SECTIONS 38750-38759 - California Statutes

GOVERNMENT CODE

SECTION 38750-38759

38750. Any city which owns and operates a waterworks system, or any
part of such a system, may sell, lease, or otherwise transfer the
control or management of the system, or the portion thereof, to any
municipal water district which is engaged in supplying the
inhabitants of the city with water for domestic and general purposes,
if the city lies wholly within the boundaries of the district.

38751. If the legislative body of the city determines that it is
for the best interests of the city to sell, lease, or otherwise
transfer the control or management of its waterworks system, or
portion thereof, to such a municipal water district, by a four-fifths
vote of all its members, it shall pass an ordinance, authorizing the
sale, lease, or other transfer.

38752. The ordinance shall specify the price, the yearly or monthly
rental, or if the transfer and control of the waterworks system is
to be made upon terms, the ordinance shall briefly state the terms.

38753. The ordinance shall also state such conditions and
stipulations as the legislative body determines necessary to a proper
understanding of the transaction, and may refer to the proposed form
of contract for further particulars.

38754. The ordinance shall be published weekly for at least four
weeks in a newspaper published in the city, or if there is no such
newspaper it shall be posted in three public places in the city for
three weeks.

38755. The ordinance is subject to referendum in the same manner as
other ordinances.

38756. The sale, lease, or transfer on terms shall be for a
valuable consideration, which shall be agreed upon between the
legislative body of the city and the board of directors of the
municipal water district.

38757. The contract or deed shall be executed on behalf of the city
by its mayor.

38758. If the transaction is a sale, either for cash or after the
completion of installment payments, the deed conveys to the municipal
water district the full title to the property described.

38759. If an action or proceeding is brought in any court by the
city, or any taxpayer or other person on its behalf, or by any person
having an interest in the transaction, for the purpose of setting
the transfer aside or avoiding it, any judgment setting aside or
avoiding the transfer is void, unless it provides for the restoration
to the municipal water district of the consideration paid for the
waterworks. The municipal water district shall not be compelled to
surrender possession of the waterworks until the consideration is
restored.