7 - Generator Rental Program Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors From: Scott Carroll, General Manager Date: October 14 , 2014 Subject: Generator Rental Program for Sponsoring Non -Profit Group Events Summary The Board directed staff to develop criteria that will allow non -profit groups to rent District portable generators as a sponsorship contribution for their events. Staff is requesting discussion from the Board regarding this issue and to seek clar ification and/or direction on how to proceed. Staff Recommendation That the Board of Directors provide staff direction. Analysis In mid -November the District will be receiving seven portable generators that will provide emergency backup power to our sewer pump stations in the event of sudden power outages. The District entered into an agreement with the City of Costa Mesa to store the generators at the City’s Corporate Yard and in return, the District will allow the City to use the generators for co mmunity events such as the Snoopy House Holiday Display. The Board directed staff to develop criteria that will allow non -profit groups to rent District portable generators as a sponsorship contribution for their events. However, to avoid generator renta ls being considered a gift of public funds, the District should follow the sponsorship procedures that were established by the Board on July 31, 2013 . The procedures are as follows:
Board of Directors October 14, 2014 Page 2 of 3 1. Establish the purpose CMSD is trying to serve by being a sponsor. This must be a purpose established as one of the District’s statutory powers or a power that would be incidental to those purposes. 2. Describe how renting the generators to nonprofits will advance CMSD’s purpose? One such purpose is to exercise the generators at nonprofit special events so that the generators will be operational and functional when needed for power outages. Another purpose is to promote CMSD programs at special events by requiring nonprofits to advertise source reduction program s or make available ways for people to recycle at events . Other issues that need to be addressed includes towing the generators to and from the event, fuel, equipment damage, insurance, bonding, et c. According to Great Nonprofits website (www.greatnonprofits.org ) there are 582 nonprofits in Costa Mesa that include schools, churches, health awareness, arts, music, transition housing, etc. Strategic Element & Goal Not applicable. Legal Review Not applicable at this time; however, if the Board directs staff to continue developing criteria, District Counsel will review such criteria before the program is implemented. Environmental Review When the sub ject of providing backup power or backup pumping was analyzed for impact on the environment, the District found that providing backup power or backup pumping was categorically exempt under CEQA based on the finding that providing a backup unit to an alread y existing sewer pump station was a minor alteration to an existing facility and exempt under Section 15301, Class 1, minor alteration. Providing non -pro fit groups the ability to rent the generators will serve to exercise the generators similar to what would occur if each the generators was permanently installed at a pump station. This can be considered maintenance of the generators and maintenance is also categorically exempt under C EQA Section 15301, Class 1, maintenance. Therefore, the program for allowing limited use of the gene rators by others is exempt under CEQA. Financial Review There are no financial impacts at this time; however, if a Generator Rental Program is implemented , staff believes there will be financial impacts to the District. Potential financial impacts to the District could be the cost of fuel and staff hours for administering the program such as inspecting generators for damages, checking in and out the
Board of Directors October 14, 2014 Page 3 of 3 genera tors from the City’s Corporate Yard, reviewing rental requests as well as insurance documents. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 14 , 2014 Board of Directors Study Ses sion meeting at District Headquarters and on the District ’s website. Alternative Actions 1. Do not develop criteria for Generator Rental Program. 2. Direct staff to report back with more information.