OFFICE OF CEMETERY OVERSIGHT



OFFICE OF CEMETERY OVERSIGHT

ADVISORY COUNCIL ON CEMETERY OPERATIONS

MINUTES

DATE: April 27, 2006

TIME: 10:00 a.m. – 1:00 p.m.

PLACE: Department of Labor, Licensing and Regulation, 500 N. Calvert Street, Baltimore, Maryland 21202, 2nd Floor Conference Room

PRESENT:

David Goodman, Chair

George Piendak, Director

Leila Whitley, Administrative Aide

Paulette Wirsching, Assistant Attorney General

Patricia Fagan Tress, Investigator

Jay Cherry

Richard Cody

Susan Cohen

Bill Divelbiss, Sr

Erich March

Frank Markowski

Sarah Rex

Jack Tyrie

.

GUESTS PRESENT:

Linda Chisholm, Dulaney Valley Memorial Gardens

Charlene Elliott, Maryland National Cemetery

Barbara Graves, Consumer

Douglas Graves, Consumer

Harold Harrison, Harrison Memorial Accessories

Adrian Harrison, Harrison Memorial Accessories

Carolyn Jacobi, MBNA

David Mason, Mason Government Relations Service

Raymond Merkle, Raymond V. Merkle Co.

Tammy Prysiazny, MFCFA

Guy Saxton, Woodlawn Cemetery

Alvin Seubott, C.M. Seubott Memorials

Lisa Standiford, Dulaney Valley Memorial Gardens

Kevin Vitelli, Esq., Woodlawn Cemetery

John Yeatman, Woodlawn Cemetery

CALL TO ORDER:

Chair Goodman called the meeting to order at 10:00 a.m.

MINUTES:

Several corrections were made to the minutes of the March 23, 2006 meeting. Under Announcements, “monument customers,” replaced “monument companies.” After the corrections were made, on motion of Jay Cherry, seconded by Jack Tyrie, the Council unanimously adopted the minutes of the March 23, 2006 meeting as amended.

ANNOUNCEMENTS:

Chair Goodman extended the Council’s condolences to Frank Markowski for the loss of his mother and to Erich March for the loss of his mother. Both Frank Markowski and Erich March thanked the Council members for their cards and kind words in their time of sorrow.

Chair Goodman announced that today’s Council meeting was going to be conducted similar to a public hearing. The main subject is the fees being charged for perpetual monument care in excess of the minimum required. Jack Tyrie organized several individuals representing Maryland monument dealers to present their point of view; Carolyn Jacobi from Eternal Justice will speak; and John Yeatman and Guy Saxton will present the view of the cemetery owners. Chair Goodman requested that each person limit their comments to five minutes followed by two minutes for questions and answers.

George Piendak explained the need for the hearing is a result of the sale of three former SCI cemeteries to John Yeatman and Guy Saxton. Mr. Yeatman and Mr. Saxton are extending their current practice of charging monument care fees at the time monuments are installed in their cemeteries. The additional fee charged is deposited in the perpetual care fund of the cemetery.

Susan Cohen believes each cemetery needs to define what they see as perpetual care. Erich March stated that there is a difference between memorial care and perpetual care. Perpetual care includes the surface of the grave. When a marker is placed in the ground, it creates a different scenario because the earth has been moved and the potential for the monument to sink exists. Markers require yearly attention. It also takes more labor to trim around a monument than to maintain a grave that has no monument.

Jack Tyrie stated that the monument dealers build the proper foundation, but often times the cemetery does not install the monuments properly.

GUEST SPEAKERS:

Al Seubott was the first to speak on behalf of the monument dealers. Mr. Seubott stated that approximately 10 years ago he began getting complaints from consumers regarding high fees being charged by cemeteries. Consumers felt they were being taken advantage of at a difficult time in their lives. Mr. Seubott asked the Office of Cemetery Oversight to look closely at the “mandatory” fee that is being imposed by the three cemeteries – Evergreen Memorial, Woodlawn and Lakeview.

Susan Cohen asked Mr. Seubott what is the nature of the consumers’ complaints. He stated the consumers feel they are being charged an additional fee after paying for the marker. Mr. Seubott contended that if a new owner of a cemetery decides there are inadequate funds in the perpetual care trust, the owner should increase the selling price of lots, not add a supplemental charge on memorials. Erich March stated that at his cemetery (which has an additional monument care fee), the consumers are given a price list which includes the installation of any markers and a $275 charge for marker care. By law, the consumer is told they do not have to purchase their marker from the cemetery. Erich March further explained that charges are applicable if the consumer buys a monument from the cemetery or from a monument dealer.

Frank Markowski explained that because consumers are signing contracts at an emotional time, they often believe they were never given information that they were, in fact, given. Mr. Markowski pointed out the necessity of adequate funding of perpetual or “endowment” care trusts to assure sufficient financial resources for future maintenance and care. Sarah Rex added that, by law, consumers have to sign a disclosure statement acknowledging that they understand what is and what is not included in the contract.

Harold Harrison of Harrison Memorial Accessories addressed the Council next. He stated that consumers do not know there is going to be an additional charge at the time of the installation of the marker and they feel they are being taken advantage of. Mr. Harrison stated the $.35 per square inch charge is outrageous. Mr. Harrison stated that because consumers have been paying the additional fee through him, they will often come back to him expecting him to clean the marker, etc. He contended that the cemetery, not the monument dealer, should be responsible for collecting the fee from the consumer. David Goodman asked Mr. Harrison if the consumer’s check is made payable to the cemetery or the monument dealer. When Mr. Harrison stated the check was made payable to the monument dealer, Chair Goodman suggested the fee be paid directly to the cemetery, which should and could separately invoice the customer.

Carolyn Jacobi of Eternal Justice spoke to the Council next. She stated that monument dealers have a responsibility for quality workmanship; the cemetery is responsible for damage to monuments caused by the cemetery. Problems occur when the consumer’s money is not being used appropriately. She stated that a prior agreement between cemeteries and monument dealers requires all fees to be based on actual labor costs. Ms. Jacobi stated that the main concern is the consumer and she said the consumer’s rights must be protected. She further explained that today we are talking about 3 to 5 cemeteries, but this charge will spread like wildfire if allowed to continue.

Guy Saxton, who was joined by his partner, John Yeatman, and their attorney, Kevin Vitelli, Esquire, spoke on behalf of their cemeteries. Mr. Saxton explained that the endowment care fund is a retirement fund for a cemetery. When the cemetery is full, no money is coming in, but the maintenance will need to continue. If the trust fund is too small, the care will not be able to continue. He and his partner are trying to provide for the largest endowment care fund. He further stated that 10% is not enough. Each time a marker is placed in the ground, maintenance care is increased. Mr. Saxton stated that the installation fee charged in their cemeteries is deposited into a perpetual care fund which is annually audited by a CPA. Mr. Saxton stated that the perpetual care fund is to benefit consumers as well as the cemetery.

Chair Goodman thanked everyone for their time and asked everyone to return at our next Council meeting in order to continue this discussion.

DISASTER PLANNING:

Paulette Wirsching advised that any legislation proposed by the Council must first be submitted to the Secretary DLLR as a Concept Paper. Erich March recommended that any disaster planning proposals made by the Council be made as a regulation. David Goodman agreed with Erich’s suggestion. The Chair asked the Director to discuss with the Commissioner approval of developing a concept paper for requiring cemeteries to prepare disaster plans.

Tammy Prysiazny, representing the Maryland Freestate Cemetery and Funeral Association, addressed the Council regarding their efforts for disaster planning within the funeral industry. Tammy informed the Council that the disaster planning issue was brought up at one of Maryland Freestate’s Board meetings. The Board is open to the need and is willing to work with the Office of Cemetery Oversight’s Advisory Council in developing a disaster plan at each cemetery.

Frank Markowski stated that cemeteries have the ability to handle minor emergencies, but State intervention is probably necessary for any major disasters. He believes customs and rituals related to burials will have to be suspended during times of true crises. Mr. Markowski emphasized the importance of identifying resources as part of disaster planning. For example, he cited the importance of identifying cemeteries which have a large number of undeveloped areas for use in the event mass burials were to become necessary. Chair Goodman feels this Council should get involved in a very active way in planning optional outcomes for periods of intense crises.

Paulette Wirsching stated she obtained information from the internet regarding disaster planning for cemeteries and provided the Council with a number of website addresses. A motion was made by Erich March to have the Council bring a Concept Paper to the Commissioner. The purpose of the Concept Paper is to notify and seek comment from senior DLLR officials. The motion was seconded by Jack Tyrie.

Paulette Wirsching stated that she has to look at the types of emergencies which can affect our State in defining “disaster” if regulations are ultimately proposed. Sarah Rex reminded the Council that Woodlawn Cemetery has many old records and suggested that someone get in touch with John Yeatman regarding reviewing old records, specifically how the flu epidemic of 1918 was handled.

INVESTIGATOR’S REPORT:

Last month Patricia Tress discussed a complaint received from a woman whose husband’s cremains were lost when the cemetery buried someone else on her husband’s lot. She reported that the proper ashes were found eventually and identified, both by name and personal affects. The intervention from this Office caused this matter to be come to a rapid conclusion.

Since December, 2005, twenty nine complaints have been resolved - 11 complaints resulted in repairs to graves, monuments or cemeteries in general; 3 complaints resulted in the consumers receiving documents they had requested; 2 complaints resulted in burial locations being confirmed; 8 complaints were unsubstantiated; and 5 complaints resulted in full or partial refunds to consumers. With the onset of spring, the number of phone calls received in the month of April doubled from the number of calls received in March. However, there were no significant increases in written complaints.

DIRECTOR’S REPORT:

The Director reported that he attended the April meeting of the Morticians’ Board. The Board is going forward with regulation of crematories located at funeral homes. The Morticians’ Board believes it already has the authority to do so. Any crematories not in funeral homes, nor owned by morticians, will remain unregulated.

The OCO is in the process of licensing a new cemetery, City of Angels, in Wicomico County. The Office is also working with an Assistant State’s Attorney in a Southern Maryland County attempting to file charges for misfeasance and malfeasance of a cemetery owner on a variety of issues.

The OCO recently met with a major corporation which owns several Maryland cemeteries regarding licensing issues and trust reports.

MORTICIANS’ BOARD MEETING SUMMARY REPORT:

On April 12, Richard Cody and George Piendak attended the April Board Meeting. The House and Senate could not agree on the proposed amendments to the final versions of the Sunset Extension provisions for the Morticians Board, therefore no Bill was enacted. The Morticians Board continues, absent enactment of an extension until June 30, 2008. The Cemetery Oversight will function in DLLR until June 30, 2007, absent a legislative extension.

All Morticians licenses expire April 30, plus 15 days. As of the meeting 550 were renewed and 250 yet to be renewed. The Assistant Attorney General for the Board was requested to prepare new regulations for adoption at the next meeting so that the Board could regulate only those crematories owned and operated by funeral directors individually or corporately. The Board intends to vote on final adoption of its crematory regulations at the May meeting. This bifurcated approach would treat unequally crematories based upon their corporate ownership. Some regulation by the Morticians, assuming they have the legal ability to do so would give the appearance of doing something but not respond fully to the Department of Legislative Services Sunset Report recommendations.

ADJOURNMENT

On motion of Frank Markowski and seconded by Jay Cherry, the Council voted unanimously to adjourn at 1:10 p.m. The next meeting is Thursday, May 25, 2006.

Approved:

___ With corrections

___ Without corrections

_____________________________________ _______________________

(Signature of Chairman) (Date)

Revised 5/10/06 – 8:16 a.m.

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