Agenda and minutes

Apologies for absence were received from Deputy Dr Giles Shilson (Chair), Deputy Jamie Ingham Clark and Judith Pleasance. Apologies for lateness were received from Jeremy Mayhew.

Alderman & Sheriff Alison Gowman declared an interest in Item 12 by virtue of being a Trustee of Trust for London.

To agree the public minutes and non-public summary of the meeting held on 11 January 2022.

RESOLVED – That the minuites of the meeting held on 11 January 2022 be agreed as a correct record.

Report of the Town Clerk

The Board received a list of outstanding actions and noted the updates provided on each item. The Board noted that the target completion date for the review of the Transitional Investment Strategy Statement would be amended to December 2022 to allow time for review following consideration of the Supplemental Royal Charter.

RESOLVED – That the outstanding actions be noted.

Report of the Managing Director of Bridge House Estates (BHE)

To be considered in conjunction with the non-public appendix at Item 18.

The Board received a report of the Managing Director of BHE providing an update on key areas of activity across the whole charity since the Board’s last meeting in January 2022 and outlining upcoming activities for the Board to note. The Managing Director of BHE introduced the report and drew Members’ attention to the key updates, including appointments made to roles in the BHE Senior Leadership Team.

Climate Action Strategy

In response to a question from a Member, the City Surveyor gave the Board further detail on the proposed steps with regards to supporting the Net Zero target and wider Climate Action Plan in the property portfolio. The Board noted that officers had participated in workshops and exchanged information with other major charities.

RESOLVED – That the report be noted.

Report of the Managing Director of BHE

The Board considered a report of the Managing Director of BHE setting out matters for decision which are recommended to support the Board in the ongoing effective administration and governance of BHE, consistent with the City Corporation’s legal obligations as Trustee of the charity. The Managing Director of BHE introduced the report and drew Members’ attention to the key points, also outlining each item requiring the Board’s consideration in turn and the options for decision.

Review of the BHE Board’s Terms of Reference

The Board discussed the BHE Board’s Terms of Reference, noting several amendments proposed by officers. Members commented that they felt Co-opted Members were more suitable for the main Board than Board Committees, but agreed to maintain flexibility and agreed retaining up to two rather than three Co-optees within the Board’s membership could be supported.

The Board agreed that the provision within the Board’s Terms of Reference for reporting to the Court of Common Council should be amended from biannual to annual, subject to the approval of the Court of Common Council.

Other BHE Board Governance and Delegation Arrangements

The Board agreed that other governance arrangements outlined, such as levels of delegation should be continued without amendment, noting that these matters were regularly reviewed as necessary.

Committees of the Board

The Board considered whether to establish a Bridge Management Committee for the ensuing year. Members discussed the potential benefits and challenges of establishing such a Committee, and arising from the discussion the Board agreed to defer a decision on this matter to the next meeting.

The Board then agreed that the Grants Committee should be reconstituted for the ensuing year, and supported the extension of the current terms of the two existing co-optees on the Committee which would be progressed in accordance with the agreed process for appointing

Report of the Managing Director of BHE

The Board considered a report of the Managing Director of BHE presenting an overview of the overarching priorities for BHE in 2022/23, and setting out the draft Tower Bridge (TB) and City Bridge Trust (CBT) high-level summary Business Plans for 2022/23. The Managing Director of BHE introduced the report and drew Members’ attention to the key points, also advising that the full Business Plan for CBT would be submitted to the Grants Committee. A Member, noting the distinct emphasis on Tower Bridge, and suggested that further detail on the other bridges be additionally included going forward.

RESOLVED – That the Bridge House Estates Board:

i)             Note the overarching priorities for Bridge House Estates for 2022/2023;

ii)    Approve, subject to the incorporation of any changes sought by this Board, the final high-level summary Business Plan for 2022/23 for Tower Bridge; and,

iii)   Note the draft City Bridge Trust high-level summary Business Plan for 2022/23 (pending consideration by the BHE Grants Committee in March).

Report of the Managing Director of BHE

The Board considered a report of the Managing Director of BHE providing the Board with an update on the management of risks faced by Bridge House Estates (“BHE”). The Managing Director of BHE introduced the report and outlined the amendments made since the previous submission of the Risk Register.

RESOLVED – That the Bridge House Estates Board, in discharge of functions for the City Corporation as Trustee for Bridge House Estates and solely in the charity’s best interests:

i)              Approve the Bridge House Estates Principal Risk Register at Appendix 2; and

ii)             Note the next steps to undertake an extensive review of all the charity’s risks prior to April 2022.

Report of the BHE & Charities Finance Director, representing the Chamberlain

The Board considered a report of the Managing Director of BHE and the BHE & Charities Finance Director, representing the Chamberlain, updating on the 2021/22 latest forecast and presenting the 2022/23 revenue budget and Medium-term Financial Plan (MTFP), covering financial years 2023/24 – 2025/26, for BHE.

The BHE & Charities Finance Director, representing the Chamberlain, introduced the report and outlined the key features of the revenue budget and the medium-term financial plan for the Board, before drawing Members’ attention to the recommendations in respect of several matters for consideration by the Board, including the creation of a designated fund for the Climate Action Strategy (CAS) and options for the level of free reserves to be held. In response to a question from a Member, the BHE & Charities Finance Director advised that a further proposal would be brought to the Board regarding the reallocation of funds to the designated fund for the CAS, should its creation be agreed.

The Deputy Chair, in the Chair, then drew the Board’s attention to the recommendations and sought the Board’s agreement on each matter in turn.

RESOLVED – That the BHE Board, in discharge of functions for the City Corporation as Trustee of Bridge House Estates (charity no. 1035628) and solely in the charity’s best interests:

1. Note the latest revenue forecast for 2021/22;

2. Approve the 2022/23 revenue budget and Medium-Term Financial Plan for period 2023/24 – 2025/26;

3. Approve the creation of a designated fund for the Climate Action Strategy and agree that £15m should be moved to this fund from the Unrestricted Income Reserves. The amount held within this designated fund is to be reviewed on an annual basis with the permitted spend in any year to be within the available balance within the designated fund;

4. Agree to hold additional free reserves of £55m over and above

Report of the BHE & Charities Finance Director, representing the Chamberlain

The Board considered a report of the BHE & Charities Finance Director requesting the approval of a 2021/22 forecast expenditure increase of £150k to cover the expenditure required to undertake surveys across BHE’s directly managed investment property portfolio.

RESOLVED – That the BHE Board approve funding of £150,000 from the BHE Central Contingency Fund, to enable the cost of the surveys of the directly managed investment property portfolio required to assess the works required to achieve EPC ‘B’ by 2030 and net zero in carbon emissions by 2040, to be met from BHE revenue funds rather than from within the Designated Sales Pool.

Report of the BHE & Charities Finance Director, representing the Chamberlain

To be considered in conjunction with the non-public appendix at Item 21.

The Board received a report of the BHE & Charities Finance Director providing the Board with an update on the 2021/22 Central Contingencies uncommitted balances held by Bridge House Estates (BHE).

RESOLVED – That the BHE Board, in discharge of functions for the City Corporation as Trustee of Bridge House Estates (charity reg. no. 1035628) and solely in the charity’s best interests:

a)    Note the central contingency budgets currently held by BHE for 2021/22 (para 4); and

b)    Note that £150k is being requested from the central contingency provision at Item 10 on the agenda for surveys of the investment property portfolio to assess the works required to contribute to achieving the charity’s Climate Action Strategy (CAS) net zero carbon emissions target (para 5).

Report of the Managing Director of BHE

The Board considered a report of the Managing Director of BHE requesting delegated authority to approve prospective grants requiring the approval of the Board during the period to the next meeting of the Board. The Board noted that the Grants Committee of the BHE Board would consider the applications at its meeting in March 2022, with applications recommended for approval subsequently submitted to the Board under the delegation proposed.

RESOLVED – That the BHE Board delegate authority to the Town Clerk, in consultation with the Chair and Deputy Chair, to approve awards recommended by the March Grants Committee of £500,000 and above, within the current financial year.

Report of the Chamberlain

The Board considered a report of the Chamberlain setting out the City of London Corporation’s Treasury Management Strategy Statement and Annual Investment Strategy (TMSS) for 2022/23. The BHE & Charities Finance Director introduced the report and advised that the report had also been approved by the Financial Investment Board and Finance Committee for the City Corporation.

RESOLVED – That the BHE Board review and approve the Treasury Management Strategy Statement and Annual Investment Strategy for 2022/23 on behalf of Bridge House Estates.

Report of the Chamberlain

The Board received a report of the Chamberlain setting out the updates on quarterly progress for the Financial Investments workstream under the Climate Action Strategy (CAS).

RESOLVED – That the report be noted.

A Member asked officers for further information regarding proposed TfL closures at London Bridge. The Executive Director of Environment advised that officers had noted the concerns raised about the impact of these proposals and would be working with TfL accordingly, with an update to be brought back to the Board on any issues arising and the impact of TfL’s proposals.

MOTION – With the Court of Common Council for the City Corporation as Trustee of Bridge House Estates (Charity No. 1035628) having decided to treat these meetings as though Part VA and Schedule 12A of the Local Government Act 1972 applied to them, it now be moved that the public be excluded from the meeting for the following items of business on the grounds that their consideration will in each case disclose exempt information of the description in paragraph 3 of Schedule 12A, being information relating to the financial and business affairs of any person (including the City Corporation as Trustee of the charity) which it would not be in the charity’s best interests to disclose.

RESOLVED – That with the Court of Common Council for the City Corporation as Trustee of Bridge House Estates (Charity No. 1035628) having decided to treat these meetings as though Part VA and Schedule 12A of the Local Government Act 1972 applied to them, the public be excluded from the meeting for the following items of business on the grounds that their consideration will in each case disclose exempt information of the description in paragraph 3 of Schedule 12A, being information relating to the financial and business affairs of any person (including the City Corporation as Trustee of the charity) which it would not be in the charity’s best interests to disclose.

To agree the non-public minutes of the meeting held on 11 January 2022.

RESOLVED – That the non-public minutes of the meeting held on 11 January 2022 be agreed as a correct record.

To be considered in conjunction with the report at Item 5.

The Board received non-public appendices in respect of Item 5.

Report of the City Remembrancer, the Comptroller and City Solicitor and the Managing Director of BHE

The Board considered a report of the City Remembrancer, the Comptroller & City Solicitor and the Managing Director of BHE.

Report of the Remembrancer

The Board received a report of the City Remembrancer.

To be considered in conjunction with the report at Item 11.

The Board received non-public appendices in respect of Item 11.

Report of the City Surveyor

The Board considered a report of the City Surveyor.

Report of the Executive Director of Environment and the Commissioner of the City of London Police

The Board considered a report of the Executive Director of Environment and the Commissioner of the City of London Police.

Report of the Managing Director of BHE

The Board considered a report of the Managing Director of BHE and the BHE & Charities Finance Director.

Report of the Chamberlain

The Board received a report of the Chamberlain.

Report of the City Surveyor

The Board considered a report of the City Surveyor.

Report of the City Surveyor

The Board considered a report of the City Surveyor.

Report of the City Surveyor

The Board considered a report of the City Surveyor.

Report of the City Surveyor

The Board considered a report of the City Surveyor.

Report of the City Surveyor

The Board received a report of the City Surveyor.

Report of the City Surveyor

The Board received a report of the City Surveyor.

Report of the City Surveyor

The Board received a report of the City Surveyor.

Report of the City Surveyor

The Board received a report of the City Surveyor.

There was other business.

The Board received an update on an Internal Audit matter.