HomeMy WebLinkAboutDecember 6Finance and Investment Committee Meeting
Town of Los Altos Hills
Town Hall Council Meeting Room
Monday, December 6, 2010
Chair Allan Epstein called the meeting to order at 3:20 p.m.
Members present: Allan Epstein, Jim Lai, Jean Mordo, Stan Mok, Roddy Sloss, Lalla Stark
Members absent: Frank Lloyd, Bill Silver
Staff present: Nick Pegueros, Finance Director, Anna Erickson, Interim Finance Manager
Guest present: AJ Major, partner, Vavrinek , Trine, Day & Co. LLP (auditors)
Public Present: None
Approval of minutes: The September 13, 2010 meeting minutes were approved as corrected.
Review 2009/2010 Financial and audit results:
Draft 6/30/2010 annual financial statements were distributed by email on Friday, December 3, 2010 by AJ
Major noting that MD&A and pension data is not complete. AJ Major noted that audit work is substantially
complete and that an adjusting journal entry was proposed by the auditors and accepted by management to
accrue retention payments due to the West Loyola sewer project contractor. Other items noted in the audit and
reported to management are: a signed I9 form is missing (already corrected); uncashed checks more than 18
months old had not been canceled (Nick stated future checks issued will include a message noting they are void
if not cashed in 90 days); AB1600 report items (unclaimed amounts due third parties) were not current (Nick
stated the report will be updated and corrected); and auditors were not performing the review of the Town’s
investments anticipated by the Town’s investment policy (After discussion the FIC recommended the
Investment Policy be revised to eliminate this requirement as existing review work performed by the auditors is
sufficient. AJ Major and Nick Pegueros to propose new language.)
The FIC members posed several other questions that were discussed. Nick will draft a response to written
questions submitted by FIC members covering these and other points and distribute it to the Committee.
Report by Jean Mordo on Recent Council Activities of Interest:
Resulting from the county Grand Jury investigation on opportunities to lower costs, an AdHoc Committee
comprising Jean Mordo, John Radford, Carl Cahill and Nick Pegueros are studying Town pension benefits and
concluded no changes to existing benefits should be made at this time and that further study of alternatives to
lower costs will be undertaken by this committee.
Gary Waldeck will head a Council study of possible air and water pollution by a quarry neighboring the Town
for the purpose of making a recommendation to the County in connection with renewal of the quarry’s operating
agreement.
Report by Nick Pegueros on Recent Finance Department Activities:
Anna Erickson was introduced to the FIC by Nick who stated a formal recruitment of the Town Finance
Manager position would begin in the coming weeks.
Tyler financial software conversion is underway. Fiscal year 2009 financial information conversion has been
completed and the 2008 conversion is set to begin. Going live on the Tyler system is expected to occur in the
next few months.
Minutes of December 6, 2010 Finance and Investment Committee meeting – page 2.
Quarterly Investment Report review:
The 9/30/10 subject report distributed to Council on 11/18/10 was handed out. The Committee requested a
review of investments by the town’s investment advisor (PFM) at the February meeting.
Sewer System Reserve and Rate Review update:
Allan Epstein reported that this work is underway and a draft report is expected in time for consideration during
the 20010/11 budget cycle.
Proposed topics and dates for future FIC Meetings:
A meeting on January 10, 2011 at 5 pm was scheduled to discuss the 2009 CalPERS pension report issued
earlier in this month and the OPEB actuarial study issued in the third quarter. Nick will summarize the reports
the FIC before the meeting. Time permitting, an investment review by PFM was proposed.
Adjournment - The meeting adjourned at 5:15 p.m.
Respectfully submitted by Roddy Sloss – Committee Secretary