HomeMy WebLinkAboutFebruary 27
Finance and Investment Committee Special Meeting
Town of Los Altos Hills
Town Hall, Wednesday, February 27, 2017
The meeting was called to order at 4:00 pm by Chairman Sloss.
Members present: Allan Epstein, Kjell Karlsson, Betty Kayton, Susan Mason, Stan Mok, Chris Nam,
Bill Silver, Roddy Sloss and Chris Welborn.
Members absent: None
Associate members absent: Jim Lai; Frank Lloyd
Council present: John Radford; Gary Waldeck
Staff present: Pak Lin, Administrative Services Director and Karen Huang, Finance Manager
Public present: None
Approval of minutes
January 9, 2017 meeting minutes were approved as presented by members who attended that meeting.
Report by Gary Waldeck on recent Council activities of interest.
Mr. Waldeck reported on Term Limits for Committees and a 360 Committee formed to evaluate key Town operations
covering Planning, Building, Public Works and the City Manager’s office. RFP responses from consultants for this
project are expected by March 3, 2017. In response to a question, Mr. Waldeck noted the Town did not incur any
significant storm damage to date.
Report by Pak Lin on Finance Department activities of interest
Ms. Lin noted that the Town was awarded another consecutive annual GFOA for excellence in Annual Budget
reporting. And the Committee congratulated Ms’s Lin and Huang for this accomplishment. Interim and final field
work dates for the Town’s annual audit were moved up compared to last year to allow more time for work on the
CAFR. Workers compensation insurance provider changes are proceeding with nothing new to report.
Report on Mid Year Budget Update by Pak Lin and Karen Huang
Ms. Lin introduced the report and asked Ms. Huang to present slides distributed before the meeting. The midyear
budget review constitutes a review of major revenue and spending items and is characterized as a ‘soft close’
indicating that all accounts were not reviewed and updated. Major anticipated variances in revenues and spending
were presented and discussed. Certain nonrecurring items are being forwarded to Council for formal budget
amendments while others although currently anticipated will be deferred to the yearend fiscal closing budget review.
Planning and timing of the sewer rehabilitation project was discussed and Messrs. Epstein and Waldeck encouraged
responsible staff to let engineering contracts at a time most advantageous to the Town. Mr. Radford requested a report
in the March Council meeting on the impact of unfilled staff positions on the budget. The topic of Upcoming
Concerns focused on increasing pension costs. Discussion of capital reserves and pension prepayments were held
noting that PFM, the Town’s investment consultants and Bartel and Associates the Town’s actuarial consultants are
scheduled to make related presentations to the Committee later in the year. Finally, the Committee thanked the staff
for the thoughtful presentation format for this meeting and supplemental presentations to be presented to Town
Council in its March meeting.
Continued
February 27, 2017 FIC minutes, continued page 2.
Report on proposed changes to the FIC Charter by Allan Epstein
At the mayor’s request, Mr. Epstein, the committee’s Vice Chairman, will be presenting a review of the committee’s
recent and planned activities to the Town Council in its March meeting including proposed updates to the Committee’s
Charter. Mr. Epstein presented and discussed his proposal which the Committee agreed upon with clarification
changes.
Report on mailings to the Committee by Town Staff since the last meeting by Roddy Sloss
Mr. Sloss noted that the Town had recently published a report by VW Housen on sewer meter readings, and Outside
Counsel issued a report on California legislation affecting second dwelling unit costs particularly with respect to sewer
charges. Mr. Sloss explained that those reports deal with matters raised by Mr. Epstein and Mr. Sloss, respectively,
and were sent to all committee members as a procedural matter. Mr. Sloss noted that separate Town Projects were
underway affecting both of those subjects and they would be brought to the Committee closer to resolution of the
respective projects.
Presentations from the Floor – None.
Proposed topics and dates for future meetings
The next FIC meeting will be a Regular meeting on Monday, April 3, 2017 at 4 pm. The non recurring topics will be a
review of Town investments and a discussion of prepaying Town pension costs both presented by PFM, the Town’s
investment managers. Other future topics are: Workers Comp provider changes, Review of long term capital plans
and policies; Prepayment of Pension liabilities; Financial policy and procedures review; Description of new Planning
and Building software; Review of FIC Monthly Project Summary Report; Review Finance Department quarterly report
on financial controls; Over/under absorption of Building and Planning fees; Audit of franchise fees (assure annexed
area fees are included and Purissima Water status); Sewer CIP status report comparing planned to forecast spending
and related cash management plan; Update cost allocation model for 1) internal service programs and 2) improve
recurring overhead allocation; Reserve Policy updates; Improve long term capital plan to include vehicles, equipment
and buildings; and Results of Ad Hoc Sewer Rate Committee’ work.
Adjournment: The meeting adjourned at 5:45 pm
Respectfully submitted by Roddy Sloss, Committee Secretary
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