Government Code section 54516.1

Subject to the provisions and limitations of any resolution authorizing the issuance of bonds and to the conditions specified in Section 54516.2 of this code, the local agency may contract, upon such terms and conditions as it may determine, with any person, firm or corporation, for the operation or management of an enterprise. Each such contract shall provide that all consideration to be paid thereunder shall be payable solely from the revenues of the enterprise, and all consideration under any such contract payable by the local agency shall be paid only from such revenues. A local agency shall not by any such contract transfer or attempt to transfer to any person, firm or corporation, or in any way restrict the exercise of the local agency’s legal powers and duties concerning:

(a)

The issuance and sale of bonds to provide funds for the acquisition, construction, improving or financing of the enterprise;

(b)

The payment of the principal of and interest on such bonds;

(c)

The receipt, handling and disbursement of and accounting for the proceeds of sale of the bonds;

(d)

The fixing of fees, tolls, rates, rentals and other charges for the services, facilities or water furnished by the enterprise;

(e)

The accounting for the revenues, receipts and other funds of the enterprise; and

(f)

The making and enforcing of ordinances and regulations to protect and promote public health and safety in connection with the enterprise and its operation.

Source: Section 54516.1, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=GOV§ionNum=54516.­1.­ (updated Jan. 1, 1953; accessed Jul. 28, 2025).

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Verified:
Jul. 28, 2025

§ 54516.1's source at ca​.gov