SUPPORTS ITEM NO. 2
CS&B COMMITTEE AGENDA
JUNE 22, 1995
ADMINISTRATIVE REPORT
Date: May 8, 1995
Dept. File No. C324
TO: Standing Committee on City Services and Budgets
FROM: Medical Health Officer and
Manager of Real Estate Services
SUBJECT: Mountain View Cemetery
RECOMMENDATION
THAT Council direct staff to prepare and issue a Request for
Proposal on the subject of leasing and operating the Mountain View
Cemetery under the general terms and conditions outlined in this
report. Council will subsequently be asked to review and approve a
contract or lease award arising from this process.
GENERAL MANAGER'S COMMENTS
The General Managers of Community and Corporate Services RECOMMEND
approval of the foregoing.
COUNCIL POLICY
There is no Council policy directly attributable to this matter.
In December, 1985, Council approved the closure of the Mountain View
Cemetery for all burials effective April 1, 1986, except to provide
burial services to those plots sold and leased on a pre-need basis and
for the burial of indigents.
BACKGROUND
The City of Vancouver has owned and operated the Mountain View Cemetery
for a considerable number of years. The cemetery site plan is set out in
Appendix A. Its operation, currently under the direction of the City's
Medical Health Officer, requires the following staff:
- 1 Superintendent;
- 1 Foreman;
- 12 CUPE outside workers;
- 2 VMREU clerical; and,
- seasonal help as appropriate.
Over the years, the sale of graves for immediate or future use has
provided the bulk of revenue to operate the cemetery. As Mountain View
is, for all intents and purposes sold-out, the revenue from internments,
exhumations and ancillary activities does not cover operating and
maintenance costs. The deficit in 1994 was $620,800.
On average Mountain View handles 200-300 paid burials and 100 to 150
indigent burials per year. Operating statistics for 1994 show the
following types of burials:
City cases (indigents) - full burial 155
- ashes 23
Pre-sold graves - full burial 174
- ashes 266
DISCUSSION
The City of Vancouver has received a proposal from Newco, a funeral home
operator, to take over management control of Mountain View, and pay the
City annual lease payments in that regard. The main features of the
Newco Proposal are as follows:
- the construction and operation of a funeral parlour;
- construction of a mausoleum and selling of spaces therein;
- construction of a columbarium and/or niche walls and selling
of urn spaces therein;
- resale of graves paid for but not used for over 90 years; and,
- reclamation of certain veteran graves and closure of 37th
avenue to provide new supply of graves for sale.
Under its proposal, Newco will be able to cover all operating expenses
of Mountain View, and pay rent to the City, and make a profit.
The Manager of Real Estate Services is of the opinion that most funeral
home management teams could operate Mountain View at a profit, based on
a proposal along the lines of the one submitted by Newco. As an
alternative to dealing with one proponent only, we recommend that the
City advertise for proposals from all qualified funeral home/cemetery
operators, in order to maximize the return to the City from competing
interests. We believe that the ability to offer a complete package from
funeral home through to internment from one location should be of
considerable financial benefit to a funeral home operator.
The City's RFP document would include the following conditions and
requirements for the operation of Mountain View Cemetery by a private
contractor.
- a lease term of 20 years with optional renewals;
- a lease rate to be negotiated every five years with a base
rate and percentage of gross requirement, including rent in
lieu of property taxes;
- a requirement to upgrade and improve the cemetery grounds and
facilities over each five year period, but not including
revenue generating improvements, with specifics to be provided
by the proponents;
- the existing perpetual care fund to remain in custody and
control of the City of Vancouver;
- a requirement to provide 24 hour security;
- a requirement to provide City of Vancouver indigent funeral
services at a fixed fee for each five year period;
- a permission from the City to construct columbarium, niche
walls, funeral home, mausoleum, memorialization, offices and
any other funeral or cemetery facilities subject to City by-
laws and subject to design and location approval of the
Manager of Facilities Develop-ment;
- additional terms and conditions as deemed appropriate by the
Manager of Real Estate Services and Director of Legal Services
before the RFP is issued.
PERSONNEL IMPLICATIONS
We recognize that contracting out the operation of Mountain View
Cemetery to a private operator will create an issue for the staff
(possible loss of jobs) and City unions involved. Although the
appropriate provisions of the respective Collective Agreements will
protect the rights of staff in that regard, the Unions may wish to speak
to Council on this matter.
A copy of this report has been forwarded to the appropriate Unions
(VMREU, CUPE, and Foremen's Association) and Employee Groups
(Superintendents), as well as to the affected staff. The contents of
this report have also been discussed with the staff.
CONCLUSION
It is arguable whether the City should be in the cemetery business,
especially when its operation is being subsidized by the City's property
taxpayers. It appears that the City could be in a position to contract
the operation of its cemetery to a private operator, while retaining
ownership of the land, and make a profit on the transaction to boot.
In order to further explore this option, staff propose that Council take
the first step in that direction by approving the recommenda-tion of
this report.
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