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CITY OF SAN BER~RbINO - REQUEST ~R COUNCIL ACTION
._ ........ File No. 6.26-3
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From:
ROGER G. HARDGRAVE REe'\). _ MHf,\t\SU8jiot:
Public Works/Engineerin~92 JM~ \ S Pl' 3: C \
1-15-92
Approval of Plans & Authorization
to Advertise for Bids - Phase
I of Expansion of Pioneer C~,
per Plan No. 8593
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Date:
Synopsis of Previous Council action:
June, 1988 Allocation of $50,383 approved in
under Account No. 244-364-57675,
of land for future expansion.
Allocation of $102,177, from tax allocation
proceeds, for acquisition of land
improvements, approved.
02-04-91
1988/89 Budget,
for acquisi tia,u,
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Recommended motion:
That the plans for Phase I of the expansion of Pioneer Cemetery,
in accordance with Plan No. 8593, be approved1 and the Director
of Public Works/City Engineer be authorized to advertise for
bids.
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cc: Shauna Clark
Andy Green
Dan Ustation
Tim Steinhaus
Contact person:
Supporting data attached:
Roqer G. Hardqrave Phone: 5025
Staff Report Ward: 1
Amount: $102.000 (Cemetery Fund)
Source: (Acct. No.) 244-364-57675
Acct. Descri ansion f Pioneer Cemeter
Finance: 1J
FUNDING REQUIREMENTS:
Phase I
Couricil Notes:
-0
75-0262
Agenda Item No
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CITY OF SAN BERN~DINO - REQUEST FOR COUNCIL ACTION
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75.0264
STAFF REPORT
Plans for Phase I of the expansion of Pioneer Cemetery
have been prepared by a Consulting Engineer, and the project is
ready to be advertised for bids. The project consists of
developing the 185' X 420 I parcel, on the northwest corner of
Waterman Avenue and 7th Street, for cemetery purposes.
Below is an estimate of the total cost of the items of
work to be done by contract:
Construction Contract
Consultant Fee - Design Services
Engr. & Insp. (W.O. U934)
2-Inch Water Meter Fee
Electrical Service Fee
Sub-Total
Contingencies (5%)t
TOTAL ESTIMATED COST
$ 63,076
19,800
7,500
4,570
2,500
$ 97,446
4,554
$102,000
A total amount of $152,560 has been allocated, under
Account No. 244-364-57675, to finance costs incurred for the ex-
pansion of Pioneer Cemetery.
Certain items of work will need to
such as rough grading, aggregate base,
planting trees. The preliminary estimate
of work is $18,400.
be done by City Forces,
asphal t concrete, and
of cost for these items
We recommend that the plans be approved and authorization
granted to advertise for bids.
1-15-92
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CITY OF SAN BERG. .DINO - REQUEST Q. ~ COUNCIL ACTION
From:
Shauna Edwins
City Admini.~rator
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
Dlpt:
Date:
March 4, 199-1
Synopsis of Pl'lIVious Council action:
1852
1922
Pioneer Memorial Cemetery opened.
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:
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.
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/ Signature
Contact person:
Shauna Edwins
Phone:
5122
Supporting date attached: Yes
FUNDING REQUIREMENTS: Amount:
Ward:
$102,177
Source: (Acct. No.! 244-364-57675
(Acct. Descriotionl Tax
Allocation Bond Proceeds
Finance: C",-,'L.J xJrv-
-
Council Notes:
Agenda Item No
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'''.0262
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, CITY OF SAN BERN~"'~INO - REQUEST F-'r COUNCIL ACTION
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STAFF REPORT
In 1852 ... city'. forefathers opened Pioneer Memorial Cemetery.
Seventy ~. elapsed before the city established an endowment
care f~ In 1922 to provide perpetual care for the grave sites
San Bernardino's "pioneers".
Another seventy years has elapsed and we find that the cemetery
is nearly at capacity. Currently there are 1,483 grave sites
available for s.ale. Approximately 220 graves are sold each year.
Using these figures, 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 annual
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 cOllllllunity opeoed
Pioneer and forever assumed the responsibility for maintenance.
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 cemete~ has an
old ballpark and a water tank. This land was acquired ~n 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 ~s 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
"f 0 t door" Pioneer cemetery is secluded by its location and
byrt:. wall.'and hedges that surround it. Expansion across these
arcel. and out to Waterman, will give the cemeterr exposure to
~7,000 vehicles per day. I believe this expos~re ~s the key to
raising the annual sales above the breakeven po~nt. 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 ha~:im:~elbe~~ o~~
incremental incre.ase in wat~r;ni. o~os~~e O;re~P!n~ crew il C:ap~ble
per year. Accord~ng to Dan s a ~ ,
.' of maintaining the additional acreage.
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Staff Report - Cemetery Expansion
March 4, 1991
Page 2
Redevelo~nt 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 s_ll
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 0 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 la' 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.
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C I T Y 0 F SAN B ERN A R DIN 0
INTEROFFICE MEMORANDUM
CITY ADMINISTRATOR'S OFFICE
DATE: December 30, 1991
TO: Honorable Mayor and Common Council
FROM: Peggy Ducey
SUBJECT: Sale of Cemetery Property
COPIES: Shauna Clark, Fred Wilson
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The City is currently in the process of expanding Pioneer Cemetery.
Plans for Phase I, which is the expansion into the area north of
Seventh Street and west of Waterman, have been completed and City
and contract forces are ready to begin work to complete the
project.
The expansion was originally recommended based upon the potential
revenue from the additional 9,000 grave sites, estimated at
$10,000,000. In March, 1991 when the allocation of money for the
expansion was requested, Real property Division estimated the
parcel at Waterman and Seventh to be worth $496,296. An additional
$1,200/year would be generated in property taxes if the parcel
remained vacant. Other revenue (sales, utility users) could not be
estimated without knowing the type of development that would
eventually be constructed.
Since actual construction of the expansion has not begun yet, sale
of the Seventh and Waterman property can be evaluated again, in
light of the City's growing budget deficit. The property is
located on a busy corner with good visibility. However, the parcel
is narrow and deep, making it somewhat less attractive for
development. The zoning for the property is , the least
restrictive commercial zone, but surrounding businesses are strip
commercial, making it likely that any development on this parcel
would follow suit. Again, because of the shape of the parcel,
large commercial or retail development is unlikely. Consequently,
sales and utility tax generated would not be great and another
strip commercial development would not help to upgrade the image of
Waterman. Another concern is that real estate sales have been
slow, and the property may not be marketable at this time. Given
these concerns, sale of the property to a private owner may not be
best course of action.
One possibility would be to have the Economic Development Agency
purchase the property and lease it back to the City for a nominal
fee. The expansion of the cemetery could proceed, so that the
corner would have a landscaped, open area and the Cemetery entrance
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would be built, attracting more potential buyers for the existing
Cemetery. since space will still be available in the existing
cemetery for another 5-8 years, it would not be necessary to use
the Waterman parcel as gravesights for quite a while. If in the
next ten years the Waterman property becomes more attractive for
quality development, the parcel could be sold without concern for
graves existing on the property. The purchase agreement with EDA
could also include a stipulation that the City would have first
right of refusal to purchase the property back.
RECOMMENDATION
It is recommended that the City begin negotiations with EDA to
purchase the property at Waterman and Seventh, with a lease back
agreement so that the Cemetery expansion can continue.
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eggy Ducey:
Assistant the City Administrator