Manchester City Council Report for Information. Communities and Neighbourhoods Overview and Scrutiny Committee 8 December 2009

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1 Manchester City Council Report for Information Report To: Subject: Report of: Communities and Neighbourhoods Overview and Scrutiny Committee 8 December 2009 Boiler Repairs in Council Stock and in Northwards Housing ALMO Director of Housing Summary To set out the process, approach and timescales for reporting, ordering and undertaking repairs to boilers and central heating systems, including, where appropriate, replacement. In addition reference is made to the work being undertaken to further improve the service. Recommendations Members are recommended to: 1. Note the process and performance on boiler repairs and replacement in relation to the residual Council housing stock and Northwards Housing. 2. Note the work going on in both organisations to further improve the Boiler Repairs service. Wards Affected: Ardwick; Ancoats and Clayton; Charlestown; Cheetham; Crumpsall; Harpurhey; Higher Blackley; Miles Platting and Newton Heath; Moston Contact Officers: Name: Paul Beardmore Position: Director of Housing Manchester City Council Telephone: p.beardmore@ manchester.gov.uk Name: Tom Roberts Position: Assistant Director Housing Manchester City Council Telephone: t.roberts@manchester.gov.uk 34

2 Name: Larry Patrick Position: Director of Property Services Northwards Housing Telephone: Background documents (available for public inspection): None 35

3 1. Introduction This overall report draws together the report previously considered by this Committee relating to boiler repairs in Council housing and a further report which deals with Northwards Housing stock. Both sections set out the process, approach and timescales for reporting, ordering and undertaking repairs to boilers and central heating systems, including, where appropriate, replacement. All replacement boilers fitted in Council and Northwards Housing homes are highly fuel efficient (Sedback A rated) condensing boilers providing 90% plus energy efficiency. This means cheaper bills for our residents and reduced carbon emissions. 2.0 Council Stock 2.1 Background With effect from 1 st April 2009 provision of the specialist Mechanical and Electrical Service has been provided by the Corporate Technical Service Team including oversight and management of the Gas Servicing and Repairs contract, currently with Manchester Working Limited. To help them deliver this service CTS have engaged a specialist gas engineering contractor SI Sealey. CTS are working with colleagues in Housing to improve monitoring and management of Gas Servicing and Repairs. 2.2 Current Process Repairs Repair faults for heating and boilers are reported in the same way as other repairs mainly via the OnCall service either during or out of office hours usually indicated as No Heat, No Hot Water. This generates a repairs visit by a Manchester Working operative to the following timescales: If it is an Emergency, eg: vulnerable tenant with no heating outside the summer period, a 3 hour deadline is set. If it is not an Emergency eg: if the weather is fine and/or the household have alternative sources of heating the job will be classed as Urgent and an appointment will be set within 3 days, normally as an Emergency job. If the fault cannot be repaired at the first visit using parts held in the contractor s vehicle the operative will raise a follow up job which will usually resolve the problem. The timescale for the follow up visit may be determined by the need for spare parts, some of which may be difficult to obtain but it will normally be within 5 days. In all cases where heating cannot be restored at the first visit the tenant is provided with temporary heating in the form of portable fan heaters. 36

4 2.3 Boiler/Central Heating Replacement If the boiler or heating system is of an obsolete make/model and parts cannot be sourced or the failure of the boiler is so severe the operative will request the client s engineer to inspect and decide whether replacement is appropriate. The client engineers, S.I Sealeys, operating on behalf of Corporate Technical Services, will inspect all potential replacement events including, where necessary, central heating systems. They will arrange a joint visit to the property with the MWL surveyor (to reduce the number of visits to the property) usually within 24 hours but this can sometimes depend on the tenant s availability. A decision can be made on the spot as the MWL surveyor will measure up and provide a cost for SI Sealey s engineer to approve. MWL would then make an appointment with the tenant as soon as possible after the 2 or 3 days it normally takes to order and collect the necessary parts/materials In order to minimise delay an order for the replacement is placed against the repairs budget with the costs later being set against the Obsolete Boiler Replacement (OBR) capital budget, which is set at 225k for 2009/10. This sum includes other related capital works to heating systems including central heating upgrades/replacements and radiator/piping replacements. In view of the higher cost of ad-hoc boiler replacement and other major heating renewals/replacements, and the amount of physical disturbance which could be involved, the preferred option is to repair where it is economically and practically possible to do so Given that the balance of the Council s housing stock will be included in future transfers or regeneration proposals all properties are treated the same in terms of the approach to boiler or central heating replacement. It is stressed that there is no presumption or policy against boiler replacement in situations where a more cost effective repair cannot be effected In the first quarter of 2009/10 boiler/central heating replacements are running slightly higher than anticipated at around 12 per month. Jobs can cost from 500minimum up to a maximum of about It is currently taking around 3 to 4 days on average from ordering a new boiler to installation. It is pointed out that where the number of boiler replacements jobs exceeds the capital budget available the cost of the additional replacement work is met from within the response repairs budget. *All replacement boilers fitted in Council and Northwards homes are highly fuel efficient (Sedback A rated) condensing boilers providing 90% plus energy efficiency. This means cheaper bills for our residents and reduced carbon emissions. 2.4 Information on Performance 37

5 2.4.1 Performance information in relation to gas servicing is monitored on a regular basis with quarterly reports to the Housing Departmental Management Team. However, data on repairs performance is subsumed within the general repairs performance data so it not possible to provide specific information on gas repairs. However, CTS are currently developing and populating a new database specifically for gas servicing and repairs, which will help with future monitoring of this key area of maintenance activity. The following PI information relating to general repairs does however give an indication of general performance by MWL. It is likely, in view of the priority given to gas boiler and heating repairs, that PIs relating to this particular area will be slightly better. Appointments Made and Kept: Target - 96% April/May 96% Urgent Repairs within Government Timescale: Target 95% April/May -99% Emergency Repairs on Time: Target 98.5 April/May 99.4% Generally performance in this area is good but like any service can be improved further. 2.5 Potential Improvements to Service As indicated above work is in hand to develop and refine a database on the overall gas servicing and repairs service which will improve monitoring of performance A process mapping exercise will be undertaken with a view to identifying opportunities for streamlining and improving processes going forward Customer complaints and comments will be recorded and analysed in order to further improve the service in a positive way subject to financial constraints. 3.0 Northwards Housing 3.1 Background Since December 2005 the management of around 12,500 of the Council s housing stock in North Manchester has been provided by the Northwards Housing, an arms length management organisation. Northwards Housing oversees and manages the gas servicing contract, repairs contract and home improvement contracts. The gas servicing and repairs contracts are currently with Manchester Working Limited. The home improvement contracts are delivered by a range of contractors which include Manchester Working Limited, Wates Living Space Limited and G&J Seddon Limited. These home improvement contracts deliver the majority of boiler replacements. Northwards Housing uses its in house surveying resources including specialist mechanical surveyors to administer these services. In delivering the home improvement programme Northwards continue to look for opportunities to deliver carbon reductions and energy performance beyond 38

6 the Government's Decent Homes Standards. To date a range of low carbon schemes have been delivered including retrofitting 500,000 of solar panels to ten tower blocks and installation of solar panels to existing homes on Ranby Avenue Current Process Repairs Heating and boiler faults requiring repair are reported in the same way as other repairs, almost always via the Housing On Call service, either during or out of office hours. Such repairs are usually logged as No Heat, No Hot Water. A repairs visit is arranged by a Manchester Working operative to the following timescales: If it is an emergency (for example a vulnerable tenant with no heating outside the summer period) a three-hour deadline is set. This is the same timescale as the Council. If it is not an emergency (for example there are no vulnerable tenants or the household has alternative sources of heating) the job will be classed as urgent and an appointment will be set within either one or three days, depending on whether it is the winter (October to April) or summer period (May to September) respectively. This is the same timescale as the Council except Northwards extends the winter period classification by an extra month. The timescales are all within Government Right to Repair deadlines. If the fault cannot be repaired at the first visit using parts held in the contractor s vehicle, the operative will raise a follow up job which will usually resolve the problem. The timescale for the follow up visit may be determined by the need for spare parts, some of which may take more time to obtain. Normally the follow-up is within five days; although the vast majority of cases are resolved within 48 hours. In all cases where heating cannot be restored at the first visit, the tenant is provided with portable fan heaters. The number of heaters left depends on the size of the property and the tenant s needs. This is the same approach as the Council. All heating engineer vans carry a range of common parts and a supply of electric heaters Where recently installed boilers are under warranty the following procedure has been adopted: A repairs visit by a Manchester Working operative is always carried out in accordance with the criteria above, which is the same approach as the Council. Manchester Working operatives can repair a boiler that is under warranty without the warranty being invalidated and they have been issued with a range of spare parts by the boiler manufacturer to enable minor repairs to be carried out at the first visit. 39

7 If the Manchester Working operative cannot carry out the repair, the problem will be reported to the boiler manufacturer, together with the tenant s details and the tenant is informed that an engineer from the manufacturer will be attending within the agreed timescale of a maximum 48 hours. This is the same approach as the Council. The manufacturer s phone number is given to the tenant in the event that the manufacturer s engineer does not attend within the timescale. In all cases where heating cannot be restored at the first visit, the tenant is provided with portable fan heaters. 3.3 Boiler/Central Heating Replacement If the Manchester Working operative attending a repair finds that the boiler or heating system is of an obsolete make or model, parts cannot be sourced or the failure of the boiler is severe, the operative will request that Northwards Housing s Mechanical Surveyor inspects and decides whether replacement of the boiler is appropriate. Northwards Mechanical Surveyor will inspect all potential replacement boilers and full central heating systems, usually within 24 hours but this can depend on the tenant s availability. A decision is made without delay and the Northwards Mechanical Surveyor will measure up and order the work with Manchester Working. Manchester Working would then make an appointment with the tenant as soon as possible after the two or three days it normally takes to order and collect the necessary parts/materials. This is the same approach as the Council In order to minimise delay, an order for the replacement is raised whilst it is decided from which budget the works will be funded. This could be the Home Improvement Scheme budget, the One-Off Replacement Boiler budget (set at 100k for 2009/10) or the Responsive Repairs budget. In view of the higher cost of ad-hoc boiler replacement and other major heating renewals/replacements, and the amount of physical disturbance which can be involved, the preferred option is to repair where it is economically and practically possible to do so. This is the same approach as the Council The vast majority of boiler replacement and full central heating system installations are carried out under the Home Improvement schemes on a planned basis which is the most cost effective approach. All boilers are inspected by a Northwards Mechanical Surveyor in advance of the improvement scheme and it is determined whether the boiler should be replaced based on age, condition and availability of spare parts Since Northwards Housing took over the management of the Council housing stock in North Manchester, 4,800 new class A condensing boilers have been installed to the end of June Of these, 146 serve blocks of 2/4 flats and four serve sheltered blocks; overall the 4,800 boiler represent around 46% of all boilers. By December 2010, it is anticipated that a further 1,500 of these boiler types will have been installed subject to survey, which will increase the percentage of new boilers to around 61%. 3.4 Information on Performance 40

8 3.4.1 Performance information in relation to gas servicing is monitored on a monthly basis and at the end of June 2009 performance was as follows: Measure Target At June 2009 Percentage properties serviced within % 99.74% months Number of properties not serviced within 16 months 0 0 Tenant satisfaction for quarter 1, 2009/10 was 98.6% based on a 22.55% response rate Data on repairs performance is included within the general repairs performance data so it not possible to provide specific information on gas repairs. The following performance indicator information for the first quarter of 2009/10 relating to general repairs does, however, give an indication of general performance by Manchester Working. Measure Target At June 2009 Appointments made and kept 95.0% 96.50% Urgent repairs within Government 96.5% 96.88% timescale Emergency repairs on time 99.0% 99.62% Tenant satisfaction % 92.54% Jobs completed on the first visit, based on tenant satisfaction responses % 93.68% Tenant satisfaction with the completed work on Home Improvement schemes is measured using a scale of one to 10 where 10 is totally satisfied, 5 / 6 is neither satisfied nor dissatisfied and 1 is totally dissatisfied. Performance during the first quarter of 2009/10 was as follows: Date Tenant Satisfaction Score 3 April May June Potential Improvements to Service Work is in hand to move the gas servicing and appliance database to Promaster (the computerised asset management system) which will provide efficiencies in managing the service and monitoring of performance. 1 Based on a return rate of 33.14% 2 Based on a return rate of 33.14% 3 Based on a survey return rate of 87% 41

9 3.5.2 Manchester Working has introduced handheld technology to the heating repairs service and are now preparing for implementation on gas servicing Work is in hand to analyse the gas servicing tenant satisfaction survey information by diversity strands in order to further improve the service. This is already carried out on the repairs tenant satisfaction surveys. 4. Recommendations Members are recommended to: 1. Note the process and performance on boiler repairs and replacement in relation to the residual Council housing stock and Northwards Housing. 2. Note the work going on in both organisations to further improve the Boiler Repairs service. 42

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