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SR 06-28-2022 5B City Council Report City Council Meeting: June 28, 2022 Agenda Item: 5.B 1 of 3 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Cemetery Subject: Approval of purchase agreement to purchase twenty-five (25) cemetery plots back from The Independent Order of Odd Fellows. Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a purchase and sale agreement with The Independent Order of Odd Fellows, in an amount not to exceed $87,500 for the purchase of twenty-five cemetery burial plots; 2. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report. Summary The City-owned Woodlawn Cemetery provides cemetery and mortuary services to the Santa Monica community. As burial plot inventory is depleting, staff recommends purchasing 25 unused burial plots from The Independent Order of Odd Fellows to increase available inventory for the community’s use. Plots would be purchased at a cost of $3,500 per plot for a total cost of $87,500. The purchase would be fully covered by the Cemetery Fund. Discussion Woodlawn Cemetery (Woodlawn) has been providing cemetery services to the Santa Monica community for 125 years. Plot sales make up 45% of Woodlawn's operating revenue. In order to maintain operations and provide sufficient burial options, staff needs to continually evaluate methods for adding burial plots to the available inventory. Staff recommends the purchase of twenty-five (25) unused burial plots from 5.B Packet Pg. 66 2 of 3 The Independent Order of Odd Fellows, which would add approximately one year’s worth of inventory to Woodlawn’s portfolio for community use. In 1877, the Odd Fellows purchased 267 burial plots at Woodlawn for their membership, and in 1927 the organization purchased the perpetual care for the graves. 145 years later, approximately 88 of the 267 lots remain unused. Currently, the Odd Fellows use one plot every three years for interment. According to Municipal Code 7.20.070, no person may resell any plot, crypt, or niche to a third party. Only Woodlawn has the legal authority to buy back plots from a private entity. Thus, staff and Odd Fellows leadership have engaged in negotiations for the sale of the 25 burial plots back to Woodlawn. Woodlawn and City Attorney staff are ready to prepare a purchase and sale agreement for this acquisition. As part of the purchase transaction, a quitclaim deed will be executed in favor of the City and the property will be returned to Woodlawn’s inventory for pre-need and at-need cemetery plot sales. Financial Impacts and Budget Actions Staff seeks authority to approve funding from the Cemetery Fund to purchase twenty five burial plots from The Independent Order of Odd Fellows with the following one-time budget changes. Plot purchase price was mutually agreed upon by both parties based on the age, and the volume of plots that are subject to this report. FY 2022-23 Budget Changes Appropriate Funds Account Number(s) Amount 59500001.532300 $87,500 Purchase and Sale Agreement Request FY 2022-23 Budget Request Amount Department Account # Total Contract Amount $87,500 59500001.532300 $87,500 5.B Packet Pg. 67 3 of 3 The revenue budget changes from the resale of property will be included in subsequent year budgets, contingent on Council budget approval. Prepared By: Adam Lopez, Cemetery Administrator Approved Forwarded to Council Attachments: A. IOOF Oaks initiative form2022-06-14-095030 5.B Packet Pg. 68 5.B.a Packet Pg. 69 Attachment: IOOF Oaks initiative form2022-06-14-095030 (5124 : Woodlawn Plot Return Purchase)