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CEMETERY COMMISSION 2017/01/18 MinutesThe City of Lake Forest is subject to the requirements of the Americans with Disabilities Act of 1990. Individuals with disa bilities 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. CEMETERY COMMISSION MEETING MINUTES LAKE FOREST CEMETERY GATEHOUSE WEDNESDAY, JANUARY 18, 2017, 5:00 P.M. I. CALL TO ORDER, ROLL CALL: Chairman Dennis O’Brien called the meeting to order at 5:07 pm COMMISSIONERS PRESENT Dennis O’Brien, Chairman John Dick David Hooke Patrick Looby Daniel Kelly, MD COMMISSIONERS ABSENT None STAFF PRESENT Robert R. Kiely, Jr., Secretary Treasurer, City Manager Chuck Myers, Super. of Parks, Forestry & Cemetery Phil Alderks, Cemetery Sexton Tony Hoban, (IAR), William Blair & Co, L.L.C. II. APPROVAL OF OCTOBER 19, 2016 MINUTES: Motion by Commissioner Looby, seconded by Commissioner Hooke, to approve the Minutes from October 19, 2016 with two corrections by Commissioner Looby to Item IV., second paragraph, the last sentence was unfinished and was corrected to read, ‘Chairman O’Brien inquired if there were any further questions or comments, being none the meeting moved to the Cemetery updates.’. In Item IX., Other Matters, Chairman Dick pointed out that ELAWA Farm should instead be Open Lands. Being no further discussion the motion was made by Commissioner Looby, seconded by Commissioner Dick and passed by unanimous voice vote. III. FOURTH QUARTER INVESTMENT REPORT FROM WM BLAIR AND CO.: Tony Hoban, William Blair & Co, L.L.C., reviewed the fourth quarter investment report explaining that with the long shot election of Donald Trump as President we have seen a most unprecedented and unpredictable rally in the global equity markets. Hoban said that the immediate impact to the stock market was positive, but uneven, mostly benefiting those sectors that would gain from less regulation while harming those sectors that have been market leaders. Overseas markets also reacted positively but unevenly. The dollar rallied which helped companies that export to the US but those countries where the US had a large trade deficient did not fare as well. Hoban further stated that fixed income investments have performed poorly amidst rising interest rates, but since July of 2016 when Treasury rates dropped to 1.36% the 10 year rate has nearly doubled. Going forward Hoban said the industry expected a shift from exceptionally accommodative monetary policy to a focus on fiscal policy which is expected to drive GDP growth that historically low interest rates could not. Until interest rates normalize, Hoban suggested we remain underweight in bonds. Looking forward to 2017 there is the potential for higher returns, but it comes with greater risk. If predicted fiscal maneuvers play out, it could be positive for US stocks. Inflation will probably be higher, but moderate and earnings multiples could remain elevated but in line with historical norms. Likewise, outside the US, if economic improvement continues, cyclical value stock should be clear beneficiaries. However, if US legislation stalls, trade wars start or interest rates shoot higher, there could be trouble for equities. Hoban continued with a review of the Performance Summary and Significant Purchases and Sales in the investment report and closed by asking if there were any questions. Being none, Hoban concluded his report. Motion by Chairman O’Brien directing Tony Hoban to continue with current investment strategy regarding Lake Forest Cemetery investment with William Blair & Co. Second by Commissioner Dick. Motion carried unanimously. Mr. Hoban then left the meeting following his report. IV. REVENUE/EXPENSE REPORT: Chairman O’Brien quickly reviewed the Revenue and Expense Report for the quarter. O’Brien reiterated that revenues have been good this year and that expenditures are lower than projected at this point because the ravine restoration project has not started yet. ($200,000 allocated) Chairman O’Brien inquired if there were any further questions or comments. The other Commissioners had no questions or comments about the report. V. CEMETERY UPDATES A. Ravine Restoration Superintendent Myers reported that he had received the ILEPA permit for the ravine restoration which typically means that the Army Corp permit will be issued in approximately 2 months. Myers stated that the grant period ends in May of 2017 but the IEPA typically grants extensions which he will apply for. Plans are to go out to bid in February or March contingent on receiving the Army Corp permit. If the permit is received and bidding does take place, staff may be requesting approval of the contract at the April meeting. Myers said that this is not a problem in terms of the project, as this type of work does not typically happen during the spring rainy season. B. Private Planting Rule Chairman O’Brien reviewed the situation surrounding the proposed changes to the Cemetery’s Private Planting rule with the Commissioners and then presented the draft Agreement for the new rule to allow private plantings while taking the burden of time and cost off of the Cemetery staff. Commissioner Dick suggested that we request additional contacts for the family as part of the Agreement. Commissioner Looby asked how those families with sites which currently have bushes be handled. Chairman O’Brien stated that they would be grandfathered in on the planting side, but would need to come under the maintenance side of the Agreement in order to keep their private plantings. Commissioner Hooke made the suggestion that a schedule of the different plantings and maintenance costs be added to go along with the contract. Secretary Kiely asked for staff to put together an inventory of lots with bushes and plantings so that the Commission would know the number of families affected. Sexton Alderks said that he would update the list for the next meeting. C. Memorial Garden Phase II Probable Costs Cemetery Sexton Phil Alderks presented the probable costs for the Phase II Memorial Garden construction. Alderks explained that while we do possess approved construction drawings for the project, there were some issues during the construction phase that will require some redesign before we can move forward, but these are not anything major. Commissioner Dick asked what kind of revenue is projected from the sale of the additional niches. Alderks said that at current prices, 400 additional niches at $5,700 each would equal $2.38 million dollars of revenue at a projected cost of $1.2 million for construction. Alderks stated that this price includes the construction of the Memorial Garden Spire. Commissioner Dick asked to see a Profit and Loss on the existing and new construction. Chairman O’Brien said that could be put together and that another issue to be discussed if the Commission decided to move forward, would be how to fund the construction. O’Brien said that there is the option to self-fund, to issue bonds, or some combination of the two. O’Brien said that the City would be issuing bonds for the upcoming Water Plant renovation, and there may be a need to expedite this discussion in order to tag on to the issuance of these bonds. Staff will work with Chairman O’Brien to put together the Profit and Loss Statement that Commissioner Dick has requested and send it out to the Commissioners. VI. APPROVAL OF ADDITIONAL STAFFING: Chairman O’Brien shared with the Commission a proposal to add 1 full-time Maintenance I staff position to the Cemetery work group. Chair O’Brien reviewed the Personnel Change form and accompanying justification and stated that the majority of costs would be covered by the elimination of 2 seasonal positions at the Cemetery. O’Brien stated that the employment pool for seasonal workers is shrinking and that many times seasonal workers don’t return because they find other work during their layoff. O’Brien further stated that by making this a full time position, training costs would be reduced due to the position having more of a long term outlook. Sexton Alderks said that because of the nature of the business and the seasonality of tasks, it takes more than a year to train an employee. He also said that by making this a full time position, there would be better coverage for weekend funeral services and staff time off (vacations, sick days, etc.) Commissioner Looby asked if there was a way to quantify training dollars to further reduce the costs of adding the full time position. Alderks stated that those costs are difficult to quantify because the training is on-the-job, not a paid school or program. Commissioner Dick asked Secretary-Treasurer Bob Kiely what the City’s position would have to be on this as it relates to the City budget. Kiely said that as the Cemetery is an enterprise fund the Council will look to the Cemetery Commission’s recommendation. Dr. Kelly expressed his approval of the addition of full time staff as presented as did Commissioner Looby. Commissioner Looby requested that staff look for ways to further reduce the incremental costs of adding this position. Motion by Commissioner Dick, seconded by Commissioner Kelly, to approve the FY2018 Budget request to add a full-time Maintenance I staff person as presented, motion carried unanimously. VII. FY2018 OPERATING BUDGET: Chairman O’Brien shared the FY2018 Operating Budget to the Commission for approval. O’Brien explained that a majority of the budget is set by the City for staffing, benefits and fleet costs. O’Brien further explained that what the Commission really controls is revenue and capital improvement costs. As the Commission has already approved the Cemetery Fee increases (Revenue) and Capital Improvement Projects he was presenting the FY2018 Operating Budget for approval. Sexton Alderks pointed out that increases to the budget were minimal from the operating side and capital actually dropped by $40,000 for the year. Following discussion on the subject a motion was presented and voted on. Motion by Commissioner Kelly, seconded by Commissioner Looby, to approve the FY2018 Operating Budget as presented, motion carried unanimously. VIII. MACLEAN FAMILY REQUEST FOR ADDITIONAL GRAVES: Sexton Alderks approached the Commission with the MacLean family’s request to purchase an additional 8 graves at the Cemetery. Alderks said that Mr. MacLean’s wife, Mary Ann, passed away this past summer. Two of the MacLean children, who are Lake Forest residents, purchased 4 graves each. 4 graves were purchased by the MacLean’s daughter Gillian Growdon and 4 graves were purchased by their son Duncan MacLean, both residents of Lake Forest. Mrs. MacLean is interred in one of the lots. The families are planning for 1 monument between the 2 lots which are side-by-side. Mr. Barry MacLean has 5 married children and 12 grandchildren. Alderks said that the two families are now requesting to purchase 4 additional graves each on either side of the 8 that the 2 MacLean children currently own. Lake Forest Cemetery Rules and Regulations state that purchases of more than 6 gravesites require the approval of the Lake Forest Cemetery Commission. The additional purchase would put both families over the 6 grave threshold. In addition, it has been Cemetery Commission policy that any purchases greater than 4 graves require that graves 5 and up be charged at 1 ½ time the resident rate. The family is requesting that the additional graves be Licensed in the names of the spouses. The Cemetery Commission discussed what constitutes a ‘purchaser’ and how it would affect the sale. Alderks stated that the Rules and Regulations don’t specifically define purchaser. The Commission decided that since the Rules and Regulations do not specifically define purchaser that they would look at this as an individual purchase which would not require approval by the Commission because it does not meet a sale of more than 6 graves (so it does not require Commission approval) and since it does not exceed 4 graves, the 1 ½ time premium does not apply. The Commission directed Sexton Alderks to contact the MacLean family and inform them of their decision. IX. OTHER MATTERS: None X. CITIZENS’ OPPORTUNITY TO ADDRESS CEMETERY COMMISSION No public in attendance XI. NEXT MEETING: WEDNESDAY, APRIL 19, 2017, 5:00 PM XII. ADJOURNMENT Motion by Commissioner Looby, seconded by Commissioner Kelly, to adjourn, motion carried unanimously. Meeting adjourned at 7:27 pm.