cornwall housing limited report template for dlt/board ... · report to finance and company...

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Cornwall Housing Limited Report Template for DLT/Board/Committee Reports

Agenda No: 5

Report to: Finance and Development Committee

Part 1

Date: 20th July 2015

Title: ILS – Lifeline Expansion

Author: Pete Jarman Role: Director of Landlord Services

Contact: 504658 (Int.) 01872 224658 (Ext.)

[email protected]

For Board reports only

Committee: Name of committee

Date: Date of committee meeting

FOR DLT REPORTS ONLY: Report sign off Date Report to finance and company secretary for sign off by Friday before DLT report submission date

18th June 2015

Report to DLT with relevant sign offs by Friday before following DLT

1st July 2015

Forum report submission date Forum meeting date Committee report submission date 13th July 2015 Committee meeting 20th July 2015 Board report submission date

20th July 2015

Board meeting date 27th July 2015 Any other approvals required, eg Council, Client, Shareholder

Recommendations:

1. Agree recruitment of a permanent administrator for the chargeable service on anticipated scale 5

2. That we write to all of our tenants aged 60 and over in the mid

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area, marketing our Lifeline and Visiting Support service 3. That we distribute leaflets to GP surgeries and locations in

Wadebridge, starting in August 2015. 4. That we appoint additional capacity as the service demands.

Additional ’Requests to Recruit’ will go through DLT as normal, depending on additional customers, income, support hours and geographical location and in line with the financial model and assumptions contained within it.

1. Executive Summary:

CHL currently provides a chargeable Lifeline and visiting support service that we began in December 2013. Due to historic reasons we have more customers in East Cornwall than anywhere else. This is a service that is valued by our tenants and also by a wide range of older people with health needs or a disability. CHL has a unique offer in that we combine the traditional lifeline and 24 hour call monitoring with a twice yearly visiting service. This allows us to check the equipment is working effectively and to check on the general welfare of the customer. CHL staff can signpost the person to other services as needed and can flag-up any safeguarding concerns if relevant. CHL also provides an annual Home Fire Safety Check on behalf of Cornwall Fire and Rescue Service, so offering additional assurances for the occupant. We are now looking to expand this service with active promotion and marketing in order to bring additional income into the company that will be used to support other services. We can provide this service to the wider community and want to begin a promotion and marketing campaign in a defined geographical location. We have selected Wadebridge as a ‘pilot’ location and then anticipate expanding to further defined geographic locations every three months. 2. Background and Cornwall Housing Objectives:

This work fits with the CHL Aims:

• high performing housing company providing an exemplar service to the population of Cornwall;

• ambitious, innovative and business focused organisation • company that has the capacity for growth through new build and

expansion; and a • successful employer that our staff want to work for

It is also one of the top priorities within the company’s growth strategy.

3. Decision and Supporting Information (Including Options):

This report is supported by a detailed Business Case (Appendix A)

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4. Financial Implications and Budget:

The main driver for expanding and marketing the ILS chargeable Lifeline and visiting support service is to increase our income into the company and the Independent Living Service in particular. A recent report recommending that we retain our Cat 2 sheltered housing concierge service was approved by the Board meeting on 2nd March. The report referred to the funding for the service coming from reserves for a maximum period of up to two years. Following that, a financial model was constructed (Appendix B) that showed that the ILS would be self-financing thereafter. The main premise for the ability to self-fund was from additional income generated from actively marketing and expanding our chargeable Lifeline and visiting support service. The ability to generate new and increased income therefore is fundamental to the delivery of other front line and support services. 5. Value for Money Implications:

The expansion of the ILS chargeable service is one of the main priorities in CHL’s Growth Strategy. This report is concerned with having the ability to generate extra income for the company.

6. Other Resourcing Implications:

a. Property - no significant implications as existing staff are

primarily based at our existing Cat 2 sheltered housing schemes. Any additional staff will also be based at the most appropriate schemes to their geographical client group.

b. HR/Staffing – the financial model shows an anticipated staffing

increase of 1.36 FTE per annum as a result of an increased customer base (new clients). Any requests to recruit will be brought to DLT in the normal way and be able to demonstrate that we have, or are imminently expecting to, generate the required number of additional clients and hence the required additional income. The proposal is to recruit an officer at scale 5 to administer the chargeable Lifeline and visiting support service, line manage the service and have responsibility for active marketing. An ‘As Is’ structure is attached at Appendix C and a ‘To be’ structure is attached at Appendix D

c. Information Services – nothing significant as the ILS has

some spare telephony kit as a result of recent redundancies and terminations of contracts. Existing staff already have the required IT and telephony and new staff will only need a very limited amount of new IT/telephony.

d. Procurement and Contracts – N/A

7. Legal Implications:

Legal advice has been sought from the Council as to our ability to actively market this service to existing BT Cornwall (BTC) customers. This was due to a clause in the contract between Cornwall Council and BTC. However, in

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various meetings with BTC, their senior managers have recognised that we are both a client and a competitor. The advice that has come back is that we are able to compete. The financial model at Appendix A to the Business Case assumes that we are allowed to market our services to existing BT Cornwall customers, which will then facilitate additional income generation. 8. Equality Impact Assessment:

No further EIA has been carried out as we are proposing the active promotion and marketing of an existing CHL product. 9. Significant Risks:

The main risk is that we have a high response level and many new customers wanting to sign up. Current staff are at capacity. We would need to recruit to new posts quickly if this happens, but only at the point where the level of demand warranted that investment and we would recoup costs.

There is also a risk of not attracting enough new customers and therefore income and this would have a detrimental effect on the financial model. The mitigation for both of these risks is that we are piloting Wadebridge in the first instance to gauge the level of take-up and therefore additional income and resources needed. This will inform us as to whether we have our marketing and promotion right. The plan will then be to roll out the marketing and promotion to a different defined geographical location every three months.

The risks associated with the active marketing are contained within the Business Plan attached at Appendix A.

10. Consultation carried out including staff, SMT, Directors,

specialist advice and the community:

The proposals have been discussed at DLT. 11. Board committee: (For Board reports)

Finance and Development (Finance)

Supporting Information

Appendices: Business Case (Appendix A) Background Papers: None/or list papers used. Approval and Clearance of Report

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Report cleared by: Pete Jarman Date: 18th June 2015 Report Cleared by Finance: Kim Lewis/Steve England Date: 26th June 2015 Report Cleared by Company Secretary: Date:

Independent Living Service Lifeline Expansion Business Case Cornwall Housing Treven Kernow

Date: April 2015

Version: 0.1

2 Business Case v1.2 December 2014

Control Sheet

Version history

Version Version created

Date approved

Date for review

Author/s Approved by Revised by

0.1 0.1 Joanne Marks

0.2

1.0

1.1

1.2

Document information

Reference

Last reviewed

Sections amended since last version

Reason for change

Document location

Equality impact assessment record

Date Type of assessment conducted

Stage/level completed

Summary of actions/decisions

Completed by

Impact assessment review date

N/A No new assessment conducted

This business case relates to the expansion of an existing service

No new actions or decisions required


Guidance

Business Case

1. Reasons – Strategic Case

2. Benefits expected

3. The Financial Case

4. Implementation – Management Case

5. Internal and External Resources – Management Case

6. Timescales – Management Case

7. Risks – Management Case

8. Evaluation

Guidance Guidance is provided below and within the template. A business case sets out the justification for the investment of resources - people, time and money - into a project, new business or change. Large or complex projects may have an outline business case and the detail is explored as the project development takes shape. The Business Case builds on other work and analysis and so, by the time you write this you should be able to answer most or all of the questions and set out the implementation plan, all costs, the benefits of implementation, how implementation would be managed and the associated risks and other issues. The Business Case could refer to other documents such as the Implementation Plan, the Cost Case, and the Risk Log if you want to have these separately. If you are not able to answer these points you are probably not ready to do a full business case but could start with an outline version. Some projects can take a long time to develop and you should allow for this in your planning stages. The Business Case is a living document; it should be periodically reviewed during implementation and beyond to ensure that expected benefits are being delivered, that costs and income are all on track and to act as a baseline against which any project change requests can be assessed to determine their impact on overall cost and benefit. To complete the Business Case, you will need to:

1. Discuss with key staff and other stakeholders 2. Understand what you are trying to achieve, what outcomes are sought, and how the

proposed investment is intended to achieve them. A Benefit Realisation or mapping exercise may be held at this point.

3. Identify data sources for base-lining the benefits, ensuring those involved understand the baseline and the target values being given.

4. Identify all the changes needed to deliver the outcomes and note any associated risks. Changes may involve ICT system developments or ways of working

5. Agree the implementation stages and work needed whilst managing or mitigating the risks

6. Build a cost case for all the work to be done


7. Confirm how the project can be afforded/funded, and the impact that implementation will have on existing budgets

8. Complete the analysis and record this within this template 9. Review with the project sponsor(s) 10. Issue the completed document

The length of time this will take will vary depending upon the size and complexity of the proposal. Once created the Business Case will be reviewed on a planned regular basis, to ensure a ‘living’ view of expected benefits, costs and timescales is maintained as the project is delivered, up to the point where benefits can be signed off as being achieved. The New Business and Project Board will decide whether this sits within a service, is new business or a corporate project. Monitoring can then be agreed as relevant. Please contact the Project Management Team if you require any help in completing this template. Business Case


BUSINESS CASE

Directorate: Landlord Services Service: Independent Living Service and lifeline

Project/Programme title: Independent Living Service and Lifeline expansion

Is this a full or outline Business Case: Full

Programme/Project Description:

CHL currently provides a fully operational independent living service. The two main elements to this are the visiting support service and the lifeline equipment and call monitoring. This BC covers the expansion of this service through more direct marketing to both tenants and the wider community.

Decision Body: e.g. DLT, Committee, Board

Finance and Development Committee (Finance)

Cornwall Council Approval:

Yes, the client is in full support of the service provision and the expansion of the service.

Who else has been involved: e.g. DLT, Committee, Board

This has been discussed at DLT. The Board approved the Cat 2 scheme (concierge) work in March. That report referred to this work.

Author(s): Job Title:

Pete Jarman Director of Landlord Services Joanne Marks Head of New Business

Date: 18/06/2015 Version: version 1 once approved

0.2

1. Reasons – the Strategic Case Give reasons why this proposal/ investment is needed and what you are trying to achieve. What are the outcomes and how do they fit with our Vision, Aims and Objectives, or relevant Strategies and policy priorities. Outcomes may be monetary or relate to wider policy objectives or social impacts. Is there any statutory duty on us to do this? How will we measure this? Each outcome must have a measurable value or indicator to know if it has been achieved, and a named person who will be responsible for confirming the impact of the project. Who are the key stakeholders to this work? Is this work compliant with our Management Agreement? Does it need Cornwall Council input via the Shareholder meetings? CHL currently operates a pay as you use lifeline and visiting support service, begun in December 2013. This is predominantly provided to clients who already had a lifeline or who had previously accessed supporting people funded services from us. There has been no active promotion of the Independent Living Service or the Lifeline. These two services are valued by our tenants. It is an important service for older people and for people who have health needs or a disability. Historically the Lifeline service has been much more widely used in the East, with tenants in the mid area receiving a Council Lifeline. The mid area has now been transferred to the pay for BT Alfie service. This is a different package to the CHL offer and a different charging scale. CHL wants to be able to offer an equitable service to all our tenants. There is a strong market demand for the Lifeline offer. The CHL package is unique in that we


combine the traditional lifeline and 24 hour call monitoring with a twice yearly visiting service. This allows us to check the equipment is working effectively and to check on the general welfare of the customer. CHL staff can signpost the person to other services as needed and can flag-up any safeguarding concerns if relevant. CHL also provides an annual Home Fire Safety Check on behalf of Cornwall Fire and Rescue Service, so offering additional assurances for the occupant. We want to take this to the market place and offer the visiting support and lifeline service to the wider community. This work fits with the CHL Aims:

• high performing housing company providing an exemplar service to the population of Cornwall;

• ambitious, innovative and business focused organisation • company that has the capacity for growth through new build and expansion; and a • successful employer that our staff want to work for

This is one of our 5 priorities for growth, as approved in the 2014 – 2019 Growth Strategy adopted by Board. The service is supported by the shareholder who has seen and approved the key priorities in the Growth Strategy. There has been an outstanding question about CHL’s ability to promote any service that could be seen as competing with BT and so impacting on the contract between BTC and Cornwall Council. This has now been clarified and CHL is able to take to market our Lifeline service and to promote this as an alternative and different market offer. 2. Benefits Expected Summarise the key benefits expected from the proposal or investment and identify the baseline and target measures and owners. If it can’t be measured or doesn’t have a business owner then it is not a benefit. Dis-benefits, in terms of negative outcomes, should also be documented. A complex project could have a separate Benefit Register. Benefit Reviews should be in the implementation plan, where stakeholders will formally consider progress in realising benefits, any risks or issues and any actions required. Are there any VAT or tax implications that need to be considered? Key benefits:

1. An equal service offer to all of our tenants 2. Income generation from selling the service. All surplus will be reinvested in this service,

or other key CHL work 3. An opportunity to take to market a small and safe offer, so testing our marketing and

promotion activities VAT: Lifeline and the visiting support service is a fully vatable service. CHL charges VAT on this. There are some exceptions and these are explained in the literature and to the tenant at the time of sign up. Corporation tax: CHL will be charging a market rate for this service and, over time, will expect to see a surplus. This will be reinvested in the service or in related work and is not likely to be subject to corporation tax. 3. The Financial Case Please give Head of Finance 2 weeks notice to complete this with you. This is a cost:benefit analysis looking at the balance between the development, operational, maintenance and support costs against the financial value of the benefits over a period of time. Other non-monetary benefits should also be noted. An indicative budget should be attached.


A recent report recommending that we retain our Cat 2 sheltered housing concierge service was approved by the Board meeting on 2nd March. The report referred to the funding for the service coming from reserves for a maximum period of up to two years. The Finance team have constructed a financial model (Appendix A) that showed that the ILS would be self-financing thereafter. The main premise for the ability to self-fund was from additional income generated from actively marketing and expanding our chargeable Lifeline and visiting support service. The ability to generate new and increased income therefore is fundamental to the delivery of other front line and support services. The financial model assumes an increase in customers and therefore a commensurate increase in income over the five year period. The detail of this increase is in the financial model at appendix A. It assumes an increase in customers of 170 in the first year, with the majority being ‘Alarm Only’ (154) with an additional income of £38,056. The number of new customers increases in years 2 – 5 by between 363 customers (year 2) reducing gradually to 310 new customers in year 5. This is the net new customers taking into account existing customer drop-out rates. The income increases by £341,513 over the five year period (from £140,938 in year 0 to £482,451 in year 5). The financial model includes the expenditure that has an associated increase in staff due to the expansion of the chargeable service. It also shows an increase in expenditure on Lifeline units and Lifeline connection/monitoring costs through BT Cornwall. We have assumed that any surpluses generated will be a contribution towards fixed costs and/or reinvested into this Scheme. Therefore there should be no tax implications. If there is a net profit this will potentially be subject to corporation tax. 4. Implementation – Management Case Set out how the proposal will be implemented. Identify the project management approach, the expected areas of impact, barriers to change and how they will be addressed. These tasks will be further developed in the PID and Project Plan. The service is currently managed within the Landlord Services Directorate. There is a dedicated ILS manager. All additional work will be delivered under this current management structure. As the service expands and we attract new customers we will need to recruit additional delivery staff. The financial model shows an anticipated staffing increase of 1.36 FTE per annum as a result of an increased customer base (new clients). Any requests to recruit will be brought to DLT in the normal way and be able to demonstrate that we have, or are imminently expecting to, generate the required number of additional clients and hence the required additional income. This business case relates to an expansion of the current service. As such there will be a light touch project management approach. The expansion, issues, risks and income will all be monitored through DLT now that the NB&CPB has been disbanded. It is not anticipated that this service expansion will be a corporate project. DLT will keep


ownership because it is one of our 5 priorities identified under the Growth Strategy. CHL has carried out extensive desk top analysis of current levels of need and age demographics across the Mid and East areas. This has been supported by the Council Strategy and Intelligence Team. We have used this data to inform the locations to begin promoting the service to the wider market place. This will be via a generic leaflet drop and displaying information in key locations such as GP surgeries, One Stop Shop and various health or age related outreach locations. The evidence for the marketing locations is attached as Lifeline and Visiting Support – Proposals for Marketing and Promotion Strategy is attached at Appendix B. 5. Internal and External Resource required List all internal and external resources required to deliver and how much time is likely to be needed from each person or Directorate – please consult with these individuals/services. Include all that is needed even if you do not yet know how to achieve this. Where you can please give names or roles and say if they have agreed to do this work and if their manager approves. Note any significant gaps in the resources available. Include finance, IT, project support, Cornwall Council input. Management: There is an ILS manager in post who will be responsible for the delivery and expansion of the service. Marketing: leaflets have been prepared and are ready to go to print. Finance: input is needed to process map the payments and then ensure ongoing accurate reporting 6. Timescales – Management Case Set out the main milestones for the project. What are the key dates. Note if any of these are critical e.g. external funding deadlines Are these dates in all relevant team plans and / or the corporate work plan? Note any conflicts or identified problems with the timescales. Final sign off from DLT: 8th July 2015 Approval at F&D: 20th July 2015 Board Approval: 27th July 2015 Leaflets ordered: Late July Initial marketing in East area: August Letter to all tenants in Mid with marketing leaflet: To be decided Review of take up: October 2015 Review of staffing requirements: October/November 2015 DLT assess initial publicity impact, customer response and take up. DLT approve the next stage of marketing to a new area. Recruitment sign off is via DLT, as is the norm, for additional posts as the service expands and there is both need and income for the extra staff.


7. Risks – Management Case Summarise the key risks and any known mitigation. Refer to a separate Risk Log if there is one. Risk The main risk is that we have a high response level and many new customers wanting to sign up.

Impact Current staff are at capacity. We would need to recruit to new posts quickly if this happens, but only at the point where the level of demand warranted that investment and we would recoup costs.

Timescale Regular review of level of enquiries, conversion to sign up, income generated. Assessed at DLT meetings

Mitigation Promotion is staggered and any additional promotion is delayed until we have processed all customer sign ups and have the required posts filled.

Risk There is also a risk of not attracting enough new customers and therefore income.

Impact This would have a detrimental effect on the financial model.

Timescale Regular review of level of enquiries, conversion to sign up, income generated. Assessed at the 6 weekly NB&CPB meetings Promotion could be escalated into new areas as needed

Mitigation We are piloting Wadebridge in the first instance to gauge the level of take-up, additional income and resources needed. This will inform whether we have our marketing and promotion right.

Risk That we are offering a different service to tenants in the East than to the Mid

Impact This is not fair as all tenants should have access to the range of services we provide where possible

Timescale This can be rectified quickly following sign off of this business case.

Mitigation Approval given to expand the offer and to begin immediate roll out to tenants over 60 in the mid area.

Risk

Impact Timescale Mitigation

8. Evaluation Set out how the project will be evaluated. Will there be any external evaluation? How will we judge I the impact and any success? How will key lessons learnt be shared in the organisation?


This is not a full scale project. It is an expansion of a current fully operational service. Evaluation will be based on the main criteria:

1. Levels of promotion 2. Number of enquiries 3. Numbers of conversions to paying customers 4. Income generated 5. Split between new tenant and market customers 6. Customer retention 7. Customer satisfaction

These criteria will be evaluated and monitored at New Business and Corporate Projects Board. Lessons learnt will inform the development of our future market activity and the implementation of the Growth Strategy.

ENDS

Indicative Cashflow Model for ILS Proposed Chargeable Services including Cat II Proposals

IncomeWeekly Charge

Annual Charge Vol Income Vol Income Vol Income Vol Income Vol Income Vol Income

£ £ £ £ £ £Alarm only 3.8 197.6 545 107,692 699 138,122 1,027 202,935 1,339 264,586 1,635 323,076 ### 378,602Monthly visit only 5 260 0 0 0 0 0 0 0 0 0 0 0 0Monthly visit with alalrm 7.25 377 32 12,064 41 15,457 60 22,620 78 29,406 95 35,815 111 41,847Fortnighlty visit only 8 416 0 0 0 0 0 0 0 0 0 0 0 0Fortnighlty visit with alarm 10.65 553.8 19 10,522 25 13,845 37 20,491 48 26,582 59 32,674 69 38,212Weekly visit only 15 780 1 780 1 780 2 1,560 3 2,340 4 3,120 5 3,900Weekly visit with alarm 17.5 910 4 3,640 5 4,550 8 7,280 11 10,010 13 11,830 15 13,650Direct Contact 120 6240 1 6,240 1 6,240 1 6,240 1 6,240 1 6,240 1 6,240

Total Lifeline Chargeable Services ##### 178,994 261,126 339,165 412,755 482,451

CAT II - existing 37 16,328 15,512 14,736 13,999 13,299 12,634CAT II - new 112 22,131 22,131 22,131 22,131CAT II - service charges 290 81,677 81,677 81,677 81,677

Total Income from charges 157,266 194,506 379,670 456,972 529,863 598,893

Supporting People Income 66,240 66,240

Individual Budgets Income 75,000 75,000

Contribution from Council

Total Income ##### 335,746 379,670 456,972 529,863 598,893

ExpenditureFTE Cost FTE Cost FTE Cost FTE Cost FTE Cost

Staffing £ £ £ £ £Current 2.31 FTE @ Grade 2.2 43,659

Proposed growth re chargeable servicesCurrent proposals - 2FTE @ Grade 2.2, 2 39,091 2 41,819 2 41,819 2 41,819 2 41,8191 FTE @ grade 5 1 26,362 1 27,966 1 29,570 1 31,173 1 31,173

Proposed growth re increased customer bas1.36FTE pa @ mid point 1 19,545 2.36 46,127 3.72 72,709 5.08 99,291 6.44 125,873

Manager @ Grade 7Assumed 1 FTE at grade 7 1 35,822 1 37,330 1 38,841 1 40,349 1 41,858

Proposed growth re CAT II

CAT II review completed 3.7 81,677 3.7 81,677 3.7 81,677 3.7 81,677 3.7 81,677 3.7 81,677

G&T & Hostels 2 46,314 2 46,314Individual Budgets 38,418 1.6 38,418

Contribution award 12 3,690 10 3,018 11 3,426 13 3,834 14 4,242

TransportCurrent 28,900 11,600 11,600 11,600 11,600 11,600Growth re increased staffing base 3,322 5,007 6,693 8,378 10,064

Lifeline 55,000 48,636 51,568 54,646 57,878 61,272

Miscellaneous 26,000 16,289 16,289 16,289 16,289 16,289

New Lifeline units

used for year 1 then 400 units per year @ £92 per unit 320 29,440 400 36,800 400 36,800 400 36,800 400 36,800

Provision for replacement lifeline units

Initially 750 units but then increasing by 400 per year from 16/17 750 23,000 13,800 21,160 28,520 35,880 43,240

Total Costs ##### 414,006 380,362 422,589 464,969 505,907

Net surplus (+) / deficit (-) -44,462 -78,260 -692 34,383 64,893 92,986

2014/15Year 0

2015/16 2016/17 2017/18 2019/20Year 1 Year 2 Year 3 Year 4 Year 5

2018/19

ILS Manager

1 FTE

Grade 7

Personalisation Officer ( IB)

1.6 FTE

Grade 4

G & T Support Worker

1 FTE

Grade 3

Homeless Families Support

Worker

1 FTE

Grade 3

ILS Admin Officer

1 FTE

Grade 2

ILS Support/ Concierge

Officer

6.3 FTE

Grade 2

Project Support Officers

( UC-UCAN)

3 FTE

Grade 3

ILS Structure AS IS Appendix C

ILS Manager

1 FTE

Grade 7

Personalisation Officer ( IB)

1.6 FTE

Grade 4

G & T Support Worker

1 FTE

Grade 3

ILS Structure-Proposed

Chargeable Service/

Concierge Manager

1 FTE

Grade 5

ILS Support/ Concierge

Officers

6.3 FTE *

Grade 2

Homeless Families Support

Worker

1 FTE

Grade 3

WR/UC Support Workers

?

?

Appendix D

* Numbers

will increase

with

expansion of

chargeable

services

* Awaiting

company

client decision

after

evaluation of

Berryfields

pilot project.

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