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CEMETERY COMMISSION 2010/01/20 MinutesCEMETERY COMMISSION MEETING LAKE FOREST CEMETERY GATEHOUSE WEDNESDAY, JANUARY 20, 2010, 5:30 P.M. MINUTES ROLL CALL/ CALL TO ORDER: The meeting of the Cemetery Commission was convened at 5:30 p.m. at the Lake Forest Cemetery Gatehouse. The following members were present: Chairman Ronald Sevcik; Commission Members Ginny Grace, John Greene, Prue Beidler, and Colin Silvester; and Staff Members Robert R. Kiely, Jr., City Manager, Ken Leone, Superintendent of Public Works, and Phil Alderks, Cemetery Sexton. Also attending was Tony Hoban of William Blair and Company. CONSENT AGENDA: Chairman Sevcik presented the following items for approval: Approval of Minutes from the Cemetery Commission Meeting held on October 21, 2009 Approval of Minutes from the Special Cemetery Commission Meeting held on October 26, 2009 Sales Report Member Grace made a motion to approve the Consent Agenda with an amendment to the October 21, 2009 Cemetery Commission Meeting Minutes, (Item VIII, second paragraph, fourth sentence, should be corrected to report the on-site meeting had been scheduled for Tuesday, October 27, 2009). Member John Greene seconded the motion, which carried unanimously. FOURTH QUARTER AND END OF YEAR INVESTMENT REPORT FROM WILLIAM BLAIR AND COMPANY: Tony Hoban of William Blair and Company reported that he will be looking at the health care and energy sectors, where the Obama Administration has focused attention and he will continue to add equities to the portfolio over time. The Cemetery investments had a good year in 2009; stocks were up $110,000, cash was down; the second quarter was strong for stocks and the third and fourth quarters were positive. The Commission account is now 75% in equities. The fixed income account is in good quality corporate bonds. We want to be in safe and liquid bonds; it’s a conservative portfolio. Considering inflation may be coming over the next six to twelve months, we might want to make changes to the asset allocation. Inflation and rising interest rates will cause the value of the Cemetery’s current fixed income investments to go down. Member Greene observed that this might be a good time to increase the allocation to equities. City Manager Robert R. Kiely Jr. commented that existing restrictions on how the Cemetery’s private trust funds can be invested put limits on how much of the combined portfolio can be in equities. Member Colin Silvester asked if cash would be an alternative to bonds. Mr. Hoban recommended laddered bonds. Cemetery Sexton Phil Alderks told the Commission that in 2007, funds were moved out of two of the private trusts into the investment account. The City Attorney advised this was acceptable because we cannot find any trust agreements or any reference to either fund in past Cemetery Commission minutes. These funds were treated as outright donations. The interest on other trust accounts can be withdrawn from the trusts and moved to the investment account to the extent the original trust allows. This is generally limited to the annual cost of maintaining that particular family’s lot. Mr. Hoban reported that five of the Cemetery’s top ten holdings are technology stocks; they have preformed will in the last six months. The total portfolio is up 23% in 2009 with equities up 37.5% and fixed income up 7.1%. International funds are up 43.1%. Mr. Hoban reported that William Blair and Company analysts believe the next phase of market evolution (late 2010) will involve revenue driven earnings, while the equity market could stall. Federal stimulus money has not yet had an inflationary impact, but William Blair believes this will occur. Investors should consider adding energy and industrial holdings. Growth stocks are currently less volatile than value stocks. APPROVAL OF FY2011 BUDGET: Superintendent of Public Works Ken Leone presented the FY2011 Budget. The budget includes $150,001, which can be used as matching funds if the Cemetery is able to secure a grant for additional ravine restoration. Member Puree Beidler asked if the Cemetery could join other agencies in a group application for restoration of inter-related ravines. Mr. Leone responded that the Cemetery has been in contact with the Lake Michigan Watershed Ecosystem Partnerships; he believes a group application is planned for winter 2011. Member Grace moved to approve the budget as proposed by staff. Member Silvester seconded the motion, which carried unanimously. STATUS REPORT ON OPENING VISTA TO LAKE: Mr. Alderks presented the project plan that Member Silvester had requested. The Forestry Section has done most of the removal work in the ravine. They have removed dead and down trees except one trunk that holds back soil. They removed diseased and structurally unsound trees. They removed the basswood behind the white pines and removed dead branches from the white pines. They also did brushing, which is removal of smaller trees and vegetation. By next week (the week beginning on January 25th) the work will be finished and the Commission can drive through to observe the two new vistas. Mr. Alderks’ photos showed the openings created by the work that’s been done. We need to stabilize the ravine slope with herbaceous plantings that have deep fibrous roots. A total of fifteen trees of 8-15” diameter have been removed. Phase two of the project will involve design; staff will work with the neighbor to the south on this. The area the neighbor wanted to screen is where we’d like to have screening so that we don’t see their house. We’ll work with their landscape architect on this. The neighbor wants to keep their view down the ravine, so this will be a mutual benefit. The planting will be naturalistic to include deciduous native plants in and between yews. A dense green year-round wall is not needed since people can’t be out in the yard in winter. Mr. Alderks will contact Craig Bergman, the neighbor’s landscape architect, to discuss the plan again. Member Beidler asked that the Commission see and review the proposed landscape plan. CANNING FAMILY REQUEST TO PURCHASE UN-PLATTED AREA FOR FAMILY COLUMBARIUM: Mr. Alderks explained the Canning family’s request to purchase a small unplotted parcel on the edge of the ravine, adjacent to the Vail and Delavan Smith lots. This piece of land is large enough to accommodate a small private columbarium, similar in size (though not identical to) the five newly constructed Family Pillars. The proposed small structure would not block the newly opened lake vista, it would help frame it. The proposed location is far enough from the other Family Pillars to be appropriate. The family doesn’t have a specific design prepared, but wishes to work with staff and the Commission to obtain design approval. Member Beidler observed that part of the appeal of the Vail lot is being close to the bluff’s edge and that the family might assume other monuments would never be situated to the east, between their site and the lake. She suggested that if the proposed new site is offered for sale, the Vail and Delavan Smith families should be offered right of first refusal. The Commission instructed staff to go to the Vail family first to discuss the possible plotting of the new site. It is understood by all, including the Canning family, that should the Commission decide the new site can be sold, a proposed columbarium design would have to be submitted and approved by the Commission. Mr. Alderks will attempt to contact the Vail family and will report back to the Commission. APPROVAL OF HUGHES FAMILY MONUMENT: Mr. Alderks explained that Mrs. Hughes proposed a classic looking monument, as opposed to the more contemporary monuments that we see today. The design is appropriate and acceptable. The base of the proposed monument is 2’ 4” deep, one foot more than typically allowed. Normally only 1’ 4” of space is available for the base, since it’s necessary to leave enough room to maneuver the vault into the grave. However, in this case, we have enough space to place the vault, even with the wider base. Operationally, there is no reason not to approve the request. Member Silvester moved to accept this deviation from the Cemetery standard in this particular location. Member Beilder seconded the motion, which carried unanimously. RECOGNITION OF MONNINGER DONATION: Mr. Alderks acknowledged the unrestricted bequest from Anna Monniger of $10,000 to the Cemetery. OTHER MATTERS: Chairman Sevcik reported that he received a letter from Peggy Bartine who thanked the Commission and staff for their handling of the recent interment of her mother. NEXT MEETING: APRIL 21, 2010, 5:30 P.M.: The next regularly scheduled meeting of the Cemetery Commission will occur on Wednesday, April 21, 2010 at 5:30 p.m. at the Cemetery Gatehouse. Member Silvester informed the Commission he will be unable to attend the April meeting. ADJOURNMENT: The meeting was adjourned at 7:25 p.m. Ken Leone Superintendent of Public Works Cemetery Commission Minutes January 20, 2010 Page 4 of 4