Loading...
Minutes 02-12-97 MINUTES OF THE CEMETERY BOARD MEETING HELD IN CONFERENCE ROOM "A", CITY HALL, BOYNTON BEACH, FLORIDA, ON TUESDAY, FEBRUARY 12, 1997, AT 7:00 P.M. PRESENT Tim Hensley, Chairman Diane Reese, Finance Director Sue Kruse, Secretary John Wildner, Parks Superintendent Tereesa Padgett Candace Smith ABSENT Betty Boroni Frances Cleary William Burton, Alternate I. CALL TO ORDER Chairman Hensley called the meeting to order at 7:10 p.m. II. ATTENDANCE Secretary Kruse called the roll. She acknowledged the presence of Finance Director Diane Reese and Parks Superintendent John Wildner. III. AGENDA APPROVAL Ms. Padgett moved to approve the agenda. Ms. Smith seconded the motion which carried unanimously. Chairman Hensley reordered the agenda to allow Ms. Reese to address the board relative to "Investment of Funds". C. Investment of Funds Ms. Reese referred to the back-up information which provided a comparison of the interest earnings of the Employees' Pension Fund from September 30, 1991 through September 30, 1995. She pointed out that the rate of return has been quite high. The pension fund has a high percentage of funds invested in stocks. Although the Cemetery Fund can get higher returns, the funds will have to be invested in long-term investments of stocks and bonds or some other type of investment rather than Certificates of Deposit (CDs). Ms. Reese explained that if the board made a decision to take $2 million out of the account to invest in long-term (five years) investments, the rate of return would be 6% or 7% on the Treasury notes or Treasury bills. She would recommend keeping $300,000 available to cover expenses. She also reminded the members that the interest coming in from the CDs will continue to be deposited into the account to help pay the monthly expenditures. The Employees' Pension Fund pays out almost $180,000 per year to money managers to manage their $20 million. She does not know how much a money manager would charge to manage $2 million. 1 M EETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA FEBRUARY 12, 1997 Ms. Reese explained that $1 million of Water and Sewer money was invested in a Treasury bill which will yield 6.3%. There are money managers who would be willing to work with the board to invest the Cemetery funds. However, the board would have to develop a policy of the types of investments they would want. Once those guidelines are established, we can ask the money managers about their management fees. Ms. Smith recalled a previous discussion relative to whether or not there are any limitations on the investment of these funds. Secretary Kruse advised that the Declaration of Trust says these funds are to be managed by the Finance Department. However, there is no indication of limitations on investment. Ms. Reese explained that only the pension fund investments are detailed in the Code. She is currently in the process of drafting a new investment policy for City funds that will be presented to the City Commission. She offered to present the policy to the board for their review and a decision on whether that would be the way the board would want to invest the Cemetery funds. The City's Charter and Code do not state what the City's funds can be invested in. We follow State Statute which requires that the funds be in U.S. securities. Chairman Hensley questioned whether or not it would be possible for the Cemetery Fund to piggyback one of the pension funds. Ms. Reese explained that the funds would have to be segregated, and she is not certain how much interest would come back to the Cemetery funds. In addition, Ms. Smith believes there is probably a law which prohibits mixing money with pensions. However, that would not prohibit the managers from mirroring the pension investments. Ms. Reese was agreeable to asking them how much it would cost for them to manage $2 million of Cemetery funds. Ms. Padgett recalled that with respect to investment in the Local Government Pool, there was agreement that the Cemetery funds would be invested in CDs if the Pool was providing a smaller rate of return. Ms. Reese advised that the money can be put back into CDs, however, the money will be tied up for a specific period of time. Ms. Reese said she was looking at CDs this week because the Pool has not had as high a return as CDs. With the board's approval, she will withdraw the money from the Pool and invest it in CDs. Chairman Hensley recommended that Ms. Reese wait to make any move until the board decides if it wants to invest these funds in another area. Ms. Reese assured the members that she would not do anything with the Cemetery funds without addressing the board first. IV. APPROVAL OF MINUTES - JANUARY 14, 1997 Cleary Ms. Padgett corrected Paragraph 5 of Page 3 to read, "Ms. pointed out that the monthly Balance Sheets are not truly balanced." Motion Ms. Padgett moved to approve the minutes as corrected. Ms. Smith seconded the motion which carried unanimously. V. RECEIPT OF BALANCE SHEETS 2 M EETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA FEBRUARY 12, 1997 At Chairman Hensley's request, Ms. Reese provided an explanation of the Balance Sheets. With regard to the issue of "Accrued Interest Receivable", Ms. Reese explained that this is interest due on the CDs which has not yet been received. Finance accrues it because they know it is due this month, but the cash money has not yet been received. "Accounts Receivable" is the money received from the cemetery (anything billed on an invoice). "Contracts Receivable" is for the contracts we have on cemetery lots which people are paying on. Under "Liabilities and Fund Balance", Ms. Reese explained that a large portion of the figure that appears under "Due to Treasurer's Fund" is the $4,583.33 monthly transfer to the General Fund. The $55,000 is broken down into a monthly figure. The costs associated with the use of vehicles charged to the Cemetery fund are covered under "Due to Vehicle Service Fund". Secretary Kruse advised that the Cemetery fund only pays for gas and parts. Ms. Reese explained that the fund is still charged a flat monthly fee for insurance. Ms. Reese advised that the negative amount that appears in "Accounts Payable" is a charge from last year that was cleared today. Next month's balance will be zero. Ms. Reese advised that she will be checking the rates of the money market accounts in banks other than Barnett since their rate is low. Secretary Kruse reported that the last refund for the Mausoleum was a crypt in the Chapel for $13,000. This refund appeared on the last City Commission agenda, and Vice Mayor Jaskiewicz questioned the refund. Therefore, that large amount will be evident on next month's report. Ms. Padgett pointed out that Ms. Cleary has remarked in the past that the monthly balance sheets are not truly balanced. Ms. Reese explained that if the total assets and total liabilities and fund balance tie out, then the sheets are balanced. Sometimes there is not an offsetting number in the Cemetery Fund, but it will appear in the Treasurer's Fund. When we set up "Due to Treasurer's Fund", we debit one of the expense accounts, and credit "Due to Treasurer's Fund". When the check is written, she debits the account and credits the cash. The debits and credits balance. Chairman Hensley thanked Ms. Reese for attending tonight's meeting. Ms. Reese offered to come back to another meeting if necessary to clarify this question for Ms. Cleary. A. November & December, 1996 (Tabled) B. January, 1997 Chairman Hensley reminded the members that the November and December, 1996 Balance Sheets had been tabled awaiting an explanation. Motion Ms. Padgett moved to leave the November and December, 1996 Balance Sheets on the table, and table the January, 1997 Balance Sheets until Ms. Cleary has had an opportunity to read the minutes of this meeting. Ms. Smith seconded the motion which carried unanimously. C. Investment of Funds 3 M EETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA FEBRUARY 12, 1997 The item was addressed earlier in the meeting. VI. RECEIPT OF SALES REPORT - JANUARY, 1997 Secretary Kruse reported that the new Deputy Finance Director, Bill Atkins, questioned the payments we receive from Mr. Osborne. His questions included: ? How is the percentage figured; and ? how do we know the sales? Secretary Kruse advised that she showed him the Agreement with the Mausoleum and explained how the 5% is only being collected until he pays the City $200,000. That additional 5% will stop at that point, and Mr. Osborne will then pay 15% on the sales for the remainder of the contract (30 years). Chairman Hensley recalled that at one point, Mr. Osborne remarked that he owns the land; however, that additional 5% only gave him the right to build on the land. It did not provide him with ownership "...set aside the property described in Exhibit of the land. Secretary Kruse read from the Agreement, "A" within the Cemetery for a Mausoleum site. Agent agrees to deposit 5% of the gross sales of the Mausoleum units with the City in addition to the deposit described in Paragraph 15 for the Perpetual Care Fund until the 5% deposit equals $200,000." Ms. Padgett requested that Secretary Kruse research this subject to determine how the 5% relates to the land. If it is interpreted that it is for the land, Mr. Osborne will expect a deed when that money is paid. Motion Ms. Padgett moved to place the Sales Report on file. Ms. Smith seconded the motion which carried unanimously. VII. UNFINISHED BUSINESS A. Parks Department Report Mr. Wildner reported that all line trimming has been completed and some of the sections that were discussed during last month's meeting were redone. Mr. Wildner further reported that he was asked to straighten up some of the worst monuments in the old section. He met with Fred Menor from Lake Worth Monument Company who spent about six hours at the Cemetery with two other people. They were able to straighten eight monuments, including the Dame marker which has been mentioned by Ms. Cleary on a number of occasions. They used 28 bags of concrete for the bases. The cost associated with this operation includes six hours of work and $100.80 worth of concrete. The total cost amounts to $370.80. They were also able to fix a monument that had tipped over and broke. While at the Cemetery, they also looked at Block "B". There are 118 monuments which are all flat monuments of various sizes. However, the majority of the markers are singles. A determination was made that approximately 78 of those markers should be raised. Based on the quote Mr. Menor provided, Mr. Wildner averaged out the cost to approximately $500. The bill will vary based on how 4 M EETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA FEBRUARY 12, 1997 many doubles are raised versus how many singles are raised. Mr. Menor advised that he could handle this task in whatever manner the board chooses. He was very cooperative and is open to any suggestions from the board. Ms. Padgett suggested that the board handle the leveling of the markers in the older sections with Mr. Menor, while the Cemetery employees handle the newer sections. Mr. Wildner explained that the Cemetery employees leveled two rows in Block "N". The employees were not assigned to this task, but found the time to do it. Mr. Wildner feels this would be a way to begin to see results with this task. Mr. Menor advised that he will be working with City staff to provide training. Mr. Wildner further explained that the City is working with a new crew that is working very hard to improve the appearance of the Cemetery. He was disappointed to report that Mike Norfus was terminated because of a problem with his application. Mr. Wildner is working to get him back at some point in the future. In the meantime, he will try to find someone equally as good as Mike Norfus. Motion Ms. Smith moved to take monument raising under advisement until the next meeting. Ms. Padgett seconded the motion which carried unanimously. Mr. Wildner advised that the workers have been working on edging roads and extra weeding was done around the hedges. A great deal of work was done this month. B. Reports on Cemetery Areas Assigned to Members Ms. Padgett had no report. Chairman Hensley reported that his area in Sara Sims looks good. Secretary Kruse read a report from Ms. Cleary advising that she noted the "Dame" monument had been raised. She also noted that the overall area looked good. She reported that drivers were using the Cemetery road as a cut-through to Seacrest Boulevard. She suggested adding "No Thru Traffic" signs at all entrances to the Cemetery. Chairman Hensley agreed that the thru-traffic at the Cemetery is a problem. The Police Department was asked to watch this situation a few years ago. Ms. Padgett questioned whether it would be permitted to have the entrances closed off with a chain. Chairman Hensley pointed out that such a move could present a liability issue. He recommends discussing this situation with the Police Department. Motion Ms. Smith moved to discuss this with the Police Department to see if we can close off an entrance and open it only for funerals. Ms. Padgett seconded the motion which carried unanimously. C. Veterans' Markers 5 M EETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA FEBRUARY 12, 1997 Mr. Wildner feels it is the Veterans' Council that is the most interested in this issue. He feels that when staff is working on the Memorial Day program, the Veterans' Council needs to get involved to assist in locating and counting the graves that are unmarked. Mr. Wildner explained that the City Clerk's Office provides the list of veterans. That information does not indicate whether or not a marker is placed on the grave. Chairman Hensley suggested that a letter be drafted asking them for their support. Mr. Wildner should be the contact person. Secretary Kruse advised that a letter was sent to Mr. Levine advising him that we did not have the staff available at the time of his request. However, if they wanted to wait until Memorial Day, we would then be going through the Cemetery and someone could note the unmarked graves on the list. This issue surfaced again because the City Commission, at the last meeting, approved waiving the fee for setting the markers. In addition, they wanted to pass a Resolution to thank Scobee-Combs- Bowden Funeral Home for supplying the cement and helping to install the markers. Mr. Wildner pointed out that the families involved should be contacted to get clearance prior to placing a marker. Chairman Hensley feels this is very important because the families may have reasons for not having marked the graves. Mr. Wildner will contact Mr. Levine to see if he will help him on Memorial Day. VIII. NEW BUSINESS A. Placement of Artificial Flowers at Mausoleum Ms. Padgett said she was contacted by Mrs. Frederico who is very unhappy with the fresh flower situation at the Mausoleum. She claims she is never able to get a vase, and has bought vases many times. She wonders whether she can place artificial flowers there. She has requested that the board reconsider the rule that prohibits the use of artificial flowers at the Mausoleum. Mr. Wildner advised that the rule was put in place at the request of the Mausoleum company's request. Mr. Osborne is quite insistent that artificial flowers not be permitted. Chairman Hensley explained that he understands both sides of this issue. He questioned whether Mrs. Frederico is the only person making this request. Secretary Kruse responded affirmatively. He pointed out that he cannot understand why Mr. Osborne does not allow individual vases on each crypt or niche as they do in Boca Raton. In response to Chairman Hensley's question, Ms. Smith questioned who would be responsible for cleaning up the artificial plants and flowers. If they are not cared for, they will look awful. She feels this will affect the decor. Ms. Padgett questioned whether Mr. Osborne has received approval for the new addition. Secretary Kruse responded negatively. Discussion then ensued regarding how much more time Mr. Osborne has available before construction must begin. Chairman Hensley suggested that Mr. Osborne be contacted to find out when he sold the first crypt/niche for the new addition, and when he plans to begin construction. Ms. Padgett suggested asking Mr. Osborne to consider allowing individual vases on the 6 M EETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA FEBRUARY 12, 1997 crypts/niches. Secretary Kruse will contact Mrs. Frederico to let her know that Mr. Osborne will be asked to make vases available at every crypt/niche. IX. OTHER A. March Meeting Date Secretary Kruse advised that this item was put on the agenda in anticipation of March 11 being the date of the General Election. However, since there are no candidates except the incumbents, there will not be an election. Therefore, there will be a March Cemetery Board meeting. B. Skirt for Rolling Device Chairman Hensley advised that the skirt for the rolling device is unsightly and old. Mr. Wildner said this issue came up at his morning meeting. Glenda Hall made a telephone call to Frigid Fluid and received a quote of $250. He offered to secure additional quotes. With the board's approval, Chairman Hensley asked Mr. Wildner to pursue a couple of additional quotes, and if the prices are similar, he should move forward with making the purchase. In response to Ms. Padgett's question, Secretary Kruse advised that she or Mr. Wildner prepares the requisition for items such as this. If Mr. Wildner prepares the requisition, Secretary Kruse provides the account number and signs it. 7 M EETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA FEBRUARY 12, 1997 C. Tools for Cemetery Workers Chairman Hensley advised that he recently asked some of the workers for commonplace tools while at the Cemetery, and they did not have the tools available. Mr. Wildner advised that no one has made a request for tools. Generally, a request for tools would go through the foreman. The type of tools Chairman Hensley needed to use would have been available in the building. D. Itemized Billing on Equipment Chairman Hensley said he raised the issue of itemized billing on equipment during the last meeting. He questioned whether those bills are reviewed by Secretary Kruse. She responded affirmatively. He requested copies of the itemized bills at future meetings. Ms. Padgett referred to the Analysis of Changes to Fund Balance for the month of January, 1997. She pointed out that the "Transfer to Vehicle Service" is a very big number ($32,811.00). After reviewing this, Secretary Kruse was directed to check on this figure and report back to the board. (This amount covered payment of the new tractor.) X. ADJOURNMENT There being no further business to come before the Cemetery Board, the meeting properly adjourned at 9:05 p.m. Janet M. Prainito Recording Secretary (Two Tapes) 8