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CEMETERY COMMISSION 2014/04/16 MinutesLAKE FOREST CEMETERY COMMISSION MEETING LAKE FOREST CEMETERY GATEHOUSE WEDNESDAY, APRIL 16, 20145:00 P.M. MEETING MINUTES ROLL CALL, CALL TO ORDER:The Lake Forest Cemetery Commission convened at 5:00 p.m. at the Lake Forest Cemetery Gatehouse. The following members were present: Chairman Colin Silvester; CommissionersPrue Beidler, Dennis O’Brien and Patrick Looby; and StaffChuck Myers, Superintendent of Parks and Forestry;and Phil Alderks, Cemetery Sexton. Also attending were Tony Hoban from William Blair and Company and John Dick, Cemetery Commission designate. CONSENT AGENDA: Commissioner Loobymotioned to approve the January 15, 2014 minutes and the 4thQuarter Sales Report.CommissionerBeidlerseconded the motion. Commissioner O’Brien motioned to approve the March 5, 2014 Special Meeting with Commissioner Beidler again seconding the motion to approve the Special Minutes. CommissionerBeidlerasked whether or not the Cemetery had ever advertised. Sexton Alderks said that while the Cemetery did not pay for advertising, they did use other means to get the word out that there is still space available in the Cemetery. He stated past practice has been that because we are a municipal cemetery, primarily for the residents of Lake Forest, and because we do have an endowment we have not had an ‘active’ sales strategy instead using resources like the Lake Forest Dialogue to get information out and to let residents know that there is still space available at the Cemetery. Alderks said that if you follow the 30+ years of sale data that we have, there are a few blips every once in a while but historically the cemetery has recovered the following year or the next for down sales. Alderks also said that in the past 30+ years, there have been only one or two occasions where the Cemetery has had to draw money out to the endowment in order to pay operation expenses. Sexton Alderks then communicated that he would like to change the format of the Sales Report at the next meeting to reflect a broader picture of not only sales, but of total revenues of the Cemetery. The Commission agreed to look at the new format for reporting sales and total revenue at the next meeting. Following the discussion, the Commission then voted unanimously to approve both minutes and the rest of the Consent Agenda. Chairman Silvester introduced John Dick as the new Cemetery Commission member to replace Prue Beidler who has completed her 6 year term on the Commission. Silvester also thanked Commissioner Beidler for her 6 years of faithful service to the Lake Forest Cemetery and read the attached resolution into the minutes of the meeting. FIRSTQuarter Investment Report from William Blair and Company: Tony Hoban from William Blair stated that the markets were little changed in the quarter. Because of this the Cemetery investment account is still purposely overweight in equities due to the underperformance of the bond market. Hoban stated that US equity markets are up 173% from the March 2009 lows and while fixed income markets rallied, Wm. Blair’s outlook is largely the same as 3 months ago with equities being the preferred place for good returns as compared to most fixed income options. Mr. Hoban asked the Commission for direction concerning the asset allocation as to if Wm. Blair should continue the current strategy of being overweight in the equity market. Wm. Blair’s thought going forward would be to re-orientate the asset allocation toward alternative sources of conservatism and income with as an example, dividend paying equities. The Commission directed Mr. Hoban based on the current economic climate to continue with the investment strategy of being ‘heavy’ in the equity markets until fixed income investments are more attractive. The Commission will then review the asset allocation at the next quarterly Commission meeting. Sexton Alderks pointed out that the Cemetery also has cash accounts held by the City for purposes of paying operating expenses separate from the Cemetery Investment Accounts. Alderks said that according to the Cemetery Investment Policy and the City Finance Director, that this could be included in the ‘cash’ portion of the asset allocation in order to give a more complete picture of Cemetery holdings. The Commission agreed unanimously to have the Cemetery ‘cash’ account, overseen by the City, included in the cash asset allocation for investment reporting purposes. Chairman Silvester thanked Mr. Hoban for his report which was received by the Commissioners and asked that the Cemetery ‘City’ cash total of $418,198 (as of April 30, 2014) be included in the Cemetery Commission minutes. CEMETERY UPDATES: Superintendent Myers informed the Commission that we did not receive consideration for the Sustain Our Great Lakes grant, but we will continue to seek and apply for monies for ravine restoration. Myers also reported that he went before City Council to get the contract with Conservation Design Forum approved for Phase II Design of the Ravine Management Plan. Meyers said that the contract was approved, but the Council asked that the aesthetics of the design be reviewed by a sub-committee that included landscape design professionals, natural resource professionals and/or Lake Forest residents. Meyers said that the sub-committee had been formed and was working on the review of the Management Plan for aesthetics of the design. Myers said the sub-committee members included himself, Chairman Silvester, Commissioner Beidler, John Mariani (LF resident and Director of Landscape Design for Mariani Landscape), John Sentell (resident and President and CEO of Lake Forest Open Lands), and Phil Alderks, Sexton of the Cemetery. CEMETERY COMMISSION FINANCE SUBCOMMITTEE REPORT: Chairman Silvester reminded that Commissioners that when he reported on the Cemetery Investments to City Council in June of 2013, that the Council brought up the issue of, “would the Cemetery investments be better served by using an ‘index’ fund investment strategy vs. the ‘managed’ fund strategy that we are currently using.” Silvester said that due to the sensitive nature of this issue, he thought it better served by the whole Commission rather than a sub-committee of the Commission. Commissioner O’Brien stated that while the Commission employs an investment manager, the Commission does, ‘sail its own boat’ and is responsible for making decisions regarding the fund.Commissioner Beidler stated for the record that Wm. Blair made many investing decisions that have saved the Cemetery a lot of money. Chairman Silvester said that currently we are being charged 80 basis points to which Commissioner O’Brien responded that that is low based on the size of our fund. Following more discussion on the responsibility of the Commission for the investment fund Chairman Silvester requested that the Commissioners give him the names of any other firms that they might talk to regarding other approaches that the Cemetery might take to manage the fund. Silvester will then assemble thesefirms’ names to review at the next Commission meeting. OTHER MATTERS:None CITIZENS’ OPPORTUNITY TO ADDRESS CEMETERY COMMISSION: No citizen comments were made during this meeting. ADJOURNMENT: The meeting adjourned at 7:05 pm.