SUMMARY

Within the London Area, analogue TV transmission will be replaced with digital services in 2012 (digital switchover). This report sets out the recommended strategy to procure communal aerial systems. The proposed arrangement will cover the installation of a digitally-compliant communal aerial and three satellite dishes to each block, using an IRS (Integrated Reception System) capable of receiving digital television, radio, and satellite services. Works will be inclusive of system wiring and outlet points within each property.

This will allow residents of Hackney's blocks (three stories and above) not only to receive high quality digital TV and radio reception but also additional pay-to-view digital satellite services from the three most popular satellite service providers. These were indicated in a consultation process conducted with residents in June 2008. In addition, the installation of digitally-compliant communal aerials to Hackney's blocks will mean that their residents should no longer need to maintain or install an external satellite dish and this will have consequent environmental benefits.

It also confirms our participation with the London Area Procurement Network (LAPN) consortia in partnership with other London ALMO's with the intention to jointly procure a framework agreement for IRS installation. This route was chosen because of the VfM benefits that a joint procurement process could offer in terms of volume purchasing and pooling of procurement resources.

The proposed funding mechanism is to prudentially borrow the contract sum(s) from the Public Works Loan Fund (PWLB) with repayments of principal and interest on the reducing balance of the outstanding principal amount recouped from resident service charges over a 10 year period. These are projected not to exceed the equivalent of £1.50 a week.

Business case

Upgrade existing analogue/install new communal aerial systems to blocks managed by Hackney Homes with an Integrated Reception System (IRS in order to enable residents of those blocks to receive high quality digital reception and to subscribe to three additional satellite channels: Turk Sat, Hot Bird, as well as Sky;

Hackney Homes intends to participate in a London Area Procurement Network (LAPN) tendering process to put in place an EU-compliant pan-London framework agreement from which IRS can be procured.

The business case summarised is to fund programme contract costs from a prudential loan from the Public Works Loan Fund (PWLB) recouped from resident service charges over a 10 year period.

Related decisions

Hackney Homes Procurement Board approved business case for the proposed installation of IRS to blocks included in the Communal Aerial 08/09 capital programme.

Hackney Homes Procurement Board, noted intention for Hackney to procure IRS through participation in LAPN framework.

Hackney Homes Audit and Finance Committee, commended recommendations of this report.

Hackney Homes Resident Liaison Group, supported the outline strategy, to

provide a communal IRS facility, to all residents' homes (tenant & leaseholder),

and that this would be financed through a proposed weekly service charge.

Introduction of goods, services and works requirement

Within the London Area, analogue TV transmission will be replaced with digital services in 2012. Upon switch over, the technical obsolescence of Hackney's communal block aerial systems that have not been yet upgraded to become digitally compliant will mean that their residents will not be able to receive the new digital TV services. This is because the current digital signal is being transmitted at 15% of full strength (any higher than this would mean the existing analogue signal would be blocked out), but with switchover in 2012 the signal strength will become 100% and some aerial systems will not be able to down-size the signal to the point that a picture can be seen.  Hackney Homes would like to make sure that all residents will be able to receive broadcasts once switchover happens. Certainly, residents currently living in blocks without a communal aerial system will not be able to receive the new TV digital signal (and hence any TV service at all) unless they provide their own externally erected digital TV aerial or satellite dish in conjunction with either the digital decoder box or Integrated Digital TV set (IDTV) that is required to unscramble the new digital signal.

In that light, the proposed arrangement is to install a communal aerial system to Council dwellings located in blocks that are three stories and over using Integrated Reception Systems (IRS) that are capable of receiving digital television, digital radio and satellite services. This will enable residents of these blocks to receive Digital TV and radio after 2012 without the need to provide their own aerial or satellite dish, although they will still need to provide a digital decoder to access Freeview, digital radio channels and/or Freesat services unless they possess an IDTV. Furthermore, the IRS system will allow residents who wish to access three additional pay-to-view satellite services, Sky, Turk Sat, and Hot Bird to do so by connecting their decoder boxes to the new outlet point that will provided to each property.

Local authorities are being advised that when they install the new digital aerial equipment they install the one which allows a foreign satellite connection.  This will save time and money because a separate foreign satellite adaptation on the roof will not be needed at a later date. The aerial/satellite dish system being provided, permits reception of Turk Sat and Hot Bird, as well as Sky. To provide any other satellite services, would require extra dishes, in addition to these three. This negates residents having the install their own satellite dishes, unless they want to use a satellite service additional to the three listed above.

Through the installation of IRS, residents who have installed a digital encoder in order to access freeview channels will also be able to receive digital radio channels. When the proposed communal IRS system is installed and combined with an individual digital encoder box, residents will secure immediate access to available digital radio channels.

The situation regarding blocks of less than three stories in height is still under review as the installation of IRS aerials on these blocks presents planning and technical issues, such as the need to install aerials & satellite dishes external to the block, in order to avoid signal interference. Those properties have not been included within this proposal, and once the planning & technical issues have been addressed, they will be added towards the end of the proposed contract.

SUMMARY OF THE BUSINESS CASE

Hackney Homes is presently replacing existing communal aerial systems on all blocks that currently have them in order to allow their residents to receive the new full strength digital signal. As at July 2008, works to install IRS to blocks comprising 1,897 properties had been completed. A further 777 properties will be completed by the end of this financial year.

Excluding blocks subject to future regeneration schemes, this leaves an expected

19,368 properties located in blocks above three stories and above in height

without an IRS connection.

Strategic Context:

The proposed procurement will allow residents to access digital TV and radio services including pay to view satellite services in a cost effective way without the need for them to maintain an existing or install a new external individual satellite dish or a new digital TV aerial, with consequent external environmental benefits.

Whole Life Costing/Budgets:

Capital programme resources are not available. As the installation of IRS will directly benefit residents of the blocks where it is provided it is proposed that prudential borrowing from the Public Works Loan Fund (PWLB) is used to finance the capital cost, with the repayments of principal and interest recouped from resident recharges over a 10 year period. The asset life of IRS systems is expected to exceed that period.

Stakeholders:

All Tenants and Leaseholders were encouraged to submit their views on the

proposals for the introduction of IRS, through a free post card. Those views were

received back by the 31^st March 2008.

A stand at the Hackney Homes, Residents Open Day, held at The Ocean, Mare

Street, which was attended by many hundreds of residents, also gave information

on the IRS and received residents views.

The Hackney Homes Residents Liaison Group meeting was consulted on the principles and benefits of the IRS and have resolved that Hackney Homes should pursue this project.

Formal and statutory Leaseholder consultation commenced in June 2008.

Hackney Homes News which is sent by post to all tenants and leaseholders included a free post insert card that invited resident views to be submitted. At the time of writing this report, 1,380 responses had been received.

44% of respondents wanted access to Digital TV, Freeview and Digital Radio Services. A further total of 36% respondents, wanted access to the three Satellite Services (Sky at 27% and Hot Bird & Turk Sat; approx 5% for each) that were indicated in the consultation material. The remainder either did not specifically respond or suggested a further ten Satellite options, plus cabled TV from Virgin Media. This last option would also require each resident to sign-up for and pay a monthly subscription fee for an appropriate Virgin Media package.

Hackney Homes did consider and research other options including provision by

digital and satellite providers themselves. A major cable provider advised that they were unwilling to extend their existing cable network system and would only connect to residents located within a block that already had their cabled system installed and were willing to take one of their standard packages.

Cabled and also satellite services have not been taken-up in the numbers that were originally envisaged by the private sector. There is no evidence that a provider would finance the installation of IRS to blocks over three stories high in a low household income area such as Hackney.

In response to the question, of a weekly service charge being levied, to pay for

the installation of IRS; 55% of respondents replying said that they were willing to

pay up to £1.50 per week. Currently no resident (tenant or leaseholder), pays

any weekly service charge, for the provision of a communal aerial

In relation to the total number of respondents; 78% indicated they were tenants

and 20% were leaseholders. A further 2% gave no answer to that question.

In response to a question, as to whether residents would remove their existing TV

aerial and or satellite dish. 56% said they would, compared to 29% saying they

would not.15% of respondents did not give a response to this question.

A Leaseholder Schedule 2 Stage One notice and FAQ was issued to all

leaseholders resident in blocks subject to the proposed LAPN procurement.

Equalities Issues:

Hackney Homes has taken into consideration, the viewing needs of our very wide and diverse communities, within the Borough. It has made specific provision, for the 3 most popular satellite dish services; two of which (Turk Sat and Hot Bird) are targeted towards our largest ethnic communities; Turkish and East European speaking residents. The choice of these has been directly informed from the 1,380 resident survey responses This confirms that 10% of residents require those 2 options, on the basis of approximately 5% for each satellite service.

Environmental Issues:

With the advent of satellite services, many residents have installed their own

satellite dishes, which can cause and has caused damage to the building

fabric and the roofs of Hackney Homes housing stock. They are also unsightly

in environmental terms, and due to the large numbers that have been erected,

they have breached national planning policy guidelines. There are also

conservation area and listed building planning issues as well. Hackney Homes

residents that have contravened these, have been required to remove the

offending satellite dishes.

Given that satellite services will be available through the new communal aerial system it will be reasonable for the Council to require individual satellite dishes to be taken down where they breach national and local planning guidelines. Individual dishes are not always securely or properly fixed and can damage the building; this can lead to neighbour disputes and are in breach of national and local Planning Regulations.

The results of the residents' survey, from 1,380 respondents, have indicated that 56% of residents would remove their existing TV aerials and or satellite dishes, if we installed IRS. This is compared to 29% who would not. A further 15% did not give a view.

Success Criteria/Key Drivers/Indicators:

The Under Secretary of State, Communities and Local Government, Baroness

Andrews issued guidance and a checklist to Local Authorities on 14th May 2008

concerning the implications for the tenants and leaseholders of council retained

housing stock of issues of communal TV aerial systems.

This report and business case, directly addresses those questions, which are:

Through Hackney Homes providing a practical and integrated reception system,

this will meet the needs and aspirations, of all our tenants and leaseholders.

For those tenants that are in receipt of either full or partial Housing

Benefit, the proposed service charge for the IRS would be an eligible

amount.

The eventual removal of the excessive numbers of satellite dishes and TV

aerials that have been erected upon our blocks of flats will have a very positive

environmental impact upon our housing estates, whilst at the same time,

complying and meeting the national planning guidelines.

Housing Quality Network (HQN) has been set-up as a UK nationwide

subscription service, which currently has over 680 members, who are social

housing providers. They include most of the largest local authorities and housing

associations in the UK.

Hackney Homes is a member, along with many London and national ALMO's.

HQN are managed through an annually elected Advisory Group of 16

representatives, who are senior housing officers, within their respective

organisations.

They issue regular papers and reports on housing and related issues; including

summarising forthcoming government initiatives and legislation. They also issue

good practice guidelines, and in that respect, issued in June 2008, a “best

practice preparation guidelines for Digital TV transmissions in rented housing”,

to all its member organisations. This was based on Arena Housing Ltd, one of

the member organisations that has 14,000 properties, located in the North of

England (where the Granada regional Digital TV switchover date is 2009), and

had implemented an Integrated Reception System (IRS) that is similar to the

one that we are proposing to implement. As a direct result of their work in this

area, they have also been given a “Homes set for Digital” Certification Mark, by

Digital UK.

We are actually mirroring that example, in most aspects, but Arena had only

included Sky, as part of their IRS system. They are funding the IRS through

Planned Maintenance budgets, with the cost being passed on to tenants and

leaseholders, through a service charge spread over 15 years.

Options:

The three main options are, first, to allow residents of blocks to make their own arrangements; second, for Hackney Homes to procure IRS independently; and, third, for IRS to be procured using joint procurement arrangements.

Preferred Option:

Option 1 would require residents to purchase their own digital-compliant aerial equipment, which, for many, would involve them installing or maintaining external satellite dishes with consequent planning and severe adverse environmental impacts. The installation of digital-compliant communal aerial systems will benefit everyone on the block who wishes to watch television and receive FM Radio and Digital Audio Broadcasts (DAB). Subscribers to cable TV (e.g. Virgin) will also have a far greater freedom of choice for television viewing, given that they will be able to receive all free to air digital services (Freeview/Freesat and Digital Radio) and also have the ability to receive subscription satellite services via the new system without having to install a separate dish. Existing cable TV systems will not be removed.

We are proposing to use the third option, the LAPN joint procurement route.

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Agenda Item …

v 08/07

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