NOTICE OF MEETING TUESDAY, SEPTEMBER 8, :00 p.m.

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1 I. CALL TO ORDER NOTICE OF MEETING TUESDAY, SEPTEMBER 8, :00 p.m. Park District of Highland Park Board of Park Commissioners West Ridge Center 636 Ridge Rd. Highland Park, IL WORKSHOP MEETING AGENDA II. III. IV. ROLL CALL ADDITIONS TO THE AGENDA RECOMMENDATION FOR INVESTMENT ADVISOR V. GRANT-IN-AID / S.M.I.L.E. REPORT VI. VII. VIII. IX. NAMING OF TENNIS COURTS AT BROWN PARK REVIEW OF VOUCHERS OPEN TO PUBLIC TO ADDRESS BOARD CLOSED SESSION PURSUANT TO THE FOLLOWING SECTIONS OF THE OPEN MEETINGS ACT: Section 2(c)1 the appointment, employment, compensation, discipline of the District including legal counsel for the District; Section 2(c)5 the purchase or lease of real estate including discussion on whether a certain parcel of property should be acquired; Section 2(c)6 the setting of a price for sale or lease of property owned by the District; Section 2(c)8 security procedures and the use of personnel and equipment to respond to an actual, a threatened, or a reasonably potential danger to the safety of employees, students, staff, the public, or public property; Section 2(c) 11 litigation against or on behalf of the District or where the District finds that an action is probable or imminent; Section 2(c) 21 the discussion of minutes lawfully closed under the Act, whether for the purposes of approval of said minutes or for conducting the semi-annual review of the minutes as set forth in section 2.06 of the Act.; Section 2(c) 29 - for discussions between internal or external auditors and the Board. Possible action by the Board on items discussed in closed session. X. ACTION FROM CLOSED SESSION IF ANY XI. ADJOURNMENT Persons with disabilities requiring reasonable accommodation to participate in this meeting should contact the Park District s ADA Compliance Officer, Liza McElroy, at the Park District s Administrative Office, 636 Ridge Road, Highland Park, IL Monday through Friday from 8:30 a.m. until 5:00 p.m. at least 48 hours prior to the meeting. Requests for a qualified ASL interpreter require five (5) working days advance notice. Telephone number ; fax number

2 MEMORANDUM To: Board of Commissioners From: Annette Curtis, Director of Finance c. Liza McElroy, Executive Director Date: September 8, 2015 RE: Investment Advisors Background: During the summer of 2014, the Park District of Highland Park in conjunction with the City of Highland Park issued a RFP for investment advisors service. Due to staffing changes at both the district and city, no action was taken on the responses received. The following year, a search committee consisting of six members, 3 from each agency was created. On May 4, 2015, a letter was sent requesting an updated or refreshed response to the RFP. Investment objectives were defined as: Safety and security of principal investment Appropriate liquidity of funds Improvement of investment capabilities Operational efficiency and information of the portfolio Maximize incremental returns on idle balances Original scope of services were defined as: Analyzing and advising the Finance Director, Finance Committee and/or Board Members regarding Investment strategy Reallocation of assets Investment performance Customizing benchmarks to assess fund performance Establishing strategic asset allocation Developing investment policies Adherence to the requirements of the Illinois Public Fund Act (30 ILCS 235) and municipal policy 1

3 Additional services added: Assist in cash flow/maturity analysis Provide credit analysis of investment instruments in portfolio Provide on at least a quarterly basis, investment portfolio performance reports Attend meetings as requested by the client Selection criteria were defined as: Experience of the firm in providing similar investment management services Experience and expertise of Investment Management professionals Client service and client management philosophy Investment and risk philosophy and investment process Fees Results: Responses were received from seven firms. Three of which were interviewed by the search committee. PMA- Prudent Man Advisors, Inc. PFM Group- Financial & Investment Advisors Columbia Capital Vendor Year Formed Assets Managed Insured Max. Advisor Focus Invest. Approach Use of Broker Proposed Fee Custodian Fees Client Report Termination Notice PMA 1984 $15B Total $2M Independent Research and Safety of Principal No Broker 10 bps up to $20M Separate Mthly 30 Day John Huber $3.4B Adv. Liability portfolio management customized approach in House 8 bps next $20M Cost Qtrly 2135 CityGate Lane 7th Floor 12/31/2014 Separate Account Mgt. "bottom-up" min. annual fee (negligible) Naperville, IL ,700 Local Local Government Invest. strong risk control waived Entities Pool Management limit portfolio turnover (see note) jhuber@pmanetwork.com Investment Policy Develop. PFM 1980 $107B Total $15M Credit committee Safety of Principal No Broker 10 bps up to $25M US Bank Qtrly 30 Day Michelle Binns 4000 clients Liability to determine qualifited Liquidy Analysis in House 8 bps next $25M Separate 222 N. LaSalle Street Suite 910 Nationwide issues- Conservative customized approach min. annual fee Cost Chicago, IL IL PD approach waived (negligible) IL Gov. Bid process binnsm@pfm.com Columbia Capital 1996 $344M $1M Cash Flow Safety of Principal No Broker 15bps TD Ameritrade Mthly 60 Day Jeff White City &State Liability Liquidity Investmetn Policy in House out of pocket exp. $25 per security Qtrly 35 E Wacker Suite 918 Investment Policy customized approach $7500 min delivered Chicago IL jwhite@columbiacapital.com Note for PMA- Following Original Proposed Fee was revised at request of the Park District and City. 2

4 PMA-Prudent Man Advisors, Inc. was found to be the best candidate to provide investment services to the district. PMA has served the public sector for over 30 years. PMA Financial Network, includes advisory services and investment advisory services with a sub-advisor to LGIPs (Local Government Investment Pools). PMA Securities, a registered broker-dealer and municipal advisor member (FINRA and SIPC) Prudent Man Advisors, (SEC registered investment advisor) PMA also has ten separate account clients and specialized in fixed income investment products. Client service- PMA s level of client engagement is customizing the appropriate investment strategy to meet the clients evolving investment goals synthesized that process into a tailored investment solution that allows our team to become a trusted extension of you staff. PMA s investment philosophy- as experienced fiduciaries, our investment philosophy places a clear priority on the safety of principal, provision of suitable liquidity and the generation of yield-in that order of importance. Fees- 2 year contract: Up to $20mm 10 bps Over $20mm 8 bps Minimum annual fee has been waived. Fees charged in arrears based on assets under management as of month end. In addition the district will incur custodial fees. In addition to meeting the selection criteria, PMA has offered an additional service, access to Forecast5 Analytics. Forecast5 Analytics is a budgeting and forecasting tool that allows users to simulate what if scenario analysis for the purpose of developing multi-year financial forecasts. Recommendation: Staff recommends retaining PMA- Prudent Man Advisors Inc, and beginning the process of working with PMA and legal counsel to draft an agreement for Board approval at a future meeting. 3

5 MEMORANDUM To: Board of Park Commissioners From: Stephanie Rendler, Registration Supervisor Date: September 8, 2015 C: Liza McElroy, Executive Director, Kathy Donahue, Deputy Director of Operations; Brian Romes, Assistant Director of Recreation Re: Grant-In-Aid / S.M.I.L.E. Report The Park District of Highland Park has administered and supported the Grant-In-Aid program since Grant-In-Aid, in conjunction with the S.M.I.L.E. donation fund, provides recreational opportunities to Highland Park families in need of financial assistance. Through the generous support of the community and the Park District, this year approximately $100,550 in scholarship funds were distributed to 76 resident households, who in turn were able to participate in 115 programs and 24 memberships. Recipient Families Family Size Individual 5 7 Family of Family of Family of Total Subsidy Level % Subsidy % Subsidy 8 10 Total In an effort to make programs more accessible to families in financial need, the grant in aid program was restructured in Changes included an increase of award maximums and restructure from a fixed to 1

6 a variable amount based on family size. Additionally, Recreation Center fitness memberships were included and adjustments were made to the eligibility scale. In 2015, we are seeing the positive results of these changes to the Grant-In-Aid program. Subsidized registrations for camp programs have increased by 84% since Many households are choosing to allocate their entire scholarship award towards camp and number of registrations for other program areas have decreased across the board. The introduction of the fitness membership has also been a positive addition, bringing several senior households into the program. Memberships Hidden Creek Aqua Park Recreation Center Fitness 6 6 Total Memberships Programs Art 0 0 Athletics 9 5 Camp Dance 20 0 Early Childhood 6 0 Fitness 0 0 Golf 1 0 Gymnastics Heller 0 0 Ice Skating 8 2 Swim Tennis 7 10 Total Programs Retention Returning New Usage Scholarship Funds Awarded $153,600 $156,000 Scholarship Funds Distributed $92,449 $100,550 Usage Rate 60% 64% This year we saw a 9% increase in Grant-In-Aid distributions due to a higher demand for subsidized camp programming. To accommodate this increase in demand, staff is proposing a 14% increase in the Grant- In-Aid budget for

7 Due to trending decline in Smile donations, staff is also projecting a reduction in S.M.I.L.E. revenue for In an effort to address this decline, staff has identified the Smile Fund as an important future strategic initiative. Scholarship Expenditures * Membership Distribution $7,449 $6,933 Program Distribution $85,000 $93,617 Total Distribution $92,449 $100,550 Amount Budgeted $70,000 $92,000 % of Budget Used 132% 109% Scholarship Budget Projection 2016 Budget Expenditures $108,169 $105,000 S.M.I.L.E. Revenue * Donations $4,472 $1,839 S.M.I.L.E. Budget Projection 2016 Budget Revenue $3,152 $4,000 * Year-to-date figures 3

8 MEMORANDUM To: From: Board of Park Commissioners Executive Director McElroy Date: September 1, 2015 Re: Naming of Tennis Courts at Brown Park At the August Workshop meeting there was discussion regarding the request by the family of Alan Schwartz asking the Park District of Highland Park to consider naming the outdoor tennis courts (2) at Brown Park after the Schwartz Family. Staff was asked to provide the entire Policy for Naming or Renaming Parks, Buildings, and Facilities along with policy 5.21, the Sponsorship and Advertising Policy. Both are attached. In accordance with policy 4.02 for Naming or Renaming Parks, Buildings, and Facilities, it is the responsibility of the Board of Commissioners to select names for new parks, buildings, or facilities ( Park Property ), or when appropriate, to change the existing name(s) of Park Property of the District. It is the objective of the Park District of Highland Park: A. To ensure that the parks, buildings and facilities are easily identified and located. B. To ensure that names will engender a strong public image and have public support C. To encourage gifts of lands and facilities or donations by individuals, groups and corporations without undue commercialization of the park or policy. It is the policy of the Park District of Highland Park to reserve the naming or renaming of parks, buildings and/or facilities in a manner that best serves the interest of the community and ensures a worthy and enduring legacy for the District s park and recreation system. A. Park Property may be named after streets, geographical locations, historical figures, events, or concepts. 1

9 B. Park Property may be named after individuals or groups who have made exceptional contributions to the Park District of Highland Park or City of Highland Park subject to the following. The contributions and good reputation of the individual or group are well documented and broadly acknowledged within the community. Naming for an outstanding individual is encouraged only after that person has been deceased or retired from service for at least three years. The agreement of the individual or next of kin in the case of deceased individuals or the elected board or other legal authority in the case of groups, shall be obtained. Naming rights may be granted as a result of a financial contribution (donation or sponsorship) to the Park District. C. Naming rights refers to the granting by the Park District the right to name a piece of property or portions of property in exchange for financial consideration. The granting of naming rights is intended to support and promote investment in District facilities whereby: contributions result in significant and direct benefits to the District. the granting of naming rights does not compromise the Park Board s ability to carry out its functions fully and impartially. the granting of naming rights will not entitle the naming entity to preferential treatment outside any specific naming rights agreement. Naming rights are divided into two categories: philanthropic naming rights and corporate naming rights. C.1.Philanthropic naming rights.park Property may be named after individuals or groups who have made substantial philanthropic donations of Park Property or who have made a substantial contribution toward the development of Park Property. The threshold for considering the naming of a park, building or facility will include one or more of the following: Land for the majority of the park was deeded to the District. Contribution of a minimum of 60% of the capital construction cost associated with developing the park, building, facility, or component. Provision of a minimum 20-year endowment for the continued maintenance and/or programming of the park, building, or facility. The donation is not required by the Park District or by reason of other ordinance, law or regulation. The donation is consistent with policy 5.26 Gifts, Donations and Donor Recognition Policy. 2

10 The Park Board may establish philanthropic naming rights plans for components of facilities (e.g. rooms within a building, athletic fields, gardens, playgrounds, etc.) subject to the following. Assets for which naming opportunities will be offered shall be valued as a function of capital costs, annual operating and maintenance costs, and desirability or marketability of the opportunity. Naming rights shall be approved for a specific term, which shall not be longer than the useful life of the property, facility, or component. The family has indicated that it is willing to make a contribution for this purpose. The most recent naming of a new facility was the Debbie Gottlieb Bietler Dog Park. In this example, the family made a donation that was equal to 50% of the construction cost for the project. Since the tennis courts at Brown Park have already been constructed the estimated life for outdoor courts before the need to rebuild is approximately years. The estimated cost to rebuild 2 outdoor tennis courts with fencing is approximately $70,000. Staff would ask the Board to consider naming the courts at Brown Park The Alan Schwartz Courts. 3

11 Tennis Court Naming Current Prices Fence for a two-court system = $26,900 Grind/Overlay/ Color/Stripe for a two court system = $39,000 Total = $65,900 or $32,950 per court Based on recent prices we paid for this work. There is variability from year to year in bid pricing but this should give a good average current value for court replacement value. 4

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