Shared Services

In 2017, the Ottawa Social Housing Network (OSHN) successfully applied for a grant from the Ontario Ministry of Housing Innovation, Evidence and Capacity Building Fund. The purpose of this grant was to develop a shared services model. The model was to be developed in two phases. The first phase involved creating a plan for a pilot project to share services among housing providers in Ottawa. Phase Two is the implementation and evaluation of the pilot project to inform the development of the model for sharing services. SHS Consulting was hired for the Phase I work.

A number of project objectives were developed to guide the work for Phase One. These are the following:

• Develop an understanding of best practices to share services among housing providers in Ontario and beyond.
• Understand the current capacity among housing providers in the City of Ottawa to deliver services.
• Identify which services, among those currently provided, are most suitable to be shared among housing providers in Ottawa as part of the pilot project.
• Develop design principles to guide the shared services model.
• Develop an implementation and evaluation plan for the pilot project.
• Identify short- and long-term outcomes.

Phase I involved a literature review, survey, and engagement sessions.

The literature review environmental scan identified four approaches to sharing services among non-profit organizations. These include the following:

• Joint purchasing
• Creating a service management organization
• Consortium bidding
• Sharing resources

In general survey respondents indicated they were interested in working more closely together on service delivery in the future. A total of 21.2% of housing providers in the survey indicated they were very interested in participating in a shared services model while 50% were somewhat interested. A small group of 3.8% of housing providers in the survey indicated they were not interested in participating in a shared services model while 25.0% did not know if they were interested.

While this project is focused on developing a plan for a pilot shared services model, it is important to acknowledge that housing providers in Ottawa are already informally sharing services. Some examples include knowledge sharing, staff from one housing provider filling in when staff from another housing provider go on vacation, as well as agreements to purchase some services. In addition, the Ottawa Social Housing Network has fostered a spirit of collaboration among housing providers. With operating agreements coming to an end, the need for increased collaboration has been highlighted. While this impacts all housing providers, it is a particular issue for smaller housing providers.

Based on the results of the facilitated co-design sessions and the survey, the OSHN was advised to consider including the following services in the pilot shared services model:

• Snow removal – joint purchasing
• Day to day maintenance – shared service delivery
• Pest control – shared service delivery
• Unit inspections – shared service delivery

 

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Phase II of the project started in December 2018 and ended early July 2019. Deborah Howard Consulting was hired with a scope of work to:

• Develop updates to report on project progress
• Confirm pilot project participants and services
• Review potential shared service delivery models and make recommendations on the most feasible model for Phase III including:
  • Governance options and accountability framework for a permanent shared services model in Ottawa
  • A budget and job description/scope of work
  • A design for an effective evaluation process
• Develop a funding proposal and submit to potential funders
• Develop “Plan B” if funding is not possible or timely
• Develop a Final Report for JIWG.

All housing providers were emailed an update in January 2019 that included a summary of Phase I and what to expect in Phase II. An update on Phase I, II and initial work on Phase III was presented to housing providers at the OSHN AGM in June 2019. This Final Report to the Working Group was used to update MMAH – the Phase I and II funder, and to find new funding for Phase III.

By March 2019, OSHN had re-surveyed and confirmed the Phase I interest in establishing shared services for pest control, snow removal, day to day maintenance, unit inspections. The survey results included a range of types and sizes of organizations in all areas of Ottawa which is beneficial for a pilot phase.

Thirty-one percent (31%) of organizations responded to the Phase II survey specifically relating to the four (4) pilot project services identified in Phase I. Fifteen (15) organizations were identified as having an interest is participating in the pilot stage (first year) of the shared services project, and fifteen (15) more have an interest in joining after the pilot.

By April 2019 work on the Shared Services Delivery Model had progressed significantly including:

• Options for structure and processes for the pilot and long-term entity were developed and reviewed
• Phase III project goals, vision, outcomes, objectives and deliverables were developed
• The Phase III plan had been drafted with a preliminary budget and scope of work
• Governance options for oversight of the pilot and a permanent shared services model in Ottawa were discussed by OSHN
• Once the initial shared services are established, OSHN members plan to launch new shared services using several means of marketing as outlined in the Phase III Deliverables of this report.

By May 2019 funding decisions had been made:

• All typical funding sources were explored and OSHN determined that the best fit will be the CMHC Sector Transformation Fund
• This final report contained the majority of the information needed for completion of any funding application
• OSHN agreed to activate Plan B as the funding application timing is uncertain.

The Phase I research confirmed the importance of evaluating the shared services project to ensure the goals are achieved. By May 2019 the evaluation framework for Phase III was developed including:

• One survey had been designed to be used for both the baseline and semi-annual evaluation for the pilot project buyers
• An evaluation framework for the complete Phase III has been completed to measure progress of the project outcomes and objectives.

In June 2019 members agreed on and activated Plan B. The activities and timelines have been detailed, and assigned to members. JIWG members envision a gradual mental shift of HPs towards being part of a shared service. The plan is to start the pilot project without funding or a consultant including:

• Meeting with Sellers to discuss issues and options to offer services to interested Buyers Agreements will be developed for 2 services
  • Day to Day Maintenance and Inspections (1st meeting was June 11, 2019)
• Investigate joint purchasing for 2 services
  • Snow Removal and Pest Control
• Connect those organizations interested in buying services, discuss current issues and expected results. A ‘Buyers Meeting’ is scheduled for September 2019 so that Sellers can explain their offering to potential Buyers
• Request a Board Resolution/Executive Decision from Buyers to be approved at time of commitment agreeing to conditions including:
  • Complete a baseline and semi-annual surveys (Buyer Satisfaction Survey A)
  • Determine their organization’s goals for the service
  • Determine as best they can, an ‘as is’ baseline cost which should include current cost of outsourcing, number and cost of in-house staff hours, cost of materials and resources required
• Send all completed surveys to one member to be compiled; results are to be reviewed by the Working Group who can then recommend improvements. The buyer evaluation results will be used to grow more standardized contracts and processes in Phase III
• Update all providers. Marketing to new buyers and sellers
• Develop the funding application for Phase III when announced.

Plan B will transition into Shared Services Phase III when Phase III starts current shared services will not be part of Plan B, but can be transitioned into Phase III if applicable.

Login to access Phase 2 report

OSHN received a grant from the Community Housing Transformation Centre (CHTC) in 2020 to work on the Shared Services project for two years. This was Phase III of the initiative. Cahdco was hired as the Project Manager of Phase II. During this time, OSHN completed one-on-one engagement with housing providers regarding snow removal services, pest management, unit preparation, unit inspections, general buying and selling of services, and general maintenance services. OSHN created many resources to assist OSHN members on these topics. OSHN has also created this website as a result of the initiative.

Purchasing and Selling Services

OSHN conducted an open process for non-profits to declare their intention to sell or purchase services over several years. This involved hosting workshops, surveys, and numerous one-on-one meetings.

Through this engagement, affordable housing organizations noted that snow removal services, pest management, unit preparation, unit inspections, and general maintenance services were of top priority.

Pest Management & Unit Preparation

OSHN explored the feasibility of a joint pest management contract between multiple housing providers in Ottawa. The goal was to find cost savings for housing providers. Cahdco, as the Project Manager for Phase III, conducted one-on-one conversations with sixteen housing providers to learn about their past experiences with pest management services at their sites and determine what work OSHN could do to assist.

OSHN found that unit preparation was a key challenge. Nearly all of the housing providers told us that unit preparation can be particularly challenging for tenants, especially those living with mental illness or mobility challenges. Some of the providers used to contract Rideau Social Enterprises to help tenants prepare their unit. However, this company no longer exists. Many of the providers liked this service, especially because the costs could sometimes be covered under Ontario Works and/or Ontario Disability Support Program.

It was clear there is a need among the housing providers to help with tenant unit preparation prior to any chemicals being used on the units. OSHN responded to this need through discussions with the social enterprise, Causeway. OSHN conducted market analysis and based on this data, Causeway began to sell a new service: unit preparation services. If you are interested in purchasing unit preparation services, please contact Gregory Esnard gesnard@causewayworkcentre.org.

Causeway Unit Preparation & Cleaning

OSHN also heard from housing providers what key steps were integral to bed bug removal. OSHN collected all of the steps and created this Bed Bugs Best Practices document.

An additional consideration for pest management is the new City of Ottawa bylaw requiring an Integrated Pest Management Plan (IPMP). Below are resources to assist with creating an IPMP.

City of Ottawa IPMP Template

Finally, OSHN created the following documents to assist OSHN members regarding pest management:

Pest Management – Housing Provider Educational Material

Pest Management – Tenant Educational Material

Unit Inspections

A survey conducted in 2019 indicated that several housing providers expressed interest in purchasing unit inspection services. Cahdco proceeded with one-on-one conversations with four housing providers to understand where they are in terms of readiness to purchase unit inspection services.

Through these conversations, OSHN has connected several housing providers to purchase and sell services amongst each other. If you are interested in purchasing unit inspection services from a local, non-profit housing provider, please contact ottawasocialhousingnetwork@gmail.com.

General Maintenance Services

One-on-one engagement and follow-up surveys found that affordable housing providers in Ottawa wish to purchase general maintenance services that are of high quality at an affordable price. The preference is to purchase these services from another housing provider that is already conducting this work at their own units.

Affordable housing providers are seeking an affordable option to hire general maintenance services without resorting to hiring licensed technicians to do simple tasks. Many housing providers in Ottawa either do not have general maintenance staff or their staff are overwhelmed by the current number of work orders. During 2020-2022, housing providers have increasingly found it difficult to keep up with Work Orders (WO) for general maintenance tasks on their buildings. Several housing providers indicated that they have a large backlog in WO due to maintenance staff being unable to access units during the various lock-down stages of the COVID-19 pandemic. One-on-one engagement conducted by OSHN also found that many of the housing providers were not happy with the way their current general maintenance systems are set up, and seek a more refined, timely, and cost-effective process that offers a geographical reach that would serve all of their units.

At this time, the next step of the Shared Services project is to operate a pilot project for general maintenance services being shared amongst Ottawa affordable housing providers. So far, ten (10) affordable housing providers have expressed interest in purchasing general maintenance services from another housing provider. OSHN will put out another call for interested housing providers beyond these ten groups as the pilot is ready to be rolled out. If you are interested in joining the pilot, please contact ottawasocialhousingnetwork@gmail.com.

Joint Procurement

Snow Removal

OSHN conducted one-on-one conversations with 13 housing providers to gauge their interest in a joint contract for snow removal services and to learn about their past experiences with snow removal at their sites. Subsequently, in spring 2021, OSHN began coordinating snow removal contracts for the 2021-2022 winter season.

Fifteen housing providers interested in the pilot project. This demonstrates that many providers are interested in cost savings and willing to try out new projects and work with other providers to save on costs. Of those that were not interested for the 2021-2022 season, many requested to be included in a future pilot.

This pilot project had challenges outside of OSHN’s control. It was difficult to get snow removal contractors to bid on the work and of the bids received, none were cheaper than what the housing providers paid in the previous season. Therefore, the pilot project did not result in any cost savings for the housing providers. Some of the reasons for this included:

• To find cost savings, contracts should be for multiple years, not single year contracts. However, the housing providers wanted only one-year contracts to test out the pilot.
• Joint contracts often do not have the desired effect of cost savings. Other large housing providers in the City are finding this as well and actually dividing up their properties to do several smaller contracts instead of one large one.
• Housing providers should simplify the type of snow removal work they require.
• One-on-one conversations with snow removal companies can have a better chance of receiving a bid, as opposed to sending a large RFP.

OSHN created a best practices document when procuring snow removal services.

Snow Removal – Best Practices

Website

Thanks to the Shared Services Initiative and funding from CHTC, OSHN was able to create this web presence for OSHN members, and the general public. This website will be used to coordinate OSHN events, post resources to assist OSHN members, and connect OSHN members to purchase and sell services from one another.

Future Work

If your organization is interested in participating in the Shared Services initiative, or has an idea for work that OSHN has not considered at this time, please contact ottawasocialhousingnetwork@gmail.com.

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