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CEMETERY COMMISSION 2020/10/28 MinutesThe City of Lake Forest is subject to the requirements of the Americans with Disabilities Act of 1990. Individuals with disabilities who plan to attend this meeting and who require certain accommodations in order to allow them to observe and/or participate in this meeti ng, or who have questions regarding the accessibility of the meeting or the facilities, are required to contact City Manager Jason Wicha at (847) 234-2600 promptly to allow the City to make reasonable accommodations for those persons. CEMETERY COMMISSION MEETING MINUTES LAKE FOREST CEMETERY ZOOM MEETING WEDNESDAY, October 28, 2020, 5:00 P.M. I. CALL TO ORDER, ROLL CALL: Chairman O’Brien called the meeting to order at 5:03 pm I. ROLL CALL TO ORDER Chairman O’Brien called the October 28, 2020 Zoom meeting of the Cemetery Commission to order at 5:03pm. He noted the following commissioners: Dennis O’ Brien, John Anderson, David Hooke, Rommy Lopat, and Robert Thornburgh were present via Zoom as well as Chuck Myers and Phil Alderks representing City Staff. City Manager, Jason Wicha, was absent. Chairman O’Brien declared a quorum of commissioners to be present and the Zoom meeting is to be considered a formal meeting of the Cemetery Commission, with all actions undertaken at the meeting to be deemed enforceable. II.APPROVAL OF JULY 22, 2020 MINUTES Chairman O’Brien presented the meeting minutes to the Commissioners for approval. Commissioner Lopat recalled she requested asking for breakouts of fees and installation fees for various projects at the last meeting and asked for this request to be reflected in the minutes. Motion by Chairman O’Brien, seconded by Commissioner Anderson, to approve the meeting minutes from July 22, 2020 with the inclusion of information requested by Commissioner Lopat. Motion passed by unanimous voice vote. III.THIRD QUARTER INVESTMENT REPORT FROM WM BLAIR AND CO.: Tony Hoban from William Blair and Company reported on the Cemetery investment accounts for the third quarter of 2020. He indicated the overall assets in the combined accounts at the end of the quarter are over $10,000,000.00. A comparison from September 30, 2019 to September 30, 2020 shows an increase of twenty percent for the overall portfolio and reflects its continued strength. COMMISSIONERS PRESENT VIA ZOOM Dennis O’Brien, Chairman John Anderson David Hooke Rommy Lopat Robert Thornburgh STAFF PRESENT VIA ZOOM Chuck Myers, Superintendent of Parks, Forestry & Cemetery Phil Alderks, Cemetery Sexton STAFF ABSENT Jason Wicha, Secretary Treasurer, City Manager OTHERS PRESENT VIA ZOOM Tony Hoban, William Blair Dani Spann, Zoom Meeting Web Host Manager October 28, 2020 Page 2 Motion by Chairman O’Brien directing Tony Hoban to continue with current investment strategy regarding Lake Forest Cemetery investment with William Blair & Company. Second by Commissioner Thornburgh. Motion carried unanimously. IV.REVENUE / EXPENSE REPORT In reviewing the revenue and expense report for the period ending September 30, Chairman O’Brien indicated the Cemetery is currently running a deficit of $106,000.00, noting that a substantial portion of the deficit is reflected in the Cemetery’s buyback of lots and niches. He is not concerned with this deficit given that the pandemic may be impacting the rate of customers coming to the Cemetery to purchase lots and niches. Sexton Alderks reported the Cemetery has already collected $80,000.00 in lot and niche sales this month and is expecting to collect an additional $173,000.00 in outstanding invoices. Overall, sales are looking good, it may be that residents are planning ahead given the Covid-19 situation. At this point, the Cemetery is on track to have a positive year for the fiscal year ending April 2021 Chairman O’Brien noted this revenue gets the Cemetery to more than three quarters of the way to our revenue goal; the revenue situation is in good shape and there are no other operating expenses that would be a surprise for the budget. Chairman O’Brien added the issue of Cemetery personnel remains an ongoing issue. The Cemetery is currently missing one seasonal employee and it is now operating with three full-time staff, including the Sexton, and this deficit in personnel stretches the staff’s ability to maintain the Cemetery as expected. Further discussion will be needed on this issue when the Commission addresses the budget at the January 2021 meeting. Chairman O’Brien reported he has been in contact with the City Finance Director, Elizabeth Holleb, to arrange for a meeting with Lake Forest Bank and Trust for the purpose of negotiating a loan for an estimated $1,600,000.00 for the Memorial Garden Phase II project. Based on the report on our investment portfolio from William Blair and Company, there should not be a problem with securing a loan with the bank. The Commission will be looking for a loan with a 10-year term with a fixed interest rate of between 3¼-4%. VI.CEMETERY UPDATES A. Memorial Garden Phase II Superintendent Myers reported the Memorial Garden project is progressing to the extent that the engineering has been completed and reviewed by structural and civil engineers. Construction documents will be required and Craig Bergman is under contract to draft these documents. The next step will be for the Cemetery Commission to determine how to finance the project. Once a financing plan has been established and the Commission is ready to move forward, Craig Bergman’s staff will formulate construction documents, the project will need to be vetted through the City’s permit process, and it will need to be presented to the Historic Preservation October 28, 2020 Page 3 Commission (HPC) for review before the project can be sent out for bids. It would be practical to have the HPC review completed prior to the project going out for bids in the event the Commission requests changes to the plans. The project will likely be out for bid for four weeks. The bids will be presented to the Commission for approval and then presented before the City Council. Chairman O’Brien outlined the four project funding options which include the use of internal funds, a bank loan, piggybacking on a City bond, or a loan from the City to the Cemetery. He will meet with the City’s finance department to discuss costs and financing options for the project including the steps needed to secure bank financing and approval from the finance committee and the City Council. Commissioner Lopat inquired if the proposed changes to the Cemetery with the Memorial Garden Phase II project would impact the Cemetery’s status on the National Register of Historic Places. Supervisor Myers and Chairman O’Brien indicated they would obtain clarification on this issue from the Director of Community Development, Cathy Czerniak. B. Ravine Restoration Update Superintendent Myers reported a prior blowout east of the land bridge and the ravine has been restored. The blowout occurred when the lid blew off a storm water control structure resulting in major erosion. Myers said a total of $200,000.00 has been included in the budget this year as a match in the event we secured a grant for ravine restoration. There have been numerous attempts over the past several years, without much success, to secure grants to complete the entire restoration; the total cost for the entire restoration project is approximately $1,000,000.00. Currently, we have an area that needs to be addressed in a more immediate timeline that we are calling the ‘Sawyer’ Project which is located in the ravine behind the Sawyer family lot. Because we have not secured a grant as of this meeting staff is recommending moving forward on the Sawyer Project with funds earmarked for restoration. A restoration plan has been devised by an ecological engineering firm, and the plan has gone through the City of Lake Forest permitting process. The plan has been reviewed by the City’s engineering firm Gewalt Hamilton and the next step is to obtain the permit for the project from the City. Permits have already been obtained from The Army Corps of Engineers and Stormwater Management. It is important these projects are completed in a timely manner since these permits will expire in a few years. Bid documents are being prepared which will allow the project to go out for bid in a few weeks. Bids will then be presented to the Commission for approval to move forward with the project. It is hoped that the bids will come in under $200,000.00. Some portions of the ravine restoration can be completed in winter. The goal will be to complete a significant portion of the work by May 1st to avoid any noticeable impact on visitors to the Cemetery. October 28, 2020 Page 4 Superintendent Myers indicated he is awaiting results from the large grant proposal submitted to IEEPA; an announcement is not expected until February 2021. The grant was designed under the assumption that work would begin on the Sawyer Project as it is important for this project to be completed in the near future. VI.CONSIDERATION OF CEMETERY FEES AND CHARGES FOR FY 2022 Chairman O’Brien addressed the proposed Cemetery charges and fees for FY2022. He identified the first step in the budget process will be to address the fee structure and the second step will involve expenditures which will be addressed at the January commission meeting. It should be noted that the Commission has no control over Cemetery wage structure as this area is controlled by the City. The current fee for the highest priced graves is $14,600 and the proposed increase is to $14,800 - which is a 1.4% increase. The other categories of graves have a lower increase in price. The reference point is the 1.6% consumer price index which is the average for this time period to September 30. The Cemetery fees are keeping pace with this cost-of-living increase. The main reason all charges have not increased across the board at the same rate is the need to provide round dollar amounts when establishing prices for sales and services. Sexton Alderks indicated the Cemetery undertook a price comparison a few years ago with Rosehill and Graceland Cemeteries in Chicago and discovered the fee schedule for Lake Forest Cemetery is very competitive with their rates. Other local cemeteries may be less expensive, but these cemeteries are not identified as competitors. St. Mary’s Cemetery in Lake Forest is relatively sold out as is St. Patrick’s Cemetery on the City’s west side. A few of the local churches do have columbariums for urn inurnment. He estimated the Cemetery has approximately 50 years’ worth of graves remaining for sale. Motion by Commissioner Anderson to accept the proposed Cemetery fees and charges for FY2022. Second by Commissioner Thornburgh. Motion carried unanimously. VII.CONSIDERATION OF CEMETERY CAPITAL BUDGET Chairman O’Brien indicated the Cemetery Capital budget is spread out over four years from 2022 to 2026. The budget is an offshoot of the Commission’s earlier discussions. We have $200,000.00 in ravine restorations (Sawyer Project) and continue to add numbers for the east ravine restoration ($500,000.00); the Commission hopes to receive a $500,000.00 grant for the other half of the ravine restoration. Commissioner Lopat inquired about the small garden columbarium. Sexton Alderks indicated this is a future project with no set timeline; it will be a small garden columbarium located in Section E at the end of the bluestone chip path. Commissioner Lopat suggested the Commission should undertake a review of the comprehensive plan and update the plan within the next 6 to 12 months to reflect what has been accomplished and what still needs to be accomplished at the Cemetery. She suggested such a review should be undertaken by the Commission every ten years. October 28, 2020 Page 5 Motion by Commissioner Anderson to accept the capital budget; Second by Commissioner Hooke. Motion carried unanimously. VIII.OTHER MATTERS Chairman O’Brien noted Commissioner Lopat had requested a clarification at the last meeting about how the City determines what cash needs to be set aside for holding in the city bank account. He indicated the City wants the Cemetery to have a cash balance at the beginning of the fiscal year equal to our operating expenses. The Commission takes a cash balance at a certain point reflecting an estimate of expenses and revenue from that point to April 30th and arrives at a calculation that reflects our operating expenses for the coming year. Any excess that exists on April 30th is then transferred to William Blair. If there is a shortfall of funds, there would be a reverse transfer of money from William Blair to the City cash account at Lake Forest Bank and Trust. Chairman O’Brien noted that during his tenure on the Commission, funds have never had to be drawn from William Blair to be transferred to the City cash account. The reserve fund is basically the Commission’s investment portfolio with William Blair. There are no restrictions on the majority of the funds at William Blair, and the Commission maintains up to 10 percent in liquid funds so these funds can be accessed, if needed, without affecting our overall investment. For the Commission to take on a project beyond the scope of general operations, they would have to go through the process of identifying the project, obtain cost estimates, and go through city council to obtain approval. Commissioner Lopat inquired about the status of the Cemetery’s ability to accept credit card payments from customers for plots and services. Sexton Alderks indicated the Cemetery has been working on this issue with the City’s IT Department. Commissioner Lopat reiterated she remains concerned about the staffing levels at the Cemetery and would like to see the issue resolved in next year's budget. Chairman O’Brien indicated the staffing issue would need to be discussed with the City Manager and the Director of Finance to determine how the Commission can best approach the staffing issue. IX.CITIZENS’ OPPORTUNITY TO ADDRESS CEMETERY COMMISSION The Zoom meeting moderator, Dani Spann, indicated no members of the public called in to the meeting or submitted questions to be addressed by the Cemetery Commission. X. NEXT MEETING The next meeting of the Cemetery Commission is scheduled for 5:00PM on Wednesday, January 27, 2021 at 5:00PM XI.ADJOURNMENT The meeting was adjourned by Chairman O’Brien at 6:55pm.