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14 - SponsorshipsITEM NO. 14 Costa Mesa Sanitary District Memorandum To: Board of Directors ...an Independent Special District From: Scott Carroll, General Manager Date: July 31, 2013 Subject: Sponsorships to Estancia High School Sports and the Costa Mesa Community Foundation Summary Often, youth and non - profit organizations will ask CMSD to sponsor their events or support their organization with monetary donations. In the past, CMSD has sponsored events and /or organizations such as the MUZEO Trash Art Challenge, the Costa Mesa Mayor's Celebration: The Art of Leadership, Estancia High School sports, City of Costa Mesa 60th Anniversary, etc. District Counsel is recommending implementing new procedures for sponsoring organizations and /or events. Staff Recommendation That the Board of Directors: 1. Establish what District purpose is being served by being a sponsor; and 2. Describe how the expenditures advances that purpose; and 3. Approve or deny sponsoring Estancia High School sports and /or the Costa Mesa Community Foundation. Analysis Attachment "A" is a memo from District Counsel about the gift of public funds and expenditures for a proper public purpose. Before CMSD can officially sponsor events and /or non - profit organizations, District Counsel is recommending that CMSD must take the following actions: Protecting our community's health and the environment by providing solid waste and sewer collection services. www.crosdca.gov Board of Directors July 31, 2013 Page 2 of 4 • 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. For example, District purposes are to properly treat sewage, to prevent SSOs, to reduce landfill dumping, and to recycle. While the District might not be lawfully authorized to support "the Arts," it could sponsor the Muzeo contest because the contest promoted waste reduction by using trash to make art. Attachment B is a prepared chart to assist the Board in making the determination for the two current requests as well as future requests. • Then, describe how the expenditures will advance CMSD's purpose. District Counsel is recommending that the action described above must be made by the Board of Directors in a property noticed Board meeting. The Board's decision on the matter is entitled to judicial deference in a challenge while a staff member making this decision might be personally liable if wrong. Staff has received two requests for sponsorships. The first one is from Estancia High School Sports Boosters that is requesting $500.00 for displaying a CMSD banner in "Jim Scott Stadium ". In the past, the District has also paid for advertisement in Estancia High School Football program. The purpose of the banner is to promote CMSD as the community's sanitary agency. The stadium has a capacity of 2,600 and with the many sporting events that occur throughout the year, such as football, soccer and track and field, a CMSD banner at the stadium gives the organization exposure to the community. Attachment C is the sponsorship request from Estancia Sports Boosters. The second request is from the Costa Mesa Community Foundation (CMCF). CMCF is requesting CMSD to sponsor Concerts in the Parks and partner with them on promoting recycling and waste diversion activities. The deadline to apply for sponsorship of this event in 2013 has passed, so if the Board approves sponsoring Concerts in the Parks it will be in 2014. Attachment D is the sponsoring request from CMCF along with a list of different sponsorship levels. The District can be a Bronze Sponsor and display a CMSD banner at the event or for $2,500 the District can be a Gold Sponsor that will include a CMSD booth at all five concerts. The purpose for sponsoring Concerts in the Park is to increase CMSD's visibility in the community and /or bring awareness to the public by making available all the programs CMSD has to offer. Being a Bronze, Copper, Silver or Gold Sponsor will advance this purpose. Strategic Plan Element & Goal This item complies with objective and strategy of Strategic Element 5.0., Administrative Management, which states: "Objective: To create, maintain and implement policies and procedures to ensure sound management of the District. Board of Directors July 31, 2013 Page 3 of 4 Strategy: We will conduct periodic reviews, refine and implement policies and procedures, and assure the General Manager has the direction and tools necessary for successful District operations." Legal Review District Counsel has reviewed this report. Financial Review Staff estimates it will cost the District $650.00 to sponsor Estancia High School sports ($500 for displaying a CMSD banner at Jim Scott Stadium and $150 for a 1/4 page advertisement in the Estancia Football program. The cost to sponsor CMCF for Concerts in the Park ranges from $500 (Bronze Sponsor) to $2,500 (Gold Sponsor). In addition, staff estimates it will cost the District $621.05 in overtime for staffing a CMSD booth at all five concerts. Sponsoring Estancia High School sports is not budgeted in FY 2013 -14. This cost can be split 50% where $325.00 can be appropriated from the Liquid Waste Contingency and $325.00 can be appropriated from the Solid Waste Educational Programs. There is $33,430 budgeted in Liquid Waste Contingency and $40,900 budgeted in Solid Waste Educational Programs. Sponsoring CMCF for Concerts in the Park is not budged in FY 2013 -14. This cost can be split 50% where $250.00 or $1,250 can be appropriated from the Liquid Waste Contingency and $250.00 or $1,250 can be appropriated from the Solid Waste Educational Programs. There is $33,430 budgeted in Liquid Waste Contingency and $40,900 budgeted in Solid Waste Educational Programs. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 31, 2013 Board of Directors regular meeting at District headquarters and on District's website. Alternative Actions 1. Direct staff to report back with more information Board of Directors July 31, 2013 Page 4 of 4 Reviewed by: Stacey Cuevas Finance Manager Attachments A B C D Memo from District Counsel, dated June 27, 2013 Gift of Public Funds Determination Chart Request for Sponsorship from Estancia Sports Boosters Request for Sponsorship from Costa Mesa Community Foundation LAW OFFICES OF HARPER & BURNS LLP A LIMITED LIABILITY PARTNERSFBP INCLUDING A PROFESSIONAL CORPORATION JOHN R. HARPER* 453 SOUTH GLASSELL STREET ALAN R. BURNS ORANGE, CALIFORNIA 92866 COLIN R. BURNS TELEPHONE (714) 771 -7728 Of Counsel FACSIMILE (714) 744 -3350 JUDI CURTIN* MICHAEL MONTGOMERY* Alan R. Bums *A PROFESSIONAL CORPORATION arbums @halpetbums.com To: Honorable President and Board of Directors From: District Counsel Date: June 27, 2013 Re: Gift of Public Funds / Expenditures for a Proper Public Purpose Article XVI, Section 6 of the Cal Constitution provides that a public entity may not make a gift of public funds. The primary question to be asked is whether a private purpose is being served, as opposed to a public purpose. Over and above that primary test, one public entity cannot make a gift of its resources to another public agency if it does not advance the public purpose of the donor agency. In Golden Gate Bridge and Highway District et al. v. Luehring et al. (1970) 4 Cal.App.3d 204, the Court held that a bridge district that collected tolls could not turn over the surplus to a county, since the purposes of the two agencies were different. In an Attorney General opinion, it was also opined that a sanitary district could not donate its property to a park and recreation district but was required to sell that property for full and fair consideration. (46 Ops.Cal.Atty.Gen. 138.) Our sanitary district powers include the power to plan and build sewer facilities, as well as collect garbage and operate dumpsites. We are also authorized to make and enforce regulations for other sanitary purposes not in conflict with state law. (HSC § 6521.) We are also given the power to do any act necessary or proper to the complete exercise and effect of our powers (incidental powers). (HSC § 6522) Using that authority, we have engaged in recycling and waste reduction, as well as FOG reduction programs. We have in the past provided similar sponsorships of programs that advanced our public purposes. Those would include the recent Muzeo trash/art project. The courts will generally defer to the judgment of the legislative body making a determination that a public purpose is being served if that judgment has a reasonable basis. CONCLUSION To be able to justify a questionable expenditure as not being a gift of public funds, we must establish what District purpose we are trying to serve. After we identify that purpose, the Board needs to make a determination that a public purpose is being served by articulating how the Costa Mesa Sanitary District Gift of Public Funds / Expenditures for a Proper Public Purpose June 27, 2013 Page 2 expenditure advances that purpose. The Board's judgment should not thereafter be disturbed by the courts if its judgment on the matter had a reasonable basis. I recommend that the Board: 1. Articulate the purpose being served by identifying what District power we are advancing (e.g, awareness of trash recycling, not dumping in the sewer, not allowing grease to accumulate in sewerlines, etc.). 2. Describe how the expenditure advances that purpose. 3. Have the full Board vote on the matter so there is a Board judgment that a proper public purpose is being served. This needs to be determined in a properly noticed Board meeting. Only Board approval will entitle the decision to judicial deference. In fact, if any staff person determined to make the expenditure without Board approval, there could be personal liability. The fact a staff person acted honestly and in good faith provides no defense to personal liability. (Mines v. Del Valle (1927) 201 Cal. 273.) Respectfully submitted, dlerl� Alan R. Burns District Counsel cc: General Manager- District Clerk Treasurer Harper & Bums LLP 1 453 South Glassell Street, Orange, California 92866 1 Telephone (714) 771 -7728 1 Facsimile (714) 744 -3350 1 www.harperbums.com GIFT OF PUBLIC FUNDS DETERMINATION CHART ➢ Does the request serve a District purpose? NO: Gift of public funds YES: IDENTIFY — What statutory purpose might be served (sewer system, grease reduction, roots, divesting waste from landfill, recycling, other)? ➢ If a statutory purpose is not served, what incidental purpose might be served? NONE: Gift of publicfunds 10300011 ►•1 ➢ How will the expenditure of money advance the District purpose? IT WILL NOT: Gift of public funds IDENTIFY: District message is to be prominently displayed so as to reach our constituents? Other? an WNU o A &I 2973 Harbor Blvd., #761 Costa Mesa, CA 92626 r- V F4 b O 0 td .'., a TAX M# 36- 4652920 RECEIVED JUN 1 12013 ESTANCIA HIGH SCHOOL ���IAlYItJA�Al�IT1YDlSTRICT c/o Program Coordinator 425 East Bay Street Est - #1 - 2013 Costa Mesa, CA 92627 (714) 313 -6791 Costa Mesa Sanitary c% Javier Ochiqui 628 W. 19" St. Costa Mesa, CA 92627 We are in the process of renewing the yearly fees for our banners in "Jim Scott Stadium" at Estancia High School. The cost for the entire calendar year for your banner is $500.00. Hope you will continue to support the Estancia students with your generous contribution. Thanks, Chuck Perry (1) 3'x 5' Banner — (1) Calendar Year - Jim Scott Stadium $500.00 Check made out to: Estancia Sports Boosters Tax ID # 36 - 4652920 / 74 Thank You Scott Carroll From: Dean Abernathy <dabernathy @gmail.com> Sent: Wednesday, July 03, 2013 7:29 PM To: Scott Carroll Subject: Re: Costa Mesa Community Foundation Attachments: Sponsor _Information_Sheet[1].doc; 2013 - concerts - sponsor- brochure[1].pdf; 2013 -Concerts-in-the-Park flyer[1].pdf Dear Scott, The Costa Mesa Foundation is working on sustainability issues (recycling and transportation) and would love to team up with the District in ways that work for both entities.This year we are providing recycling options during the event and have an agreement with a recycler for materials, analysis and feedback on the results of our recycling efforts. This would be a great way for the District to get involved; with the District's support we could provide information and recycling impact/results on our website as part of an awareness campaign and link the reports and programs to the District (one of our directors is developing our web info) as well as take advantage of the messaging opportunities at the event. I have attached information materials for event sponsors that may provide a second opportunity for District outreach. Gold and above sponsors have a booth at the event for information and promotion. This is may be a way for the District and the Foundation to work together to inform the public/District clients (over one thousand people at the first concert) about event and community sustainability programs. I would love to work with you to develop and shape our recycling efforts to fit your requirements and make the most of this public awareness opportunity. I hope to see you at the next concert; Tuesday, July 9, 5:30 pm Fairview Park. Regards, Dean Abernathy COHCFRTS Sponsor Information Sheet & INVOICE This sheet outlines your benefits and responsibilities as a sponsor of the Costa Mesa Foundation's Summer Concert Series in Fairview Park. Your sponsor benefits begin once we receive your check. Make checks payable to Costa Mesa Foundation and note "Summer Concerts" in the memo line. Our address is below, or call for pickup. Date: Date Check Received: Sponsor Company Name Contact Name /Title Company Address Contact Phone (s) Contact Email Sponsor Level Name: Amount: Company Logo: Sponsor Benefits You receive all the benefits of your sponsor level, as well as the benefits of all lesser sponsor levels (ie $500 sponsor also gets $250 and $100 benefits). However, sponsor levels with display booths ($1,000 and above) only get the booth benefit for their level. Exclusive Title Sponsor $7500 Words "Presented By" on All Materials & Advertising Separate "Presented By" Banner with Company Logo at Top of Stage (16'x 2') 10 x 20 Display Booth at 5 concerts — Provided — includes 2 tables and 4 chairs Includes 3 preferred parking passes for 5 concerts First Right of Refusal to Be Title Sponsor At Next Concert Series Platinum Sponsors $5000 Insert in Weekly Concert Program Preferred Seating at all concerts, VIP Dinner Event at Final Concert 10 x 10 Display Booth at 5 concerts — Provided — includes table and 2 chairs Includes 2 preferred parking passes for 5 concerts Gold Sponsors $2500 Logo Recognition on Bandstand "Major Sponsors" Side Banners (4'x 11') 10 x 10 Display Booth at 5 concerts — Provided — includes table and 2 chairs Includes 2 preferred parking passes for 5 concerts Silver Sponsors $1500 Logo Recognition in Weekly Concert Program MC Recognition at Intermission Optional - 10 x 10 Display Booth at 3 concerts — You Provide Dates: #1 #2 #3 Includes 1 preferred p rking pass for 3 concerts Copper Sponsors $1000 Logo Recognition in Daily Pilot & Current Ads During Concert Series Recognition on CM Cable TV Optional - 10 x 10 Display Booth at 2 concerts — You Provide Dates: #1 #2 Includes 1 preferred parking pass for 2 concerts Bronze Sponsors $500 Company Banner Displayed at Event You Provide — 36" x 60" or smaller Name Sponsors $250 Name Recognition on Concert Posters /Flyers Individual & Families $100 Name Recognition in Daily Pilot & Current Thank You Ad at End of Concerts Name Recognition on Concert Web Site, Facebook Page & Other Social Media Display Booth Set -Up - -- If you're having a display booth at the concerts, please arrive by 4:30 p.m. to set up your booth and /or materials. - -- You'll receive an email before the concerts with your parking pass(es) and a map to the preferred booth parking area. - -- If you have a 36 "x 60" or smaller banner to display, it can be either in your booth or displayed elsewhere at the event (as determined by Costa Mesa Foundation staff.) Thank you for your support! Please call or email if you have any questions: d_ Mary Fewel President, Costa Mesa Foundation P.O. Box 10268 Costa Mesa, CA 92627 (949) 285 -2161 Costa Mesa CMConcerts(@gmail.com Foundation U� C0qCEHTS Sponsorship ❑ $7,500 - Title ❑ $5,000 - Platinum ❑ $2,500 - Gold ❑ $1,500 - Silver ❑ $1,000 - Copper ❑ $ 500 - Bronze ❑ $ 250 - Name 1]$ 100 - Individual /Family Ob6l 'ON Pwaad vJ 'ouy oEuos QIHd a6oisod 's-n '6jp ji}oaduoN t Sponsor Information Company Name: Contact Name /Title: Address: City: Phone: ( ) Email: State: Fax: ( ) Zip: Payment Information Please make check payable and send to: Costa Mesa Foundation / P.O. Box 10268 / Costa Mesa, CA 92627 For more information contact: Mary Fewel 949 - 285 -2161 cmconcerts@gmail.com uoitepuno-4 asaW e�so� Xq paanpoid ZZ9Z6 VD 'OsaW 0+ s0D 89Z01 X08 'Od uoijopunod asaW otso:) S3111unleoddo dIHSHOSWodS - E10a 111�Z�FI�I&M SIU13UO3 ERIS a I I PC ]k 00TOW ERTS5:30 - 7:45 pm, music starts at 6:15 pm July 2 The Answer (Classic Rock) July 9 Britain's Finest (Tribute to the Beatles) \\ July 16 Mark Wood & the Parrot Head Band (Tribute to Jimmy Buffet) July 23 Kirk Wall as Elvis (Popular Disneyland Performer) July 30 SPECIAL COSTA MESA 60TH ANNIVERSARY CONCERT Rod Piazza & the Mighty Flyers (Swingy Blues) ponsorship Levels Recognition in Daily Pilot and Current Thank You Ad at End of Concerts Recognition on Concert Web Site, Facebook Page & Other Social Media Recognition on Concert Posters /Flyers Company Banner Displayed at Event (You Provide - 36" x 60 ") Logo Recognition in Daily Pilot and Current During Concert Series $100 $250 $500 $1,000 $1,500 $2,500 $5,000 Name Name Company Logo Company Logo Company Logo Company Logo Company Logo Name Name Logo & Link Logo & Link Logo & Link Logo & Link Logo & Link 10 x 10 Display Booth Recognition on CM Cable TV Preferred Parking Pass at Concerts) Recognition in Weekly Concert Program MC Recognition at Intermission Recognition on Bandstand "Major Sponsor" Side Banners Preferred Seating at All Concerts, VIP Dinner Event at Final Concert First Right of Refusal to be Title Sponsor at Next Concert Series, Words 'Presented by' on All Materials and Advertising, Separate Banner at Top of Stage, Other Benefits by Arrangement Name Company Logo Company Logo Company Logo Company Logo Company Logo X X X X X X X X X 2 Concerts - 3 Concerts - 5 Concerts - 5 Concerts - You Provide You Provide Provided Provided X X X X 1 at 2 Concerts 1 at 3 Concerts 2 at 5 Concerts 2 at 5 Concerts X X X X X X X X X $7,500 Prominent Company Logo Prominent Company Logo & Link Prominent Company Logo X Prominent Company Logo in all ads 10 x 20 Booth - Provided X 3 at 5 Concerts X X Separate Banner X X Other Sponsorship Opportunities: Drawing Prizes .Youth Activities &Supplies .Band &Volunteer WaietianaCKS sorship advertising will begin as soon as possible after sponsor contract signed and funds received. Neighbors and families together - everything that makes Costa Mesa great! This is pure summerfun forthe entire community: picnics on the lawn or delicious fare from gourmet food trucks; cool ocean breezes and beautiful sunsets; great live music for listening or dancing, and face painting & art activities forthe kids. 5 Fantastic Bands I New Stage & Sound I Dancing I Gourmet Food Trucks - savory & dessert (S5 combo kids meals) I Beer & Wine Garden ($5 per glass) I Vendor Booths Available Typical Attendance 1,500- 3,000 /concert Demographics: 80 +% Costa Mesa residents 15% Hunt. Beach residents 5% Other residents Ages: 0 -10 15% (in years) 11-20 5% 21 -30 10% 31 -40 30% 41 -50 20% 51+ 20%