Minutes 93/03/04 – 106/03/04
Transport for London

Minutes of a meeting of the Board
held on Wednesday 24 March 2004, commencing at 10.00 a.m.
in the Chamber, City Hall, the Queen’s Walk, London, SE1 2AA

Present:
Board Members:	Dave Wetzel 	(in the Chair) 
	David Begg 	
	Stephen Glaister
	Kirsten Hearn	(for min Nos 96/03/04 – 106/03/04)
	Oli Jackson
	Susan Kramer	
	Paul Moore
	Sir Gulam Noon
	Murziline Parchment	
	David Quarmby
	Tony West

In attendance: 
Special Advisors:	Bryan Heiser
	Lynn Sloman

TfL Officers:	Maggie Bellis
	Barry Broe
	Ian Brown
	Michael Clark	
	Stephen Critchley
	Isabel Dedring
	Mary Hardy
	Peter Hendy
	Betty Morgan
	Locksley Ryan
	Fiona Smith
	Valerie Todd
	Tim O’Toole
	Jay Walder

Secretary:	Jacqui Gregory

The Board welcomed Sir Gulam Noon to his first meeting of the TfL Board; Sir Gulam Noon had been appointed as a Board Member with effect from 1 March 2004.

93/03/04	APOLOGIES FOR ABSENCE	
		
	Apologies for absence were received from Bob Crow, Sir Mike Hodgkinson, Robert Kiley and Ken Livingstone.	
		
	The Chair, on behalf of the Board, expressed his congratulations to the Mayor and his partner, Emma, on the birth of their baby daughter on Saturday, 20 March 2004.	
		
94/03/04	MINUTES OF THE PREVIOUS MEETING HELD ON 11 FEBRUARY 2004	
		
	The minutes of the meeting held on 11 February 2004 were agreed and signed as a true record, subject to the following amendment: -	
		
	Minute No 87/02/04: Private Vehicle Hire Licensing – Final Regulations and Administrative Framework – paragraph 2 amended to read as follows: -

 “The Board noted that once a vehicle had successfully passed the licensing inspection, a paper licence would be issued to the vehicle owner and a licence disc would be affixed to the upper corner of the front windscreen on the passenger side and the rear windscreen on the near-side…….”	
		
95/03/04	MATTERS ARISING	
		
	Declaration of Interests	
		
	The Chair reminded Board Members of the requirement to declare any interests in the matters under discussion.  No interests were declared.	
		
	Matters Arising	
		
	NOTED	that all actions agreed at the last meeting had either been completed or were being progressed.	
		
	Matters Arising from the 3 December 2003 Meeting	
		
	NOTED	that the actions relating to the Crossrail item arising from the December 2003 Board Meeting (min No 69/12/03 refers) and other progress on the Crossrail plan, had been put on hold pending the publication of the Montague Report.	

96/03/04	COMMISSIONER’S REPORT	
		
	In response to questions raised by Board Members on the Commissioner’s Report, the following issues were discussed: -	
	•	Briefing on Industrial Relations – Maggie Bellis advised that a private briefing for Board Members would be held in the near future.
Post Meeting Note: The Briefing has been arranged for 11 May 2004 and the arrangements confirmed with Board Members.
•	Trade Unions and Long-Term Settlement on Pay and Conditions – Tim O’Toole advised that two meetings had been held with the London Underground trades unions to discuss the long-term settlement on pay and conditions, when the trades unions had raised a number of issues which they wished to see in such a settlement.  Further meeting dates with the trades unions had been scheduled, with a view to a settlement being reached which would bring greater stability to LUL’s employee relations.  
•	Pip Hesketh – the Board noted that Pip Hesketh had resigned as Head of Equality and Inclusion.  The Board asked that their thanks be conveyed to Pip for the huge amount of work she had undertaken in championing equality and inclusion across TfL during her tenure.
•	Mercedes Bus Fires – Peter Hendy advised that since the fire which occurred on a Mercedes bus on 3 December 2003, there had been two further fires on these buses, one in February 2004 and one on 20 March 2004.  Board Members noted that there were no casualties in any of the three incidents, with all passengers and staff having been evacuated safely.  The first two fires had been thoroughly investigated and, after the third fire, the following actions had been agreed with Mercedes and the operators of the vehicles: -
-	nightly inspections to take place;
-	engine compartment fire suppression equipment to be fitted on all Mercedes buses (Peter Hendy indicated that, subject to technical trials being successfully completed, London Buses would require fire suppression to be fitted in the engine compartment of all buses in London in due course); and
-	an independent inquiry had been set up and the results of the inquiry would be made public.
Following the investigation into the third fire, Mercedes had asked London Buses’ contracted operators to withdraw all Citaro model buses that morning so that they could replace componentry around the compressor. Where possible, services had been maintained by the provision of other buses on affected routes or parallel routes. It was expected that the buses would be returned to service, once the necessary work had been completed. The London Transport Users Committee and the Transport and General Workers Union had been fully informed. Peter Hendy said there was no evidence that any of the fires related to the articulated nature of the vehicles.
•	Vigilance Campaign – the Board noted the action being taken on the Underground system with the police stepping up patrols as part of the continuing Government campaign against the threat of terrorism.  Peter Hendy reported on steps being taken in Surface Transport.
•	East London Line – Ian Brown stated that recent reports in the press regarding delays to the East London Line Project had been misleading.  The Mayor had met with the Minister for London and proposed that the phasing for the East London Line Project be examined in the context of the full business case for a Metro service running from Highbury to Croydon/Clapham Junction.  Ian Brown advised that while there had been project delays previously caused by legal action, there had been no new delays to the scheme, with the target date for implementation still expected in the year 2010. 
•	Jones Lang La Salle Report on JLE – The Chair drew attention to the Jones Lang La Salle report referred to in the Commissioner’s Report which showed that as a result of the JLE, land values around two of the stations had increased by £2.8 billion.	
		
	The Commissioner’s Report was noted by the Board.	
		
97/03/04	PPP CONTRACT PERFORMANCE	
		
	Tim O’Toole reported on PPP contractual performance (including PPP Infrastructure Service Charges) and on the measures used to assess performance of the PPP contract.  He highlighted the following, in particular:-	
	•	In period 11 (covering the period from 4 January 2004 to 31 January 2004) there had been little change in the flows of funds from the Infrastructure Service Charge.
•	Period 11 performance had been affected by snow and ice, resulting in a number of cancellations and service suspensions.  Tube Lines had also experienced significant signalling problems on the Jubilee and Northern lines, although remedial action was being taken to address this.	
		
	The Board noted Tim O’Toole’s report on PPP performance.	
		
98/03/04	APPROVAL OF 2004/05 REVENUE AND CAPITAL BUDGETS	
		
	Jay Walder advised that TfL’s budget for 2004/05 reflected amendments arising from TfL’s 2003/04 results as forecast at period 9 (December 2003) and the finally agreed Mayor’s 2004/05 budget.  The TfL Finance Committee had considered the 2004/05 budget at its meeting on 11 March 2004 and recommended its approval to the TfL Board.	
		
	The Board noted that TfL’s 2004/05 budget had been compiled by bringing together TfL’s operational and capital plans to clearly distinguish between an operational budget, to support the delivery and running of transport services, and TfL’s planned capital investment on transport infrastructure.  Jay Walder advised that since the core Business Plan remained the same and there had not been any further indication of any likely settlement of SR 2004, it was not intended that the Business Plan be updated in March, as had been the case in previous years.  Instead, an addendum to the plan was proposed to include the important areas of health, safety and environment and equality and inclusion.  The Board: -	
	•	Noted the contents of the report and, in particular, the following: -	
	-	Changes made to the budget since 29 October 2003.
-	The process being put in place to determine TfL’s borrowing plan by April 2004.
-	The deliverables resulting from the budget.
-	The prudent approach being taken in 2004/05 in not committing expenditure with an impact in 2005/06 and beyond, pending the outcome of the Government’s SR 2004.
-	The addendum to the Business Plan for health, safety and environment and equality and inclusion (attached at Annex 1 to the written report).
-	The proposals for the 2005/06 Business Planning Cycle.	
	•	Approved the 2004/05 budget, subject to the following: -	
	-	A note being circulated to Board Members explaining the differences in DLR income for 2003/04 and 2004/05.
-	Consideration being given to a target being set for equality and inclusion which measured the success of initiatives by the number of actual disabled people who travelled on the transport network.
-	A review of the wording on page 79 of Annex 6 relating to the indicator of success for the door-to-door review. 
-	Annex 6 being reviewed so as to ensure greater consistency between the modes in the way information on the impacts on equality and inclusion were presented in the future.
-	A note being circulated to Board Members, in due course, outlining whether the services and support provided to staff, as set out in the Health Plans section of Annex 1, had had any effect on sickness levels of TfL staff (the Board noted that this work was in hand and had yet to be completed).
-	Table 8 of Annex 1 being amended to reflect the correct percentage of underground stations with step-free access by 2011.	
	•	Agreed that the Managing Director, Finance and Planning, be authorised to make any final amendments to the Business Plan.	
	•	Approved the addendum to the Business Plan (attached at Annex 1 to the written report).	
	•	Noted that a proposal under “Prudential Borrowing” would be submitted to the 29 April meeting of the TfL Board.	
		
99/03/04	TREASURY MANAGEMENT POLICY STATEMENT AND TREASURY MANAGEMENT STRATEGY	
		
	The Board: - 	
	•	noted the written report;
•	approved the amended Treasury Management Policy Statement;
•	approved the Treasury Management Strategy and Prudential Indicators; and
•	agreed that the Chief Finance Officer be authorised to review and amend, with the Head of Group Treasury, schedules supporting the Treasury Management Practices.	
		
100/03/04	THAMES GATEWAY BRIDGE	
		
	Barry Broe reported on progress on the Thames Gateway Bridge Project and highlighted the following in particular: -	
	•	The changes made to the scheme since the last TfL Board meeting report in November 2002, to take account of views expressed during public consultation and discussions with key stakeholders, as follows: -	
	-	higher peak time tolling provision;
-	segregation of public transport lanes;
-	wider bridge to accommodate the future possibility for trams or DLR;
-	40 miles per hour speed limit;
-	traffic mitigation measures being agreed with Boroughs;
-	public transport bus routes being developed; and
-	improved pedestrian links and landscaping.	
	•	Thames Gateway Bridge was widely supported by the public (85%), local businesses and the Boroughs.	
	•	Capital and operating costs would be fully funded from tolling and Government PFI credit; Barry Broe advised that it was not proposed to set the tolling levels for the bridges at this time, these being subject to a decision at a future date.	
	•	The project had a good business case (BCR5.1:1) and would make a significant contribution to regeneration.	
	•	Thames Gateway Bridge was essential infrastructure for improving accessibility in East London.	
	•	Considerable project development work had been completed on the design, Environment Impact Assessment, business case and funding.	
		
	Barry Broe advised that the Thames Gateway Bridge Project had been discussed at the March 2004 Surface Advisory Panel and Finance Committee meetings and issues raised at those meetings had been addressed in the report.
	
	In response to an enquiry made by a Board Member, Barry Broe confirmed that the sentence in paragraph 4.23 of the written report which read ‘The interim EIA recommended peak time tolls to mitigate traffic impacts’ went further than the conclusions set out in paragraph 2.6 and section 5 of the interim EIA summary (Annex 1 of the written report) and in the circumstances agreed that this sentence should be deleted from the written report.
	
	After a lengthy debate, the Board: -	
	•	noted the contents of the report; and
•	by a majority vote (7 Board Members voted in favour, 3 were against and there was one abstention) the following resolutions were passed by the Board: -	
	-	approved TfL obtaining powers for the Thames Gateway Bridge scheme, as described in figure 2.2 in Annex 1 of the written report (“the Thames Gateway Bridge”)
-	approved, in principle: -
(a)	the making of a special road scheme relating to Thames Gateway Bridge under Section 16 of the Highways Act 1980;
(b)	the making of a bridge scheme or Order under Section 106 of the Highways Act 1980 for the construction of the Thames Gateway Bridge over the River Thames;
(c)	the making of side road Orders relating to Thames Gateway Bridge under Sections 14 and 18 of the Highways Act 1980;
(d)	the making of a Toll Order under Section 6 of the New Roads and Street Works Act 1991 in relation to the Thames Gateway Bridge;
(e)	the making of a Compulsory Purchase Order in respect of the land requisite for Thames Gateway Bridge (such land should be substantially within the boundaries of the land edged red in figure 9 of the written report);
(f)	the making of applications for planning permission under the Town & Country Planning Act 1990 in respect of the Thames Gateway Bridge;
(g)	the making of such other schemes and orders and applications for any other powers, consents and approvals, as are required for the construction, maintenance, tolling and operation of the Thames Gateway Bridge;	
	- 	authorised the Commissioner (or in his absence the Managing Director, Finance and Planning) or with the consent of the Commissioner (or in his absence the Managing Director, Finance and Planning) General Counsel to do the following: -	
	(1)	make and amend the Special Road Scheme;
(2)	make and amend the Bridge Scheme or Order;
(3)	make and amend the side roads Orders;
(4)	make and amend the Toll Order;
(5)	make and amend the Compulsory Purchase Order, including the settling of the detailed boundaries of the land to be acquired  (such land should be substantially within the boundaries of the land edged red in figure 9 of the written report);
(6)	do all things necessary to obtain confirmation of and then implement the Compulsory Purchase Order;
(7)	make the applications for planning permission;
(8)	make all other Schemes and Orders, and all other applications for any other powers, consents and approvals,  required for the construction, maintenance, tolling and operation of the Thames Gateway Bridge; and
(9)	do all things necessary (including making agreements) to obtain confirmation of the special Road Scheme, Bridge Scheme or Order, Side Roads Orders and Toll Order and to obtain all other powers, consents and approvals, required to construct, maintain, toll and operate the Thames Gateway Bridge.	
		
101/03/04	MOVING TO CIVIL ENFORCEMENT OF PARKING CONTROLS ON THE TLRN	
		
	A paper reviewing options for the more effective enforcement of parking controls on the Transport for London Road Network was introduced by Peter Hendy. The proposal was to enter into a Special Service Agreement with the Metropolitan Police Service for the Traffic Warden Service to enforce decriminalised parking, and to move from the current fixed penalty notice of £60 to a penalty charge notice set at the Penalty Band ‘A’ (currently £100).	
	 	
	 The Board: -	
	•	agreed to decriminalise parking on the TLRN and to the Secretary of State being asked to make a Commencement Order, with a view to introducing these changes in October 2004; and
•	approved penalty band A to be applied to all contraventions on the TLRN.	

		
102/03/04	AUDIT COMMITTEE REPORT	
		
	The Board noted the report on the proceedings of the Audit Committee Meeting held on 10 March 2004.	
		
103/03/04	SAFETY, HEALTH AND ENVIRONMENT COMMITTEE REPORT	
		
	The Board: -	
	•	noted the report on the proceedings of the Safety, Health and Environment Committee meetings held on 17 December 2003 and 11 March 2004; and
•	noted the Chair of the Safety, Health and Environment Committee’s proposal that further HSE briefings be held for Board Members after the Mayoral election, particularly for new Board Members.

104/03/04	FINANCE COMMITTEE REPORT	
		
	The Board noted the report on the matters discussed at the Finance Committee on 11 March 2004.	
		
105/03/04	PILOTING THE ENFORCEMENT OF MOVING VEHICLE OFFENCES	
		
	The Board: -	
	•	noted the proposal to pilot the London Local Authorities and Transport for London Act 2003 using cameras on the Transport for London Road Network and the communications campaign to inform the public; and
•	noted that the Managing Director of Surface Transport would be taking such steps, as necessary, to implement the decriminalised regime outlined in the London Local Authorities and Transport for London Act 2003.	
		
106/03/04	DOCUMENTS SEALED ON BEHALF OF TfL	
		
	The Board noted the documents sealed on behalf of TfL from 28 January 2004 to 10 March 2004.	

	There being no further items of business, the meeting closed at 12.32 hours.	

______________________
Chair