 The workforce is built around customer and service needs and the skills required to deliver

them. The gap between demand and supply and how this can be addressed forms the focus of the workforce plan.

4.4.3 Workforce and service planning enables Wolverhampton Homes to identify how and where

the workforce needs to change to meet the future needs of the organisation and provides a means of challenging and modernising the way Wolverhampton Homes delivers value for money services.

4.5 Workforce Profile

Tables 1 (a) & (b) show Wolverhampton Homes’ workforce numbers and profile at December 2012. Table 2 shows length of service of staff that left Wolverhampton Homes’ employment during 2011/12 to 31st December 2012. Table 3 shows staffing turnover rates for 2007/08, 2008/09, 2009/10, 2010/11 and 1211/12 to 31st December 2012. Table 4 shows the number of new staff who joined Wolverhampton Homes during 20011/12 to 31st December 2012. Table 5 (to follow) shows equality and diversity performance in relation to the workforce profile.

15 of 17

Table 1 (a): Workforce numbers and profile at 31 December 2012 Grade (or equivalent)

Men Women Total Disabled Black/Ethnic Minority

No % No % No % No % No % Craft 233 49.16 3 1.26 236 33.15 14 21.54 20 14.93 Scale 1-4 53 11.18 82 34.45 135 18.96 19 29.23 45 33.58 Scale 5 – SO2

126 26.58 115 48.32 241 33.85 21 32.31 64 47.76

POa – d 45 9.49 29 12.18 74 10.39 8 12.31 4 2.99 Poe – j 14 2.95 7 2.94 21 2.95 2 3.08 1 0.74 CO 3 0.64 2 0.85 5 0.7 1 1.53 0 0 Total 474 100 238 100 712 100 65 100 134 100 Table 1 (b): Workforce age at 31.12.12 Under 25 25 - 34 35 - 44 45 - 54 55 - 64 65+ Total Number 39 104 172 281 114 2 712 Percentage Total

5.48 14.61 24.16 39.47 16.01 0.27 100

Table 2: Leavers during 2012/13 (to 31.12.12)

Length of Service Less than 1 Year 1 -5 years’ service 5 years + service Total

14 7 17 38 Table 3: Turnover Rate Turnover Rate

2008/9 2009/10 2010/11 2011/12 2012/13 @ 31.12.12

12 10.2 13 7.6 5.6

Table 4: New Starters during 2012/13 (to 31.12.12) Men Women Disabled BME Total Number 16 10 0 7 26 Percentage of Total

62 38 0 30

16 of 17

Table 5: Equality and Diversity Targets and Performance

Reference Indicator 10/11 Performance

11/12 Performance

12/13 Target

Performance @ 31.12.12

BVPI 11a

% of the top 5% of earners who are female

42%

38.2%

45%

34.4%

BVPI 11b

% of the top 5% earners who are from black minority ethnic group

6%

3%

14%

3%

BVPI 16

% of the organisations workforce who are disabled (meet the DDA definition of Disability

7.4%

8.5%

5%

9.00%

BVPI 17

% of the organisations workforce who are from black ethnic minority group.

18.0%

19.5%

20%

19.00%

LPI

% of the workforce who are male / female

M 67% F 33%

M 67% F 33%

Overall target

M 65% F 35%

M 66.6% F 33.4%

LPI

% of the workforce by age distribution

Under 25's

5.6%

Under 25’s

5.79%

Under 25’s

8%

Under 25’s

5.48%

17 of 17

of 9

APPENDIX 1 PERFORMANCE REVIEW ARRANGEMENTS BETWEEN WOLVERHAMPTON CITY

COUNCIL AND WOLVERHAMPTON HOMES

1.0 INTRODUCTION ....................................................................................................... 2

2.0 WOLVERHAMPTON HOMES ANNUAL DELIVERY PLAN ..................................... 2

3.0 PERFORMANCE REVIEW ARRANGEMENTS ........................................................ 2

4.0 THE SETTING OF STANDARDS ............................................................................. 3

5.0 PERFORMANCE REVIEW MEETINGS ................................................................... 4

6.0 DELIVERY PLAN MONITORING GROUP ............................................................... 5

7.0 DELIVERY PLAN TECHNICAL MEETINGS ............................................................ 6

8.0 THE ANNUAL MEETING .......................................................................................... 7

9.0 QUARTERLY BRIEFING/EXCHANGE OF INFORMATION MEETINGS BETWEEN THE WOLVERHAMPTON CITY COUNCIL AND WOLVERHAMPTON HOMES .... 7

10.0 PERFORMANCE AND OPERATIONS GROUP (POG) MEETINGS ........................ 7

11.0 FINANCIAL ISSUES GROUP (FIG) MEETINGS ...................................................... 8

12.0 ASSET MANAGEMENT GROUP (AMG).................................................................. 8

13.0 MANAGEMENT AGREEMENT MEETINGS ............................................................. 9

14.0 WOLVERHAMPTON CITY COUNCIL BOARDS AND PANELS ............................. 9

15.0 WOLVERHAMPTON HOMES’ BOARD ................................................................... 9

of 9

SUMMARY OF PERFORMANCE REVIEW ARRANGEMENTS BETWEEN WOLVERHAMPTON CITY COUNCIL AND WOLVERHAMPTON HOMES

1.0 Introduction 1.1 Wolverhampton City Council has delegated to Wolverhampton Homes Housing

Management Services under the terms of the Management Agreement, a new Management Agreement is due to be developed and implemented during 2013/14.

1.2 This document summarises the Performance Review Arrangements between Wolverhampton City Council and Wolverhampton Homes.

2.0 Wolverhampton Homes Annual Delivery Plan 2.1 The Wolverhampton Homes Annual Delivery Plan is the key document which

supports the delivery of the Management Agreement.

2.2 The Delivery Plan details: 2.2.1 the agreed priorities of the organisation for the coming year, how these

support its strategic objectives (as set out in its Business Plan) and contribute to the goals of the Council and the community the Council represents

2.2.2 the key performance requirements of the services 2.2.3 the performance standards expected 2.2.4 the financial and staffing resources required to enable Wolverhampton Homes

to deliver the Delivery Plan and perform the Services with skill, care and diligence.

2.3 The Council will use Wolverhampton Homes’ achievement against the Delivery Plan to assess Wolverhampton Homes’ compliance with the terms of the Management Agreement. Wolverhampton Homes will provide a summary of performance against the delivery plan for all tenants managed by Wolverhampton Homes.

3.0 Performance Review Arrangements 3.1 Day to day responsibility for Wolverhampton Homes’ Performance Management

and contribution to these Performance Review Arrangements lies with the Head of Policy & Performance, reporting to the Director of Resources.

3.2 The Housing Service Manager Strategy & Development leads for the Council in matters relating to these Performance Review Arrangements.

3.3 Representing the two organisations each of the leading post holders described above will report through the normal arrangements to Senior Officers and Wolverhampton Homes Board or Wolverhampton City Council Cabinet, respectively.

3.4 The Performance Review Arrangements include: 3.4.1 jointly determining the standards required for the performance of the services

within the Management Agreement 3.4.2 jointly determining any added value outcomes (relevant to the strategic

objectives of the Council and the community which it serves) to be achieved as a result of delivering the services within the Management Agreement

of 9

3.4.3 the review processes for the key exchanges between Wolverhampton City Council and Wolverhampton Homes, namely:

3.4.3.1 monitoring of Wolverhampton Homes performance 3.4.3.2 monitoring and review of Service Level Agreements between

Wolverhampton City Council and Wolverhampton Homes 3.4.3.3 financial monitoring and reporting 3.4.3.4 negotiation of the Annual Delivery Plan

3.5 Reflecting the close partnership relationship between the two organisations, there will be regular and effective formal and informal communication between Strategic Directors and Managers of Wolverhampton Homes and Wolverhampton City Council and where appropriate, Senior Elected Members of the Council and Wolverhampton Homes board members.

3.6 The Housing Service Manager Strategy & Development is responsible for ensuring that where Service Deliveries are the direct responsibility of the Council via Service Level Agreements, these will be subject to review at the regular Performance and Operational Group Meeting (described later in this document) and where necessary reporting to Heads of Service and Executive Directors.

4.0 The Setting of Standards 4.1 In line with the Management Agreement, the services delivered by Wolverhampton

Homes will represent value for money, best value generally, and achieve continuous improvement for the benefit of the Council and its tenants and leaseholders. The Council will monitor the progress of Wolverhampton Homes towards agreed priorities, and its achievement against performance standards; ensuring as necessary that mechanisms are implemented to bring about corrective action in the event of under-performance. The objectives for continuously improving services are set out in the Delivery Plan

4.2 Having regard to the prevailing standards which inform 2 and 3 star Housing Management Services, the principles set out in paragraph 4.1 above and the needs of the Council’s Corporate Planning priorities, performance targets will be jointly agreed annually on a 3-year rolling basis for:

4.2.1 All of the Key Performance Indicators which form part of Wolverhampton City Council’s monitoring of Wolverhampton Homes performance of the services in the Management Agreement (as set out in the Delivery Plan)

4.2.2 All performance indicators, standards and targets 4.2.3 The ways in which Wolverhampton Homes will contribute to added value in the

development of the City Strategy and the Housing Strategy 4.2.4 The comparison of performance against that of recognised benchmarking

groups and similar or neighbouring housing service providers. 4.2.5 Continuous improvement to top quartile performance which when achieved will

be maintained 4.2.6 How and which non-cashable efficiency savings will be achieved

4.3 Timetable and process 4.3.1 The process for agreeing priorities and relevant performance targets each

year will be an integral part of the development of the Annual Delivery Plan and will be as set out below:

of 9

4.3.2 The Council will inform Wolverhampton Homes of the key corporate performance indicators that are relevant to its operations

4.3.3 By December of each year, following stakeholder consultation, Wolverhampton Homes will present proposed indicators and targets as part of its draft Delivery Plan.

4.3.4 The Council will provide formal comments and feedback to inform the final Draft Delivery Plan through agreement reached in negotiation in the Delivery Plan Technical Meetings. The final draft Delivery Plan, including the final proposals for targets, will be considered by the Delivery Plan Monitoring Group.

4.3.5 Any disputes regarding the setting of performance indicator targets will be determined under the relevant terms of the Management Agreement

4.3.6 By March each year, following final approval of the coming year’s Delivery Plan, Wolverhampton Homes will provide its performance targets for that year to the Council. These will be reviewed during the year in the light of performance and revisions to the targets may be agreed if performance exceeds or does not meet expectations

4.3.7 The number and extent of Key Performance Indicators will be reviewed annually as part of this process and any changes agreed by both organisations

5.0 Performance Review Meetings 5.1 Information arising from the meetings will be fed into the reporting cycles of the

Council’s Directorate Group, Cabinet, and Wolverhampton Homes’ Board. 5.2 Meeting Arrangements - Type of Meetings

The Management Agreement makes provisions for the following meetings: 5.2.1 Performance and Operations Group (POG) Meetings 5.2.2 Financial Issues Group (FIG) Meetings 5.2.3 Asset Management Group (AMG) 5.2.4 Delivery Plan Monitoring Meetings 5.2.5 Delivery Plan Technical Meetings 5.2.6 Ad hoc Management Agreement Meetings

Additionally, Wolverhampton Homes and the Council agree that further arrangements within performance management arrangements will include:

5.2.7 An Annual Meeting/Event (if appropriate) 5.2.8 Briefing/exchange of information meetings 5.2.9 Scrutiny & Performance Panels 5.2.10 Formal adoption and annual review of these arrangements as included in the

annual Delivery Plan by Council Cabinet and Wolverhampton Homes Board 5.2.11 Provision for observer status attendance by relevant Council

employees/councillors at Wolverhampton Homes’ Board Meetings 5.2.12 The following sets out the way in which we have agreed to put into practice the

calendar and membership of meetings and the supplementary arrangements

of 9

6.0 Delivery Plan Monitoring Group 6.1 Membership - key officers from the Council, Wolverhampton Homes and Tenant

Representative Body; and will comprise:

COUNCIL WOLVERHAMPTON HOMES

TENANTS REPRESENTATIVES

Cabinet Member (Economic Regeneration & Prosperity) (Chair) Asst. Director – Regeneration Chief Financial Officer Finance Manager – Housing Head of Housing Housing Service Manager Strategy & Development Appropriate employees

Chair & Vice Chair Chief Executive Director of Resources Head of Policy & Performance Appropriate officers

Tenant Representative Body (nominations)

6.2 Outline calendar

WOLVERHAMPTON HOMES - ANNUAL DELIVERY PLANNING PROCESS

DATE ACTION

August

Wolverhampton Homes Business Plan preparatory review begins

September October

Wolverhampton Homes senior Management Team and Board Business/Delivery Plan development process begins

October November

First round Delivery Plan consultation with all stakeholders, including Wolverhampton Council, through the Delivery Plan Technical meeting

December January

First draft of Delivery Plan produced for consultation with all stakeholders Wolverhampton Homes approved performance targets for the new year forwarded to the Council for inclusion in the Council’s Corporate Business Plan

March

Final draft of Delivery Plan, agreed by the Delivery Plan Monitoring group and adopted by the Council’s Cabinet and Wolverhampton Homes Board

of 9

6.3 Delivery Plan Monitoring Group Meetings 6.3.1 The Delivery Plan Monitoring Group will be the designated forum through

which all Delivery Plan Meeting business will be conducted 6.3.2 Throughout the year and at year end, the group will review performance

against the targets set out in the current year’s Delivery Plan; and, at the appropriate time in their development, review the initial and final drafts of the annual sections of the Delivery Plan

6.3.3 Prior to agreement to the document, comments / recommendations arising from the Delivery Plan Monitoring Group will be reviewed

6.3.4 On agreeing the final draft of the Delivery Plan, recommendation will be made that the Plan be accepted by Cabinet on behalf of the Council and Wolverhampton Homes Board.

7.0 Delivery Plan Technical Meetings

COUNCIL

WOLVERHAMPTON HOMES

Housing Service Manager Strategy & Development Appropriate employees

Director of Resources Head of Policy & Performance Appropriate officers

7.1 Frequency – these meetings will be held as necessary after the first Draft has been distributed until the final adoption of the Delivery Plan by Wolverhampton Homes Board and the Council’s Cabinet

7.2 These meetings at officer level are integral to the development of the annual sections of the Delivery Plan, and to the wider performance review process throughout out the year.

7.3 Responsibility for the development and production of the Delivery Plan rests with Wolverhampton Homes, however, the process of Delivery Plan Technical Meetings will facilitate full and proper participation with appropriate representatives of the Council; and opportunities for timely consultation with the Tenant Representative Body and other key stakeholders.

7.4 Wolverhampton Homes’ Director of Resources will be responsible for making available, at the appropriate times, the initial draft of the Delivery Plan setting out the proposed performance indicator targets, and final draft of the annual sections of the Delivery Plan. These will be forwarded to the Council’s Housing Service Manager Strategy & Development in a timely manner for presentation to the Group.

7.5 The Council’s Housing Service Manager Strategy & Development will be responsible for ensuring that any feedback and/or recommendations arising from the quarterly monitoring of the Delivery Plan, presentation of the initial Delivery Plan, and presentation of the final draft Delivery Plan, are presented to the meeting in a timely manner. Information to be exchanged will normally be managed by the Housing Service Manager Strategy & Development and the Policy & Performance Team, for the Council and Wolverhampton Homes respectively

of 9

7.6 Any disputes arising out of any sections of the Delivery Plan, including performance indicator targets, will be determined under the terms of Clause 62 of the Management Agreement.

8.0 The Annual Meeting 8.1 The Council will, if appropriate, call this meeting, with invitations extended to all

stakeholders. The purpose of the open forum is to provide a wider audience with the opportunity to participate in celebrating the value added outcomes for the City, of the partnership arrangements between the Council and Wolverhampton Homes.

8.2 Such stakeholders will include, but not exclusively:


TENANTS REPRESENTATIVES

All Elected Councillors Corporate Directorate Appropriate senior employees

All Board Members Senior Management Team Appropriate senior officers

Tenant Representative Body Appropriate area representatives

9.0 Quarterly briefing/exchange of information meetings between the Wolverhampton City Council and Wolverhampton Homes

9.1 To maintain good communication links, a range of mechanisms are in place to promote positive working relationships and keep councillors well informed about Wolverhampton Homes’ activities and performance. These include, for example, contributions to regular Councillor briefings and attendance by invitation at Council Boards & Panels.

10.0 Performance and Operations Group (POG) Meetings 10.1 Council has put in place a Performance Monitoring team to develop the relationship

between Wolverhampton Homes and the Council. This team is led by the Housing Service Manager Strategy & Development who has lead responsibility for monitoring arrangements

10.2 The Council’s Housing Service Manager Strategy & Development team will undertake the servicing of the Performance and Operational Group (POG) meetings.

10.3 Information to be exchanged outside the meetings will normally be managed by the Housing Service Manager Strategy & Development team and the Policy & Performance Team, for the Council and Wolverhampton Homes respectively. Meetings will be held, as a minimum, on a monthly basis between the Council’s and Wolverhampton Homes’ nominated representatives.

10.3.1 In addition one meeting each quarter will take the form of the Council’s representative attending Wolverhampton Homes Management Team to take part in the section of that meeting that deals with the detail of Performance Reporting for the Quarter.

10.4 Meetings will consider: 10.4.1 operational issues

of 9

10.4.2 the manner and extent of Wolverhampton Homes’ provision of the services described in the Agreement and Delivery Plan

10.4.3 long term void properties, both Development and Management in the light of revised arrangements relating to discount of Council Tax for these properties

10.4.4 progress against the Decent Homes Programme is monitored by the Decent Homes Core Group, the minutes of which will be part of the regular agenda for consideration by the Joint Meetings. The Decent Homes Core Group is a Wolverhampton Homes group chaired by the Director of Property Services and attended by appropriate members of the Asset Management Team and Council’s Housing Service Manager Strategy & Development.

10.4.5 other relevant issues which may arise from time-to-time. 10.5 A standing agenda will provide for the meeting to consider on a monthly basis,

operational issues; and on a quarterly basis, performance against the Delivery Plan and additional strategic issues.

10.6 The table below indicates the members attending this meeting regularly and these may be supported by others as necessary for any particular meeting.


Housing Service Manager Strategy & Development Appropriate employees

Head of Policy & Performance Performance Monitoring Manager

11.0 Financial Issues Group (FIG) Meetings 11.1 FIG will be serviced by the Council’s finance team and supported by the Housing

Strategy & Development team. 11.2 FIG will consider all aspects of Capital and Revenue finance at a strategic level. 11.3 The group will meet regularly at six week intervals 11.4 Reporting of the outcomes of the meetings, to Members and Wolverhampton

Homes Board, will be the responsibility of the Finance Officers of the Council and Wolverhampton Homes respectively through their established routes.

11.5 The table below indicates the members attending this meeting regularly and these may be supported by others as necessary for any particular meeting.

COUNCIL WOLVERHAMPTON HOMES Chief Financial Officer or Deputy (Chair) Accountant – Financial Planning Housing Service Manager Strategy & Development

Director of Finance Head of Financial Management

12.0 Asset Management Group (AMG) 12.1 AMG will be serviced by Wolverhampton Homes and supported by the Council’s

Housing Strategy & Development team. 12.2 Meetings will consider all aspects of the Housing Capital Programme delivery

including the Decent Homes Programme.

of 9

12.3 The group will review and amend the Asset Management Strategy (AMS) and monitor performance against the AMS.

12.4 Meetings will be held at approximately six week intervals. 12.5 The table below indicates the members attending this meeting regularly and these

may be supported by others as necessary for any particular meeting.

COUNCIL WOLVERHAMPTON HOMES Wolverhampton City Council Assistant Director - Regeneration (Chair) Housing Service Manager Strategy & Development Head of Corporate Finance (or representative) Head of Housing Appropriate employees

Wolverhampton Homes Chief Executive Director of Property Services Director of Finance Head of Operations Head of Asset Management Contract and Compliance Manager Decent Homes Programme Manager Appropriate officers

13.0 Management Agreement Meetings 13.1 Additionally, the Council and Wolverhampton Homes shall meet at such a level and

with such frequency as may be reasonably required to ensure the Agreement is honoured and the Delivery Plan is performed.

14.0 Wolverhampton City Council Boards/Panels

14.1 Scrutiny Board of the Council hold the Directorates to account for their decisions, and to assist the Directorate in the review and development of policy. The Board comprising of members from all parties maintain communications with the Executive and Member Champions.

14.2 Where reasonably requested to do so, appropriate senior officers of the Council will be required to attend the Council’s Performance Panel and/or Scrutiny Board.

14.3 Senior Officers of Wolverhampton Homes may from time to time, be requested to report directly to appropriate Council Boards/Panels on its performance.

15.0 Wolverhampton Homes’ Board

15.1 Representatives of the Council will be entitled to receive meeting papers and to observe Wolverhampton Homes Board.

1

APPENDIX 2 TO 2013-14 DELIVERY PLAN

ACTION PLAN TO DELIVER 2013-2014 PRIORITIES

Colour key:

Priority Actions By

When Quarterly targets Divisional

Service Plan Resource/ Value for Money implications

1. Encouraging enterprise & business

1.1 LEAP • Recruit to the LEAP Coordinator post

• Integrate recruitment of social enterprise placements into the LEAP processes

• Promotion of LEAP within the sector and wider

• Identify any appropriate funding opportunities, putting in bids where appropriate

• Ensure wider stakeholder involvement in the project

• Review the project • Working in conjunction with

Human Resources, mainstream the project to ensure LEAP is used for all entry level posts across the company

Q1: Appointment made

Housing (Angela)

• Cost of LEAP Coordinator post has been allowed for within the base budget for 2013/14.

• Where possible the number of LEAP posts will be grown by switching vacant posts into LEAP roles where opportunities arise. This will ensure that LEAP is used for all entry level posts without having to create and fund new roles.

Q2: Promotion campaigns Q3: Q4: LEAP mainstreamed

1.2 Social enterprise • Engage, train and develop Q1: Deliver Qtr 1 Property Services • Social enterprise

2

Priority Actions By When

Quarterly targets Divisional Service Plan

Resource/ Value for Money implications

trainees from LEAP Initiative

• Deliver Fencing Programme• Deliver fencing repairs /

responsive fencing service • Deliver After Care Painting

Programme • Develop further services for

owner occupiers and other paid services

fencing programme (Ian) Business Plan and financial projections fully assessed. VFM is reliant upon trainees achieving forecast productivity levels. Productivity to be closely monitored and controlled.

Q2: Deliver Qtr 2 fencing programme Q3: Deliver Qtr 3 fencing programme Develop marketing / growth strategy Q4: Deliver Qtr 4 fencing programme Market and deliver paid services

1.3 Commercial services development

• Review of commercial services within Wolverhampton Homes to be undertaken.

Q1: Property Services (Shaun)

• Benefits in developing the commercial activities of Wolverhampton Homes include creating jobs and contributing to the Corporate Social Responsibility Fund were put to the Finance and Audit Committee in July 2012. Set out in the report were a number of limits and controls to ensure that commercial activity is developed to the benefit of Wolverhampton Homes, the Council and its tenants. It was noted that further work to develop wider

Q2: Q3: Q4:

3




organisational commercial acumen was required in light of the forthcoming appointment of the strategic construction partnership.

2. Empowering people & communities

2.1 Staff engagement • Use internal communication to support employee engagement activity.

• Enter Sunday Times Best Companies Award. Improve position from One Star and improve position in Top 100.

March 2014

Q1: Complete employer brand work and hold Talk Times to involve staff in the business.

Corporate Services

• Managed internally through existing budgets

Q2: Hold Talk Times to involve staff in the business and enter 2013 Times 100 awards Q3: Go through results with Best Companies identifying areas of improvement. Q4: Action plan for forthcoming financial year.

2.2 Single Equalities Action Plan

• Refresh and continue to implement the SEAP.

• Sign up to CIH Equalities

On-going throughout

Q1: Progress against plan reported to Business Improvement

Corporate Services

• This will be delivered within existing budgets.

4




Charter and develop action plan.

• Continue to take forward any actions from the Diversity Peer Challenge 2011 and CIH action plan.

2013/14 Committee (BIC) and outcomes achieved and published. Q2: Q3: Q1: Progress against plan reported to BIC and outcomes achieved and published. Q4:

2.3 Self-service & digital inclusion

• Promote the use of current self-service on-line services

• Roll out repairs ordering on-line

• Work with Communications to market self-service / digital inclusion

Q1: SMS Contactors released. Self-serve appointments released Promotion of Self-serve Target: 200 signed up to self-serve

Resources • Self-service has the lowest cost per transaction. Long-term the increased use of self-service will reduce the costs associated with providing other service options such as face to face or telephone transactions. Q2: Target: 450

signed up to self-serve Q3: Target: 700 signed up to self-serve Q4: Target: 1000 signed up to self-serve

2.4 Complaints procedure review

• Set up complaint appeals panel

Q1: Panel set up and running

Resources • Recruit, train and support of tenants on group Q2:

Q3:

5




Q4: 2.5 Self-regulation

including Peer Review and review of Review Panel

• Identify a third party / other ALMOs to take part in Peer Reviews of WH services

• Carry out a review of the terms of reference for the Review Panel, now that the Panel has become established.

Q1: Appoint peer reviewer

Resources • Resource implications of this are limited to the one-off costs of carrying out the peer review. These are estimated to be around £5,000. This will be considerably less than the cost of Audit Commission Inspections and it is anticipated that peer reviews will pay for themselves in terms of service improvements / efficiency savings generated by the reviews.

Q2: Q3: Complete first peer review Q4:

2.6 Mobile working • Complete pilot mobile working project

• If pilot is successful then we would roll out Stone mobile device to estate managers and money smart team.

Q1: Pilot new Stone devices

Resources • These mobile devices were purchased in 2012/13, and hence there is no cost associated within them to be borne from the 2013/14 budget.

• We already have 8 Stone mobile working devices for Estate Management already purchased. There will be costs associated with the Stone devices. These units are £766.21

Q2: Roll out mobile working within estates, subject to outcome of pilot Q3: Q4:

6




per device in the first year. On-going costs are then around £270 per year. There is a meeting already planned for early January to review how the pilot is going. £40,000 has been budgeted for next year for the roll out of mobile working.

2.7 IT systems changes • Develop SharePoint solution / Intranet

• Implement Electronic Documents Management (EDM)

• Upgrade to latest version of Northgate, 6.8

Q1: Resources • IT Systems changes are allowed for each year in the base budget,

Q2: SharePoint Intranet go live Q3: Complete Implementation of EDM Q4: Upgrade to version 6.8

2.8 Accommodation review • Assess scope to make better use of office space / make savings on office costs

Q1: Resources • Whilst making better use of accommodation has merit, potential cash savings are limited as rents charged by the HRA for use of HRA assets are generally low. However, transferring surplus offices into the housing stock has very significant benefits for service users.

Q2: Report on Accommodation Review to Business Improvement Committee Sep 13 Q3: Q4:

2.9 Integrated approach to • Review of internal audit Q1: Report revised Resources • This review is linked to

7




internal and quality audit

contract • On-line assessment tool

Mazars Internal Audit Plan, and overall summary of internal reviews to Audit Committee

reducing the amount of days purchased from Mazars for Internal Audit work. Cash savings of around £10,000 are anticipated. Q2: Increase service

areas covered by on-line assessment tool to include: Asbestos, tenant engagement, voids, lettings and income management Q3: Q4:

2.10 Tenant engagement • Raise profile of Tenant Engagement Team within the company to ensure a ‘mainstreamed’ approach to tenant engagement (TE)

• Develop a programme of consultation which directly relates to the priorities set out in the Delivery Plan

• Review the Get Together model to see if it achieves best results for tenants and residents within all four areas of the City

• Review the Special Interest model to ensure it achieves the best results for tenants and residents and the

Q1: Still to be determined

Housing (Angela Barnes)

• To be carried out within existing budgets

Q2: Q3: Q4:

8




company • Work with WFTA to develop

their to become a more strategic body

• Develop a programme of Impact monitoring to check that TE is effective

• Develop robust and regular feedback to tenants

• Ensure that there is a programme of training and other activities so that tenants can develop their capacity and take an active role either in their community or in decision making

• Work with younger Tenants (under 35 years) to develop them in role of Tenant Involvement Ambassador

2.11 Provision of white goods

• Promote access to white goods by low cost loans provided by Credit Union

Q1: Sign off a white goods scheme with the Credit Union


• Links to Local Discretionary Grants

• An initial allocation of £10,000 was proposed in 2012/13. This will be an investment in share capital in the Credit Union to enable them to fund loans for tenants qualifying for the scheme. This will be

Q2: Q3: Q4:

9




met from existing budgets.

2.12 Anti-Social Behaviour review

• Implement the findings of the ASB review, creating one integrated tenure neutral team for the city

• Review and integration of policies and procedures

• Create and promote one ASB reporting line for the city

Q1: New team / service delivery model established

Housing (Nigel Homer)

• Costs will be subject to an assessment of the implications of the Council’s Single Status scheme on this proposal.

Q2: Review of procedures completed Q3: Q4: Review

2.13 Concierge implementation of service review

• Upgrade technology to support residents choices

• Delivery of Options • Embed new working

requirements/teams

Q1: Completion of technology upgrade. Delivery of options. New working requirements/teams in place

Housing (Darren Baggs)

• Openview to upgrade technology in line with services chosen by residents.

• New range of service options / charges

• Resources to cover the cost of works associated with this proposal have already been allocated within the 2012/13 budget.

• In terms of on-going costs the scheme was designed to reduce overall costs of running the service. Exact savings in 2013/14 will not be known until all appointments to the new structure have been finalised.

Q2: Monitor performance and effectiveness of residents’ options and new working methods. Modify if required Q3: Customer satisfaction survey (MEL) Q4: Action plan following monitoring / survey findings

10




2.14a Leaseholder management

Asset Management plan/Stock investment forecast (1100 no.) • Make all leaseholders

aware of WH intention to produce plans

• Property Services production of plans specific to individual blocks and subsequent distribution over a 12 month period.

• Manage subsequent enquiries

Q1: Distribute plans and place article in Leaseholder News



Q2: Distribute 30% of plans



2.14b Leaseholder management

Repair charges and receipts • Review charges made for

communal area repairs • Review text included upon

receipt • Light bulb change only,

possible annual fee

Q1: Complete review of charges/ statements



Q2: Consult with Leaseholder Forum Q3: Implement review Q4:

2.14c Leaseholder management

Gas servicing • Maintain service data base • Increase subscriptions to

the service (228 leaseholders are on our scheme as at 06.12.12)

• Periodic reminders advising leaseholder of responsibilities, promotion of WH service

Q1: Article in Leaseholder News



Q2: Q3: Article in Leaseholder News Q4: Letter to Leaseholders with Service Charge Invoices Numbers on scheme

11




increased to 250 2.14d Leaseholder

management Review Leaseholder engagement • Action plan following

Customer Satisfaction Survey

Q1: Consult with Leasehold Forum on Action Plan Report to Board



Q2: Implement changes Q3: 2013 Customer Satisfaction Survey Q4: Review action Plan following results On 2013 survey

2.14e Leaseholder management

• Manage increased Right to buy applications (Applications have Increased 4 fold and completions have doubled this year)

Q1: Review output for last Financial Year and predict output for forthcoming year


Q2: Q3: Q4: Review output

2.14f Leaseholder management

• Review of ad-hoc charges (i.e. information pack)

Q1: Commence investigations


Q2: Report to Board Q3: Q4: Implement new charges

2.14g Leaseholder management

Enhance consultation in conjunction with implementation of major work within Northgate

Q1: Agree procedures


Q2: Testing Q3: Northgate

12




• Option appraisals • Evidenced based and

documented assessment of required works

• Consultation •

implementation Q4:

2.14h Leaseholder management

Support property services delivery of the fencing programme • Communication with Owner

Occupiers • Agreement via consultation • Financial contributions

Q1: Continue to support Property Services by promptly consulting with owner occupiers and ensuring prompt invoicing


Q2: Q3: Q4:

2.15 Welfare Reform • Assess the impact on tenants and the company of first stages of welfare reform (WR) due April 2013

• Review WR Project Action Plan in light of above

• Review communication strategy in light of above

• Continue to identify those households who are most affected by the changes to welfare benefits especially in relation to universal credit and take action to address where impact is greatest

Q1: Initial impact assessed Review of income management procedures complete

Housing (Angela Barnes) (Nigel Homer)

• Extra posts to assist with the implementation of Welfare Reforms are a combination of permanent roles and one-off appointments to temporary posts.

• Permanent posts were created as part of the Realignment of Housing Services, which moved resources within the Directorate.

• Temporary posts were funded as a one-off

Q2: Review of arrears levels Communications re Universal Credit Q3: Q4:

13




• Work with WCC in relation to the development of Local Grant Scheme (Community Care Grants & Crisis Loans replacement)

• Monitor and review the impact of the work being done by Money Smart Team

• Monitor and review the impact of the Under Occupation Officer work

• Working in partnership with CAB, review and assess the impact of the Better Off in Wolverhampton project

• Assess the impact on One Stop Shops following WR implementation

within the Wolverhampton Homes budget in 2012/13

2.16 Better off in Wolverhampton

• Work in partnership with CAB to deliver the aims of the project to build financial confidence among tenants

Q1: Still to be developed



Q2: Q3: Q4:

3. Re-invigorating the City

3.1 Private Sector Leasing • Recruit to the post of Management Surveyor to head the PSL scheme

• Develop and implement the ‘Find a Tenant’ and ‘Housing Management’

Q1: Appointment made


• The Management Surveyor post was created as part of the Housing Service Realignment in 2012/13.

Q2: Find a tenant scheme implementedQ3: Q4: Portfolio

14




options under the PSL banner

• Seek to increase the PSL portfolio of properties

• Work with WCC to develop any identified business opportunities that may arise from the low cost loan scheme being developed by the Council

• Investigate the feasibility of establishing a social lettings agency within Wolverhampton Homes

increased to 55 • In order to be prudent, no assumptions have been made about increasing income from PSL.

• Any additional income may potentially be ploughed back into publicity etc. to generate additional take up.

3.2 RTB buy back • Increase the number of rentable accommodations, supporting WCC’s housing strategy

Q1: Complete sales that did not complete in Qtr4 of F/Y 2012/13


• This was a one off project for 2012/13 – may need to carry forward if not delivered.

• This was financed by WCC by reducing the Wolverhampton Homes Management Fee for 2012/13 by £1M. Wolverhampton Homes made up the funding gap from the underspend it carried forward in April 2012.

Q2: Q3: Q4:

3.3 Land Strategy • Support WCC in identification of developable land.

Q1: audit of all WH managed land



Q2: Action plan key sites

15




• Support WCC in the delivery of the housing strategy and increase the levels of social/affordable accommodation in the city

Q3: Q4:

3.4 Best use of housing stock

• Continue to contribute to the work being done by WMBUS (West Midlands Best Use of Stock) in light of WR to make best use of housing stock

• Review and where necessary further develop the role of the Under Occupation Officer to ensure every opportunity to maximise stock is being taken

• Work with WCC to refresh the offer within the private rented sector

• Work in partnership with WCC to review the Allocation Policy in line with CLG Allocation of Accommodation

• Work in partnership with Property Services in relation to the remodelling of property

Still to be developed Q1: Succession policy implanted Transfer with arrears policy implemented



Q2: Policy reports considered by Board Q3: Q4: Allocation policy review completed

3.5a Sustainable estates Grounds Maintenance Q1: Contract review complete.

Housing • Funding for sustainable

16




• Maintain the excellent standards of Grounds Maintenance works upon WH managed land.

• Undertake a project to address the communal areas at the rear of flatted accommodation

• Deliver a number of landscaping projects in support of Estate inspection observations

Enhancements identified

estates is already built into the Asset Management Plan. Q2: Board report

Q3: Q4: Six environmental schemes delivered

3.5b Sustainable estates Tree management plan • Update and publish tree

management programme post 2016.

• Maintain accurate GIS tree data post-delivery of programme

Q1: undertake revised tree survey

Housing • Funding for sustainable estates is already built into the Asset Management Plan. Q2: undertake

revised tree survey Q3: Develop and add to GIS the 2016-2021 Plan Q4:

3.5c Sustainable estates Garages • Identify sustainable garages

sites to Property Services for Refurbishment.

• Review Garage sites without demand and identify alternative uses

•

Q1: list of sites to be provided to Property services

Housing • Funding for sustainable estates is already built into the Asset Management Plan. Q2: Property service

Procure identified works Q3: Works undertaken, Garages marketed Q4:

17




3.5d Sustainable estates Development • Review the impact of the

Housing Intervention Team towards sustaining tenancies

• Land management – review land within WH responsibility

Q1: identify key Projects/prioritise/ actions

Housing • Funding for sustainable estates is already built into the Asset Management Plan. Q2:

Q3: Q4:

3.6 Strategic Construction Partnership

• Deliver 6th year of decent homes programme. The new Strategic Construction Partnership has been procured to replace the Decent Homes Partnership. The mobilisation and delivery of the new Partnership will be supported by detailed activity programmes and formal performance management and governance arrangements.

March 2014

Q1: Demobilisation of existing partners and mobilisation of new partners. Delivery of circa 100 completed homes.

Property Services (Simon)

• Staff time and consultancy support to mobilise and robustly manage the commercial and operational aspects of the new Strategic Construction Partnership. These costs are essential to ensure Value for Money can be delivered.

Q2: Implement new Price Framework and governance arrangements. Delivery of 549 completed homes Q3: Establish new training programmes. Delivery of 549 completed homes Q4: Delivery of 549 completed homes

3.7 Neighbourhood Profiling / Sustainability Modelling

• Review and refine the Neighbourhood Profiling information to incorporate a broad range of metrics such as environment, fuel

Q1: Produce revised template for Neighbourhood Profiling

Property Services (Simon)

• Staff time needed to develop and produce the Neighbourhood Profiling / Sustainability Modelling information. Q2: Develop

functionality for the

18




poverty, employment, local economy, crime, health and well-being.

• Produce detailed stock investment information for all property archetypes & sub-archetypes, derived from the 30-year stock investment information contained within the 2012 Building Cost Model.

• Develop a Sustainability Model that considers the sustainability of individual housing archetypes in specific areas of the city (by analysing housing, asset management and commercial issues within the context of wider neighbourhood sustainability.

Sustainability Model • The Sustainability Model will improve the level of Value for Money achieved in the future, through better use of limited stock investment funding, as it will enable investment decisions to take account of the sustainability and longevity of the stock.

Q3: Produce Neighbourhood Profiling information and 30-year stock investment data for the housing sub-archetypes. Q4: Produce first results from the Sustainability Model.

3.8 Vision for repairs • Complete workshops and consultation with stakeholders.

• Develop and refine repairs vision.

• Develop ICT and operational implementation plan

• Change service delivery to match new vision

Q1: Undertake workshops and consultation with all stakeholders

Property Services (Ian)

• The Repairs Vision includes the need to increase capacity within the ‘in house repairs team’ which will affect resource levels. VFM will be an integral part of the vision’s development.

Q2: using feedback from consultation develop and refine the new repairs vision Q3: Develop operational and ICT

19




implementation plan to support changes required Q4: Undertake changes required to current service delivery to match new repairs vision

3.9 Green Deal Green Deal 1. Work with a range of third

parties to support the delivery of the agreed West Midlands sub-regional ‘Green Deal’ delivery model.

2. Work in conjunction with the Council to:- • Clarify, agree and produce

a ‘Green Deal’ policy for tenants and leaseholders.

• Identify financial solutions to delivering ‘Green Deal’ to the social stock.

3. Work with the successful Strategic Construction Partners to research and identify shared potential ‘Green Deal’ commercial opportunities.

Energy Company Obligation (ECO) 1. Work in partnership with the

Q1: A) Green Deal Policy agreed with WCC B) ECO subsidy programme successfully procured with WCC

Property Services (Kevin)

• Work to support this initiative to be carried out within existing budgets

Q2: 200 properties receiving ECO measures Q3: 200 Properties receiving ECO measures Q4: 100 Properties receiving ECO measures

20




Council, energy companies, ‘ECO’ brokers and their intermediaries to: - attract ‘ECO’ inward investment for eligible properties and develop modern insulation, heat and power solutions for the stock.

3.10 Fencing programme • Review and develop new fencing programme

• Deliver fencing programme through Social Enterprise

Q1: Deliver Qtr 1 Fencing Programme Target - numbers and spend

Property Services (Ian)

• Programme to be delivered using partner contractor and Social Enterprise. All costs and productive outputs to be closely managing and controlled.

Q2: Deliver Qtr 2 Fencing Programme Target - numbers and spend Q3: Deliver Qtr 3 Fencing Programme Target - numbers and spend Q4: Deliver Qtr 4 Fencing Programme Target - numbers and spend

Appendix 3

Key Performance Indicators Report

Title Performance Indicator Target 2012/13 Proposed target 2013/14 Good Performance

RM1a % of rent collected 98.25 97.00

RM2 % of tenants owing over seven weeks rent 1.75 2.00

RM6

% Of Tenants Paying by Direct Debit (Excluding Tenants on Full Housing Benefit) (City Wide) 30.00 17.50

RM10a% of rechargeable repairs charged this financial year that have been recovered 15.00 20.00

HO3a% of Service Charges inc Ground Rent collected from Leaseholders 96.00 96.00

RP1

% of responsive repairs during period for which an appointment was made/kept

96.00 94.00

RP2a

% of valid gas certificates for tenanted properties.

99.60 99.60

RP9% of Programmed Repairs completed within Timescale 90.00 90.00

RP12% Total response repairs completed within target 99.00 99.00

RP15Repairs completed right first time

90.00 90.00

VA1aAllAverage time taken to re-let local authority housing n/a 25

VA1aMinAverage time taken to re-let minor works voids n/a 19

VA1aMajAverage time taken to re-let major works voids 30 35

VA3

% Rent lost through empty property

1.30 1.70

BP1Average number of Working days lost through sickness 7.00 6.75

BP10% of satisfaction with media publications written by Wolverhampton Homes 93.00 93.00

AB1% satisfied with the way their asb complaint was dealt with 80.00 80.00

AB2% satisfied with the outcome of their ASB complaint 75.00 80.00

DH1 % Non decent council homes 18.20 10.40

DH1aNumber of Non decent dwellings made decent 1520 1747

DH1bNumber of Non decent dwellings made decent in priority neighbourhoods 867 1205

DH1cTotal number of properties that have received decent homes work 1670 1747

DH3Actual constructor performance against programmed 100.00 100.00 +-5%

DH4% Of tenant dwellings completed within target time 96.00 96.00

S20Satisfaction with Decent Homes

96.00 96.00

AD10Average end to end disabled adaptions time (in calendar days) 55.00 55.00

CC1bHomes Direct - % of calls abandoned

5.00 5.00

CC1aHomes Direct - % calls answered in 30 seconds 75.00 75.00

CC4% of Enquiries resolved at first point of contact 80.00 80.00

CC11

Duplicate contact - % The proportion of customer contact that is of low or no value to the customer. 19.50 19.50

S26 Satisfaction with complaints handling 70.00 70.00

IN1

Number of new tenants involved in Get Togethers, Review Panels & Special Interest Groups 525 525

EM1% of Estate Inspections achieving Good or Excellent rating 95.00 95.00

ES11% of fire checks completed on high rise blocks 100.00 100.00

ES12% of low rise flat checks completed every 3 months 99.00 100.00

Appendix 4

2013/14 2014/15 2015/16 2016/17 2017/18Year 1 Year 2 Year 3 Year 4 Year 5

£ £ £ £ £

Pay Budgets - Base 22,060 22,670 23,095 23,760 24,442

Increments 197 199 203 207 211Pay Award - 1% yrs 1 & 2, then 2% 223 227 462 475 489Realignment Growth 117 0 0 0 0Temp FI officers x 3 73 0 0 0 0

Revised Pay budgets 22,670 23,095 23,760 24,442 25,142

Non Pay - Base 21,710 22,144 22,587 23,039 23,500

Non Pay Inflation 2% per year 434 443 452 461 470

Non Pay revised base 22,144 22,587 23,039 23,500 23,970

Delivery Plan Items - One off

Fencing (£600k in base, C/F £200k in yrs 1 & 2 approved FC 25/7/12) 200 200 0 0 0

Total Non Pay Budget 22,344 22,787 23,039 23,500 23,970

Total Expenditure 45,014 45,882 46,799 47,942 49,112

Income

Forecast Management Fee 37,920 37,920 38,678 39,452 40,241

Trading income 2011/12 Budget 6,750 6,885 7,023 7,163 7,306

Other Income 350 350 350 350 350

Total Income 45,020 45,155 46,051 46,965 47,897

Shortfall (Surplus) -6 727 748 977 1,215

Reserves 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Opening 5,952 4,062 4,068 3,341 2,593 1,616

Fencing carried forward 400 0 0 0 0 0Heath Town Reserve balance -544 0 0 0 0 0Contribution to revenue -2,000 0 -727 -748 -977 -1,215Forecast revenue surplus 254 6 0 0 0 0

Closing 4,062 4,068 3,341 2,593 1,616 401

Reserves Target for 2017/18 1,207

Amount needed to be saved to get reserves to 3% of budget in 2017/18 806

Five Year Revenue Budget 2013/14 - 2017/18