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Home My WebLink About36-City Administrator CITY OF SAN BERN.DINO - REQUEST F. COUNCIL ACTION From: De Shauna Edwins City Administrator Subject: Allocation of funds - $102,177 - From Tax Allocation Bond Proceeds for Phase I of the expansion of Pioneer Cemetery located at the northwest corner of Waterman Ave. and Seventh Street Date: March 4, 199-1 Synopsis of Previous Council action: 1852 Pioneer Memorial Cemetery opened. 1922 City established endowment care fund to provide perpetual care for grave sites. June, 1988 Allocation of $50,383 approved in 1988-89 Budget, under Acct. No. 244-364-57675, for acquisition of land for future expansion. Feb. 4, 1991 Request to use RDA funds for expansion continued for 30 days for detailed information. Recommended motion: e That the allocation of $102,177 from tax allocation bond proceeds to Account No. 244-364-57675, "Acquisition of Land and Improvements for Expansion of pioneer Cemetery" be approved; and the Director of Public Works/City Engineer authorized to prepare plans, specifications and estimate for construction of Phase I, northwest corner of Waterman Avenue and Seventh Street. Pt?//,nP/-r/71- / Signature Contact person: Shauna Edwins Phone: 5122 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: $102,177 Source: (Acct. No.) 244-364-57675 (Acct. DescriDtion) Tax Allocation Bond Proceeds Finance: (\-....:L...J ;()",,- _Cil Notes: Agenda Item No ~~ 75-0262 BERNA.DIMO - REQUEST FOi COUNCIL ACTION STAFF REPORT ~II I' UI" aAN e e e In 1852 ~ city's forefathers opened Pioneer Memorial Cemete Seventy fIlars elapsed before the city established an endowm~t care fund In 1922 to provide perpetual care for the grave 't San Bernardino's "pioneers". SJ. es ~nother seventy yea~s has elapsed and we find that the cemetery J.S nearly at capacJ.ty. Currently there are 1 483 grave sites av~ilable for ,sale. Approximately 220 graves ar~ sold each year. USJ.ng these fJ.qures, the cemetery can generate revenue for seven more years. However, that revenue is not always enough to cover operational costs. From 1982 through 1989 the cemetery broke even. In other words, the income from the sale of grave sites and the interest from the endowment fund covered all expenditures. Today low interest rates on invested funds have caused a $40 000 a'nnual drain in the general fund. ' Does San Bernardino want to stay in the cemetery business? The decision to stay was made in 1852 when this community opened Pioneer and forever assumed the responsibility for maintenancei Additionally, 1,399 pre-need sales are outstanding, and of course, we have no way of knowing when these graves will be used. The real question is whether the general fund should pick up the tab for ongoing maintenance or should the city use RDA funds to take an aggressive step to expand the cemetery to make it more marketable. The city owns two parcels adjacent to the cemetery along Seventh Street. The parcel immediately adjacent to the cemetery has an old ballpark and a water tank. This land was acquired in 1950. The second parcel, 2.1 acres at the northwest corner of Waterman and Seventh, was acquired by grant deed from the State of California as part of the Seccombe Lake Expansion but was not used for Seccombe Lake. One way to make the cemetery very marketable, is to give it a "front door". Pioneer Cemetery is secluded by its location and by the walla and hedges that surround it. Expansion across these parcel. and out to Waterman, will give the cemetery exposure to 47 000 vehicle. per day. I believe this exposure is the key to raiSing the annual sales above the breakeven point. Additionally, the city will have preserved a large area of green open space which will beautify Waterman Avenue. If the costs directly associated with expansion are paid through RDA funds, the cemetery fund will only have, to bear an incremental increase in watering costs of approxJ.mate.ly $2,000 per year. According to ~an Ustation, the present crew J.S ~apable of maintaining the additJ.onal acreage. e e e . . Staff Report - Cemetery Expansion March 4, 1991 Page 2 Redevelopment has been asked to kick in $102,000 for Phase I (the 2.1 acres). The funds are for preparation of plans and specifications, grading, cutting in the streets, and for a wrought iron fence that will allow visibility of the new landscaping. When the request for expenditure of RDA funds came before the Council, I was asked to determine whether or not the city would be better served by selling off the commercial piece at the northwest corner of Waterman and Seventh. According to comps prepared by the Real Property Division, that parcel is worth $496,296. As a vacant parcel the revenue from property tax would be approximately $1200 per year. It would be difficult to estimate how much sales and utility tax the city would be receiving without knowing what would be developed there. As a small parcel, situated across from junk yards, it may not be ripe for development. However, if the city were able to sell the land for the asking price and did not touch the principal, investments from the sale, plus the additional property taxes would just cover the $40,000 annual drain on the cemetery is placing on the general fund. On the other hand, expansion of the cemetery represents the addition of 9000 grave sites and $10,000,000 in revenue. Even at today's low interest rates on the endowment care fund, the breakeven point is 241 graves sold per year. The average sale brings in $1125 and any sale over the breakeven of 241 graves would represent profits to the cemetery fund. Presently, with no advertising and no visibility, Pioneer sells 220 sites per year. A 10\ increase in sales (21 sites per year) brings the cemetery to break even. A 20\ increase in sales puts the cemetery 23 sites past breakeven and represents $25,875 profit per year. A 30\ increase equals annual profits of $57,375. ';ITY OF SAN BERNA'iINO - 'om: ROGER G. HARDGRAVE REQUEST FOttCOUNCIL ACTION Allocation of Funds from Bond Subject: Proceeds -- Phase :r of Bzpansion of Pioneer Cemetery, Northwest Corner of Waterman Avenue and Seventh Street lIP\Aublic Works ate:~-16-91 mopsis of Previous Council action: June, 1988 -- Allocation of $50,383 approved in 1988/89 Budget, under Account No. 244-364-57675, for acquisition of land for future expansion. &commended motion: e That the allocation of $102,177, from the tax allocation bond proceeds, for the Central City East Redevelopment Agency Project Area, to Account No. 244-364-57675, "Acquisition of Land and Improvements for Expansion of Pioneer Cemetery, . be approved; and the Director of Public Works/City Engineer authorized to prepare the plans, specifications, and estimate for construction of Phase I, nor t corner of t an Avenue and Seventh Street. cc: Shauna Edwins Andy Green Ken Henderson Dan Ustation .;ontact person: Roger Go Hardqrave Phone: 5025 pporting data .ulIIChed: _Staff Report & Map Ward: 1 FUNDING REQUIREMENTS{ Amount: $102.177 Source: (Acct. No.! 244-364-57675 (Acct. DescriDtiDn) Tax Allocation Bond Proceeds Finance: (~ )), Co~eNOt8S: Agenda Item No - 75.0262 CITY OF SAN BERNT'NO - REQUEST F~ COUNCIL ACTION e e e 75.02'4 STAFF REPORT Th.' original concept plans for development of Seccombe Lake Park included the area north of Seventh Street and west of Waterman Avenue. However, this area was deleted when the SCODe of this project was reduced. It is now planned for this Ci~y property to be used for the expansion of Pioneer Cemetery. sale. supply About 1,600 grave sites are currently available for At a consumption rate of approximately 220 per year, this is expected to last for 7.25 years. It is planned to develop this City property for expansion of pioneer Cemetery in two phases. The first phase is the 2.1 acres on the northwest corner of Waterman Avenue and Seventh Street, as shown on the attached map. Improvement of Phase I can be started immediately, with no unusual construction problems. Development of Phase II will entail installing a storm drain and filling the ravine. Also, the Little League Baseball Field will have to remain in service until the second new field, south of Seventh Street, is completed. The Preliminary Estimate of Cost, dated 9-29-90, show$ an amount of $102,177 for improving Phase I. About 1,000 grave sites can be provided per acre, which equates to 2,100 for the 2.1 acres in Phase 1. The City receives $575 for each grave site. Therefore, the total anticipated revenue from Phase I is $1,207,500. Improving Phase I for cemetery use will significantly enhance the visual effect for motorists traveling on Waterman Avenue. A wrought iron fence will be constructed in order to allow the landscaping to be visible from Waterman Avenue. We recol1Ullend that $102,177 be allocated, from the tal{ allocation bond proceeds from the Central City East Redevelopment Project Area, to finance the cost for improving Phase I. 1-16-91 - . _ TH ST. t \ . PIONEER CEMETERY EXPANSION >- a: "" . l- "" 2 N "" ~ ~ a: "" w ! A: PHASE 2 -- ~ ".. .;,.;.- ,,-,"," PHASE I e e e 7T H ST. SECCOMBE LAKE PARK 1-16-91 '-- "" ~ i 2 a: "" !;i it