Oakland Cemetery Commission

K L A A N D Oakland Cemetery Commission Meeting Agenda Note: Change in meeting time!!! Tuesday, April 9, 2013 at 5:30 p.m. in the Council Chambers Conference Room, 2nd Floor, 203 South Commerce, Russellville, AR 72801 Welcome Old Business: 1. Review and approve minutes of the March 12, 2013 Cemetery Regular Meeting. 2. Financial Report – Finance Director Jerry McKaughan 3. Discuss options on the Cemetery Brokerage Account - McKaughan 4. Approval to remove four large trees. New Business 1. A request to change the Monthly meeting to the 3rd Tuesday of each month at 5:30 p.m. 2. Discuss items not on the agenda. 3. Prepare items for handoff to City Council for its May 16, 2013 Meeting. Adjourn.  Cemetery Commission Minutes April 9, 2013 The Russellville Oakland Cemetery Commission met on Tuesday, April 9, 2013 at 5:30 p.m., in the City Hall 2nd-Floor Conference Room at 203 South Commerce, Russellville, Arkansas. Attending were Alderman Steuber, Secretary Donna Eubanks, Commissioner Patricia Petray, Commissioner Ann Fields, Finance Director Jerry McKaughan, and City Attorney Trey Smith, and Director Lequitta A Jones. Absent: Alderman Richard Harris. Record only: Chairman Mike Roys, Commissioner Harmon, and Commission Vaughn withdrew from the Cemetery Commission. The meeting was called to order by Vice-Chairman Steuber at 5:30 p.m. Old Business: The First Order of Business was to review and approve minutes of the March 12, 2013 Cemetery Regular Meeting. Secretary Eubanks made the motion to approve the minutes as written. The motion was seconded by Commissioner Petray and passed unanimously. The Second Order of Business the Financial Report – Finance Director Jerry McKaughan Finance Director McKaughan reported that the Balance Sheet shows a balance of $64,698, $3996 in Donation, and $60,602 in the Operations. For the month, we have spent $3,994, $2,372 for Ground Maintenance, $1400 for Grave Openings which will be replaced, $78 for Gas Allowance, and $100 Ground Maintenance. The Third Order of Business to discuss options on the Cemetery Brokerage Account – McKaughan. Finance Director McKaughan reported that the balance of the Charles SCHWAB Russellville Oakland Cemetery Account December 31, 2012 balance was $190,214 and March 31, 2013 is $192,424. Mr. McKaughan stated the three (3) companies (Davis & Davis Investments, Arvest, and Wells Fargo) that he had talked to all wanted to charge a 1% annual fee (our current account is1%) which amounts to $479. We have Dividends and Interest of $544 in the first quarter. If the account is managed properly you will not lose any money at 1% fee. Mr. McKaughan said he was talking to a couple of them to see if they would lower the fee. Mr. McKaughan stated he had talked to each company about meeting the Act 340 guidelines, which is required by the state. 1 Director Jones asked if we could stay with SCHWAB and be assigned a different account manager. Finance Director McKaughan stated yes. Mrs. Jones asked what Mr. McKaughan’s recommendation was and he said he didn’t have one right now because he was still negotiating the 1% fee. Alderman Steuber asked Finance Director McKaughan if we were in any hurry. Financial Director McKaughan stated he didn’t think the state would issue the license until the account was changed. City Attorney Smith replied that Mr. McKaughan was correct that this is the last hurdle holding up the license. Mr. McKaughan said we do have to get it moved as soon as possible. Mr. Steuber asked Finance Director McKaughan if he felt like the three companies that he is currently negotiating with were pretty much the same other than what they may come off the 1% fee. Mr. McKaughan said that is correct. Alderman Steuber asked if anyone wanted to make a motion to give Finance Director McKaughan the authority to choose out of the three. Commissioner Petray said she would make that motion. City Attorney Smith asked Finance Director McKaughan if any of the three will keep the money and not move money around. Mr. Smith said if they start moving the money around it will cost us all the money in the account. Finance Director McKaughan said he talked to them about that very thing. City Attorney Smith asked Finance Director McKaughan that all three of the people have clarification about that. Mr. McKaughan said yes. Commissioner Fields asked if we will get that in writing? Finance Director McKaughan said that will be covered in the Trust Agreement. Commission Fields seconded the motion. Alderman Steuber said for the record that the motion was to give Finance Director Jerry McKaughan the authority to place the money with one of the three that he can get to give the lowest percent on the 1% fee. Alderman Steuber asked all in favor- unanimously. The motion carries. The Fourth Order of Business approval to remove four large trees. Director Jones stated we took bids back in November 2012 and had two companies that turned in bids; 1) Albert’s Curbside Service and 2) Lynn’s Tree Service. Mrs. Jones said she would like to go ahead and get the trees removed by the lowest bidder, which is Albert’s Curbside Service. Finance Director Jerry McKaughan asked what the bids were. Director Jones stated Albert’s was $11,200 and Lynn’s was $11,275 a difference of $75. Director Jones stated we are talking about four (4) very large trees and we need to get them removed. Albert’s Curbside Service has one-million liability insurance per bid. 2 Finance Director McKaughan stated we don’t have enough money to do that unless you want to use the donation money for tree removal. Director Jones said that we should have plenty of money to remove the trees. She said if we move some of the money around there should be no problem. We have $65,000 and she didn’t think we should take it out of donations. Finance Director McKaughan said we have $48,000. Mr. McKaughan said we have $1574 coming out for filing of the ordinance. Director Jones stated we have $5,000 in cemetery improvement and $9,250 in Revenue/Lot Purchase which would more than cover the amount needed and that we should be able to use the money as maintenance at the cemetery. These trees have to be removed. Mr. McKaughan said we would have to appropriate what we needed from the Revenue/Lot Purchase. Finance Director asked Director Jones if she knew that we have to send money out of that Revenue/Lot Purchase to the Trust. Director Jones said yes, which is only $1800. Director Jones stated she would check with the lowest bidder (Albert’s) to see if they would still do the work for the bid they submitted in November 2012. And if Albert’s is unable to do it then she would notify Lynn’s to see if they could do it. If not, then she would bring the bids back next month for another bid approval. The Commission agreed we needed to move forward even though the bid will be higher. The Commission agreed should a storm come though and blow one of those trees down this cost would not touch the cost of replacing the stones. Alderman Steuber said we should not let the trees get to this point before they are removed. This is the very reason he feels we need to remove all trees at the cemetery. Commissioner Fields said it is time to take them out and the Commission agreed. Commissioner Fields said she would like someone to go over and take pictures of the trees. Director Jones said we have already taken pictures for our files. Commissioner Fields made the motion to take the trees out. The motion was seconded and passed unanimously. Commissioner Steuber recommends we get a copy of their insurance before they start the job. Director Jones said she definitely would for the file. New Business The First Order of Business was a request to change the Monthly meeting to the 3rd Tuesday of each month at 5:30 p.m. Commissioner Petray asked the reason the meeting day had to be moved, why not just change the time. Secretary Eubanks stated she had to take vacation when we meet at 4:00 p.m. and Alderman Richard Harris also needed the meeting schedule after work. Director Jones said the reason she recommended the third Tuesday at 5:30 p.m. was she didn’t see a 3 conflict on that day. Normally, we met at 4:00 p.m. on the night of the Finance/Agenda Prep which starts at 5:30 p.m. and if we just moved the time we would be meeting the same time as that meeting. And that would be a conflict with people needing to attend that meeting. Normally the Finance/Agenda Prep is usually scheduled on the second Tuesday. Secretary Eubanks made the motion to approve the monthly meeting being changed to the 3rd Tuesday of each month at 5:30 pm. The motion was seconded by Commissioner Petray and passed unanimously. The Second Order of Business was to discuss items not on the agenda. Director Jones said City Attorney Smith might want to brief us on the new Ordinance passed last month by the City Council. City Attorney Smith did go through the ordinance and explained the changes made for the Operation and Maintenance of the Cemetery. Finance Director McKaughan said it appeals all the ordinances having anything to do with the cemetery. Director Jones said it appeals only the Maintenance and Operation; all the other ordinances are not appealed. City Attorney Smith said that is correct only the Maintenance and Operation. Director Jones said the only question she had about the new ordinance was the $7 transaction fee. Finance Director McKaughan told Mrs. Jones not to collect the $7.00 transaction fee when she sells lots that the City was going to pay it. Director Jones stated if that is the case the ordinance needs to reflect that change. Mrs. Jones said she certainly wanted to abide by the ordinance. City Attorney Trey Smith said he thought we were suppose to collect $7 per transaction. Finance Director McKaughan said he thought he would just pay it out of the sale of the lots or we can add it to the sell of the lots. City Attorney Smith asked Finance Director McKaughan what he wanted to do; charge $743 per lot purchase or $750. Mr. McKaughan said collect $750 for the sale of a lot and $7 transaction fee will go to the state, and a check for 20% to SCHWAB. Director Jones said she was going to collect the transaction fee per ordinance. The Third Order of Business is to prepare items for handoff to City Council for its May 16, 2013 Meeting. Finance Director McKaughan will prepare an appropriation ordinance from Revenue/Lot Sales to take out the trees. Commissioner Petray said she thought it was Mayor Eaton’s responsibility to do something about this Commission’s problem. Anna Fields stated she didn’t know how much longer she was going to serve. Director Jones said she could send a recommendation. Director Jones stated the Mayor may have someone in mind. Alderman Steuber indicated he didn’t think the Mayor had anyone in mind at this time. 4 Finance Director McKaughan asked that we run an ad in the paper to see if anyone would be willing to serve. It was the City Attorney Smith’s recommendation that the vacancies be filled ASAP to make the quorum more even due to absence. Commissioner Fields asked if we even needed a Commission? Commissioner Field stated she felt like she had filled her obligation and felt the Commission had done a good job. Alderman Steuber said in the meantime we need to be thinking if you know of any one that would be willing to serve. Secretary Eubanks said she wasn’t clear to what the answer was about “Does there have to be a Commission”? City Attorney Smith said he didn’t think there had to be a Commission as far as he had read. Alderman Steuber said this Commission has done real well; that the cemetery has operated much better than it did back years ago. Again, try to think of someone that would serve. Adjourned. Secretary Donna Eubanks 5