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Minutes 10-13-98 MINUTES OF THE CEMETERY BOARD MEETING HELD IN CONFERENCE ROOM “A”, CITY HALL, BOYNTON BEACH, FLORIDA, ON TUESDAY, OCTOBER 13, 1998 AT 7:00 P.M. PRESENT Tim Hensley, Chairman John Wildner, Parks Superintendent Tereesa Padgett, Vice Chairwoman Sue Kruse, Secretary Candace Smith Oris Walker ABSENT Joan Kuehn I. CALL TO ORDER Chairman Hensley called the meeting to order at 7:10 p.m. II. ATTENDANCE Mrs. Kruse called the roll. All members were present with the exception of Joan Kuehn. She acknowledged the presence of Mr. Wildner, Parks Superintendent and Messrs. Rodger Shay and Steve Sirop, representatives of Shay Financial Services, Inc. III. AGENDA APPROVAL Mrs. Kruse added Item VIII-B, “Mausoleum Niche Refund of $450”. Mr. Walker noted the addition of Item VIII-A, Continuation of brick wall along Woolbright Road”. Mr. Walker moved approval of the agenda as amended. Vice Chairwoman Padgett seconded the motion that carried unanimously. IV. APPROVAL OF MINUTES: September 8, 1998 Vice Chairwoman Padgett corrected the second paragraph of Page 3 of the minutes as follows: “He advised that his wife is buried in the Mausoleum.” Motion Mr. Walker moved to approve the September 8, 1998 minutes with the necessary correction. Vice Chairwoman Padgett seconded the motion that carried unanimously. 1 MEETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA OCTOBER 13, 1998 V. RECEIPT OF BALANCE SHEETS – AUGUST & SEPTEMBER, 1998 A. Presentation of Investment Alternatives by Stephen Sirop, Public Investment Division of Shay Financial Services, Inc., Miami, Florida Stephen Sirop, Account Executive, Shay Financial Services, Inc., based in Miami, met with Diane Reese to discuss investments. She advised that the Cemetery Board was seeking advice with respect to investing the Cemetery funds. Rodger Shay explained that Shay Financial Services, Inc. is an institutional money manager in operation since 1981. There are seven offices nationally and the company principals are in Miami. There are three affiliates that include Shay Assets Management Company, Shay Financial Services and The First Financial Trust Company. ? Shay Assets Management Company manages approximately $1.5 billion, most of which is regulated money. ? Shay Financial Services, Inc. is a broker/dealer that engages in transactions in the fixed income markets. ? The First Financial Trust Company is chartered in the State of Texas and holds customer securities as well as some CDs. This company has assets of approximately $3.5 billion. Shay Assets Management Company manages the mutual funds. Four of the funds are rated four stars by Morningstar and it rates the fifth fund five stars. These are the highest categories available from Morningstar. These are very conservative funds and all funds within the Assets Management Company are all fixed income funds. Separate management for equities is available but that would not apply in this case. Mr. Shay asked the following questions: 1. Will equipment rentals contribute significantly to the income stream in the future? No 2. Will the deductions from cash flow increase over time? They will slow down as less openings and closings are required; however, the cost of maintaining the cemetery will increase. 2 MEETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA OCTOBER 13, 1998 3. Is the transfer to the General Fund for payment for services? A certain portion of the Cemetery Trust is taken each year and deposited in the City’s General Fund. 4. Is it your intention to have your portfolio structured so that the principal invested would remain constant and whatever revenues are created over and above that amount would support the expenses including the money that goes to the General Fund? Yes 5. How is the current distribution of the assets determined? Mr. Wildner explained that the Finance Director deposits the money in CDs at the board’s request. 6. Will this fund be accounted for on a mark-to-market basis? None of the members were able to respond to this question. However, Mr. Sirop stated it would be. 7. Was the maturity level done against any particular level, or was it what was available? As the CDs come due, the decision is made. 8. Since the Balance Sheets are broken down into two sections – Cemetery and Mausoleum, are they two different legal funds? No. It’s the accounting. 9. Is the BankAtlantic CD a single CD that is split on the City’s book? The belief was that it is two CDs. 10. Are there two separate accounts for the LGIP or does it appear as Cemetery Trust Fund? There are two separate numbered accounts in the same name. 11. Do you have an investment policy? Mr. Sirop advised that he has a copy of the City’s investment policy. 3 MEETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA OCTOBER 13, 1998 Mr. Shay pointed out that he would like to review the Cemetery Fund more closely before making any recommendations. However, he explained that Shay Financial Services, Inc. manages mutual funds that fit into a portfolio ladder. There is one money market fund among the funds, but the other funds would perform similarly to the LGIP. There are funds that could be combined to create a series of returns to compliment anticipated outlays. Mr. Shay left materials to be reviewed by the members. Mr. Shay advised that he would review the figures and either forward his recommendations or return to the board at a future date. Vice Chairwoman Padgett pointed out the importance of not losing any money from the Cemetery Fund. Mr. Shay explained that all of the funds maintain extremely high credit quality. The typical lowest rated investment would be “AA”. Most funds rarely go that low. The government fund is always U.S. Treasuries. The money market fund is A1P1. This is the highest money market rating. Therefore, there is very little credit exposure. There would be mark-to-market exposure. As interest rates rise and fall, the value of instruments with a fixed income stream also rise and fall. Mr. Sirop added that this is a paper gain or loss. Chairman Hensley pointed out that the Cemetery Board is a very conservative board. The members are very careful about the Cemetery funds because that money is earmarked for maintenance of the City’s cemeteries for a very long time. At the same time, the Cemetery Board would like to ensure that the fund continues to grow. Chairman Hensley requested that Mr. Shay consider these factors when developing his package of information for the members. The Cemetery Board members were impressed with how the City’s pension funds have grown over the years, and that is why the members are interested in listening to investment manager presentations. Mr. Shay said he would provide the members with statistics that will assist in making a decision. He stated that his firm has produced excellent returns for their clients. Chairman Hensley thanked the gentlemen for speaking with the board members. THE MEMBERS REVIEWED THE BALANCE SHEETS FOR AUGUST AND SEPTEMBER, 1998. Motion Vice Chairwoman Padgett moved to place the Balance Sheets on file with the understanding that they could be brought back if any questions arise. Mrs. Smith seconded the motion that carried unanimously. VI. RECEIPT OF SALES REPORT – SEPTEMBER, 1998 Motion Vice Chairwoman Padgett moved to place the Sales Report on file. Mrs. Smith seconded the motion that carried unanimously. 4 MEETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA OCTOBER 13, 1998 VII. UNFINISHED BUSINESS: A. PARKS DEPARTMENT REPORT Vice Chairwoman Padgett opened discussion about the total cost of operating the cemetery last year. A brief discussion ensued with Mr. Wildner explaining that the major cost associated with the operation of the cemetery is manpower (salaries). Mr. Wildner reported that earlier in the month, the City prepared for the arrival of Hurricane Georges. The Cemetery crew put up the shutters at the Mausoleum. All parks and the Mausoleum were prepared within three hours. Three quarters of the Cemetery has been line trimmed. When the line trimming is completed, the crew will return to mowing. Mr. Wildner advised that the City no longer employs one of the Cemetery workers. He accepted a position at Palm Beach Community College. The Parks Division is in the process of interviewing applicants and will probably make a selection early next week. With respect to hurricane preparedness, Mrs. Liberti expressed surprise that the vases were in place when we were expecting a hurricane. She questioned whether or not staff, during a hurricane emergency, removes the vases. Mr. Wildner responded negatively but admitted that consideration should be given to this observation. B. REPORTS ON CEMETERY AREAS ASSIGNED TO MEMBERS Mr. Walker reported that he spoke with the contractor at the Mausoleum who indicated that the completion date would be February 1, 1999. Discussion ensued about Mr. Osborne’s statement to the board that the new building would be completed by the end of this year. There was a consensus of the board that Mrs. Kruse should write a letter to Mr. Osborne indicating this discrepancy and requesting clarification. Mrs. Smith said she noticed that mowing of the Cemetery was needed. Vice Chairwoman Padgett inquired when the Cemetery was last fertilized. Mr. Wildner reported that it is fertilized four times each year. It was fertilized at the beginning of summer and it is due to be fertilized again shortly. Chairman Hensley did not have an opportunity to view his areas. C. REPLACEMENT OF WEEMS’ MARKERS (Tabled) Chairman Hensley reported that this replacement has been accomplished according to Ann Michael, a member of the Weems’ family. 5 MEETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA OCTOBER 13, 1998 Chairman Hensley provided the background information with respect to this issue. The Weems’ family has one large upright monument in the old section of the Cemetery. They have two rows with family plots with the Weems’ marker in the middle. It is their desire to place the flat markers up near the headstone rather than in the second row. The Cemetery crew was concerned about this request and recommended that the board consider the request. Chairman Hensley did not feel there was any problem with their request because of the location of the Weems’ plots. The Weems’ family is having the monument engraved on the rear so that the monument will be the center of their family gravesite. Mr. Wildner advised that he did not have a problem with the request, but felt this was a decision the board should consider and approve because other people might want another type of configuration that we would not be able to accommodate. Chairman Hensley feels it is necessary to clarify that the board is approving this request because of the location of these plots in the old section. However, graves in the remainder of the Cemetery must conform. Vice Chairwoman Padgett explained that we have no layout for this section of the Cemetery. Therefore, she did not have a problem with this request. Mr. Wildner suggested that the board maintain a policy whereby in every area but the old section, the head is where the marker will be placed. Motion Vice Chairwoman Padgett moved that we (the board) stand firm on our rules in the new section, but because we have no record of the layout in the old section, we will not deny this request. Mrs. Smith seconded the motion that carried unanimously. VIII. NEW BUSINESS: A. Continuation of Brick Wall Along Woolbright Road Mrs. Kruse reminded the members that she sent each of them an excerpt from the City Commission meeting when Vice Mayor Jaskiewicz recommended extending the wall using Cemetery funds to cover the cost of this construction. Mr. Wildner reported that Bill DeBeck provided a cost estimate of $107,000 to build an extension of the wall that currently exists on the eastside of Seacrest Boulevard. If the pattern were changed using decorative stone, the cost would be approximately 50% of the $107,000 figure. Vice Chairwoman Padgett pointed out that the board recently had discussions about obscuring the view of the Cemetery and the safety issues involved. Mrs. Kruse reported that a woman’s purse was stolen from her car last Sunday. 6 MEETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA OCTOBER 13, 1998 Chairman Hensley feels the wall would be beautiful. However, the fears are: 1. The safety concerns of the people inside; and 2. The safety concerns with respect to exiting onto Woolbright Road. Mrs. Smith stated that she would not want to add additional walls, but would not be opposed to upgrading and beautifying the existing wall sometime in the future. Mr. Walker expressed opposition to constructing a wall on Woolbright Road. At the board members’ request, Mrs. Kruse will forward copies of the Cemetery Board meeting minutes to the City Commissioners. B. Mausoleum Niche Refund Request By Rosemary Perkins of $450 Mrs. Kruse advised that Rosemary Perkins requested a 50% refund of the purchase price of $900 for Niche C-1 in Section E of the Sunset Building. Mrs. Perkins made no attempt to sell the niche privately. Motion Mr. Walker moved to refund the amount. Mrs. Smith seconded the motion that carried unanimously. IX. OTHER ? Mrs. Kruse reported that she received an inquiry regarding whether or not we have a list of Civil War veterans available. Mr. Wildner explained that the gentleman who telephoned was interested in knowing if it would be possible to have people dressed in Civil War outfits in attendance at the Memorial Day observance at the Cemetery. Mr. Wildner referred the caller to Mr. Levine of the Veterans Council. ? Mr. Wildner referred to Vice Chairwoman Padgett’s question of last month with respect to a large hole in the ground that she observed during her inspection of the Cemetery. He explained that the hole was the result of a water main break. ? Mr. Wildner reported that staff is exploring the possibility of separating the Little League irrigation system from the Cemetery irrigation system. For years, the Cemetery well has been used to irrigate the Little League field and the cost of electricity has been split. It was determined that the Utilities Department has excess capacity at one of their wells that they may be able to dedicate to the Little League Park. If a decision is made to go with that well 7 MEETING MINUTES CEMETERY BOARD BOYNTON BEACH, FLORIDA OCTOBER 13, 1998 system, the cost of electricity would be reduced and the Little League would no longer share the cost of the electricity. Vice Chairwoman Padgett questioned whether it would be possible to store water for the Cemetery and add a chemical to the water that would eliminate the iron and thereby eliminate the rust from the markers. Mr. Wildner explained that the Utilities Department requires new buildings to be sprinkled with well water rather than City water. Therefore, we will probably see more of these rust stains throughout the City. While there are treatments available, those treatments have not been successful. X. ADJOURNMENT There being no further business to come before the Cemetery Board, Mr. Walker moved to adjourn the meeting. Mrs. Smith seconded the motion that carried unanimously. The meeting properly adjourned at 8:40 p.m. Janet M. Prainito Deputy City Clerk (One Tape) 8