CEMETERY COMMISSION 2011/01/19 MinutesCEMETERY COMMISSION MEETING
LAKE FOREST CEMETERY GATEHOUSE
WEDNESDAY, JANUARY 19, 2011, 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 were Tony Hoban of William Blair and Company and Barbara Geiger, Landscape Historian.
CONSENT AGENDA: Chairman Sevcik presented the following items for approval:
Approval of Minutes from the Cemetery Commission Meeting held on October 20, 2010
Sales Report
Member John Greene made a motion to approve the October 20, 2010 minutes as amended and to approve the Sales Report. Member Ginny Grace 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 the combined Cemetery accounts appreciated between
August, 2008, when his firm became Cemetery investment advisor, and December 31, 2010, from approximately $3,000,000.00 to $3,506,145.00. He also noted the asset allocation shift that
has occurred over the last quarter: the stocks and international allocation has increased from 64.5% to 81.1%. In accordance with the Commission’s direction at the October meeting,
the asset distribution of the Care Fund Account is now very similar to that of the Commission Account. Much of the fixed income allocation has been shifted to international and domestic
equities. There has been no significant change in the allocation of the Commission Account, but it has appreciated over the last six months.
The Commission questioned the movement of approximately $89,000.00 out of the Care Account in December. Mr. Hoban will trace this and report back to the Commission. Mr. Hoban pointed
out that the total portfolio gained 10.0% in 2010, but the stock portfolio underperformed the S&P 500 (+10.6% vs. +15.1%) and underperformed the Russell 3000 Growth Index (+10.6% vs.
+17.6%). The fixed income portion of the portfolio matched the Barclays Capital Government Credit 1 – 5 year index at +5.9% and the International portfolio outperformed the MSCI AC
World EX-US Index (+20.3% vs. +11.6%).
Member Colin Silvester asked Mr. Hoban if he was under pressure to purchase the William Blair and Company International Fund. Mr. Hoban responded that this fund has again received the
Lipper 10-year award for best international fund. It invests 70% in developed markets and 30% in emerging markets. It is suitable for the Cemetery portfolio, but he will investigate
other international funds if the Commission wishes.
Mr. Hoban offered a number of observations on the market and economic conditions. The market is not as cheap as it was. The GDP is closer to where it was before the crash, but there
are 7,000,000 fewer workers achieving this productivity now. Things should improve steadily, but not quickly. Eventually companies will have to hire; more hiring will stimulate consumer
spending and the economy. During the last few weeks assets have been flowing out of bonds and into stocks. Recent bond performance is down. This is the beginning of a major flow to
equities and the appreciation of equities. The Australian and Brazilian markets are indicators of where the US stock market will go. The US stock market may be due for a slight sell
off (a 5% to 7% “pause” rather than a massive sell off). Mr. Hoban predicts 4% to 12% U.S. and international equity returns in 2011.
PRESENTATION ON LANDSCAPE GARDENER O.C. SIMONDS: Landscape Historian Barbara Geiger made a presentation on the life and work of landscape gardener O.C. Simonds. Simonds performed landscape
design and planting services for Lake Forest Cemetery at the beginning of the 20th Century. Lake Forest Cemetery has achieved National Register of Historic Places designation, due in
part to Simonds’ work at the cemetery.
APPROVAL OF FY2012 BUDGET: Superintendent of Public Works Ken Leone presented the FY2012 Cemetery Budget. At its October 20, 2010 meeting, the Commission approved budget target numbers
of $760,269.00 for operating expenses and $350,000.00 for capital improvement projects, for a total target number of $1,110,269.00. The proposed FY2012 operating budget totals $643,919.00
and the proposed capital improvement budget totals $350,00.00 The Capital Improvement projects include $200,000.00 to be used as matching funds if the Cemetery receives funding for ravine
restoration through the Green Infrastructure Grant Program, $100,000.00 for restoration/conservation work on the Barrell Memorial Gateway at the Cemetery entrance, and $50,000.00 for
landscape plantings.
Using already approved FY2011 budget funds, staff plans to have landscape architect Dean Sheaffer prepare one or two designs, in the style of O.C. Simonds, for small areas within the
Cemetery. These will be presented to the Commission to show what a typical Simonds style planting would look like. If these designs meet with Commission approval, we can proceed with
more extensive plantings in the future. The Commission questioned whether the staff should hire a landscape architect without their input. Mr. Leone and Cemetery Sexton Phil Alderks
explained that these initial designs will cost less than $5,000.00 and will cover only very small portions of the Cemetery grounds. The purpose of this exercise is to illustrate the
Simonds style, not to commit to a long term relationship with this particular architect. If this exercise is successful, staff and members of the Commission can go through a selection
process to choose a landscape architect for more extensive future work.
The Commission had asked at the October meeting about the possibility of saving money by refinancing the bond debt. The FY2012 Budget includes the next payment of $125,000.00. Finance
Director Kathy Reinertsen will be researching options in late February, for a possible reissue in April. Currently, $540,000.00 is outstanding, with the last payment due December 15,
2014. The rate on the bonds averages 5.1%. City Manager Robert R. Kiely, Jr. suggested that Ms. Reinertsen and Mr. Hoban discuss the merits of refinancing vs. calling the bonds and
that their recommendation be presented to the Commission at the April meeting.
Member Ginny Grace made a motion to approve the FY2012 Cemetery Operating Budget of $643,919.00 and the FY2012 Capital Improvement Budget of $350,000.00, for a total budget of $993,919.00,
as presented by staff. Member Colin Silvester seconded the motion, which carried unanimously.
CONSIDERATION OF TUOHY FAMILY REQUEST FOR 6 FOOT MONUMENT: Mr. Alderks reported that the Tuohy family requested permission to increase the height of the monument for their family plot
from 5’8”, which was approved by the Commission on October 20, 2010, to 6’0”. Member Grace asked if there is an artistic or aesthetic argument for this proposed change. Mr. Alderks
responded that the request came from the family though the Gast Monument Company with no explanation. Member Grace pointed out that the previously approved height of 5’8” was already
an exception to normally accepted monument heights. The consensus of the Commission was that absent some overriding reason not yet communicated, the previous Commission decision will
stand. Mr. Alderks will communicate this information to the family though the monument company.
OTHER MATTERS: Member Silvester suggested the reporting of grave and niche sales be presented as a 12-quarter moving average. Staff will present sales information in this format at
the next meeting.
CITIZENS’ OPPORTUNITY TO ADDRESS CEMETERY COMMISSION: There were no members of the public present at this time.
NEXT MEETING: APRIL 20, 2011, 5:30 P.M.: The next regularly scheduled meeting of the Cemetery Commission will occur on Wednesday, April 20, 2011 at 5:30 p.m. at the Cemetery Gatehouse.
ADJOURNMENT: The meeting was adjourned at 7:37 p.m.
Ken Leone
Superintendent of Public Works
Cemetery Commission Minutes
January 19, 2011
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