Sharmila Baichu

The meeting included reports from the Governance and Investment Committees, an M/WBE quarterly update, and status updates on the South and North/West Resiliency Projects. The Board authorized contract amendments for the South Battery Park City Resiliency Project with PBJV and E.W. Howell Co., LLC. Additional authorizations included a new contract for the Estuary Habitat Monitoring Program with Ramboll Americas Engineering Solutions, Inc., and investment advisory services with PFM Asset Management. The Board also established a pre-qualified panel for municipal advisory services, reallocated Series 2013A and 2019A bond funds to general infrastructure, and approved the 2026-27 insurance program. Finally, contracts were authorized for public relations services with Risa Heller Communications LLC, and consent agenda items for printing services, crossing guard services, and HVAC chemical treatment were approved.

This document details the Investment Guidelines and provides an Investment Report for the Battery Park City Authority. The guidelines establish comprehensive parameters, responsibilities, and controls for managing investment funds, with a hierarchical focus on legality, safety of principal, liquidity, and maximizing returns. Key areas include defining authorized investment securities, portfolio diversification strategies, and investment maturity limits. The document also outlines operating procedures, internal controls, qualifications for financial institutions, and rigorous reporting requirements, including an annual audit. Furthermore, it incorporates Environmental, Social, and Governance (ESG) investment principles, prohibiting investments in companies heavily reliant on fossil fuels while seeking to integrate other ESG factors into investment decisions. The accompanying report summarizes investment activities and performance for the fiscal year ended October 31, 2025.

The meeting agenda included the President's Report, reports from the Audit and Investment Committees, and updates on the North/West and South BPC Resiliency Projects. Corporate actions involved approving the Investment Report & Guidelines for the Fiscal Year Ended October 31, 2025, accepting Audited Financial Statements for the same fiscal year, approving the Prompt Payment Report and Policy, and approving the Proposed 2026 Procurement Guidelines and 2025 Procurement Report. Additionally, authorizations were sought to enter or amend contracts for webmaster services, construction administration, North Grid Electric Upgrades, community air and noise monitoring, resiliency cost management services, and authorization for an amended lease for commercial space at 200 Rector Place. A January 2026 Consent Agenda item involved authorizing a contract for International ILFI Net Zero Carbon Certification for Wagner Pavilion. The session concluded with a motion to conduct an executive session to discuss negotiations related to real property lease.

The Audit & Finance Committee meeting agenda included a call to order, the annual audit presentation by CBIZ, board recommendations, and a motion to adjourn. The audit results presentation covered the audit conclusion, which expected a clean/unmodified opinion on the financial statements for the year ended October 31, 2025, provided certain conditions like EQR review and management letter receipt were met. Key discussion points from the audit included a significant unusual transaction involving $18 million in misdirected ground rent and PILOT payments due to a cyber incident affecting a managing agent, though the Authority expects full recovery. The committee reviewed management's estimates and judgments concerning the OPEB liability (approximately $46.2 million as of October 31, 2025), depreciation of project assets, pension benefits, lease accounting, and the allowance for doubtful rents and other receivables (which decreased significantly to $4.9 million). The auditors noted no material weaknesses in internal control.

The Investment Committee meeting included a review of the fourth quarter investment report, a discussion of the economic overview, and the Federal Reserve outlook, as presented by external asset management firms. The committee recommended closely monitoring construction fund spending and pacing relative to contractor projections. Further discussion addressed security deposit investments, noting that lease requirements influence investment strategy, with plans to revisit the approach in coordination with future leasing strategy development. Additionally, measures taken to protect the portfolio against potential interest rate changes were explained.