HomeMy WebLinkAboutJuly 6 Finance and Investment Committee Meeting
Town of Los Altos Hills
Town Hall Council Meeting Room
Monday, July 6, 2009
Chair Roddy Sloss who prepared these minutes called the meeting to order at 5:00 p.m.
Members present: Allan Epstein, Frank Lloyd, Stan Mok, Jean Mordo, Roddy Sloss
Members absent: Jim Lai and Lala Stark
Staff present: Nick Pegueros, Finance Director
Associate Member: Doug Norby
Public present: Marj Green and Barry Young
Approval of minutes: The May 4, 2009 meeting minutes were approved as submitted
Report by Jean Mordo – recent city council activities of interest: Westwind Barn will be rebuilt
as initially anticipated with 35 stalls at an estimated cost of $1,050,000 based on construction bids
received. The Town will fund up to $880,000 as previously anticipated, Friends of Westwind Barn
will contribute $150,000 and the Los Altos Hills County Fire District will contribute $100,000. Jean
Mordo’s term as Mayor concludes this month and it is expected that Dean Warshawsky will
succeed him.
Report by Nick Pegueros on recent Finance Department activities of interest:
The Finance Department reorganization is proceeding. At present one full time employee has been
laid off and one temporary part time employee has been hired. The staffing plans calls for 2
permanent part time employees and a consulting local CPA firm for more advanced accounting
projects. Recruiting is underway. Permanent part time employees will receive pro rated employee
benefits. Incode, a new general ledger system, has been selected by Town staff and will be
presented to the FIC for review.
West Loyola Sewer Bond Issue review:
Anna Van Degna, Vice President, Public Finance for Stone and Youngberg LLC, underwriters for
the subject financing, and Scott Ferguson, attorney with Jones Hall, bond counsel for the subject
financing made an oral presentation covering highlights of the bond offering and ongoing
obligations and responsibilities of the Town and the West Loyola residents. Ms. Van Degna and
Mr. Ferguson noted that the offering was for $3.1 million that will be used to build Sewer lines for
47 parcels and 23 Connect Fees. The borrowing will be repaid by the owners of the 47 parcels in
equal proportion over 30 years beginning with the property tax bill payment due in December of
this year. If funds raised are not sufficient to complete the project, the Town or the affected
residents may choose to fund the remainder but are not obligated to do so. Similarly, if funds raised
are in excess of requirements, the excess can refunded to the property owners by reducing the
requirement for future payments through their property tax bills, or the funds could be used to call
in outstanding bonds or the excess funds could be used for future Sewer system maintenance.
continued
DRAFT - Finance and Investment Committee Meeting Minutes, Monday, July 6, 2009
Town responsibilities until the project is completed and accepted by the Town’s sewer fund are
primarily managing construction. Ongoing Town responsibilities are oversight over related
financial matters, and reporting material events and the Town’s financial condition to the
bondholders.
Ms. Van Degna, Ms. Green, Mr. Ferguson and Mr. Young excused themselves from the meeting at
this time.
Report on Town investments:
A presentation prepared by Carlos Oblites, Senior Managing Consultant, PFM Asset Management
LLC the Town investment advisor and current cash balances were distributed to the Committee for
review (but were not discussed) during the meeting.
Nick Pegueros introduced Ms. Chris Tompane, Senior Vice President, Comerica Bank and Ms.
Cheryl Wong, Vice President, Comerica Bank to describe Comerica’s CD Placement Program, a
financial service offered by Comerica to the Town for investing in FDIC insured bank CDs. Nick
Pegueros indicated the product is helpful to achieve the Town’s objective of providing Federal
government protection for the Town’s investments while optimizing interest rates for comparatively
small short term investments used to fund the Town’s cash requirements.
The Comerica representatives explained their product and addressed the Committee’s questions.
After discussion, the Committee recommended using the Comerica product 1) after amending the
Town investment policy to allow custodial accounts that include investments that are not serviced
by the Depository Trust Corporation and 2) providing un-invested funds held by Comerica are
deposited in an FIDC insured bank account at a .5% interest rate.
Presentations from the floor - none
Future Meeting Calendar: Next meeting is 5:00 pm Monday August 3, 2009 at Town Hall.
Adjournment - The meeting adjourned at 6:40 p.m.