5 Cal. 2d 18 | Cal. | 1935
The petitioning district, a public corporation (Morrison v. Smith Bros., Inc., 211 Cal. 36 [293 Pac. 53]), seeks a writ of mandate commanding the respondent, its own secretary, to execute a contract duly authorized by its board of directors. The purpose of the execution of the contract, as ordered by the board, is the acquisition, construction and completion by the district of a power project, the cost of which project will be paid out of the proceeds derived from the sale of bonds which shall be payable solely from the income earned by the property purchased with the proceeds of the loan evidenced by these “revenue bonds”. The respondent refuses to execute the contract on the ground that it is illegal and invalid for several reasons, the principal one of which is that there is no legislative sanction or authority for the district to issue such revenue bonds. The decision of this question determines the entire cause. If authority for the proposed action of the district can be found, there appears no legal objection to the issuance of the bonds. That proposition has been definitely and but recently settled in this state. In our examination and consideration of the authorities cited in the case involving the issuance of bonds to be paid solely out. of the revenue to be derived from the tolls to be collected from traffic using the bridge across the San Francisco Bay between the cities of San Francisco and Oakland, this court found and held that such bonds, when duly authorized and issued, are legal and binding obligations of the political subdivision or authorized body issuing them. Were that the only question submitted in this proceeding, we might well rest our decision on the authority of the opinion in that case. (In re California Toll Bridge Authority, 212 Cal. 298 [298 Pac. 485].)
A number of amendments to the act of 1921 have been enacted, but they relate, for the most part, to details of or: ganization and administration of utility districts, and none of them is germane to the question we are here considering. The effective provisions of the original and amendatory acts are found in II Deering’s General Laws (1931), Act 6393
The legislative act creating the California Toll Bridge Authority (Stats. 1929, chap. 763) provides (sec. 5) for “issuance of revenue bonds ... to provide for the acquisition or construction [of the bridge and other improvements] the payment or redemption of said bonds and the payment of interest thereon [to be] secured only by tolls or other revenues received from the operation of the particular” improvement “for the acquisition or construction of which the bonds were issued”. The “short term notes” issued by the board of water and power commissioners of the city of Los Angeles, and the subject of consideration by this court in Shelton v. City of Los Angeles, 206 Cal. 544 [275 Pac. 421], were authorized, and the commission expressly granted authority to issue them by the provisions of section 224 of the charter of the city. (Stats. 1925, p. 1027, at p. 1098.) In this connection see, also, Department of Water & Power v. Vroman, 218 Cal. 206 [22 Pac. (2d) 698],
We are convinced that the contract sought to be entered into by the Lassen Municipal Utility District, and which the respondent refuses to execute, relates to a proceeding beyond the power of the district to consummate. Its execution would be an idle act.
It follows, therefore, that demurrer to the petition should be sustained. It is so ordered, the alternative writ of mandate is discharged, and the petition for issuance of a peremptory writ is denied.
Shenk, J., Conrey, J., Thompson, J., Curtis, J., Seawell, J., and Langdon, J., concurred.