THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA TENANT

MANAGEMENT ORGANISATION LIMITED

BOARD MEETING

Thursday, 29 September 2016, 6:30pm

Board Room, 3rd Floor, 346 Kensington High Street. W14 8NS
 The Royal Borough of Kensington and Chelsea
Tenant Management Organisation Limited
(the Company)

AGENDA

Meeting of the Board of Directors (Board) of the Company

to be held on 29 September 2016 at 6:30pm
at Board Room, 346 Kensington High Street, London W14 8NS

Agenda Report Name Presenter Action Time Enclosure

Item

PART A - OPEN

1. Notice, Apologies and Chief Executive - 2 mins -

Quorum

2. Retirement and Appointment Executive Director of Decision 10 mins

of Resident Board Members People and
Performance

3. Re-appointment of Council- Executive Director of Decision 10 mins

Nominated Board Members People and
Performance

4. Chair & Vice-Chair Election Executive Director of Decision 10 mins To be

People and tabled
Performance

5. Declarations of Interest* Chair Discussion 3 mins -

6. Minutes of the meeting held Chair Discussion 5 mins

on 20 July 2016

7. Matters Arising Chair Discussion 5 mins

8. Chief Executives Report Chief Executive Information 10 mins

9. Performance Report Q1 Executive Director of Decision 10 mins

People and
Performance

PART B CONFIDENTIAL

Notes:
(1) Board Members should send in their apologies to the Company Secretary by email or by calling on 020 7605 6399
(2) * Every member of the Board has a duty under Section 182 of the Companies Act 2006 to declare any interest in any transactions or
arrangements with the Company under consideration, or section 177 of the Companies Act 2006 to declare any interest in any proposed
transactions or arrangements with the Company under consideration in accordance with the Companys Articles of Association. Any interests
should be declared to the Company Secretary on, or before the meeting.
(3) * A person who has declared an interest will neither attend the discussion leading to a decision on the conflicted matter nor vote on it.
ITEM 2
 Agenda Item: 2

THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA

TENANT MANAGEMENT ORGANISATION LIMITED (the Company)

Open
For Decision
Board Report
29 September 2016
Report title: Retirement and Appointment of Resident Board
Members

Authority for decision: The Board is responsible for overseeing the

strategic direction and governance of the Company.

Recommendations: It is recommended that the Board pass a resolution

in the following form:
The Board RESOLVED TO:
(i) note the retirement of Brendan Tracey, and
Deborah Price as Resident Board Members,
according to the Articles of Association of the
Company, as of 17 September 2016;
(ii) note the re-election of Fay Edwards and Anne
Duru as Resident Board members, by the
members according to the Articles of
Association of the Company;
(iii) note the election of Sharon Price, Minna
Korjonen, Alan Barnett and Derek White as
Resident Board members, by the members
according to the Articles of Association of the
Company;
(iv) agree to reappoint Fay Edwards, and Anne
Duru; and appoint Sharon Price, Minna
Korjonen, Alan Barnett and Derek White as
directors of the Company as of 18 September
2016; and
(v) authorise the Company Secretary to update the
statutory registers of the Company and make
the necessary filings to the Registrar of
Companies in respect of the appointments.
Regulatory/legal The appointments to the Board shall be according
requirements: to the articles of association of the Company.

Business Plan link: Not applicable.

Resource implications Not applicable

Risk: There are no risks associated with the decision

being presented to the Board

Name, position and contact Yvonne Birch, Executive Director of People and
details of author: Performance, ext. 6478
1. SUMMARY

1.2 The Company undertook an election for Resident Board Members in August
2016 according to the provisions of the articles of association of the Company
to fill four vacancies arising on the Board in the tenant board member category
and two vacancies arising in the leaseholder board member category. At the
conclusion of the election, Fay Edwards and Anne Duru were re-elected,
Sharon Price and Minna Korjonen elected as tenant board members, and Alan
Barnett and Derek White were elected as leaseholder board members. The
Board is invited to formally note the retirement and appointments on the Board
according to the articles of association of the Company.

2. RETIREMENT FROM THE BOARD

2.1 The Articles of Association of the Company provides that Resident Board
Members shall retire after a three-year term at the conclusion of the Annual
General Meeting of the Company.

2.2 According to the provisions of the Articles of Association, Brendan Tracey,

Deborah Price, Fay Edwards, Anne Duru, and Kush Kanodia are required to
retire from the Board at the 2016 annual general meeting of the Company.

2.3 The Board is invited to note the retirement of Brendan Tracey, Deborah Price,
Fay Edwards, Anne Duru, and Kush Kanodia from the Board as of 17
September 2016.

3. APPOINTMENTS TO THE BOARD

3.1 The Articles of Association provides that retiring Resident Board Members shall
be eligible for re-election to the Board subject to the articles of association, and
tenants and leaseholders shall be eligible to be elected to the Board. Further to
the Articles of Association, Fay Edwards and Anne Duru were re-elected to the
Board and Sharon Price, Minna Korjonen, Alan Barnett and Derek White were
elected to the Board.

3.2 The Board is invited to agree to re-appoint Fay Edwards and Anne Duru, and
appoint Sharon Price, Minna Korjonen, Alan Barnett and Derek White as
Resident Board Members as of 18 September 2016.

4. CONCLUSION

4.1 The Board is invited to consider the contents of this report and pass the
resolutions recommended on the first page of this report.

2/2
ITEM 3
 Agenda Item: 3

THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA

TENANT MANAGEMENT ORGANISATION LIMITED (the Company)

Open

For Decision

Board Report
29 September 2016

Report title: Re-appointment of Council-Nominated Board Members

Authority for decision: The Board is responsible for overseeing the strategic
direction and governance of the Company.

Recommendations: It is recommended that the Board consider the report and

pass resolutions in the following form:

The Board RESOLVED TO:

(i) note the retirement of
- Councillor Maighread Condon-Simmonds;
- Ms Paula Fance; and
- Councillor Judith Blakeman,
from the Board pursuant to article 18.3 of the articles
of association of the Company, as of the date of the
meeting;
(ii) note the Councils nomination of Councillor
Maighread Condon-Simmonds, Ms Paula Fance,
and Councillor Judith Blakeman, as its nominees on
the Board until the date of the Annual General
Meeting of the Company in 2017; and
(iii) agree to re-appoint Councillor Maighread Condon-
Simmonds, Ms Paula Fance, and Councillor Judith
Blakeman, as Council-Nominated Board Members
with effect from the date of the meeting.

Regulatory/legal The Modular Management Agreement (MMA) grants

requirements: RBKC the right to nominate up to four members to the
Board.

Business Plan link: NA

Equality Impact NA
Assessment/comment:

Risk: NA

Name, position and Yvonne Birch, Executive Director of People and

contact details of Performance, ext. 6478
author:

1/2
1. SUMMARY

1.1 This report invites the Board to note the rights exercised by RBKC under the
MMA in making nominations for appointments to the Board and pass the
resolutions recommended on page one.

2. INTRODUCTION

2.1 The MMA provides that RBKC shall have the right to nominate up to four
members to the Board for their appointments as Council-Nominated Board
Members. The Articles of Association provides that the Council-Nominated
Board Members shall retire from the Board annually. It also provides that
RBKC shall notify the Company of the name of its nominees in any year.

2.2 Pursuant to the articles of association of the Company, the Council-

Nominated Board members shall retire from the Board each year. As a
result, the four Council-Nominated Board Members shall retire from the
Board with effect from the date of the meeting, and the Board shall note
their retirement.

2.3 The Company Secretary has received formal notification from RBKC of the
nomination of Councillor Maighread Condon-Simmonds, Ms Paula Fance,
and Councillor Judith Blakeman, for appointment to the Board as Council-
Nominated Board Members. The Board is requested to note the nomination
and agree to re-appoint Councillor Maighread Condon-Simmonds, Ms
Paula Fance, and Councillor Judith Blakeman as a Council-Nominated
Board Member with effect from the date of the board meeting.

3. CONCLUSION

3.1. The Board is requested to consider and pass the resolutions recommended
on the first page of this report.

2/2
ITEM 6
 Agenda Item: 6

THE ROYAL BOROUGH OF KENSINGTON & CHELSEA TENANT MANAGEMENT

ORGANISATION LIMITED
(the Company)

Minutes of a meeting of the Board of Directors (Board) of the Company

held on 20 July 2016 at 6.30 pm
at 346 Kensington High Street, London W14 8NS

PRESENT:

Resident Board Members Fay Edwards - Chair

Kush Kanodia
Anne Duru
Brendan Tracey
Mary Benjamin
Deborah Price
Council-Nominated Board Cllr. Maighread Condon-
Members Simmonds
Paula Fance
Independent Board Peter Chapman
Members
Anthony Preiskel

APOLOGIES: Cllr. Judith Blakeman

Maria Escudero-Barbaza
Simon Brissenden

IN ATTENDANCE: Robert Black Chief Executive Officer

Yvonne Birch Executive Director of People &
Performance
Sacha Jevans Executive Director of
Operations
Fola Kafidiya-Oke Head of Governance &
Company Secretary
Rupa Bhola Assistant Director of Financial
Services
Nurul Miah Head of ICT
Nick Rendle Business Development
Manager
Celia Caliskan General Needs Housing
Commissioning, RBKC
David Vickerstaff Investment Portfolio Lead -
RBKC Corporate Property
Gill Petford Executive Manager
Daniel Asamoah Minutes

OBSERVER: Derek White

1/4
1. NOTICE, APOLOGIES AND QUORUM

1.1 The Board noted that notice of the meeting had been duly issued to the members of
the Board entitled to receive notice and attend Board meetings.

1.2 The Board noted that apologies were received from Maria Escudero-Barbaza, Cllr.
Judith Blakeman and Simon Brissenden.

1.3 The meeting was quorate according to the provisions of the Articles of Association of
the Company.

2. DECLARATION OF INTEREST

2.1 There were no interests declared for the meeting.

3. MINUTES OF THE MEETING HELD ON 26 MAY 2016

3.1 The Board considered the minutes of the meeting held on 26 May 2016, and
RESOLVED TO approve the minutes as correct and accurate records of the meeting.

4. RBKC ANNUAL REVIEW

4.1 Celia Caliskan from the RBKC Housing Commissioning Team presented the report.
She highlighted that the performance review covered Performance Indicators (PIs),
Internal Audits, and work-streams covering RBKCs strategic objectives. She
commended the Company for its performance which was above the previous years
results.

4.2 Celia Caliskan drew the attention of the Board to the 9 PIs which were met, and this
was an increased from the 7 PIs which were met in the previous year. She highlighted
that the two missed were due to the time taken to receive the determination from the
Upper Tier Tribunal on the Companys procurement framework. There had been 13
audits undertaken during the year, which was double the previous year, and there
were no limited assurance ratings received nor follow-ups required from the audits.

4.3 The Board noted that the issues to be carried forward were welfare reforms, health &
safety concerns and the newly-launched customer relationship management system.
The Board requested an update on the progress of the capital works at its next
meeting. Paula Fance also requested clarification on whether SAP ratings were still
being used in measuring the energy efficiency of properties.

The Board NOTED the report.

5. HRA COMMERCIAL PORTFOLIO - 2014/15 YEAR END REPORT

5.1 Nick Rendle presented the annual update on the HRA commercial portfolio as
managed by the Company. The Board noted the presence of David Vickerstaff, the
Investment Portfolio Lead for the RBKC Corporate Property team.

5.2 The Board noted that the income generated for the 2015/16 financial year was 3.1m,
an increase of 4.8% from the previous year. The update also touched on HRA voids
2/4
 and lettings, lease renewals and rent reviews. The Board noted that unused car park
sites were being assessed for suitability for residential use and if found to be
compromised, they were converted to other commercially suitable options.

5.3 Paula Fance questioned whether the marketing agents for were being appointed
through a formal tender process for industrial, commercial or other types of property,
and the trends for take-up of the properties. It was confirmed that people were looking
to take car parking spaces in the borough especially with the shortage of spaces in
the borough. Marketing only occurred when there were void properties and there were
only a few voids coming up in the borough (only 6 as at 31 March 2016). The market
remained buoyant as a whole. It was further clarified that only the units defined as
artists studios had any restriction on leasing.

5.4 The Board was informed that a lease had been agreed for Holmefield House. It was
also confirmed that a lease for Lowerwood Court was being considered for redesign
as a shared office space however this was still to be completed in the future as there
were a number of structural issues to address in addition to surveys and engineering
feasibility studies. Mobilisation would occur in 2017/18.

5.5 The Board NOTED the report.

6. PERFORMANCE REVIEW

6.1 Yvonne Birch presented the performance report as of the end of 2015/2016. She drew
the attention of the Board to the year-end report which included the performance
update as of the end of May 2016.

6.2 The Board NOTED the report.

7. CHIEF EXECUTIVES REVIEW

7.1 Robert Black presented his update to the Board highlighting that a member of the
Board, Anne Duru, had visited the Customer Contact Centre to see how the newly-
launched Customer Relationship Management (CRM) system was being used to
change the service to the residents.

7.2 The Board invited Anne Duru to give an account of her visit. She confirmed that an
improvement could be seen with the introduction of the CRM. She confirmed that the
team were happy to trade length of calls for quality of calls during the introductory
phase of the use of the system.

7.3 Robert Black drew the attention of the Board to the update on the Enforcement
notices served by the London Fire Brigade in respect of Adair and Hazelwood Tower
respectively. Brendan Tracey questioned how the Company intended to improve
communication with residents given the recent investments in technology. The Board
noted that further updates would be provided in its future meetings.

7.4 The Board NOTED the report.

3/4
8. BOARD MEMBERSHIP MATTERS

8.1 Fola Kafidiya-Oke presented an update on the resignations from the Board and
invited the Board to consider and approve a proposal to recruit a new Independent
Board Member. The Board was also invited to consider and agree the reappointment
of Simon Brissenden for a further term of three years.

8.2 The Board RESOLVED TO:

(a) note the resignations from the Board;
(b) agree to authorise the Company Secretary to update the Register of Directors of the
Company with the effective resignations;
(c) agreed to reappoint Simon Brissenden for a term of three years, as a director of the
Company according to 31.4 of the Constitution, subject to the signing of the Terms
of Appointment; and agree to authorise the Appointments & Remuneration
Committee to undertake its delegated powers, under its Terms of Reference, of
recruiting and selecting an Independent Board Member, and making
recommendations to the Board.

4/4
ITEM 7
 Agenda Item: 7

MATTERS ARISING (Open Meeting)

NO. MEETING MINUTE ACTION BY WHOM BY WHEN UPDATE

DATE NUMBER

1. 20 July 16 4.3 An update on the progress of the
capital works and clarification on
whether SAP ratings were still being
used in measuring the energy
efficiency of properties
Peter 29 Sept 16 The Capital Update report on
Maddison/Sacha this agenda gives an update
Jevans on the Capital Programme.
SAP is used to measure
energy performance of
buildings. SAP ratings are
recalculated as part of our
ongoing investment
programme and the
improvement in the average
SAP of the stock is calculated
at the end of the year

1
ITEM 8
 Agenda Item: 8

THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA

TENANT MANAGEMENT ORGANISATION LIMITED

Confidential

For information

Board Report
29 September 2016

Report title: Chief Executives Report

Authority for decision: The Board has ultimate responsibility for

monitoring the performance of the Company.

Recommendations: It is recommended that the Board note the

contents of the report.

Regulatory/legal requirements: None.

Business Plan link: Keeping abreast of performance initiatives within

the organisation, and external development
affecting social housing.

Equality Impact Equality and diversity issues are taken into

Assessment/comment: consideration.

Resident consultation: n/a

Resource implications/VFM Keeping up to date on the latest developments in

statement: social housing is important for shaping the
business. Improved performance will help the
Company to achieve its VFM objectives.

Risk: Failure to engage with the external housing

sector could have an adverse effect on the
Company in keeping abreast of developments
within the sector. There is also reputational risk if
performance fails to improve across the
Company.

Appendices: 0

Total number of pages 6

including appendices:

Name, position and contact Robert Black, Chief Executive

details of author: Ext 6311

1
1. NEW MEMBERS OF STAFF

1.1 We are really pleased to welcome the following new members of staff to the
TMO:

1.1.1 Stuart Hill Stuart is the new Assistant Director of Policy & Performance. This
is a new role and is supporting Yvonne Birch. Stuart has responsibility for
Policy, Performance, Complaints and Business Development, and all the teams
are concerned with delivering excellent services and value to our customers.
Stuart has recently moved from Cornwall where he held a similar position with
Ocean Housing Group as Head of Policy and Business Improvement, and had
responsibility for a range of areas including customer feedback, probity,
business planning and policy development as well as having a programme of
projects in place to deliver new business systems and agile working across the
Group. Prior to Stuarts time in Cornwall he worked in London with the Tenant
Services Authority as a Policy Adviser and the Audit Commission as an external
auditor.

1.1.2 Ian Lines Ian is the new Head of Strategic Investment, reporting to Peter
Maddison. Ian is a Chartered Surveyor with experience in construction,
property and housing. He joins the KCTMO from Hanover Housing where he
provided asset planning and development support to a national provider of
elderly persons accommodation. His previous experience also includes leading
roles in the delivery of new homes, asset regeneration and housing
reinvestment projects . Voluntary roles include a non executive board role at a
specialist housing provider in Surrey and Sussex, a school governor, and as an
assessor for the RICS senior professional route.

1.1.3 Julie Selhep Julie is the new Head of Capital Investment and reports to Peter
Maddison. Julie has over 30 years experience in a diverse range of senior
roles in the social housing and construction sectors. Her recent roles include the
Interim Head of Property and Landlord Services at Look Ahead Care and
Support Ltd, Divisional Manager for a contractor, leading a 30m p.a.
Framework Contract with a London Borough and the Chief Executive of a
PFI SPV (Special Purpose Vehicle) responsible for the refurbishment and
ongoing asset management of a portfolio of properties in Camden.

2. ET VISITS

2.1 The Executive Team (ET) and I are just coming to the end of our latest round of
visits. All the TMO colleagues including Repairs Direct have been dividied into
four groups and each ET member then arranges to meet colleagues either
individually or in a small group. This is their opportunity to talk to us about what
they do, any obstacles that they may face on a daily/weekly basis, what it is like
for them working for the TMO or RD and what they think of our values and the
Best Companies survey. These have proved really popular with colleagues.

2.2 Between October and December we will be starting all over again when the
groups are swapped over.

2/6
3. CRM UPDATE

3.1 It is three months since CRM went live and I am pleased to see colleagues
across the organisation embracing this new way of working. All colleagues
were trained prior to go live in May and have now been offered additional one-
on-one coaching on any areas they are concerned with or dont understand,
creating views and dashboards. Across the TMO we have anumber of super
users who are also able to help with any queries colleagues may have on a day
to day basis.

4. NEIGHBOURHOOD MANAGEMENT RESTRUCTURE

4.1 With the closure of the Estate Management Board (EMB) at Lancaster West
and the completion of Grenfell Tower we have reviewed our management
service in this area and the Neighbourhood Management Team has been
restructured in order to improve the services offered to customers and to
provide more consistency across all teams. This includes a number of
significant changes:

Investing in the Lancaster West Office to make it compliant in terms of

disability, improving the reception area, providing more private interview
rooms and more space for colleagues. This had been a temporary office
and the old office in Grenfell has been turned into new homes which
increased the Hidden Homes Programme we have with RBKC
Widening the scope of the Lancaster West Estate Office to serve customers
from Silchester and Henry Dickens Estates. This improves local services
for residents of these estates who currently have to travel to the Hub for any
face-to-face enquiries.
Increasing the number of colleagues and services available at Lancaster
West Estate Office. The office will now have three Neighbourhood Officers
based there, plus weekly surgeries for Rent Income and Welfare Reform
teams.
Realignment of estate services at Lancaster West to create a more
consistent approach to service delivery across the borough.

4.2 Overall this change will increase front line services and improve our office
facilities and it has been achieved at no cost increase.

5. ADAIR AND HAZLEWOOD TOWERS ENFORCEMENT NOTICES UPDATE

5.1 All work required by the two Enforcement Notices for Adair and Hazlewood
towers is nearing completion. Of the 156 doors which needed to have either a
self closing device or a whole new door unit fitted, only 2 flats remain to have
the door works completed (planned for this week). The London Fire Brigade
(LFB) are now planning to visit the towers next week to undertake their audit
and confirm satisfactory completion of the Enforcement Notices. The Notices
completion dates following the agreed extensions are for Adair 23 September
2016 and for Hazlewood 18 October 2016.

3/6
5.2 With respect to the investigation, we have have provided all the information
requested by LFB, but have had no further update on the outcome of the
investigation, with the exception of the following in a recent email from the LFB
Regulation Team:

..the investigation is still ongoing. This investigation is focussed on the events that
led to the fire on the 31st October 2015 and the conditions within the building at that
time.

5.3 We have informed RBKCs legal department who have requested a lot of
background information and documentation which we have provided. This is a
precaution in the event of the oucome of the investigation resulting in a
prosecution of either KCTMO or RBKC (or both).

6. GOVERNMENT POLICY: AN UPDATE FROM A MEETING AT THE DCLG

6.1 Sale of Higher Value Assets

It is still the new governments objective to achieve but as yet no timetable

has been agreed for consultation / implementation;
DCLG hope to have a timetable in the next 2 weeks before MPs break for
Party Conferences which start with the Labour conference on 24
September;
The first step will be consultation on the determination (including formula
and assumptions). However there will be no consultation on actual
thresholds for what constitutes higher value (HV);
The second step will be to lay Regulations. This will be an Affirmative
Decision which means Parliament can comment but is expected to agree
them;
Civil servants said Ministers are keen to ensure delivery of additional homes
and may take the opportunity to align any HV sales agreements with Right
To Buy (RTB) agreements;
Voluntary RTB for Housing Associations/Registered Providers (RP) may be
launched January 2017 and if Council funding is not coming through by
then, Treasury will forward fund and recover the income later;
If any RP does not offer their tenants the RTB, they may be required to give
tenants another homeownership offer.

6.2 Pay to Stay

The government is still planning to implement this from April 2017 despite
this being a very challenging target;
Ministers could go straight to Affirmative Decision to save time;
There will be a test in the Regulations, so that some areas could be
exempted, where it can be demonstrated that there will be very little income
after administration costs have been deducted;

4/6
 Some Councils have submitted estimated set up and running costs to
DCLG but there are significant variations. DCLG were impressed with the
model being used by Nottingham City Council [Note: we have acquired a
copy of the model and are reviewing it with RBKC officers];
DCLG is talking to IT suppliers themselves to verify likely costs;
Contact with tenants will be crucial. Statutory guidance will probably require
at least one direct contact with a tenant before they are moved up to a
higher rent.

6.3 At this stage RBKC and TMO have not agreed how to take this forward but at a
recent meeting we agreed to start a working group to work through the detail.

6.4 End of lifetime tenancies

DCLG is currently drafting guidance on different lengths of fixed term

tenancies;
Councils are asking for more time to implement the new tenancies;
Ministers may agree to consult on guidance and Regulations although
they dont have to;
This is not relevant to RBKC as they have already introduced new
tenancies.

6.5 Other issues

Housing Companies DCLG may undertake a survey shortly to find out

more about why Councils are setting up these companies, what the
governance arrangements look like and the plans for developing including
tenure mix.

Homelessness prevention there is a Private Members Bill going

through Parliament to put more onus on Councils to do preventative work.
Government has not yet decided if it will support the Bill.

7. BOARD ELECTIONS AND AGM OUTCOME

7.1 The Board agreed last year to make a number of changes following the 2014/15
election and AGM. This was to address a drop in candidates and voting at the
election and AGM from the previous year and complaints from members the
AGM was too late in the day.

7.2 I am pleased to say that the elections were a resounding success with 10
candidates standing (4 Leaseholder and 6 Tenants) for six places. The
membership turnout was 1,760 out of a membership of 5,100 which was a 35%
turnout. This was better than last year and compares well with RBKC local
elections where only one ward in the borough achieved that level of turnout.

7.3 The AGM was well attended and overall members appeared to be happy with
the early start. The number of members voting was 1,200 which is our highest
5/6
 ever figure, up from 724 the previous year and more than our previous highest
of 1,089 which we achieved in 2014. This reflects a growing trend over the years
from a low of 91 in 2009 but growing year on year (209,468 and 681).

7.4 The voting on to continue to manage the homes was excellent with 98.3%
voting to continue. This was in line with the previous year.

7.5 The conference was attended by 467 Residents and Children and overall
feedback has been positive so far.

7.6 In conclusion the decision by the Board to make the changes were a success
with increased voting at both the Elections and AGM and continued high support
for managing the homes and the recommendations would be to continue this
format.

6/6
ITEM 9
 Agenda Item: 9

THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA

TENANT MANAGEMENT ORGANISATION LIMITED

Open

For information

Board

Report title: Board Performance Report Quarter 1 2016/17

Authority for decision: The Board has ultimate responsibility for the
performance of the organisation.

Recommendations: That the Board note the contents of the report.

Regulatory/legal The Board has a duty to promote the success of

requirements: the Company by monitoring its performance
against the agreed KPIs.

Business Plan link: Delivering organisational competence.

Equality Impact There are no equality implications.

Assessment/comment:

Resident consultation: The Performance Indicators and Business Plan

have been developed with the full involvement of
staff, management and the Board, and in
consultation with residents, key stakeholders, and
partners, of which the Royal Borough is
paramount.

Resource implications/VFM We are committed to achieving top quartile

statement: performance with value for money.

Risk: A decline in organisational performance could

result in reputational risk and action from RBKC.

Appendices: 1
Total number of pages
including appendices: 12

Name, position and contact Yvonne Birch

details of author: Executive Director of People & Performance
020 7605 6478

1/6
1 Introduction

1.1 The attached report gives an overview of the performance of the TMO
in key business areas during the period April to June 2016.

2 Strategic performance indicators

2.1 The traffic light indicators use the usual colours to indicate the status of
the year to date performance against target.

2.2 All the performance data is validated by an accountable manager and

enables staff to monitor trends and make improvements, where
necessary.

2.3 Where benchmarking information is shown, unless otherwise indicated

this will be for our HouseMark peer group, the London ALMOs and
local authorities club.

3 Repairs Direct

3.1 Repairs Direct has continued its focus on key performance measures
and it is encouraging to end the first quarter with a full set of green
results.

3.2 In particular, the percentage of emergency repairs completed in target

has continued to increase and now stands at 99.54%, surpassing all
quarterly performance for 2015/16. At 9.5 days performance for the
new KPI, Average days to complete a responsive repair has also
achieved the set target.

3.3 The team will continue to ensure attention is focused on continuing

improvements in order to continue this pattern and create a robust and
steady run of positive results.

4 Voids & lettings

4.1 The average time to re-let a general needs minor works void in quarter
1 was 22.0 days, meeting the target of <=22.0 days.

4.2 Performance fell below target in May and June due to delays on a
small number of voids. These delays relate to delays with applicant
verification by RBKC Allocations and requirements for second viewing
bookings following declined offers.

4.3 Void loss stands at 0.87%, above the target of <=0.75%. This higher
than expected void loss relates to an increase in the percentage of
voids requiring major works before letting. This has also subsequently
impacted on the number of current voids.

2
4.4 The higher than average number of terminations during the quarter will
have also had an impact.

4.5 Current voids progress will be closely monitored over the coming
months to ensure that the drop in performance outcomes is addressed.

5 Gas servicing

5.1 At the end of June there was only one TMO property without a valid
gas safety certificate (99.98%). A warrant has been issued for this
property and a forced entry has been planned.

5.2 Warrants continue to be sought where access is unreasonably withheld

and the No Access policy continues to operate effectively.

6 Rent collection

6.1 Current tenant rent arrears ended the quarter at 1,018,417 against a
target of <=1,035,082; a strong start to the year.

6.2 With arrears 17k ahead of target, our PI outputs for Arrears as a
percentage of rent roll and the Number of tenancies with arrears of
over 7 weeks rent are both meeting and exceeding set targets.

6.3 The result for Rent collected as % of rent due is showing as below
target but this is due to a large number of rent refunds processed at
Lancaster West following the heating charge rebate. These refunds
sent a number of accounts into credit, therefore resulting in no
payments needing to be made until the credit is used.

6.4 We are reporting the number of households in receipt of Universal

Credit (UC) for information, together with their combined arrears
position. At this point our arrears levels have not been severely
impacted due to the low number of live UC cases.

7 Homeownership

7.1 Service charge arrears at the end of June did not meet the target of
<=136,391. Although this is disappointing we fully expect to claw this
back during the year.

7.2 We are currently reviewing where there may be blockages in order to

resolve any issues and thus reduce arrears to within target.

7.3 As with the last financial year, the issues around RBKCs financial
system (Agresso) remain unresolved and this is still causing a
multitude of problems. We are continuing to ensure that measures are
in place in order to try and minimise the impact.

3/6
7.4 Major works arrears have met and exceeded the target for June; this is
extremely pleasing and a great start for the year. As with service
charges the issues with the Agresso system remain.

8 Anti-social behaviour

8.1 During the first quarter 85 new ASB cases were reported to the TMO.
The number of new ASB cases reported in the period is lower than in
the same period in 2015/16, but an increase on the previous two
quarters.

8.2 As with previous years the most common type of ASB reported is noise
nuisance, currently accounting for 43% of live cases.

8.3 Following the launch of CRM in late May, there were more new cases
reported in June than April and May combined. This is in part likely to
be due to seasonal ASB but it is very pleasing to see this increase
happen after launching the CRM ASB case management system as it
confirms that the system is being well used.

9 Resident engagement

9.1 During Quarter 1 all targets for key resident engagement performance
indicators were met.

9.2 Information on some of our key Resident Engagement activities from

the quarter are summarised below.

9.3 Residents associations & compacts

9.3.1 Four new resident groups were established between April to June at
the following locations.

63 Finborough Road
Hereford House
Redcliffe Square
Chesterton & Broadwood Terrace

9.4 Youth Engagement Project

9.4.1 The Youth Engagement project engaged with 77 new young people
during the first quarter, bringing the total number of young people
engaged since the project launch to 327.

9.4.2 A number of initiatives were delivered during the period, including a

Bikeability Level 1 training session, a residential trip to an activity
centre, and a number of sports sessions.

4/6
9.5 Get on Board roadshow

9.5.1 The first of this years roadshow events, under the banner of TMO
Live, was held on Saturday 14th May at the green at Grenfell Tower on
the Lancaster West estate.

9.5.2 This new series of roadshows, we well as continuing the focus on

employment and training, welfare reform and money management, has
an extended remit providing an opportunity for the TMO to showcase
and promote service delivery.

9.5.3 The TMO continues to be supported at these events by local service

providers and agencies, including two of our new health providers:
Depression Alliance and Healthy Hearts.

9.5.4 A total of 287 residents and children attended the roadshow, making
this the most well attended roadshow event to date.

10 Customer Service Centre

10.1 In the first quarter the Customer Service Centre answered 95.15% of
22,618 calls, of which 70.72% were answered within 30 seconds,
meeting both key KPI targets for the period.

10.2 There was a marked increase in calls during June which we believe is
linked to the switch off of all communal heating systems which
traditionally generates increased customer contact. This coincided with
unseasonably cold weather for the period.

10.3 During June there was also a drop in the percentage of calls answered
within 30 seconds. This can be explained by the expected increase in
call handling time since the introduction of CRM in late May.

10.4 In May we also launched a satisfaction survey for callers to the CSC.
Quarter 1 results show that 66.31% of callers were satisfied with the
overall service.

10.5 A review of the first quarters feedback comments shows that some
customers have reported that they were put through to the survey when
they became disconnected from the customer service advisor before
their call was completed.

10.5.1 We are currently analysing whether a system error caused customers

to be disconnected whilst on hold and we will be contacting
dissatisfied customers directly about their call experience.

11 Complaints

11.1 During the first three months of the year 109 new complaints were
logged by the TMO, comparative to the previous two quarters.

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11.2 In the same period 110 complaints were closed, with 90% closed at
Stage 1.

11.3 Performance for the percentage of complaint responses sent out in

target fell below target to 87.63%.

11.4 This fall in performance coincides with the launch of the new
complaints process within CRM and is linked to staff learning how to
generate responses in the new system as well as ensuring they
continue to manage responses on older existing cases on the W2
system.

11.5 Work has been undertaken since the launch to develop and improve on
the information available to managers via CRM system dashboards
which provide managers with live information on complaints cases.
This will ensure managers are fully able to take responsibility for
ensuring response and action deadlines are met.

12 Membership

12.1 There has been a positive start to the year in terms of the recruitment
of new TMO Members, with 134 signed up for the year so far. This
compares to 80 for the same period in 2015 and 35 in 2014.

13 Recommendations

13.1 The Board is invited to comment on the contents of this report.

6/6
BOARD KPI REPORT
QUARTER 1: 2016-17
BOARD KPI REPORT - QUARTER 1: 2016-17
Repairs & Maintenance

Target Upper
2015-16 Q1 Q2 Q3 Q4 2016-17 Status Target
for Qtr quartile
Responsive repairs
Emergency repairs completed in target 97.86% 99.54% 99.54% >=99% NC
Void repairs completed in target 97.76% 100.00% 100.00% >=90% NC
Recalls as a % jobs completed 0.95% 0.67% 0.67% <=5% NC
Post inspection pass rate (Quality) 92.25% 93.75% 93.75% >=90% NC
Customer satisfaction 97.14% 95.88% 95.88% >=95% 93.7%
Average days to complete a responsive repair New PI 9.5 9.5 <=12

Voids & lettings

No. General needs lettings (minor and major) 199 45 45 Info
Average number of days to re-let a general needs
home where minor works have been undertaken 18.69 22.00 22.00 <=23.0 21.10
(calendar days)
Void rent loss as % of rent roll (YTD) 0.73% 0.87% 0.87% <=0.75% 0.84%
Available voids at month end 50 58 55 <=40 40

Compliance
% properties with valid Landlords Gas Safety
100.00% 99.98% 99.98% 100% 100%
Certificate (LGSR)
Number of homes without a valid LGSR 0 1 1 0 NC
Number without LGSR for >3 months 0 0 0 0 NC
Customer satisfaction 98.9% 99.3% 99.3% >=95% NC

Capital programme
Number of homes brought up to the KCTMO
933 - - 1400 NC
standard internally (annual PI)
Number of homes brought up to the KCTMO
120 - - 1950 NC
standard externally (annual PI)
Number of homes where SAP rating has increased
120 - - 300 NC
through planned works (annual PI)
Actual capital spend 11.878m 1,887,356 1,887,356 11.5m NC

Actual capital spend as a % total annual budget 103.3% 17.2% 17.2% >=99% 30.4% NC

19/09/2016 09:47
BOARD KPI REPORT - QUARTER 1: 2016-17

Income Collection

Target for Upper

2015-16 Q1 Q2 Q3 Q4 2016-17 Status Target
Qtr quartile
Current tenant arrears

Rent collected as a % rent due (excl arrears b/f) 101.07% 97.37% 97.37% >=100% - 99.49%

Gross current tenant rent arrears (millions) 1.035 1.018 1.018 <=1.035 <=1.035 NC
Gross arrears as a % rent roll 2.02% 2.00% 2.00% <=2.02% - 2.06%
Percentage of tenancies with arrears of more than
4.38% 4.38% 4.38% <=4.5% - NC
seven weeks
Arrears - social sector size criteria households 76,318 63,912 63,912 Info

Arrears - Universal Credit New PI 14,357 14,357 Info

Former tenant arrears

FTA cash collection 81,487 19,621 19,621 85,000 21,249 NC
FTA write off 696 0 0 Info - -
FTA housing benefit collection 14,521 -1,127 -1,127 Info - -

Homeownership
Collection rate - service charges 141,705 144,320 144,320 120,449 136,391 NC

Collection rate - major works 1,151,217 1,215,265 1,215,265 1,715,516 1,292,292 NC

19/09/2016 09:47 Page 2

BOARD KPI REPORT - QUARTER 1: 2016-17
Neighbourhoods & Community

Upper
2015-16 Q1 Q2 Q3 Q4 2016-17 Status Target
quartile

Grounds maintenance & cleaning

% grounds maintenance inspections achieving
98.52% 98.91% 98.91% >=97% NC
required standard
No. cleaning callbacks 281 53 53 <=30 p/m NC
No. quality assurance failures 0 0 0 Info -

Anti-social behaviour (ASB)

No. new ASB cases reported 301 85 85 Info -
No. live cases at end of period 125 137 137 Info -
% complainants satisfied with handling of case 64.94% 68.75% 68.75% >=81% 68.7%
% complainants satisfied with outcome of case 64.94% 62.50% 62.50% >=81% 79.9%

Resident engagement
No. new members joining Childrens' TMO 139 56 56 35 NC
No. new members joing Youth TMO 60 22 22 45 NC
No. new Residents Associations or Compacts 10 4 4 10 NC
Attendance at residents' conference 405 - - 425 NC

No. attending training & employment road-shows 329 287 287 180 NC

Community Alarms Service (CAS)

Total calls handled 104276 21911 21911 Info -
% answered within 60 seconds 96.87% 98.04% 98.04% 95.0% NC
% emergency visits attended within 45 mins 96.90% 98.50% 98.50% 95.0% NC
Customer satisfaction 98.44% 99.66% 99.66% 95.0% NC

19/09/2016 09:47
BOARD KPI REPORT - QUARTER 1: 2016-17
Customer Contact

Upper
2015-16 Q1 Q2 Q3 Q4 2016-17 Status Target
quartile
Customer Service Centre
No. incoming calls received by Contact
87955 22618 22618 Info
Centre
% answered 93.69% 95.15% 95.15% >=90% 93.58%
% calls answered within 30 seconds 71.6% 70.72% 70.72% >=70% NC
No. Reporting Repairs emails actioned 10341 2079 2079 Info

19/09/2016 09:47 Page 4

BOARD KPI REPORT - QUARTER 1: 2016-17
Corporate

Target
Upper
2015-16 Q1 Q2 Q3 Q4 2016-17 Status Target for
quartile
period
Complaints
No. new complaints 427 109 109 Info

No. Stage One responses 382 97 97

% answered in target 92.41% 87.63% 87.63% >=90% NC

No. Stage Two responses 34 2 2 Info

% answered in target 85.3% 100.0% 100.0% >=90% NC

No. Appeals 5 0 0 Info

% undertaken in target 60.0% - - >=90% NC

Governance
Percentage Board attendence at
78.2% 73.3% 73.3% Info
meetings
No. new members signed up 500 134 134 >=500 136 NC
No. members voting in AGM 724 - - >=800 749 NC

Human Resources
Total staff (headcount) 205 217 217 Info
Average number of days for
sickness absence per FTE (rolling 6.44 5.30 5.30 <=5.5 6.17
12 months)