From what I've seen when I visited about 5 min ago, your repairer seems to be working now. You might want to add another couple levels of repair research to be on the safe side before you focus on service research, but you seem to be on a good way now. I suggest you KEEP the repairer 3 and just buy a replacement for whoever lent it to you (so that you don't lose the repair research again).
![Wink ;-)](./images/smilies/icon_e_wink.gif)
But as far as I can see, you won't be able to actually increase settlement morale in the short run. Having the CAIC and keeping your settlement hp up should prevent any further (major) drops in morale, but that's it I believe...