Agenda item

[Report of the Director for Housing, Regeneration and Planning. To be introduced by the Cabinet Member for Housing and Estate Renewal.]

This report relates to the ongoing works to install a new modern District Heating system on Broadwater Farm. This report seeks to extend the existing contract to allow for additional works to be completed

The Cabinet Member for Housing and Estate Renewal introduced this report which sought approval for additional funding for variations to the Broadwater Farm District Heating contract which was approved by Cabinet on 14 August 2018.

The Cabinet Member noted that since the health and safety issues at Broadwater Farm became known, the Council had taken action to manage the risks and ensure the safety of residents. This included the replacement of all gas cookers, estate wide door knocking and engagement, the fitting of gas interrupter valves and the decant of two blocks. This report related to the ongoing works to install a new modern District Heating system on the estate. Since the inception of the project, officers had identified a number of enhancements to the programme to improve outcomes for residents and the quality of the upgraded heating system. These are detailed at paragraph 6.7. This report sought to extend the existing contract to allow for these additional works to be completed.

In response to questions from Cllr Connor, the following information was provided:

• The decant of Northolt block had started but completion would not be according to the same level of urgency as Tangmere.This was due to there being no piped gas in this block
• Disruption to residents was acknowledged by the Cabinet Member. This was further acknowledged to be a really challenging time for residents in Broadwater Farm with different works taking place at the same time. The Council were regularly exchanging information with residents and making sure information was available on the works and their impact. Ultimately, the Council had to ensure all the tenants were living in safe homes. There was a need to be realistic with residents about the scale and timing of the works. In particular the enhancing works being completed on the heating systems was to ensure that additional works were not needed in 10 years’ time.
• In relation to thedecant at Tangmere Block, the latest information indicated that there were 12 leaseholder remaining. Homes for Haringey had agreed terms for moving 6 of the leaseholders. It was expected to agree terms with the remaining 6 leaseholders.
• Thedecant of Northolt Block had a longer timescale .This had started with 53 of 83 tenants moved or moving. There were 14 leaseholders, and Homes for Haringey had agreed terms with 1 leaseholder .It was noted that Homes for Haringey staff would be referring to the experience of Tangmere leaseholder decant and were confident of making acceptable housing offers to the remaining 13 leaseholders.
• Officers outlined that the new heating supply also provided an opportune time to replace some needed bathrooms and kitchens in Broadwater Farm. It was noted that 260 out of 830 tenants would have brand new kitchens or bathrooms or both by February 2020. The other works concerning the district heating system were due to complete in November. A further piece of work being included with the heating works, were changes to the cold water supply so that there was a single cold-water supply to people’s dwellings. These works would have been needed to replace stored water supply in tanks in roofs. Also fire stopping works had been the identified when completing survey works for kitchens and bathrooms and these works had been brought forward.

RESOLVED

1. Toapprove the variation of the District Heating contract with Engie LTD (formerly Keepmoat LTD) of an additional £5,531,172. More details of the variations required are set out in section 6.7 of this report.

2. To approve the additional consultancy fees of £180k as set out in paragraph 10.1 in this report.
3. To agree not to seek to recharge leaseholders their proportion of the cost of these works

Reasons for decision

The nine medium rise blocks on Broadwater Farm (Croydon, Debden, Hawkinge, Hornchurch, Lympne, Manston, Martlesham, Rochford and Stapleford) have failed structural tests for Large Panel System buildings.

To mitigate the risks, Cabinet gave authority to enter into the contract with the contractor on 14 August 2018. The work set out in the original contract was established following structural surveys which identified that it was not safe to have individual gas supplies within each flat on Broadwater Farm.

The project was divided into two substantive elements. Firstly, the Council was required to remove all gas supplies from flats and replace them with a new heating system by the end of October 2018. This deadline was set by the statutory gas body, Cadent (who have statutory responsibility for the provision of gas supplies) and required the switch over of 725 flats from gas to district heating over a six week period (this deadline was met last year).

The second element of the scheme was to complete the site wide distribution of the new energy network and upgrade the energy centre, from which the new network would be powered. The current forecast date of completion for this element is November 2019.

Due to the time constraints, officers focussed on developing a detailed strategic design for the heating system in the absence of some survey data, such as survey data within flats and survey data of the other mechanical and electrical systems across the estate

Since the project has commenced, a number of technical opportunities and constraints have arisen which have allowed Homes for Haringey to amend its approach. These have led to the variations in 6.7. The variations mean that Homes for Haringey will be delivering additional works for residents and reducing future disruption.

Alternative options considered

The option of undertaking this work under a separate contract was considered but was discounted on the basis that it would: -

• Prevent the technical completion of the existing agreed district heating contract. For example:
  • Fire stopping in flats is essential where compartmentation issues are identified
  • Renewal of floors where they have collapsed is essential to upgrade kitchens and bathrooms
  • Renewal of kitchens and bathrooms essential as re-piping of water pipes required removal of units. Due to condition some units are impossible to retrofit.
• Cost the council considerably more to deliver if separated out into different contracts. For example:
  • Returning to flats to complete kitchen and bathroom upgrades would require additional visits from contractors which would be an additional cost to the Council.
  • Similarly, returning to flats to upgrade water supplies to the bathrooms and separate WCs would require additional visits from contractors which would be an additional cost to the Council.
• Cause considerably more disruption to residents if delivered through a separate contract. For example:
  • Doing as much work inside people’s flats at the same time reduces the number of visits required to people’s flats and the amount of disruption each resident experiences. By upgrading all water supplies, kitchens, bathrooms and WCs where necessary, we reducing the number of times we are disrupting the residents.
  • Returning to flats to complete kitchen and bathroom upgrades would leave residents without essential services for an unacceptable period of time