HomeMy WebLinkAboutNovember 4Finance and Investment Committee Special Meeting
Town of Los Altos Hills
Town Hall, Monday, November 4, 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, Bill Silver, Roddy Sloss, and Gary Waldeck.
Members absent: None
Staff present: Carl Cahill, Town Manager, Yulia Carter, Administrative Services
Director; Richard Chiu, City Engineer / Public Works Director (for
Roadways discussion), and Richard Lee, Finance Manager
Guest present: Paulina Woo, Sr. Consultant, PFM Asset Management (for investment
discussion)
Public present: Nancy Couperus (primarily for Barn discussion)
Approval of minutes:
Minutes of the August 12, 2013 regular meeting were approved as submitted.
Report by Paulina Woo on Town investments:
Ms. Woo distributed and discussed a 20 page handout on the current climate for the Town’s investments,
an analysis of the Town’s investment portfolio, its’ recent investment performance and took questions
from committee members. Cash under management is presently approximately$ 9.7 million, 99% of
which is invested in short term US Treasury Notes with an average maturity of 1.7 years and a yield to
maturity of 0.38 percent. Investment returns presented do not reflect PFM’s fee which is estimated to be
approximately 1/10 of 1 percent per year. Ms. Woo was asked to consider the following two questions
and respond to the committee: 1) What yield are similar governmental entities earning on their cash
investments? and 2) What investment strategy and related yield does PFM recommend for the Town’s
investments?
Report on conversion of private roads to public roads by Richard Chiu:
Mr. Chiu reported that 16 private roads are being converted to public roads measuring approximately 2.5
miles and an additional 8 roads are under investigation. The incremental cost to the Town to maintain the
16 newly incorporated roads is estimated to be $10 million to be spent over a time period yet to be
determined but believed to be several years. Mr. Radford indicated he is interested in learning more
about opportunities to raise funds through taxation (or otherwise) to address this priority and Mr. Cahill
indicated he would respond to Mr. Radford’s request. Mr. Chiu is still refining estimates of work to be
done and related timing. He will report back to the Committee in March 2014.
Report on Barn operating and financing measures under consideration by Council:
Ms. Carter responded to questions from Mr. Radford regarding the major components of cost for
operating the Barn. Then Mr. Radford excused himself from the meeting while Mr. Waldeck described a
proposal he intends to present to the Council in its November 5, 2013 meeting comprising a
FIC minutes November 4, 2013 page 2.
new request for proposals including a menu of services such as a Year Around Riding Program, Pony
Club and public boarding, qualified parties may wish to propose. Then Mr. Waldeck excused himself
from the meeting and Mr. Radford returned to describe a proposal to be presented in the November 5,
2013 Council meeting involving a new Year Around Riding Program Operator and public boarding.
Also, Nancy Couperus expressed her preference for a community barn operated by a concessionaire at
least on a 1 year trial basis before considering other options such as closing the Barn to boarding and
possibly other current activities. All three proposals expressed a preference for Town management to be
extricated from managing the Barn. Ms. Mason asked if Barn financing through “endowment” was of
interest. Mr. Waldeck returned to the meeting. Next, Mr. Epstein polled committee members for their
preferences for operating the Barn. Responses included a subsidy of up to $80,000 to $100,000 per year
and proposals not involving Town management of the Barn. Mr. Sloss asked if exceeding an agreed upon
subsidy should result in closing the Barn or be regarded as a “budget overrun.” No one offered an
opinion in response.
Report by Yulia Carter on Finance Activities:
The new User Fee presentation will be ready for presentation to the Committee in its January 2014
meeting. Draft fiscal year June 30, 2013 financial statements are expected to be available December 2,
2013. Ms. Carter distributed a 12 page procedure for fiscal year end closing in response to a management
comment made by the auditors at the conclusion of the June 30, 2013 audit. Committee members were
encouraged to review the procedures and respond to Ms. Carter as there was not enough time remaining
to discuss this in the meeting.
Reports on Council Activities and RIF Refunds:
Reports on Council activities of interest and RIF refunds planned for this meeting will be covered in the
next Committee meeting.
Presentations from the floor:
None.
Proposed topics and dates for future meetings:
The next regular scheduled FIC meeting is December 2, 2013 at 4 pm when the town’s annual audit and
related financial statements will be reviewed. A meeting with Bartel and Associates, the Town’s actuary,
to discuss the CalPERS actuarial report for the year ended June 30, 2012, is tentatively scheduled for the
January meeting, and presentations on insurance, sheriff’s contract renewal, advance funding employee
benefit liabilities and investment program options will be scheduled as time and material become
available.
Adjournment:
The meeting adjourned at 6:00 pm
Respectfully submitted by Roddy Sloss, Committee Secretary