HomeMy WebLinkAboutSeptember 12DRAFT Finance and Investment Committee Regular Meeting
Town of Los Altos Hills
Town Hall, Monday, September 12, 2011
Chairman, Allan Epstein, called the meeting to order at 4 pm.
Members present: Allan Epstein, Jim Lai, Frank Lloyd, Jean Mordo, Bill Silver and
Roddy Sloss.
Member absent: Stan Mok, John Radford, and Lalla Stark
Staff present: Nick Pegueros, Finance Director
Guests present: Carolos Oblites, PFM Management; Greta Davis, MATRIX Consulting Group
Public Present: Kjell Karlsson
Approval of minutes: Minutes of the August 1, 2011 meeting were approved as submitted.
Investment Review – presented by Carlo Oblites, PFM Asset Management LLC
Mr. Oblites reviewed his handouts, investment program results and related recent economic developments.
After discussion, the following actions were recommended by the Committee:
1. Subject to the results of PFM Management review, invest up to $2 million in the upcoming State of
California Revenue Anticipation Notes sale;
2. Subject to the results of PFM Management review, invest up to $2 million in corporate bonds;
After discussion noting available unreserved and undesignated capital, and subject to Town Council review and
approval, prepay the Town Hall Lease at or near September 16, 2011 in the amount of approximately
$1,323,000.
Final Report on Cost of Services Study presented by Greta Davis, Senior Manager for the author,
MATRIX Consulting Group.
After an introduction by Mr. Pegueros, Ms. Davis reviewed and took questions on the subject report handed
out before and at the meeting. Several questions were posed related to gaining an understanding of past and
proposed practice as well as the recommendations and underlying reasoning. Committee members requested
that the report be presented again at the next FIC meeting including the following information:
1. Pro forma information showing results if related Town personnel are fully absorbed for the year, and
over-absorbed (i.e. consultants are engaged to address overload.)
2. Stratify results between Building Department and Planning Department highlighting results noting
charges that are deposit based and fee based.
3. Present current year actual results highlighting hybrid charges based on fees and deposits and compare
to proposed scheme of either deposits or fees showing line item differences and overall absorption
differences; and
4. Propose a scheme where fees are fixed and less than 10 categories are utilized and project FY 2011
results using that scheme.
5. Provide examples of the items that fall into “All Other” category for fees e.g. line item 59 in report
attachment A.
Report by Jean Mordo on recent Council activities of interest:
Nothing to report.
DRAFT FIC Minutes September 12, 2011, continued page 2.
Report by Nick Pegueros on Finance Department activities.
Mr. Pegueros noted that interim annual audit activities were completed on schedule without incident and final
year end audit activities are scheduled this month. A CAFR draft report is planned for presentation at
committee’s November meeting. Also, the new two tier pension plan is now in effect.
The draft new procurement policy will be presented at the next FIC meeting due to time constraints at this
meeting.
Proposed topics and dates for future meetings:
The next regular meeting is scheduled for 4 pm, Monday, October 3, 2011. The non recurring topics are: a)
Follow-up on the aforementioned MATRIX fee study and presentation of the proposed Professional Services
Bidding Policy.
Adjournment:
The meeting adjourned at 5:55 pm
Respectfully submitted by Roddy Sloss, Committee Secretary