HomeMy WebLinkAboutFebruary 1DRAFT Finance and Investment Committee Meeting
Town of Los Altos Hills
Town Hall Council Meeting Room
Monday, February 1, 2010
Chair Roddy Sloss who prepared these minutes called the meeting to order at 5:05 p.m.
Members present: Allan Epstein, Jim Lai, Frank Lloyd, Jean Mordo, Roddy Sloss
Members absent: Stan Mok, Lalla Stark
Staff present: Nick Pegueros, Finance Director
Guest: Paula, Cone, HdL Coren & Cone
Public present: Bill Silver
Approval of minutes: The September 21, 2010 meeting minutes were approved as submitted.
Report by Jean Mordo – recent city council activities of interest
Annexation by the Town of approximately 265 acres of Hidden Villa including only the “developed” portion
of the property is proceeding at cost of approximately $55,000 most of which are internal costs Annexation
of Hidden Villa is not expected to result in tangible benefits (such as property tax revenue) or significant
recurring costs to the Town.* Hidden Villa is adequately financed and desires to be part of the Town
primarily due to ease of access to Town administration as compared to County administration related to its
future development plans The FIC requested that responsibility for Moody road maintenance be determined.
Water conservation continues to be a priority as Purissima Hills Water District serving a majority of the
Town’s residents has a severe water shortage. The Town’s Water Conservation Committee is recommending
two actions: 1) new Construction will require an approved water use plan that limits landscape irrigation, and
2) future water bills will display a ratio of actual use compared to recommended (non binding) use in order to
keep this issue in focus.
The Town’s Undergrounding Committee is utilizing Nick Pegueros support and has identified several parcels
of 9-15 homes who have expressed interest in undergrounding that will be used for initial feasibility testing.
A Mello-Roos Community Facility District is being considered.
Report by Paula Cone on future property tax revenues:
Ms. Cone presented handouts and noted that for the fiscal 2009-2010 year the Town’s property tax revenues
will increase approximately 3% compared to a 1% budget assumption. A reasonable assumption for the
2010/2011 year is that property tax revenues will probably not increase (or decrease) compared to 2009/10.
Ms Cone noted that due to a decline in the CPI the Santa Clara County Assessor plans to decrease assessed
values for all parcels by 0.237% in 2010/2011. This reduction is not subject to “catch-up” adjustment for
temporary market value declines because it is driven by a CPI decline.
Comments by Nick Pegueros on recent Finance Department activities:
The June 30, 2009 annual financial statements will be in final draft form by February 10, 2010 when they
will be reviewed by the Town’s auditor. The MD&A portion of the CAFR will be completed before month
end. The FIC will be asked to review the CAFR in its March 8, 2010 meeting. Nick will include a general
ledger summary with the FIC’s review copy.
continued
DRAFT - Finance and Investment Committee Meeting Minutes, Monday, February 1, 2010
Recruiting for a Town financial manager reporting to Nick Pegueros with the skills and experience to serve
as Nick’s back-up is proceeding. An initial group of 104 applications has been narrowed to two candidates
who have been evaluated for both competence and compatibility. A final decision, reference checking, offer
negotiation and start date are yet to be completed. The successful candidate is expected to begin work
around March 1. In house training should be completed in September.
Tyler Technologies system software acquisition and final negotiation are proceeding with the following
milestones: onsite reference checking at the town of Hollister on March 3, presentation of full proposal
including Tyler’s commitment to maintain the software purchased for five years or longer is expected to be
presented for review at the March 8, 2010 FIC meeting.
Retirement benefit planning options for the Town’s retiree medical benefits were discussed. The FIC asked
for clarification of the Town’s existing pension obligations noting the following questions raised in the
September 21, 2009 meeting:
1. Present a list of other governmental entities in the Town’s CalPers retirement pool;
2. Can the Town withdraw from CalPers and if yes, what are the requirements?
3. If other members of the Town’s CalPers retirement pool default, do the non-defaulting members
assume their obligations, or are retirees of the defaulting member at risk, or is there another
outcome?
4. What is the Town’s cash balance and what are the existing restrictions on those funds?
5. The Committee requests that the Town receive a letter from CalPers stating: 1) the existing
obligation for unpaid past service costs, 2) a schedule of the remaining payments; 3) amount
required currently and each year in the future to retire this obligation through prepayment; and 4)
other opportunities, if any, to mitigate this obligation (i.e. withdrawing from CalPers.)
In general, the FIC favors a review of this subject but expressed a reluctance to break new ground due to the
limited resources available to work on this priority.
Presentations from the floor - none
Review of FIC future meeting calendar.
The next FIC meeting is scheduled for March 8, 2010 at 5 pm including Tyler software recommendation
review and June 30, 2009 audited Financial Statement review.
Adjournment - The meeting adjourned at 6:30 p.m.
Re Hidden Villa:
* Nov 12, 2009 Council minutes state : “The agency fees and costs for the annexation have been estimated at
$51,000. Additionally, there will be internal costs such as legal representation, survey and title work, as well
as staff and Board time that Hidden Villa will incur.” The Council passed a motion authorizing $51,070 to
be spent. LAFCO has required that the adjacent 11 properties be included in the annexation as well as the
entire 1600 acres of Hidden Villa property, however, the Town is appealing that decision since the larger
areas fire protection could not be provided by the local fire district.