54340-54358

GOVERNMENT CODE
SECTION 54340-54358




54340.  A local agency may acquire any enterprise by gift, purchase,
or eminent domain.



54341.  A local agency may construct or improve any enterprise
wholly or partially within or wholly without the local agency. By
gift, lease, purchase, eminent domain, or otherwise, it may acquire
any real or personal property, or any interest in or improvement on
any such property, or any water rights for an enterprise, except that
no property of a state public body may be acquired without its
consent. A local agency may sell, lease, exchange, transfer, assign
or otherwise dispose of any real or personal property or any interest
in such property. It may lay out, open, extend, widen, straighten,
establish or change the grade of any real property or public rights
of way necessary or convenient for any enterprise.




54342.  A local agency may operate, maintain, repair, or manage all
or any part of any enterprise, including the leasing for commercial
purposes of surplus space or other space which it is not economic to
use for such enterprise.


54343.  The local agency may adopt reasonable rules or regulations
for the conduct of the enterprise.



54344.  A local agency may prescribe, revise, and collect charges
for the services, facilities, or water furnished by the enterprise.



54345.  The local agency may provide that charges for any sewer
enterprise or service shall be collected together with and not
separately from the charges for any other utility service rendered by
it, and that all charges shall be billed upon the same bill and
collected as one item.



54346.  (a) If all or part of the bill is not paid, the local agency
may discontinue any and all service for which the bill is rendered.
   (b) Commencing January 1, 1982, if all or part of the bill is not
paid, and the ratepayer states the reason for the nonpayment of a
component or components of the bill, the local agency may discontinue
only that service related to the component of the bill which is not
paid, except that if all or part of the component of the bill related
to sewer service is not paid the water service may also be
discontinued.
   However, if any of the services for which the bill was rendered
were financed pursuant to revenue bonds issued prior to January 1,
1982, and which have not been retired, the local agency may apply the
provisions of subdivision (a).
   (c) The provisions of this section shall apply to counties and
cities, whether general law or chartered.



54346.1.  The local agency may enter into a written contract with a
privately owned public utility rendering other than gas or electric
service, that the charges for any sewer enterprise or service shall
be collected together with and not separately from the charges of
said privately owned public utility for any other utility service
rendered by it, and that all charges shall be billed upon the same
bill and collected as one item.



54346.2.  If all or any part of the bill of any privately owned
public utility on which any sewer enterprise or service charge is
collected is not paid, the privately owned public utility may
discontinue its utility service until said bill is paid.




54346.3.  The local agency may enter into a written contract with
any person, firm or public or private corporation providing for the
billing and collection by such person, firm or corporation of the
charges for the facilities, service or water furnished by any
enterprise. If all or any part of any bill rendered by any such
person, firm or corporation pursuant to any such contract is not paid
and if such person, firm or corporation renders any public utility
service to the person billed, such person, firm or corporation may
discontinue its utility service until such bill is paid, and the
contract between the local agency and such person, firm or
corporation may so provide.



54346.4.  (a) A local agency whose jurisdiction is geographically
coextensive with the county in which it operates, acquires,
constructs, or improves a system, plan, works, facilities, or
undertaking for the collection, treatment, or disposal of storm
water, including drainage, may, with the concurrence of the county,
provide for the collection of the agency's charges in the same
manner, and subject to the same penalties and priority of lien as,
other charges and taxes fixed and collected by, or on behalf of the
local agency. However, if, for the first year the charges are
prescribed, the property served by the agency has been transferred or
conveyed to a bona fide purchaser for value, and attached thereon,
prior to the date on which the first installment of county taxes
would become delinquent, the charge shall not result in a lien
against the real property but shall be transferred to the unsecured
roll.
   (b) If the charges are collected by the county, the county may
deduct its reasonable costs incurred for the service before remittal
of the balance to the local agency's treasury.



54347.  The local agency may provide for the collection of charges.
Provisions may be made for, but are not limited to:
   (a) The granting of discounts for prompt payment of bills.
   (b) The requiring of deposits or the prepayment of charges in an
amount not exceeding one year's charges either from persons receiving
service and using the facilities of the enterprise or from the
owners of property on which or in connection with which said services
and facilities are to be used; provided, however, that in case of
nonpayment of all or part of a bill said deposits or prepaid charges
shall be applied only insofar as necessary to liquidate the
cumulative amount of such charges plus penalties and costs of
collection.
   (c) The requiring of a guaranty by the owner of property that the
bills for service to said property or the occupants thereof will be
paid.


54348.  The local agency may provide for a basic penalty for
nonpayment of the charges within the time and in the manner
prescribed by it. Said basic penalty shall not be more than 10
percent of each month's charges for the first month delinquent. In
addition to the basic penalty it may provide for a penalty of not
exceeding one-half of 1 percent per month for nonpayment of the
charges and basic penalty. On the first day of the calendar month
following the date of payment specified in the bill the charge shall
become delinquent if the bill or that portion thereof which is not in
bona fide dispute remains unpaid. It may provide for collection of
the penalties herein provided for.



54349.  The local agency may issue bonds for funds to acquire,
construct, improve or finance an enterprise. The bonds may be secured
pursuant to this chapter.


54350.  A local agency has police power over any enterprise
acquired, constructed, or improved pursuant to this chapter and may
make and enforce all necessary regulations to protect the public
health in the operation and maintenance of the enterprise.




54351.  If the local agency acquires, constructs, or improves a
sanitation or garbage removal or disposal system, it may require its
inhabitants to use the facilities exclusively.



54352.  If the local agency acquires, constructs, or improves a
sewer system pursuant to this chapter, it may declare that the
further maintenance or use of cesspools or other local means of
sewage disposal constitutes a public nuisance. If the buildings are
within a reasonable distance, but not more than two hundred feet,
from connection with the sewer system, the local agency may require
all buildings inhabited or used by human beings and in which any
sewage is produced to be connected with the sewer system within the
period prescribed by it, but not less than thirty days from the time
when such a connection can be made, as may be prescribed by the local
agency.



54353.  As a remedy established for the collection of due and unpaid
deposits and charges and the penalties thereon an action may be
brought in the name of the local agency in any court of competent
jurisdiction against the person or persons who occupied or, in the
case of unoccupied property, who owned the property when the service
was rendered or the deposit became due or against any person
guaranteeing payment of bills, or against any or all of said persons,
for the collection of the amount of the deposit or the collection of
delinquent charges and all penalties thereon.



54354.  A local agency that acquires, constructs, or improves a
system, plant, works, facilities or undertaking for the collection,
treatment, or disposal of sewage or for the obtaining, conserving,
treating, and supplying of water, or for the collection, treatment,
or disposal of storm water, including drainage, may declare in the
resolution or ordinance prescribing or revising charges for the
services or facilities furnished by the enterprise that delinquent
charges and all penalties thereon when recorded as in this chapter
provided shall constitute a lien upon the real property served.
However, no lien shall be created against any publicly owned
property. A lien shall continue until the charge and all penalties
thereon are fully paid or the property sold.



54354.5.  A resolution or ordinance prescribing or revising charges
for the services or facilities furnished by the enterprise and
declaring that delinquent charges and penalties when recorded as
provided in this chapter shall constitute a lien upon the real
property served shall not be adopted until the legislative body has
given notice of and held a hearing thereon substantially as provided
by this section; provided, however, that nothing herein shall be
construed to prevent the local agency from prescribing, revising and
collecting charges sufficient in amount to comply with Section 54515
or any other provision of this chapter or any provision or convenant
in the proceedings for the issuance of any outstanding revenue bonds
of the local agency payable from the revenues of the enterprise.
   (a) The notice of the hearing shall be given by the clerk or
secretary of the legislative body and shall contain a copy of the
proposed resolution or ordinance. Said notice shall state the time
and place for a hearing on said proposed resolution or ordinance, and
that at said time and place any person interested, including all
persons owning property in the local agency, may appear and be heard
as to whether the proposed rates and charges are discriminatory or
excessive, or will not be sufficient under Section 54515, or will not
comply with any other provision of this chapter, or will not be
sufficient under the provisions or covenants of any outstanding
revenue bonds of the local agency payable from the revenues of the
enterprise, or on any other matter relating to said proposed
resolution or ordinance or the rates or charges proposed therein.
   (b) Said notice shall be published at least once each week for two
weeks prior to the hearing in a newspaper published in the local
agency. If there is no newspaper published in the local agency, said
notice shall be posted in three public places in the local agency for
not less than two weeks prior to the hearing. The first publication
or posting of the notice shall be at least 15 days prior to the date
of hearing.
   (c) At the time and place fixed in said notice for the hearing,
the legislative body shall hold said hearing and may adjourn said
hearing from time to time and may adjourn said hearing to a different
place if deemed necessary. At the hearing any person interested,
including all persons owning property in the local agency, may appear
and be heard on the matters set forth in the notice. At the hearing
the legislative body may change or modify the proposed rates and
charges; provided, however, that no rate or charge shall be raised or
increased from that set forth in the proposed resolution or
ordinance, unless notice of intention to make said increase shall be
published once or posted at least 10 days prior to the hearing on the
proposed change.
   (d) At the conclusion of the hearing the legislative body may
determine that the proposed rates and charges, as originally proposed
or modified as provided herein, are not discriminatory or excessive,
and will be sufficient under Section 54515 and will comply with the
provisions of this chapter and will be sufficient under the
provisions or covenants of any outstanding revenue bonds of the local
agency payable from the revenues of the enterprise and will be in
compliance with law, and adopt said proposed resolution or ordinance
as proposed or modified as provided herein.



54355.  The lien provided by Section 54354 shall attach when the
treasurer or other officer whose duty it is to collect the charge
records a list of delinquent unpaid charges and penalties thereon
with the county recorder, stating the amount of each charge and the
penalty thereon, a description of the real property upon which the
same is a lien and the name of the local agency to which the same is
payable. Such lien shall have the same force, effect, priority and
duration as to the property described as would the lien of an
abstract of a judgment against the owner of the real property at the
time such list is recorded and may be enforced in like manner.
Property may be discharged from the lien within one year from the
date of recording by the payment of all delinquent charges plus
penalties. A list of all such delinquent charges shall be recorded at
least every six months, but no delay or informality in recording the
same shall invalidate the lien or any unpaid charge or any
subsequent act or proceeding. If through error or otherwise the
amount of any unpaid charge plus penalties thereon as stated in said
list shall be incorrect, said error shall be disregarded and shall
not affect or invalidate the filing if said error is one dollar ($1)
or less.


54356.  As a separate, distinct and cumulative remedy established
for the collection of said charges and penalties thereon an action
may be brought in the name of the local agency in any court of
competent jurisdiction to enforce the lien of the charge and all
penalties thereon. In such action a reasonable attorney's fee shall
be awarded plaintiff.



54357.  Remedies for collecting and enforcing rates and charges set
out in this chapter are cumulative and may be pursued alternately, or
any thereof may be used consecutively when the legislative body so
determines. If any one of said remedies is or may be invalid, all
valid remedies shall remain effectual 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 herein provided. The costs of collection and enforcement of
the remedies for the collection of charges may be paid from the
revenues.


54358.  The local agency may execute all instruments, perform all
acts, and do all things necesssary or convenient in the exercise of
the powers granted by this chapter or in the performance of its
covenants or duties.