Long Beach Municipal Code Art. XIV Public Utilities Department

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Editor's note— Amended by Meas. BB, 11-8-2022, eff. 1-23-2023, the title of Art. XIV and the associated section titles to read as herein set out. The former Art. XIV was entitled "Water Department."

There is hereby created a Public Utilities Department which shall be under the exclusive jurisdiction and control of five commissioners who shall be known as the Board of Public Utilities Commissioners. The Public Utilities Department shall have full and complete jurisdiction over all facilities and works necessary and incidental to the use, sale and distribution of water and gas owned and controlled by the City, all of the City's sewer system, and any other public utility operated by the City which the City Council specifically designates by ordinance as under the jurisdiction and control of the Board of Public Utilities Commissioners. The Public Utilities Department and the Board of Public Utilities Commissioners shall be entitled to the rights, and liable for the obligations of, the Water Department and the Board of Water Commissioners under all existing contracts and otherwise as may be provided by applicable law.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023; Amended by Prop. 2, 4-10-1990, eff. 5-3-1990)

The officers, their terms and duties, dates and times of meetings, form of minutes, and other procedural matters shall be established by the Commission to govern its activities under this Charter.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023)

The City shall continue in the ownership and enjoyment of all water and water rights vested in it, and ownership of the right to develop, economize, control, use, conserve, and utilize all water flowing or being beneath the surface of any and all lands now owned or that may be hereafter acquired by it. No water rights now or hereafter owned or controlled by the City, shall ever be permanently sold, leased or disposed of, in whole or in part, without the assent of two thirds (⅔) of the qualified voters of the City, voting on the proposition at a general or special election at which such proposition shall be lawfully submitted.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023)

The Commission shall have the complete and exclusive power and duty:

(1) To supervise, control, regulate and manage the Public Utilities Department, and to make and enforce all necessary rules and regulations therefore, and for the exercise of such other powers as are conferred upon the Commission by this Charter.

(2) To appoint a General Manager jointly selected by the Commission and the City Manager, who shall be the chief administrative officer of the Public Utilities Department, and who shall exercise the management of all activities placed under the jurisdiction of the Commission and to confirm the qualifications of Assistant General Manager(s) appointed by the General Manager. The Assistant General Manager designated by the General Manager shall perform the duties of the General Manager in the event of the absence or disability of the General Manager and shall perform such other duties as the General Manager shall direct. After appointment, the General Manager shall report to, and hold office at the pleasure of, the Commission. No such General Manager or Assistant General Manager(s), shall be, nor have been for at least one (1) year prior to employment at the Public Utilities Department, a member of the Commission.

(3) To create positions of employment to be filled by the General Manager, and to establish the duties, authority and range of compensation for those positions provided that the positions for classified service shall be subject to the Civil Service provisions of this Charter. The Commission shall establish a plan of succession describing who shall perform the duties and have authority of the General Manager, Assistant General Manager(s), and other key employees which plan of succession shall take effect in the event of a natural disaster, an emergency, or other catastrophe. All positions of employment in the permanent service of the Commission shall be created by resolution. The compensation fixed by the Commission for all officers and employees in the Public Utilities Department shall be subject to the prior approval of the City Council by resolution. All other privileges and benefits to which such officers and employees shall be entitled, except as provided by this Charter or other applicable law, shall be such as shall be prescribed by the City Council by ordinance or resolution.

(4) To construct, operate, maintain, extend, manage and control facilities, works and property heretofore or hereafter acquired for the use of, or paid for directly or indirectly out of the funds of, the Public Utilities Department, and to acquire and take by purchase, lease, condemnation, or otherwise, and to hold in the name of the City any and all property situated within or without the City, and within or without the State, that may be necessary or convenient for such use; and also to have, exercise and enjoy in the name of and for and on behalf of the City of Long Beach, all powers, rights and privileges, that are granted to the City, or any of its officers or bodies, under an Act of Legislature known as Chapter 429 of the Statutes of 1927, as reenacted in 1969 as Chapter 209, and all amendments thereto.

(5) To regulate and control the use, sale and distribution of natural gas owned or controlled by the City, the collection of gas charges and the granting of permits for connections with gas facilities; and to fix the rates to be charged for such connection including connections installed for other departments of the City; and subject to the approval of the City Council by resolution, to fix the rates to be charged for gas for use within or without the City, including rates for gas delivered to other departments of the City; and to prescribe the time and manner of payment of the same; provided that nothing in this Charter shall prevent payment to the Public Utilities Department by other departments of the City for gas delivered or service rendered or labor or materials furnished to such other departments. Such rates shall be fair and reasonable, taking into consideration, among other things, the nature of the use, the quantity supplied and the value of the service. Such rates and charges for users of gas supplied by the Public Utilities Department shall be generally based upon the prevailing rates for similar services and commodities supplied or sold by other like utilities whether public or private, operating in the Southern California area.

(6) To regulate and control the use, sale and distribution of water owned or controlled by the City, the collection of water charges and the granting of permits for connections with water works; and to fix the rates to be charged for such connection including connections installed for other departments of the City; and subject to the approval of the City Council by resolution, to fix the rates to be charged for water for use within or without the City, including rates for water delivered to other departments of the City, and to fix rates to be charged the Fire Department for standby service to fire hydrants; and to prescribe the time and manner of payment of the same; provided that nothing in this Charter shall prevent payment to the Public Utilities Department by other departments of the City for water delivered or service rendered or labor or materials furnished to such other departments. Such rates shall be fair and reasonable, taking into consideration, among other things, the nature of the use, the quantity supplied and the value of the service.

(7) To supervise, regulate, control, construct, operate, maintain, extend and manage the City's sewer system, the collection of sewer charges and the granting of permits for connections with the sewer system; and to fix the rates to be charged for such connection including connections installed for other departments of the City; and, subject to the approval of the City Council by resolution, to fix the rates and charges for sewer service, and to prescribe the time and manner of payment of the same; provided that nothing in this Charter shall prevent payment to the Public Utilities Department by other departments of the City for sewer service rendered or labor or materials furnished to such other departments. Such rates and charges shall be fair and reasonable, taking into consideration, among other things, the nature of the use and the value of the service.

(8) To supply and distribute, at rates fixed as herein before provided, any surplus water or gas owned or controlled by the City and not required for the use of consumers served by the City within its limits, to consumers outside the City for their own use, and to municipal corporations outside the City for municipal uses, for resale, disposal or distribution, to consumers within their limits; provided that the supplying or distribution of such surplus water or gas shall in any case be subject to the paramount right of the City at any time, to discontinue the same, in whole or in part, and to take and hold or to distribute such surplus water or gas for the use of the City and its inhabitants; provided, further, that contracts for supplying surplus water or gas by the City to consumers or municipal corporations outside the City, or for any exchange of surplus water or gas with any such outside consumers or municipal corporations, may be made by the Commission in the name of the City, for periods not exceeding fifteen years, and upon such terms and conditions, and for such compensation to the City as shall be prescribed by resolution adopted by the Commission and approved by resolution of the City Council; but in every such contract, the right shall be reserved to the City to terminate the same upon written notice to such consumer or municipal corporation, to be given by the Commission whenever it shall determine that the water or gas to be supplied under such contract is required for the City and its inhabitants.

(9) To sue and be sued in the name of the Commission, and to exercise complete control over all litigation wherein it is involved, or which pertains to any matters within the jurisdiction of the Commission; provided, however, that the City Attorney shall represent the Commission in all matters to which it is a party and shall be the sole and exclusive legal adviser of the Commission with reference to any of its functions, powers or duties under this Charter.

(10) To sell or cause to be sold from time to time such personal property belonging to the Public Utilities Department as shall be no longer necessary or suitable for the use of the Public Utilities Department.

(11) To lease, sell or dispose of any property, or any interest therein, belonging to the Public Utilities Department whenever in judgment of the Commission such property, or any interest therein, or part thereof, is no longer required for the purposes of the Public Utilities Department; such property may be leased for any purpose which does not interfere with the use of the same for the purpose of the Public Utilities Department. Any compensation received from the sale or lease of such property shall be paid into the Water Fund, the Gas Fund or such other fund of the Public Utilities Department as may be designated by the Commission, and shall be used for the purposes of the Public Utilities Department; provided, however, that except as otherwise provided in this Article, nothing herein shall authorize the Commission to sell, lease or dispose of any water rights, reservoir space or storage capacity, or any interest or space therein. Provided, further, the Commission shall not have authority to make any lease, contract or other agreement providing for the drilling for, developing, producing, extracting, processing, taking or removing, storing and disposing of oil, gas or other hydrocarbon substances from, under, across or through any land under the control and jurisdiction of the Commission, and any such lease, contract or other agreement shall be made upon authorization of the City Council. The City Manager and City Council shall have jurisdiction of revenue derived from the development and production of oil and gas on lands under the management and control of the Commission.

(12) To purchase supplies and equipment that may be necessary or convenient to the use of the Public Utilities Department.

(13) To make contracts in the name of the Commission to carry into effect the powers granted the Commission in this Charter; provided, that all contracts wherein the expenditure of funds of the Public Utilities Department exceeds the amount established by the City Council for City departments, except contracts for labor, materials or supplies for actual emergency work, shall be made and entered into upon competitive bidding as provided in this Charter, and all powers and duties therein conferred or imposed upon the City Council and/or City Manager are hereby conferred and imposed upon the Commission. At the time of publication of notice inviting bids, specifications of the supplies or materials required, or the plans and specifications of the work to be done, must be on file in the office of the Commission, subject to public inspection. Except as provided in this Charter, all supplies and/or materials, not required to be obtained upon competitive bidding, or for actual emergency work, shall be procured for the Commission by the City Purchasing Agent or City Procurement Service Officers, in accordance with procedures prescribed therefor by the City Manager as shall not be in conflict with this Charter or other applicable law.

(14) To expend all money received in connection with the operation of the Public Utilities Department or management of properties under the control of the Commission; provided that all such monies shall be deposited in the City Treasury to the credit of funds to be known as the "Gas Fund", the "Water Fund", the "Sewer Fund" or to the credit of such other funds as the Commission may by resolution establish. Any interest or increment received on the money in such fund or funds shall be paid into such fund or funds and become a part thereof; and the monies deposited in such fund or funds shall be kept separate and apart from other money of the City and, except as may be allowed by other provisions of this Charter, shall be expended only for the purposes for which such fund was established. The Commission shall file with the City Auditor a notice giving the names and signatures of persons, designated by the Commission to sign demands and payroll authentication.

(15) To supervise, control, regulate, construct, operate, maintain, extend and manage such other facilities, works and property as may be delegated or conferred upon the Commission by the City Council consistent with the provisions of this Charter.

(16) To delegate to the General Manager such powers and duties as the Commission deems appropriate.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023; Amended by Prop. T, 4-9-2002, eff. 6-10-2002; Amended by Prop. 2, 4-10-1990, eff. 5-3-1990)

The City Auditor shall approve no demand against any fund under the control of the Commission, excepting redemption of bonds and interest coupons, unless the same shall be signed and authenticated as hereinabove provided, and by means of checks or warrants on the City Treasurer issued by the City Auditor. If the City Auditor, upon examination, believes that any demand is not a proper claim against any fund under the control of the Commission, the City Auditor shall immediately return such demand to the Commission with objections endorsed thereon. Such demand shall again be considered by the Commission, and if it shall again be allowed by the Commission, and such allowance over the objection of the City Auditor be certified by the signatures of the president or vice president and the secretary of the Commission, the objection of the City Auditor shall be thereby overruled. Any demand upon which the objections of the City Auditor have been overruled by the Commission shall be again returned to the City Auditor, who shall issue a check or warrant upon the City Treasurer for the same in like manner as if it had been approved by the City Auditor.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023; Amended by Prop. 2, 4-10-1990, eff. 5-3-1990)

The Commission shall, prior to the first day of the last month of the fiscal year, adopt a departmental budget for the forthcoming fiscal year covering the anticipated revenue and expenditures of the Public Utilities Department. Such departmental budget shall conform, as far as practicable, to the form provided in this Charter for the general City budget. Each such budget shall contain a sum to be known as the "Unappropriated Balance", which sum shall be available for appropriation by the Commission, by resolution, in the ensuing fiscal year to meet contingencies as they may arise. A copy of every resolution making an appropriation from such unappropriated balance shall promptly be filed with the City Auditor and City Manager. Two certified copies of such budget shall forthwith, after adoption by the Commission, be filed with the City Clerk for presentation to the City Council and one certified copy shall forthwith be filed with the City Auditor. Such budget shall be subject to the approval of the City Council as in this section provided. The City Council shall, not later than the first day of the new fiscal year, approve such budget adopted by the Commission or shall amend such budget and approve the same as amended not later than the first day of the new fiscal year. In the event the City Council shall not approve such budget or amend the same and adopt such budget as amended on or before the first day of the new fiscal year, the same shall become effective as the official budget of the Public Utilities Department for the forthcoming fiscal year. In the event the City Council shall amend such budget and approve the same as amended, as above provided, a certified copy of such approved budget as amended shall be filed with the Commission and the City Auditor. No expenditure shall be made or financial obligation incurred by the Commission, its officers or employees, except as authorized by such annual departmental budget or appropriations made subsequent to such annual budget as herein provided. Such annual departmental budget, when effective, shall constitute an appropriation covering the anticipated revenues and expenditures of the Public Utilities Department as therein set forth.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023)

Whenever provision is herein made for the discharge of specific duties by a specified appointee, the Commission may designate an employee in the Public Utilities Department with full power to act in place of such appointee in case of such appointee's absence or inability to act.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023)

None of the money in or belonging to the Gas Fund, the Water Fund, the Sewer Fund or such other funds as are established by the Commission, shall be appropriated or used for any purpose except for the purposes for which such fund was established, as follows:

(1) For the necessary expense of operating and maintaining gas facilities, water works and the sewer system, and for such surveys, reconnaissances, options, estimates, engineering data, experimentation and investigation, as in the discretion of the Commission shall be necessary, or as shall be incidental to the extension or betterment of the physical properties, or the business of the Public Utilities Department and/or the acquisition of additional lands, gas, water, water rights and/or other property.

(2) For the payment of the principal and interest, or either, due or coming due upon outstanding notes, certificates or other evidences of indebtedness issued against revenues from gas facilities, water works and/or the sewer system in accordance with this Charter, or bonds or other evidences of indebtedness heretofore or hereafter issued for the purpose of gas facilities, water works and/or the sewer system, or parts thereof.

(3) For the necessary expense of conducting and extending the business of the Public Utilities Department, and constructing, extending and improving gas facilities, water works and the sewer system, including purchases of lands, gas, water, water rights, and other property.

(4) To return and pay into the general fund of the City, from time to time, upon resolution of the Commission, from any surplus money in the Gas Fund, the Water Fund, the Sewer Fund, or other funds established as aforesaid, any sums paid by the City from funds raised by taxation or the payment of the principal or interest of any municipal bonds issued by the City for and on account of gas facilities, water works or the sewer system.

(5) To transfer to the general fund of the City any funds in the Gas Fund, the Water Fund and/or the Sewer Fund that are determined by the Commission to be unnecessary to meet the obligations described in subsections (1), (2), (3) or (4) above; provided that the maximum transfer does not exceed twelve percent (12%) of the annual gross revenues of the gas facilities, water works and sewer system, respectively, as shown by a financial report audited by an independent accounting firm, or other applicable limits established by State law.

(6) All proceeds from transfers authorized by subsection (5) above shall be used to maintain local general fund services as the City Council may by budget adoption or other appropriation direct, including without limitation 9-1-1 response, police/fire protection, street repairs, parks and libraries.

(7) All proceeds from transfers authorized by subsection (5) above can be spent for unrestricted general revenue purposes.

(8) The Commission is authorized to fix, and the City Council is authorized to approve, gas, water and sewer rates in an amount sufficient to recover the cost of the obligations described in subsections (1) through (5) above, subject to the limitation concerning gas rates contained in Section 1403(5) of this Charter.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023; Amended by Meas. BB, 11-8-2022, eff. 1-23-2023)

The Commission may, by resolution, create and establish such trust and special deposit funds as shall be necessary and convenient for the deposit of monies received by the City or the Public Utilities Department as security for the payment of charges made for gas, water or other commodities furnished or service rendered by the Public Utilities Department, or for the deposit of monies received by the Public Utilities Department as advance payment in connection with the furnishing of gas, water or other commodity or the rendering of any service by the Public Utilities Department, or deposited with the Public Utilities Department in trust or for any special purpose in connection with the operation of the Public Utilities Department; and the fund, or funds, created and established under the authority herein contained shall be continuing funds, the monies of which shall not be subject to transfer at the close of a fiscal year, and, anything in this Charter to the contrary notwithstanding, any such resolution may provide that disbursements from any such fund, or funds, may be made for the purpose of the trust or according to the terms and conditions of the special deposit under which the monies in such fund, or funds, were received, without the necessity of demands, vouchers, or warrants drawn on the City Treasurer, and that such disbursements may be made in accordance with such rules and regulations as shall be prescribed in and by any such resolution.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023)

Any action by the Commission authorizing the acquisition or sale of real property, approval of contracts which obligate the City, or which involves a rule of general application to be followed by the public, shall be taken by the Commission by order or resolution.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023)

Editor's note— Amended by Meas. BB, 11-8-2022, eff. 1-23-2023, the title of § 1410 to read as herein set out. The former § 1410 was entitled "Acquisition or Sale of Real Property."

The Commission shall provide for the cost of extensions and betterments of gas facilities, water works and the sewer system, from the funds derived from the sale of bonds, so far as such funds are, or shall be, made available for the use of the Commission for such purpose, from income received from the revenue of the Public Utilities Department, and from the proceeds of loans contracted as provided in this Charter.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023; Amended by Prop. 2, 4-10-1990, eff. 5-3-1990)

The Commission shall each year apportion and set apart, out of the revenue funds of the Public Utilities Department, in the City Treasury, an amount sufficient to pay at maturity all sums coming due in such year for principal and interest upon all outstanding bonds issued for the gas facilities, water works or the sewer system and such amount shall be transferred forthwith into a special fund in the City Treasury, to be designated by a name indicating the nature or purpose of such special fund, and the money in such special fund shall be subject to apportionment by the City Auditor as may be required to make such payments of the principal and interest of such bonds and for no other purpose. Any interest or increment received on the money in any such special fund shall be paid into such special fund and become a part thereof. The foregoing provisions of this section shall apply to all such bonds now outstanding or hereafter issued; provided, however, that payments out of revenue, as provided, of the principal and interest of general obligation bonds hereafter issued for securing water from new sources, shall be required only to the extent determined by the Commission, approved by a majority vote of the City Council, prior to the submission to the qualified voters of the City of the proposition of authorizing such general obligation bonds. Such resolutions shall be subject to amendment only by resolution of the Commission, approved by majority vote of the City Council, and assented to by a majority of the qualified voters of the City, voting on the question of approving such resolution at a general or special election at which such questions shall be lawfully submitted.

Notwithstanding all or any part of this section, nothing herein shall be construed as a limitation upon the power of the City or of any department thereof to issue revenue bonds without an election, under State law or procedural ordinance and nothing in this section or elsewhere in this Charter shall be construed to prevent a pledge of revenues to pay, or secure the payment of, the principal and interest of such revenue bonds, which pledge may have priority over any allocation of revenues to pay the principal and interest of general obligation bonds.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023; Amended by Prop. 2, 4-10-1990, eff. 5-3-1990)

The Commission shall have the power, upon determination that an emergency exists which justifies it in so doing, to borrow money upon such terms and conditions, and under such procedure, as may be prescribed by resolution, for the purpose of acquiring, constructing, reconstructing, repairing, extending or improving facilities or works, for supplying the City and its inhabitants with gas, water and sewer service, and to issue notes, certificates, or other evidences of indebtedness therefor, subject to the following provisions:

(1) The whole amount of any such indebtedness shall be payable in a period not exceeding five years from the time of contracting the same; provided, that any such indebtedness, or part thereof, made payable after one year from the time of contracting the same, shall be subject to the right of the Commission to pay the same with accrued interest thereon on any interest due date, after such one year period.

(2) The total outstanding indebtedness incurred under the provisions of this section with respect to the Water Fund, Gas Fund or Sewer Fund, respectively, must not exceed 33⅓% of such Fund's gross operating revenue during the preceding fiscal year.

(3) The rates for gas, water and sewer service shall be so fixed as to provide for payment at maturity of the principal and interest of such indebtedness in addition to all other obligations and liabilities payable out of the revenues of the Public Utilities Department.

(4) Such indebtedness shall be payable only from the revenue of the Public Utilities Department, and shall not be an obligation of the City.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023; Amended by Prop. 2, 4-10-1990, eff. 5-3-1990)

The Public Utilities Department is empowered to act as contractor for, and do the work embraced in, the construction, reconstruction, extension or installation of gas, water and sewer mains, piping, conduits, tunnels, hydrants, pump stations, and other necessary facilities, works and appliances for the purpose of providing gas, water and sewer service.

(Amended by Meas. BB, 11-8-2022, eff. 1-23-2023; Amended by Prop. 2, 4-10-1990, eff. 5-3-1990)