The Kensington and Chelsea Leadership Team were scheduled to discuss a settlement of civil claims related to the Grenfell Tower disaster, an arrangement with the Royal Borough of Kensington and Chelsea (RBKC) Pension Fund to help alleviate the temporary accommodation crisis, and an update on the Notting Dale Heat Network programme. They were also scheduled to confirm the minutes of their previous meeting.

Grenfell Claims Settlement

The Leadership Team were scheduled to consider a proposal for the council to enter into a negotiated agreement to resolve civil claims related to the Grenfell Tower fire¹. The report pack stated that around 1,100 civil claims had been lodged in the courts for loss of life, personal injury, and other losses caused by the fire, the majority of which had been resolved. The outstanding claims were from a group of 33 police officers represented by the same firm of solicitors.

The report pack noted the:

Council understands the sensitivities within the community regarding the role of Police Officers on the night of the fire and subsequently. As part of the ADR process, the Council has worked with other defendants to ensure that valid claims are resolved and compensated, in a way that mitigates the financial impact on the public purse.

The Leadership Team were scheduled to consider approving the council entering into a global settlement agreement and an apportionment agreement, and delegating authority to the Chief Executive, Maxine Holdsworth, to agree the detailed terms of the agreements.

Temporary Accommodation

The Leadership Team were scheduled to discuss a report outlining arrangements with the RBKC Pension Fund aimed at helping to alleviate the temporary accommodation crisis.

The report pack stated that the council had made a commitment in its Council Plan to prevent homelessness and rough sleeping, and to provide more focused support for households placed in temporary accommodation. It noted that London was in the midst of an unprecedented and deepening housing crisis, with a shortage of affordable rented housing and financial pressures on low-income Londoners and local authority homelessness budgets.

The report pack stated that the proposed arrangement with the RBKC Pension Fund would enable the council to gain access to additional housing stock, provide homeless households with more stable, affordable and safe housing, and address the unsustainable financial cost of providing temporary accommodation under current frameworks.

The Leadership Team were scheduled to consider:

• Noting the Investment Committee's in principle decision to invest in property up to 5% of fund value to meet local temporary housing need.
• Agreeing in principle to the setting up of a Special Purpose Vehicle (SPV) company and appointment of directors to facilitate the proposed pension fund financing structure.
• Delegating approval to the Executive Director of Finance and Resources to agree the Pension Fund financing structure, including the setting up of any SPV company, specific terms, arrangements, directors and legal agreements.
• Agreeing in principle to the setting up of a distinct Special Purpose Vehicle (SPV) company for the council, and appointment of directors for the supply and management of the temporary accommodation units.
• Delegating approval to the Executive Director of Housing & Social Investment to approve and implement the structure required for the supply, operation and management of the properties acquired by the pension fund.

Notting Dale Heat Network

The Leadership Team were scheduled to discuss an update on the progress of the Notting Dale Heat Network programme², and to consider proposals for the delivery model and budget allocations for two existing contracts. The report pack stated that government policy no longer makes it a grant requirement of the Heat Network Investment Project (HNIP) for councils to set up and run heat networks through a separate company. It also noted that the withdrawal of the Kensington Aldridge Academy from the scheme prompted a review and refocus on Phase 1 of the programme, prioritising connections to council-owned and managed assets in the Notting Dale ward.

The Leadership Team were scheduled to consider changing the delivery model of the Notting Dale Heat Network from Notting Dale Heat Ltd delivering the Design, Build, Operate and Maintain (DBOM) contract with Vital Energi, to the council continuing to deliver it as the client and counterparty, with the overall Notting Dale Heat Network programme remaining in-house, and making NDH Ltd dormant as a company.

The Leadership Team were also scheduled to consider utilising existing programme budgets to approve a variation of the existing Vital Energi Design, Build, Operate and Maintain (DBOM) contract, increasing the overall contract value from £13,840,000.00 (excluding VAT) to £19,314,606.48 (excluding VAT), and approving a variation to Cenergist’s Design and Build (D&B) contract, increasing the previously authorised value from £12,040,000 (excluding VAT) to £14,280,778.89 (excluding VAT).