HomeMy WebLinkAboutSeptember 15Finance and Investment Committee Special Meeting
Town of Los Altos Hills
Town Hall, Tuesday, September 15, 2015
The meeting was called to order at 4:30 pm by Chairman Epstein.
Members present: Courtenay Corrigan, Allan Epstein, John Harpootlian, Kjell Karlsson, Susan
Mason, Bill Silver, Roddy Sloss and Chris Welborn.
Member absent: Stan Mok
Associate members: Frank Lloyd, present; Jim Lai, absent
Staff present: Pak Lin, Finance & Administration Services Director
Public present: None (Betty Kayton announced on Agenda was not present)
Approval of minutes
The July 6, 2015 prior meeting minutes were approved by members attending the prior meeting.
Report on Council Activities of Interest by Courtenay Corrigan
One application has been received (deadline is September 21, 2015) for the open Council seat resulting from
Council Member Larsen’s resignation. If Council does not select a candidate from applications received, an
election will be held in the spring of 2016. Pursuant to Ms. Corrigan’s request, the discussion of the proposed
Community Center is deferred until the project is more completely defined. There is no update on private roads.
California Senate Bill 107 which among other things provides for larger future allocations to the Town of property
taxes paid by its residents passed in the legislature and is expected to be signed by Governor Brown. Beginning in
calendar 2016, $320,000 is estimated to be received by the Town with differing annual amounts indefinitely
thereafter in order to bring the Town into parity with similar allocations received by other California municipalities.
Monte Sereno, Saratoga and Cupertino will also receive similar incremental allocations of property taxes.
Second Quarter 2015 Review of Portfolio Investments by Allan Epstein
Mr. Epstein referred to materials distributed before the meeting prepared by the Town’s investment manager, PFM
Asset Management. He noted highlights of the presentation. Discussion comments included a) the Town’s
investments are highly liquid marketable securities with comparatively short maturities; b) investment earnings are
in line with similar portfolio’s and c) PFM found the Town in compliance with its investment policy. Carlos
Oblites, the Town’s long time representative from PFM, chose to leave PFM in favor of a position with a
government agency that will reduce his travel time.
Report on Finance Department activities of interest by Pak Lin
Ms. Lin announced that she has received the title of Finance and Administrative Services Director, a position she
was filling since the departure of her predecessor and that she will begin formal recruiting for a Finance Manager,
the position she previously held with the Town. Ms. Lin anticipates completing the Town’s annual audit in
November or December, similar to last year’s schedule. Work on replacing the Town’s systems for issuing permits
and business licenses remains in the formative stage pending availability of staff to explore and evaluate
alternatives. Work on the Town’s website is proceeding and a completion schedule is being developed.
September 15, 2015 FIC meeting minutes, con’d. page 2.
Ms. Lin made a presentation on the Town’s Worker’s Compensation, Property and General Liability insurance
costs noting that increases are being driven by higher payroll costs, the Town’s claims experience and higher excess
insurance rates resulting in an annual 27% increase in premiums totaling approximately $22,000 for FY 2016. Ms.
Lin also noted that Grants awarded were less than $5,000 for the current year compared to a history since fiscal
year 2009 of between an estimated $10,000 and $50,000 per year. During discussion further information was
requested on loss history, comparability to other similar agencies in the Town’s risk pool, details underlying
premium increases in excess insurance and workers compensation insurance, and alternatives, if any, to lower costs.
After further background information is evaluated, Mayor Corrigan indicated an interest in considering the need for
a meeting with ABAG (entity administering Town’s insurance) management.
Westwind Barn Six Month unaudited financial review by Allan Epstein
Mr. Epstein presented a financial review distributed to Committee members before the meeting he prepared of
Westwind Barn operations from January to June 2015. He discussed the points on the conclusion slide noting that
the Town’s annualized out of pocket operating costs are now below $30,000 and that the concessionaire selection
and award was a success. In response to questions Mr. Epstein noted that Barn occupancy is about 90%, Barn
programs are successful and growing, and user survey input is positive. In an upcoming planned meeting with the
concessionaire, Mr. Epstein will review the results of his report and inquire about unused capacity in lesson
programs. Ms. Lin indicated that she is working on defining the scope and costs for the required formal audit of
Barn operations. Mr. Epstein stated this was his final report on the Barn as operations are stable.
Presentations from the Floor
None.
Proposed topics and dates for future meetings
The next FIC meeting date is Monday, November 2, 2015 at 4:30 pm. Ms. Lin will inquire if Bartel and Associates
are prepared to report on the OPEB Plan, Ms. Lin will distribute the Cal PERS GASB 68 report and a discussion is
planned of the pros and cons of partially prepaying the CalPERS unfunded past service liability. To the extent
available, updates on topics noted for future meetings below will be presented. Topics for future meetings include
reviews of written Town policies, procedures and practices; accounting and reporting for insurance grants; OPEB
review, opportunities to prepay unfunded pension liabilities, if any, Filemaker / websites updates and updated
reporting format for Finance staff projects.
Adjournment The meeting adjourned at 6:10 pm.
Respectfully submitted by Roddy Sloss, Committee Secretary