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Santa Monica
City Council Meeting: April 28, 2009
Agenda Item: [~`~;.V
To: Mayor and City Council
From: Lee E. Swain, Director of Public Works
Subject: Long-Term Business Plan for Woodlawn Cemetery
Recommended Action
Staff recommends that the City Council:
1. provide input on the proposed Woodlawn Cemetery Business Plan;
2. direct staff to prepare revisions to Municipal Code Section 7.20.130 (Eligibility to
Own Plots and Crypts); and
3. direct staff to incorporate provisions to provide a payment structure as part of a
fee study.
Executive Summary
After over a century of serving the burial needs of Santa Monica and surrounding
residents, the Woodlawn Cemetery (Cemetery) is reaching capacity. Additionally, the
Cemetery has required a General Fund subsidy to meet its basic operational needs.
Over the last year, staff has examined various options to increase the capacity of the
Cemetery and Mausoleum and to create a plan to achieve financial sustainability in the
near future and into perpetuity. The Proposed Woodlawn Cemetery Business Plan
identifies amulti-phased thirty year plan to increase the capacity of the Cemetery and to
achieve financial sustainability. Staff has identified various options to begin the
implementation of the business plan with varying amounts of General Fund loan, which
will be included in next year's proposed budget.
Background
The City purchased the Woodlawn Cemetery in 1897 and the Mausoleum in 1972.
Today, more than 60,000 former Santa Monica residents are interned on the 26.6 acre
site. The Cemetery is operated as an Enterprise Fund under the Administrative
Services Division of the Public Works Department. The Cemetery sells grave sites as
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well as crypt and niche spaces. The Cemetery also sells vases, urns, caskets, markers
and benches.
When a grave site, niche or crypt space is sold, an endowment care fee of 15% of the
cost is collected and placed in the Cemetery Endowment Care Fund or the Mausoleum
Endowment Care Fund as appropriate. The funds are held in a professionally managed
trust account. The primary purpose of these funds is to produce interest income to
cover the costs of maintaining the Cemetery and Mausoleum when all space has been
sold and the facility is closed to new business. The dividend and interest earnings from
the Funds are used to offset a portion of current Cemetery operating expenses as well.
Since 1997, the Cemetery Fund has been subsidized by General Fund loans. The
Cemetery is nearing depletion of all its grave spaces, crypts and niches. In fact, there
are presently less than, 60 graves available for sale and there are no adjoining plots
which appeal to families. Based on the depletion of inventory, projections of Cemetery
operating and capital expenses indicate a continuing operating deficit that will require
increased subsidies from the General Fund in the absence of taking steps to increase
the amount of plots, crypts and niches available for sale.
Discussion
Business Plan
If the Cemetery operations were to remain status quo, the available inventory of in-
ground burial plots would be depleted by the end of next fiscal year. Additionally, the
sale of niches and crypts is slowing as only the less desirable locations remain. In order
to address this situation, and to identify strategies to achieve long term financial
sustainability for the Cemetery, the City retained the services of States West Cemetery
Services in 2007 to review the current conditions and assist in identifying opportunities
to expand the number of burial locations. The result of this effort is the attached
proposed Woodlawn Cemetery and Mausoleum Business Plan. Highlights of the plan
(Attachment A) include:
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• Amulti-phased 30-year flexible implementation plan.
• The creation of 12,000 new inventory spaces.
• Analysis of construction of a crematorium.
• Reconfigured road network that meets Fire and public access needs, including
possible vacation of streets.
A financially sustainable operation that no longer requires General Fund
subsidies.
A financially sustainable Endowment Care Fund that provides for the long-term
care of the Cemetery grounds.
Municipal Code Revisions
Currently, there is a residency restriction to be interred in Woodlawn Cemetery for all in-
ground burials and casketed crypt spaces within the Mausoleum. There is no residency
restriction for cremated remains. Staff researched other municipally-owned cemeteries
within the State and could not locate any with residency restrictions. Additionally, Santa
Monica residents are increasingly transient and have numerous choices throughout the
immediate area, from religion-specific locations, such as Holy Cross and Mount Sinai to
large regional cemeteries Rose Hills and Forest Lawn. In order to bring all operations
under the same operating requirements and to increase the marketability of the
Cemetery to the immediate area, it is recommended that Council direct staff to remove
the residency requirement from in-ground and. casketed interments. In recognition of
the value of the Cemetery as a resource for the community, staff also recommends that
in modifying the Municipal Code, Council direct staff to study various discount options
for residents who choose Woodlawn Cemetery as their final resting place.
Fee Study
In preparation of the draft Woodlawn Cemetery Business Plan, staff noted that in most
areas, Woodlawn Cemetery's pricing was lower than comparable services found at
other local cemeteries and mausoleums and should be increased. It is also necessary
to increase the contribution percentage to the endowment care.fund from 15% to 25%
to achieve the financial sustainability provided for in the proposed business plan.
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Additionally, many families that are pre-planning for end of life issues find it difficult to
pay for interment property all at once. As a result, many cemeteries, including other
municipal cemeteries, offer payment plans to assist people with the purchase. The
terms and interest rates would be reviewed with comparable cemeteries and with the
Finance Department. It is currently envisioned that the terms would be up to twenty four
months with a twenty percent down payment. If the facility is needed prior to payoff, all
remaining funds would be due prior to interment.
The results of the fee study will be brought back to Council with the adoption of the
proposed Woodlawn Cemetery Business Plan, reflecting direction provided as part of
this review.
Financial Impacts & Budget Actions
Staff has identified several implementation options for the Proposed Cemetery Business
Plan, each requiring a different level of General Fund loan as further discussed in
Attachment B. Based on Council's input, staff will include any necessary General Fund
loan in the proposed Fiscal Year 2009-10 budget.
Prepared by: Virgil County, Cemetery Administrator
Lee E. Swain, Director
Department of Public Works
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City Manager
Attachments:
Attachment A -Proposed Cemetery Business Plan
Attachment B -Implementation Options
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Approved: Forwarded to Council: