HomeMy WebLinkAboutFebruary 12Finance and Investment Committee Special Meeting
Town of Los Altos Hills
Town Hall, Monday, February 12, 2013
The meeting was called to order at 4:10 pm by Chairman, Jean Mordo.
Members present: Allan Epstein, Kjell Karlsson, Frank Lloyd, Susan Mason, Stan Mok,
Jean Mordo, John Radford, Bill Silver and Roddy Sloss.
Members absent: Jim Lai and Gary Waldeck
Staff present: Yulia Rasulova, Administrative Services Director, Richard Chiu, Public
Works Director, and Richard Lee, Finance Manager,
Guest present: AJ Major, partner, Vavrinek, Trine, Day – town’s auditors
Public Present: John Harpootlian, Council member, and Jim Abraham, resident
Approval of minutes:
Minutes of the December 3, 2012 were approved as corrected.
Update on review of private streets:
Richard Chiu updated the report he gave in the December 3, 2012 FIC meeting noting that a
study session is scheduled on March 14, 2013 in which town staff, the town’s attorney and a
representative of the fire district will be in attendance. Mr. Chiu noted that approximately 70%
of the Town’s street’s are public and 30% are privately owned at present.
FY 2012 Audit and CAFR status:
Copies of the near final draft CAFR were sent to members before the meeting and hardcopy has handed
out in the meeting. Mr. Lee presented 16 slides covering the financial highlights in the draft CAFR.
Major items in the CAFR that were changed or absent from the FY 2012 budget were: 1) a $1.2 million
reserve for the Road Impact Fee refund; 2) $1.7million unfunded and unrecorded pension liability as of
June 30, 2011; 3) an increase in the unrecorded and unfunded OPEB liability of $.8 million and 4) rising
insurance costs due to a prior year bicycle accident settlement.
Mr. Major noted that his firm will render an unqualified opinion on the FY 2012 financial statements and
there will a letter issued to the Town Council noting internal control weaknesses related to unrecorded
fund transfers for operations and debt service that resulted in adjusting journal entries proposed by the
auditors. Other less material internal control items were discussed related to physical inventories of fixed
assets, and other less material accruals that were adjusting entries proposed by the auditors. Ms. Rasulova
noted that the Town will prepare a formal response to each of these items as part of the formal submission
to Town Council.
Update on Rate and Fee Study
Ms. Rasulova reported that Willdan Financial Services has been selected to perform the two studies and
their report is expected to issue in time to act on it in the Fiscal Year 2014.
continued
Minutes – February 12, 2013 Finance and Investment Committee meeting, continued - 2
Update on Sewer Rate Study
Ms. Rasulova reported that six proposals from independent consultants had been received and two
candidates were interviewed. A consultant’s report is expected to issue in time to act on it for fiscal year
2014 billings.
Update Westwind Barn status:
Ms. Rasulova reported that a request for proposal for overall Barn management has issued and the Town
is proactively soliciting candidates to propose. Responses are due on March 8, 2013.
Report by John Radford on recent Council activities of interest:
Finding a financially viable resolution path for accepting private streets is receiving current attention by
the Council. The Fremont pathway is nearing completion.
Presentations from the Floor:
None.
Proposed topics and dates for future meetings:
The next FIC regular meeting is scheduled for Monday, March 4, 2013 at 4pm. An investments
presentation is planned by the Town’s investment MANAGEMENT firm, and a review of
unassigned reserves and major estimated and unfunded liabilities will be presented by Town staff
and committee members. Topics suggested for future meetings are reviews of the Town’s
insurance and safety costs.
Adjournment: The meeting adjourned at 5:50 pm
Respectfully submitted by Roddy Sloss, Committee Secretary