CHAPTER 5. Sewer Revenue Bonds [4950. - 5072.]

Chapter 5 enacted by Stats. 1939, Ch. 60.

§§ 4950–5072 · 93 sections

1. ARTICLE 1. General Provisions and Definitions §§ 4950–4961 · 12 sections

   • § 4950 “Works,” as used in this chapter, includes any or all of the following facilities, including, but not limited to, necessary lands, rights-of-way, or other…
   • § 4951 “District,” as used in this chapter, includes city, county, city and county, or any municipal or public corporation or district which is authorized to acquire,…
   • § 4952 “Governing body,” as used in this chapter, means the governing body of the district.
   • § 4953 “Clerk,” as used in this chapter, means the clerk or secretary of the governing body or of the district.
   • § 4954 “Area,” as used in this chapter, means the area served, or proposed to be served, by the works, or proposed works.
   • § 4955 “Rates,” as used in this chapter, includes rates and charges.
   • § 4956 “Bonds,” as used in this chapter, means revenue bonds authorized by this chapter.
   • § 4957 “Treasurer,” as used in this chapter, means the treasurer of the district.
   • § 4958 “Owners of improved real property,” as used in this chapter, means persons who are recorded on the books of the assessor and tax collector as the owners of…
   • § 4959 The provisions of this chapter regarding a referendum shall be liberally construed to effect the objects of this chapter, and no irregularity or informality…
   • § 4960 This chapter is an additional and alternative method to those already provided for the acquisition, construction, extension, and operation of the works…
   • § 4961 If any section, subsection, sentence, clause, or phrase of this chapter, or the application thereof to any person or circumstance, is for any reason held…
2. ARTICLE 2. Resolution §§ 4965–4967 · 3 sections

   • § 4965 Before a district acquires or constructs any works under this chapter, its governing body shall adopt a resolution declaring its intention to do so.
   • § 4966 The resolution of intention shall contain all of the following: (a) A brief and general description of the works. If they are to be constructed, a reference to…
   • § 4967 The owner of property that may be benefited by the acquisition, construction, extension, or operation of the works referred to in this chapter may file with…
3. ARTICLE 3. Notice, Hearing, and Election §§ 4970–4979 · 8 sections

   • § 4970 The time set for the hearing shall be not less than twenty nor more than forty days after the adoption of the resolution.
   • § 4971 The governing body shall cause the resolution to be published twice in one or more newspapers published and circulated in the district. If no newspaper is…
   • § 4972 A copy of the resolution headed “Notice of Sewer Work,” in letters not less than one inch in height, shall be posted in the district along the entire length of…
   • § 4973 Both the posting and the publication shall be completed at least ten days before the time set for the hearing. Affidavits of publication and of posting shall…
   • § 4974 At the time set for the hearing, the governing body shall hear all persons or their representatives having any objections to the acquisition or construction of…
   • § 4975 If, before the conclusion of the hearing, a petition signed by not less than 15 percent of the owners or by not less than 15 percent of the registered voters…
   • § 4976 If called, the election shall be held and conducted, the votes received and canvassed, and the returns made, determined, and declared, so far as practicable,…
   • § 4979 If the proposal is not rejected at a referendum election, the governing body acquires jurisdiction to proceed.
4. ARTICLE 4. Bonds §§ 4985–4997 · 13 sections

   • § 4985 The cost of the acquisition or construction of the works for which bonds may be issued includes all of the following: (a) The cost of all property, rights,…
   • § 4986 Bonds issued and sold under this chapter shall be revenue bonds of the character and form known as “serials.” Each bond shall be entitled “sewer revenue bond,”…
   • § 4987 Each bond, except those of the last installment, or one of each annual installment, shall be in multiples of one hundred dollars, in such amount as the…
   • § 4988 The bonds shall bear interest, as the governing body shall determine, at a rate not to exceed 8 percent per annum, and shall, after the first principal…
   • § 4989 The governing body shall prescribe the form of the bonds, and provide that of the indebtedness represented thereby a part shall be payable each year after…
   • § 4990 The number of bonds to be paid each year need not be the same, and the governing body may fix maturities so that the number of bonds retired each year will, in…
   • § 4991 If the district is a city, the bonds shall be signed by the mayor if there is one; otherwise by the president or chairman of the governing body, and…
   • § 4992 In the ordinance authorizing the issuance of the bonds, provision may be made, but are not limited to provisions: (a) That all or part of the bonds are…
   • § 4993 If the proceeds of the bonds for any reason are less than the cost of the works, additional bonds may in like manner be issued and sold to provide for the…
   • § 4994 No error, defect, irregularity, informality, and no neglect or omission of any officer of any district in any proceedings under this chapter, that does not…
   • § 4995 Bonds may be made payable on a date subsequent to the time fixed for the collection of the second installment of general district taxes with which the first…
   • § 4996 An action to determine the validity of bonds may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil…
   • § 4997 In determining the amount of bonds to be issued, the legislative body may include: (a) All costs and estimated costs incidental to or connected with the…
5. ARTICLE 5. Powers §§ 5000–5022 · 23 sections

   • § 5000 Any district may acquire, construct, and operate works within or without its limits.
   • § 5001 It may acquire by gift, purchase, condemnation, or otherwise, all lands, rights of way, or other property necessary therefor.
   • § 5002 It may issue and sell bonds for the acquisition and construction of works.
   • § 5003 The governing body shall have supervision and control over the construction, acquisition, and operation of the works, and the collection of rates for their use.
   • § 5004 The governing body may take all steps and proceedings and make and enter into all contracts or agreements necessary, convenient, or incidental to the…
   • § 5005 It may employ engineers, architects, inspectors, superintendents, a manager, collectors, attorneys, and such other employees as in its judgment are necessary…
   • § 5006 The governing body shall establish rules and regulations for the use of the works, including all sewers and works connected therewith, as may be necessary or…
   • § 5007 The governing body shall provide that all public ways or public works damaged or destroyed in carrying out the provisions of this chapter shall be restored or…
   • § 5008 In the operation of the works, the district may do any or all of the following: (a) Sell, or otherwise dispose of any water, sewage effluent, fertilizer, or…
   • § 5009 Whenever any community in the district is provided with a sewerage system under this chapter the governing body having jurisdiction over that community shall…
   • § 5010 All works acquired or constructed under this chapter where the expense involved exceeds five hundred dollars, shall be done by contract which shall be awarded…
   • § 5011 The governing body shall comply with all the conditions and requirements of the Emergency Relief and Construction Act of 1932, respecting the employment of…
   • § 5012 Before awarding any contract for construction of works the governing body shall cause to be published a notice inviting sealed bids for doing it. The notice…
   • § 5013 All bids shall be accompanied by a certified check payable to the district for an amount that is not less than ten per cent of the aggregate of the bid. No bid…
   • § 5014 The bids shall be delivered to the clerk. The governing body shall, in open session, publicly open, examine, and declare them.
   • § 5015 The governing body may reject all bids if it deems this for the public good, and shall reject all bids other than the lowest regular responsible bidder, and…
   • § 5016 If the bids are rejected or if no bids are received, the governing body may readvertise for bids as in the first instance without further proceedings.
   • § 5017 If the successful bidder fails, neglects, or refuses for twenty days after written notice of the award has been mailed him to enter into the contract to…
   • § 5018 Each contractor shall, at the time of entering into the contract, execute a surety bond to the satisfaction and approval of the governing body in a sum not…
   • § 5019 The contract shall provide that the work shall be commenced within twenty days after the contractor has received written notice from the clerk that there is…
   • § 5020 At the time of entering into the contract the contractor shall execute, deliver, and file with the governing body a good and sufficient surety bond, in a sum…
   • § 5021 All provisions of the codes and general laws relating to notice and the foreclosure of such liens are applicable, but suit may only be brought on the bond…
   • § 5022 In all respects not otherwise provided for in this chapter the bond shall be in conformity with the requirements of the general law of the State regarding…
6. ARTICLE 6. Finances §§ 5025–5034 · 10 sections

   • § 5025 All necessary preliminary expenses incurred by the governing body in carrying out this chapter, including the making of surveys, plans, and estimates of costs…
   • § 5026 All compensation of employees, and all other expenses, incurred in carrying out the provisions of this chapter shall be paid solely from funds provided under…
   • § 5027 After reimbursement and repayment to the district of all amounts advanced for preliminary expenses, all money, other than premiums and accrued interest,…
   • § 5028 The money received from the collection of the rates, together with any other revenue derived from the operation of the works, shall be deposited in a bank by…
   • § 5029 In the ordinance for the issuance of bonds the governing body shall provide that the revenues derived from the operation of the works shall be used only for:…
   • § 5030 In its discretion the governing body may provide in the ordinance providing for the issuance of bonds that the management, maintenance, operation and repair…
   • § 5031 All money received for premium and accrued interest shall be paid into a fund for the payment of interest on the bonds and used for the purposes for which it…
   • § 5032 A district issuing bonds shall install and maintain a proper system of accounts, showing the amount of revenue received and its application. The district shall…
   • § 5033 The treasurer is custodian of the funds derived from income received from the works constructed or acquired under the provisions of this chapter.
   • § 5034 The treasurer shall give a proper surety bond for the faithful discharge of his duties as custodian, which bond shall be fixed and approved by the governing…
7. ARTICLE 7. Rates and Collection §§ 5040–5056 · 17 sections

   • § 5040 The governing body shall establish just and equitable rates for the use and maintenance of the works, to be paid by the person leasing or occupying the…
   • § 5041 The governing body shall establish rates that, beyond all reasonable doubt, will bring in sufficient money to meet the interest and principal on all…
   • § 5042 Whenever it appears that the rates are insufficient to provide enough money to pay the principal and interest, in addition to the operating expenses, and the…
   • § 5043 The governing body may establish variable rates for different classes of users, or for different parts of the area, where all or any portion of the sewage…
   • § 5044 However, the rates may only be imposed and collected from the users of all or any portion of such works as are constructed with money derived from the sale of…
   • § 5045 If the users of all or any portion of any works previously acquired and financed by other methods receive any additional benefits from the construction or…
   • § 5046 No rates shall be established until after a public hearing, at which all the users of the works and owners of property served or proposed to be served thereby…
   • § 5047 After introduction of the ordinance, resolution, or order fixing the rate, and before it is finally enacted, notice of the hearing, setting forth the proposed…
   • § 5048 After the hearing the ordinance, resolution, or order establishing rates, either as originally introduced or as modified and amended, shall be passed and put…
   • § 5049 A copy of the schedule of the rates shall be kept on file in the office of the clerk, and shall be open to inspection by any interested person.
   • § 5050 The rates for any class of users or property served may be extended to cover any additional premises thereafter served which fall within the same class,…
   • § 5051 Any change or readjustment of the rates shall be made in the same manner as the rates were originally established.
   • § 5052 If the rate is not paid when due, on the first day of each calendar month thereafter a penalty of ten per cent of the amount of the delinquent rate shall be…
   • § 5053 The rates and penalties may be collected in the following manner: (a) An action may be brought in the name of the district against the person who occupied the…
   • § 5054 The remedies specified for collecting and enforcing rates are cumulative and may be pursued alternatively or may be used consecutively when the governing body…
   • § 5055 Until the principal and interest of the bonds are fully paid any holder of any bond outstanding at any time may compel the use of any or all of the remedies…
   • § 5056 After rates are fixed pursuant to this article, any person may pay such rates under protest and bring an action against the governing body in the superior…
8. ARTICLE 8. Leases §§ 5060–5063 · 4 sections

   • § 5060 Any district owning or operating works may contract with one or more other cities, counties, sanitation districts, or sanitary districts for the use of the…
   • § 5061 The governing body of the district may by ordinance establish, change, and adjust rates for the service rendered in the lessee-district by the works, against…
   • § 5062 The necessary intercepting sewers and appurtenant works for connecting the works of the owner-district with the sewerage system of the lessee-district shall be…
   • § 5063 The income received by the owner-district under the contract shall, if so provided in the ordinance, be deemed to be a part of the revenue of the works. The…
9. ARTICLE 9. Annexation and Exclusion §§ 5070–5072 · 3 sections

   • § 5070 Territory which has become annexed to a district which has authorized the issuance of bonds pursuant to this chapter, and which territory shall use the works,…
   • § 5071 Territory which has been withdrawn from a district which has authorized the issuance of bonds pursuant to this chapter, and which territory continues to use…
   • § 5072 A city to which any territory has been annexed, whether or not said territory has been withdrawn from a district which has authorized the issuance of bonds…