HomeMy WebLinkAboutNovember 14Town of Los Altos Hills
F&I Committee, Town Hall, November 14, 2019
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Finance and Investment Committee Special Meeting
Members Present Allan Epstein, Cheryl Evans, Susan Mason, Stan Mok, Chris Nam, Medha Rishi,
Roddy Sloss.
Members Absent Bill Silver, Chris Welborn.
Associate Members Present Frank Lloyd. Associate Members Absent Jim Lai.
Council Present Roger Spreen, Mayor. Michelle Wu, Vice Mayor.
Staff Present Carl Cahill, City Manager. Sarina Revillar, Administrative Services Director (CAP Study
only). Zach Dahl, Planning Director (Introduction Only). Nicole Bowersox, Public Works Director.
Guests Present Courtney Ramos, V.P. Matrix Consulting Group. Public Present Kjell Karlson.
Mr. Sloss, Chairman, called the meeting to order at 4:02 pm. Approval of minutes - Roddy Sloss.
The September 9, 2019 meeting minutes were approved by members in attendance.
Agenda Items
1.Introduction to new Planning Director, Zach Dahl by Carl Cahill.
2.Introduction to new FIC committee member, Cheryl Evans by Roddy Sloss.
3.Matrix Consulting Group: Report on Cost Allocation Study (CAP) - Courtney Ramos Vice
President, Matrix Consulting Group.
a.Ms. Ramos presented her report utilizing two handouts: Overview of Results of the Full
Cost Allocation Plan Study and 19-20 Overhead Cost Allocation. The process used by
consultant to allocate indirect costs in a fair and equitable manner was described.
b.During the discussion, it was noted that the CAP Study serves as a foundation for third
party billings made by Town departments for fees such as Building, Planning and Sewer.
These also include other allocated and direct costs as described in separate respective
studies.
c.In totality, $2.46M are the costs associated with central service depts. $2.06M (84%) is
eligible to be allocated to Town Funds and Departments - certain general public related
expenditures are not eligible for allocation to departments.
d.FY20 Budget projected $317k to be recovered from non-General Fund sources (COPS and
sewer funds), but Matrix process estimated potential recovery of only $218K(69%).
e.Overhead cost allocations for all departments were included in the handout. Ms. Ramos
answered questions clarifying the results and use of the figures.
f.Question surrounding Internal service funds (ISF) was posed by Mr Sloss; which include
town center, corporate yard and vehicle operations. Being a separate fund, these direct
costs are allocated in a similar but separate manner to the departments utilizing these
services, and do not go through this CAP plan.
g.ISF allocation will be done at a separate time.
Town of Los Altos Hills
F&I Committee, Town Hall, November 14, 2019
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h.FIC is overall comfortable with methodology and selection of allocation bases proposed
by the CAP study. Study will go to council on Dec 4. Staff will send out final version of
study to FIC members.
Report on Recent Activity:
4.Mayor Spreen: Special Council meeting will be held on December 4, topics include 5G wireless
antenna siting, reach building codes dealing with fire and energy.
5.Mr Cahill: Real estate transactions (~10%) down from last year but more in line with previous
years. May translate into slower property tax revenue growth.
6.Mr Sloss: asked about the schedule for the OPEB actuarial study. Mr. Cahill reported that he
believed it had been received and if so, he would send it to the Committee.
7.Mr Lloyd: presented the recent state auditor's report on the financial health of all California cities.
Town was given an excellent rating and finished with 93.6 points out of a possible 100 points.
Other Matters:
8.Mr. Sloss: Provided some highlights from CalPERS 2018 annual pension reports, which was
issued about 45 days ago. FIC will discuss the reports in detail at its meeting in about two months
and decide whether to recommend to Council regarding prepayment of unfunded liabilities.
a.Town has two newer pension plans, but the majority of unfunded liabilities are in the first
plan.
b.Out of 73 people in the plan, only 21 are current employees, the balance are either retired
or work somewhere else. No action can be taken that would materially reduce the Plan’s
overall cost.
c.Town may prepay the unfunded past service liability and benefit from the interest rate
savings. The liability increased in 2018, despite the Town prepayment of $1.3M last year,
due to method and assumption changes. The unfunded liability has increased to $2.3M.
d.Over three years, discount rate was reduced from 7.75% to 7%, with no further change
proposed. If overfunded, then 7% interest will be subjected on the overpayment - this is to
be discussed further at the forthcoming meetings.
e.Mr. Epstein will send hyperlinks to the CalPERS pension reports to Mr. Cahill and he will
distribute them to the Committee.
9.Next meeting - Date in December to be determined based on CAFR availability. Mr. Cahill to
advise date.
Adjournment At approximately 5:25 pm, there were no further matters to be discussed and the meeting
adjourned.
Respectfully submitted: Medha Nicky Rishi, Committee Secretary