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#3 Authorize expenditures at Oak Hill Cemetery (File Res. #2009-589) OPERATIONS DIVISION MEMORANDUM March 12, 2009 TO: City Council FROM: Peter Riggs, Assistant Operations Director SUBJECT: Action on a proposed resolution authorizing the expenditure of funds for the operation and maintenance of Oak Hill Cemetery for the remainder of fiscal year 2009 (File Resolution No. 2009-589). Summary On December 22, 2008 the City Council approved resolution 2008-568 accepting the transfer of property and funds associated with Oakhill Cemetery. A budget for the City of Janesville to perform the operation and maintenance of the Oak Hill Cemetery for the remainder of 2009 has been prepared for review by the City Council. This budget proposes expenses of $235,335, revenues of $116,250, and the use of $119,085 from transfers received from the Oak Hill Cemetery Association. The City Council may approve this budget by approving resolution 2009-589. The Additional Activities section below describes suggested projects to be performed to ensure the efficient and effective operation and provision of services at the Oak Hill Cemetery. These activities include the creation of an Oak Hill Cemetery Advisory Committee, a policy manual, a facility maintenance plan, a decision on the removal or repair of the water distribution system, a road network inspection and maintenance plan, a tree inventory and maintenance plan, and electronic record storage. Staff Recommendation Staff recommends that the City Council approve resolution 2009-589 authorizing the City of Janesville to expend funds not to exceed $235,335 for the operation and maintenance of the Oak Hill Cemetery for the remainder of fiscal year 2009 ending December 31, 2009. The details of this expenditure are outlined in the Proposed Budget section below. Suggested Motion Move to approve Resolution 2009-589 authorizing the expenditure of funds not to exceed $235,335 for the operation and maintenance of the Oak Hill Cemetery for the remainder of fiscal year 2009 ending December 31, 2009. City Manager Recommendation The City Manager recommends approval of the proposed motion. However, staff will continue to analyze how the City can reduce the expenses for this activity as we move into the coming budget year. 1 Proposed Motion I move to approve File Resolution No. 2009-589. Request On December 3, 2008 the Board of Trustees of the Oakhill Cemetery Association, Inc. passed a resolution transferring all cemetery property and funds to the City of Janesville, pursuant to Section 157.064(5) of Wisconsin Statute. On December 22, 2008 the City Council approved resolution 2008-568 accepting the transfer of property and funds and authorized the City Manager to enter into agreements with the Oakhill Cemetery Association to complete this transfer no later than March 30, 2009. The transition of property and funds is underway and Council approval is now required to begin the expenditure of funds for the operation and maintenance of Oak Hill Cemetery. Background In 2007, the City of Janesville was approached by members of the Board of Trustees of the Oak Hill Cemetery Association regarding their financial condition and the continued operation of the cemetery. Board members indicated that without financial assistance the Cemetery Association would be forced to abandon the cemetery and the City of Janesville would be required to take over operations as provided in Wisconsin Statute 157.115(1)(b). In December 2008 the Board of Trustees passed a resolution transferring all property and funds to the City of Janesville. The City Council accepted this transfer by approving resolution 2008-568 on December 22, 2008. The resolution stated the transition must be completed by March 30, 2009. At this point the City of Janesville is responsible for the operation and maintenance of the Oak Hill Cemetery. City staff has been working with the Oak Hill Cemetery Association to transfer property and funds and prepare for the transfer of ownership and management of the cemetery. In total, the Oak Hill Cemetery Association transferred $389,630 in cash and investments to the City of Janesville as well as approximately 90 acres of property containing five buildings, two pickup trucks and numerous pieces of equipment and supplies. Analysis The City Council approved the transfer of property and funds from the Oak Hill Cemetery Association to the City of Janesville and now approval is needed to fund operating and maintenance activities at the cemetery. The following are Pros & Cons of choices the City Council has for addressing resolution 2009-589. 2 The City Council Approves Resolution 2009-589 Pros: ? The operations and maintenance of Oak Hill Cemetery continues at existing service levels without interruption. ? Customers and users of Oak Hill Cemetery are not negatively affected by changes in service levels, cemetery ownership, or cemetery management. ? Revenues from cemetery activities and funds transferred from the Oak Hill Cemetery Association are used to cover expenses for the remainder of 2009, which helps to conserve general fund tax dollars. Cons: ? Future operating budgets could require a general fund subsidy which could result in an increased tax levy or a reduction of funding for other City services. ? Cash and investments transferred from the Oak Hill Cemetery Association are depleted. The City Council Does Not Approve Resolution 2009-589 Pros: ? The City of Janesville does not expend any funds at this time. Cons: ? The operation and maintenance of Oak Hill Cemetery stops due to lack of funding, preventing burial activities and contributing to the deterioration of the buildings and grounds. ? The City of Janesville is still responsible for the care and maintenance of the cemetery grounds (Wisconsin State Statute 157.115 (1) (b)). Proposed Budget This section outlines the proposed budget required for the operation and maintenance of Oak Hill Cemetery for the remainder of 2009. An operating expense of $235,335 is proposed to be funded by revenues of $116,250 and $119,085 from cash and investments transferred from the Oak Hill Cemetery Association. This information is shown in Table 1 below. Table 1 Oak Hill Cemetery Cash and Investments Cash and Investments as of February 27, 2009$389,630 Add: Revenues116,250 Less: Expenses235,335 Change in Total Cash and Investments(119,085) Total Cash and Investments at December 31, 2009$270,545 This budget provides for continuation of current levels of service with minimal impact on the customers and users of the Oak Hill Cemetery. The budget provides for building and grounds maintenance, including five buildings, 3 approximately 13 miles of paved roadways, hundreds of trees, 90 acres of lawn and forest, and approximately 24,000 existing burial sites. This budget also provides for the cemetery office to be open and staffed 20 hours a week to coordinate grave openings and closings (115), lot sales (85), and record keeping of all new and historical burial records (over 24,000). Proposed 2009 Oak Hill Cemetery required resources are detailed in Table 2 below. Personal Services ($128,313) provides for wages and fringe benefits for two full time Cemetery Caretakers ($74,779), a part time Customer Service Representative ($11,651), seasonal laborers ($19,800), and additional funds for supervisor wages and anticipated general laborer wages ($22,083). Contractual Services ($100,122) contains funds for Vehicle Operation and Maintenance ($50,862) for the fuel, maintenance, and replacement costs of two pick up trucks and various pieces of equipment used for mowing and maintaining the cemetery grounds. Equipment Rental ($5,400) is for a backhoe leased for use in grave openings and closings. Water, Wastewater, and Stormwater ($26,760) contains a one time payment for unpaid utility charges ($21,760) in addition to expected utility charges for the remainder of 2009 ($5,000). 4 Table 2 Proposed 2009 Oak Hill Cemetery Required Resources PERSONAL SERVICES Salaries & Benefits$0 Hourly Wages & Fringe108,513 Temporary Wages19,800 Subtotal128,313 CONTRACTUAL SERVICES Telephone900 Postage400 Electricty900 Gas (Heat)1,400 Vehicle Oper/Maintenance50,862 Building Maintenance5,000 Insurance7,500 Rental of Equipment5,400 Other Contractual Services1,000 Water, Wastewater, Stormwater26,760 Subtotal100,122 SUPPLIES & MATERIALS Office Supplies500 Park Supplies & Lumber2,000 Chemicals & Cleaning Supplies2,400 Misc. Supplies/Materials2,000 Subtotal6,900 CAPITAL OUTLAY0 GRAND TOTAL$235,335 Full-Time Equivalent2.50 5 Revenues of $116,250 are expected for the remainder of 2009. This is a combination of revenues gained from an estimated 86 burials ($62,250), 60 lot sales ($48,000), and income earned on investments ($6,000). This information is detailed in Table 3 below. Table 3 Proposed 2009 Oak Hill Revenues Burials$62,250 Grave Sales48,000 Interest Income6,000 Total$116,250 Additional Activities The following activities have been identified as projects that should be performed to ensure efficient and effective operation and provision of services at the Oak Hill Cemetery. ? Oak Hill Cemetery Advisory Committee A volunteer citizen committee could be created to provide the City Council with recommendations on policy issues concerning the operation and maintenance of Oak Hill Cemetery. If the City Council desires to create an advisory committee, then it is suggested that a Council Policy be created to outline the responsibilities, goals, and objectives of this committee. ? Creation of a Policy Manual for the Oak Hill Cemetery Rates for burials, cemetery lot prices, and cemetery regulations were set by the Oak Hill Cemetery Association in a policy document. Now that the City of Janesville has taken over ownership and responsibility for the Oak Hill Cemetery it is suggested that an updated policy document be created and presented to the City Council for their approval. This document should continue to address such things as burial rates, lot prices, and regulations for customers and visitors of the cemetery grounds. ? Facility Maintenance Plan There are five buildings on the Oak Hill Cemetery grounds. It is suggested that these buildings be examined and a maintenance plan developed. Specifically, the maintenance plan should address the significant structural concerns of the chapel and white auxiliary storage building and recommend action. ? Decision on Water Distribution System A water distribution system extends throughout the cemetery grounds providing visitors water for tending graveside flowers. The system is in poor condition and is prone to leaks and pipe breaks which result in excessive water usage and costly repairs. It is suggested that an analysis 6 be performed and a decision made to either removal or repair of the water distribution system. ? Road Network Inspection and Maintenance Plan Approximately 13 miles of paved roadways exist within the cemetery grounds. It is suggested that an assessment be performed to determine required repairs and develop a plan for maintaining this roadway network. ? Tree Inventory and Maintenance Plan The Oak Hill Cemetery grounds are home to hundreds of trees. Staffing levels have not allowed for the regular maintenance of these trees and now there is a significant quantity in need of pruning and removal. It is suggested that problem trees be identified and a maintenance plan be created to address this need. ? Electronic Record Storage The Oak Hill Cemetery Association maintained thousands of burial records and transactions in a paper format. It is suggested that existing paper records be updated to a digital format and a digital record keeping process be developed to capture new data and to ensure the security and accessibility of this information. CC: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services Tom Presny, Parks Director Jean Wulf, City Clerk-Treasurer Patty Lynch, Comptroller Dave Godek, Deputy Clerk-Treasurer 7 RESOLUTION NO. 2009-589 A resolution authorizing the expenditure of funds for the operation and maintenance of the Oak Hill Cemetery for the remainder of fiscal year 2009 ending December 31, 2009. WHEREAS, The Board of Trustees of the Oakhill Cemetery Association, Inc. has determined that revenues are no longer sufficient to meet the operating expenses of Oakhill Cemetery, located at 1725 North Washington Street, and may need to abandon the cemetery; and WHEREAS, Wisconsin Statutes 157.115(1)(b) states that a municipality may take over an abandon cemetery after one year and shall take over an abandon cemetery after five years; and WHEREAS, Wisconsin Statute 157.064(5) states that a cemetery association may transfer property and funds to a city, village, or town if the governing body of that municipality accepts the transfer by resolution; and WHEREAS, on December 3, 2008 the Board of Trustees of the Oakhill Cemetery Association, Inc. passed a resolution transferring all cemetery property and funds to the City of Janesville, pursuant to Section 157.064(5) of Wisconsin Statute; and WHEREAS, on December 22, 2008 the City Council approved resolution 2009-568 accepting the transfer of property and funds and authorized the City Manager to enter into agreements with the Oakhill Cemetery Association to complete the transfer by March 30, 2009; and WHEREAS, cash and investments totaling $389,630 as of February 27, 2008 have been transferred from the Oak Hill Cemetery Association, Inc. to the City of Janesville; and WHEREAS , the Common Council find that the below expenditures are in the best interest and benefit of the City and its residents, businesses, and community. NOW, THEREFORE, BE IT RESOLVED BYTHE COMMON COUNCIL OF THE CITY OF JANESVILLE, AS FOLLOWS: 1. Each of the above recitals is reiterated herein as if fully set forth verbatim; and 2. The City Administration is authorized to expend funds for the operation and maintenance of the Oak Hill Cemetery for calendar year 2009 as follows : Oak Hill Cemetery Revenues $116,250 Oak Hill Cemetery Operating Expenditures $235,335 Use of Transferred Cash and Investments $119,085 BE IT FURTHER RESOLVED , that the City Manager and his designee(s), on behalf of the City of Janesville, is/are hereby jointly and severally authorized and empowered to negotiate, draft, review, revise, modify, amend, execute, enter into, file and/or record additional agreements, amendments, documents and letters of understanding concerning this matter, and to take whatever additional other actions that the City Manager may determine in his sole discretion, from time to time and at any time, necessary and/or desirable in the public interest to effectuate the intent of this Resolution. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Loasching Eric J. Levitt, City Manager McDonald Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: City Administration Prepared by: Assistant Operations Director and City Attorney J:\Attorney\Word\Shared\Oak Hill Cemetery Resolution 2009-589 - Oak Hill Cemetery Expenditure Request Wald (2).doc