APPENDIX 2

Responsive Maintenance Partnering Contract Core Group Meeting

10 am on Thursday, 14 December 2006 – Garsdale Court

Present:

Dennis Rees Chair of Derby Homes Shaun Bennett Derby Homes Steve Humenko Derby Homes Jim Burns Environmental Services Department Shaun Osborn Environmental Services Department Reg Berry Environmental Services Department Win Buchan Tenant / Leaseholder Derek Jinks Derby City Council

In attendance: John Moore

1. Apologies – none

2. Minutes of previous meeting

These were agreed as an accurate record.

3. Matters arising

CEPP – Shaun Bennett reported that he was experiencing difficulty in contacting Ian Yeomans but that he was optimistic that we would hear before Christmas whether or not the bid for funding that has been applied for has been successful. Solihull and Ashfield had also submitted bids. Shaun said that there are currently thirteen organisations in the East Midlands partnership and that they are undertaking feasibility studies and producing a business plan. Shaun expressed concerns that there may be, at present, an over- reliance on Ian Yeomans. He said that the strength of the group was in its unity and common purpose and that it is hoped to disseminate learning through their involvement with CWC .

It was agreed that Kanute Simpson from Constructing Excellence be asked to facilitate an operative ‘Away-Day’ early in the New Year.

Page 1 of 12 1 Shaun is to report on progress to the Derby Homes Local Housing Boards in February.

Steve reminded everyone that a Process Mapping exercise is being arranged for 15 January that should include all members of the Working Group together with any members of the Core Group who wish to participate. John Moore is to look up the details of Ridge Consultants process maps and collate all other available data. It was agreed to invite Alistair Taylor to attend. JM

Shaun Osborn advised that ESD’s Union Representative on the Working Group is Simon Ward.

Steve confirmed that Jon Penn is currently working on a logo and has been asked to have it ready for approval by the Core Group at the February meeting.

John was instructed to approach the TPO’s about involving more tenants and leaseholders in the Sub Groups. JM

Jim advised that ESD is to undergo an R & M audit during 2007/2008.

4. Working Group

Steve reviewed the minutes provided. He expressed concerns that difficulties had been experienced with engaging with Local Housing Managers and expressed the hope that this will change with the introduction of the Sub Groups. He reported that the present level of appointments made is over 70% of orders raised and still rising although he warned that this may fall slightly over the holiday period.

5. Feedback from Away-Day

It was agreed that the written report received from CWC be noted. At Steve’s suggestion it was agreed that the John should, before the February meeting, do some work expanding on the issues raised relating to respective partner’s perceptions of the others. JM

6. Sub Groups - Progress

It was agreed that the written report provided be noted.

7. Improvement Actions Page 2 of 12 2

Steve reviewed the document ‘Analysis Of Current Position Relating To Proposed Improvement Actions As At 1 November 2006’ pointing out that this was a first draft to encourage and assist discussion. He referred particularly to the following items:

Item 13 Increase resources dedicated to post inspections

Derby Homes’ Surveyors ultimately to concentrate more on post inspections and quality issues and ESD Supervisors to take on more of the pre-inspection where, at present, most duplication occurs.

Item 17. IT Compatibility

It was agreed that this was an area that required considerable further work, that there is a need to identify and agree parameters, need for appropriate budgets to be put in place and that there are a range of options that may be considered. Derby Homes are currently reviewing their present computer systems and will be looking at alternative options. Shaun B agreed to ensure that ESD Management are included in the process. SB

Jim pointed out that establishing the right interface is critical. Presently there is a need to interface with AMPS and with Xmbrace / Optitime which are the management systems being used by ESD

All agreed that IT, Open Book Accounting and Consolidated Pay are intrinsically linked.

April 2008 was agreed as a target date as this will be at the end of the first full year’s trading under the new contract.

Item 21 Review Incentives Schemes

Jim claimed that the key to this is the introduction and efficient working of hand-held technology, introduction of consolidated pay and reconciling quality/quantity related issues. He wants Xmbrace to be worked to its full potential and he is aware that removing incentives may, if not handled sympathetically, have an adverse effect on productivity.

Shaun B suggested that there is a requirement to improve flexibility, empowering operatives to carry out Page 3 of 12 3 additional related and/or urgent works whilst on site. Shaun O expressed concerns about the effect on financial controls and agreed that hand-held technology will help in this regard.

Shaun B noted that the Government are comfortable with the proposals to extend the range of facilities especially relative to technology that enables ‘real time’ access.

Discussions took place on the prospect of extending the scope of work to include the private sector, works on behalf of other housing providers and works at the behest of and to be paid for by tenants. It was agreed that measures will have to be introduced to ensure separation of the various elements, separate journeys to and from ‘private’ work etc. All agreed that more discussion was needed on this topic. John is to put this on a future agenda. JM

Item 22 Introduce New PI’s

It was agreed that these should be kept to a minimum and restricted to those that are likely to be effective.

Item 23 CSD to employ a Customer Coordinator

Shaun O agreed that ESD are committed to this initiative but only if they can see potential benefits. This is something that may become clearer after the mapping exercise has been completed.

Item 24 Introduce Independent Customer Satisfaction Surveys

Steve confirmed that Derby Homes’ Performance team are at present looking at options for an inclusive satisfaction survey tool. Currently KWest is used for the repairs service. It was generally agreed that this was the most acceptable option as it is independently generated, therefore, perceived by customers as balanced and free from corruption.

Shaun B referred to the recently published 3 Year Survey that showed excellent results in most fields and a significant improvement from the previous report. He agreed to have a copy forwarded to ESD. SB

Item 25 Empower ESD Operatives Page 4 of 12 4

This links to several other initiatives and is dependent upon them.

Item 26 Increase Multi Trade Working

This is intrinsically linked with other initiatives.

Item 27 Consider Payment of Compensation to Tenants for Missed Appointments

Everyone agreed that it was more important that appointments are met and that there appeared to be little support for a compensation scheme. It was agreed that John should continue to raise the issue at Community Panel Meetings and, once all of these have been visited, he should bring a report with recommendations to the Core Group. JM

Item 29 Amend Time Scales for Voids Works

It was agreed that respective teams should work closely to identify ways to reduce voids times. The process mapping exercise should be used as an opportunity to highlight areas where savings may be made.

Shaun O claimed that the proposals placed an intolerable burden on ESD’s operatives and sub-contractors and suggested that when process mapping particular reference should be made to these concerns including looking for further possible savings in Derby Homes’ processes.

Dennis said that he had already raised concerns about the standard of work on some voids especially the decorative state of some properties offered to elderly tenants. He felt that it was important to achieve a consistency of minimum standards across the city. Reg acknowledged that it was more difficult to achieve consistency when everyone was being asked to reduce their costs and Shaun added that it is very difficult to successfully move from high quality to relatively lower standards, much easier to go the other way. It was, however, recognised that the introduction of a dedicated team had resulted in more consistency of standards.

Page 5 of 12 5 Shaun O also pointed out that the partnership should be aware of the problems relating to obsolescence of components and cited Symphony’s imminent withdrawal of kitchen units that were extensively used in the Homes Pride programme. Shaun B claimed that there is a culture problem in that Derby Homes’ tenants have become used to higher standards resulting from better funding and that they will inevitably experience problems with any reduction in standards. They, nonetheless, should get used to the idea that they will generally be expected to carry out their own decorating.

Item 30 Develop new protocols for insurance claims.

It was agreed that Fay Brown should meet with ESD’s representative to review the present protocols. JM

Item 31 Develop a joint, cohesive Health & Safety policy

It was agreed to discuss this with the respective Health & Safety Advisors and report their findings to the Core Group. JM

Item 32 Review present arrangements for recording and storing data.

It was agreed that this item should appear on a future agenda. JM

8. Performance Satisfaction

It was agreed to delegate this to the Performance & Customer Service Sub Group.

It was suggested that the reports provided in future should, where they contain graphs and pie charts, be in colour for easier reading.

9. Back to the Floor

The proposed itinerary was ratified.

10. Budgets

Page 6 of 12 6 Shaun B confirmed that he will be attending the Council’s Budget meeting during the afternoon following this meeting.

Jim pointed out that it is critical to the success of the partnering contract to get the budgeting right, particularly when Open Book is introduced. Shaun B replied that the present arrangements, whilst they may not be attractive, did, at least, provide a degree of certainty. Compared with other housing authorities our budgets are lower than average. He is concerned for the effect that this will have on the 30 Year Investment Plan. He was also aware that we are short on capital investment and that ALMO’s created later than Derby Homes were able to bid for significantly higher funding, in some cases up to £15K per property. He went on to say that £35 – 45K was required on pre-war estates over the next five years. The present school of thought was that it is better to refurbish and retain homes rather than demolish and rebuild. It was agreed that Shaun and Jim should discuss the development of a strategy to maximise the potential for bringing in funding including selling the group’s services to other authorities. Dennis mentioned that there may be opportunities within the redevelopment plans for the Derwent and Osmaston areas and that we should sell to our strengths.

11. Other business

Reg raised the issue of the introduction of Open Book Accounting and it was agreed that regular meetings need to be set up involving Derby Homes and ESD staff to set parameters, establish protocols, produce sets of books for the virtual company, identify costs, budgets and expectations. It was agreed that this should be the remit of the Contractual & Commercial Sub Group and that they should, as a matter of urgency, produce a programme for the introduction of Open Book and start the process of collecting and collating data.

The meeting closed at 11.55 am

Page 7 of 12 7 Derby Homes & Derby City Council’s Environmental Services Dept.

Responsive Maintenance Partnering Contract

CORE GROUP MEETING On Thursday, 4 January 2007 At ESD’s Meeting Room, 839 London Road

MINUTES

1. Present:

Dennis Rees (Chair) Shaun Bennett Jim Burns Steve Humenko Shaun Osborn Win Buchan Reg Berry Derek Jinks

In attendance: John Moore

2. Apologies: none

3. Minutes:

The minutes of the meeting dated 14 December 2006 were read and adopted.

4. Matters arising:

CEPP: Shaun B confirmed that there had been no significant progress since the last meeting.

Process Mapping Day: Steve confirmed that this would take place on Monday, 15 January at Colville Street Common Room and suggested that he, Shaun O and John should meet as soon as possible to develop a programme for the day. SH / SO / JM

Page 8 of 12 8 It was agreed that either someone from CWC or Gino Franco from Derby University be asked to facilitate the day. It was decided that we would gain more value from using Kanute Simpson from Constructing Excellence to facilitate the proposed Operatives’ Away- Day. Shaun B agreed to contact him. SB

Steve suggested that the list of invitees to the Process Mapping Day should be reviewed and that it should include Mary Holmes. SH / JM

Customer Satisfaction Surveys: Shaun B confirmed that he was still waiting to receive a hard copy of the report and would send it to Jim as soon as it became available. SB

Recording & Storing Data: There was no progress to report.

Council’s Budgets: Win enquired about the Council’s Budget meeting and Shaun B confirmed that the meeting had been interesting, the budgets continued to go down and he continued to be hopeful that we will come within budget at the year-end.

5. Back to the Floor:

Dennis remarked that the Back to the Floor exercise had proved an excellent opportunity to see how both sides of the partnership worked. Seeing the various activities had been an ‘eye opener’ for him and for others in the group.

Jim said that he had found it a very worthwhile exercise during which he had become acutely aware of the potential for instituting savings. He had seen evidence of a lot of checking and counter- checking in the present procedures and was convinced that IT is the key to implementing successful changes. He emphasised the importance of the role of the newly formed IT Sub Group and gave an assurance that ESD would introduce further new technology over the forthcoming year to assist in eradicating some of the duplication and improving the service. He considered that a phased introduction of hand-held technology with a pilot scheme covering 25 – 30% of the city would be the best arrangement. Shaun B agreed and added that the sooner the technology was put in place the sooner savings will start to be realised.

Jim expressed concerns about the affects of the rate of change on the people involved and insisted that any review of IT must also include a review of the roles of the operatives responsible for its use. He said that he had been particularly impressed, during the morning’s visit, with the performance of the Enquiry Centre staff.

Page 9 of 12 9 Shaun B wondered whether there is any way that a career structure could be developed for Enquiry Centre staff in order to encourage them to stay with Derby Homes and not move on to perhaps more lucrative posts within other organisations call centres. Win suggested that offering a career structure might prove counter- productive as it would inevitably result in people moving from their present posts. Shaun acknowledged that we may have to consider revising the present pay scales to encourage staff retention.

Steve commented that he sympathised with the Enquiry Centre staff that were only just coming out a particularly difficult period and had, because of the changes in their working practices, been denied opportunities to broaden their knowledge. He suggested that visits to London Road by Enquiry Centre staff should be reintroduced as soon as practicable.

The nature and venue of future Core Group meetings was discussed and it was agreed that the responsibility for hosting the meetings should be spread equally between the two principle partners perhaps with the venue of a specific meeting linking to the content of that meeting.

6. Performance

Steve advocated that, for the next meeting, John should approach the Performance Team for the most up to date data. JM

7. Budgets

It was agreed that Steve should provide the latest available data on budget expenditure for the February meeting. SH

Steve claimed that the level of redefinitions had reduced over recent weeks. Jim expressed concerns that the reduced volume of work being ordered had a detrimental effect on ESD’s business and hoped that a balance could be struck allowing an increase in the value of orders raised. Shaun O pointed out that the emphasis had moved from the value of the work carried out to more reliance on meeting appointments. The need to meet the demands of the work scheduler had, he felt, resulted in operatives only completing the minimum work required by the order. This needs to be addressed as, not only does it affect the volume of business but may result in unnecessary, additional orders being raised and consequent reduced customer satisfaction.

Page 10 of 12 10 8. Other Business

Win enquired what effect the introduction of new technology will have on staffing levels. Jim acknowledged that it may, in the long term, result in a reduction in the number of people employed but stated that we must not let these concerns get in the way of business development and improvement. He hoped that any reductions that were agreed would be met from natural wastage and/or relocation rather than any compulsory redundancies. ESD already have a Working Party comprised of representatives of management and the Unions. This is working well and assurances have been made to the Union representatives that they will be kept involved throughout the process. The Unions may elect to bring in their full-time officials in due course. Jim said that transparency is paramount to the success of the contract and suggested that the late summer period will be critical. On consolidated pay and changes to working practices, the workforce is aware of the proposals. The proposals are not favourably received by everyone but there is a consensus that there is a need to modernise and improve the service. He confirmed that ESD will continue to consult with the workforce.

Shaun B claimed that the opportunity now existed for Derby Homes and Derby City Council’s Environmental Services Dept to market the service and to submit comprehensive bids for provision of the service to other housing authorities within a 15 – 20 mile radius of Derby city centre. He felt that we are close to being able to carry out repairs for anyone including owner occupiers. The Leaseholder repairs scheme is already up and running. Jim enquired whether there is mileage in approaching Mark Menzies regarding private sector housing work. Shaun O and Derek suggested that it may prove difficult to access this range of works as it is governed by a price structure that has already been determined.

Derek reflected that a recent European directive on procurement that requires tenders for all works may conspire against the Group marketing its services. It was agreed to seek legal opinion on this matter. SB

It was agreed to make Mark Menzies aware of the Group’s ambitions also to enquire of Martin Gadsby whether the Group could be considered for any of the urban renewal demolitions and refurbishment work in the Rosehill area of the city. SB

Steve reported that Derby Homes had been advised by Northern Counties Housing Association that they were merging their business with Guinness Trust and that they would, therefore, be imminently

Page 11 of 12 11 terminating their arrangement with Derby Homes to manage their housing stock in Derby.

In answer to a question from Win about opportunities for carrying out ‘private’ works, Steve reported that he was presently in discussions with another RSL and a private landlord but the discussions were in their infancy and it is likely that any decisions are several months off.

It was agreed that priority should be given to modernising and improving the processes before embarking on an in-depth marketing exercise.

The meeting concluded at 4.00 pm.

The next Core Group Meeting: Thursday, 15 February at 10 am. at Garsdale Court, Alvaston.

Page 12 of 12 12