Harbor Improvement Districts in California

California’ Harbors and Navigation Code, in Division 8, Part 2, Chapter 2, deals with bonds and harbor improvement districts. Article 1 deals with the issuance and sale of bonds.

Section 5880 requires the board of supervisors to pass a resolution providing for the issuance and sale of bonds to represent the principal of the indebtedness authorized to pay the cost of the improvement or development work in the harbor, and shall prescribe the form of the bonds.

Section 5881 requires all bonds issued to be payable substantially in the specified manner. Section 5882 authorizes the board of supervisors to determine the denomination of the bonds, except that no one bond may be of a denomination less than $100 nor more than $1,000. The bonds are to be payable on the date and at the place fixed in the bond, with interest payable semiannually at the rate specified in the bond.

Section 5883 requires the bonds to be signed by the chairman of the board of supervisors, and the treasurer, and countersigned by the auditor of the county. The coupons upon the bonds must be numbered consecutively and signed by the county treasurer.

Section 5884 states that bonds may be issued and sold by the board of supervisors of the county for not less than their par value and accrued interest at the date of delivery, and the proceeds are to be placed in the treasury of the county to the credit of the proper improvement fund, and applied exclusively to the purposes mentioned in the resolution and for which the bonds were voted.

Article 2 deals with the payment of bonds and taxation. Section 5890 states that bonds issued are obligations of the district and the board of supervisors of the county, at the time of fixing the general tax levy and in the manner provided for the general tax levy, must levy and collect annually until the bonds are paid.

Section 5891 provides that the tax must meet four specified conditions. Section 5892 allows the board of supervisors to levy upon all of the property in the district a tax sufficient to pay the ordinary annual expenses of maintenance of the district and it may also levy a tax sufficient to meet expenditures for any further improvement and development of the harbor which the board deems necessary and advisable.

Section 5893 prohibits the district from levying a tax in excess of twenty cents ($0. 20) for $100 of assessed valuation within the district.

Chapter 3 deals with management and control of the districts. Section 5900 provides that, whenever any district is formed and its control is vested in the board of supervisors of the county in which the district is situated, the board of supervisors may pass all necessary ordinances for the regulation of the district and provide that the violation of those ordinances constitutes a misdemeanor.

Section 5900.1 authorizes the board to sue and be sued in the name of the district. Section 5900.2 allows the board to adopt a seal and alter it at pleasure. Section 5900.3 allows the board to take by grant, purchase, gift, devise, lease and dispose of real and personal property of every kind within or without the district necessary to the full or convenient exercise of their powers.

Section 5900.4 allows the to exercise the right of eminent domain to take any property necessary or convenient to the exercise of the powers conferred by this part. Section 5900.5 authorizes the board to borrow money and incur indebtedness and issue bonds or other evidence of the indebtedness in the manner deemed necessary by the board for further improvement and development of the harbor.

Section 5900.6 provides that, when any improvement or development work done under the authority of the board is completed, the maintenance, management, and control of the work done, and of the harbor as so improved, it is vested in the board. The board may employ and pay all necessary agents, servants, and employees to manage, maintain, and control the harbor.

Section 5900.7 provides that, if any portion of the harbor is situated within the boundaries of any incorporated city, the board of supervisors may enter into arrangements or contracts with the governing body of that city for the purchase and maintenance of fireboats, patrol boats, sanitary and other equipment which the board deems necessary for the proper protection of the harbor.

Section 5900.8 requires the board to exercise general supervision over the harbor and adopt general rules and regulations for the government thereof, if these rules and regulations do not conflict with the right of any city to exercise its police powers.

Section 5900.9 states that the board may provide by ordinance for the regulation of anchorages, wharfages and dockage of vessels within the harbor and it may establish and collect fees and licenses therefor. The proceeds when collected are to be deposited to the credit of the harbor district fund.

Section 5900.10 specifies that every person who violates the provisions of any ordinance enacted by the board of supervisors pursuant to this part, is guilty of a misdemeanor. Section 5900.11 allows a district to destroy a record.

Section 5901 states that the governing body of a city within which a portion of the harbor is situated may establish by ordinance any regulations which are proper in the exercise of its police powers which regulations do not conflict with the provisions of this part, or with any lawful ordinance of the board of supervisors.

Section 5902 allows the board of supervisors by ordinance to provide for the appointment of a harbor commission consisting of seven persons, and by ordinance define its powers and duties.

Section 5903 states that, if the purposes for which the bonds were voted are being or shall be carried out by cooperation or agreement between the United States of America or any department, officer or agency thereof, and the district, the proceeds of the bonds may be turned over to the United States of America, or any department, officer or agency thereof, to be expended by it in the performance of the improvement or development work for which the bonds were voted.

If the improvement or development work for which the bonds of the district were voted is to be done jointly with the United States of America, or any department, officer or agency thereof, the portion of the cost to be borne by the district may be turned over to the United States of America.

Section 5904 allows the district in any year to levy assessments, reassessments, or special taxes and issue bonds to finance waterway construction projects and related operations and maintenance, or operations and maintenance projects independent of construction projects in accordance with specifies provisions of law.

The district may levy and collect assessments and reassessments in the same manner as provided in the Water Code, to pay any or all of the five specified items. For purposes of this section, functions designated to be performed by the board of supervisors, the board of trustees, or valuation commissioners are to be performed by the district’s board.

In addition, the board may order the creation of a separate assessment roll to pay the allowable expenses of any single project or any group or system of projects. All assessments, reassessments, and taxes levied by the district may be collected together with, and not separately from, taxes for county purposes.

Any county in which the district is located may collect, at the request of the district, all assessments, reassessments, and special taxes levied by the district and cause those revenues to be deposited into the county treasury to the credit of the district. Each county may deduct its reasonable collection and administrative costs.

Any assessment or reassessment levied pursuant to this section may be apportioned on the basis of land use category, tonnage shipped on the waterway, size and type of vessel using the waterway, front footage, acreage, capital improvements, or other reasonable basis, separately or in combination, as determined by the district commissioners. No bond issued may be used to fund the routine maintenance dredging of channels.

Chapter 4 deals with improvement of other harbors within the district. Section 5910 authorizes any harbor improvement district to improve, develop, protect, and maintain any or all harbors within its boundaries in accordance with the procedure in this chapter and in the Public Contract Code.

Section 5911 permits the board of supervisors of any county in which the district is situated to direct the harbor commission to prepare surveys for the improvement, development or protection of any harbor or harbors within the district with its recommendations covering the necessity, advantages and benefits to be derived by the improvement, development or protection of such harbor or harbors.

Section 5912 requires the board, upon receiving the report and recommendation of the harbor commission, to fix a date for hearing on the report to consider and determine the feasibility of the project or projects submitted.

Section 5914 provides that, upon final hearing, if the board finds that the harbor or harbors can be improved, developed and protected as generally described in the report and recommendation of the harbor commission at a cost not disproportionate to the benefits to be derived from the proposed project, the board may order the development, improvement or protection of the harbor or harbors in accordance with its findings.

Section 5915 specifies that, for the purpose of financing the improvement, development, protection and maintenance of additional harbors, the board may issue bonds, borrow money, incur indebtedness and levy taxes, and have the same powers and duties with respect to the improvement, development, protection and maintenance of the additional harbor or harbors as it has with respect to the original harbor for which the district was formed.