SECTIONS 16601-16614 - California Statutes

PUBLIC UTILITIES CODE

SECTION 16601-16614

16601. Receipts from the operation of a public utility shall be
paid daily into the treasury of the district in a special fund set
aside for such public utility.

16602. The board may from time to time make appropriations from
individual public utility funds for the following purposes:
(a) The payment of operating expenses of the public utility and
all or such portion of the general salary and expense fund of the
district as the board determines is justly apportionable thereto.
(b) Repairs and reconstruction.
(c) Payment of interest and sinking fund on the bonds or
indebtedness incurred or assumed for acquisition, construction, or
completion of the public utility.
(d) Extensions and improvements.
(e) A reserve fund.

16603. Whenever a reserve fund exceeds one-half of the payment for
operating expenses in the preceding fiscal year, the board may
appropriate such excess to the general fund.

16604. The books of account of the district shall show all of the
following:
(a) The true and complete financial results of the ownership and
operation of each public utility.
(b) The actual cost of each public utility.
(c) All costs of maintenance, extension, and improvement, and all
operating expenses of every description.

16605. The accounts of the district shall be examined at least once
a year by an expert accountant, who shall report to the directors
the result of his examination. He shall be employed and selected in
such manner as the board directs, and shall receive for his services
such compensation as the board prescribes, to be paid out of the
income or revenues of the district.

16606. Every two years the board may, and upon petition of 15
percent of the electors of the district shall, employ a qualified
expert who shall with all due diligence examine and report upon the
following:
(a) The system of accounts kept by the district.
(b) All the contracts made and entered into by the board within
the two years immediately preceding.
(c) The management of the utilities of the district, their
operation, the service furnished, and the rates charged by the
district.
(d) The properties and investments of the district.
(e) All official acts of the board relating to acquisition,
construction, completion, extension, improvement, and betterment of
the public utilities of the district.
(f) The efficiency and adequacy of each public utility, and of the
property used in connection with it or with its operation, the
reasonableness of the service and commodities furnished, and of the
rates and charges therefor.
(g) All the business and affairs of the district relating to the
ownership, management, and operation of each public utility of the
district.

16607. The expense of employing an expert shall not exceed fifteen
thousand dollars ($15,000) at any one time, to be paid out of the
income and revenues of the district, as the board prescribes.

16608. Experts shall be selected by the Public Utilities
Commission, and their names and addresses certified to the board of
directors of the district. Several experts may be so selected and
certified.

16609. Whenever an expert is to be employed pursuant to Section
16606, at least four months before each biennial district election
the board shall request in writing the Public Utilities Commission to
select and certify experts. The commission shall transmit the names
of experts to the board making the request within two weeks after
receipt of the request by the commission.

16610. Within 10 days after receipt of a certification the board
shall by resolution entered on its minutes employ the expert, or one
of the experts selected and certified, fix the amount of his
compensation either absolutely or on a per diem basis, and notify the
expert of his appointment.

16611. In his report the expert shall make such recommendations and
suggestions as to him seem proper and required for the good of the
district, the efficient and economical or advantageous management and
operation of the public utility of the district, and the business
and affairs of the district relating to such management and
operation.

16612. In his report the expert shall make such recommendations and
suggestions as to:
(a) The system of accounts kept, or in his judgment to be kept in
connection with each public utility.
(b) The classification of the public utilities of the district and
the establishment of a system of accounts for each class.
(c) The manner in which such accounts shall be kept.
(d) The forms of accounts, records, and memoranda kept or to be
kept, including accounts, records, and memoranda of receipts and
expenditures of money, and depreciation and sinking fund accounts, as
in his judgment are proper and necessary.

16613. The expert shall enter upon his duties at least 90 days
before the next impending biennial district election, and shall
complete his examination and file his report at least 30 days before
the election.

16614. The expert's report shall be made in duplicate to the
electors of the district. One copy shall be filed with the board in
the office of the clerk of the district, and one copy shall be
recorded in the office of the county recorder of the county in which
the district, or the greater part of its population, is situated. The
county recorder shall record, index, and keep the report as a public
record in his office, and shall make no charge for such recording.