AC 10-24-2022Page 1
City of Cupertino
Audit Committee Regular Meeting
Minutes
October 24, 2022
CALL TO ORDER
At 4:00 p.m., Chair Moore called the regular meeting to order. This was a teleconference meeting
with no physical location.
ROLL CALL
Committee Members Present: Chair Kitty Moore, Mayor Darcy Paul, Committeemember Laura
Hammer, Committeemember Sophie Song
City Staff Present: Kristina Alfaro, Thomas Leung, Beth Viajar, Pamela Wu
Absent: Vice Chair Angela Chen
Guests: Carlos Oblites (Chandler), Rick Rosenthal (US Bank), Ryan Maxey (US Bank), Angela
Tang (PARS)
ORDERS OF THE DAY
Mayor Paul asked if items #1, 2 and 4 could be accepted as recommended and if there was a
second to have them opened to the public for comment. Chair Moore noted that she was
interested in hearing item #4. Chair Moore motioned for items #1 & 2 to be accepted as
recommended. Mayor Paul seconded. The motion carried unanimously by all members present.
1. APPROVAL OF MINUTES OF SEPTEMBER 26, 2022
The motion carried unanimously by all members present.
ORAL COMMUNICATIONS
NEW BUSINESS
2. Consider receiving OPEB and Pension Section 115 Trust Performance Report for Quarter
Ending September 30, 2022
The motion carried unanimously by all members present.
3. Consider the OPEB and Pension Trust Investment Policies
Leung provided an overview of the report. No public comment. Chair Moore questioned how
Section 115 trust money would be moved out of the account. Alfaro noted that Section 115 funds
are restricted. The Pension Trust is restricted for pension costs, and the OPEB Trust is restricted
for retiree health costs. To access funds, we would prepay $6 million in retirement costs for the
year to CalPERS, which would free up $6 million of expenditures in the budget or appropriations
that we wouldn’t have to spend. Chair Moore requested a change in the OPEB and Pension
policy’s communication schedule to reflect that the meetings will be conducted quarterly. Leung
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noted that staff would make that change. Mayor Paul motioned with recommended edits and
Committeemember Hammer seconded. The motion carried unanimously by all members present.
4. Consider the Monthly Treasurer's Investment Report for September 2022
Leung provided an overview of the report. Oblites provided an overview of the report. No public
comment. Mayor Paul asked for a walkthrough of the change in fair value numbers. Oblites
provided a walkthrough. Committeemember Song asked how much the management fee was.
Oblites noted that it was around 0.05% of assets under management per year. Mayor Paul
motioned, and Committeemember Song seconded. The motion carried unanimously by all
members present.
5. Consider the Monthly Treasurer's Report for September 2022
Leung provided an overview of the report. No public comment. Mayor Paul inquired about the
$60,000 payment for bottle fillers. How many do we have? And which parks were they located
at? Leung noted that it included 10 water fillers and 10 dog bowls. Mayor Paul asked if the public
could access the invoice. Alfaro noted that the invoice was in our financial system, so the public
could not view them. Mayor Paul asked if it could be requested via Public Records Act. Alfaro
confirmed.
Mayor Paul inquired about the $11,688 payment for fundraising services. Chair Moore asked
what the fundraising referred to. Alfaro noted that she found the contract but not the specific
project. Mayor Paul requested the agreements and if they could be matched with what was
approved by City Council. City Manager Wu noted that they would follow up with the
appropriate staff. Alfaro noted that the project manager confirmed that the contract was fully
completed. Chair Moore requested that it be included briefly in the report. Mayor Paul requested
the answers to how much was fundraised, if it has been set forth, and if fundraising was included
in the staff report. Chair Moore reiterated that the report to Council would include the contract,
the motion language encapsulated in the meeting minutes, the spen ding update, and a brief
statement on the outcome of the fundraising effort. Chair Moore motioned for the inclusion of
the bottle filler item, and Mayor Paul seconded. The motion carried unanimously by all members
present.
6. Consider the Audit Committee 2022 Schedule and Work Plan
Leung shared the workplan. Alfaro wanted to ensure the availability of the committee for
November 28th, as it is right after the Thanksgiving holiday. She noted that December reports
might not be available in time for the December 12th meeting, and they could be presented at the
January meeting. Chair Moore, Mayor Paul, and Committeemember Hammer noted their
availability. Committeemember Song noted that she would look at her calendar. Mayor Paul
proposed moving the December meeting to December 19th. Committeemember Hammer noted
her unavailability on the 19th. Committeemember Song noted her availability on the 19th. Chair
Moore requested staff to check in with Vice Chair Chen on her availability on the 19th. Chair
Moore motioned to move the December 12th meeting to December 19th at 4:00 p.m., and Mayor
Paul seconded. The motion carried unanimously by all members present.
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OLD BUSINESS
STAFF AND COMMITTEE REPORTS
FUTURE AGENDA SETTING
ADJOURNMENT
The meeting adjourned at 5:35 p.m.
Recording Secretary:
Janet Liang, Administrative Assistant