Los Gatos council authorizes $191,000 package of fiscal studies to build a 10-year forecast

The Los Gatos Town Council on Oct. 21 unanimously authorized the town manager to negotiate and execute an agreement with NHA Advisors for a suite of fiscal studies and a 10-year forecasting model in an amount not to exceed $191,000.

Assistant Town Manager (presenter) told the council the work package includes a fiscal condition analysis, a fiscal impact analysis and an asset-liability-management (ALM) study. "Staff recommends authorizing the town manager to negotiate and execute an agreement with NHA Advisors for the full suite of core RFP services excluding the optional wildfire study" and to fund the work from the unassigned fund balance, the presenter said.

Why it matters: Council members said they want a longer-term view of revenues and liabilities as major development projects proceed. Council Member Renie said the three studies together produce the most robust 10-year forecast, including pension scenarios tied to ALM work. "You really need to do all three to get the best forecasting model," Renie said during questions about sequencing and assumptions.

What the council discussed: Members pressed staff and the consultant team about scope, cost and timing. The staff-recommended alternative scope removes two optional decision-support elements from study one to reduce near-term cost; staff said the total project was expected to take about six months but would deliver interim results earlier. Vice Mayor Moore and others emphasized that interim assumptions should be reviewed by the finance commission and council as the work progresses.

Cost and contract details: Staff clarified elements in the RFP and desk item: the study-one base cost shown in the staff report is roughly $105,500 with options that could raise the figure; study two was listed at $18,000 and study three at $50,000 in the procurement materials. Team-management services and other components were discussed; the council approved a single authorization covering the base studies and team management for a total not to exceed $191,000 and amended the motion to appropriate $191,000 from the unassigned fund balance.

Quotes: "We will provide interim information and engage the finance commission on assumptions," staff said. Council Member Badami, who moved the authorization, said the package would allow the town to understand long-term liabilities and growth impacts before making policy choices.

Next steps: Staff will negotiate the agreement with NHA Advisors and return with executed contracts as required by town procedures. The council directed staff to coordinate interim deliverables and to involve the finance commission and departments in validating assumptions.

Provenance: Topic introduced SEG 262; discussion and vote concluded SEG 1134.