Blackpool ALMO

Contents Page

Foreword by Group Leaders of Blackpool Borough Council

Foreword by the Cabinet Member for Adults, Community Safety Housing and Health

Executive Summary

Section A ALMO Summary Sheet

Section B Stock Option Appraisal Summary

Section C Blackpool’s Strategic Context

Section D Scheme Outline

Section E ALMO Funding Required

Section F Decent Homes Delivery

Section G Sustainability

Section H Division of Functions

Section I Improving Service Delivery

Section J Best Value Reviews

Section K Tenant and Leaseholder Involvement

Section L ALMO Structure and Board

Section M ALMO Independence

Section N ALMO Staffing arrangement

Section O Council Strategic Function

Section P Monitoring Arrangements

Section Q Timetable

Appendix One Map of Blackpool Borough Council Housing Estates

ALMO Draft Bid

Appendix Two Building Cost Model Foreword By The Leader Of The Council And The Labour Group

Blackpool Borough Council has consulted with its tenants and leaseholders and worked hard to ensure that they receive high quality services within properly maintained homes.

Here at the Council we believe we are a good and responsible landlord and wish to protect the interests of our tenants in the long term. Of the investment options available to us, the ALMO option was the only one that allowed us to continue to commit to our tenants and protect their rights, whilst at the same time offering the opportunity for investment in the housing stock to keep it sustainable and meet the needs of the ‘New Blackpool’ project. I am particularly pleased that the Council’s decision that ALMO is the way forward for Blackpool received 100% support from all the elected members at Full Council.

We believe that the ALMO option will build on the good housing services we are already providing. Our services are continually reviewed and actions put in place to improve them. The inspection of our Repairs and Maintenance Service in 2004 demonstrated how far the service had come, when it received a 2 Star and likely to improve result. This achievement, and the service wide focus on service improvement and organisational efficiency that underpins it, gives us confidence that Blackpool Coastal Housing will achieve a minimum of 2 Stars when it is inspected.

This bid for £66.2 million to achieve a sustainable Decent Homes Standard has the full backing of the Council. It will make an enormous difference to the lives of our tenants and leaseholders, building on the successes we have already achieved as a Council. Success will also allow the housing service to move forward in a new direction with many longer-term benefits achievable in the future.

Cllr Roy Fisher Leader Of The Council And The Labour Group

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Foreword By The Cabinet Member for Adults, Community Safety Housing and Health I am pleased that the Council, with the support of the Tenants ALMO Group and the Tenants Liaison Forum, has decided, through the comprehensive Stock Option Appraisal process, that the ALMO Option should be the way forward to provide investment in the Housing Stock.

I am proud to be a part of a service that continually challenges itself, changing and improving to provide the best possible service to the tenants and leaseholders of the Council.

The Council’s housing service has achieved success in many areas, including being awarded the Deputy Prime Minister’s Award for Sustainable Communities in 2004 and The Housing Excellence Award in 2005 for the Grange Park Estate. The service challenges itself internally to ensure that management is effective and systems and procedures efficient. Achievement has also been recognised by the award of the ISO 9002 Quality Assurance Standard in 2001 and more recently by being awarded Investors in People status.

I am confident that the ALMO will achieve at least a 2 Star rating. The Repairs and Maintenance Service achieved this rating in 2004, and work continues in all areas of the housing service to ensure the service is continuously improving with tenants’ views constantly taken into account.

I know that the decision to set up an ALMO is the right choice for Blackpool because it is the best way of looking after our tenants’ and leaseholders’ interests. Success with this bid will provide benefits for them that would not be available otherwise. It will link in to the Local Area Agreement and help ensure environmental and community sustainability, through both physical improvements and to employment and training with our partners. I am looking forward to seeing the housing service further develop and improve in the future.

Cllr Sue Wright

Cabinet Member for Adults, Community Safety Housing and Health

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Executive Summary

There is in Blackpool a tangible drive towards improving the quality of life for the people of the town with many agencies coming together to create a sense of urgency and to get things done.

At the forefront of Blackpool’s renaissance is the Masterplan, with the aim of returning Blackpool to its glory days, when it had a strong local economy. The Masterplan provides a vision for the way the town will develop physically; improving the seafront, providing a first class shopping experience, attracting high quality hotels, which may include the country’s first ‘Super Hotel’ containing major casino attractions, and providing more attractive and inviting open spaces.

The provision of housing is key to achieving this vision of a revitalised Blackpool. Housing is particularly required for the workforce that will create the physical changes to the town and then, in the long-term, accommodation is needed for the people who work in the various service industries supporting Blackpool’s economy.

The Council’s Housing Strategy focuses on three main areas:

• Dealing with poor quality private sector accommodation, ensuring that physical improvements go hand in hand with developing a balanced housing market.

• Ensuring that local authority housing meets the Decent Homes Standard

• Ensuring that accommodation within the town reflects the needs and aspirations of residents.

These ambitions were the focus of the Council’s Stock Option Appraisal process, which identified the ALMO approach as a mechanism for supporting the housing strategy.

To help us to prepare for the ALMO we have separated our landlord and strategic functions, creating a shadow board with governance, staffing, financial and support arrangements. These important steps will allow for a smooth transition when ALMO status is secured.

We are confident that the rolling programme of stock condition surveys has provided us with an accurate and up to date picture in relation to the state of our stock, which has been externally verified, and that the ALMO approach will achieve the improvement required to the housing stock. We are also confident that our approach to procurement of contractors to undertake repair and improvement work is consistent with best practise. The partnering approach to awarding contracts is providing tangible service improvements as well as value for money. Our existing partners are already committed to training local people through apprenticeships and links with Blackpool and Fylde College to raise skill levels and long-term employment opportunities.

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We have a track record of service improvements, demonstrating real changes on the ground, which we have achieved through a combination of approaches:

• Constantly challenging the way we work • Ensuring our improvement plan is a dynamic document with the suggestions for improvement coming often from staff and our residents. • Regularly benchmarking ourselves using Housemark. • Gaining ISO 9002 accreditation in 2001 • Achieving Investors In People accreditation in 2005 • Winning the Deputy Prime Minister’s Award for Sustainable Communities in 2004 • Winning the Housing Excellence Award in 2005 • Reaching 2 Star status for the Repairs and Maintenance Service in 2004 (the weakest service area in the Best Value Inspection in 2001).

As an ALMO we would build on these achievements

Objectives

• Achieve Decent Homes Standard by 2010 • Increase the focus on housing in Blackpool • Ensure that in setting up a separate organisation the vital strategic and operational links with Council are maintained and developed. • Improve the management and maintenance of the stock • Link the improvements delivered by the ALMO with the Council’s corporate vision to improve the health and well-being of local residents • Above all an ambition to be one the best housing services in terms of service delivery to our customers, but also to be one the best housing organisations to work for.

We are therefore highly confident of achieving a minimum of 2 Stars when our housing service is re-inspected in the summer of 2007.

An ALMO in Blackpool will not only allow us to further improve the management and maintenance of our housing stock but also is a key part of the Regeneration of Blackpool. The Council feels very strongly that the physical improvement brought about by the ALMO should also improve the quality of life, and the health and well-being of our residents.

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Section A ALMO Summary Sheet

1 Local Authority Blackpool Borough Council 2 Name of ALMO (if decided) Blackpool Coastal Housing 3 Will the ALMO manage all or part of All the LA’s stock 4 If only part of the stock, name of the Not applicable area(s) covered 5 If only part of the stock, the % of the Not applicable LA’s total housing stock 6 Number of tenanted properties to 5434 @ 31/12/05 be managed by the ALMO 7 Number of leasehold properties to 399 @ 31/12/05 be managed by the ALMO 8 Total number of properties to be 5833 managed by the ALMO (Q6 + Q7) 9 Number (and %) of properties 638 (12%) @ 31/12/05 currently failing the Decent Homes Standard 10 Date by which all properties would December 2010 meet the Decent Homes Target with ALMO Funding 11 Total ALMO bid (£m) and £66.2m breakdown by year (figures rounded up) 2007-8 £ 16.3m 2008-9 £ 16.4m

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2009-10 £ 16.7m 2010-11 £ 16.8m 12 Average investment per dwelling £11,344 (£Xk) 13 Timing and results of LA BV 2004 Repairs and Maintenance reviews to date Service – Two stars and promising prospects for improvement 2001 Review of Landlord Services – One star and unlikely to improve. 14 Timing of any planned BV reviews The Service is constantly reviewing its delivery plan through its Housing Improvement Team (HIT) approach. Indicative inspection of whole service scheduled for summer 2006. 15 Timing of ALMO inspection June 2007

16 How tenant support has been / will The Council will issue an offer be demonstrated (e.g. ballot/survey document in May 2006 along with and dates) a reply card for tenants to return and show whether they are in agreement with the proposal. Informal consultation has taken place during roadshows and local meetings, discussing the ALMO proposal with tenants and leaseholders attending. Based on this contact with just over 400 tenants and leaseholders an overwhelming majority of 99.5% were in favour of the proposed ALMO. 17 Number of TMOs (if any) and None number of properties covered by each. 18 Brief details of structure if group One ALMO structure or more than one ALMO is proposed (e.g. two ALMOs, four AREA Boards) 19 Expected date of Section 27 July 2006 application 20 Name, address, phone and e-mail David Sanders contact details of lead local [email protected] authority officer 01253 47700 21 Name, address, phone and e-mail Peter Jefferson contact details of lead officer for the [email protected]

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ALMO (if decided) 01253 477900 22 Name and address of the Council’s Steve Weaver Chief Executive Chief Executive Blackpool Borough Council Municipal Buildings Corporation Street Blackpool FY1 1DA 23 Name and address of the Leader of Councillor Roy Fisher the Council Blackpool Borough Council Town Hall Corporation Street Blackpool FY1 1DA 24 Name(s) of local MP(s) and Gordon Marsden MP constituency Blackpool South

Joan Humble MP Blackpool North and Fleetwood

Section B Stock Option Appraisal Summary

The ‘Sustainable Communities Plan’, published in February 2003, placed an obligation on councils to produce a ‘robust’ Option Appraisal for sign-off by the Government by July 2005. All councils must aim to ensure that their homes reach the Decent Homes Standard by 2010 and that tenants are at the heart of the process of exploring and investigating investment options for their homes.

Lead Financial Advisor

In January 2004, the Council appointed the Housing Quality Network as the lead financial advisor during the Stock Option Appraisal process. The main role of the financial advisor was to prepare a “Baseline Position” covering options for the whole stock and the adaptation of the business plan model for the option appraisal purpose.

Stock Condition Survey

In 2001/2 Michael Dyson Associates were commissioned to undertake a stock condition survey of a sample of the Council’s housing stock. The survey was carried out following the ODPM good practice guidance “Collecting, Managing & Using Housing Stock Information”. A schedule of building elements with sub-elements was prepared against the properties inspected, which included a priced schedule of rates and lifecycles for element renewal based on RICS Building Cost Information Service and Industry Standard Lifecycles. The data provided accurate costs across the 30-year profile.

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Since the completion of the survey, a rolling programme to capture information from the rest of the housing stock has been developed with 20% of the stock per year being surveyed. Currently 76% of the stock has been completed. The information captured is consistent with the original stock condition survey and, in February 2006, the Housing Quality Network validated the approach for robustness.

Independent Tenant Advisor

In March 2004, tenant representatives appointed Indigo Training & Consultancy Ltd to act as an ‘Independent Tenants’ Advisor’ to all tenants and to advise and support tenants in their consideration of the options. At that stage none of the options had been developed into proposals and no ‘preferred option’ had been identified.

It was agreed that focusing the consultation through the Council’s existing tenant participation structure, i.e. the Tenants Liaison Forum (TLF), would not meet the requirements of the Option Appraisal Guidance. Tenants required a consultation programme, which would encourage tenants and leaseholders who had not previously been actively involved in consultation to participate in the Option Appraisal.

It was, therefore, agreed to establish the Blackpool Tenants’ Steering Group with a specific remit to investigate the investment options for the housing stock, and which would be open to any tenant or leaseholder to join.

Community Housing Task Force/Decent Homes Specialist

Throughout the process, Council Officers worked closely with a Community Housing Task Force representative and the Government Office for the North West Decent Homes specialist, who were both invited to attend the Option Appraisal Project Group.

Communication and Consultation Strategy, Tenant Empowerment Strategy and Change Management Plan

A Communication and Consultation Strategy, a Tenant Empowerment Strategy and a Change Management Plan were developed with the Blackpool Tenant Steering Group. These detailed how staff and tenants would be involved in shaping the process.

The strategies included tenant and staff awareness-raising roadshows to explain the process, the establishment of the Blackpool Tenant Steering Group, two tenant conferences, and a media strategy. Efforts were made to identify and contact hard to reach and under-represented groups.

Tenants and staff were given information through newsletters and were able to directly contact Council Officers or the Independent Tenant Advisor through a freephone helpline.

Wider Tenant Involvement

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The Tenants’ Conference was an important method of obtaining information from tenants about their priorities for the housing service in the future. A questionnaire survey from the Independent Tenant Advisor was used to identify tenant priorities in relation to the improvement programme, and provide important information for developing the Blackpool Standard.

The Citizen’s Jury

In August 2004, a Citizen’s Jury was convened. The Jury was made up of the tenants who had formed the Blackpool Tenants’ Steering Group and had received in-depth training. The purpose of the event was to identify the Council’s position against the basic Decent Homes Standard and the higher Blackpool Standard developed through tenant consultation. The Citizen’s Jury also put each option ‘on trial’.

The Citizen’s Jury invited four witnesses to give evidence:

• The Lead Financial Consultant

• The Assistant Director for Landlord Services

• A Community Housing Task Force representative on behalf of the Government

• The Leader of the Council

The Lead Financial Consultant confirmed that, in order to achieve a sustainable Decent Homes Standard, i.e. one that maintains the standard in the medium to long term, considerable extra investment would be required over and above the Council’s existing resources.

The Citizen’s Jury considered the need for additional resources to bring properties up to the Decent Homes Standard and maintain the standard over a 30-year business plan cycle in relation to each option available:

Option 1 – Stock Retention The Jury considered this the ‘least change’ option. The Jury recognised that although the retention option may deliver the Decent Homes Standard by 2010, this was not sustainable and would not deliver the Blackpool Standard.

Option 2 - Private Finance Initiative

Jurors expressed concern over the complexity and limited success of this option. Jurors felt that based on the current findings this option did not offer a total stock solution and did not appear to offer significant benefits to any particular area or type of property within Blackpool.

Option 3 – Arms Length Management Organisation

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The Jury agreed that, as it would be a new and independent organisation, an ALMO could offer many benefits, particularly in the area of tenant involvement because of the creation of the ALMO Board. It was recognised that the ALMO option could enable the Council both to ensure its homes achieved the Decent Homes Standard by 2010 and to sustain that level of decency. Option 4 – Large Scale Stock Transfer The Jury decided that this option presented the most certainty in securing the necessary funds both to meet a higher standard than the Decent Homes Standard and maintain homes at this higher standard. They felt that long-term financial security would be achieved through this option.

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The Council’s Position The Council acknowledged the work of the Blackpool Tenant Steering Group but felt that, although the Large Scale Stock Transfer Option would potentially generate additional the capital funding needed for a comprehensive improvement programme, it was itself best placed to deliver sustainable communities.

The Government clarified the position in relation to Blackpool, in that it would likely qualify for significant funding through the ALMO process, something that the Citizens’ Jury had expressed doubts about and which affected their initial judgement about this option.

The clarification from the Government was presented to the Blackpool Tenants’ Steering Group, which reconsidered the ALMO option and agreed with the Council in that it was the option to be explored further.

On the 18 May 2005, the full Council met and agreed that it should pursue the ALMO option, immediately following which the Council formally submitted its Stock Option Appraisal portfolio to the Community Housing Task Force.

Government Sign-Off

The Government Office for the North West responded to the Council’s Stock Option Appraisal on 22 September 2005, signing off the project with the following caveats:

• A new Communication Strategy would be required. (Information about the way that the Council is communicating with tenants and leaseholders in contained within Section K – Tenant and Leaseholder Involvement, and the way the Council is communicating with staff is contained within Section N – Staffing Arrangements) .

• The provision of continued robust stock condition information. (Contained within Section F – Decent Homes Delivery) .

• To develop a new Change Management Strategy ensuring that the Council has enough strategic capacity post ALMO. (Contained within Section H – Division of Functions) .

• ALMO investment strategies are linked to the wider regeneration of the housing market in Blackpool. (Contained within Section C – Strategic Context and Section D – Scheme Outline) .

• The Council has a contingency plan if ALMO funding is unavailable. (The Council would need to revisit the Option Appraisal if the ALMO funding was unavailable).

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Section C Blackpool’s Strategic Context

National Housing Policy

In February 2003, the Government published a programme of action Sustainable Communities: building for the future, which sets out the main national priorities and strategies for housing, linked to developing sustainable communities. The Blackpool Housing strategy fits in with these plans and contributes towards the achievement of national objectives. The links between national priorities and local housing strategies are set out in the table below.

National priorities Blackpool Housing Strategy Increasing the supply of affordable Affordable housing planning policies housing in areas of shortage Housing associations’ redevelopment programme, increasing supply of larger accommodation and replacing poor quality housing Ensuring that housing strategies Housing contribution to Integrated contribute to sustainable Neighbourhood Initiatives communities, particularly at the neighbourhood level Restructuring of the inner area housing market, particularly conversion of HMOs to family housing and encouraging the purchase of private rented properties by owner occupiers Targets for decent homes in the Strategy to meet decent homes social housing sector; and for standard and broader aspirations of vulnerable households in the private tenants; ALMO proposal sector Targeting of grants and loans to vulnerable households in the private sector through the new Housing Renewal Policy Improved private rented sector Major focus for Blackpool conditions and management Tackling areas of low demand for Redevelopment activity to eliminate housing unpopular housing on council estates; action to tackle HMOs with reducing demand Addressing the housing and support Major issue for Blackpool, given the needs of vulnerable households high levels of vulnerable people and transience; strong partnership arrangements Sustainable development and Not relevant for Blackpool – entirely meeting housing needs in rural urban area communities

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Regional Housing Strategy

Blackpool is located in the North West Region for housing strategy purposes. In 2003, the Government established Regional Housing Boards in each of the regions, including a North West Regional Housing Board. The role of these boards is to analyse the housing circumstances in different parts of the region, and to develop a strategy and investment plan to address housing issues consistent with the national plan. This approach recognizes that housing markets differ between and within regions, and that a coherent approach to improving housing circumstances is best pursued at a regional level.

The initial North West Regional Housing Strategy was published in July 2003. Blackpool Borough Council contributed to the consultations on the draft Strategy and worked at the sub-regional level with other local authorities in the Lancashire West Housing Group. The North West Regional Housing Strategy sets out a number of key issues and objectives. Three overarching themes are established, which local authorities are expected to address in their strategies:

• Housing and community cohesion – to address housing needs and aspirations in such a way as to promote integrated communities across social, racial and faith divides • Housing and neighbourhood renewal – to ensure that housing contributes to achieving the goals of the National Strategy for Neighbourhood Renewal • Sustainability, quality and design – investment should support sustainable development and high quality design

The key priorities for strategic intervention and investment set out in the Regional Housing strategy are:

• Urban renaissance and dealing with changing housing markets – to maximize the positive impact of market renewal pathfinders; to develop further strategies to prevent market failure in areas at risk of low demand, including in the region’s coastal towns – Blackpool is included as one of the investment priorities in this category • Providing affordable homes to maintain balanced communities – to tackle the shortages of affordable housing in areas of the North West where demand is high • Delivering decent homes in thriving neighbourhoods - improving the condition of housing stock with a sustainable future, linked to broadly based regeneration strategies; and focusing on areas of concentrated unfitness and disrepair • Meeting the region’s need for specialist and supported housing – ensure a range of specialist and supported housing is available, according to local circumstances, and integrated with relevant support services

Alignment between regional and Blackpool housing strategies is set out in the table below.

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Regional priorities Blackpool Housing Strategy Urban renaissance and dealing with Considerable focus on renewing the changing housing markets housing market in inner areas to broaden the housing market Major housing implications of the Blackpool Masterplan Providing affordable homes to Affordable housing and other maintain balanced communities planning policies to improve housing mix and promote balanced communities Delivering decent homes in thriving Decent homes targets, linked to neighbourhoods neighbourhood strategies in both public housing and private housing areas Meeting the region’s need for Major focus for Blackpool specialist and supported housing

Housing And The Council’s Corporate Strategy

The Council gives considerable emphasis to strong corporate support to housing objectives. It recognizes that having a healthy housing market, with decent housing conditions, and accessible to the whole community, is crucial to the well being of Blackpool residents and to the future vitality of the area.

Responsibility within the Council for developing and delivering the Housing Strategy is through an interdepartmental Housing Strategy Group, with representatives from Housing, Social Services, Planning and Transportation, Environmental Health, Business Services (Finance), Legal and Democratic Services, and from the Blackpool Primary Care Trust.

The Council’s Corporate Plan is built around three corporate goals:

1. The New Blackpool – seeking to deliver a step change in the Blackpool product and ensure the provision of a quality, attractive, multi-purpose and all-year resort 2. Quality services – involving a commitment to improving service provision and recognizing the need to make all services more accessible 3. Community involvement – seeking to consult, engage and inform all sections of the community, including tackling transience and hard-to-reach groups, and increase the capacity of the local community to influence policies.

Blackpool Coastal Housing’s Contribution To The Corporate Strategy

• Blackpool Coastal Housing will work to support the Council in achieving its corporate aims, whilst being mindful that the focus of its operations will be to comply with the Management Agreement and achieve the Delivery Plan. Blackpool Coastal Housing will agree with the Council how it can

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contribute, and below are examples of practical support that may be offered. Precise details of support will be agreed on an ongoing basis through the Delivery Planning process and will maximise the synergy between the contribution Blackpool Coastal Housing makes to wider strategic goals and its core landlord functions. The Council is considering an arrangement whereby Blackpool Coastal Housing will manage Houses in Multiple Occupation placed under management orders by Environmental Services as part of selective licensing.

• Blackpool Coastal Housing will be a major player in achieving the Council’s goal of making Blackpool “a great place to visit and a better place to live” by providing a high standard of housing in a well maintained environment.

• Blackpool Coastal Housing may have a key role to play in working with colleagues in Environmental Services when they are addressing issues of poor quality private sector housing. This could take many forms, including holding some properties vacant to allow for decants from the private sector in demolition or improvement schemes, and providing more furnished tenancies to help people on low incomes move out of poor quality furnished private lets.

• Blackpool Coastal Housing will consider extending a repairs service to the private sector.

Blackpool Community Plan

The Blackpool Community Plan has been created as the vehicle to join up action across organisations and involve everyone in delivering a better quality of life for all Blackpool residents. The Blackpool Local Strategic Partnership combines the expertise of local public, private and voluntary sectors with the specific aim of working together to achieve the goals in the Community Plan.

By 2020, we want all residents of Blackpool to benefit from: • Quality education and training • Healthy lives • Safer communities • Quality homes in green and clean residential areas • Strong and vibrant communities • A prosperous town

Neighbourhood Renewal

Some neighbourhoods in Blackpool experience high levels of deprivation, some of which is linked to the type of housing in those areas, and to relatively high levels of transience. A Neighbourhood Renewal Strategy has been adopted to address the issues of deprivation in a number of priority neighbourhoods. This Strategy is in turn linked to the Council’s Integrated Neighbourhood Initiatives, which are being developed further in the Local Area Agreement process.

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Neighbourhood Action Plans and neighbourhood management initiatives are being developed for the three areas of greatest deprivation. It is important to support the regeneration of these target neighbourhoods through the Housing Strategy. This ensures that actions are proposed and resources are targeted in a coherent way to neighbourhoods to support improvements in housing stock, housing choice and housing management.

Section D Scheme Outline

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Blackpool Coastal Housing will manage the whole of the Council’s housing stock, currently comprising 5434 rented properties and 399 leasehold flats. Within the housing stock, there are currently 20 sheltered schemes, which cover 806 homes, although consideration will be given to the longer-term investment needs implied by Supporting People to ensure the best use of the housing stock to meet the needs of tenants. The company will also manage 475 garages, provide the management of the Council’s Emergency Housing Units and the Council owned Travellers’ site.

Due to the size of the portfolio that Blackpool Coastal Housing will manage, there are no plans to develop a group structure for the ALMO or Area Boards.

A map detailing the location of the housing stock is attached at Appendix One.

Blackpool Borough Council has developed a robust tenant involvement structure. This has been achieved through the groups affiliated to the Tenant Liaison Forum, and built in a way that tenant activists outside the areas covered by tenants associations can become involved within the affiliated structure. The Tenant Liaison Forum has recently revised the Tenant Compact and Customer Involvement Strategies. These will provide a stronger basis on which the company can develop customer involvement further.

Blackpool Coastal Housing will be a company limited by guarantee, with Blackpool Borough Council as sole shareholder. Blackpool Borough Council has adapted the model template documents as the agreement between the Council and the company.

Key Highlights Of Issues Facing The Housing Service, Setting Out What We Have Achieved And What Still Needs To Be Done

Issues Action To Address Future Work Requ ired Issues and Outcomes

Winnipeg estate, in the Partnership work with All work now completed popular area of Bispham local residents and a and the estate is very suffered from ASB local RSL. A scheme popular. The RSL now caused by youths was developed to owns and manages the congregating under demolish the worst of estate. deck access the housing and replace accommodation. The it with high quality family area was noted for its homes, using a ‘rat-runs’ making it “secured by design” difficult for it to be approach. A small- policed. The estate had scale stock transfer of become impossible to the remaining stock to let to tenants who the RSL to enable it to wanted to sustain their undertake tenancies.

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Paradoxically there was refurbishment. an established tenant population within some blocks.

The Grange Park estate The Council has co- There are still pockets of is the largest Council ordinated its approach housing stock with estate in the town. It to dealing with the proposals to demolish, has very high levels of estate. Housing, and work continues with deprivation. The estate education and social partner RSLs to develop had a high proportion of services along with the new housing schemes, bedsit accommodation police, fire service, including the which was unpopular Home Start and Sure replacement of shops and attracted ASB. Start have all come on two sites, and linking There was a lack of together to achieve this work into youth and family type success. The estate leisure facilities on the accommodation and won the Deputy Prime estate. accommodation for Minister’s Award for those with mobility Sustainable The bulk of work, problems. Communities in 2004. however, is now In addition to the non- focused on housing activities on the refurbishment of the estate, the Council has remaining housing stock kick-started a housing to ensure that it meets regeneration. This the needs of the involved making community. This work strategic decisions requires ensuring about which stock had comprehensive decent no future, and which homes delivery, could be turned around partnership work with into successfully let the Groundwork Trust to accommodation. develop environmental Initially the focus of the improvements along regeneration involved with reviewing lettings demolishing flat and and marketing polices. bedsit accommodation across the estate and replacing this with modern family homes or bungalows, plus shops with new state of the art accommodation at one site.

The Queens Park area The Queens Park area Work has started to re- is where the Council’s is currently on the up, clad the buildings to

Version 6 19 ALMO Draft Bid five tower blocks are with major investment provide wind and water situated. Over the on the buildings and protection as well as years, the area has multi-agency working. improving their aesthetic spiralled into decline The estate was a appearance. Other due to the unstable national pilot for the work to achieve the nature of the tenants police Re-Assurance decent homes standard housed on the site. project, bringing is also required in Crime, drug and alcohol together many agencies relation to replacement use, and difficult to let to highlight, prioritise heating systems and the accommodation has and respond to the upgrading of bathrooms been commonplace on concerns of the and kitchens. the estate. community. The housing service was a Further work is required key player in the to review the lettings success achieved policies on site and through the pilot, which ensure that the site is is being rolled out marketed to the right nationwide. applicants, thus ensuring its future In relation to investment sustainability. that the Council has put into the Community at Strategic decisions Queens Park, the site about the low-rise has benefited from new accommodation on the lifts within all buildings, site will need to be new entrance doors, a taken in the future. new electronic concierge system and new cameras. The Council also provides security patrols funded through a new service charge that provides re- assurance to residents.

In the Bispham area of Multi-agency work is Much work is required to the town, much of the ongoing within the complete the investment Council’s Bispham area, within the Bispham area accommodation is particularly in relation to as kitchen and pepper-potted on small providing family support bathrooms components estates. Whilst there through a network of are at the end of their are issues of deprivation children’s centres. lifecycle. within the estates, they Other work to secure tend to be contained new shops and a The area lacks parking within much larger children’s play area facilities and wards and therefore the have been successful in environmental deprivation indices are the Kincraig area. improvements to diluted. provide such facilities

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Accommodation within The Council have are required. Bispham tends to be of commenced investing in reasonable quality physical improvements, although there is a high particularly replacing the proportion of warm air old heating systems heating systems and poor kitchen and bathroom facilities.

The Mereside estate is Multi-agency work at The focus at Mereside is the Council’s second Mereside is well also shifting to largest estate and established. There are improving the Council’s suffers some excellent working remaining housing deprivation, although relationships with the stock, which will be due to the location of police and education sustainable providing it commercial activities and social services work meets the Decent within the area, the on the estate is Homes Standard. estate is saved from the conducted through the Properties will require worst deprivation. local primary school and new heating systems, There is a mixture of Sure Start centre. A new windows, new different new health centre is kitchens and bathrooms. accommodation types situated in the heart of on the estate but an the estate incorporating The estate also requires undersupply of family a Citizens’ Advice considerable accommodation. Bureaux. environmental investment to provide A strategic approach to parking facilities. the future of the housing stock has similarly been taken at Mereside. There is new build large family accommodation on old garage / vacant land by partner RSLs. A scheme is currently underway to demolish a row of shops with poor accommodation above, and replace with new shops, new family houses and new flats on a mixed tenure basis.

The St John’s estate is The estate has had Future work on the close to the town centre. major problems with estate will centre around The estate suffers from water penetration continuing to achieve some deprivation and through the brickwork the Decent Homes there is a lack of on the houses, but this Standard through the services available for in the main has been replacement of

Version 6 21 ALMO Draft Bid young families. The addressed with new components such as properties here are cladding, which has also new kitchens and mainly houses although improved the aesthetics bathrooms, and the re- some houses have in of the estate. Work has conversion of flats back the past been converted also been done to into houses, as it is into flats. improve the insulation of family accommodation the properties and that is in short supply. replace windows. This has dramatically increased SAP ratings.

Section E ALMO Funding Required

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Blackpool Borough Council’s housing stock requires investment in a number of areas to ensure we achieve sustainable Decent Homes. Our priorities and commitment to achieving them are around kitchens, bathrooms, heating and insulation, rewiring and replacement windows.

Our financial modelling allows both for the programme of works to meet the Decent Homes Standard by 2010 and the longer-term cycle of planned maintenance and replacement of components to sustain that standard over 30 years, based on stock condition data and annual programmes of investment.

In the period up to 2010 our expenditure will concentrate on ensuring the housing stock meets a sustainable Decent Homes standard

There is a gap of £66.2 m between the resources available and the estimated cost of meeting a sustainable Decent Homes Standard as illustrated in the table below: £000’s Total investment to a sustainable Decent Homes Standard 80,281 Resources available to the council 14,110 Investment Gap 66,171

Profile of Planned Expenditure

We are seeking funding for both sustainable decent homes and associated environmental improvements, which are seen as making an important contribution to the provision of decent homes by supporting that investment and ensuring our communities have a sustainable future.

Total Decent Homes Expenditure Profile 2007/08 to 2010/11

Additional Total ALMO Existing Decent Properties Decent Environmental Resources Homes with Non Year Homes Works £000’s Investment Decent Funding £000’s £000’s Elements £000’s

2007/08 3,422 15,550 818 19,790 4184 2008/09 3,480 15,512 816 19,808 3156 2009/10 3,540 15,755 831 20,126 2122 2010/11 3,668 16,045 844 20,557 1072 Total 14,110 62,862 3,309 80,281 0

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The Basis For Our Costings

In developing the proposals for the delivery of decent homes through the ALMO, we have used a number of, strategies, plans and techniques.

The stock condition data from our surveys provides us with a high degree of confidence in the scope and nature of the works required both to meet a sustainable Decent Homes Standard and to maintain the homes over the next 30 years.

Housing Quality Network has externally validated our assumptions about the cost and lifecycles of components. These have been adjusted where necessary to reflect local conditions and knowledge.

Blackpool Coastal Housing will seek to maximise the contribution other partners can make to improving the housing stock and ensure we obtain value for money in achieving sustainable decent homes.

Blackpool Coastal Housing will proactively seek out any available additional funding were appropriate to supplement the planned expenditure. We have used the most up to date information available to us at this time.

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Section F Decent Homes Delivery

Blackpool Borough Council has been working on meeting the Decent Homes Standard for the last three years and at the same time has developed a "Planned Maintenance At A Glance" booklet. This illustrates both our commitment and provisional plans to undertake work to each home, together with an outline of the kinds of work and the priorities that have informed the plan. Since 2003, this focus has enabled a continuous reduction in the level of non-decency as illustrated within the table below:

Annual Reduction In Levels Of Non -Decent Elements June 2003 5284 April 2004 4544 April 2005 4362 April 2006 4242

The table below summarises how the gap in funding will affect Blackpool Coastal Housing's ability to achieve sustainable decent homes by 2010

Reduction In Number Of Properties with Non -Decent Elements Year Existing Resources Additional ALMO Funding 2006/07 4184 4184 2007/08 3981 3156 2008/09 3775 2122 2009/10 3563 1072 2010/11 3343 0

The approach we have adopted recognises the need to focus programmes on achieving the Decent Homes Standard whilst acknowledging the need for wider sustainable investment.

The current analysis of stock condition is advanced and linked to an Asset Management database. Consultant surveyors Michael Dyson Associates carried out the original stock condition survey in 2001 based on a 10 % internal and external sample. We have successfully built upon the data recorded from our 2001 Stock Condition Survey with the implementation of Integrator Software and handheld survey technology to manage the development of investment programmes in the future. This is supported by regular updating following schemes of major improvements.

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Annual stock condition surveys of 20% of the housing stock have led to us having robust and up to date information on 76% of the stock in terms of both internal and external condition. This has provided an estimate of short, medium and long-term maintenance needs and costs for the entire stock over a thirty-year period. It gives the level of investment specifically required to meet the Government’s Decent Homes Standard and also addresses the key aspirations of the Council’s tenants. We have developed a strategic approach to delivering Decent Homes. Supporting this robust stock information is an Asset Management Strategy that draws together plans for managing housing related assets.

The Asset Management Strategy informs the strategic framework within which decisions on investment, dis-investment or divestment can be made and takes account of information on environmental and economic factors as well as emerging patterns of housing need.

The table below shows the type and number of non-decent building components currently identified by the stock condition survey as needing to be replaced in order to meet the Decent Homes Standard by 2010. Non -Decent Building Components In Need Of Replacement Component Number Proportion of Stock External Doors 2635 48% Heating (Gas) 2021 37% Heating (Storage) 579 11% Windows 2029 37% Bathrooms 3076 56% Kitchens 3111 57% Electrical Up-grade 4740 87% Loft Insulation top-up 2189 40% Roof Covering 521 9% Chimneys 261 5% Structural 249 5%

Investment & Procurement

The Council’s housing stock needs significant investment up to 2010 in order to meet a sustainable Decent Homes Standard. Two thirds of the Council’s housing stock are flats and therefore require a higher than average investment profile.

Blackpool Coastal Housing and its contractors will manage the volume of work to ensure that industry capacity is maximised. The planned investment programme to meet Decent Homes is illustrated below:

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Funding Sought

16,900 16,889

16,800

16,700

16,600 16,586 £000's 16,500 16,400 16,368 16,328 16,300 16,200 16,100 16,000

2007/08 2008/09 2009/10 2010/11

We are committed to providing a customer focused service where our tenants are involved. Established arenas are in place where tenants are able to play a significant role in the pre-planning and performance monitoring of all our improvement schemes Procurement and Delivery

Blackpool Coastal Housing will move away from traditional forms of contract procurement as part of the process of modernisation. Partnering arrangements with suppliers and contractors already deliver over 80% of improvement works following Egan principles. We have established and developed an innovative and complete approach to partnering based on the whole supply and delivery chain. With so many contracts now on a partnering basis we are reaping the rewards in reduced unit costs, for example we are now benefiting from reduced boiler prices and extended warranties We aim to increase our partnering approach to 100% of our contracts when the ALMO is established, but will constantly monitor and evaluate these contracts to ensure we receive continued value for money. Our bid however, does not contain allowance for inflation over and above normal headline Retail Price Index.

Partners are drawn from a mix of national suppliers as well as small and medium enterprises. This successful approach which is demonstrated by the delivery of capital programmes on time and within budget can be expanded to ensure we are in a position to deliver substantially increased packages of work through to 2010.

This approach confirms our commitment to stimulating the construction market, encouraging the development of long-term arrangements with partner organisations, promoting competition and creating local employment opportunities.

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Whilst we are confident that we will achieve the 2010 decent homes target, we would be happy to re-profile the bid in the light of forthcoming ODPM guidance.

Creating Capacity

Blackpool Coastal Housing is taking a realistic approach to ensure structures are in place to deliver the four-year investment programme. Staffing levels have been reviewed through business process re-engineering exercises to ensure that the most effective and efficient means of project management is in place. These changes will ensure we are operational for Blackpool Coastal Housing’s go live date so that as soon as ALMO funding is available we will be fully prepared to commence the expanded schemes.

There are successful partnerships in place with key contractors and suppliers. Discussions are continuing in respect of raising awareness and increasing contractor capacity. It is intended these negotiations will prepare the way for swift contract negotiations that focus on service delivery and efficiency following Gershon principles. . In addition, over the next few years, we anticipate that there will be spare capacity within the building industry in and around Blackpool as builders begin to increase their long-term capacity to achieve the needs of the Masterplan.

Contractors have been chosen for their excellent track record, particularly their customer focus and the clear culture of partnering they share, thus making them ideal partners to deliver our Decent Homes targets.

Value for Money

Blackpool Coastal Housing will build on and further develop its experience in repair and improvement through the strengthening of its partnering arrangements to ensure we obtain value for money

We will work with our partners ensuring we adopt streamlined processes and introduce innovations in the supply and assembly of works along with providing a commitment to continuity, in order to achieve unit savings. Blackpool Coastal Housing will re-invest savings, arising from this approach to sound procurement, back into providing better standards for our tenants.

Building Costs Model (BCM)

Appendix Two of this bid is a completed copy of the ODPM's Building Cost Model spreadsheet, which reflects detailed investment planning and stock condition information.

Deliverability

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We are confident with the current partnerships we have developed, as described within this section, our contractors will be able to gear up to the demands of the improvement programme that the additional funding will place, whilst ensuring through our partnering supply chains that we can provide value for money.

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Section G Sustainability

The core objective of the ALMO bid is to create successful neighbourhoods where people choose to live and work. We want to see a range of good quality and aspirational housing, in appealing environments where people feel safe and connected and where local services are geared towards local priorities. The investment into the physical improvement programme helps to achieve the core objective, but Blackpool Coastal Housing would also want to ensure that its contractors provide work for local people, including apprenticeships.

Based on in-depth statistical analysis over a range of deprivation indicators, several neighbourhoods in both public and private sector housing areas have been identified as requiring focussed attention to break the cycle of extreme disadvantage and to stabilise “churning” populations to create sustainable communities. There is a need to reduce the numbers of established households leaving the neighbourhoods for negative reasons, which is undermining attempts to strengthen and develop them.

Out-migration patterns analysed in the Housing Needs Survey (HNS) 2004 suggest a loss of higher income households, most of whom are leaving for negative reasons, creating a constant negative impact on strategies for regeneration and improvement in the quality of the Borough as a place to live. The reasons given for leaving Blackpool (most often to neighbouring boroughs) are:

• Poor quality neighbourhood (53%) • Anti-social/neighbour problems (37%) • Safety/fear of crime (35%) • For better shops/leisure (30%) • Lack of high quality housing (16%)

The report indicated that these levels of concern about social and environmental quality issues are extremely high, even when set against other surveys of major urban locations with significant deprivation and regeneration problems. In order to build safer and stronger communities, we need to reduce the numbers of people wishing to leave for these negative reasons, by matching service delivery to the priorities raised by the communities.

Section D identifies the key issues in relation to the Council’s housing stock and the work required to ensure future sustainability.

Approximately two thirds of the Council’s housing stock is made up of flats. The strategic direction of the housing service has been to identify accommodation that has a future with investment, and then identify the unsustainable accommodation, mainly deck access bedsits, and other land sites such as old garage sites, and replace with much needed family accommodation.

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The Council is confident that the majority of the most unpopular and unsustainable housing stock has been dealt with through ambitious and innovative regeneration programmes in partnership with the local Registered Social Landlords. However, there is still a considerable amount of work to do to ensure that the existing stock is sustained and does not fall into decline.

The Council has clearly identified the issues affecting the housing market within Blackpool and in particular on the Council’s housing estates, where multi-agency approaches to tackling deprivation have been developed along with a successful holistic Neighbourhood Management approach. An example of the success the Council has been able to demonstrate in relation to ensuring sustainability is the work undertaken on the Grange Park estate, which won the Deputy Prime Minister’s Award for Sustainable Communities in 2004 and the Housing Excellence Award in 2005.

Key issues in relation to achieving the Decent Homes Standard across the remaining housing stock are to:

• Continue with the replacement of inadequate heating systems • Continue with insulation programmes • Continue with window replacement programmes • Continue with the replacement of kitchens and bathrooms

In addition to this investment in the dwellings themselves, there is a need to invest in their environment. The Blackpool Tenant Steering Group, when considering this issue during the Option Appraisal phase, clearly identified the lack of parking facilities across most estates as a big issue. Many of the estates were built at a time when cars were not so prevalent on our roads as they are today. The lack of parking availability causes many complaints and can be potentially dangerous for pedestrians and other road users. It is therefore envisaged that much of the funding required for environmental improvements will help to create parking facilities.

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Section H Division of Functions

Blackpool Borough Council split its landlord and strategic housing functions following the creation of the unitary authority in 1998.

The Council have been reviewing the strategic and retained housing services structure and have developed a new structure to ensure regeneration and revitalisation of all housing sectors within the town that fits strategically with the economic regeneration being developed through the ‘Masterplan’.

The division of functions follows the guidance issued by the ODPM “Guidance on Arms Length Management of Local Authority Housing” issued in October 2004.

The Council will retain its strategic and enabling role along with responsibility for housing advice, homelessness (but not the provision of emergency housing accommodation), private sector housing and the management of the housing register. Blackpool Coastal Housing will manage the Council’s housing stock, the investment programme, the repairs and housing management functions, the Emergency Housing accommodation and a travellers' site.

Broadly, the division of responsibilities will be as follows:

ALMO and Council Functions

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Council Blackpool Coastal Housing Agreeing all housing policy Operational stock investment decisions to achieve Decent Homes delivery Agreeing the overall housing strategy Managing the programme of investment Identifying the need for housing Procuring services and partners to investment across sectors meet investment programmes Homelessness / Housing Advice Promoting tenant participation responsibilities Agreeing the Housing Revenue Providing estate management Account Business Plan services including cleaning Delivering strategic housing services Providing sheltered housing services Delivering services to the private Rent accounting, collection and sector arrears recovery services. Ensuring tenant involvement in policy Leasehold management and strategy Housing Benefit administration Enforcement of tenancy conditions including the management of anti- social behaviour policy Managing Supporting People strategy Managing lettings and voids including the Choice Based Lettings Service (HomeStop) Managing the Community Safety and Ensuring that the delivery plan is Anti-social behaviour Strategies achieved and providing appropriate feedback to the Council Agreeing the annual delivery plan and Undertaking stock condition surveys service standards with Blackpool Coastal Housing Housing register administration Provision of the Emergency Housing including allocations policy Service Housing needs surveys and housing Management of the Travellers site market assessments Home Energy Conservation Act Contribution to supporting the across all tenures and energy strategic objectives of the Council in efficiency in the private sector providing mixed communities HRA Business Plan ALMO Business planning Capital investment programme General housing advice management, commissioning and project management Private sector housing development Responsive and programmed repairs and regulation Housing association development Meeting energy efficiency targets and liaison Rent and service charge policy and Public sector housing advice setting Empty property management, Private sector empty homes allocations and tenancy sign up

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ALMO financial management Owner occupation strategy and including day to day management of affordable homes the HRA Right to Buy policy, valuations and Resident involvement convincing Bidding for capital resources Consultation on ALMO matters

Monitoring and auditing of the ALMO Management of garages

Internal performance monitoring and

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Section I Improving Service Delivery

Staff within the housing service have already demonstrated that they are ready to make service improvements and recent successes include:

• Investors In People Accreditation achieved in December 2005 • Winning the Housing Excellence Award in 2005 • Involvement in winning the Deputy Prime Minister’s Award for Sustainable Communities in 2004 • Being awarded a 2 Star Best Value rating and Promising Prospects For Improvement for the Repairs and Maintenance Service in 2004

The housing service has used a variety of methods to develop new services, including:

• Tenant involvement through the Tenant Liaison Forum, local tenant associations and a variety of tenant surveys.

• A network of Housing Improvement Teams (HITs) allows a bottom up approach, involving both staff and tenants, to identification of areas for improvement and development of Action Plans that feed into the Housing Revenue Account Business Plan.

• Process re-engineering using “systems thinking” methodology focussing on specific service areas from a customer perspective.

The methods adopted by the housing service to involve staff at all levels in shaping the service, the successes achieved and the recognition given to individuals for their good work, have all helped to develop a highly motivated workforce keen to embrace further service improvements. This was highlighted by the recent Investors in People accreditation inspection with the following statement in the assessment report:

“In an overall context, there were several strengths, notably strong perceived commitment to people development, a philosophy of continuous improvement, sophisticated planning processes and provision of an extensive range of management development opportunities. It was also evident that conditions of employment and regular conveyance of recognition had resulted in a high index of employee satisfaction.” John O’Sullivan, Centre for Assessment and Recognition (NW) Ltd North West Quality Centre November 2005

The housing service has demonstrated that it is a vibrant, emergent service ready to take forward the ALMO proposal. The methods used successfully by the housing service will be introduced to the new service areas being assimilated into the ALMO to ensure that service improvements continue and are embraced by all staff.

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The purpose of setting up an ALMO is not only to provide investment for physical improvements to the Council’s housing stock, but also to allow the service flexibilities that will provide further service improvement. The housing service has already undertaken reviews of some services it provides, and undertaken process mapping during the ISO 9002 procedure development process. A full process re-engineering of the repairs and maintenance processes has been completed, which contributed to achieving a two star Best Value score, although further changes may need to be made prior to the ALMO set up.

Other reviews will be continued and speeded up to ensure that the services provided by the ALMO are further improved prior to the Best Value inspection scheduled for the summer of 2007.

Blackpool Coastal Housing is confident that it will build on the successes that have already been achieved by the Council’s housing service. The staff who will transfer to the ALMO make up a highly motivated workforce, embracing improved work practices. They are keen to deliver services through Blackpool Coastal Housing, as this will provide further investment opportunities to improve homes and communities.

Blackpool Coastal Housing is keen to demonstrate that the services it will provide are not only of high quality but are highly efficient. It will, therefore, adopt a Value for Money strategy across all service areas, being especially mindful that inflation in the construction industry is likely to grow at a faster rate than inflation in the economy generally.

Key Milestones

The housing service has developed a time-line to prepare for further service improvement before the planned Best Value inspection following the establishment of Blackpool Coastal Housing . The service will adopt a variety of tried and tested approaches to delivering improved services.

• The housing service has recently taken over the management of the Sheltered Housing Service. This service has been re-structured and is undergoing change to address the findings of the Supporting People inspection that took place in November/December 2005. The improvement plan identified through this process will feed into the overall housing improvement plan to inform the improvements needed for the Best Value inspection.

• The Housing Improvement Teams (HIT’s) are continuing to operate, involving staff from all aspects and levels of the service, as well as customers, in looking at specific service areas and incorporating the Key Lines of Enquiry (KLOEs), against which the Audit Commission measure service performance. A cross cutting theme of the Housing Improvement Teams is to ensure that services are provided efficiently and give value for money for tenants and leaseholders. A plenary session for all HIT’s was

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held in January 2006 to review progress and ensure that improvements continue to be made.

• An analysis of the voids and lettings service using a “systems thinking” approach to eliminating waste during the winter of 2005/6. This approach was successfully used to improve the repairs and maintenance service before the Best Value inspection of the service in 2004. The purpose of such an approach is to cut down on duplication and increase integration of service delivery, with an emphasis on the experience of the service user and ensuring that the service is efficient and provides value for money.

• A review of the way that housing services are provided at the front line, involving front line staff themselves, has been undertaken during the autumn/winter of 2005/6, and a new structure will be implemented by April 2006.

• An assessment of the full service using an adapted European Foundation for Quality Management (EFQM) approach, involving staff and customers to analyse the service in early summer of 2006. The service has been subjected to this process on two previous occasions, which have helped to develop an improvement plan and deliver improvements now in place.

• An indicative inspection of the whole service has been organised to take place during the summer of 2006 by a leading consultancy organisation. The housing service subjected itself to a similar exercise before the Best Value inspection of the repairs and maintenance service, which provided useful feedback before the formal inspection.

• The integration of the Operational Services Department day-to-day housing repairs and void functions and Technical Services routine functions, which will then be transferred to the ALMO. The purpose of this is to cut down on the duplication of administrative and management functions, which will provide increased value for money for tenants and leaseholders.

• Running through all the above approaches to improvement will be continuous improvements that will come about from reviewing systems and processes that are requirements of maintaining our ISO9002 and Investors in People accreditations.

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Section J Best Value Reviews

Previous inspections

Blackpool Borough Council’s Housing Service was first subjected to a Best Value Review during 2000/01, with an inspection of the whole service completed in the autumn of 2001. The Housing Service was in its early stages of transformation and had no track record in relation to service improvement. The Service at this time was awarded One Star (Fair Service) with the inspectors also assessing that the service was unlikely to improve.

The Audit Commission Inspectors indicated that the poorest part of the Housing Service at that time was the Repairs and Maintenance service. The Audit Commission scheduled a specific inspection of the Repairs and Maintenance service for the summer of 2004, giving time for the service to develop an improvement plan building on the recommendations from the inspection report.

The Best Value inspection of the Repairs and Maintenance Service took place in the summer of 2004, and the service was awarded Two Stars with Promising Prospects for Improvement.

Planning for Service Improvement

The next inspection of the full housing service has been scheduled for the summer of 2007, after Blackpool Coastal Housing has been set up.

Section I above gives details about the different methods being adopted to improve services and prepare for Best Value inspections.

The most successful method adopted for service improvement and involving staff and residents in that process has been the Housing Improvement Teams. Each team looks at a particular service area. An action plan is developed for each area based on previous inspection recommendations, the EFQM assessment areas for improvement, good practice from other organisations and the Key Lines of Enquiry. A cross section of staff from senior managers to front line staff work through the action plan, putting actions into place to improve the service. Where necessary ISO 9002 procedures are re-written to make way for the change.

The Action Plans of each Housing Improvement Team are then combined to create the Action and Improvement Plan within the Housing Revenue Account Business Plan

Involving a cross section of staff within each team ensures that there is buy-in to the changes and improvements from all staff, giving them a feeling of value and providing an understanding of the business planning process.

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The overall process of Housing Improvement Team co-ordination is undertaken by the New Business and Improvement Manager who ensures that all KLOEs and new initiatives are included and action plans monitored for progress.

Senior staff within the housing service have also worked closely with the Audit Commission inspectors, discussing service improvements undertaken and areas of priority that the inspectors will focus on. The Audit Commission will be invited to undertake desktop audits before the formal inspection to highlight any other areas of weakness where improvements could be made.

Approximately one year before the formal inspection of the housing service (scheduled for the summer of 2007), a leading consultant with experience in the area will be invited to undertake an indicative inspection of the housing service. This will highlight areas for further service improvement and give an opportunity for those improvements to be put in place before the formal inspection.

Achievements Following Previous Inspections

The following areas of service improvement demonstrate how the service has improved and responded to the challenges faced:

• Development of asset strategies and identification of unsustainable properties leading to regeneration of areas. • Gas servicing good practice • Multi-skilling of trades people to deal with repairs at a one off appointment • Repairs appointments • Text messaging to remind tenants of repair appointments • Completing more repairs within priority times • Repairs hotline to more accurately diagnose repair faults • Improved arrears recovery • Reducing the number of void properties • Undertaking regeneration projects with partner RSLs • Multi-agency approaches to dealing with anti-social behaviour and increased success of remedies taken to resolve instances of ASB • Increased office opening times • Development of a property shop and choice based lettings processes • Achievement of ISO9002 accreditation • Achievement of Investors In People accreditation • Longer opening hours of area offices • Co-location of Housing Benefits staff in the housing offices • Working with Housing Benefits on benefit take up campaigns

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Section K Tenant and Leaseholder Involvement

Blackpool Borough Council has been keen to involve tenants and leaseholders in decision-making processes.

A network of affiliated tenant and resident associations operates throughout the town, which feed into the overarching Tenant Liaison Forum.

In an effort to attract newcomers to the decision-making processes a new group, the Blackpool Tenant Steering Group, was developed with a specific remit to work with the Council to undertake the Stock Option Appraisal. This group undertook an in-depth training and information programme, which included site visits to other organisations and culminated in a Citizen’s Jury to put each option “on trial”.

In developing the ALMO proposal, the Tenant Liaison Forum and the Blackpool Tenant Steering Group have combined with new members to create the Tenant ALMO Group (TAG). The TAG has undergone further in- depth training specific to the issues of ALMOs, has developed a method for recruiting tenant board members and has reviewed the Service Level Agreements between the Council and Blackpool Coastal Housing .

The Tenant Liaison Forum has also recently reviewed its structure to ensure that it is more inclusive of all tenants and leaseholders. There are currently seven tenant and resident associations affiliated to the Tenant Liaison Forum. A Tenant Panel has also been established, which allows tenants who are not part of an affiliated tenant and resident association to join and be represented at the Tenant Liaison Forum.

The Tenant Liaison Forum has also reviewed and improved its constitution and the criteria for becoming affiliated, thus ensuring good practice. In addition, the Tenant Liaison Forum has reviewed and updated the Tenant Compact and the Customer Involvement Strategy.

TPAS has been invited to comment on the Tenant Compact and the Customer Involvement Strategy and have validated both documents, confirming that they conform to best practice.

During both the Stock Option Appraisal process and when developing the ALMO proposal, specific tenant and leaseholder engagement was necessary. A small project team was developed under the brand ‘Time to Choose’ to give both processes a high profile. A range of methods were adopted to promote the processes, including bus advertisements, advertising on repair vans, letterheads, envelopes etc.

Programmes of road shows to engage with tenants at local level have proved very popular in discussing the issues around investment options and the

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ALMO proposal. Regular newsletters have also been used to make contact with the wider tenant body. A mobile Improvement Centre, towed to a number of sites on the estates, has been able to demonstrate to tenants the likely improvements they would see to their bathrooms and kitchens if the ALMO proposal were to receive Government support. At the same time informal feedback on the proposal has been obtained from those residents attending the roadshows or visiting the Improvement Centre

An offer document has been produced for tenants and leaseholders, detailing the likely improvements that could be achieved if the ALMO were to receive additional funding to invest in the Council housing stock. All tenants and leaseholders will be given the opportunity to provide their view on the ALMO proposal once the Government indicates the likely level of financial support it could offer.

The informal feedback obtained from tenants and leaseholders during the local meetings and improvement centre consultation suggested overwhelming support for the establishment of an ALMO. A little over 400 tenants and leaseholders expressed their opinion, with 99.5% in support of the proposal.

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Section L ALMO Structure And Board

Blackpool Coastal Housing plans to establish a single ALMO to manage all Blackpool Borough Council’s housing stock.

We propose to set up the Board with 15 directors, a third being Council nominees, a third tenant representatives and a third independent members.

The Board’s membership will bring a wide range of expertise and skills covering housing, finance and management, which will provide effective governance and development of the organisation.

It is anticipated that the Board will develop sub-committees to ensure the effective operation of the organisation. These would have responsibilities for:

• Finance/Value for Money/Efficiency/Risk and Audit • Decent Homes Delivery and Asset Management • Performance • Human Resources • Remuneration

Blackpool Coastal Housing will develop a Delivery Plan, which details how the organisation will provide services in line with the Management Agreement. The delivery plan will be agreed with the Client Officer at the Council

Shadow Board

The Tenant ALMO Group comprising tenants and leaseholders who are interested in the ALMO development have agreed a method of recruiting tenant and leaseholder members to the Board, facilitated by the Independent Tenant Advisor, Indigo Consulting.

The Council will nominate representatives onto the Board ensuring that a political balance is achieved. To avoid any conflict of interest the Council will also ensure that any members nominated do not hold a cabinet position within its own governance arrangements.

A skills audit of the Tenant Board Members and the Council nominees will be undertaken to identify any skills gaps. Independent Board Members will be recruited based on any skills gaps identified.

The Shadow Board will commence meeting from June 2006, and will undergo a comprehensive training programme alongside the initial meetings. The training programme will include:

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• General Introduction and Background

• Team Building Session / Vision / Mission and Values

• The Role of an ALMO Board / Legal responsibilities / Company Law and ALMO constitution • • Tenant Participation / Empowerment

• Equality and Diversity

• Housing Management, Policy and Practice

• Property Management, Repair, Improvement and Procurement

• The Decent Homes Standard

• Housing Finance

• Strategic Management, including Best Value

• Business Planning / ALMO Delivery

• The Board’s Role as an Employer

It is intended that these sessions will be complimented by two visits to existing ALMOs.

Governance Arrangements

We will follow the model constitution closely and will be working with our consultants to ensure that the Shadow Board develops a robust internal governance framework, using the knowledge and skills that individual board members will bring to the organisation and those developed from the initial training programme.

Blackpool Coastal Housing is committed to pursuing a policy of equality and diversity throughout the services it provides. To help achieve this, Blackpool Coastal Housing will encourage representation at Board level of the communities we serve as well as through the customer involvement strategy at all levels within the organisation.

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Section M ALMO Independence

Blackpool Coastal Housing will be a not for profit company limited by guarantee with Blackpool Borough Council as single shareholder.

Blackpool Coastal Housing will have the responsibility for the management of the Council’s housing stock and will have considerable operational freedom to achieve its own strategic and operational objectives. Blackpool Coastal Housing will develop its own distinct identity and culture, which will be demonstrated through the delegation of strategic financial, business management and planning processes as well as service delivery.

Blackpool Coastal Housing will work closely with the Council to achieve the authority’s strategic housing objectives and maintain close working relationships to achieve wider community and social objectives benefiting the people of Blackpool. Details of the Council’s strategic and enabling functions are included in Section O.

Identity

Blackpool Coastal Housing has developed an identity independent of the Council, including a new logo and strap-line. Blackpool Coastal Housing will develop its own website so that from a customer and employee perspective the organisation will have an identity quite separate from the Council. The name, logo and strap-line were developed through tenant and staff consultation.

The three Area Housing Offices from which Blackpool Coastal Housing will operate are already separate from other Council buildings. The organisation will actively consider moving the head office function to new offices, providing that the cost of this is not prohibitive and that it would not take valuable resources away from the physical improvement programme and service improvement.

Blackpool Coastal Housing has joined the National Federation of ALMOs and will use this resource to secure information to ensure that best practice is developed. The company will develop new policies in relation to service delivery and human resources.

Blackpool Coastal Housing will appoint its own solicitor to ensure that the negotations around the management agreement and other legal arrangements with the Council meet the best interests of the new company and its stakeholders.

The Council will provide Blackpool Coastal Housing with access to a ring- fenced section of the Council’s financial accounting system to enable economies of scale to be obtained, but this will provide separate accounts which will be subject to independent audit. The company will develop its own

Version 6 44 ALMO Draft Bid standing orders including procurement arrangements, and will have its own banking arrangements. Blackpool Coastal Housing and the Council have developed a series of Service Level Agreements. Services such as ICT, Payroll, Grounds Maintenance and some aspects of Legal Services, Technical Services and Human Resources are planned to be purchased back from the Council. Some operational level aspects of Legal Services, Technical Services, and Human Resources along with the day to day and void repair functions of the Operational Services Department will transfer to the new company.

The company will review the Service Level Agreements within the first year of operation and on a regular basis thereafter to ensure value for money. The company will have the freedom to consider alternative ways of procuring services to ensure it provides a high quality service offering value for money.

Role of the Board

The Board will be responsible for developing the strategic vision of the company, ensuring that the improvement plan is implemented and that the physical improvements to properties are achieved in accordance with the delivery plan. The Board will provide the focus and energy of the company, maintaining its independence from the Council but ensuring synergy with Council activities to ensure the best possible service for our service users - Council Tenants and Leaseholders.

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Section N ALMO Staffing arrangements

Blackpool Coastal Housing is developing a staffing structure to equip the company to ensure that the service delivery plan and physical improvements are achieved. The company will build on the work that has already taken place, and which continues, to develop a highly motivated workforce who welcome and embrace improved working practices.

The staffing structure will be in place from the point of the shadow board commencing operation to ensure a smooth transition at the point of the Company being operational.

The staffing structure will look as follows:

General Manager

Head of Head of Head of Property Housing Finance Services Services

Operations Area Offices Finance Admin

Void Repairs Neighbourhood Company Management Secretary Planned Maintenance Supported Debtors Housing Repairs Hotline Rents/RTB ASB Depot/Fleet Leasehold Income Recovery Day to day Admin team Repairs CBL/Lettings Contract Procurement Customer Involvement Performance Projects/ Monitoring Development IT

HR

Business

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Planning

Policies Terms and Conditions

It is anticipated that the transfer of staff to the Company will take place in the autumn of 2006. The transfer will be based on the Transfer of Undertakings (Protection of Employment) regulations known as TUPE. The posts within the structure will be filled in accordance with existing Council policy and procedure. Staff will initially transfer to the new company with the same terms and conditions of employment as Council employees. The company will recognise trade union membership as the Council currently does.

There will be no two-tier work force within the Blackpool Coastal Housing, and new staff coming into the organisation will be employed on the same basis as existing staff. The company will however, develop its own Human Resource policies, procedures, terms and conditions through consultation with employees and trade union representatives.

Blackpool Coastal Housing will develop policies and procedures that closely match the Council’s existing terms and conditions, although any changes in Council terms and conditions will not automatically be applied to Blackpool Coastal Housing.

Employee Consultation

Blackpool Coastal Housing recognises that the transfer of employment to a new organisation will understandably cause a range of concerns for staff and it has developed with the Council a methodology for mitigating as much of these concerns as possible.

The Council developed a Communication and Consultation Strategy, which includes how employees will be involved with developing the ALMO, and Blackpool Coastal Housing has adopted this.

Staff were initially asked to define their preferred method of communication. Staff newsletters were ruled out as employees complained they did not have time to read them. Information to each team meeting was also ruled out, as that did not provide the opportunity or time for staff to digest information and consider consequences. Specific regular events were suggested where senior managers could attend to deal with concerns and answer questions.

Communication has, therefore, involved undertaking a series of awareness sessions with staff from different parts of the Council who will be involved in the TUPE transfer, providing them with information about the new company and how their own terms and conditions will be affected. Staff have had opportunities to ask questions in safe confidential settings, and senior managers have come responded to staff with answers to the questions. This process has developed a good level of trust between staff and managers.

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In addition to the awareness-raising sessions, staff representatives have been invited to monthly meetings to discuss the progress of the project and are able to feed in their comments, observations and views.

Formal union negotiations have taken place using the Council’s existing JCC structures plus ad-hoc meetings with senior staff. Union representatives have also been invited to the awareness-raising sessions and have been involved with the discussions about issues concerning staff.

Staff within the Council’s Landlord Services Division were given the opportunity to express their views on whether they felt that an ALMO was the best option for the future housing service. 70 members of staff expressed their view during a secret ballot, the results of which are as follows:

No – 1 vote Unsure – 1 vote

Yes – 68 votes

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Section O Council Strategic Function

The Council recognises the importance played by the Strategic Housing Function especially in a town like Blackpool. Since 1999, the Council has separated Housing Strategy from the Landlord function forming a separated Division to manage Landlord Services. This period of separation has allowed a strong and proactive approach towards housing strategy to develop.

The Council’s housing strategy brings together all housing providers, Landlord Services, Registered Social Landlords and the Private Sector in order to meet the needs within the town. Blackpool has a significant private rented sector (approximately 17% across the Borough, rising to approximately 40% in some of our inner areas, compared with approximately 8% nationally) and we pursue working relationships with the private landlords as we recognise their importance in meeting housing need.

The Council recognises the importance of its strategic housing role within the Fylde Coast area and works with its neighbouring authorities of Fylde and Wyre when considering housing issues, it also engages in sub-regional partnership working with the Lancashire West Housing Group, and is beginning to explore ways of linking with East Lancashire as part of the Central Lancashire City Region. We also work with the AGMA group of authorities sharing the experience of other densely developed urban areas.

The Master Plan has created new and exciting opportunities for regenerating Blackpool and the economic benefits that this will bring through the work of our Urban Regeneration Company, Re-Blackpool, are linked through our housing strategy to the aspirational housing needs of our existing and future residents.

The Housing Strategy function is now within the Tourism and Regeneration Directorate, which ensures the compatibility of all aspects of regeneration including, economic development, planning and housing.

The client function for the ALMO will consist of a small team of dedicated staff who will monitor and work with the ALMO to ensure the ALMO delivers and adheres to the Management Agreement. The approach taken will be one of partnership but with teeth available should the ALMO fail to deliver. This team will be based in the Housing Needs Division of Housing and Social Services.

This Division contains Housing Advice, The Housing Register Team and the Supporting People Team. This will ensure close links between the Client officers and staff at the front line of providing service to vulnerable clients and again ensures a separation of operational housing issues from Strategy.

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Housing & Social Services Director

Mental Health Older People Housing Social and Learning and Physical Support Services Policy Disability Disability Planning &

Learning Assessment Supporting Finance & Disability Teams People Member Service Support

Commissionin Commissionin Policy Human g & g Planning & Resources Development Performance

Mental Care and Homelessness Policy Health Repair & Housing Planning & Teams and Advice Performance care services

Residential Social

and day care Housing client Home Care ALMO Draft Bid

Social Housing Client Function

Social Housing Client Officer PO12-15 or15- 18

5 years social housing

Social Housing Coordinator PO 1-4 2years social housing experience Commitment to Hsg Inst qual

Administrator Scale 4

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Section P Monitoring Arrangements

Blackpool Borough Council will monitor Blackpool Coastal Housing through mutually agreed performance indicators as part of the Management Agreement. This will include the annual Delivery Plan and the Improvement Plan being the basis for monitoring along with a range of other performance indicators, both statutory and locally defined.

The Council is keen to ensure a professional yet flexible relationship with Blackpool Coastal Housing , which will focus on self-regulation, backed up by light touch monitoring from the client.

Reporting will involve appropriate officers within the respective organisations, as well as through each organisation’s governance structures.

The Management Agreement will ensure that the Council and Blackpool Coastal Housing will work together to resolve any disputes or defaults that may arise through the action or inaction of either party.

Tenants will be involved in the monitoring arrangements of the services provided by either the Council or Blackpool Coastal Housing through the Tenants Compact.

Where failures in performance of Blackpool Coastal Housing are identified, the company will be required to submit a remedial plan for the Council’s approval. If serious breaches occur that are not capable of being remedied in that way the Council retains the right to intervene or terminate all or part of the agreement.

Section Q Timetable

Our timetable for the establishment of Blackpool Coastal Housing and the subsequent Best Value Inspection is shown below:

ALMO Draft Bid

Milestone Date Move all proposed ALMO functions into April 2006 Landlord Services Submit Bid for a place on the Round 6 ALMO April 2006 programme Recruit Shadow Board June 2006 Shadow Board operating / training July 2006 Indicative Inspection July 2006 Section 27 application July 2006 ALMO go Live October 2006 Best Value Inspection June 2007 Access additional funding September 2007 Deliver Decent Homes 2007/08 to2010/11

Appendix One

Map of Blackpool Borough Council Housing Estates

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Appendix Two

Building Cost Model

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