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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 04/10/2004
Servicing and Maintenance of Gas Appliances and Heating Installations



Summary & Purpose
To appoint Central Heating Services Ltd as a Partnering Contractor to carry out Servicing and Maintenance of all non-commercial Gas Appliances and Installations within the Housing Stock and seek approval from the Executive for a Waiver to Contract Procedure Rules to make this appointment.

Quality of Life Implications
Natural Resource Use
Pollution Prevention and Control
Biodiversity and Nature
Local Environment
Social Inclusion
Safe Communities
Local Economy
Natural
Resource Use
Pollution
Prevention and Control
Biodiversity
and Nature
Local
Environment
Social
Inclusion
Safe, Healthy
and Active
Communities
Local
Economy
N/A
Positive
N/A
Positive
Positive
Positive
Positive


APPENDIX AA
WAVERLEY BOROUGH COUNCIL

EXECUTIVE – 4TH OCTOBER 2004
_________________________________________________________________________
Title:

Servicing and Maintenance of Gas Appliances and Heating Installations
[Wards Affected: All]
_________________________________________________________________________

Note pursuant to Section 100B(5) of the Local Government Act 1972

The annexe to this report contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in those paragraphs of Part I of Schedule 12A to the Local Government Act 1972 indicated:-

Information relating to the financial or business affairs of any particular person (other than the authority) (paragraph 7);

The amount of any expenditure proposed to be incurred by the authority under any particular contract for the acquisition or disposal of property or the supply of goods or services (paragraph 8).
_________________________________________________________________________

Summary and purpose:
To appoint Central Heating Services Ltd as a Partnering Contractor to carry out Servicing and Maintenance of all non-commercial Gas Appliances and Installations within the Housing Stock and seek approval from the Executive for a Waiver to Contract Procedure Rules to make this appointment.
_________________________________________________________________________
Quality of life implications – social, environmental & economic (sustainable development):

Natural Resource Use
Pollution Prevention and Control
Biodiversity and Nature
Local Environment
Social Inclusion
Safe, Healthy and Active Communities
Local Economy
N/A
Positive
N/A
Positive
Positive
Positive
Positive

E-Government implications:
There are no E-Government implications.

Resource and legal implications:
These works will be carried out within the provisions of the HRA Major Repairs Allowance Capital budgets for 2004/05 and beyond.


_______________________________________________________________________

Note:

1. It is intended that the proposals within this report should supersede those that were contained in the report to the Executive dated 4th March 2003 for Gas Central Heating, Safety Checks, Servicing and Responsive Repairs.
_______________________________________________________________________

Background

1. As a Landlord the Council has a statutory obligation under the Gas Safety and Use Regulations 1999 to ensure the safety of gas appliances and installations within tenants’ homes in order to protect the tenants and surrounding homes.

2. Central Heating Services Ltd have carried out gas servicing, maintenance and replacement heating installation work for Waverley’s Homes in excess of 12 years.

3. Generally, the maintenance element of a gas servicing and maintenance contract is paid for on a lump sum basis, with the contractor assessing the work required to maintain the installations and putting a cost against that work. A tendering contractor that had not worked on Waverley Borough Council’s Housing stock would need to make assumptions of the condition of the gas appliances and tender according to these assumptions and risks. Officers believe this has led, in the past, to under-valuing of the contractual risks resulting in a low tenderers consequential poor performance. This has not been the case with Central Heating Services Ltd.

4. Best Value Performance Indicator LOH07 which measures the number of gas safety checks completed within 12 months of the previous gas safety check has been identified as one of the key performance indicators following the recent Best Value inspection of the Housing Service. This performance indicator has continued to show substantial improvement in recent years. This is due to the flexible approach and the desire of officers within the Housing Department and Central Heating Services Ltd to improve the service. Officers believe that current performance is now at a level that will enable progress to the next Best Value Performance level. 5. In order to obtain a further objective view on the performance of Central Heating Services Ltd and value for money received by Waverley Borough Council, HMA Associates who specialize in advising on the management of gas servicing and maintenance contracts to social housing providers, were appointed to advise on the current arrangements and proposals to develop a partnering arrangement. A copy of this report is provided as part of (Exempt) Annexe I.

6. Customer satisfaction with Central Heating Services Ltd is high and is continuing to improve. Details are provided within the report at (Exempt) Annexe I.

7. Central Heating Services Ltd and Waverley Borough Council have invested considerable resources in linking our information technology systems. We currently receive regular updates on work progress and activity which is uploaded onto our own database system. However, this requires further development in order to enable transfer of the data onto the Orchard Housing system, but the framework to achieve this is already in place within the existing systems. Provision to achieve this will be made within the new contract.

Resource Implications

8. Regular financial checks on Central Heating Services Ltd by Waverley Borough Council’s Audit department, whilst they have been working for Waverley, have confirmed that they are a financially stable organisation. This, combined with consistent and improving levels of performance, has indicated that they have a sound management approach. Conclusion

9. Based on past performance it is considered that moving forward with Central Heating Services Ltd to a partnering arrangement represents the best option for Waverley’s Homes and tenants and will enable the further development of an already strong relationship and reduce the risks associated with a potential change of contractor mentioned previously.

10. The appointment of Central Heating Services Ltd without a formal competitive tendering process falls outside the scope of the Contract Procedure Rules. We are therefore seeking a waiver to Contract Procedure Rule A112 to enable negotiation to be conducted with Central Heating Services Ltd with a view to appointing them to become the Gas Servicing and Maintenance Partnering contractor.

Recommendation

It is recommended that: -
________________________________________________________________________
Background Papers (DoH)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.
________________________________________________________________________

CONTACT OFFICER:

Name: Andrew Booker Telephone: 01483 523374

E-mail: ajbooker@waverley.gov.uk



comms/exec/04-05/209
39546