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HomeMy WebLinkAboutJuly 25Minutes of Finance & Investment Committee Monday, July 25, 2005 Town Hall Staff Break Room 26379 Fremont Road Los Altos Hills, California (Minutes approved at FIC meeting of August 25, 2005) The meeting convened at 6:20 p.m. Members present: Chair Lalla Stark, Frank Lloyd, Karl Kneip, Jim Lai, Stanley Mok Members absent: Wilf Corrigan and Doug Norby Councilmembers present: Jean Mordo Staff present: Administrative Services Director Sarah Joiner Approval of minutes The minutes of the meeting of June 14, 2005 were approved as written except for the following correction: “Lalla Carsten” should be changed to “Lalla Stark.” Report on investments and investment policy - Mok, Mordo Mok distributed copies of a yield report from First Allied Securities to illustrate various types of investments and yields. The group discussed investing a portion of the Town’s portfolio in Certificates of Deposit. If the Town wants to pursue investments in CD’s or other allowable investments, we would need to issue Requests for Proposals for brokerage or other investment services. Interest rates earned on LAIF accounts are net of fees; responders to our RFP would need to disclose fees that would be charged to the Town. Joiner will ask AJ Major of Vavrinek, Trine, Day & Co., the Town’s auditors, for information his firm has developed with respect to investments. Joiner will provide a draft investment policy at the next FIC meeting that reflects the group’s consensus on recommended investments. Report on Charter City – Why cities have changed to charter status, politically acceptable motives for the change - Lai Lai distributed copies of a memo which was issued by City Attorney Steve Mattas on July 11, 2003. The City of Milpitas had considered a change to charter city status. Lai will follow up with that city to see if the change was approved and why Milpitas considered the change. Proposed format for a monthly report to the City Council - Joiner Joiner presented a sample format for quarterly reports to the FIC and City Council. Due to the current workload, this report would be presented after the fiscal year 2004/2005 audit work is completed. Minutes of Finance & Investment Committee July 25, 2005 Page 2 RFP for compensation study - Joiner Joiner presented a draft RFP for employee benefits consulting that will be presented to the City Council at the meeting of August 3, 2005. Proposal to sell Town-owned O’Keefe property to Bullis Charter School – Mok Mok reported that the Bullis Charter School was not interested in pursuing the O’Keefe property as a site for the school. The school board thought the use of the site would be controversial and the need to obtain voter approval to remove the property from open space protection would take too long. The Committee agreed to not recommend the property to the City Council as a site for the school unless the Bullis Charter School made a request for the property. Criteria for FIC membership – Lloyd Lloyd presented draft membership requirements for the FIC that would require a potential member to meet one of five criteria. One new criterion was added – “five years accounting and financial experience in a public corporation or municipal government or a privately held business.” The other criteria were amended as needed to require five years of experience. The Committee agreed to recommend the membership changes to the City Council. Explanation of “Finance Overview” (Page 18) - Lloyd This item was tabled for a future meeting. At City Council direction (07/21/2005): provide recommendations for $2.5 M financing alternatives for the purchase of land to be used for Bullis Charter School In connection with the discussion about the O’Keefe property, Mok provided information about the size and type of property that the Bullis Charter School would need. Chris Vargas and Nancy Couperus spoke about the use of the O’Keefe property as a site for the school. The Committee agreed to report to the City Council that there are adequate amounts of General Fund reserves to provide $2.5 million in funding to the Bullis Charter School. Presentations from the floor None Adjournment The meeting adjourned at 9:00 p.m. The next meeting will be held on Thursday, August 25, 2005. Minutes were approved as corrected at the August 25, 2005 FIC meeting.