Audit 11-05-2015 City of Cupertino
Audit Committee
Special Meeting
November 5, 2015
1. CALL TO ORDER
At 3:03 p.m. Lisa Taitano called the meeting to order at Cupertino City Hall, 10300
Torre Avenue, Conference Room A, Cupertino.
2. ROLL CALL
Community Members Present: Angela Chen, Eno Schmidt, Raymond Yin
City Staff Present: David Brandt, Kristina Alfaro, Lisa Taitano, Karen Guerin
Council Present: Rod Sinks
Absent: Darcy Paul
Guests: Mitch Barker (PARS), Rick Rosenthal and Susan Hughes (US Bank) all left
after item A
3. APPROVAL OF MINUTES
Schmidt moved to approve the minutes of the regular meeting of April 28, 2015.
Chen seconded and the motion passed unanimously.
4. ORAL COMMUNICATIONS - NONE
5. NEW BUSINESS
A. Retiree Health Trust Annual Performance Report by US Bank
Rick from US Bank gave a portfolio performance review as of September 30, 2015
and an economic/market outlook for fourth quarter. Mitch Barker from PARS, OPEB
Trust Administrator and Consultant gave a presentation of the PARS IRS-Approved
combination 115 Trust which gives the ability to prefund OPEB and/or Pension.
B. Treasurer's Investment Reports
Taitano gave a presentation of the June 30 and September 30, 2015 investment reports
to the committee. Schmidt motioned to approve reports, Yin seconded and the motion
passed unanimously.
C. Annual Approval of the City Investment Policy
Schmidt moved to approve the policy subject to clarification on Internal Control item
in policy. Yin seconded and the motion passed unanimously. This will be discussed
more at the February, 2016 special meeting.
D. FY2015-16 First Quarter Budget Financial update
Alfaro reviewed the First Quarter Financial report highlighting the most important
things. The committee liked the condensed/consolidated report. Schmidt moved to
accept the report subject to adding a caveat/footnote to the report, stating, to date the
City has yet to have its books audited and is subject to change after a full review by
the City's auditors. Yin seconded and the motion passed unanimously.
Cupertino Audit Committee Page 2
E. OPEB Actuarial Valuation Report as of January 1, 2015
Moved to February special meeting
F. Letter Update of OPEB Actuarial Valuation Report (including additional
contribution)
Moved to February special meeting
G. Confirm future committee meeting dates: 2/18, 5/19, 8/18, and 11/17
Moved to February special meeting
7. OLD BUSINESS
A. Private Letter ruling for Retiree Health Trust
Taitano moved this item to combine with 5A.
8. ADJOURNMENT
The meeting was adjourned at 5:12 p.m.
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Record' g Secretary