HomeMy WebLinkAboutDecember 2Draft Finance and Investment Committee Special Meeting
Town of Los Altos Hills
Town Hall, Monday, December 2, 2013
The meeting was called to order at 4:00 pm by Chairman Epstein
Members present: Allan Epstein, Kjell Karlsson, Jim Lai, Frank Lloyd, Susan Mason, Stan
Mok, John Radford, Roddy Sloss, and Gary Waldeck.
Members absent: Bill Silver
Staff present: Carl Cahill, Town Manager, Yulia Carter, Administrative Services
Director; and Richard Lee, Finance Manager
Guests present: AJ Major, with Vavrinek, Trine Day &Company, Town’s auditors; and
Captain Ken Binder, Santa Clara County Sheriff’s Department
Public present: None
Approval of minutes:
Minutes of the November 4, 2013 regular meeting were approved as submitted.
Report on Council Activities:
Mayor Gary Waldeck stated there was nothing to report.
Report on Westwind Barn by Allan Epstein:
Presently there are two concessionaire candidates under consideration both of whom will require a
Town subsidy of an undetermined amount and period. The incremental estimated cost of Town oversight
has not yet been reviewed.
Report by Yulia Carter, Rich Lee and AJ Major on audit and financial statements for FY 6/30/13:
A draft of the 6/30/13 CAFR and auditor’s reports were sent to the FIC by email on 11/27/13. Messrs.
Epstein and Sloss submitted questions and comments before the meeting and written responses were
issued by the staff. It was noted that a Single Audit opinion and report was required because Federal
program spending exceeded $500,000 in the period. Town staff and the auditors received the
committee’s thanks for delivering their work products several days before the meeting and more than a
month sooner than prior years’ achievement. Mr. Major reported that there were no material or
significant control weaknesses to report, the staff was cooperative, and no consulting contact with another
audit firm was noted. Upcoming GASB requirements for pensions were discussed and the GASB
standard requiring reporting of deferred inflows and outflows of funds is not expected to have a
significant effect on the Town’s future financial statements. A discussion of the Town’s financial well
being was held noting that there is no single disclosure or figure in the financial statements that entirely
addresses this matter. It was noted that receipts and spending were substantially in balance and there was
no significant improvement or deterioration in the Town’s financial condition.
Draft FIC minutes December 2, 2013 page 2.
Report by Yulia Carter and Ken Binder on Sheriff’s Contract Renewal:
Town Staff and Captain Binder handed out comparative and historical data addressing the Town’s cost
for services delivered by the Santa Clara County Sheriff’s department. The existing contract renewal
option is expiring this month which calls for the Sheriff’s department to patrol the Town and respond to
request for service. The cost is equivalent to the Sheriff’s department cost for one full time 24/7 deputy
and cruiser which is presently approximately $1 million per year. The handout data showed the
comparative cost for neighboring communities with similar arrangements and in-house police on a per
citizen basis. Captain Binder noted the Sheriff has been providing this service to the Town for many
years, is pleased to have this relationship and wishes to continue indefinitely. Amounts billed represent
Sheriff’s costs incurred and address expected results of future labor union negotiations. Captain Binder
noted that past emergency service requiring more officers has not resulted in extra billing. When the
Sheriff’s records indicate the Town has received less service, a refund is made. Cost increases are limited
to annual adjustments not exceeding inflation +2%. The subject of renewal will be presented to Council
in its meeting this month.
Discussion of Town investments, property tax receipts, and CalPERS annual pension cost report:
A memo from the Town’s investment advisor addressing questions raised in the last FIC meeting was
handed out. A discussion will be held in the next FIC meeting. A report by the Town property tax
advisors, HdL was handed out and briefly reviewed noting the Town property tax income increased more
than planned but due to a budgeting error, there is very little difference between the amount budgeted and
the amount projected to be received this year. CalPERS annual pension cost report was received and will
be discussed in more detail in February when the Town’s actuary, Bartel will attend the meeting. CAFR
disclosure of the unfunded pension liability which grew to more than $2 million was recommended.
Finance Department activities of interest:
Richard Lee has accepted another position and his last day with Town is 12/21/13. A temporary
replacement who has worked at the Town prior to Mr. Lee’s hiring will begin on 12/6/13. The
Committee and staff wished Mr. Lee well and thanked him for his service to the Town.
Presentations from the floor:
None.
Proposed topics and dates for future meetings:
The next special scheduled FIC meeting is January 13, 2014 at 4 pm when the town’s proposed new user
fees will be reviewed. A meeting with Bartel, the Town’s actuary, and R Chiu to discuss private roads,
are tentatively scheduled for the February meeting, and presentations on the 2014 Budget, insurance,
advance funding employee benefit liabilities, investment program options and opportunities to increase
Town revenues will be scheduled as time and material become available.
Adjournment:
The meeting adjourned at 5:50 pm
Respectfully submitted by Roddy Sloss, Committee Secretary