TJPA meeting roundup: clean audit, FY25‑26 operating projection approved, procurement protest policy updated

The Transbay Joint Powers Authority board on Jan. 30 received an unmodified audit opinion for the fiscal year ended June 30, 2024, approved a preliminary FY25‑26 operating projection of $28,344,000 and adopted updates to Board Policy No. 2 (protest procedures).

Whitney Crockett, audit partner with Maize and Associates, told directors the external audit opinion for FY2023‑24 was unmodified (a clean opinion). She noted a typographical error in the published Management’s Discussion and Analysis that will be corrected and summarized headline changes: a decrease in the statement of net position largely driven by depreciation expense and reduced restricted assets related to Phase 1 closeout activities.

CFO Shima Mirzai presented the preliminary FY25‑26 operating projection of $28,344,000. Mirzai said projected operating revenues rose by roughly $2.6 million from earlier estimates — including approximately $13 million in bridge‑toll reimbursements and $1.6 million from a community benefit district assessment — which together reduced transit operator contributions by about $3.2 million. She told the board that the operating reserve will remain at the policy level of 25% of the operating budget, requiring a $183,000 transfer from fund balance to maintain that level.

Directors discussed the Metropolitan Transportation Commission’s supplemental RM2 funds and urged partners (AC Transit and SFMTA) and staff to provide letters of support to MTC to secure a three‑year extension of supplemental RM2 funding that helps offset operator contributions. Director Rivers asked whether operator agencies would need to cover any shortfall if the RM2 extension is not renewed; Mirzai said residual gaps would fall to transit operators depending on future operating revenues.

The board also considered updates to Board Policy No. 2 (protest procedures). The proposed changes broaden the policy to apply to all contracts meeting a specified threshold regardless of funding source, clarify timelines and submission requirements for protests, align the TJPA review role with current federal regulations, and recommend renaming the policy to "Protest Policy." The board moved and approved the updates.

Earlier in the meeting, the board approved the consent calendar — routine items including the 12/12/2024 meeting minutes, an amendment to the Capital Improvement Plan policy, and lease rent‑period extensions for Phil’s Coffee, Fitness SF (Transbay Fitness) and Vanga and Bananas — on a single roll‑call vote. The Citizens Advisory Committee chair reported on Jan. 28 that the committee had discussed the Portal schedule and funding plan, asked for tenant reporting from Caltrain/Muni/AC Transit, and raised contingency concerns for underground utility relocation.

Public comment included a remote question about platform length and operations in the event of future high‑speed services (Brightline West); the caller asked how TJPA plans to accommodate long high‑speed consist lengths given alignment constraints.