Meakin Estate heating and hot water options

  1. What is the JMB consulting about?

How to provide heat and hot water reliably to residents; the options are:

  • Continue to patch repair the existing system
  • Limited replacement of key equipment
  • Phased replacement of the communal heating system over 3 years
  • One-off replacement of the communal system over seven months
  • Replacement of the communal system with individual heating systems.
  1. What are the parameters of the consultation?

The JMB’s heating consultant, David Miles, has produced an initial feasibility report to help the JMB and residents consider the options. This is an initial report and the technical advice will be developed as the project progresses.

The JMB can’t guarantee the reliability of the current system. Problems will only increase as the system gets older. It is not acceptable to ask residents to live with this. The JMB and Southwark need to find the money to tackle this.

JMB officers are committed to providing Meakin residents and the JMB board with the most comprehensive information possible.

All of the options, including trying to keep the existing system going, are disruptive and expensive.

The work should be undertaken during summer months. The earliest that the JMB can let a contract that complies with the law relating to spending public money and leaseholder consultation is April 2016.

The JMB wants a solution that is cost effective over 28 years, which is the time remaining on its self finance agreement with the council. Fuel costs are an important consideration, over 35 years the fuel costs are far greater than the installation costs. Also environmental legislation requires the JMB to seek the most energy efficient solution.

Fuel poverty (residents not being able to afford to heat their homes adequately) and the increased risk of condensation and ill health is an important consideration.

The ultimate legal responsibility rests with the JMB board, but as a resident run organisation their decision will be heavily influenced by the majority view of Meakin residents, at the end of this information sharing and consultation process.

  1. What is the time scale for consultation?

The proposed timescale is:

  • March-June 2015: Discussion with residents about theirpreferred option. Notify leaseholders of the intention to carry out heating works
  • July-September 2015: Detailed design work, with continued resident involvement
  • October 2015: Tender process i.e. potential contractors will be invited to bid for these works
  • November 2015: Tender evaluation and a notice of proposal to leaseholders specifying the cost of works
  • December 2015: Award of the contract to the successful contractor
  • January –April 2016: The contractor will order equipment, undertakes investigation and set up on site
  • May- October 2016: Work takes place, with acontinuing high level of resident participation.
  1. What does the JMB’s technical expert think?

The one-off replacement of the communal system is the best option. Principally because installing individual heating systems will be practically unachievable and costs more in the long term, as explained later in this report.

The installation costs contained in the report are budget estimates. The cost will change as:

  • More detailed design work is done
  • We competitively tender the work and decide on the contractor offering best value
  • The contractor starts work and further investigation takes place.

To give residents some idea of costs the current estimate for replacement of the communal system is £1,511,700 (plus fees) and the installation of individual heating (if feasible) is £980,024 (plus fees). Either cost could change by a couple of hundred thousand during the planning and implementation stage.

Fuel and servicing costs can be predicted with a degree of certainty. Over 35 years the communal system costs are £3,610,817 less than individual heating costs, after fuel, repair and servicing costs are alsoaccounted for.

The consultants estimate that phased replacement will cost 15-20% more. This is not good use of JMB or leaseholders’ money. However, a phased replacement will ensure that all of the work will be done in warmer months.

The consultants believe that partial replacement will not work. Parts of the system working more efficiently will expose problems on other parts of the system.

  1. What’s happened so far?

The estate was built in the 1930’s. The communal heating system was added as part of a modernization programme in 1975.

The heating system is 40 years old. The pumps have been replaced recently. An electronic management system was fitted in 2013. New burners and heating bundles were fitted in the mid 1980’s. The burners and bundles are now beyond repair. The main underground supply pipes are 40 years old, as are the radiators in residents’ homes.

There were significant breakdowns in October-December 2013 and again at the same time of the year in 2014.

In October – December 2013 there were problems rebalancing the system after the council installed a new electronic control system. The problem in October- December 2014 was the result of a fan failure taking out of action one of the two boilers and the need for an inverter driven pump.

With a modern system it is unlikely that these problems will occur. But if they do it is easier to limit the consequences with a modern system. The age of the Meakin system means it is really difficult to re-balance after a breakdown occurs.

During the heating breakdown of October to December 2014 our contingency planning included investigating the cost of hiring an emergency boiler. The weekly cost is £1,500, which would have been horrendously expensive to the JMB and leaseholders and still left us with problem of needing to replace the system.

The underground pipe work is 40 years old there is a high probability of underground leaks already and could fail at any given time. We cannot excavate around the pipes to investigate without significantly increasing the chances of a major burst.

  1. How much will leaseholders pay?

It is far too early to say with any degree of certainty. At the moment we are suggesting that leaseholders’ budget for costs of between £9,000 and £16,000. Resident leaseholders can pay over 3 years from the service of a notice of proposal.

  1. How disruptive will the work be?

Regardless of whether a new communal heating system or individual heating systems is favoured this is complex work. Detailed planning will be needed. The JMB will need to effectively identify and support vulnerable residents.

The work needs to done in warmer months April to October. We need to predict and plan for as many potential problems as possible. Contractually we will need to ensure the contractor has sufficient labor on site. Finally residents giving the contractor access when required will be critical.

  1. Can we continue as we are?

We can continue to react to breakdowns, but our consultants say that we’d be wrong to do this; the risk of another significant breakdown in the next few years is too high, especially if the underground pipe bursts.

  1. Can we do a partial replacement?

When we first approached Southwark for financial help, this is what they told us that partial replacement, rather than renewal, is what they have to do. Given that the council has experience of doing this we asked for a plan for Meakin estate, but have not received one.

Our consultant has advised us that most elements are beyond their recommended replacement date. Increasing pressure in one part of the system increases the chances of bursts somewhere down the line.

Our consultants tell us we would be ‘throwing good money after bad’.

  1. What does phased replacement involve?

As described in the David Miles report the communal heating system can be replaced over 3 years. The disadvantage is that this approach could cost 15-20% more. The advantage is it will be easier to ensure that the work does not stretch out in colder months. Also at the end of each phase we can review the lesson learnt, before moving on to the next phase.

  1. What does one-off replacement involve?

The communal heating system can be replaced as a one-off. A secondary system will be used to continue to provide hot water (and heat if necessary). Keeping the work to warmer months will require detailed planning.

If tightly planned the loss of heat and hot water could be limited to couple of days, and the loss of drinking water to a couple of hours.

It is estimated that heating efficiency can be increased from 50 to 94%. Individual residents will have more control over heating levels. An outside weather compensator will be installed so heating on demand can be provided all year round. Council tenants may have the option of deciding whether Southwark’s general heating charge or individual billing is the cheaper option.

The Meakin heating system at the moment, like most heating systems of the heating systems in the borough, is taken out of action by electrical spikes. The new system would be fitted with filters to limit this problem. Also the new system can be reset remotely, which will dramatically reduce down time.

  1. What would individual heating systems involve?

The advantages are residents will have individual control over their system. Breakdowns will affect individuals rather than the whole estate.

The issues highlighted by the JMB’s technical experts are:

  • The water and gas supply will have to be changed to accommodate individual systems. If co-operation from utility providers is needed this introduces a considerable level of uncertainty, as the JMB does not have a contractual relationship with them
  • Flats on Meakin were built to restricted 1930’s space standards. The issue is where an individual boiler can be placed. As kitchens are small, the living room or bedroom is the more likely option. There is then the cost of making good decorations
  • Due to the danger of carbon monoxide poisoning there are strict rules regarding flues. Residents could lose an open-able window to accommodate the flue
  • There is an issue of where to position the condense pipe. Also the possible consequence of condense on the existing drainage system as this is cast iron, which condense pipes should not be connected to. This problem could result in having to replace cast-iron drainage pipe work with plastic pipes across the estate
  • The difficulty of commissioning new individual heating systems, whilst keeping the communal system going for residents waiting for new individual heating systems.