To the Charter
main IndexSan Fernando Homeowners
pageSec. 600. Creation of Proprietary Departments and Boards.
Sec. 601. Departmental Purposes.
Sec. 602. Possession, Management and Control of Assets.
Sec. 603. Control of Departmental Funds.
Sec. 604. General Managers.
Sec. 605. Power to Grant Franchises, Concessions, Permits and Licenses and Enter Into
Leases.
Sec. 606. Process for Granting Franchises, Permits, Licenses and Entering Into Leases.
Sec. 607. Limitations on Franchises, Concessions, Permits, Licenses and Leases.
Sec. 608. Harbor and Airport Regulation of Public Service and Public Utilities.
Sec. 609. Revenue Bonds and Other Obligations.
Sec. 610. Debt Accountability and Capital Improvement Plan.
DEPARTMENT OF AIRPORTS
Sec. 630. Board Composition.
Sec. 631. Possession, Management and Control of Airport Assets.
Sec. 632. Powers and Duties of the Board.
Sec. 633. Powers and Duties of the General Manager.
Sec. 634. Limitations upon Permits and Licenses.
Sec. 635. Airport Revenue Fund.
Sec. 636. Airport Police.
HARBOR DEPARTMENT
Sec. 650. Board Composition.
Sec. 651. Possession, Management and Control of the Harbor Assets.
Sec. 652. Powers and Duties of the Board.
Sec. 653. Rates, Rules and Regulations.
Sec. 654. Limitations on Franchises, Permits, Licenses or Leases.
Sec. 655. Powers and Duties of the General Manager.
Sec. 656. Harbor Revenue Fund.
Sec. 657. Port Police.
DEPARTMENT OF WATER AND POWER
Sec. 670. Board Composition.
Sec. 671. The Los Angeles River.
Sec. 672. Possession, Management and Control of Water and Power Assets.
Sec. 673. Water and Water Rights.
Sec. 674. Power Contracts.
Sec. 675. Powers and Duties of the Board. Rules and Regulations.
Sec. 676. Rate Setting.
Sec. 677. Sale or Exchange of Water and Power.
Sec. 678. Powers and Duties of the General Manager.
Sec. 679. Water and Power Revenue Funds.
Sec. 680. Other Enterprises.
Sec. 681. Division of Departmental Functions.
Sec. 681. Division of Departmental Functions.
To the Charter
main Index
Sec. 600. Creation of Proprietary Departments and Boards.
(a) Departments Created . The following departments, which shall be known as the Proprietary Departments, are created:
Airports Harbor Water and Power
(b) Head of Department . Each Proprietary Department shall be under the control and management of a board of commissioners that shall be the head of the department.
(c) Applicability . Each Proprietary Department shall be governed by the following:
(1) provisions specific to each department set forth in this Article;
(2) these General Provisions for Proprietary Departments;
(3) the General Provisions for Departments contained in Article V, to the extent not inconsistent with this Article; and
(4) other provisions of the Charter applicable to departments and boards to the extent not inconsistent with this Article. Return to index
Sec. 601. Departmental Purposes.. The boards and general managers shall operate the Proprietary Departments for the following purposes, which shall be known as the Departmental Purposes:
Airports: In connection with, or for the promotion and accommodation of air commerce and air navigation.
Harbor: In connection with, or for the promotion and accommodation of maritime commerce, navigation, and fishery. Water and Power: In connection with, or for the production and delivery of water and electric power, and for the promotion of the conservation of water and power resources. Return to index
Sec. 602. Possession, Management and Control of Assets.. The board of each Proprietary Department shall have possession, management and control of all property and rights of every kind whatsoever:
(a) conferred upon the department by the Charter;
(b) purchased with funds under its control; or
(c) received through ordinance; or with approval of the board, through other action of the Council or from any other source, if consistent with Departmental Purposes. Return to index
Sec. 603. Control of Departmental Funds..
(a) Special Funds. Each Proprietary Department shall have one or more special funds including accounts or sub accounts for the purpose of segregating its revenues from other money of the City.
(b) Expenditures. The board of each Proprietary Department shall have control over its special funds, consistent with other provisions of the Charter. For Departmental Purposes, a board shall have the power to appropriate and expend all money in the department' s special revenue funds and of all money derived from the sale of bonds of the department. Return to index
(a) Appointing Authority. The board of each Proprietary Department shall appoint the general manager subject to confirmation by the Mayor and Council, and shall remove the general manager subject to confirmation by the Mayor. A general manager removed pursuant to the provisions of this section may appeal the removal to the Council in the manner provided in Section 508( e).
(b) Annual Review. The board of each Proprietary Department shall evaluate its general manager at least annually and shall set or adjust the compensation of the general manager within guidelines established by Council, after recommendations concerning those guidelines have been made to the Council by the Director of the Office of Administrative and Research Services. The board shall forward a copy of its performance evaluation and salary determination to the Mayor and Council. (c) Powers and Duties. The powers and duties of general managers contained in Section 509 shall apply to general managers of the Proprietary Departments. Additionally, the board of each Proprietary Department may authorize its general manager to contract on behalf of the department where the contract does not involve payment or receipt of money or consideration reasonably valued in excess of a monetary limit provided by ordinance. Return to index
Sec. 605. Power to Grant Franchises, Concessions, Permits and Licenses and Enter Into Leases.
(a) For Departmental Purposes. Subject to any limitations imposed upon a specific proprietary board in this Article, each board shall have the power to grant and set the terms and conditions for any franchise, concession , permit, license, or lease concerning any property under its control that will further Departmental Purposes or anything incidental to those purposes and, with respect to the Harbor Department, will not be inconsistent with any trust upon lands held by the City.
(b) For Non- Departmental Purposes. The board of each Proprietary Department shall have the power to grant a license or to enter into a lease concerning property under its control for purposes other than Departmental Purposes, if the board finds in writing that:
(1) the property to be licensed or leased is not presently needed for Departmental Purposes;
(2) the grant of the license or lease will not interfere with Departmental Purposes; and
(3) with respect to the Harbor Department, the license or lease is not inconsistent with any trust upon lands held by the City. Return to index
Sec. 606. Process for Granting Franchises, Permits, Licenses and Entering Into Leases. Board action granting franchises, concessions, permits and licenses or approving leases shall be taken by order or resolution. If the board' s order or resolution grants a franchise, permit or license or approves a lease for a term greater than five years, it shall be submitted to Council for its approval or disapproval. The Council may, by ordinance, further define what constitutes a term of more than five years. Unless Council takes action disapproving the franchise, permit, license or lease within 30 days after submission of it to Council, the franchise, permit, license or lease shall be deemed approved. If Council does not approve the franchise, permit, license or lease, Council shall return it to the originating board for reconsideration and resubmission. Any order or resolution granting a franchise for a term of more than five years shall be published once in the same manner as ordinances of the City and shall take effect 30 days after publication. Return to index
Sec. 607. Limitations on Franchises, Concessions, Permits, Licenses and Leases. Franchises, concessions, permits, licenses and leases shall be subject to further limitations specified in this Article for each Proprietary Department and the following:
(a) Length . The term shall not exceed 30 years or the term specified by applicable federal or state law, whichever is less. If Council makes a finding that a term longer than 30 years would be in the best interest of the City, Council may, by a two- thirds vote, subject to Mayoral veto, or three- fourths vote over the veto of the Mayor, authorize a term up to 50 years, or the maximum period allowed by any federal or state law, whichever is less.
(b) Compensation Adjustments . Every franchise, concession, permit, license, or lease shall include a procedure to adjust the compensation periodically but in no case shall the period between adjustments exceed five years. Return to index
Sec. 608. Harbor and Airport Regulation of Public Service and Public Utilities. To the extent not preempted by federal or state law, the Board of Airport Commissioners and Board of Harbor Commissioners have the power to:
(a) regulate and control all public service and public utilities operated in connection with Departmental Purposes;
(b) to fix the proper franchise or license fees to be paid to the department by any public service or utility; and
(c) to fix and regulate the rates, tolls and charges to be charged and collected for services furnished by any public service or utility.
The board shall have the right to have reasonable access to and to examine all records showing the transactions, and financial condition of the operators of a public service or utility and to require reports from the operators as the board may prescribe. The amounts of the franchise or license fees to be paid to the department by any operator of a public service or utility, and the rates, tolls and charges to be charged and collected for services furnished or supplied by a public service or utility shall be fixed by the board by order, subject to approval or modification by the Council by ordinance. Return to index
Sec. 609. Revenue Bonds and Other Obligations.
(a) Power to Issue Debt. Each Proprietary Department shall have the power to borrow money and to issue bonds, refunding bonds, notes and other evidences of indebtedness (collectively referred to in this section as "Revenue Bonds") for any lawful purpose relating to the department payable from the revenues of the department and from any other money lawfully available to the department or under its control, in the form and manner approved by the board of the department. The Council shall adopt procedural ordinance( s) (each a "Procedural Ordinance") which shall set forth the procedures under which Revenue Bonds may be issued. The Procedural Ordinance( s) shall require that a resolution of the board authorizing the issuance of Revenue Bonds be transmitted to the Council and Mayor for their approval or disapproval in the manner set forth in the Procedural Ordinance( s).
(b) No Obligation of the General Revenues of the City. No Revenue Bond issued or incurred by any department under this section shall constitute or evidence an indebtedness of the City or a lien or charge on any property or the general revenues of the City, but shall constitute and evidence an obligation of the applicable department payable only from the specified revenues and other money of the applicable department and the face of each Revenue Bond shall contain a legend to this effect.
(c) Payment of Revenue Bonds. As long as any Revenue Bonds issued or incurred under this section and payable out of all or a portion of the revenue of a department, shall be outstanding and unpaid, the board of the department shall fix rates for service from the municipal works to which that revenue pertains. It shall collect charges to provide revenue which, together with the other available funds of the department, shall be at least sufficient to pay, as the same shall become due, the principal and interest on all Revenue Bonds so outstanding payable out of revenue, including premiums, if any, due upon the redemption of any of the Revenue Bonds, in addition to paying, as it shall become due, the necessary expenses of operating and maintaining the works, and all other obligations and indebtedness payable out of the revenue of the department. If at any time during the life of Revenue Bonds issued under this section, the Council is required to review any rates adopted by a board, the Council shall approve rates in an amount sufficient to meet all the revenue requirements of this section.
(d) Competitive Bidding or Private Sale. Revenue Bonds shall be sold pursuant to a competitive bidding process; however, Revenue Bonds may be sold by private sale or in any other manner acceptable to the department and the Council as authorized by a Procedural Ordinance, subject to the following conditions:
(1) The board of a department has authorized the sale of Revenue Bonds pursuant to private sale after written recommendation of the chief financial officer of the department stating the reasons why a private sale will benefit the department.
(2) Council, after receiving a report of the Director of the Office of Research and Administrative Services, has approved the private sale.
(3) Council has been provided an opportunity, as set forth in a Procedural Ordinance, to disapprove the selection by a department of the underwriting firm( s) for the private sale of Revenue Bonds.
(e) Prohibition of Underwriter Gifts and Political Contributions.
(1) No underwriting firm which, within the prior 12 months, made one or more gifts totaling fifty dollars ($ 50) or more, or one or more political contributions totaling one hundred dollars ($ 100) or more, to the Mayor, the City Attorney, any member of the Council, any member of the board of the department whose bonds are the subject of the sale, or any other City official having the authority to make or participate in making decisions concerning the sale, shall be selected by the Council or by a department as the underwriter for a sale of Revenue Bonds where the selection of the underwriting firm is made on a basis other than by competitive bidding (referred to hereafter as "noncompetitive sale"). An underwriting firm seeking selection shall cause one of its officers to certify under oath that no such gifts or contributions were made. That certification shall be filed with the City Clerk prior to the date on which a selection is made. If the selected underwriting firm made any of the gifts or contributions specified above, but the certification was nevertheless made, the underwriting firm and any other person responsible for the error in the certification shall be subject to the penalties provided for violation of Section 470.
(2) No underwriting firm selected as the underwriter for a noncompetitive sale of Revenue Bonds shall make one or more gifts totaling fifty dollars ($ 50) or more, or one or more political contributions totaling one hundred dollars ($ 100) or more, to any official referenced in subsection (e)( 1) during the 12 months after being so selected. Any person violating the provisions of this subsection shall be subject to the penalties provided for violations of Section 470.
(3) A gift or contribution shall be considered as having been made by an underwriting firm if that gift or contribution was made by the firm itself; by any other business entity related to the firm as a parent, subsidiary or other related business entity; by any political action committee controlled or primarily financed by the firm or by a business entity related to the firm as a parent, subsidiary or other related business entity; by the president, chairperson of the board, chief executive officer, or chief operating officer of the firm; by any vice president, assistant vice president or managing director employed in the public finance unit of the firm; by any other employee of the firm who communicates with one or more City officers or employees for the purpose of influencing the City' s selection of an underwriter for a particular bond issue; or by any person owning a 10% or greater investment in the firm.
(4) A contribution shall be considered as having been made to any of the officials referenced in subsection (e)( 1) if it is made to the official or to any controlled committee of the official.
(5) Any term used herein which is defined in the California Political Reform Act of 1974, as amended, or in the regulations of the California Fair Political Practices Commission, as amended, shall have the meaning set forth in those provisions.
(6) No provision of subsection (e) shall require any person to do or refrain from doing any act which would violate federal law.
(f) Investment of Proceeds. Proceeds of the Revenue Bonds may be invested in those obligations set forth in the applicable financing documents, if those obligations are authorized for the investment of money of the City, as provided in a Procedural Ordinance .
(g) Effect of Section on Issuance of Bonds.
(1) Complete Authority to Issue Bonds . This section and the Procedural Ordinance shall be complete authority for the issuance of Proprietary Department Revenue Bonds. No action or proceeding other than those required by this section or the Procedural Ordinance shall be necessary for the valid authorization and issuance of the Revenue Bonds.
(2) No Council Veto . After the Council and Mayor approve the issuance of Revenue Bonds for a department as described in subsection (a), and subject to Council disapproval of a department' s selected underwriter for a noncompetitive sale as provided in subsection (d), the issuance of Revenue Bonds for a Proprietary Department shall not be subject to any further Council review including the veto provided in Section 245.
(3) Validity of Revenue Bonds . The validity of Revenue Bonds reciting that they have been issued pursuant to this section shall not be affected by any provision or limitation contained in any other section of the Charter. Any required signatures to the Revenue Bonds issued pursuant to this section may be by facsimile or by autograph. Charter Sections 146, 146.1, 229, 229.1 and 239 existing on June 1, 1996 [Note theses are old charter sections] shall remain in full force and effect after the adoption of this section until the Council has adopted the Procedural Ordinance( s) provided for in this section.(4) Section Applies Only to Proprietary Revenue Bonds. The provisions of this section apply only to Revenue Bonds issued by Proprietary Departments under authority of this section. Return to index
Sec. 610. Debt Accountability and Capital Improvement Plan. Every two years, in conjunction with submittal of its annual budget, each Proprietary Department shall submit a debt accountability and major capital improvement plan to the Mayor, Council and Controller. Return to index
Sec. 630. Board Composition. The Board of Airport Commissioners shall consist of seven members appointed and removed as provided in Section 502. At least one member shall reside within the area surrounding Los Angeles International Airport and at least one member shall reside within the area surrounding Van Nuys Airport, as those areas are defined by ordinance. Return to index
Sec. 631. Possession, Management and Control of Airport Assets. The Board of Airport Commissioners shall have the possession, management and control of all airports, airport sites and all equipment, accommodations and facilities for aerial navigation, flight, instruction and commerce belonging to the City. The lands, property, facilities, and interests therein, under the management, supervision and control of the board shall be known as the Airport Assets. Return to index
Sec. 632. Powers and Duties of the Board. The board shall have the power and duty to:
(a) Rates and Charges. Fix and collect rates and charges for the use of the Airport Assets and any other service provided by the department.
(b) Rules and Regulations. Subject to the powers of the United States respecting commerce, make and enforce all necessary rules and regulations governing the use and control of City owned or controlled airports located inside and outside of the City and the use of airways and waterways proximate to these airports incident to aerial navigation. Regulations adopted by the board shall be approved by ordinance that shall prescribe the penalties for the violation of these rules and regulations. These rules and regulations may include, but are not limited to, the following subjects:
(1) the ascent, landing, mooring, movement, maintenance, operation or use of all apparatus for aerial navigation and flight, or convenient or necessary in connection with those operations; and
(2) the design, construction, maintenance, use, condition and operation of any utility, machine, building, structure or improvement on any airport, and control of excavation, obstructions and traffic on or in the airports.
(c) Development of the Airports. Purchase, lease, acquire, condemn, design, erect, maintain, improve, repair and operate all property, improvements, utilities, equipment, supplies or facilities as it may deem necessary or convenient for Departmental Purposes. The power of condemnation shall only be exercised with approval of the Council. Return to index
Sec. 633. Powers and Duties of the General Manager. In addition to those powers and duties prescribed in Section 604, the general manager of the Department of Airports shall have the power and duty to:
(a) enforce all orders, rules and regulations adopted by the board;
(b) supervise and manage the design, construction, maintenance and operation of all work or improvements authorized or ordered by the board;
(c) designate and assign space for the use of aircraft at the established rates or charges and subject to the rules and regulations of the department;
(d) designate and assign space in any warehouse, shop, field, runway, hangar or like facility at the established rates or charges and subject to the rules and regulations of the department;
(e) revoke any assignment made under subsection (c) or (d) of this section, in accordance with Section 634( b); and
(f) carry out all powers and duties of the department delegated by the board. Return to index
Sec. 634. Limitations upon Permits and Licenses. In addition to the limitations set forth in Section 607, permits or licenses shall be subject to the following:
(a) Reservation for Departmental Purposes. Every assignment of space shall reserve to the department the right to use the space or facility for Departmental Purposes when the space is not required for the use of the grantee.
(b) Revocation Upon Notice. Every assignment of space shall be revocable without compensation to the grantee, upon notice.
(c) Common Use Requirement. Every assignment of space shall include a provision that use of airport facilities shall be in common with others, but only to the extent necessary to exercise the rights granted by the permit or license. Return to index
Sec. 635. Airport Revenue Fund.
(a) Creation of Fund. All fees, charges, rentals and revenue from every source collected by the Department of Airports in connection with its possession, management and control of the Airport Assets shall be deposited in the City Treasury to the credit of the Airport Revenue Fund. However, there shall be excluded from the Airport Revenue Fund any revenues received or to be received for the payment of any special purpose indebtedness of the Department payable solely out of the monies received or collected by the Department for the use or operation of special purpose facilities. This fund shall be exempt from the end of year transfer provisions of Section 344.
The Board may create for each airport, heliport and related facility operated by the Department, one or more separate revenue and expense accounts within the Airport Revenue Fund. The Board may place in said account all or a portion of the revenues, income and expenses derived from or allocated to one or more airports owned, operated or controlled by the Department. If separate accounts are created in the Airport Revenue Fund, the Board may create corresponding separate accounts in the Maintenance and Operation Reserve Fund. With respect to one or more airports, the Board may choose to fund Maintenance and Operation Reserve Fund and to pay debt service and maintenance and operations expenses attributable to said airport or airports solely from the monies placed in a specified account or accounts in the Airport Revenue Fund or may choose to pay such amounts and expenses from any monies held in the Airport Revenue Fund or in any account or sub account thereof, all in such manner as the Board shall determine. Notwithstanding anything to the contrary herein, if separate accounts are created in the Airport Revenue Fund and/ or Maintenance and Operation Reserve Fund, the Board shall have the power to direct that such monies can be used solely for a specified purpose related to the airport, heliport and related facility from which such monies are derived or to which such monies have been allocated. The implementation or subsequent modification of any of the foregoing provisions of this paragraph shall be subject to approval by ordinance.
(b) Use of Funds. The money in the Airport Revenue Fund may not be appropriated or expended for any purpose except the following:
(1) Operation and Maintenance . For the necessary expenses of operating the Department of Airports, including the operation, promotion and maintenance of the Airport Assets for Departmental Purposes.
(2) Development of Assets . For the acquisition, construction, completion and maintenance of airport improvements, works, utilities, facilities, services and aircraft for Departmental Purposes, and for the acquisition or taking by purchase, lease, condemnation or otherwise of any property, real or personal, or other interest necessary or convenient for Departmental Purposes.
(3) Payment of Debt . For the payment of the principal and interest of bonds issued by the department or by the City for Departmental Purposes.
(4) Pension Contributions . For defraying the expenses of any pension or retirement system applicable to the employees of the department.(5) Reimbursements. For reimbursement to another department or office of the City on account of services rendered, or materials, supplies or equipment furnished to support Departmental Purposes.
(6) Discretionary Transfer to General Fund . For transfer to the General Fund of money determined by the board to be surplus, but only to the extent not inconsistent with federal or state law, regulation or contractual obligations. Return to index
Sec. 636. Airport Police. The Airport Police shall remain under the independent and autonomous control of the Department of Airports. Return to index
Sec. 650. Board Composition. The Board of Harbor Commissioners shall consist of five members appointed and removed as provided in Section 502. The board shall include at least one member who resides within the area surrounding the Harbor District, as that area is defined by ordinance Return to index
Sec. 651. Possession, Management and Control of the Harbor Assets.
(a) The Board of Harbor Commissioners shall have the possession, management and control of all navigable waters and all tidelands and submerged lands, whether filled or unfilled, situated below the line of mean high tide northerly and easterly of the United States government breakwater at Los Angeles Harbor and within the limits of the City of Los Angeles; and all harbor and port improvements, works, utilities, facilities and watercraft owned, controlled or operated by the department, as well as those properties referred to in Section 602( b) and (c).
The lands and waters, and interests therein, under the possession, management and control of the Board of Harbor Commissioners shall be known as the Harbor District. The Harbor District and all harbor and port improvements, works, utilities, facilities and watercraft owned, controlled, or operated by the department shall be known as the Harbor Assets.
(b) Prohibition of Sale. The City of Los Angeles and the Harbor Department shall not grant, sell, convey, alienate, transfer or otherwise dispose of any of the right, title or interest of the City in and to the tidelands and submerged lands of the Harbor District, or any part thereof; except that grants of these lands may be made to the State of California or to the United States for public purposes, when approved by a majority vote of the registered voters of the City voting upon the question.
(c) Public Use of Water Frontage.
(1) Reserved Space. Not less than ten thousand feet of the water frontage of Los Angeles Harbor, linear measurement, measured along the United States harbor lines, together with the necessary coterminous and adjacent tidelands and submerged lands as may be determined by the board and approved by the Council by ordinance, owned or controlled by the City, are hereby forever reserved for public use to be improved, controlled, maintained and operated by the City.
(2) Included Public Uses. The following uses are considered consistent with the public use requirement of subsection (c)( 1) above: (A) The assignment of berths or landings for the use of vessels at any wharf located in the reserved portion of the Harbor District if the assignment reserves to the City the right to use the wharf or other facility when the assigned space is not required for the use of the permitee
or licensee. (B) The assignment of space in any warehouse, elevator, or like facility operated by the City, located in the Harbor District at the established rates for the use of these facilities. Return to index
Sec. 652. Powers and Duties of the Board.
The board shall have the power and duty to:
(a) Rules and Regulations. Make and enforce all necessary rules and regulations governing the maintenance, operation and use of the Harbor District, and enforce penalties for the violation of those rules and regulations.
(b) Harbor Traffic. Regulate and control the piloting, anchoring, mooring, towing and docking of all vessels and watercraft in the Harbor District.
(c) Control Over Harbor Facilities. Regulate and control the construction, maintenance, operation and use of any railroad, wharf, warehouse or other facility, utility, structure or improvement used in connection with the Harbor District.
(d) Dredging. Regulate and control all dredging, filling and excavating in the Harbor District.
(e) Rates. Fix and collect rates and charges for the use of the Harbor Assets, pilotage and towage, and any other service provided by the department.
(f) Development of the Harbor District. Acquire, provide for, construct, maintain and operate all improvements, utilities, structures, watercraft, facilities and services for Departmental Purposes and to acquire and take, by purchase, lease, condemnation or otherwise, in the name of the City, any property, real or personal, or any interest therein, and to designate the site for any public buildings, structures or facilities in the Harbor District. The power of condemnation shall only be exercised with the approval of Council. Return to index
Sec. 653. Rates, Rules and Regulations.
(a) Council Approval. The board, by order, shall make and enforce rules and regulations of general application, and fix, regulate and collect rates and charges. These orders must be approved by the Council by ordinance before they become effective. (b) Temporary Rules or Rates. Notwithstanding subsection (a), the board shall have the power to enact, suspend or modify any rule, regulation, rate or charge, without Council approval, for a period not to exceed 90 days.
(c) Penalties. The Council shall, by ordinance, prescribe penalties for violation of the provisions of a rule or regulation adopted under this section. The Council may provide that violation constitutes a misdemeanor, and may declare penalties that include a fine not to exceed the maximum amount provided by the general laws of the state or imprisonment not exceeding six months or both.Return to index
Sec. 654. Limitations on Franchises, Permits, Licenses or Leases. In addition to the limitations set forth in Section 607, franchises, permits, licenses or leases shall be subject to the following:
(a) Maximum Use of Water Frontage .
(1) Board Approval Required . Unless approved by a four- fifths vote of the board and approved by a two- thirds vote of Council, no franchise, permit, license or lease shall be made to any one person, firm or corporation to use in excess of 3,000 feet of the water frontage, linear measurement, measured along United States harbor lines of the Harbor District.
(2) Automatic Termination for Violation. No assignment, transfer, gift, hypothecation, or grant of control of a franchise, permit, license, or lease shall be valid for any purpose unless first approved by the board. Any franchise, permit, license or lease shall be terminated by operation of law if the holder of it attempts to assign, transfer, sublease, give, hypothecate or grant it and the result would be any usage by another person, firm or corporation of more than the 3,000 foot limitation described in subsection (a)( 1).
(b) Prohibition on Leasing Harbor Property as Excess . No wharf, dock, pier, mole or transit shed owned or controlled by the City shall ever be leased for non- departmental purposes under Section 605( b).
(c) Revocation Upon Notice . Every assignment of a berth or landing, or of space in any warehouse, elevator or like facility operated by the City, or grant of a revocable permit shall be revocable by the general manager, without compensation to the grantee or lessee, upon notice.Return to index
Sec. 655. Powers and Duties of the General Manager. In addition to those powers and duties described in Section 604, the general manager of the Harbor Department shall have the power and duty to: (a) enforce all orders, rules and regulations adopted by the board relating to regulation, operation or control of the Harbor District;
(b) supervise and manage the design, construction, maintenance and operation of all work or improvements authorized or ordered by the board;
(c) designate and assign berths or landings for the use of vessels at any wharf or like facility at the established rates or charges, subject to the rules and regulations of the department;
(d) designate and assign space in any warehouse, elevator or similar facility at the established rates or charges and subject to the rules and regulations of the department;
(e) subject to approval of the board, grant revocable permits to use the lands and waters, or interests therein in the Harbor District, or any structure or appurtenance thereto, for any and all purposes which shall not interfere with commerce or navigation, and are not inconsistent with any trusts upon which the land may be held by the City;
(f) revoke any assignment made under subsection (c) , (d), or (e) of this section in accordance with Section 654( c); and
(g) carry out all powers and duties of the department delegated by the board. Return to index
Sec. 656. Harbor Revenue Fund.
(a) Creation of Fund. All fees, charges, rentals and revenue from every source collected by the Harbor Department in connection with its possession, management and control of the Harbor District and Harbor Assets, shall be deposited in the City Treasury to the credit of the Harbor Revenue Fund.
(b) Use of Funds. The money in the Harbor Revenue Fund shall not be appropriated or used for any purposes except the following:
(1) Operation and Maintenance. For the necessary expenses of operating the Harbor Department, including the operation, promotion and maintenance of the Harbor Assets for Departmental Purposes.
(2) Development of Assets. For the acquisition, construction, completion and maintenance of Harbor Assets for Departmental Purposes, and for the acquisition or taking by purchase, lease, condemnation or otherwise of property, real or personal, or other interest necessary or convenient for Departmental Purposes.(3) Payment of Bonds. For the payment of the principal and interest of bonds issued by the department or by the City for Departmental Purposes.
(4) Pension Contributions. For defraying the expenses of any pension or retirement system applicable to the employees of the department.
(5) Reimbursements. For reimbursements to another department or office of the City on account of services rendered, or materials, supplies or equipment furnished to support Departmental Purposes.Return to index
Sec. 657. Port Police. The Los Angeles Port Police shall remain under the independent and autonomous control of the Harbor Department. Return to index
DEPARTMENT OF WATER AND POWER
Sec. 670. Board Composition. The Board of Water and Power Commissioners shall consist of five members appointed and removed as provided in Section 502.Return to index
Sec. 671. The Los Angeles River. The City of Los Angeles shall continue in the ownership and enjoyment of all the rights to the water of the Los Angeles River, vested in it and its predecessors, including the Pueblo of Los Angeles, and is hereby declared to have the full, free and exclusive right to all the water flowing in the river and also the exclusive ownership of, and the exclusive right to develop, economize, control, use and utilize all the water flowing beneath the surface in the bed of the river at any point from its sources to the intersection of the river with the southern boundary of the City. Return to index
Sec. 672. Possession, Management and Control of Water and Power Assets. The Board of Water and Power Commissioners shall have the possession, management and control of:
(a) Water and Water Rights, Lands, and Facilities. Whether situated inside or outside of the City or the State of California, all the water and water rights of the Los Angeles River, all other water or water rights of every nature and kind owned or controlled by the City, and all the lands, rights- of- way, sites, facilities and property used for the capture, transportation, distribution and delivery of water for the benefit of the City, its inhabitants and its customers. The water and water rights, lands, rights- of- way, sites, facilities and other interests of the City related to its water business under the possession, management and control of the board shall be known as the Water Assets.
(b) Electric Energy Rights, Lands and Facilities. All the electric energy rights, lands, rights- of- way, sites, facilities and property used for the generation, transportation, distribution and delivery of power for the benefit of the City, its inhabitants and its customers. The electric energy rights, lands, facilities and all other interests of the City related to its energy business under the possession, management and control of the board shall be known as the Power Assets. Return to index
Sec. 673. Water and Water Rights.
(a) Los Angeles River. The City shall not sell, lease or otherwise dispose of the City' s rights in the waters of the Los Angeles River, in whole or in part.
(b) Other Water and Water Rights. Except as provided in this Article, no other water or water rights owned or controlled by the City shall ever be sold, leased or disposed of, in whole or in part, without the assent of two- thirds of the registered voters of the City voting on the proposition, and no water shall ever be sold, supplied or distributed to any person or corporation other than to municipalities for resale, rental or disposal to consumers for their own use.
(c) Exceptions. To the extent authorized in Section 677, the prohibitions in subsection (b) shall not apply to the ordinary sale and distribution of water or reclaimed water to City inhabitants for their own use, the supply or distribution by the City of surplus water or reclaimed water outside the City, or the exchange of water with any public agency. Return to index
(a) Subject to approval by ordinance, the board shall have the power to contract with the United States or any of its agencies, any state or state agency, and any corporation, public or private, located inside or outside of the City or State of California:
(1) For the construction, ownership, operation, and maintenance of facilities for the generation, transformation, and transmission of electric energy, subject to the following: (A) Any contract entered into under this subsection may provide for a sharing of the use and benefits and of the capital charges and other obligations associated with the facilities. (B) The term of any contract entered into under this subsection is not subject to the term limitations specified in Section 607( a) and may extend over the useful life of the facilities constructed, purchased or developed.
(2) For the sale, purchase, exchange or pooling of electric energy or electric generating capacity.
(b) The board may renew, without Council approval, any contract with the United States existing as of December 12, 1940 concerning the delivery of electric energy to the City and the customers of the department from the Hoover Dam electric generating facility. Return to index
Sec. 675. Powers and Duties of the Board. Rules and Regulations. The board shall have the power and duty to make and enforce all necessary rules and regulations governing the construction, maintenance, operation, connection to and use of the Water and Power Assets for Departmental Purposes. (b) Rates and Charges. The board shall have the power and duty to:
(1) regulate and control the use, sale and distribution of water, reclaimed water, surplus water, electric energy and surplus electric energy owned or controlled by the City;
(2) grant permits for connections with the water or electric works of the City and fix the charges for these connections;
(3) fix the rates to be charged for water, reclaimed water, surplus water, electric energy or surplus electric energy for use inside or outside the City in accordance with Section 676; and
(4) prescribe the time and the manner of payment for the collection of the rates and charges for water and electric energy.
(c) Development of the Water and Power Assets. The board shall have the power and duty to acquire, provide for, construct, extend, maintain and operate all improvements, utilities, structures, facilities and services as it may deem necessary or convenient for Departmental Purposes.
(d) Real Estate Interests.
(1) The board shall have the power and duty to acquire and take, by purchase, lease, condemnation or otherwise, in the name of the City, any and all property, real or personal, or any interest therein, situated inside or outside the City or State of California, that may be necessary or convenient for Departmental Purposes. The power of condemnation shall only be exercised with the approval of Council.
(2) Subject to the water and water rights of the City set forth in Section 673, no real property or any rights or interests in real property held by the board shall be sold, leased or otherwise disposed of, or in any manner withdrawn from its control, unless by written instrument authorized by the board, and approved by the Council.
(e) Incidental Authority. The board also shall also have the power to:
(1) enter into agreements with department customers to engage in co- generation projects;
(2) finance the sale and use of systems, equipment, devices or materials designed to conserve the use of water or electric energy;
(3) purchase, sell or exchange by- products of electrical power generation such as steam, hot water, chilled water or other thermal energy products;
(4) advertise its products and services to increase any of its businesses; and
(5) dispose, from time to time, of personal property, that is no longer necessary or suitable for the use of the Department. Return to index
(a) Rate Setting Procedure. Subject to approval by ordinance, rates for water, reclaimed water, surplus water, electric energy and surplus energy shall be fixed by the board from time to time as necessary. Except as otherwise provided in the Charter, rates shall be of uniform operation for customers of similar circumstances throughout the City, as near as may be, and shall be fair and reasonable, taking into consideration, among other things:
(1) the nature of the uses;
(2) the quantity supplied; and
(3) the value of the service.
The rates inside the City may be less, but not greater, than the rates outside the City for the same or similar uses.
(b) Individual Power Contracts. Rates for electric energy may be negotiated with individual customers, provided that these rates are established by binding contract, contribute to the financial stability of the electric works and are consistent with procedures established by ordinance. Return to index
Sec. 677. Sale or Exchange of Water and Power. The board shall have the power:
(a) Surplus Water . To supply and distribute any surplus water owned or controlled by the City and not required for the use of consumers served by the City within its limits:
(1) to consumers outside the City for their own use; and
(2) to municipalities outside the City for municipal uses, or for resale, disposal or distribution to consumers within those municipalities, subject to the following: (A) Any contract for the supply or distribution of surplus water shall be subject to the paramount right of the City, at any time, to discontinue the contract, in whole or in part, and to take, hold and distribute, the surplus water for the use of the City and its inhabitants.
(B) Contracts for supplying surplus water by the City to other municipalities outside the City may be made by the board for periods not exceeding 15 years, and upon terms and conditions, set by the board and approved by ordinance. Any contract shall include the right to terminate the contract upon three years written notice to the municipality that the water supplied under the contract is required for the City and its inhabitants. (C) Prior to execution, the contract must be assented to by a majority of the registered voters of the City voting on the question at a regular or special election.
(b) Exchange of Water. To enter into contracts with any public agency for the exchange of water as long as the water exchanged is replaced in full to the City within a reasonable period set by the board.
(c) Reclaimed Water. To supply and distribute reclaimed water to consumers served by the City within its limits, to consumers outside the City for their use, and to public agencies outside of the City for public uses and for resale, disposal or distribution to consumers within the public agency' s jurisdiction.
(d) Surplus Energy. To supply and distribute or exchange any surplus electric energy, owned or controlled by the City and not required for the use of consumers served by the City within its limits, to any person or entity whether located inside or outside of the City. Return to index
Sec. 678. Powers and Duties of the General Manager. In addition to the powers described in Section 604, the general manager of the department shall have the power and duty to:
(a) enforce all orders, rules and regulations adopted by the board;
(b) supervise and manage the design, construction, maintenance and operation of all work or improvements authorized or ordered by the board; and
(c) carry out all powers and duties of the department delegated by the board. Return to index
Sec. 679. Water and Power Revenue Funds.
(a) Water Revenue Fund . All revenue from every source collected by the department in connection with its possession, management and control of the Water Assets of the City shall be deposited in the City Treasury to the credit of the Water Revenue Fund. (b) Power Revenue Fund . All revenue from every source collected by the department in connection with its possession, management and control of the Power Assets of the City shall be deposited in the City Treasury to the credit of the Power Revenue Fund.
(c) Use of Funds . The money in the Water Revenue Fund and Power Revenue Fund may not be appropriated, transferred or expended for any purposes except the following:
(1) Operation and Maintenance . For the necessary expenses of operating the department, including the operation, promotion and maintenance of the Water and Power Assets for Departmental Purposes.
(2) Retirement of Indebtedness . For the payment of the principal and interest, due or coming due during the fiscal year in which the revenues are received, or are to be received, upon outstanding notes, certificates or other evidences of indebtedness issued against revenues from the Water or Power Assets or bonds or other evidences of indebtedness of the department.
(3) Development of Assets . For the necessary expenses of constructing, extending and improving the Water or Power Assets, including the purchase or condemnation of lands, water rights and other property for Departmental Purposes.
(4) Reimbursements . For reimbursement to another department or office of the City on account of services rendered, or materials, supplies or equipment furnished to support Departmental Purposes.
(5) Promotion of Business. For the promotion of any of its products or services.
(6) Promotion of Conservation . For the development, or promotion or use of systems, equipment, devices or materials by department customers that conserve utilization of water, electric energy and related departmental services.
(7) Employee Benefits . For defraying the expenses of any pension or retirement system and health or other benefits applicable to the employees of the department.
(8) Bond Reserve Funds . For establishing and maintaining a reserve fund to insure the payment at maturity of the principal and interest on all bonds now outstanding or hereafter issued for Departmental Purposes and the money set aside and placed in these funds shall remain in the funds until expended and shall not be transferred to the Reserve Fund of the City.(9) General Fund Transfers . To be transferred to the City General Fund as provided in Section 344.Return to index
(a) Entry into Any Other Business. Notwithstanding any provision in the Charter to the contrary, the Council, upon making a finding that it is in the best interests of the City, may by ordinance authorize the department to engage in any lawful business enterprise that is in the best interests of the City' s inhabitants and that will not interfere with the department' s role as a provider of water and power to the City' s inhabitants.
(b) Entry into Public Utility Competition . Without limiting the provisions of subsection (a), the Council may by ordinance adopted by a two- thirds vote and approved by the Mayor, or passed by three- fourths vote of the Council over the veto of the Mayor, authorize the department to provide electricity service or any other service, which may be provided by another utility or direct competitor to any person or entity, whether situated inside or outside of the City or the State of California.
(c) Prohibition of Entry into Water Service Outside Service Area. Water service or products that would be provided outside the department' s retail service area are specifically excluded from the provisions of this section.
(d) No Limitation on Department. Nothing in this section limits any right, power or authority granted to the department or to the board elsewhere in the Charter. Return to index
Sec. 681. Division of Departmental Functions.
(a) Division. Notwithstanding any provision in the Charter to the contrary, the board shall have the power to divide the functions of the department into two divisions. A Division of Water Services shall carry out the Departmental Purposes associated with water and a Division of Electric Services shall carry out the Departmental Purposes associated with electric energy. Each division shall be directed by a general manager appointed, removed and evaluated, and vested with the same powers and duties provided in Sections 604 and 678.
(b) Consolidation. Upon the division of departmental functions provided in subsection (a), the board shall have the power to discontinue the divisions and consolidate the functions of the department under the direction of a single general manager.
Sec. 682. Health Benefits. The Board of Water and Power Commissioners may provide by order or resolution for health insurance and similar benefits to active employees and department retirees. The board shall determine eligibility and required contributions and other terms and conditions in its order or resolution establishing or modifying these benefits. Return to index
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