Dear Customers,
This week’s media coverage of the Scoresby fire has, understandably, focused on the customers who have lost the most. We fully understand the frustration and sadness expressed by the customers who featured in the coverage and we are hearing you loudly and clearly.
We are disappointed that the media failed to provide any context about the complex safety constraints that have made this such a slow recovery and frustrating process for you. Some of the coverage blurred the very different positions our customers are in, and has left an impression about costs that is not accurate. We spoke in depth to the journalists involved and provided detailed responses, but sadly their coverage ignored most of what we told them.
This update sets out the facts plainly, so that every customer knows exactly where they stand.
1. Not everyone is in the same position
Scoresby has about 1,000 units. They fall into four groups (referenced in line with the site map above):
- Centre section (red zone), 84 units: beyond saving. These are the units where the fire burned and either destroyed everything or impacted it beyond salvage. Disposal of the remnants is at no cost to the customer, and there is nothing to pay.
- Centre section (red zone), 36 units: some goods may be recoverable. These customers were offered a choice: professional remediation of their goods (all of them, or only the items they choose), or free disposal. This is the only group of customers who have been offered anything that involves a cost, which applies only if they elect to proceed with professional remediation.
- Front section (blue zone): in much better shape. These units did not suffer the fire damage of the centre section, but they are impacted by heat, smoke, soot and/or firefighting water to varying degrees. They are being assessed unit by unit. Many will need some cleaning, likely of a far lesser order than the centre section, and others little or none. Customers in these sections have not received communications yet as assessments are still underway. Once finalised, each customer will receive a letter outlining the status of their unit and the next steps.
- Rear section, behind the fire wall (green zone): largely unaffected on what we have seen so far, subject to the hygienist’s confirmation. Please note that the green zone has now been expanded to represent the whole of the rear of the building.
We hope to have more updates on the rear section (green zone) in the coming days, with updates on the front section (blue zone) to follow.
Many people have asked why we can’t simply process the unaffected units first, which is a logical question. Nothing would make us happier than reuniting our customers with their property sooner rather than later. However under Knox City Council’s Building Order we have had to deal with the centre section first, and we cannot move on to the rest of the building until that work is done. This is not our decision but it’s one we have to respect because it is based on health and safety laws. If you have not received a letter from us about your unit, you are not in the centre section, the assessment of your unit has not yet been finalised, and nothing has been decided about your goods. The rest of the building is in much better shape, and we are seeking the approvals needed to move forward.
2. Why we cannot simply hand goods back
We understand that people just want their things. Many goods in the centre section look intact in the photographs, or look like they have a layer of soot that can simply be dusted off. But a photograph alone does not paint the whole picture. The independent safety experts, whose advice we are bound to follow, have told us that smoke and soot carry combustion residues onto everything in a fire compartment, including fabric, paper, boxes and furniture. Firefighting water carries them further. They have told us that these residues are a health hazard. Handled or taken home, contaminated goods can expose people, including children, through the skin, dust and the air they breathe.
That is why an independent occupational hygienist has set the health standard that goods must meet before they can be handled or released, and why it applies to every unit in the centre section without exception. The cleaning itself is carried out by a certified restoration company to the IICRC S700 Standard for Professional Fire and Smoke Damage Restoration, the recognised industry standard for this work in Australia, and an independent hygienist then tests the cleaned goods (post-remediation verification, or PRV) and certifies them before they can be released. Knox City Council’s Building Order prohibits anyone other than the approved contractors from entering any part of the building. This is not our choice. We cannot let anyone in to collect goods, because the Council’s Order prohibits entry to the building, and we cannot release uncleaned goods from that section to anyone, because of the health standards required to be met before they can be released.
3. Why remediation costs money, and what it pays for
Customers will not be asked to pay for the disposal of their goods. We built the remediation pathway as an additional option, at our own cost and time, because we want to do everything we can to achieve the best possible outcome for each customer. Remediation is specialist work, done by a certified restoration company, and the cost covers four things:
- Inventory: trained staff go through the unit, item by item, and record what is there and what can realistically be saved.
- Safe handling and transfer: the goods are packed and moved safely out of the contaminated section to a controlled work area.
- Specialist cleaning: each item is cleaned using the methods the hygienist has prescribed for combustion residues. This is not ordinary cleaning; it is the reason the goods can come back at all.
- Independent certification: the hygienist tests the cleaned goods and certifies they meet the health standard. This is a fixed, separately stated fee ($500 or $800 plus GST depending on unit size). Goods are released only when they pass.
Public Self Storage does not receive a cent of this. The contract is between the customer and the restoration company. We are not a party to it and we make nothing from it.
4. You are not being asked to pay out thousands
Reports of customers being told to “pay $10,000 to get their goods back” are wrong. No letter from us or from the restoration company contains that figure.
The cost is within your control. It is determined independently by you and the restoration company, not by us, and it is made up of three parts:
- Time and labour to inventory and sort your goods and determine what can be saved. This depends on how much you choose to remediate: you can elect only certain items, which reduces both the time and the cost.
- The cleaning work itself. Again, this depends on how much of your goods you choose to have treated.
- A fixed fee for the hygienist’s independent verification (PRV).
The figures of $4,000 to $6,000 and $6,000 to $8,000 plus GST shared with customers were broad ranges for the entire contents of a full unit and do not necessarily represent the actual cost. Your individual letter states the percentage of your contents assessed as restorable; that percentage, together with which of your goods you choose to have restored, determines what you actually pay. The restoration company provides a quote and terms first, and you can change your mind before work starts. The choice and cost is yours to control.
- You pay only for what is actually saved. If an item cannot be restored, you are not charged for it, and any deposit paid is refunded to that extent.
- Nothing is payable when you make your choice. The restoration company provides its quote and terms first. You can change your mind before any work starts.
- A unit that is full of goods in the contaminated section will, honestly, cost more to clean than a few items. That is the nature of the work, not a decision by us.
5. Insurance
Public Self Storage does not insure customers’ goods, and never has. This is standard across the self storage industry, as it is for hotels, car parks and airlines. It is stated at sign-up, in the Summary of Important Points, and in the self storage agreement every customer signs, which says clearly “Public Self Storage does not provide insurance for stored goods. Customers are fully responsible for any loss, damage, or theft and must arrange their own insurance if desired.” The agreement also asks customers not to store irreplaceable or sentimental items, or goods worth more than $2,000 in total, unless they are itemised and insured.
Many customers do have cover. Some home and contents policies extend to goods in a storage unit, and some customers took out specific storage insurance. Those policies commonly cover fire damage and the cost of cleaning and restoring goods. If you have a policy, contact your insurer now and give them our letter and your unit photographs; we will provide a letter for your insurer on request.
6. What has been reported, and what is true
- “PSS is holding goods to ransom.” This is incorrect. No customer is obliged to pay anything and free disposal is the default for the units that have been assessed to date. Goods cannot be released uncleaned because of a health standard and a Council Order. The remediation pathway is an extra option we created so that goods could be saved at all.
- “Customers have to pay thousands to get their goods back.” At this stage, only the 36 customers offered remediation face any cost, only if they choose it, and only for the items they choose. See section 4.
- “PSS should pay.” As we have explained in our previous communication, it is not feasible for PSS, or any storage company, to provide blanket insurance coverage for all customers. Every customer stores different items, and only the customer knows what they are storing and how much it is worth. The choice and cost of restoring goods is the customer’s, exactly as the goods are.
- “PSS has done nothing.” Since 3 July we have suspended all storage charges, refunded fees paid in advance, set up a dedicated support and recovery team, provided photographs for the units in the centre section, asked Council to extend the demolition deadline to give customers more time, dealt with numerous regulators and authorities and built the remediation pathway with an independent hygienist and a certified restorer. This has come at considerable cost to our business, but since the day of the fire we have been committed to go over and above what is contractually required. We have made all our decisions based on what we would expect or hope for if our own possessions were impacted.
7. Site security and trespass
On the evening of Monday 14 September, individuals breached our fencing, forced entry to a building and to a locked unit and damaged our property. During the incident, a security guard was assaulted and required medical attention. The individuals appear to have targeted one unit. On the evening of Tuesday 15 September, individuals breached our fencing but did not get any further.
On both occasions, the individuals were confronted by both security and Victoria Police.
Both incidents have been reported to Victoria Police, with relevant CCTV footage and customer information provided.
A clear warning. The Scoresby site is a fenced, guarded construction site under a Council Building Order. Entering it without authority is trespass and a breach of that Order. Anyone who does so will be identified on CCTV, reported to Victoria Police and asked to be charged. We are in communication with Victoria Police and have increased our security presence on site.
Please understand why. The centre section is partly collapsed and demolition is under way; people can be seriously hurt. The goods inside are contaminated, and taking them home puts you and your family at risk. Every incident diverts our team and our contractors away from the work that gets goods back to customers. It slows the process down for everyone.
8. Where to from here
Customers who elected remediation are now working through that process with the restoration company and the hygienist. Assessment of the front and rear sections continues and those customers will hear from us directly as soon as practicable.
If you are unsure of your position, want your letter explained in plain terms, need a letter for your insurer, or simply want to talk to someone, our team is available at support@pss.com.au or by phone.
We are sincerely sorry for what many customers have lost. We understand the anger. But safety comes first, the rules we are working under are not ours to set aside, and we will keep doing everything within our power to see this through properly for every customer.
We will continue to provide updates at publicselfstorage.com.au/scoresby-updates.
Thank you again for your understanding, patience and support.
Kind regards,
The PSS Team