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CEMETERY COMMISSION 2015/07/15 MinutesLAKE FOREST CEMETERY COMMISSION MEETING LAKE FOREST CEMETERY GATEHOUSE WEDNESDAY, JULY 15, 2015 5:00 P.M. MEETING MINUTES I. ROLL CALL, CALL TO ORDER: Chairman Dennis O’Brien called the meeting of the Lake Forest Cemetery Commission to order at 5:05 p.m. at the Lake Forest Cemetery Gatehouse. The following members were present: Chairman Dennis O’Brien; Commissioners Amy Schuetz, Patrick Looby, John Dick, and David Hooke (late arrival); Secretary/Treasurer Bob Kiely; City Staff Chuck Myers, Superintendent of Parks and Forestry; and Phil Alderks, Cemetery Sexton; and Tony Hoban from William Blair and Company. Chairman O’Brien welcomed and introduced new Commission member David Hooke to the other members. II. APPROVAL OF THE APRIL 15, 2015 MINUTES: Commissioner Looby motioned to approve the April 15, 2015 Minutes which was seconded by Commissioner Schuetz and passed unanimously. III. SECOND QUARTER INVESTMENT REPORT: Tony Hoban from William Blair and Company opened the review of the investment report stating that the cemetery is in a reasonably good position this quarter in spite of the tumultuous first part of the year. Hoban reviewed the current economic outlook touching on the unstable situation in Greece and Europe, the economic slowdown in China, historically low oil prices and the fact that the US stock market typically does not do well over the summer months. Hoban walked through a handout with Commissioners. Commissioner Dick asked if the Commission had any fixed income in Illinois or Chicago bonds to which Chairman O’Brien explained that he thought the fixed income portion was invested in the Wm Blair Bond Fund. Hoban said that generally, the Wm Blair Bond Fund was not invested in municipal bonds. While reviewing the performance of the portfolio, Commissioner Dick asked why we use the Russell 3000 as a benchmark. Hoban said that the Russell 3000 is an industry standard and common to use. Dick followed by asking how then do we explain the difference in the Russell 3000 and the Cemetery portfolio? Hoban stated simply, that we didn’t do well as the reason that we lag the Russell index. Hoban also said that the Cemetery portfolio is really between the S & P 500 and the Russell 3000 for comparison. Hoban said that he is currently working on the indexing of the large cap stocks as the Commission instructed. He explained that currently the portfolio currently has a growth bias, but assured the Commission that it is comprised of ‘quality’ stocks. The 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 meeting, or who have questions regarding the accessibility of the meeting or the facilities, are required to contact City Manager Robert R. Kiely, Jr., at (847) 234-2600 promptly to allow the City to make reasonable accommodations for those persons. Chairman O’Brien explained to the Commission that Wm Blair had all the paperwork for this change and that Wm Blair was now also the custodian of the account, which in-and-of itself saves the Commission around $9,000.00 annually. This closed the Cemetery Investment Report, Chairman O’Brien thanked Hoban for his report. APPROVAL OF REVENUE/EXPENSE REPORT: Sexton Phil Alderks presented the Revenue/Expense Report to the Commission. Alderks said the format was new with added graphics as suggested at the last Commission meeting. Alderks reported revenues were as expected, but lot sales are still lagging. He further stated that even though lot sales were lagging, both service charges and niche revenue are higher and more than making up the difference in revenue. Commissioner John Dick asked if staff could provide the Commission with a chart with lot sales in a chart form so that the Commission might see if there are any trends in lot sales. Sexton Alderks said that they do track lot sales and he can provide this for the next meeting. IV. CEMETERY UPDATES – RAVINE DESIGN: Superintendent Myers reported that work is progressing on the Ravine Design Project and the design portion of the project is about 95% complete. The cemetery is still awaiting official notification from the IDNR. Myers said that because of the current financial problems with the State of Illinois, grant monies have been held up and no announcements of awards are being made. Commissioner Dick asked about the possibility of naming rights for the ravine. Secretary/Treasurer Bob Kiely said that City Council might be open to offering naming rights to the ravine if the amount of money was right. Commissioner Dick asked if this is something that we could initiate at this meeting. Commissioner Looby asked where we were at on the timeline for the project. Superintendent Myers said that we currently are working on permitting with the Army Corp of Engineers. Commissioner Looby asked if the Commission could have an updated ravine restoration timeline. Myers said that he would update the timeline and email to the Commission members. Commissioner Schuetz asked if staff could clarify the ‘stormwater pipe’ in the project. Myers said that the pipe is already daylighting into the ravine so the ‘water’ is already there. We’re just trying to dissipate the energy of the water in order to limit erosion in the ravine. Commissioner Dick motioned to approach City Council for approval of the opportunity for the Cemetery to offer naming rights to the ravine for a 1 million dollar plus amount to include a maintenance fund in the amount. Commissioner Looby seconded the motion which passed. Chairman O’Brien will make the first comment to City Council when he makes his annual report to the Council Finance Committee on July 20th. V. DISCUSSION OF CEMETERY BUDGET FORMAT: Chairman O’Brien presented the new budget forms/format. O’Brien said that the idea was to condense down the budget format and segregate operating expenses from capital improvements. Commission Dick asked if 3 cases were necessary. Chairman O’Brien thought that the Commission would move away the 3 case scenario since the Commission has used the Base Conservative each year. The new format will be used for the FY2017 Budget process at the next Commission meeting. VI. REVIEW OF CEMETERY RULES AND REGULATIONS: Sexton Alderks presented the Commission with the current Lake Forest Cemetery General Guidelines. Alderks said that he had the Guidelines reviewed by an attorney who specializes in Cemetery law and the attorney reported that the Guidelines were lacking in terms of protecting the Cemetery from liability. Alderks then had the attorney re- write the Guidelines from the perspective of limiting liability which he presented as a draft to the Commission. Alderks then shared that he had just received a copy of the Rules and Regulations from Spring Grove Cemetery in Cincinnati, Ohio. After review of their format Alderks stated that he would like the Commission’s reaction to the Spring Grove format. Alderks stated his reaction was that the Spring Grove format easier to read and navigate due to a more comprehensive table of contents and a better outline. He then solicited the Commission’s opinion on the Spring Grove vs. the Lake Forest Cemetery format. The Commissioners agreed that the Spring Grove format was easier to navigate and understand, but they liked having the General Guidelines format of the Lake Forest Cemetery Rules and Regulations in addition to the more formal Rules and Regulations. Alderks said he would work on re-organizing the format of the draft LFC Rules and Regulations using a format similar to the Spring Grove format and then adapt the final also to an easier to read ‘General Guidelines’ type piece that can be handed out to lot owners. VII. APPROVAL OF WEISS FAMILY MONUMENT: Sexton Alderks presented the Weiss family monument to the Commission for approval. Alderks stated that while there really is no issue with the size or type of monument, there is a considerable amount of wording on the back of the monument that is needs the Commission’s approval. Alderks said that while family submitted what is going to be engraved on the monument, the memorial dealer had not yet submitted a detailed drawing of what the back of the monument with the engraving would look like. The Commissioners reviewed the content of the engraving and had no issue with content. Chairman O’Brien suggested a motion that if there was no problem with the content, that the Commissioners appoint himself and Sexton Alderks to review the drawing once it is received and either approve or disapprove the monument. Commissioner Dick seconded the motion which was unanimously approved. VIII. OTHER MATTERS: No other matters. IX. CITIZENS’ OPPORTUNITY TO ADDRESS CEMETERY COMMISSION: No citizen comments were made during this meeting. X. ADJOURNMENT: The meeting adjourned at 7:08 pm.