Paolo Cosulich-Schwartz

The Finance Auditing Committee meeting included a presentation on the October 2022 investment report, noting rising yields, especially on the shorter end of the curve due to Federal Reserve rate hikes, and the current yield of 4.49 percent. Discussions covered the possibility of a looming recession, offset by a positive Q3 2022 GDP print, and persistent core inflation. The investment analysis highlighted how rising interest rates created opportunities to add high-yielding securities, resulting in the overall Operating Reserve portfolio yield crossing the two percent threshold. The committee also received the Independent Auditor's Annual Comprehensive Financial Report for the year ending June 30, 2022, from Eid Bailey, which resulted in a clean opinion with no required adjustments. Finally, the annual report of the OPEB Retirement Investment Trust Board was presented.

The committee meeting addressed the authorization of salary adjustments for six specific classifications, including the Director of Budget and Electronic Revenue, Chief Technology Director, Purchasing Officer, and Contracts Officer, with adjustments effective retroactively to the first pay period in March. A discussion on compensation included recognizing the board's desire for a formal compensation policy. The committee also reviewed and presented for approval the four-year Equal Opportunity Program Action Plan for 2023 to 2027, detailing workforce utilization analysis by gender and race, and establishing new hiring and promotional goals for various job categories to eliminate underutilization of women and minorities. The presentation covered seven elements of the EEO program, assessing employment practices related to recruitment, compensation, training, testing, discipline, and termination to ensure non-discrimination.

The board meeting commenced after noting that the meeting was being recorded. The general manager requested ratification of emergency actions taken, specifically approving a contract with PB Electric for electrical system repairs on the bridge due to equipment failure from components installed in 1937, totaling $2,340,000 for short-term fixes. Public comments were heard regarding the successful installation of the suicide prevention net, urging continued staffing for sidewalk patrols and de-escalation efforts. Another commenter addressed pension funding levels, noting the plan is only 42% funded and urging the district to fund the actuarially determined contribution. A third commenter praised the district's success in preventing CO2 emissions and encouraged the board to pursue the long-term clean energy goals established in the 2024 strategic plan initiative by hiring a sustainability director and establishing a baseline for Scope 1, 2, and 3 emissions. The General Manager also reported on transportation trends, noting that while overall travel remains below pre-pandemic levels, December bridge traffic, bus ridership, and ferry ridership showed slow, steady growth compared to the previous year, although southbound commute traffic was down 25%. Finally, the GM noted that S&P Global Ratings affirmed the district's AA- rating but revised the outlook from stable to negative, signaling a need for sustainable structural balance between operating funds and expenditures.

The Finance Auditing Committee meeting included a presentation from the investment manager regarding macroeconomic developments, which included global risk-off behavior due to geopolitical concerns related to Venezuela and Greenland, and the impact of the FOMC chair situation. Discussions covered the K-shaped economy, inflation/unemployment data, and an analysis of the correlation between the Fed funds rate and the job market using historical data from 1995. The committee also reviewed the portfolio performance relative to the two-year Treasury index. Agenda items included the ratification of previous auditor controller actions and the authorization of two on-call grant and project support services contracts with HDR Engineering and WSP USA, as well as approval for a budget increase related to the San Francisco ferry terminal west and east berth rehabilitation project.

The meeting, called to order on January 22, 2026, primarily addressed actions related to Project Number 2443: San Francisco Ferry Terminal West and East Berth Rehabilitation. This involved authorizing the execution of the sixth amendment to a professional services agreement with MA and Nickel W Creek for construction engineering support services, totaling an amount not to exceed $29,200. Furthermore, an increase of $1,125,856 was authorized in the fiscal year 2526 fair division capital budget for project 2443 to cover contract administration and construction engineering, funded by district reserves. The discussion detailed the extensive rehabilitation required due to cracks, structural issues, and unforeseen deterioration found after initial work on the East Berth. Additional topics included an informational report from board appointees regarding the Sonoma Marin Area Rail Transit (SMART) Board, noting successful qualification for the SMART initiative to continue the tax measure and updates on ridership increases. The meeting also covered status reports on engineering projects, including progress on the Gonggale seismic retrofit project and the completion of night work for the SCS project, although delays were noted for a transformer installation at the Sanville Bus Facility.