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HomeMy WebLinkAboutOctober 6Finance and Investment Committee Regular Meeting Town of Los Altos Hills Town Hall, Monday, October 6, 2014 The meeting was called to order at 4:10 pm by Chairman Epstein Members present: Courtenay Corrigan, Allan Epstein, Kjell Karlsson, Stan Mok, John Radford, and Roddy Sloss. Members absent: Jim Lai, Frank Lloyd, Susan Mason, Bill Silver and Chris Welborn Staff present: Yulia Carter, Administrative Services Director; Pak Lin, Finance Manager Guests present: Carlos Oblites, Director, Asset Management, PFM Group Public present: None Approval of minutes The August 25, 2014 Special Meeting minutes were approved as presented by all members in attendance who also attended the August 25, 2014 meeting. Proposed Changes to Investment Policy and Investment Update by Carlos Oblites Mr. Oblites reviewed a draft of the Town’s Investment Policy highlighting proposed changes from the prior FIC meeting. Committee members proposed additional changes. A final draft will be prepared and forwarded to Ms. Carter for presentation to the Council along with an adoption recommendation by the FIC and Mr.Oblites. A 14 page presentation reviewing the Town’s September 30, 2014 quarter ending investment program results was handed out and discussed by Mr. Oblites who also responded to questions. The September 30, 2014 portfolio duration, yield to maturity, and the performance for the quarter ended September 30, 2014 are all substantially equivalent to the portfolio benchmark. The investment outlook continues to be for low, slowly increasing interest rates. The impact of rising rates and mark to market was discussed in the meeting noting that rising interest rates will increase returns over time but depresses the price of existing bond holdings, which could result in lowering near term earnings or even some modest losses. Report on Council Activities of Interest by John Radford Mr. Radford commented that the City of Los Altos would like the Town to consider forming a JPA with it to fund and operate a community center. The Town and City are discussing a refund of excess amounts paid by the Sewer Fund for installing flow meters which ultimately did not function. Report on Finance department activities of interest by Yulia Carter Ms. Carter reported that the 2014 financial audit year end work began on schedule. Workers Comp insurance information is being gathered from third parties to evaluate the Town’s program. Also Ms. Carter is arranging a meeting with ABAG PLAN management to discuss its financial position at the request of the Ad Hoc sub committee comprising Ms. Carter, Ms. Corrigan, Mr. Karlsson and Mr. Sloss. Ms Carter presented the Quarterly Financial Report. October 6, 2014 FIC meeting, con’d. page 2. Westwind Community Barn and Concessionaire’s six month financial review by Allan Epstein A presentation on the matter was prepared and distributed to the Committee. Mr. Epstein reviewed a handout he prepared distributed before the meeting noting Barn performance from February through July 2014, the initial period for the new Concessionaire / Barn Manager (“VDE”), is slightly better than VDE’s initial estimate and substantially better than the Town’s budget. Mr. Epstein also presented historical comparative data including occupancy benchmarks. In response to questions, Mr. Epstein noted that VDE is generally pleased with her experience at the Barn to date, and Barn patrons are making favorable comments. Matters requiring special attention include stolen feed, and boarder complaints about one another. Mr. Radford expressed the Town’s thanks to Mr. Epstein for the considerable effort he put into the Barn Manager selection process and providing subsequent administrative support. Ms. Carter proposed a “performance” audit of VDE be conducted at the completion of FY’15. Presentations from the floor None. Proposed topics and dates for future meetings The Committee reviewed and updated the FIC Key Projects Report handed out in the meeting. The next FIC meeting date is Monday, November 17, 2014. Scheduled topics include progress on workers compensation and general liability insurance reviews, recommendation of finalized Investment Policy and review of the draft Audited FY’ 13-14 financial statement. Topics for future meetings include reviews of pensions; written Town policies, procedures and practices; midyear budget update; Sewer Fund rates; and a Westwind Barn audit. Adjournment The meeting adjourned at 6:00 pm Respectfully submitted by Roddy Sloss, Committee Secretary