Lynn Korwatch

The Board approved the final authorization and reimbursement of costs to the San Francisco Bar Pilots Benevolent and Protective Association for the acquisition of the new pilot vessel Golden Gate. The resolution establishes the process for the reimbursement of expenses, including direct costs and monthly loan payments, funded through the Pilot Boat Surcharge Account. The Board authorized the Executive Director to approve ongoing monthly disbursements to the association, contingent upon the submission of evidence of payment for the construction loan.

This document outlines the California State Transportation Agency's accomplishments for the year 2025, driven by core priorities of safety, equity, climate action, and economic prosperity, alongside a strong focus on mobility and innovation. Key achievements highlighted include advancing climate action initiatives, securing long-term funding for high-speed rail and local infrastructure, enhancing public safety through law enforcement crackdowns and road repairs, and promoting transportation equity and international partnerships. The report details progress towards a safer, more sustainable, and connected California.

Key discussions focused on the 2022 Pilot Trainee Training Program Selection Examination, including the written and simulator portions, noting a low pass rate on the latter and subsequent appeals. The Board addressed a request for an extension to present the final report on the M/V GLOBE PEGASUS allision incident. Administrative matters included reporting on pilot licensing renewals, surcharge collections, and pension fiduciary updates. Contractual updates covered agreements with UCSF for medical assessments and ARTELIA for manned model training, including negotiation details regarding insurance provisions. Legislative activity focused on AB 2056, which proposes amendments related to pilot boat surcharge funding for CARB emissions requirements. A significant discussion and closed session were held regarding conflict of interest issues related to the Assistant Director, resulting in the decision to waive attorney-client privilege on relevant memos in response to a Public Records Act request. Updates were also provided on the Ad Hoc Committee to Review the Pilotage Rate Setting Process and regional shipping activity, which showed a decrease in vessel moves compared to the previous year.

The Finance Committee meeting agenda included a review and possible action to approve minutes from previous meetings held in September 2025 and November 2025. Key discussions centered on an update of shipping activity, trends, and potential impacts for the remainder of the calendar year, along with a review of fiscal activity for both the calendar year 2025 and the Board fiscal year 2024-25. A significant portion of the meeting involved the Information Technology Modernization Project (ITMP), including Gartner's cost estimates and discussion of funding options, specifically a proposed reimbursement model (Option B) where other funds (Trainee Training, Pension, and Pilot Boat) share ITMP costs with Board Operations. The committee planned to discuss and possibly recommend budget authority changes for FY 2026-27 to accommodate ITMP solution purchase/maintenance, office facility changes (including a possible move), and legal costs associated with a lawsuit. Further deliberation focused on the year-to-date fund condition for FY 2025-26 and possible adjustments to the surcharge rates for Board Operations, Trainee Training, Continuing Education, and Pilot Boat programs. Finally, the committee addressed updates on the Pilot Boat Program project and reviewed the staff report concerning the Pilot Pension Plan CPI-based adjustment.

Key discussions included reports on correspondence and activities since the prior meeting, such as comments submitted regarding Pilotage Rate Setting rulemaking and a notice of petition for writ of administrative mandamus challenging a licensure decision. Directors' reports detailed loss of power and propulsion incidents from November and December 2025 involving various vessels, and the submission of the regulation package on Rate Hearing Procedures to the OAL. Board members provided updates regarding a psychometrician company joining SFBP for ship rides and lessons learned from recent vessel incidents (M/V PLATANOS and M/V KONA TRADER). Financial reports covered Board surcharges for December 2025 and a detailed overview of the Pension Plan, where the Board voted to recommend changing the pension allocation methodology to a cash received basis from the current accrual basis. Contractual matters involved updates on the Trainee Selection Exam contract with Cal Poly Maritime Academy, the Pilot Boat Program Audit, Maritime Investigator Services IFB extension, and the IT Support Services agreement with Caltrans. The Port Agent's report included statistics on pilot absences and ship piloting activity, noting a decline in total moves and GRT compared to the previous year. The Pilot Evaluation Committee (PEC) reported on the active trainees and discussed a recommendation to extend the pilot trainee probation period by an additional six months by amending CCR § 214(f). Furthermore, the Ad Hoc Committee to Review the Pilot Trainee Program Selection Exam was disbanded. A status report on the IT Modernization Project indicated a wait for CDT approval on the solicitation package. Stakeholders provided reports on regional shipping activity, noting stable but slightly declining cargo volumes for the Port of Oakland in 2025, and updates on the next pilot boat build project.