Loading...
4.a - Sponsorship Costa Mesa Foundation 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: September 9 , 2013 Subject: Costa Mesa Community Foundation Sponsorship 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 o rganizations such as the MUZEO Trash Art C hallenge, the Costa Mesa Mayor’s Celebration : The Art of Leadership, Es tancia High School sports , City of Costa Mesa 60 th Annive rsary, etc. On July 31, 2013, the Board approved implementing new procedures for sponsoring organizations and/or events. Staff Recommendation That the Board of Directors discuss the sponsorship levels for Concerts in the Park and how being a sponsor will serve the District’s purpose . Analysis Attachment “A” is a memo from District Counsel about the gift of public funds and expenditures for a proper public purpos e. On July 31, 2013, The Board approved new procedures to determine if the District can officially sponsor events and/or non -profit organiz ations. Before the District can be a sponsor, the Board must follow the following procedures.  Establish the purpos e 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 spo nsor the Muzeo contest because the contest promoted waste reduction by using trash to Board of Directors September 9 , 2013 Page 2 of 3 make art . Attachment B is a prepare d 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. On July 31, 2013, the Board of Directors heard a reques t from the Cos ta Mesa Community Foundation (CM CF) to be a sponsor of Concerts in the Park in 2014 . CMCF is requesting CMSD to sponsor Concerts in the Park and partner with them on promoting recycling and waste dive rsion activities. Attachment C 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. One such purpose the Board can consider 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 Spons or will advance this purpose. On July 31 st , the Board directed staff to bring this item back for further discussion at today’s study session Strategic Plan Element & Goal This item complies wit h 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. 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 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 CMCF for Concerts in t he 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 Li quid Waste Contingency and $250.00 or $1,250 can be appropriated from the Solid Waste Board of Directors September 9 , 2013 Page 3 of 3 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 September 9 , 2013 Bo ard of Directors study session at District headquarters and on District’s website. Alternative Actions 1. Direct staff to report back with more information Attachments A: Memo from District Counsel, dated June 27, 2013 B: Gift of Public Funds Determination Chart C: Request for Sponsorship from Costa Mesa Community Foundation LAW OFFICES OF HARPER & BURNS LLP A LIMITED LIABILITY PARTNERSHIP INCLUDING A PROFESS IONAL 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. Burns *A PROFESSIONAL CORPORATION arburns@harperburns.com To: Honorable President and Board of Directors From: District Counsel Date: June 27, 2013 Re: Gift of Public Funds / Expenditures for a Prope r Public Purpose ______________________________________________________________________________ Article XVI, Section 6 of the Cal Constitution prov ides 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 pur pose of the donor agency. In Golden Gate Bridge and Highway District et al. v. Luehring et a l. (1970) 4 Cal.App.3d 204, the Court held that a bridge district that collected tolls could n ot 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 prope rty to a park and recreation district but was required to sell that property for full and fair co nsideration. (46 Ops.Cal.Atty.Gen. 138.) Our sanitary district powers include the power to p lan 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 st ate law. (HSC § 6521.) We are also given the power to do any act necessary or proper to the comp lete exercise and effect of our powers (incidental powers). (HSC § 6522) Using that autho rity, we have engaged in recycling and waste reduction, as well as FOG reduction programs. We h ave in the past provided similar sponsorships of programs that advanced our public p urposes. 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 judgm ent has a reasonable basis. C ONCLUSION 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 se rve. After we identify that purpose, the Board needs to make a determination that a public purpose is being served by articulating how the Harper & Burns LLP | 453 South Glassell Street, Orange, California 92866 | Telephone (714) 771-7728 | Facsimile (714) 744-3350 | www.harperburns.com Costa Mesa Sanitary District Gift of Public Funds / Expenditures for a Proper Pu blic Purpose June 27, 2013 Page 2 expenditure advances that purpose. The Board’s jud gment should not thereafter be disturbed by the courts if its judgment on the matter had a reas onable 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 B oard meeting. Only Board approval will entitle the decision to judicial deference. In fac t, 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 defens e to personal liability. (Mines v. Del Valle (1927) 201 Cal. 273.) Respectfully submitted, Alan R. Burns District Counsel cc: General Manager-District Clerk Treasurer GIFT OF PUBLIC FUNDS DETERMINATION CHART  Does the request serve a District purpose? NO : Gift of public funds YES : IDENTIFY – What st atutory purpose might be served (s ewer system, grease reduction, roots, divesting waste from landfill, recycling, other )?  If a statutory purpose is not served, what incidental purpose might be served? NO NE : Gift of public funds IDENTIFY  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?