Kane County Forest Preserve, Finance and Administration Committee met Feb. 22

By Angelica Saylo Pilo

Jun 16, 2022

Kane County Forest Preserve, Finance and Administration Committee met Feb. 22.

Here are the minutes provided by the committee:

I. Call to Order

The Forest Preserve District Finance and Administration Committee meeting was held at 2:00 PM at the Administration Offices located at 1996 S. Kirk Road, Suite 320, Geneva, IL 60134. The meeting was opened by Chair Dale Berman at 2:00 PM. Remote=*

Members Present:

Attendee Name: Status:

President Chris Kious Present*

Chair Dale Berman Present

Commissioner Mark Davoust Present*

Commissioner Ron Ford Present*

Commissioner Drew Frasz Absent

Commissioner Mo Iqbal Present*

Commissioner Bill Lenert Absent

Commissioner Cherryl Strathmann Present*

Commissioner Vern Tepe Present

Others Present:

Also Present: Commissioners Allan*, Bates*, Brown, Kenyon; Exec. Dir. Meyers; CFO Stanish& staff Petschke*; Comm. Affairs Dir. Metanchuk & staff Kovach; Chief of Planning Anderson Jr.; Dir. of Ops. Goreth; NRM Dir. Haberthur & staff Rodeghero*; Chief of Police Burger; Attorney Hodge and Recording Secretary Figliozzi.

II. Approval of Minutes from January 25, 2022

RESULT: APPROVED BY ROLL CALL VOTE [UNANIMOUS]

MOVER: Vern Tepe, Commissioner

SECONDER: Ron Ford, Commissioner

AYES: Dale Berman, Ron Ford, Mark Davoust, Mo Iqbal, Cherryl Strathmann, Vern Tepe

ABSENT: Drew Frasz, Bill Lenert

III. Public Comment (Each speaker is limited to three minutes)

None.

IV. Reports and Presentations

A. Presentation of the Quarterly Investment Financial Report - Sawyer Falduto Asset Management

Tom Sawyer, the Managing Partner of Sawyer Falduto Asset Management, provided background information of the District’s portfolio performance. He referenced the report included in the agenda packet, noting the cash flow, performance review and the projected income and maturities for 2022. The ending market value to date was $4, 441, 698.00, which included a net gain since inception of $441,698. Overall, trends have been positive and the equity markets proved resilient in the fourth quarter. Sawyer highlighted two important components of scheduled maturities in 2022-2024 and noted key observations of positive developments in the 2021 fourth quarter. Sawyer discussed the labor shortages and supply chain issues, the continuing effects on inflation, and how this would be the focus of economic development going forward.

DISCUSSION: Sawyer answered brief questions from the Committee.

B. Presentation of the Golf Course Quarterly Financial Report

CFO Stanish provided the fourth quarter analysis for Hughes Creek Golf Course earnings, noting that the course performed higher than average with an overall $1.34M gross revenues. This is the highest over the past 10 years. It was a very successful year. Stanish noted that with the 1-year contract established with Hughes Creek, the District had a revenue share of 20% with any earnings over the $1M marker. The District received an additional check of $68,238.22. Going forward, the contract has a built in 15% gross revenue share over the $1M marker, hopeful for the upcoming season. Golf Vision has been current on all payments. There is positive anticipation for first quarter earnings for Hughes Creek and the re-opening of Settler’s Hill summer 2022.

DISCUSSION: Commissioner Davoust asked about an itemized column specific to revenues from the driving range. Stanish responded that revenues are not separated out prior, however a detailed report would be provided.

C. Presentation of the 2021 Campground Year-end Report

Dir. of Ops. Goreth provided a PowerPoint presentation included in the agenda packet of the revenues and expenses for the 2021 camping season. He shared background history of the establishment of both campsites.

Since the pandemic, the campgrounds created an environment for remote work and remote learning with families with school aged children, which in turn increased revenues by 38%. Due to the increase in popularity, during the 2021 season, a “pop up naturalist” was created for children staying at the campgrounds creating an increase in attraction, pictures were shared. Goreth expressed his gratitude for all the hard work on the campground staff during the COVID crisis, he noted that staff is available for the public until 11p.m. to answer questions. They have been dedication. He shared the survey results noting the increase of an estimated 58% response.

DISCUSSION: Commissioner Kenyon asked if food trucks were permissible at the campgrounds, and if the District would be interested in hosting events on certain days? Exec. Dir Meyers responded that yes that would be an idea, she noted that other amenities could be included, as the net profit margins continue to grow, and supplies and expenses are covered, there could be possibilities for improvements. Dir. Goreth responded that each year the District offers a program called “camp with a ranger” to introduce first time/new campers to camping. More information can be found on the District website.

Reports A-C were placed on file together.

RESULT: PLACE WRITTEN REPORTS ON FILE [UNANIMOUS]

MOVER: Vern Tepe, Commissioner

SECONDER: Ron Ford, Commissioner

AYES: Dale Berman, Ron Ford, Mark Davoust, Mo Iqbal, Cherryl Strathmann, Vern Tepe

ABSENT: Drew Frasz, Bill Lenert

V. New or Unfinished Business

A. Presentation and Approval of a Second Amendment to the License Agreement with Centrum East-West Arenas Venture, L.L.C. for the Management of the Fox Valley Ice Arena

Exec. Dir. Meyers presented the Second Amendment to the license agreement with Centrum East West Arenas at the Fox Valley Ice Arena. In 2008, the District assumed a license agreement with Centrum East-West Arenas Venture to manage the operations of the newly acquired Fox Valley Ice Arena. In 2009, an Amendment was approved by the Commission to utilize 1,600 square feet of space on the first floor for the Public Safety department in exchange for the District assuming the parking lot snow removal. Centrum has asked for a Second Amendment to the License Agreement for the following modifications:

• Facility Improvements as defined and prioritized from the Kluber Engineering Report that was previously commissioned by the District

• Proposed facility improvements as requested by RINC Chicago Steel

• RINC Chicago Steel Ice Usage Agreement

• Rookies Restaurant Lease

• Length of term is extended to September 30, 2043, subject to three (3) consecutive five-year options to extend; following the original expiration date of September 30, 2028.

• Annual License fee will be extended with a continued annual increase of 3% for the continuation of the term, including any/all option years.

• District assigns the naming rights of the facility to Centrum in exchange for $25,000 annually when a naming sponsor contract is active.

DISCUSSION: Commissioner Tepe asked about the funding expense for these renovations. Exec. Dir. Meyers responded that the Steel would be funding all of the renovations, as this is their project.

RESULT: MOVED FORWARD BY ROLLCALL VOTE [UNANIMOUS] Next: 3/3/2022 8:30 AM

TO: Forest Preserve District Executive Committee

MOVER: Vern Tepe, Commissioner

SECONDER: Mo Iqbal, Commissioner

AYES: Dale Berman, Ron Ford, Mark Davoust, Mo Iqbal, Cherryl Strathmann, Vern Tepe

ABSENT: Drew Frasz, Bill Lenert

B. Presentation and Approval of Presidents' Expenses Attending the 2022 IAPD/IPRA Annual Conference in Chicago

Exec. Dir, Meyers presented the annual conference expenses to be approved, she provided background information. The Local Government Travel Expense Control Act, Public Act 99-0604, requires all non-home rule public agencies, including forest preserve districts, to regulate the reimbursement of all travel, meals and lodging expenses of their commissioners, employees and representatives, effective Jan. 1, 2017. The District approved, by resolution on Dec. 13, 2016, a policy for the regulation of said expenses, which requires all travel expenses for commissioners be approved through a public meeting of the Commission.

DISCUSSION: None.

RESULT: MOVED FORWARD BY ROLLCALL VOTE [UNANIMOUS] Next: 3/3/2022 8:30 AM

TO: Forest Preserve District Executive Committee

MOVER: Vern Tepe, Commissioner

SECONDER: Cherryl Strathmann, Commissioner

AYES: Dale Berman, Ron Ford, Mark Davoust, Mo Iqbal, Cherryl Strathmann, Vern Tepe

ABSENT: Drew Frasz, Bill Lenert

VI. Closed Session to Discuss Land Acquisition, Contracts, Litigation, or Personnel None.

VII. Communications

None.

VIII. Chairman's Comments

None.